- Q3 revenue guidance does not seem to fully reflect the number of membership sign-ups and prevalence of COVID-19 testing. The actual revenue of Q3 is likely to exceed the guidance.
- The fact that the company expects a higher number of membership sign-ups (+15,000 vs. prior guidance), and yet maintains the overall revenue guidance, is somewhat ironic.
- As the flu season is expected to be large in Q4, unlike the last year, as daily life normalizes, it is expected to record earnings that beat the FY21 guidance.
- The expected revenue of FY25 is $3.0B. When applying a PSR of 10, the market cap becomes $30B, which means there is a mid-term upside potential of 7-8 times the current market.
For further details see:
1Life Healthcare: Post-Merger Earnings Preview