^{Source: Business Insider}

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Overview

Hinge Health, a leading digital musculoskeletal (MSK) care platform, revealed on Monday a dramatic 50% year-over-year revenue increase in its first-quarter financials, updating its IPO prospectus with results that show significant momentum. The company reported $123.8 million in Q1 revenue, up from $82.7 million during the same period in 2023, and swung to profitability for the first time — signaling confidence as it eyes its public debut. However, the company has yet to disclose a price range or listing date for its initial public offering.

Key Financial Highlights

• Revenue Surge: Q1 2024 revenue reached $123.8 million, a 50% increase from $82.7 million in Q1 2023.
• Profitability Milestone: Hinge Health reported net income of $17.1 million for the quarter, a significant turnaround from a net loss of $26.5 million a year ago.
• Operating Income: The company logged $13.1 million in operating profit, compared to an operating loss of $31.4 million in Q1 2023.
• Gross Margin Expansion: Gross margin widened from 70% to 81%, as cost of goods sold declined slightly despite higher revenue.
• Quarter-over-Quarter Growth: Q1 revenue rose from $117.3 million in Q4 2023, which had already marked a 44% year-over-year increase.

IPO Still in the Pipeline — But No Price Tag Yet

Hinge Health originally filed to go public in March 2024, joining a growing list of digital health startups seeking access to public capital. However, like other companies navigating macroeconomic volatility and investor caution, Hinge has held back on setting a valuation or pricing its IPO.

Despite a more favorable financial performance, IPO momentum in 2024 remains mixed. High-profile names like Klarna and StubHub have delayed listings, waiting for more stable conditions. According to Renaissance Capital, IPO activity in the first half of 2024 is down nearly 40% compared to 2021 highs.

Still, Hinge's Q1 performance appears designed to bolster investor confidence ahead of its public debut. The company’s ability to flip from loss to profit amid uncertain markets is a rare feat in the digital health space.

How Hinge Health Works

Founded in 2014 by CEO Daniel Perez and Executive Chairman Gabriel Mecklenburg, Hinge Health was inspired by their personal experiences recovering from musculoskeletal injuries. The platform combines app-based physical therapy with motion sensors, AI-driven coaching, and its proprietary Enso wearable nerve stimulation device.

The service is primarily offered through employer-sponsored health plans. As of Q1 2024, Hinge Health claims to serve over 1,250 enterprise clients, including more than 100 Fortune 500 companies, reaching millions of covered lives.

In addition to chronic pain treatment and post-surgical recovery, Hinge Health recently expanded into preventive MSK care and women’s pelvic health, reflecting a broader strategy to grow total addressable market (TAM) and reduce long-term healthcare costs for employers.

Market Context and Competitive Landscape

Hinge Health is entering the public markets amid a tightening IPO environment and cautious investor sentiment, particularly in tech and healthcare. The company is part of a crowded but growing digital MSK sector, competing with startups like Kaia Health, Sword Health, and Omada Health.

According to Grand View Research, the global digital MSK market is projected to grow at a compound annual growth rate (CAGR) of 32%, reaching $10.2 billion by 2030. With MSK conditions accounting for up to 20% of employer healthcare spending, demand for scalable solutions continues to rise.

Hinge's bet on clinical outcomes and user engagement may help differentiate it from competitors. The company claims a 69% average reduction in chronic pain among users and high program adherence, a metric critical to cost-savings for insurers and employers.

Final Thoughts

While many IPO hopefuls are sitting on the sidelines, Hinge Health appears ready to press forward. Its first-quarter financials show a company not only growing rapidly but now operating in the black — a rarity among health tech IPOs in recent years.

However, until a valuation and price range are disclosed, questions remain about how the market will value profitability, growth, and scalability in a post-pandemic health tech landscape.

For now, investors and analysts alike will be watching closely to see when Hinge Health finally makes the leap onto Wall Street — and at what price.

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