Hinge Health Surpasses Revenue Expectations in First Public Earnings Report
Dive Brief:
– Hinge Health exceeded investor expectations on revenue in the company’s initial public earnings results.
– Revenue grew by 55% year over year to $139.1 million in the second quarter, as announced in the earnings report released on Tuesday.
– The digital health company recorded an operational loss of $580.7 million, a significant increase from $17.6 million the previous year, primarily due to stock-based compensation expenses related to the recent IPO.
Dive Insight:
Founded over a decade ago, Hinge Health went public in May, becoming one of the few digital health companies to complete an IPO in recent years. While public exit activity in the digital health sector had slowed down in the past three years, experts believe that more companies could follow suit if market conditions remain favorable, especially if companies like Hinge continue to perform well.
Hinge Health specializes in digital musculoskeletal care and physical therapy, offering innovative solutions such as an AI-powered movement sensor and a wearable device that delivers electrical nerve stimulation. The company primarily serves self-insured employers, including large corporations, local governments, and labor unions. However, Hinge is now exploring opportunities to collaborate with fully-insured health plans, Medicare Advantage, and other government insurance programs.
The company’s strong performance in the second quarter was driven by an increase in eligible lives from both new and existing clients, leading to higher enrollment rates and enhanced membership and billing. CEO and co-founder Daniel Perez attributed this success to a 32% year-over-year growth in the number of clients, reaching 2,359 in the second quarter.
In addition to its core services, Hinge Health recently launched HingeSelect, a provider network that connects patients with in-person healthcare services such as imaging, physical therapy, and injections. While the revenue impact from this new initiative is not expected until 2027, Perez believes that it will allow Hinge to serve a broader range of patients who may require in-person evaluations before transitioning to virtual care.
Looking ahead, Hinge Health forecasts revenue for 2025 to be in the range of $548 million to $552 million. The company also anticipates non-GAAP income from operations to be between $77 million and $83 million, a significant improvement from the $26.1 million loss reported in 2024.
Overall, Hinge Health’s impressive performance in its first public earnings report highlights the company’s potential for growth and innovation in the digital health sector.
