Ryan Powderly-Gross

Ryan Powderly-Gross with Barclays asked about Hinge Health's competitive moats against AI replication fears and the impact of the engagement-based pricing model on billing and revenue recognition.

Answer

Daniel Perez, Co-founder and CEO, explained Hinge Health's moats include proprietary data from 100 million+ treatment sessions, established distribution channels, a product extending beyond software to hardware and in-person care, and robust clinical validation. Jim Pursley, President, clarified that with engagement-based pricing, billing occurs over 2-3 months as usage happens, while revenue recognition remains consistent, starting on day one of treatment for both models.

Ryan Powderly-Gross asked about Hinge Health's competitive moats against AI replication fears and the impact of the new engagement-based pricing model on billable milestones and revenue recognition.

Answer

Dan Perez, Co-founder and CEO, explained Hinge's moats include proprietary data from 100 million+ treatment sessions, decade-long distribution channels with health plans and employers, a product experience extending beyond software to hardware and in-person care, and robust clinical validation. Jim Pursley, President, and James Budge, CFO, clarified that the engagement-based model aligns interests by billing as usage occurs over 2-3 months, while revenue recognition still begins on day one of treatment.

Ryan Powderly-Gross of Barclays inquired about the starting ARPU for new logos that include the Mantle solution and asked for a breakdown of the quarterly user growth between new and existing clients.

Answer

CFO Bryan Hill explained that Mantle typically adds 30-40% in ARR to a new logo deal, which averages around $800,000. CEO Alex Shootman added that standalone Mantle deals can create multimillion-dollar relationships. Hill also clarified that of the 400,000 users added in Q2, 25% came from new client implementations, with the remaining 75% being net growth from the existing client base.