Tech-driven primary care company One Medical filed to go public.
The San Francisco company backed by Google parent Alphabet filed an initial public offering statement with the U.S. Securities and Exchange Commission (SEC) to list its common stock on the Nasdaq composite under the ticker symbol "ONEM."
The number of shares to be offered and price range for the proposed offering have not yet been determined, officials said. The company was valued at about $1.5 billion in a financing round last year.
The company was founded in 2007 by physician Tom Lee, who led the company until 2017 when Amir Dan Rubin, a former UnitedHealth group executive, took the reins as president and CEO. It's top executives also include Chief Financial Officer Bjorn Thaler and Chief Technology Officer Kimber Lockhart.
One Medical markets itself as a membership-based, tech-integrated and consumer-focused primary care platform. However, while the company has been growing its overall size, it has continually reported losses.
According to its SEC filing, One Medical grew its membership by 324% from Dec. 31, 2014, through Sept. 30, 2019, to about 397,000 members.
The company services nine markets across the U.S. including Boston, Chicago, Los Angeles, New York, Phoenix, San Diego, the San Francisco Bay Area, Seattle and Washington, D.C., as well as approximately 6,000 enterprise clients and health network partnerships. One Medical reported a 97% retention rate of enterprise clients and an 89% retention rate across consumer members.
The company primarily serves "a working-age, commercially-insured population and associated dependents" at 77 physical offices including some employer on-site clinics and through 24/7 digital health services, the filing said.
One Medical reported strong top-line growth reaching $198.9 million in revenue in the first nine months of 2019, up 29% from $154.6 million for the same period in 2018. The company reported year-over-year revenue increase of 20% from $176.8 million in 2017 to $212.7 million in 2018.
The company has reported losses since its inception and warned it might never see profitability.
The company reported a net loss of $34.2 million for the first three quarters of 2019, an increase in losses of $26.9 million during the same period of 2018.
The company lost $45.6 million in 2018, worsened from losses of $31.7 million in 2017. Its care margin increased from $56.1 million, or 32% of net revenue, in 2017 to $76.5 million, or 36% of net revenue, in 2018.
The IPO comes on the heels of a number of healthcare tech companies that have filed IPOs in recent months including Livongo, Health Catalyst, Change Healthcare and Phreesia.
JP Morgan Securities and Morgan Stanley are acting as the lead bookrunning managers for the proposed offering. Allen & Company LLC, Citigroup, Piper Jaffray, Wells Fargo Securities and William Blair are also acting as bookrunning managers. Baird and SunTrust Robinson Humphrey are acting as co-managers.