The IPO winter might finally be over after chronic care startup Omada Health filed to go public just a few short weeks after Hinge broke the ice.
The digital health darling is best known for its virtual diabetes management programs, but has grown into a comprehensive offering for hypertension, MSK (courtesy of its 2020 Physera acquisition), and a GLP-1 Care Track that drives sustainable results through behavior change.
The S-1 vital signs are mostly encouraging:
- Omada generated $55M in Q1 revenue in Q1, up 57% YoY.
- Gross margin is strong and getting stronger at 60%.
- 2024 revenue climbed 38% to $170M.
- Profitability remains elusive with a $47M loss last year.
Omada has more than 2,000 customers, primarily employers and health plans, with 679k members enrolled in at least one of its programs.
- Members engage an average of 30 times per month, and over half are still active at the one-year mark.
A key part of Omada’s growth story is its partnership with Cigna, which made the GLP-1 Care Track a core component of Evernorth’s EncircleRx program for employers looking to manage the explosion of interest in the drugs.
- Most of Omada’s 2024 revenue came directly from Cigna (55%), a double-edged sword considering that investors don’t exactly love having that many eggs in one basket.
Looking ahead, Omada plans to keep producing more evidence that its behavior change interventions make a meaningful impact on long-term success with GLP-1s.
- The first wave of digital health IPOs – think Teladoc and Amwell – banked on convenience over outcomes and eventually got burned.
- Omada is setting out to prove that the second wave can truly move the needle on outcomes and costs, making them non-negotiables rather than nice-to-haves.
The Takeaway
There’s a lot riding on these IPOs. If Omada and Hinge can stick the landing, it could be the spark that reignites investor confidence in digital health. No pressure, we’re all rooting for you.
