Omada Health (OMDA) Canaccord Genuity's 46th Annual Growth Conference summary

Company evolution and product expansion

• Founded in 2010 to address cardiometabolic disease, now serving 1.1 million members and partnered with major PBMs and health plans.

• Expanded from a single prevention product to include diabetes, hypertension, MSK (via acquisition), cholesterol, and GLP-1 offerings.

• Product development is driven by customer feedback, with major clients adopting new offerings as they launch.

• Recent management transition: Co-founder CEO became Executive Chairman, with a seasoned operator from Eli Lilly taking over as CEO.

Financial performance and business model

• Achieved record Q2 revenue of $88 million (43% YoY growth) and highest-ever gross margin at 74%.

• Adjusted EBITDA reached $10.8 million, with broad-based growth across all product types.

• Revenue model is activity-based: billing occurs only when members are actively engaged, aligning incentives with outcomes.

• Bills as a covered medical provider using a digital-specific CPT code, with no cost to end users.

Seasonality, guidance, and member economics

• Revenue and member growth are seasonal, with most new members joining in Q1 due to employer benefit cycles.

• Older cohorts remain engaged but generate less revenue per member over time, though they are more profitable due to lower ongoing costs.

• Trailing 12-month revenue per member increased 2% YoY to $284, driven by higher-value diabetes and hypertension members.

• Guidance for the year is 30% growth, above the long-term commitment of 20%, with new channel partnerships expected to drive future growth.