Hinge Health, a provider of digital physical therapy services, filed for an IPO on Monday, marking a potential reopening of the public markets for digital health companies. The company, which offers virtual exercise therapy and pain management solutions, saw revenue grow 33% last year to $390 million, while net losses narrowed to $11.9 million from $108.1 million.
The IPO market has been largely stagnant for digital health, with no companies in the sector going public in 2023. Hinge Health’s listing follows limited healthcare IPO activity last year, including Waystar and Tempus AI.
Founded in 2014 by Daniel Perez and Gabriel Mecklenburg after their own experiences with rehabilitation, the San Francisco-based company provides remote musculoskeletal treatment, including an electrical nerve stimulation device called Enso. Hinge Health claims its solutions reduce pain, lower healthcare costs, and help prevent surgery.
The company has raised over $1 billion from investors like Tiger Global and Coatue Management, reaching a $6.2 billion valuation in 2021. Its largest outside shareholders, Insight Partners and Atomico, own 19% and 15%, respectively.
Hinge Health plans to trade on the NYSE under the ticker symbol “HNGE.” It employs a dual-class stock structure, granting founders and key investors greater control through Class B shares with 15 votes each.
The company’s services are used by employees at over 2,250 organizations, including Morgan Stanley, Target, and General Motors. As of December 31, it had 532,000 members, with over 20 million people eligible to enroll.
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