Dive Brief:
- Hinge Health beat investor expectations on revenue in the digital musculoskeletal care company’s first public earnings results.
- Revenue increased 55% year over year to $139.1 million in the second quarter, the firm said in earnings released Tuesday.
- The digital health company reported an operational loss of $580.7 million, compared with $17.6 million last year, driven by a stock-based compensation expense largely related to Hinge’s recent IPO, a spokesperson told Healthcare Dive.
Dive Insight:
Hinge, founded more than a decade ago, went public in May — one of just a few digital health firms to complete an IPO in recent years.
Though a number of digital health companies hit the public markets amid an investment boom in 2021, public exit activity slowed to a crawl over the past three years. Still, experts say more digital health companies could make the leap this year if broader market conditions are positive, especially if companies like Hinge perform well.
Hinge offers digital musculoskeletal care and physical therapy, including through an artificial intelligence-backed movement sensor and a wearable device that provides electrical nerve stimulation.
Its clients are mostly self-insured employers, including large companies across industries, local and city governments, and labor unions, Jim Pursley, the company’s president, said in an earnings call Tuesday.
The firm is also in the early stages of expanding to work with fully-insured health plans, Medicare Advantage and other government insurance, he said.
Hinge’s “strong performance” in the quarter was driven by increased eligible lives from new and legacy clients and better than expected enrollment yields, driving increased membership and billing, CEO and co-founder Daniel Perez said. The number of clients increased 32% year over year to 2,359 in the second quarter.
Additionally, the company launched HingeSelect this summer, a provider network that will connect the company’s patients with in-person services, like imaging, physical therapy and injections.
Hinge is starting with a limited pilot late this year, followed by a broader launch in 2026, Perez said.
The company doesn’t expect a meaningful revenue contribution from the business until 2027. But the network should allow Hinge to access members who might think they need in-person evaluation before they move onto virtual services, he said.
“Then they don’t have to think, ‘Well, Hinge does digital PT, but I kind of need someone to see me in-person.’ Or ‘I really need an MRI first before I go see Hinge Health,” Perez said.
Hinge reported a net loss of $575.7 million in the second quarter, compared with a loss of $12.9 million last year.
Hinge expects revenue for 2025 between $548 million and $552 million. The digital health company expects non-GAAP income from operations to be between $77 million and $83 million, compared with a loss of $26.1 million in 2024.
