Hinge Health, a digital physical therapy company, priced its initial public offering at $32 per share on Wednesday, the upper end of its expected pricing range. The startup sold 8.52 million shares in the offering, raising approximately $273 million. The total offering consisted of 13.7 million shares, with the remaining shares sold by existing shareholders. Founded in 2014, Hinge Health will begin trading on the New York Stock Exchange under the ticker symbol “HNGE.” The company had initially filed its IPO prospectus in March and revised its pricing range earlier this month to between $28 and $32 per share.
At the IPO price, Hinge Health’s market valuation stands around $2.6 billion, though this figure could increase on a fully diluted basis. This valuation marks a significant decrease from the private market valuation of $6.2 billion achieved in October 2021, when the company last raised outside capital. Despite the lower valuation, the company’s business has shown strong growth, particularly in the digital health sector.
Hinge Health specializes in software solutions that enable patients to remotely treat acute musculoskeletal injuries, manage chronic pain, and undergo post-surgical rehabilitation. The company’s co-founders, CEO Daniel Perez and Executive Chairman Gabriel Mecklenburg, bring personal experience to the mission, having both faced challenges with physical rehabilitation themselves.
Financially, Hinge Health has demonstrated impressive growth. In the first quarter, revenue increased by 50%, reaching $123.8 million compared to $82.7 million a year earlier. The company reported net income of $17.1 million for the period, a marked turnaround from a net loss of $26.5 million in the same quarter last year, signaling improved profitability and operational efficiency.
This IPO is particularly significant for the digital health sector, which has seen few public offerings since 2021. The industry has faced headwinds in recent years as companies grappled with the post-Covid slowdown and shifting market dynamics. Hinge Health’s successful pricing and market debut could be a positive sign for digital health firms seeking public market access.
Tech IPO activity more broadly has been limited recently, but there are signs of resurgence. For example, stock brokerage platform eToro experienced a strong debut last week, while AI infrastructure provider CoreWeave reported rapid revenue growth and a substantial stock price rally. These movements suggest growing investor appetite for innovative technology companies despite ongoing market volatility.
Hinge Health has raised more than $1 billion from prominent investors, including Insight Partners, Tiger Global Management, and Coatue Management. The company’s leadership remains optimistic about the future, with CEO Daniel Perez expressing in a letter to investors in March that the company has “many decades of work ahead” and inviting investors to join on the journey toward advancing digital physical therapy and remote rehabilitation.
Overall, Hinge Health’s IPO pricing reflects a balance between cautious optimism about the digital health sector’s recovery and the company’s solid financial performance and growth potential. Its market debut will be closely watched as an indicator of investor sentiment toward digital health innovations and tech companies navigating a complex public market landscape.
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