One Medical Announces Results for Fourth Quarter and Full Year 2021
02/23/2022 - 04:05 PM
2021 Ending Total Membership Count of 736,000, a 34% Increase Year-Over-Year. Ending Consumer and Enterprise Membership Count of 703,000 and At-Risk Membership Count of 33,000 Fourth Quarter 2021 Net Revenue of $230.2 Million , an 89% Increase Year-Over-Year Full Year 2021 Net Revenue of $623.3 Million , a 64% Increase Year-Over-Year 2021 Ending Cash and Marketable Securities of $501.9 Million Provides Q1 2022 Guidance and Full Year 2022 Guidance SAN FRANCISCO, Feb. 23, 2022 (GLOBE NEWSWIRE) -- 1Life Healthcare, Inc. (One Medical) (Nasdaq: ONEM) today announced financial results for the fourth quarter and full year ended December 31, 2021.
“Last year at One Medical we significantly advanced our mission to transform healthcare through our modernized primary care model, reaching more people, in more markets, across every stage of life," said Amir Dan Rubin, Chair & CEO of One Medical. “We believe we have never been better positioned to deliver better health, better care, and better value, in a better team environment.”
Financial Highlights for the Fourth Quarter 2021
All comparisons are to the three months ended December 31, 2020. Unless otherwise noted, our results of operations in this press release include the activity of Iora Health, Inc. ("Iora") beginning from the close of our acquisition on September 1, 2021.
Total membership count as of quarter-end was 736,000 compared to 549,000, a 34% increase; Consumer and Enterprise membership count of 703,000 and At-Risk membership count of 33,000 as of quarter-end. Net Revenue was $230.2 million compared to $121.8 million , an 89% increase. Medical Claims Expense Ratio was 94% . Loss from Operations was $95.8 million , or 42% of Net Revenue; Net Loss was $95.4 million , or 41% of Net Revenue. Care Margin was $37.6 million , or 16% of Net Revenue. Adjusted EBITDA was a loss of $40.6 million , or 18% of Net Revenue. Financial Highlights for the Full Year 2021
All comparisons are to the twelve months ended December 31, 2020. Unless otherwise noted, our results of operations in this press release include the activity of Iora beginning from the close of our acquisition on September 1, 2021.
Net Revenue was $623.3 million compared to $380.2 million , a 64% increase. Medical Claims Expense Ratio was 92% . Loss from Operations was $243.5 million , or 39% of Net Revenue; Net Loss was $254.6 million , or 41% of Net Revenue. Care Margin was $188.1 million , or 30% of Net Revenue. Adjusted EBITDA was a loss of $34.9 million , or 6% of Net Revenue. Financial Outlook
One Medical provides forward-looking guidance on membership count, total net revenue, Care Margin, and Adjusted EBITDA. Care Margin and Adjusted EBITDA are non-GAAP measures.
Three Months Ending March 31, 2022 Twelve Months Ending December 31, 2022 Amounts in millions, except membership data Low High Low High Consumer and Enterprise Members 715 735 790 810 At-Risk Members 37 38 40 42 Total 752 773 830 852 Medicare Revenue $ 125 $ 130 $ 515 $ 535 Commercial Revenue 115 120 530 550 Total Net Revenue $ 240 $ 250 $ 1,045 $ 1,085 Care Margin $ 35 $ 45 $ 195 $ 215 Adjusted EBITDA $ (40 ) $ (30 ) $ (135 ) $ (115 )
Management has not reconciled forward-looking non-GAAP Care Margin and Adjusted EBITDA to their most directly comparable GAAP measures of loss from operations and net loss, respectively. This is because we cannot predict with reasonable certainty and without unreasonable efforts the ultimate outcome of certain GAAP components of such reconciliations, including market-related assumptions that are not within our control, certain legal or advisory costs or others that may arise, without unreasonable effort. For these reasons, we are unable to assess the probable significance of the unavailable information, which could materially impact the amount of the future directly comparable GAAP measures. See below for additional important disclosures regarding our non-GAAP financial measures.
Quarterly Conference Call Details
The company will host a conference call to review the results today, Wednesday, February 23, 2022 at 1:30 p.m. (PT) / 4:30 p.m. (ET). A live audio webcast will be available online at https://investor.onemedical.com
Key Metrics and Non-GAAP Financial Measures
Members: members include both Consumer and Enterprise members as well as At-Risk members as defined below. Our number of members depends, in part, on our ability to successfully market our services directly to consumers including Medicare-eligible as well as non-Medicare eligible individuals, to Medicare Advantage health plans and Medicare Advantage enrollees, to employers that are not yet enterprise clients, as well as our activation rate within existing enterprise clients. We define estimated activation rate for any enterprise client at a given time as the percentage of eligible lives enrolled as members. While growth in the number of members is an important indicator of expected revenue growth, it also informs our management of the areas of our business that will require further investment to support expected future member growth. Member numbers as of the end of each period are rounded to the thousands.
Consumer and Enterprise Members : a Consumer and Enterprise member is a person who has registered with us and has paid for membership for a period of at least one year or whose membership has been sponsored by an enterprise or other third party under an agreement having a term of at least one year. Consumer and Enterprise members do not include trial memberships, our virtual only One Medical Now users, or any temporary users. Our number of Consumer and Enterprise members depends, in part, on our ability to successfully market our services directly to consumers and to employers that are not yet enterprise clients and our activation rate within existing clients. Consumer and Enterprise members may include individuals who are: (i) Medicare-eligible and (ii) have paid for a membership or whose membership has been sponsored by an enterprise or other third party. Consumer and Enterprise members do not include any At-Risk members as defined below. Consumer and Enterprise members help drive commercial revenue.
At-Risk Members : an At-Risk member is a person for whom we are responsible for managing a range of healthcare services and associated costs. At-Risk members help drive Medicare revenue.
Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. We believe that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our business, results of operations, or outlook. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate similarly-titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison.
Medical Claims Expense Ratio: we define Medical Claims Expense Ratio as medical claims expense divided by Capitated Revenue. The nature of our contracting with Medicare Advantage payers and CMS requires us to be financially responsible for a range of healthcare services of our At-Risk members. Our care model focuses on leveraging the primary care setting as a means of reducing unnecessary or avoidable health care costs and balancing our cost of care with the impact of our service levels on medical claims expense. We are liable for potentially large medical claims should we not effectively manage our At-Risk members’ health. We therefore consider the Medical Claims Expense Ratio to be an important measure to monitor our performance. As we sign up new At-Risk members or open new offices to serve these members, our Medical Claims Expense Ratio is likely to increase initially due to a potential increase in medical claims expense from a lag in improvement in health outcomes with member tenure. Similarly, there may be a lag in adequately documenting the health status of our members, resulting in different Capitated Revenue compared to what is indicated by the health status of an At-Risk member. We believe that the Medical Claims Expense Ratio for a given set of At-Risk members can improve over time as we help improve their health outcomes relative to their underlying health conditions.
Care Margin: we define Care Margin as income or loss from operations excluding depreciation and amortization, general and administrative expense and sales and marketing expense. We consider Care Margin to be an important measure to monitor our performance, specific to the direct costs of delivering care. We believe this margin is useful to both us and investors to measure whether we are effectively pricing our services and managing the health care and associated costs, including medical claims expense and cost of care, of our At-Risk members successfully. We have provided below a reconciliation of historical Care Margin to loss from operations, its most directly comparable GAAP financial measure.
Adjusted EBITDA: we define Adjusted EBITDA as net income or loss excluding interest income, interest and other expense, depreciation and amortization, stock-based compensation, change in the fair value of our redeemable convertible preferred stock warrant liability, provision for (benefit from) income taxes, certain legal or advisory costs, and acquisition and integration costs that we do not consider to be expenses incurred in the normal operation of the business. Such legal or advisory costs may include but are not limited to expenses with respect to evaluating potential business combinations, legal investigations, or settlements. Acquisition and integration costs include expenses incurred in connection with the closing and integration of acquisitions, which may vary significantly and are unique to each acquisition. We started to exclude prospectively from our presentation certain legal or advisory costs from the first quarter of 2021 and acquisition and integration costs from the second quarter of 2021, because amounts incurred in the prior periods were insignificant relative to our consolidated operations. We include Adjusted EBITDA because it is an important measure upon which our management assesses and believes investors should assess our operating performance. We consider Adjusted EBITDA to be an important measure to both management and investors because it helps illustrate underlying trends in our business and our historical operating performance on a more consistent basis. We have provided below a reconciliation of historical Adjusted EBITDA to net loss, its most directly comparable GAAP financial measure.
Available Information
One Medical intends to use its Company website (including its Investor Relations website) as well as its Facebook, Twitter and LinkedIn accounts as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
Forward-Looking Statements
This press release contains forward-looking statements about us and our industry that involve substantial risks and uncertainties and are based on our beliefs and assumptions and on information currently available to us. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations, financial condition, business strategy and plans and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” or “would,” or the negative of these words or other similar terms or expressions.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements represent our current beliefs, estimates and assumptions only as of the date of this press release and information contained in this press release should not be relied upon as representing our estimates as of any subsequent date. These statements, and related risks, uncertainties, factors and assumptions, include, but are not limited to: timely and successful integration of Iora with our company and our ability to timely and successfully achieve the anticipated benefits and potential synergies of the transaction; the strength of the One Medical brand; member satisfaction with our services and support; the effects of the COVID-19 pandemic, including any new outbreaks and emerging variant strains of the virus, and related self-isolation and quarantine measures on our business, revenue, future growth and results of operations; anticipated membership growth and revenue potential from our members; our ability to retain members; our ability to successfully introduce and drive adoption of new products; changes in the pricing we offer our members; our relationships with our health network partners and enterprise clients and any changes to, accommodations in or terminations of our contracts with the health network partners or enterprise clients; our ability to improve cost of care and margins, including timing and expenses of new office openings and entry into new geographic markets; changes in laws or regulations; our involvement in existing and potential litigation, including medical malpractice claims and consumer class actions; any governmental investigations or inquiries, including those related to COVID-19 vaccine administration or challenges to our relationships with the One Medical PCs under the administrative services agreements; our strategic plan; the impact of new laws and regulations on our industry, including Medicare, general economic and market conditions, our financial outlook; our focus areas for investment and our investments; announcements by us or our competitors of business or strategic developments; and our overall business trajectory. These risks are not exhaustive. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Further information on factors that could cause actual results to differ materially from the results anticipated by our forward-looking statements is included in the reports we have filed or will file with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2021. These filings, when available, are available on the investor relations section of our website at investor.onemedical.com and on the SEC’s website at www.sec.gov
About One Medical
One Medical is a membership-based and technology-powered primary care platform with seamless digital health and inviting in-office care, convenient to where people work, shop, live, and click. Our vision is to delight millions of members with better health and better care while reducing costs. Our mission is to transform health care for all through our human-centered, technology-powered model. Headquartered in San Francisco, 1Life Healthcare, Inc. is the administrative and managerial services company for the affiliated One Medical physician owned professional corporations that deliver medical services in-office and virtually. 1Life and the One Medical entities do business under the “One Medical” brand.
Media Contact:
Investor Contact:
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except per share amounts) (unaudited)
Three Months Ended December 31, Year Ended December 31 2021 2020 2021 2020 Net revenue: Medicare revenue $ 99,517 $ — $ 129,979 $ — Commercial revenue 130,697 121,800 493,336 380,223 Total net revenue 230,214 121,800 623,315 380,223 Operating expenses: Medical claims expense 90,458 — 116,543 — Cost of care, exclusive of depreciation and amortization shown separately below 102,182 71,179 318,639 234,959 Sales and marketing (1) 24,355 8,120 61,994 36,967 General and administrative (1) 88,516 39,046 323,127 157,282 Depreciation and amortization 20,552 6,251 46,496 22,374 Total operating expenses 326,063 124,596 866,799 451,582 Loss from operations (95,849 ) (2,796 ) (243,484 ) (71,359 ) Other income (expense), net: Interest income 79 174 798 1,809 Interest and other expense (3,608 ) (5,758 ) (13,757 ) (13,434 ) Change in fair value of redeemable convertible preferred stock warrant liability — — — (6,560 ) Total other income (expense), net (3,529 ) (5,584 ) (12,959 ) (18,185 ) Loss before income taxes (99,378 ) (8,380 ) (256,443 ) (89,544 ) Provision for (benefit from) income taxes (3,945 ) (232 ) (1,802 ) (123 ) Net loss (95,433 ) (8,148 ) (254,641 ) (89,421 ) Less: Net loss attributable to noncontrolling interest — — — (704 ) Net loss attributable to 1Life Healthcare, Inc. stockholders $ (95,433 ) $ (8,148 ) $ (254,641 ) $ (88,717 ) Net loss per share attributable to 1Life Healthcare, Inc. stockholders - basic and diluted $ (0.50 ) $ (0.06 ) $ (1.64 ) $ (0.75 ) Weighted average common shares outstanding - basic and diluted 192,402 133,533 155,343 118,379
(1) Includes stock-based compensation, as follows:
Three Months Ended December 31, Year Ended December 31 2021 2020 2021 2020 (unaudited) (unaudited) (unaudited) Sales and marketing $ 1,265 $ 542 $ 4,136 $ 2,385 General and administrative 29,839 7,230 108,162 32,710 Total $ 31,104 $ 7,772 $ 112,298 $ 35,095
Components of Net Revenue:
Three Months Ended December 31, Year Ended December 31 2021 2020 2021 2020 (unaudited) (unaudited) (unaudited) Net revenue: Capitated revenue $ 96,737 $ — $ 126,609 $ — Fee-for-service and other revenue 2,780 — 3,370 — Total Medicare revenue 99,517 — 129,979 — Partnership revenue 58,447 52,117 224,051 159,482 Net fee-for-service revenue 49,098 51,438 181,811 149,695 Membership revenue 23,152 18,245 85,711 68,466 Grant income — — 1,763 2,580 Total commercial revenue 130,697 121,800 493,336 380,223 Total net revenue $ 230,214 $ 121,800 $ 623,315 $ 380,223
Statements of Operations Data as a Percentage of Net Revenue:
Three Months Ended December 31, Year Ended December 31 2021 2020 2021 2020 (unaudited) (unaudited) (unaudited) Net revenue: Medicare revenue 43 % — % 21 % — % Commercial revenue 57 % 100 % 79 % 100 % Total net revenue 100 % 100 % 100 % 100 % Operating expenses: Medical claims expense 39 % — % 19 % — % Cost of care, exclusive of depreciation and amortization shown separately below 44 % 58 % 51 % 62 % Sales and marketing (1) 11 % 7 % 10 % 10 % General and administrative (1) 38 % 32 % 52 % 41 % Depreciation and amortization 9 % 5 % 7 % 6 % Total operating expenses 142 % 102 % 139 % 119 % Loss from operations (42)% (2)% (39)% (19)% Other income (expense), net: Interest income — % — % — % — % Interest and other expense (2)% (5)% (2)% (4)% Change in fair value of redeemable convertible preferred stock warrant liability — % — % — % (2)% Total other income (expense), net (2)% (5)% (2)% (5)% Loss before income taxes (43)% (7)% (41)% (24)% Provision for (benefit from) income taxes (2)% — % — % — % Net loss (41)% (7)% (41)% (24)% Less: Net loss attributable to noncontrolling interest — % — % — % — % Net loss attributable to 1Life Healthcare, Inc. stockholders (41)% (7)% (41)% (23) %
(1) Includes stock-based compensation, as follows:
Three Months Ended December 31, Year Ended December 31 2021 2020 2021 2020 (unaudited) (unaudited) (unaudited) Sales and marketing 1 % — % 1 % 1 % General and administrative 13 % 6 % 17 % 9 % Total 14 % 6 % 18 % 9 %
Components of Net Revenue:
Three Months Ended December 31, Year Ended December 31 2021 2020 2021 2020 (unaudited) (unaudited) (unaudited) Net revenue: Capitated revenue 42 % — % 20 % — % Fee-for-service and other revenue 1 % — % 1 % — % Total Medicare revenue 43 % — % 21 % — % Partnership revenue 25 % 43 % 36 % 42 % Net fee-for-service revenue 21 % 42 % 29 % 39 % Membership revenue 10 % 15 % 14 % 18 % Grant income — % — % — % 1 % Total commercial revenue 57 % 100 % 79 % 100 % Total net revenue 100 % 100 % 100 % 100 %
*Percentages may not sum due to rounding.
CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except par value amounts) (unaudited)
December 31, 2021 2020 Assets Current assets: Cash and cash equivalents $ 341,971 $ 112,975 Short-term marketable securities 111,671 570,023 Accounts receivable, net 103,498 67,895 Inventories 6,065 7,113 Prepaid expenses 28,055 9,169 Other current assets 21,767 7,524 Total current assets 613,027 774,699 Long-term marketable securities 48,296 — Restricted cash 3,801 1,911 Property and equipment, net 193,716 126,037 Right-of-use assets 256,293 138,840 Intangible assets, net 352,158 — Goodwill 1,147,464 21,301 Deferred income taxes — 2,656 Other assets 12,277 5,546 Total assets $ 2,627,032 $ 1,070,990 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 18,725 $ 12,654 Accrued expenses 72,672 46,527 Deferred revenue, current 47,928 35,966 Operating lease liabilities, current 31,152 17,418 Other current liabilities 31,632 4,861 Total current liabilities 202,109 117,426 Operating lease liabilities, non-current 269,641 153,614 Convertible senior notes 309,844 241,233 Deferred income taxes 73,875 — Deferred revenue, non-current 29,317 7,624 Other non-current liabilities 13,663 2,618 Total liabilities 898,449 522,515 Commitments and contingencies Stockholders' Equity: Common stock, $0.00 1 par value, 1,000,000 and 1,000,000 shares authorized as of December 31, 2021 and December 31, 2020, respectively; 191,722 and 134,472 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively 193 134 Additional paid-in capital 2,346,781 918,118 Accumulated deficit (618,198 ) (369,785 ) Accumulated other comprehensive income (193 ) 8 Total stockholders' equity 1,728,583 548,475 Total liabilities and stockholders' equity $ 2,627,032 $ 1,070,990
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) (unaudited)
Year Ended December 31 2021 2020 Cash flows from operating activities: Net loss $ (254,641 ) $ (89,421 ) Adjustments to reconcile net loss to net cash used in operating activities: Provision for bad debts 966 105 Depreciation and amortization 46,496 22,374 Amortization of debt discount and issuance costs 1,874 7,767 Accretion of discounts and amortization of premiums on marketable securities, net 1,178 (933 ) Change in fair value of redeemable convertible preferred stock warrant liability — 6,560 Reduction of operating lease right-of-use assets 22,062 13,653 Stock-based compensation 112,298 35,095 Deferred income taxes (4,006 ) (2,656 ) Other non-cash items 864 (8 ) Changes in operating assets and liabilities: Accounts receivable, net (16,546 ) (35,167 ) Inventories 1,118 (3,921 ) Prepaid expenses and other current assets (18,979 ) 6,488 Other assets 1,687 (943 ) Accounts payable 3,111 298 Accrued expenses 11,175 26,849 Deferred revenue 3,350 16,566 Operating lease liabilities (20,919 ) (12,169 ) Other liabilities 20,346 5,085 Net cash used in operating activities (88,566 ) (4,378 ) Cash flows from investing activities: Purchases of property and equipment, net (63,616 ) (63,707 ) Purchases of marketable securities (215,289 ) (963,272 ) Proceeds from sales and maturities of marketable securities 623,966 513,315 Acquisitions of businesses, net of cash and restricted cash acquired (23,257 ) — Issuance of note receivable (30,000 ) — VIE deconsolidation — (810 ) Net cash provided by (used in) investing activities 291,804 (514,474 ) Cash flows from financing activities: Proceeds from issuance of convertible senior notes — 316,250 Payment of convertible senior notes issuance costs — (9,374 ) Proceeds from initial public offering — 281,750 Payment of underwriting discount and commissions, and offering costs — (20,538 ) Proceeds from the exercise of stock options 22,784 35,686 Proceeds from employee stock purchase plan 5,078 4,835 Taxes paid related to net share settlement of equity awards — (833 ) Proceeds from the exercise of redeemable convertible preferred and common stock warrants — 110 Repayment of notes payable — (3,300 ) Payment of principal portion of finance lease liability (51 ) (58 ) Net cash provided by financing activities 27,811 604,528 Net increase in cash, cash equivalents and restricted cash 231,049 85,676 Cash, cash equivalents and restricted cash at beginning of period 115,005 29,329 Cash, cash equivalent and restricted cash at end of period $ 346,054 $ 115,005 Supplemental disclosure of cash flow information: Cash paid for income taxes $ 13,177 $ — Cash paid for interest $ 9,495 $ 5,251 Supplemental disclosure of non-cash investing and financing activities: Purchases of property and equipment included in accounts payable and accrued expenses $ 10,707 $ 4,571 Equity consideration provided for business acquisition $ 1,361,955 $ —
Select Metrics (As of Period End)
December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020 Consumer and Enterprise members 703,000 683,000 621,000 598,000 549,000 511,000 475,000 455,000 At-Risk members 33,000 32,000 — — — — — — Offices 182 177 124 110 107 103 96 92
MEDICAL CLAIMS EXPENSE RATIO
Three Months Ended December 31, Year Ended December 31 2021 2020 2021 2020 (in thousands) Medical claims expense $ 90,458 $ — $ 116,543 $ — Capitated Revenue $ 96,737 $ — $ 126,609 $ — Medical Claims Expense Ratio 94 % N/A 92 % N/A
RECONCILIATION OF LOSS FROM OPERATIONS TO CARE MARGIN
Three Months Ended December 31, Year Ended December 31 2021 2020 2021 2020 (in thousands) Loss from operations $ (95,849 ) $ (2,796 ) $ (243,484 ) $ (71,359 ) Sales and marketing* 24,355 8,121 61,994 36,967 General and administrative* 88,516 39,046 323,127 157,282 Depreciation and amortization 20,552 6,251 46,496 22,374 Care margin $ 37,574 $ 50,622 $ 188,133 $ 145,264 Care margin as a percentage of net revenue 16 % 42 % 30 % 38 %
* Includes stock-based compensation
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
Three Months Ended December 31, Year Ended December 31 2021 2020 2021 2020 (in thousands) Net loss $ (95,433 ) $ (8,147 ) $ (254,641 ) $ (89,421 ) Interest income (79 ) (173 ) (798 ) (1,809 ) Interest and other expense 3,608 5,757 13,757 13,434 Depreciation and amortization 20,552 6,251 46,496 22,374 Stock-based compensation 31,104 7,772 112,298 35,095 Change in fair value of redeemable convertible preferred stock warrant liability — — — 6,560 Provision for (benefit from) income taxes (3,945 ) (233 ) (1,802 ) (123 ) Legal or advisory costs (1) (2) 426 — 16,514 — Acquisition and integration costs 3,205 — 33,318 — Adjusted EBITDA $ (40,562 ) $ 11,227 $ (34,858 ) $ (13,890 )
(1) Approximately $5.6 million of the legal or advisory costs relate to a legal settlement during the year ended December 31, 2021. (2) Amount excludes approximately $1.2 million of legal or advisory costs incurred during the year ended December 31, 2020. We began excluding certain legal or advisory costs from Adjusted EBITDA starting from the first quarter of 2021.
