How did OSCR's Q4 2024 earnings surprise investors?

**Oscar Health's (OSCR) Q4 2024 earnings report reflected robust revenue growth and strategic market expansion, despite missing estimates on EPS.** Here's a detailed analysis: 1. **Revenue Growth**: Oscar Health reported a 68% year-over-year increase in revenue, reaching $2.47 billion for the quarter. This significant growth was driven by higher membership and rate increases, with total company adjusted EBITDA amounting to $312 million year-to-date, a $246 million increase year over year. The company's revenue exceeded analyst estimates by 3.3%, reaching $2.42 billion for the quarter, compared to the expected $2.33 billion. 2. **Earnings Per Share (EPS)**: However, Oscar Health missed estimates on EPS, reporting a loss of $0.58 per share for the quarter. This was a narrower loss than the previous year's $0.29 per share loss for the same period, but it still fell short of analysts' expectations by $0.02. The net loss for the quarter was $54.6 million, an improvement of $10.8 million year over year. 3. **Market Expansion**: Despite the EPS miss, Oscar Health's strategic market expansion and increase in total addressable lives were notable. The company closed the first nine months of 2024 with approximately 1.65 million members, a 68% increase year over year. Additionally, the company is on track to achieve net income profitability for the year, marking a significant milestone. 4. **Challenges**: The medical loss ratio increased by 80 basis points year over year to 84.6%, primarily driven by higher SEP membership and a late summer COVID uptick. This increase in medical costs and competitive pricing pressures could impact future earnings. However, the SG&A Expense Ratio improved by approximately 360 basis points year over year to 19%, indicating operational efficiencies. In conclusion, while Oscar Health's Q4 2024 earnings showed strong revenue growth and market expansion, the company's EPS fell short of expectations. The company's strategic direction and improvements in operational efficiency provide a positive outlook, despite the challenges posed by increased medical costs and competitive pressures.