Q3 2021 Sharecare Inc Earnings Call

Good morning, and welcome to <unk> third quarter 2021 earnings conference call and webcast all participants will be in a listen only mode.

After today's presentation there'll be an opportunity to ask questions.

Leading today's call are Mr. Jeff Arnold Chairman, and CEO and Mr. Joseph <unk>, President and Chief Financial Officer.

Before we begin we would like to remind you that certain statements made during this call will be forward looking statements within the meaning of the safe Harbor provisions of the private Securities Litigation Reform Act of 1095.

Forward looking statements are subject to various risks and uncertainties and reflect our current expectations based on our beliefs assumptions and information currently available to us.

Although we believe these expectations are reasonable we undertake no obligation to revise any statement to reflect changes that occur after this call.

A description of some of the factors that could cause actual results to differ materially from these forward looking statements are discussed in more detail in our filings with the SEC, including the risk factors section of the prospectus for our business combination filed with the SEC on June three 2021.

In addition, please note that the company will be discussing certain non-GAAP financial measures that we believe are important in evaluating performance.

Details on the relationship between these non-GAAP measures to the most comparable GAAP measures and reconciliation of historical non-GAAP financial measures can be found in the press that is posted on the company's website.

I would now like to hand, the conference over to Mr. Jeff Arnold. Please go ahead.

Good morning, everyone and thank you for joining share Care's third quarter fiscal 2021 conference call.

Very proud that we delivered another strong quarter of financial performance and further expanded the reach of our digital health platform to enable millions of members and.

And consumers to consolidate and manage all their health in one place regardless of where they are on their health journey.

By partnering with leading payers providers life science companies and employers, we make it easy for them to buy implement and engage with their populations to measurably improve their overall well being.

Now let me provide a brief overview of our financial results for the quarter.

The third quarter results reflect the momentum we are seeing in the market exceeding our expectations, we beat our revenue and adjusted EBITDA guidance delivering revenue growth of 32% to $105.6 million compared.

Compared to the prior year period, and adjusted EBITDA of $7 9 million.

The results demonstrate the continued execution of our land and expand strategy.

The advancement of our business development initiatives and the initial successful integration of our recent <unk> acquisition.

We also continued to bolster our team with key executive hires including Jaffray Mohamed <unk> healthcare business and was previously with anthem, Kevin O'loughlin, who ran salesforce as healthcare sector working closely with health plans, including anthem, and our new head of Investor Relations.

Evan Smith.

Joining us from change healthcare. Additionally.

Additionally, I'd like to congratulate our Chief Medical Officer, Dr. <unk> Shah on his recent appointment to the Advisory Committee of the CDC director.

We are continuing to build momentum, which gives us great confidence for growth and profitability for the remainder of fiscal 2021 and fiscal 2022.

Let me provide some color on our performance by channel starting with enterprise.

In the second quarter, we expanded our relationships with key enterprise clients as well as one several new clients, including inland or Aflac, let's we'll begin to ramp in the fourth quarter and early next year.

We also launched several government sponsored and commercial health plans during the quarter.

I would also note that we are executing well on the implementation of previously disclosed program wins, including both Centene and you managed care plus as well as with corporate clients like Nordstrom and Lockheed Martin.

Among many others.

As a result, we continue to expand our base of lives and are on track to end the year with nearly 10 million lives on the platform.

In addition, we're also seeing increased engagement or deploy digital therapeutics, which will be a significant growth driver over the next few years as we increase penetration with current customers and expand our total market opportunity.

To further support growth in this area, we launched unwind by share cure a broad base mental wellbeing app designed to help people better understand how their minds work reduce their stress and build healthier habits.

Based on more than a decade of research by renowned neuroscientist and addiction psychiatrist Dr. Jed Brewer, who became share cares executive medical director of behavioral health when we acquired <unk> Sciences in July of 2020.

Unwinding complements our suite of award winning digital therapeutics that are clinically proven to help people overcome behavioral health issues, including anxiety smoking in baking and emotional evening.

Introducing new growth opportunities in both consumer and enterprise.

These proven digital therapeutics address employers increasing demands for science base behavioral health solution and seamlessly integrates into a comprehensive virtual care platform by empowering people to improve and manage the interconnected aspects of their physical and mental well being.

Lastly.

I am very proud of the team given the integration of <unk>, which is performing well against client.

With the increasing activity in home health right now I would like to take a minute to reinforce the competitive advantages share care has realized through this acquisition.

To recap on our last call <unk> is a leading in home care technology platform with a nationwide network of more than 450000 <unk>.

<unk> enabled care provision professionals.

That deliver on demand personal care services endorsed by AARP since 2018 with more than one five.

Medicare advantage members, having access to their services today.

<unk> Tech enabled care provider support the functional needs of seniors and patients living with chronic conditions, while helping address isolation and loneliness.

These home visits Kirilenko digital platform facilitates rich social determinants of health data capture population health analytics, and real time care coordination with remote clinical teams to administer in home monitoring and digital care plans to close identified gaps in care.

Ultimately delivering over three 3 million hours of home based care.

Today, Caroline is being recognized at a white house had met with Elizabeth Dole Foundation for the rest of it relief program.

Ported over 1600 military and veteran families amid the pandemic.

In addition to <unk> strong performance in the quarter, we see significant opportunities as we cross sell their capabilities to our existing customer base as well as leverage their capabilities to drive new integrated solutions, including becoming a unique component differentiating the payer agnostic advocacy solution we are developing.

In partnership with anthem share care plus.

By building on the scale and strength of the share care platform, our advocacy solution share care plus harnessed the power of <unk> industry, leading capabilities in data and artificial intelligence to drive more informed precision health decisions and improve outcomes by leveraging our existing digital capabilities from benefits.

<unk> and risk assessment to digital therapeutics and decision support.

Speaker 1: and risk assessment to digital therapeutics and decision support.

Speaker 1: Sharecare Plus will have all the components to deliver a comprehensive best in class, flexible solution to address the needs of employers, health plans and providers. And we bring this to market working closely in...

Sure care, plus we will have all the components to deliver a comprehensive best in class.

<unk> solution to address the needs of employers health plans and providers and we bring this to market working closely in partnership with anthem, providing their customers seeking a payer agnostic solution, where we are uniquely positioned to engage with people at every step of their health journey and more importantly, engage with them how and.

Speaker 1: providing their customers seeking a payer agnostic solution where we are uniquely positioned to engage with people at every step of their health journey, and more importantly, engage with them how and where they prefer to engage, whether via digital assistant or talking to a live person on the go or in the home.

Where they prefer to engage whether via digital assistant are talking to a live person on the go or in the home.

Now, let me move on to our provider channel.

Speaker 1: Now let me move on to our provider channel, which services approximately 6000 physician practices, hospital systems, and health.

With services, approximately 6000 physician practices hospital systems and health plans we.

Speaker 1: We continue to see positive trends with strength in volumes and demand for our medical record retrieval, payment integrity, and value-based care solutions.

We continue to see positive trends with strength in volumes and demand for our medical record retrieval payment integrity and value based care solutions.

Speaker 1: Showing the strength and diversity of our opportunity across this channel during the quarter, we signed contracts with leading payers and regional hospital systems for our record retrieval business, which received the highest overall performance rating in the 2021 class ROI vendors.

Knowing the strength and diversity of our opportunity across this channel during the quarter we signed.

Signed contracts with leading payers and regional hospital systems for a record retrieval business, which received the highest overall performance rating in the 2021 class ROI vendors report.

Speaker 1: We signed a new contract for our payment integrity offering with a division of one of the largest health and life reinsurance companies in the world.

We signed a new contract for our payment integrity offering with the division of one of the largest health and life reinsurance companies in the world.

We launched our unified patient and provider solution suite with a regional medical center and multi specialty physician group to share care enable their clinicians.

Speaker 1: We launched our unified patient and provider solution suite with a regional medical center and multi-specialty physician group to share care enable their clinician.

Speaker 1: and sign contracts for value-based care offerings, which will begin in the first quarter of 2020.

And sign contracts for value based care offerings, which will begin in the first quarter of 2022.

Moving to our consumer solutions channel, which focuses on leveraging our platform to implement targeted audience specific messaging campaigns on behalf of pharma and life Science companies. We had a very strong performance in Q3, which reflects <unk> ability to deliver strong results against brand goals and the power of our 100 <unk>.

Speaker 1: Moving to our consumer solutions channel, which focuses on leveraging our platform to implement targeted audience specific messaging campaigns on behalf of pharma and life science companies, we had a very strong performance in Q3, which reflects Sharecare's ability to deliver strong results against brand goals and the power of our 108 million first person data.

$8 million first person database.

Speaker 1: The Consumer Solutions channel continues to build momentum, adding approximately 25 significant new brands since this time compared to prior year, with positive trends in average revenue per new brand supported by a significant increase in the number of million dollar plus campaigns.

The consumer solutions channel continues to build momentum, adding approximately 25 significant new brands. Since this time compared to prior year with positive trends in average revenue per new brand supported by a significant increase in the number of million dollar plus campaigns. The team has already built momentum for next year's selling.

Speaker 1: The team has already built momentum for next year's selling of suite of 2022 client solutions, featuring immersive content experiences, and new advanced targeting capabilities, which leverage insights from Sharecare's community wellbeing.

Suite of 2022 client solutions, featuring immersive content experiences and new advanced targeting capabilities, which leverage insights from share cares community Wellbeing index.

Speaker 1: We have integrated new capabilities from our Doc AI acquisition to further efforts to decentralize clinical research and are actively marketing smart omics to pharmaceutical and life sciences companies to advance relevance, equity, and data integrity in research through artificial intelligence powered smartphone based studies.

We have integrated new capabilities from our Doc Doc AI acquisition to further efforts to decentralized clinical research and are actively marketing smart omics to pharmaceutical and life sciences companies to advance relevance equity and data integrity and research through artificial intelligence powered smartphone based studies.

In fact, a recent observational study conducted on behalf of global Biopharmaceutical company UCB exemplify this future approach to research.

Speaker 1: In fact, a recent observational study conducted on behalf of global biopharmaceutical company UCB exemplifies this futurist approach to research by building objective measures of symptoms of a rare disease, achieving diverse representation among the affected population, and automating a collection of rich, patient-generated data.

Building, an objective measures of symptoms of a rare disease.

<unk> diverse representation among the affected population and automating the collection of rich patient generated data streams through smart Omics. We are realizing the future medical research today by conducting these virtual studies, which yield highly relevant real world findings at speed and scale with partners like UCB.

Speaker 1: Through SmartOmics, we are realizing the future of medical research today by conducting these virtual studies, which yield highly relevant real-world findings at speed and scale. With partners like UCB, we are able to maximize not only our understanding of specific conditions, but also build a complete digital journey from research to care for people everywhere.

We're able to maximize not only our understanding of specific conditions, but also build a complete digital journey from research to care for people everywhere.

Speaker 1: We are excited about the potential in these areas, which will further support our growth in fiscal 2022.

We are excited about the potential in these areas, which will further support our growth in fiscal 'twenty two.

As I've demonstrated by our results.

Speaker 1: across all our channels. We have multiple avenues to drive growth, including finding new clients, cross-selling additional solutions.

Across all our channels, we have multiple avenues to drive growth, including signing new clients.

Cross selling additional solutions to our current customers.

Speaker 1: expanding our digital therapeutics and value-based care offerings, and launching new products.

Expanding our digital therapeutics in value based care offerings and launching new products.

Speaker 1: Based on the strength of our platform and momentum to date, we remain confident we can deliver strong, recurring, organic revenue growth with additional growth opportunities as we further enhance Sharecare's capabilities through strategic acquisition.

Based on the strength of our platform and momentum to date, we remain confident we can deliver strong recurring organic revenue growth with additional growth opportunities as we further enhanced <unk> capabilities through strategic acquisitions.

Speaker 1: And now I'll turn the call over to Justin for a more detailed review of our third quarter financial performance. Justin?

And now I'll turn the call over to Justin for a more detailed review of our third quarter financial performance Justin.

Speaker 2: Thanks Jeff, and thanks to everyone on the call for your interest in Sharecare. As Jeff indicated, we delivered another strong quarter with both revenue and adjusted EBITDA exceeding our guidance.

Thanks, Jeff.

Thanks to everyone on the call for your interest in share care.

As Jeff indicated we delivered another strong quarter with both revenue and adjusted EBITDA exceeding our guidance.

Speaker 2: As evidenced by the results, we continue to gain momentum in the business, delivering strong sequential and year-over-year revenue growth and positive adjusted EBITDA while continuing to invest heavily to support our future growth. During the quarter, we hired several key executives as well as attracted great talent across the organization to support our growth.

As evidenced by the results we continue to gain momentum in the business delivering strong sequential and year over year revenue growth and positive adjusted EBITDA, while continuing to invest heavily to support our future growth during the quarter.

Several key executives as well as attracting great talent across the organization to support our growth.

Digging into the quarter. Our total revenue grew 32% from $82 million a year ago to $105 6 million, which also represents more than 7% sequential quarterly growth. This was primarily driven by increased client penetration.

Speaker 2: Digging into the quarter, our total revenue grew 32% from $80.2 million a year ago to $105.6 million, which also represents more than 7% sequential quarterly growth. This was primarily driven by increased client penetration, executing on our land and expand strategy, and new client implementations and wins across the entire platform.

<unk> on our land and expand strategy and new client implementations and wins across the entire platform.

Speaker 2: On an organic basis, we grew total revenue in excess of 20% compared to the third quarter of the prior year. I would also note that recently acquired CareLink is performing in line with, if not ahead of, our initial expectation.

On an organic basis, we grew total revenue in excess of 20% compared to the third quarter of the prior year.

I'd also note that recently acquired Carolyn.

In line with if not ahead of our initial expectations.

Speaker 2: Adjusted EBITDA for the quarter was $7.9 million, which was also ahead of previous guidance of $6 to $7 million, and which reflects increased investments in the current period for both technology and Salesforce expansion.

Adjusted EBITDA for the quarter was $7 9 million, which was also ahead of previous guidance of 6% to $7 million and reflect increased investments in the current period for both technology and sales force expansion.

Speaker 2: We expect the investments to support our long-term growth and drive additional operating leverage as we gain greater traction for the Sharecare digital platform with existing and new customers.

We expect the investments to support our long term growth and drive additional operating leverage as we gain greater traction for the share care digital platform with existing and new customers.

Speaker 2: I'll now turn to our guidance for the fourth quarter and full year.

I'll now turn to our guidance for the fourth quarter and full year.

Speaker 2: Our Q4 guidance for revenue is 120.3 to 121.3 million.

Our Q4 guidance for revenue is 123 to $121 3 million and.

Speaker 2: And adjusted EBITDA is expected to be $8 to $9 million.

And adjusted EBITDA is expected to be $8 million to $9 million.

Speaker 2: The fourth quarter guidance reflects strong sequential growth as various initiatives ramp, as well as seasonality in our consumer solutions channel, which generates more than 30% of its revenue in the fourth quarter as life science companies typically increase their spend for the end of the year.

Quarter guidance reflects strong sequential growth as various initiatives ramp as well as seasonality in our consumer solutions channel, which generates more than 30% of its revenue in the fourth quarter.

Life Science companies typically increase their spend for the end of the year.

Speaker 2: In addition, adjusted EBITDA includes the previously disclosed negative impact from CareLink and additional investments in sales and technology, as well as the seasonal impact of certain marketing-related expenses which occur in the fourth quarter.

In addition, adjusted EBITDA includes the previously disclosed negative impact from Carolyn.

And additional investments in sales and technology as well as the seasonal impact of certain marketing related expenses, which occur in the fourth quarter.

For the full year of 2021, we are reiterating our revenue guidance of $414 million to $415 million, while increasing the midpoint of our adjusted EBITDA guidance, which is now expected to be in a range of $29 million to $30 million, increasing the low end of the range from 2008.

Speaker 2: For the full year 2021, we are reiterating our revenue guidance of $414 to $415 million, while increasing the midpoint of our adjusted EBITDA guidance, which is now expected to be in a range of $29 to $30 million, increasing the low end of the range from $28 million to $29 million.

8 million to $29 million.

Speaker 2: This reflects the strength of the third quarter and that we are essentially fully booked for the remainder of the year. Now I'll hand it back to Jeff for

This reflects the strength of the third quarter and that we are essentially fully booked for the remainder of the year.

Now I'll hand, it back to Jeff for some closing remarks.

Thanks, Justin as you can tell we continue to build momentum as we move through the first nine months of the year delivering on our financial operational and growth objectives. As a result of new business wins, new solution introductions strategic acquisitions and a strong balance sheet, we have established an extremely strong.

Speaker 1: Thanks, Justin. As you can tell, we continue to build momentum as we move through the first nine months of the year, delivering on our financial, operational and growth objectives. As a result of new business wins, new solution introductions, strategic acquisitions,

Speaker 1: and a strong balance sheet, we have established an extremely strong foundation and runway to support future growth and profitability. Again I want to thank everyone on the call today for your continued interest in shared care. We have a significant opportunity ahead of us and I look forward to continuing to update you on our progress. And with that, we'll open the call for any questions. Operator?

<unk> Foundation and runway to support future growth and profitability again I want to thank everyone on the call today for your continued interest in share care, we have a significant opportunity ahead of us and I look forward to continuing to update you on our progress and with that we'll open the call for any questions operator.

Speaker 3: Thank you. To ask a question, you will need to press star 1 on your telephone. To withdraw your question, press the pound key. Please stand by while we compile the Q&A roster.

Thank you.

To ask a question you will need to press star one on your telephone to withdraw your question press the pound key.

Please standby, while we compile the Q&A roster.

Our first question comes from Eric Percher with Nephron Research Your line is open.

Good morning, and thank you all right.

Speaker 4: Good morning and thank you. Question on the number of lives on the platform, and it's good to hear you're nearing the goal of 10 million. When we look at go lives in 2021, what is the trend been in January versus April , July , and October relative to what you've seen historically and maybe what you saw in a disrupted 2020?

Question on the number of lives on the platform and it's good to hear Youre nearing the goal of $10 million. When we look at go lives in 2021.

Is the trend in January versus April July and October relative to what you've seen historically and maybe what you saw in a disrupted 2020.

Hey, Eric it's Justin Thank you for the question.

Speaker 1: Hey, Eric, it's Justin, thank you for the question. Based on our conversations, we are really tracking exactly to what we expected this year. Thank you. Remember, we, we provided at the end of last year, we ended at 8.8M lives and provided guidance to 9.7M.

Based on our conversations we are we're really tracking exactly to what we expected. This year I think you remember we provided at the end of last year.

We ended at $8 8 million lives and provided guidance to $9 7 million and were growing sequentially quarter over quarter and expect to as Jeff alluded to in the opening.

Speaker 1: And we're growing sequentially quarter over quarter and expect to, as Jeff alluded to in the opening, to hit our target of 9.7 million by the end of the year.

To hit our target of $9 7 million by the end of the year.

Speaker 4: It sounds like there's not any real difference relative to how lives ramped in prior years. Maybe I'd ask then, what is your perspective on additions from expansion of accessible lives versus penetration of the accessible lives you currently have.

Alright, so it sounds like there's not any real difference relative to how lives ramped in prior years and maybe I'd ask then what is your perspective on additions from expansion of accessible lives versus penetration.

The lives you currently have.

Speaker 1: Well, we don't break that out, but it's again, where we focus is to make sure we hit the target and the KPI that we provided, which we are going to do.

Well, we don't break that out.

Again, where we where we focus is to make sure we hit the target in the Kpis that we provided which we are going to do.

Speaker 1: But we have a lot of ways to drive growth, as you know, which is from bringing on new client wins to expand it with our existing customer base, which is significant.

But we have a lot of ways to drive growth as you know, which is from bringing on new client wins to expanding with our existing customer base, which is significant.

Speaker 1: to cross selling and we expect all of those to contribute to our growth as we look into 2022. And maybe Justin might add to that. Hi Eric, this is Jeff. I think what's unique about Sharecare is we have these really large health plan clients.

Cross selling and we expect all of those to contribute to our growth as we look into 2022, and maybe Justin I might add to that Eric This is Jeff.

I think what's unique about share care as we have these really large health plan clients.

So there is tons of opportunity to grow with those clients I mean, we're just scratching the surface on the number of covered lives that anthem has or <unk> has.

Speaker 1: tons of opportunity to grow with those clients. I mean, we're just scratching the surface on the number of covered lives that Anthem has or Centene has. And so we're constantly trying to bring on members onto the platform throughout the year.

And so we're constantly trying to bring on members onto the platform our platform throughout the year, but.

Speaker 1: But at the same time, we're having success in the large self-insured employer space.

But at the same time, we're having success in the large self insured employer space and in the past we've talked about wins like Delta State farm and I mentioned in my opening comments recent wins like with Aflac employees are and what our homes employees.

Speaker 1: And in the past, we've talked about wins like Delta and State Farm and I mentioned in my opening comments, recent wins, like with Aflac's employees or our homes employees.

Speaker 1: And we had mentioned that we're bringing on 90 salespeople. And we announced, you know, or I mentioned in my comments.

And we had mentioned that we are bringing on 90 salespeople and we announced our I mentioned in my comments.

Speaker 1: you know, Jeffrey and Kevin who have joined us with PAM to lead that effort. But we've also brought on 24 salespeople since we had our last call. And that's starting to ramp as well. So it's this really nice kind of one-two punch up.

Jaffrey, and Kevin who have joined us with Pam to lead that effort, but we've also brought on 24 salespeople.

Since we had our last call and that's starting to ramp as well so thats really nice kind of a one two punch of.

Speaker 1: you know, grow from within these large health plans, you know, prove that our services work for them and add more members and at the same time add new logos to the roster which, you know, on the combined basis increases our total eligible lives.

Grow from within these large health plans proved that our services work for them and add more members and at the same time add new logos to the roster, which.

On a combined basis increases our total eligible lives.

Speaker 4: And Jeff, you make a great point there. It felt like for some time, most of the wins we saw were coming in the Georgia neighborhood. How far in are we on those 90 additions to actually be out there and productive? And how do you think about productivity ramping?

And Jeff you make a great point there it felt like for some time most of the wins, we saw were coming in the Georgia neighborhood, how far in ROE on those 90 additions to actually be out there and productive and how do you think about productivity ramping.

Speaker 1: They're coming up to speed fast as you know, this is a isn't it's a little bit of a sales cycle. Um, but we expect those sales people to be contributing new logos in 2022.

They're coming up to speed fast as you know this is a.

It's a little bit of a sales cycle.

But we expect those salespeople to be contributing new logos in 2022, and we're already seeing their participation in some of the.

Speaker 1: And we're already seeing their participation in some of the logos that I mentioned, like Aflac and like Lenar. Our pipeline is way more robust this year than even it was last year. And so we're getting a lot more at bats. I think our brand is more known than it was a year ago, but just the volume of RFPs that we're getting is, I'd probably say 5x what it was last year.

Logos that I mentioned like Aflac and <unk> are our pipeline is way more robust this year than even it was last year and so we're getting a lot more at bats, I think our brand is more known.

And then it was a year ago, but just the volume of Rfps that we're getting is I would probably say buybacks or what it was last year and one thing Eric that that might have not been clear from your research report is that we laid.

Speaker 2: And one thing, Eric, that that might have not been clear from your research report is that we laid out that that 90 salespeople we were going to hire over a period of three years.

Laid out that that 90 salespeople, we were going to hire over a period of three years.

Speaker 2: And I don't know if that came across to you when we spoke earlier. So we're right on track through three quarters of the year to hire north of 30 this year. And right in line with the guidance of 90 over the next three years.

<unk>.

I don't know if that came across to you. When we spoke earlier. So we're right on track through three quarters of the year to higher North of 30, this year and right in line with the guidance of 90 over the next three years.

That's helpful. And then maybe last financial question transaction costs was the full $16 8 million in G&A and just any guidance you can give us relative to stock based comp across the expense line items.

Speaker 4: That's helpful. Then maybe last financial question. Transaction costs with the full 16.8 million in G&A and just in any guidance you can give us relative to stock based comp across the expense line items.

Speaker 2: Yeah, stock based comp was significant as well. Really there was three areas, the 16 million is on the transaction expenses. There was 11 million on the stock based comp, which was all transaction related due to vesting of shares. So that was 11 million. And then I just, I think it's important to point out, we paid off all of our debt. We have a very clean balance sheet. And so you saw 12 million come out of our crude deferred financing fees.

Yes stock based comp was significant as well really there were three areas. The $16 million is on the transaction expenses, there was $11 million on the stock based comp, which was all transaction related.

Due to vesting of shares so that was $11 million and then I guess.

It's important to point out we paid off all of our debt we have a very clean balance sheet and so you saw a $12 million come out of our crude deferred financing fees.

Okay. That's helpful last one after two quarters as a public company of the <unk> acquisition, how should we think about headwinds and <unk> to 'twenty two and the numbers you provided back in the S. Four.

Speaker 4: That's helpful. Last one, after two quarters as a public company, the Care Links acquisition, how should we think about headwinds and tailwinds relative to 22 and the numbers you provided back in the S4?

Speaker 1: Well, Justin, I'll let you take that, but as far as maybe explaining care links after the S4.

Well, Justin you want to I'll, let you take that but as far as maybe explained <unk>. After the S. Four you want to do that.

Speaker 1: You want to do that? We feel very, we reiterate our guidance there as you know.

We feel very.

We reiterate our guidance there as you know.

Speaker 2: We provided guidance around 7 million for the year. We're very confident in 2021 numbers.

We provided guidance around $7 million for the year, we're very confident in 2021 numbers, we grew that to $35 million for 2022.

Speaker 2: We grew that to 35 million for 2022.

Speaker 2: And again, we are, we're very confident and achieving that 70% growth year over year. So.

And again, we are we're very confident in achieving that 70% growth year over year. So.

Speaker 2: The integration has been fantastic with Care Links and we see that as a fantastic transaction for our shareholders. The integration has been fantastic with Care Links and we see that as a fantastic transaction

Integration has been fantastic with care lengths, and we see that as a fantastic transaction for our shareholders very accretive and it's going to pay dividends for years to come.

Speaker 2: very creative and it's going to pay dividends for years to come.

Speaker 1: Yeah, we now have 250 health plans on Care Links, which makes up 1.5 million Medicare Advantage members.

We now have 250 health plans.

Caroline's, which makes up $1 5 million Medicare advantage members.

Perfect. Thanks, so much.

Sure. Thank you.

Our next question comes from David <unk> with <unk>. Your line is open.

Hi, congratulations on a very good quarter can you talk a little bit about.

Speaker 5: Hi, congratulations on a very good quarter. Can you talk a little bit about your relationship with Anthem and some of these other large health plans? Everybody's talking about digital first plan designs. United talked about it, Anthem talked about it, CVS Aetna talked about it. Can you maybe just give some color around what Sharecare's contribution is there to your clients? Thank you. Hi, David.

Your relationship with anthem and some of these other large health plans everybody is talking about digital first plan designs, United talked about an anthem talked about it.

Evs at not talked about it can you maybe just give some color around what share care's contribution is there to your clients. Thank you.

Hi, David This is Jeff.

I think we play an important strategic role with our clients.

Speaker 1: I think we play an important strategic role with our clients.

Speaker 1: In particular, you asked about Anthem. So with Anthem's Sydney, we play a significant role with our artificial intelligence services. It powers...

And particularly you asked about anthem.

So.

With anthem.

Any.

We play a significant role with our artificial intelligence services it powers.

Speaker 1: much of that platform as well as we have other share care solutions that we're driving through Sydney. And in addition to that, as you know, when Anthem made their $50 million investment in April into ShareCare, it was so that we could co-develop our ShareCare Plus solution, which is for multi-payer advocacy.

Much of that platform as well as we have other share care solutions that we're driving through Sydney.

And in addition to that as you know when anthem made their $50 million investment in April and to share care. It was so that we can co develop our share care plus solution, which is for multi payer advocacy, so anthem, where they have large employers and what you are not 100% on anthem, they're leading with the share care plus solution as well as <unk>.

Speaker 1: So Anthem, where they have large employers, in which they're not 100% on Anthem, they're leading with the Sharecare Plus solution, as well as we're selling that solution to our other clients as well.

Following that solution to other clients as well.

So it's.

Speaker 1: helping our clients leverage all the capabilities that Sharecare has assembled over the last decade, and then becoming our own digital front door when appropriate, especially for their multi-payer clients.

Helping our clients leverage all the capabilities that share carriers assembled over the last decade, and then be coming our own digital front door when appropriate.

Especially further multi.

A multi payer clients and and we see lots of growth opportunities within all of those relationships.

Speaker 1: And we see lots of growth opportunities within all of those relationships.

Mhm, Okay, and then is Unitedhealth group client of care links or is there in some potential there.

Speaker 5: Mm-hmm. Okay, and then is UnitedHealth Group a client of Care Links or is their in-cell potential there?

Speaker 1: Yes, so Care Links does have a significant relationship with United as well as some other new pairs that we didn't have on our roster in the past and we're hopeful that that relationship will continue to grow for Care Links. It has from 2021 to 2022 as well as it'll give us an opportunity to cross sell some other shared care capabilities.

Yes, so <unk> does have a significant relationship with United.

As well as.

Some other new payers that we didn't have on our roster in the past and and we're hopeful that that relationship will continue to grow for care lengths. It has from 2021% to 2022 as well as it will give us an opportunity to cross sell some other share care capabilities.

Okay, and then I think the Doc AI serves a very large number of anthem members like through Sydney.

Speaker 5: Okay, and then I think that Doc AI serves a very large number of Anthem members like through Sydney. Isn't that in like the multi-million dollar range in like maybe the three to ten million members? So I would think that there's like what is the rate or the price that you're charging for those lives? And I'm just thinking about the PMPM upsell potential.

Isn't that like a multimillion dollar range in like maybe three to 10 million members. So.

I would think that there is like what is the rate or the <unk>.

That you are charging for those those lives and I'm just thinking about the <unk> upsell potential.

Oh, yes, David.

Speaker 2: Yeah, David just page Justin thanks for the question. The, we don't charge that on a PM PM basis. We charge it more as a license fee. And it's a long term relationship with anthem. And so, and it's in the, it's in the double digit millions. Okay.

Hi, it's Justin Thanks for the question.

Yes.

We don't charge that on a <unk> basis.

We charge it more as a license fee.

It's a long term relationship with anthem.

<unk>.

So and it's in the it's in the double digit millions.

Okay.

And then just my last question here is on the provider side. It sounds like you've got very good selling momentum there.

Speaker 5: My last question here is on the provider side, it sounds like you've got very good selling momentum there. Any thoughts on what impact the surge from the Delta variant had? It doesn't sound like it slowed down the medical record retrieval business.

Any any thoughts on what impact the surge from the Delta variant had it doesn't sound like it's slowed down the medical record retrieval business.

Speaker 5: Just any thoughts or color there and are you still like 95% booked and you talked about the 4,000 sites that you could in sell into? Longer term just any update or color there will be.

Any thoughts or color there and are you still like 95% booked and you talked about the 4000 sites that you could himself into longer term, just any update or color there would be helpful.

We are that division is performing very well and as you saw there is sequential growth in that business from Q1 to Q2 to Q3, we expect more in Q4, we're going to do a record number of record retrieval. This year, our kpis there is $5 million and.

Speaker 2: We are that that divisions performing very well and as you saw, there's there's sequential growth in that business from Q1 to Q2 to Q3. We expect more in Q4. We're going to do a record number of record retrievals this year. Our KPI there is 5M and we're tracking to hit that. So very pleased with the performance of the provider division.

And we're tracking to hit that so very pleased with the performance of the provider Division.

Speaker 1: You know, I say, David, what's nice about the Division II is we're starting to see the cross selling that we had hoped for.

Hey, David.

It's about the division too is we're starting to see the cross selling that we had hoped for so I think we had mentioned in the past Emory healthcare for example, which is 20000 plus employees will come onto the platform in January at the enterprise client, whilst our 20 plus thousand hospital employees will come onto the platform.

Speaker 1: So I think we had mentioned in the past Emory Healthcare, for example, which is 20,000 plus employees, will come onto the platform in January as an enterprise client. WellSTAR 20 plus thousand hospital employees will come onto the platform as an enterprise client. And so we have got these 6,000 clients out there in which we're retrieving 5 million medical records. And our new sales force is seeing that as like a really rich opportunity, as often these health systems are the largest employers in their city..

As an enterprise client and so we've got these 6000 clients out there and which will retrieve and five 5 million Medical records and our new sales force sustain that is like a really rich opportunity as often these health systems are the largest employers in their city.

Speaker 1: to come onto the Sharecare platform as enterprise clients in addition to ROI services.

To come onto the share care platform as enterprise clients. In addition to ROI services.

Speaker 5: That's great. And then what sort of traction have you seen around health security and vaccine related wins? I know you've developed or are developing a vaccine passport that can be used in stadiums, restaurants, hotels. And what sort of lift are you seeing there, if any?

That's great and then what sort of traction have you seen around health security and vaccine related wins I know you have developed or are developing a vaccine passport that can be used in stadiums restaurants hotels.

Sort of lift are you seeing there if any.

Speaker 1: Well, I think we positioned ourselves really well. You know, we reacted quickly to the pandemic and built a tech-enabled solution to help the world reopen. That product has been adopted in over 80 countries in the hotel business with a few thousand clients. I saw last night we did Sir Pabst 2000 restaurant.

Well I think I think we've positioned ourselves really well.

Reacted quickly to the pandemic and built a tech enabled solution.

To help the world Reopens.

That product has been adopted in over 80 countries in the hotel business with a few thousand clients I saw last night, we just surpassed 2000 restaurants.

Speaker 1: that are shared care verified. We've got amazing relationships in the arena space and continue to bring on new arenas.

That our share care verified we've got amazing relationships in the arena space and continue to bring on new arenas.

Speaker 1: We have a really great health path that's easy to implement, and you've seen the Biden mandate.

We have a really great help path, that's easy to implement and you've seen the biden mandate around employers with 100, plus employees and we think we're really well positioned to be able to use our system as that mandate rolls out. We just made our first cell under that value proposition last week.

Speaker 1: around employers with 100 plus employees and we think we're really well positioned to be able to use our system as that mandate rolls out. We just made our first sell.

Speaker 1: under that value proposition last week. And we're in conversations with big tech companies, global companies, government. And so we think that this is here to stay. It's like I've said in the past, health securities, like cyber security.

And we're in conversations with Big Tech companies Global companies government and.

And so we think that this is here to stay it's like I've said in the past <unk> securities like cyber security.

Speaker 1: And we're real well positioned to be able to deliver that to our clients and build our brand. Great. Thanks. Congrats on a good quarter. I'll hop back in the queue. Okay. Thanks, David.

And we're really well positioned to be able to deliver that to our clients.

And build our brand.

Great. Thanks, Congrats on a good quarter I'll hop back in the queue.

Thanks, David.

Thank you as a reminder, task of <unk> at this time. Please press Star then one.

Our next question comes from Richard close with Canaccord Genuity. Your line is open.

Speaker 6: Great, a lot of my questions have been asked and answered here, but just maybe going a little bit deeper on Sydney and Anthem. So when Anthem gives an update like in their most recent call that they have more than 50 national accounts signed up for Sydney preferred.

Greg.

Lot of my questions have been.

Asked and answered here, but just maybe going.

Little bit deeper on Sydney and anthem, so when anthem Gibson.

In their most recent call.

They have more than 50 national accounts signed up for Sydney preferred.

Speaker 6: It represents like 900,000 commercial members. Just to be clear, you know, as they grow that, it doesn't necessarily positively impact Sharecare because you have that, you know, guaranteed minimum contract with Anthem with respect to from Legacy.ai.

Presents like 900000 commercial members just to be clear.

As they grow that it doesn't necessarily positively impact share care, because you have that guaranteed minimum contract with anthem with respect from legacy <unk>.

Speaker 1: Well, you know, we think that we're a good strategic partner with Anthem, and as they continue to deploy.

Well, we think that we are a good strategic partner with anthem and as they continue to deploy.

Speaker 1: more and more digital solutions and make digital more and more of a priority, which they're obviously doing, that sharecare is gonna have a major role in that. Whether it's artificial intelligence services that will be providing throughout their platforms through the DACAI or other solutions that sharecare has that can be sold through sharecare or sold through sharecare. I mean, sold through Sydney or sold through sharecare plus.

More and more digital solutions and digital more and more of a priority.

Which which they're.

Obviously doing that share care is going to have a major role in that whether it's the artificial intelligence services that we'll be providing throughout their platforms through the Doc AI or other solutions that share care has that can be solved through share care sold through share care I mean sell through Sydney or so through share care plus.

Speaker 1: But we're very engaged with them and what their needs are. And have a lot of capabilities across both Sydney and Cherkhaar Plus that we think will be valuable to their members as well as help them win new business as well.

But we're very engaged.

With with them and what their needs are and have a lot of capabilities across both Sydney and share care plus that we think will be valuable to their members as well as help them win new business as well.

Yes.

Speaker 6: Yeah, no, I understand that. I'm just...

No I understand.

Trying to gauge like should we be looking at like anthem as a read through.

Speaker 6: trying to gauge, should we be looking at Anthem as a read-through of potential upside to you guys on a quarterly basis.

Potential upside to you guys on a quarterly basis.

If we track the number of accounts that there.

Speaker 6: you know, if we track the number of accounts that they're, you know, that they're reporting or the number of members.

They're reporting or the number of members.

Speaker 6: um you know because you have that minimum guaranteed contract over a period of time it doesn't

Because you have that minimum guaranteed contract over a period of time it doesn't.

Speaker 6: It doesn't necessarily mean it's incremental to you guys until you potentially meet that minimum.

It doesn't necessarily mean, it's incremental to you guys until you.

Potentially meet that minimum right.

Well they use that that minimum commitment for us to provide AI to their platform.

Speaker 1: Well, they use that minimum commitment for us to provide AI to their platform. And it's not live dependent. It's embedded into the core platform. And then we're included often in many of those RFPs. And so we've been writing sharecare services into many of those AMFM RFPs as they've gone to market, especially with national accounts talking about sharecare plus. And so that's where, programs, yes, that's correct. That's where we are. And it's where, our

And it's not lives dependent that's embedded into the core platform and then were and then were included often and many of those rfps and so we've been writing share care services into many of those anthem rfps that they've gone to market.

Especially with national accounts talking about share care plus.

And so okay. So that's where that's where we expect the lift.

Speaker 6: Okay, that's helpful. Thank you.

Okay. That's helpful. Thank you.

Speaker 5: With respect to the competitive market, obviously there's a lot of

With respect to the competitive market obviously there is.

A lot of talk on navigation and advocacy and all that.

Speaker 6: talk on navigation and advocacy and all that. How are you guys thinking about the

How are you guys thinking about the.

Speaker 6: you know, competitive landscape. Obviously you have a great partner in Anthem and, you know, put in the door there with that partnership. But overall, how are you thinking about the competitive environment, you know, call it navigation advocacy?

Competitive landscape, obviously, you have a great partner and Amp.

And the door there.

With that partnership but.

Overall, how are you thinking about the competitive environment.

Carla navigation advocacy.

Speaker 1: So I think we think of it holistically and that we're really well positioned because we are a platform before platforms are cool.

So I think we think of it holistically.

And that we're really well positioned because we are a platform before platforms or cool.

Speaker 1: And we think about these four pillars that we've assembled at Sharecare that are valuable to Anthem, but they're also valuable to our other Blues clients, to our Medicaid partners, our Medicare Advantage partners, our self-insured employers. And it's, you know, how do you do digital navigation? So think of that like real age plus doc AI to predict cost of care and outcomes.

We think about these four pillars that we've assembled that share care.

That are valuable to anthem, but theyre also valuable to our other blues clients to our Medicaid partners, our Medicare advantage partners are self insured employers.

How do you do digital navigation, so think of that like real age plus Doc AI to predict cost of care and outcomes and then how do we have how do we have a really strong offering again across three other pillars of intervention.

Speaker 1: And then how do we have a really strong offering, again, across three other pillars of intervention? And so the second pillar and the first of intervention is digital therapeutics.

So the second pillar and the first of intervention is digital therapeutics, so because we had such high engagement.

Speaker 1: So because we have such high engagement, we get higher utilization of the right digital therapeutic at the right time and solve a big pain point for our clients that are trying to aggregate all these point solutions.

We get higher utilization of the right digital therapeutic at the right time and solve a big pain point for our clients are trying to aggregate all of these point solutions.

Speaker 1: The third is this advocacy, you know, where we're building out this Sharecare Plus, and so we'll kind of be this one-stop shop across multi-payer opportunities. And then lastly, this last mile of healthcare, you know, being able to have 450,000 caregivers that we can deploy across the country. And we're starting to really think of those 450,000 tech-enabled caregivers as advocates themselves.

Third is advocacy.

Where we're building out the share care, plus and so what kind of be this one stop shop.

Across multi payer opportunities and then lastly, the last mile of healthcare being able to have 450000 caregivers that we can deploy across the country and we're starting to really think of those 450000 tech enabled caregivers as advocates themselves.

Speaker 1: And so when you take that, we've had 50 million people take our HRA and engage in our content. We've got the most robust digital therapeutic marketplace. We've got a spot on advocacy solution that we're developing hand in hand with one of the largest payers. So we're getting it right the first time. And then we've got this last mile covered.

So when you take that we've had 50 million people take our HRA and engaged in our content. We've got the most robust digital therapeutic marketplace. We've got a spot on advocacy solution that we're developing hand in hand in hand, with one of the largest payers. So we're getting it right. The first time and then we've got this last mile covered.

Speaker 1: All on one platform where the data is interoperable. It's what we believe to be user-friendly and we're seeing that. We're getting wins across the board. It's not just amperes.

All on one platform, where the data is interoperable, it's what we believe to be user friendly.

And we're seeing that we're getting wins across the board, it's not just anthem.

Speaker 1: And so we're super excited. And then you take into account that we're also have a $100 million provider business and a big consumer business. And those three all work together and one ecosystem on one platform. We believe that we're this category of one company that we talked about in our road show.

And so we're super excited in and then you take into account that we're also have a $100 million provider business and a big consumer business and those three all work together in one ecosystem on one platform.

We believe that where this category of one company that we talked about in our roadshow.

Speaker 6: great helpful there and and then on the consumer side maybe they dive in there a little bit.

Great helpful. There and then on the consumer side, maybe the Guy had been there.

<unk>.

Obviously, we're coming up on 2022.

Speaker 5: Obviously, we're coming up on 2022. Justin, you mentioned fourth quarter is usually the strongest quarter there. I think you said 30% of the year comes in the fourth quarter. Based on your discussions with clients, how are they thinking about

Justin you mentioned fourth quarter is usually the strongest quarter there.

Thank you said, 30%.

The year comes in the fourth quarter.

Based on your discussions with clients.

How are they thinking about.

Speaker 6: you know, the shift from, you know, legacy marketing and, you know, channels versus the digital and any thoughts regarding, you know, I know it's early for 2022 guidance and all that, but any thoughts in terms of just like how those budgets, your customers and budgets are looking towards, you know, mixed shift towards digital?

The shift from legacy marketing.

Channels versus the digital and any thoughts.

Regarding.

No. It's early for 2022 guidance and all that but.

Any thoughts in terms of just like how those budgets.

Your customers are budgets are looking towards your mix shift towards digital.

Yes.

Speaker 1: Hi, this is Jeff. Maybe Justin will start that. Our consumer division is really strong. We have a tremendous leader, a great team. We have a lot of experience in the space, going all the way back to WebMD in the late 90s. We've been working in digital health with pharma for a long time. This was a big year for pharma, kind of a bounce back from COVID. But I think what pharma and life science companies appreciate about Sharecare is our first party database.

Hi, This is Jeff maybe I'll, just and I'll start that is.

The consumer division is really strong.

We have a tremendous leader a great team, we have a lot of experience in this space going all the way back to Webmd.

<unk>, we've been working and digital health with pharma for a long time. This was a big year for pharma kind of a bounce back from.

From Covid.

But I think what pharma and life science companies appreciate about share cares our first party database.

Speaker 1: We have 108 million people in our first party database. I think we have like 70 million emails as an example. And they really appreciate our high quality content, our ability to produce high quality content. I think we have a library of over 40,000 videos, for example, and be able to perform for them because of that quality content and the quality of our database. So they keep coming back to us for new campaigns.

We have 108 million people on our first party database like we have like 70 million emails as an example, and they really appreciate our high quality content, our ability to produce high quality content. I think we have a library of over 40000 videos for example, and be able to perform for them because of that quality content and the quality of our database. So they keep coming back to.

For us for new campaigns. So we expect this as this division is going to continue to grow for us and it underwrites all the content that we produce for enterprise, which really differentiates us from our peer set as the volume of content that we can use to personalize the experience for our users.

Speaker 1: So we expect this division is going to continue to grow for us and it underwrites all the content that we produce for Enterprise, which really differentiates us from our peer set. Just the volume of content that we can use to personalize the experience for our

Speaker 1: I'd also like to note that we're real excited about the capability that we picked up with Doc. AI called Smartomics, which is their decentralized clinical trial product. We put out a press release last week about our first client on their UCB. But if you take all the relationships that we have in pharma and life sciences...

Also like to note that we're really excited about the capability that we picked up with Doc AI called Smart Omics, which is they're decentralized clinical trial product, we put out a press release last week about our first client on their UCB, but if you take all the relationships that we have in pharma and life Sciences that we've earned over the last.

Speaker 1: that we've earned over the last two decades, performing against their campaigns. And now we bring them this decentralized clinical trial product that's state of the art and introduce them to Dake.

Two decades performing against their campaigns and now we bring them. This decentralized clinical trial product that's state of the art and introduce them to Doc AI, We think that this has massive potential.

Speaker 1: We think that this has massive potential for us long term and it's been really well received by our clients and we think it's going to be a big contributor. You'll start to see it next year, but in 2023, we think it's going to really take off.

For us long term and it's been really well received.

By our clients and we think it's going to be a big contributor you'll start to see it next year, but in 2023, we think it's going to really take off.

Speaker 6: Okay, a final question on consumer. You know, a lot of noise on the marketing and advertising side with changes in securities, you know, cookies, whatnot, Apple's changes. Does anything like that impact your guys' share of care with respect to that situation?

Okay final question on consumer.

A lot of noise.

On the marketing and advertising side.

Changes in securities.

Cookies whatnot.

<unk> changes.

Does anything like that impact your guy.

Sure care.

With respect to.

That situation.

Speaker 1: It's a great question and it's a great opportunity for Sharecare because of that first party database that I referenced. And so cookies would go away tomorrow. It's irrelevant to how we deliver our campaign.

Great question, and it's a great opportunity for share care.

That first party database that I referenced and so cookies would go away tomorrow, it's irrelevant to how we deliver our campaigns.

Speaker 5: Okay, great. And if I could flip a couple in on the provider side, just can you talk a little bit more about what you're seeing on payment integrity and the value-based care efforts on those two fronts would be helpful.

Okay great.

If I could slip.

On the provider side.

Can you talk a little bit more about.

What youre seeing on payment integrity and.

And.

<unk> based care.

Efforts on that.

Those two fronts would be helpful.

Sure Yes.

Speaker 1: Yeah, so, you know, obviously we're highly focused on enterprise, but, you know, we see our provider unit as a great growth opportunity as well. So how do we take this 100 million dollar unit and grow it?

Yes. So obviously, we are highly focused on enterprise, but we see our provider unit is a great growth opportunity as well so how do we take this $100 million unit and grow it.

Speaker 1: One is we have 6,000 clients, and so we can cross-sell enterprise and other things to them. We remain focused on this idea of a shared care enabled clinician.

One is is we have 6000 clients and so we can cross sell enterprise and other things to them, but we remain focused on this idea of a share care enabled clinician and so theyre thinking there is as value based care takes off that the providers and health systems are going to need the same types of platforms at the <unk>.

Speaker 1: And so the thinking there is, as value-based care takes off, that the providers and health systems are going to need the same types of platforms that the payers are buying from us to take on.

Payers are buying from us to take on risk.

Speaker 1: And so we have this obviously and we've repackaged it for health systems.

And so so we have this obviously and we've repackaged it for health systems, and then we made two acquisitions to complement that strategy.

Speaker 1: And then we made two acquisitions to complement that strategy. One was White Hat, which is on the payment integrity side. And we're starting to see some real traction there as well. Basically being able to identify abnormalities and then be able to confirm it within the Sharecare platform. I'll let Justin talk to the revenue there and then I'll come back to the value base. Yeah, and Richard. Hey, Justin. As we talked about, we expected

One was white hat, which is on the payment integrity side, and we're starting to see some real traction there as well.

Basically being able to identify abnormalities and then be able to confirm it within the share care platform and I'll, let Justin talked to the revenue there and then I'll come back to the value base.

And Richard Heyse Justin.

As we've talked about we expected value based care and payment integrity to be a contributor in the second half of 2021, and that's happened, which Jeff outlaid in his opening remarks.

Speaker 2: Value based care payment integrity to be a contributor in the 2nd, half of 2021 and that's happened, which Jeff outlayed and his opening remarks is. You know, we've were executing on this large value based contract and also a payment integrity contract and so we're set up now not only to have nice contribution from them in Q4, but also good momentum as we go into 2022.

We're executing on this large.

<unk> based contract and also our payment integrity contract and so we're set up now not only to have a nice contribution from them in Q4, but also good momentum as we go into 2022.

And then on the value based care side, I mentioned, we will be launching that with customers in Q1.

Speaker 1: Yeah, then on the value-based care side, I mentioned we will be launching that with customers in Q1 of 2022. So that is resonating with our client. It's like, bring me the same platform that the payers have as we go into value-based care. Great, thank you very much. Congratulations.

2022, so that that is resonating with our client like bring me the same platform that the payers have as we go into value based care.

Great. Thank you very much congratulations.

Thank you.

Our next comes from Ben Sherlund with Cantor Fitzgerald. Your line is open.

Speaker 6: Hey guys, thanks for taking my question. I just wanted to follow up on the consumer segment. It seems like you guys have a very unique signal for advertisers relative to some of the other media platforms. Can you help me frame the opportunity?

Hey, guys. Thanks for taking my question I just wanted to follow up on the consumer segment. It seems like you guys have a very unique signal for advertisers relative to some of the other media platforms can you help me frame the opportunity.

Speaker 6: You disclosed 108 million first party users. Is there any way you can provide a bit of color on how many of these users are actively engaged with the platform?

You disclosed $108 million first party users is is there any way you could provide a bit of color on how many of these users are actively engaged with the platform at a 108 million users that would suggest our pool.

Speaker 6: At 108 million users, that would suggest our poo of roughly 65 cents in 2021.

Roughly 65, and 2021, which to me shows.

Speaker 6: which to me says, you know, you're in the very early stages of monetization here.

We're in the very early stages of monetization year, So moving forward as a major driver of monetization expansion increasing engagement from these users or maybe growing the advertiser base any color there would be helpful. Thanks.

Speaker 6: So moving forward, is a major driver of monetization expansion increasing the engagement from these users or maybe growing the advertiser base? Any color there would be helpful. Thanks.

Speaker 1: Yeah, I think it's renewing brands, which we have a high renewal rate. It's adding new brands to the roster often from existing clients that are launching new brands. But I think we can fulfill, we have enough capacity to fulfill these campaigns. And it's coming up with new products.

Yes, I think I think it's.

Renewing brands, which we have a high renewal rate.

It's adding new brands.

As to the roster often from existing clients that are launching new brands.

From a.

I think we can fulfill we have enough capacity fulfill these campaigns and it's coming up with new products.

Speaker 1: you know which we've done a really good job of you know of continuing to kind of innovate in that space like we have a product called Share Care Reality Labs where we build these really immersive kind of the Google Maps of the human body that has been really well adopted and I mentioned the smartomics product but I think we've got the database the database continues to grow we got excellent leadership a great team lots of history in the space

Which we've done a really good job of contain.

Continuing to kind of innovate in that space like we have a product called sure care reality labs, where we build these really immersive kind of a Google maps of the human body that hasnt been really well adopted and I mentioned, the smart omics product, but I think we've got the database. The database continues to grow we've got excellent leadership, a great team lots of history in this space.

Speaker 1: I think we won 17 awards recently for the quality of our content and our ability to innovate and deliver for our clients.

We win I think we won 17 awards recently for the quality of our content and our ability to innovate and deliver for our clients.

Speaker 1: And so it's just a matter of keeping what we've got, bringing on new logos, adding more brands and continuing to introduce new products. Okay, great. Next look over guys.

And so it's just a matter of keeping what we've got.

Bringing on new logos, adding more brands and continuing to introduce new products.

Okay, great. Thanks for the color guys.

Sure. Thank you.

And our next question is a follow up from Dave Martin with <unk>. Your line is open.

Speaker 7: Can you talk a little bit more about the virtual clinical trial activity that you have going on? Maybe describe in detail what you're doing, please. Are you actually helping to conduct the clinical trial and recruit patients into those trials based on the data that you have on those members?

Can you talk a little bit more about the virtual clinical trial activity that you have going on.

Maybe describe in detail what Youre doing please are you actually helping to conduct a clinical trial and recruit patients into those trials based on data that you have on those members. Thanks.

Speaker 1: Yeah, so this is one of Doc AI's kind of premise when we bought them was this idea of how to go from research to care, believing that the smartphone could be an amazing data collection platform within itself. And so how could you build a platform that could collect data from the smartphone that had the artificial intelligence built in that could start to make predictions faster that could help research.

Yeah. So so this is.

One of <unk> kind of premise when we bought them was this idea of how to go from research to care.

Believing that the smartphone.

Could be an amazing data collection platform within itself and so how could you build a platform that could collect data from the smartphone that have the artificial intelligence built in that can start to make predictions.

Foster that could help researchers and.

Speaker 1: And so this was, I mean, this is kind of what one of the core foundations of DocAI was research to care using AI research for researchers.

And so this was I mean, this is kind of what the one of the core foundations a Doc AI This research to care using AI.

Research for researchers and so we've taken that product that they've continued to nurture and we've introduced that to our consumer group and said how do you guys have all these relationships with all of these pharma brands and and we have all these users and we've got this great technology and how can we create our version of operation Warped speed. So the same way the vaccine Kindle.

Speaker 1: And so we've taken that product that they've continued to nurture and we've introduced that to our consumer group and said, hey, you guys have all these relationships with all these pharma brands and we have all these users and we've got this great technology and how could we create our version of Operation Warp Speed?

Speaker 1: So the same way the vaccine came to life in a year, how can we use our technology and our users in our relationships so that we can accelerate discovery?

Life in a year.

How can we use our technology and our users and our relationships. So that we can accelerate discovery.

Speaker 1: And I think we're really well positioned, you know, to be able to do that. And, you know, we announced it last week. We're on stage and Boston this week. Would you see me talking about the results that we've seen? And we're seeing a lot of demand for conversations and business development opportunities that we, you know, I think to give us a great outlook for the future of decentralized clinical trials and the role that share care compliant it. Thank you.

And I think I think what we're really well positioned to be able to do that and.

We announced that last week, we were on stage in Boston This week with UCB talking about the results that we've seen in and we're seeing a lot of demand for conversations and business development opportunities that we have.

Give us a great outlook for the future of.

Bob decentralized clinical trials enrollment sure care compliant it.

Great. Thanks very much.

Thank you David.

Our next follow up comes from Eric Percher with Nephron Research. Your line is open.

Speaker 4: Thank you. I wanted to follow up a bit on your digital therapeutic commentary. It's good to hear about the new program. What tools are getting the most interest, and particularly for unwinding, where do you think there's pent-up demand?

Thank you I wanted to follow up a bit on your digital therapeutic commentary, it's good to hear about the new program.

Tools are getting the most interest and particularly for unwinding, where do you think there is pent up demand.

Well I think I think for unwinding I think just the whole behavioral health space is on fire within our clients.

Speaker 1: Well, I think for unwinding, I think that just the whole behavioral health space is on fire within our clients and

Speaker 1: And we've taken kind of an interesting angle on this. So one is when we acquired mind sciences during the pandemic.

And we've taken that kind of an interesting angle on this so one is when we acquired mine sciences. During the pandemic, what we liked about <unk> Sciences that was it was evidenced based they are down $13 million in research with NIH, and Yale and Brown and others and it was all based on mindfulness. So what relationships do you have with food.

Speaker 1: What we liked about mine scientists is that it was evidence-based. They had done $13 million in research with NIH and Yale and Brown and others. And it was all based on mindfulness. So, you know, what relationships do you have with food? You know, so they could help you lose weight or what relationship?

So that could help you lose weight or what relationship.

Speaker 1: you know, do you have with, you know, smoking and other things.

Do you have with <unk>.

Smoking and other things and what we found in our research is that financial stress.

Speaker 1: What we found in our research is that financial stress...

Speaker 1: It is a really big issue and I've said in the past like financial stress is the next diabetes.

It's a really big issue and I've said in the past like financial stresses. The next diabetes that people are worried about losing their jobs and retirement and all these different things and so we went back to the team at <unk> Sciences, and we said look you have got this amazing evidenced based mindfulness approach all.

Speaker 1: that people are worried about losing their jobs and retirement and all these different things. So we went back to the team at mine sciences and we said, look, you've got this amazing evidence based mindfulness approach. All the surveys and resources that we're seeing is that people are under tremendous financial stress. How can we build a solution that we could bring to enterprise clients and consumers that could help with that? And so internally, we developed unwinding.

All the surveys and research that we're seeing is that people are under tremendous financial stress.

How can we build a solution that we could bring to our enterprise clients and consumers that could help with that and so internally we developed unwinding.

Speaker 1: off of that research and our salespeople are actively selling that for 2022. So we're going back to all our clients right now and trying to get upsell that so that they can make it available to their members in 2022. And it's really resonating the approach of mindfulness as well as the recognizing the issue of financial stress. And then the opportunity is to sell it into our current base because it's like turning on Wi-Fi. It's integrated already into the platform. We just hit a switch and an active our client.

Off of that research and.

And our salespeople are actively selling that for 2022, so we're going back to all our clients right now and trying to get up sell that so that they can make it available to their members in 2022 and <unk>.

It's really resonating in the approach of mindfulness as well as the recognizing the issue of financial stress and then the opportunity is to sell it into our current base because it's like turning on Wi Fi integrated already under the platform. We just hit a switch and it's active for our clients and it's just getting it on contract with them and then getting those members enrolled into the platform.

Speaker 1: and it's just getting it on contract with them and getting those members enrolled into the platform. So we see that as a huge opportunity. Diabetes prevention is always huge. There's 88 million people that are pre-diabetic.

But we see that as a huge opportunity diabetes prevention is always huge there's 88 million people that are pre diabetic.

Speaker 1: And so, you know, we have a solution for that and that continues to grow. And then all your staples people are always interested in is, you know, trying to lose weight and stop smoking, etc.

And so we have a solution for that and that continues to grow and then and then all your staples people are always interested in is trying to lose weight and stop smoking et cetera.

Speaker 2: So it's a, you know, per our conversations there. It gets, you know, we don't break them out individually, but it is in line with what you would have expected, you know, based on your research is, you know, diabetes is significant, pre-divide-beauties.

So it's a per our.

<unk>.

We don't break them out individually, but it is in line with what you would've expected.

Based on your research has diabetes as significant pre diabetes.

Speaker 2: as a big one for us. And now we're expanding in new areas, like we talked about when it comes to 2022, in areas like sleep, hypertension and others. So it's really the major conditions that you would expect.

The big one for us and now we're expanding into new areas like we talked about when it comes to 2022 and areas like sleep hypertension and other so.

It's really the major conditions that you would expect.

Speaker 4: Thanks for that. It sounds like something we'll be following up in the next quarter or two. And Justin, when you roll out a new program and we think about Sharecare's approach to go to market, should we think of these as incremental PMPM or would you ever have a digital therapeutic that would be covered under medical or pharmaceutical...

Thanks for that it sounds like something we will be following up in the next quarter or two and Justin when you roll out a new program and we think about share cares approach to go to market should we think of these as incremental Pnp M or would you ever have digital therapeutic that would be covered under medical or.

Pharmacy benefit.

And ours I would I would look at it incremental <unk>.

Speaker 2: In ours, I would look at it as incremental PMPM.

Speaker 2: But it could expand to the models that you're, you know, we're looking at that as well. But in the short term, think of incremental PMPM.

But it could it could expand to the models that you're.

We're looking at that as well, but in the short term think of incremental <unk>.

Speaker 4: Gotcha. And then last, you mentioned earlier the opportunity outside of enterprise, if this is utilized by a physician, who pays for it in that situation? Are you thinking most of it would be an at-risk provider who'd be willing to take that on themselves or a consumer or where's it come from?

Got you and then last you mentioned earlier the opportunity outside of enterprise. It is utilized by a physician who pays for it in that situation. What are you thinking mostly it would be an at risk provider, who would be willing to take that on themselves.

Consumer or where does it come from.

Yes, I think we're.

Speaker 1: Yeah, I think we're pursuing kind of all forms of reimbursement. So at REST, direct to consumer, we're looking at all kinds of different models. For the therapeutic. Thanks, Emma. Thanks, Emma.

We are pursuing kind of all forms of reimbursement.

At risk direct to consumer.

We're looking at all kinds of different models.

For the therapeutics. Thanks, so much.

Sure.

So much.

Currently.

Thank you and I'm currently showing no questions I turn the call back over to Jeff Arnold for closing remarks.

Great. Thank you well, we appreciate everybody, calling in today and and learning about our Q3 numbers, we couldnt be more excited about hitting our revenue target and our adjusted EBITDA.

Speaker 1: Great, thank you. Well, we appreciate everybody calling in today and learning about our two, three numbers. We couldn't be more excited about hitting our revenue target and our jump city, but we feel like we're gonna end the year really strong and going into next year at nearly a $500 million run rate and look forward to continuing to update you on our progress and take care. Thank you. Thank you.

Feel like we're going to end the year really strong and going into next year at nearly $500 million run rate and.

And look forward to continuing to update you on our progress and.

Take care. Thank you.

This concludes today's conference call. Thank you for participating you may now.

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Speaker 8: ["Pomp and Circumstance"]

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