Q2 2022 Sharecare Inc Earnings Call
Okay.
Good day and welcome to the Shake care second quarter 2022 earnings call. All participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing the star Keith Valentine zero.
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Please note that this being recorded I would now like to turn the conference over to Evan Smith Senior Vice President of Finance and Investor Relations. Please go ahead.
Thank you good morning, and welcome to share Care's second quarter fiscal 2022 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. Justice Herero, President and Chief Financial Officer, today's call is being recorded.
Archive of the recording will be available later today on the Investor Relations section of our <unk>.
Website 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 provision of the private Securities Litigation Reform Act of 1995, which includes statements regarding potential strategic reviews.
And our guidance.
Got it.
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 will occur. After this call descriptions of some of the factors that could cause actual results to differ materially from these forward looking.
<unk> are discussed in more detail in our filings with the SEC, including the risk factors section of our Form 10-K for the year ended December 31 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 rec.
A reconciliation of historical non-GAAP financial measures can be found in the press release that is posted on the company's website.
I would now like to hand, the conference call over to Mr. Jeff Arnold Jeff. Please go ahead.
Thank you Evan.
Thank you all for joining us this morning.
Our second quarter results reflect the continued execution of our strategy with growth across all three channels, we delivered revenue and adjusted EBITDA above our guidance ranges, which reflect strong recurring revenue as well as benefiting from Upselling and cross selling within and across channels.
We are continuing to see both RFP pipeline build sequentially as well as year over year supporting our continued growth in 2023 and into 2024.
Our expanded sales team is delivering higher productivity driving new direct opportunities.
Also seeing growth from both our channel partners and brokers I'll also reiterate from our last call. We continue to have strong client retention.
Limited client concentration and have a highly diversified business across all three channels. Additionally.
Additionally, we announced today that we've signed a memorandum of understanding for a multi year strategic partnership with Carolina.
The health care service subsidiary of elements help to integrate share care classes capabilities and the Carolina Health Guide services that currently support hundreds of thousands of members, which will help drive additional and significant scale of our solution.
While our two 'twenty, while our 2023 is shaping up to be a strong year and second half of 2022 is experiencing softness due to the timing of the start date of the Carolina partnership which was originally planned to start in the third quarter, Justin I'll provide more detail about this in a moment.
While we started we believe in our long term strategy for our business and the underlying value of the combined solutions across our three channels for our customers and consumers. We have initiated a strategic review of alternatives that had been presented to us from our non enterprise segments. The board and management believe that this review coupled wearing.
Ongoing focus on accelerating our strategy and cost initiatives will create enhanced value for all stakeholders, including our customers consumers employees and investors.
Now, let me move on to the second quarter performance.
In the second quarter, we delivered revenue of $103 $8 million, 5% ahead of the prior year and positive adjusted EBITDA of $2 1 million, while continuing to invest in sales and marketing to support accelerated growth in 2023.
With $211 million in cash on our balance sheet to support growth no debt and positive trends across all three channels. We remain in a strong position to execute on both our organic and inorganic growth objectives.
In enterprise, we are seeing continued momentum both in the size and number of new pipeline opportunities from 'twenty to 'twenty, three and continued strength in RFP activity, our digital first approach offering seamless and data driven experiences resonating with existing and potential new customers.
Customers are increasingly looking for a platform solution that can drive consumer activation engagement and satisfaction by simplifying the patient journey to not only identify gaps in care, but also to deliver the comprehensive solutions to address gap closures, including improved wellness and preventative screenings.
These management with access to a digital therapeutics as well as integrated access to virtual primary care and tech enabled home care.
In addition, as our customers continue to look for ways to address the rising cost of health care, while increasing their commitment to their members our employees. Our digital first platform can help them lower their cost of administration, while enhancing the experience and outcomes for their respected populations.
Have over 11 million eligible lives on the platform with additional growth expected as we lost share care plus later this year.
In addition, with our multi year strategic partnership with Carolina, we will be able to add to the scale and revenue already in place for sure care class for 2023 to our current contracts and robust pipeline.
We continue to see positive trends from our home health business care lengths, which is delivering strong performance ahead of our initial expectations by expanding within its customer base as well as further diversifying its business with new payer wins and the expansion into the employer market.
Let me give you a quick example of the benefit Carolina Leathers.
Working with an ACO of a leading hospital system care lengths rolled out a transitional care program.
Just on patients discharged from a hospital or Smith within seven days.
The program provided in home support, including managing the first visit and an average of four in home visits for assistance with daily activities and Adl's as well as transportation to and from medical visits it delivered a 19% reduction in Readmissions for this transitional care program after two years.
Data is very impressive and highlights the success of our program to reduce avoidable and costly readmissions.
In summary, because of our new wins and strategic partnerships and continued innovation, we remain confident or increased momentum in enterprise in fiscal 2023.
And provider, we continue to see strong growth in our record retrieval business with June being a record March driven by increased penetration of existing client. The addition of new client sites as well as continued strength in auto volumes for risk adjustment and hit us as we expand our presence with payors.
Adding hundreds of new sites in the quarter, we remain on track to achieve our 6 million Medical records retrieved.
Target for the day for the year.
We also continue to build momentum and a record retrieval pipeline with positive underlying growth trends, including a solid increase in the average deal size and a more than 20% sequential increase and a number of opportunities as we expand our direct and partner driven marketing activities and across an increased number of use cases, we discussed last quarter.
Underlying demand for the business remains strong.
Further strengthen the business and as I mentioned earlier in my remarks, we continue to implement cost initiatives to improve margins.
In life Sciences, we continue to grow with our top 20 pharma clients and brands as well as some new opportunities for our digital patient engagement solutions for leading pharmaceutical brands.
We continue to build new pipeline opportunities and maintain solid client retention, we now anticipate lower growth in the second half of the year.
Against slowdown in pharmacy E T see marketing spend has created a headwind for our growth rate, which is being driven by individual brand dynamics, including patent exploration and launch timing as well as macro economic factors that said, we remain confident that the strength of our content first person data.
A personalized omnichannel approach continues to drive program execution and competitive advantage.
We've had several strategic decisions in fiscal 'twenty, two to streamline and enhance new solutions like Czech Air Force and believe these decisions have strengthened our platform and deepened our relationship with strategic partners, which will enable us to drive more sustainable profitable growth as we move into 2023 and forward in.
In 2022, we have already seen the benefits of our efforts with increased momentum in our pipeline at four to five times, where it was in the prior year with new commitments in place for 2023.
Our focus remains on selling larger engagements, creating more opportunities for cross selling and continuing to invest to deliver more value and product innovation to support our clients.
Now, let me turn the call over to Justin who will review our financial results for the quarter and the fiscal year and share our financial outlook and assumptions for the remainder of fiscal 2022.
Thanks, Jeff and thanks to everyone on the call for your interest in share care.
As Jeff indicated we delivered strong results for the second quarter of 2022 for both revenue and adjusted EBITDA.
I'll walk you through the second quarter results and then discuss our revised outlook and specific cost actions, we are taking to enhance our performance.
Our second quarter revenue grew 5% to $103 8 million from $98 5 million a year ago exceeding our guidance.
Growth in the quarter was positively impacted by year over year increases in eligible lives on the platform and an increased number of records retrieved.
Year over year growth was impacted by our previously disclosed decision to sunset certain businesses, which resulted in a revenue reduction of approximately $11 million over the prior year period.
Adjusted EBITDA for the quarter was $2 1 million from $6 6 million for the prior year exceeding our guidance.
Adjusted EBITA was driven by incremental public company expenses and increased investments in sales force expansion to support growth.
We expect these investments to support our long term growth as we gained greater traction for the share Carrie digital platform.
Our record retrieval business and execute in our life Sciences channel with existing and new customers.
We remain in a strong financial position and in the core with $211 million in cash on our balance sheet and continued to progress towards becoming cash flow breakeven by year end.
As Jeff mentioned, while we continue to have a significant build in our pipeline and RFP.
Kennedy for 'twenty 'twenty, three starch macro economic conditions impacting our life Sciences channel as well as the timing of a large contract start date with carillon.
Sydney area of elements help have impacted our outlook for the second half of the year.
Due to the uncertainty and timing we are withdrawing our previously issued guidance and will no longer be providing financial guidance for fiscal 'twenty to 'twenty two.
While these factors make it difficult to provide guidance in the interim let me provide some color.
With respect to the large payer advocacy contract we're in the process of finalizing the implementation timeline of the Carolina agreement.
Our focus is on a long term partnership which has taken additional time to bring to completion.
In our life Sciences channel, while our underlying business continues to perform.
<unk> slowed down year over year, and DTC spending by the pharma industry has called greater uncertainty in our forecast for the remainder of the year.
Note our recent IQ via study indicated DTC spending by top pharmaceutical companies was down about 32% from the first half of 2021 compared to the FERC half of 2022.
As such with 35% of our channel revenue historically being generated in the fourth quarter, we remain cautious on the level of campaign extensions for the remainder of the year.
And then the provider segment, while year to date, we have continued to see strong performance and a record retrieval business. We're currently seeing the slower rollout of certain payment integrity contracts.
With respect to cost initiatives. These include the streamlining of corporate functions a reduction in our real estate footprint.
Optimization of our provider record retrieval business through automating and offshoring certain functions as.
As well as other initiatives to improve our operations and drive performance as we move into 2023.
In closing, we believe the momentum and opportunities for 'twenty 'twenty three supported by a strong balance sheet will enable us to drive new opportunities for growth with existing and new customers, while enhancing our long term financial performance.
With that we will move to Q&A.
Yeah.
Thank you we will now begin the question and answer session.
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Our first question comes from Craig Hot Hot Chocolate.
Stanley. Please go ahead.
Yes. Thank you outside of the timing issue as Caroline can you just talk about the enterprise more broadly given some of the macro headwinds you know what you're seeing from a sales cycle perspective.
And any sensitivity to price on the enterprise side.
No.
I think you know, we're we feel good about the pipeline that we're building I mean, I think the sales cycles don't feel like they're changing I mean, it's still a long sales cycle, but our pipeline.
Line is robust our Rfps are way ahead of last year.
This is Caroline partnership as a as a massive one for us and we're still staying within that range based on client size of on the on the P. M. P. M. We haven't seen a lot of.
Headwinds there yet.
Price and we've been kind of holding to it.
But yeah, no we feel we feel good about the enterprise business. You think you know if you're thinking about how we're selling we've got our.
Our current sales force, which continues to grow.
We've got the national accounts team and anthem, that's opening up opportunities for US. We've now added Carolina. So you know their book of business and hopefully the ability to grow that.
And sales cycle remains the same and we haven't felt the price pressure.
Got it and if I could just follow up relative to some of the other headwinds you see keno care links looks to be kind of a bright spot here.
Just talk a little bit more in terms of since you purchased that business just some of the momentum you're seeing and how you're thinking about that business as you head into next year.
Yeah, so it'll exceed our revenue expectations for the year.
We have secured more business from our largest payer client for next year.
You know within that business and.
We've won our first blues plan for next year for that for that business.
And our sales force is now trained on it and so it used to just be the care Lynx team that.
Brought their historical business, but our sales people are actively out selling that right now and then in addition to that we're adding new capabilities. So trying to kind of go more up the clinical ladder and I mentioned, a little bit about that.
On the work that we did with one particular ACO.
A minute ago in the script.
So happy clients growing clients, a bigger sales force and new capabilities.
Great. Thank you.
Thank you.
Yeah.
Next question comes from David Larsen with BTG. Please go ahead.
Hi, with respect to the Enterprise Division and.
The sort of previously expected onboarding of lives in the back half of 'twenty two.
This is all events and Caroline is not delay sort of the only change relative to your previous thinking or where there are also other clients that you were going to onboard that have also delayed or is there an elongation sort of across the board. Thanks.
David No. We we signed this Mou says.
Months ago with.
Caroline and have just been working through the transitional services. It's hundreds of people that are involved with that it'll be our largest contract ever.
And it's the date has slipped so and so we're confident it'll hit this year it'll be full year next year, but but it is a large contract.
That's moved moved on us and but the other implementations are happening on schedule.
Okay. So it's only the Carolina elegance.
Contract that has pushed its probably going to purely in the back half of 'twenty two certainly in 'twenty three.
And quite frankly, it's so big and so large and so important and that's what's leading to the delay it's not like there's a cancellation of the contract.
No. It's only the contract negotiation contracts only longer now than it was in the beginning.
It's just a lot of work you know like.
They've got hundreds of health guide that would be will be transitioning.
And to our partnership.
And and Theres, a lot of detail and the implementation work and but.
But it is all of the conversations are all the work is being down around.
You know that transitional services and implementation work.
Okay, and when I listen to <unk> earnings call. This quarter. They talk a lot about their digital health strategy. They talk a lot about value based care and it sounds to me like share care is a key integral part of that and if anything it's such a large deployment, that's maybe what's leading to some delay here.
Not headwinds or the <unk>.
Recession elements of spacing, it's simply the size of the implementation.
Yep.
Hey, David Thanks for the question. This is Justin Yeah, we don't see this as a systemic issue. This is a this is a timing issue around this relationship.
And there is an uncertainty as to exactly when that will come in.
But we are highly confident that that will that relationship will will come to fruition. This year yeah.
That's great. Thank you and then the P. M. P. M range had been like in the $2 range, but I think with the advocacy solution on the share count plus solution you can collect the six Buck plus range is that what we're talking about with this kind of deal and can you just remind me what are the incremental services that you provide and share care plus.
Relative to like the legacy solution.
Yes, so that's correct on the pricing and then if you think about our platform.
Think of it as as wellness and think about it as digital therapeutics and think about it as navigation and care management, so adding the navigation of the care management to what's driving up the $2 P. M. P. M. And then we're maintaining the upsell opportunity of care lungs.
Oh, Okay, great. Thanks, very much I appreciate it I'll hop back in the queue.
Yeah. Thanks, David.
Our next question comes from Eric Percher with.
Research. Please go ahead.
Thank you I wanted to focus on the strategic alternatives for provider and consumer and I think you made a comment around alternatives presented to you are those alternatives presented by the businesses or presented by outside parties and any thoughts about what strategic alternatives may be attractive to you.
Yes.
That's a great question. So you know.
Since last year since we went public we've been really trying to focus on how to simplify the story.
So we stopped doing some COVID-19 work some P. C M. H work and we've continued to look at all of our assets and think that we're undervalued and so how do you unlock that value and and we know enterprises is the core business right. That's the business we've mentioned in the past, but we need to win at and we.
Some of the partnerships that we've created is a great step in that direction and we also are believers in how the three segments fit together. So when you think about medical records. The reason we're in that business just so I can I could.
Provide my enterprise clients with access to the medical records there could be there could be an opportunity that we could sell that division and still maintain data rights as an example, and and it's growing fast, it's profitable and and and we've had conversations with groups about that asset.
And similar on the life science side, what's really important to us where the life science business is access to the content. So the same way we have we need access to the data.
You know with medical records, we need access to the content to life Sciences, and we've had so we've been exploring conversations with third parties up are there ways that maybe we could unlock those assets maintain those rights and then reinvest those dollars into our core enterprise business.
That's interesting and I know you haven't provided the EBITDA contribution for those businesses in the past I will ask you if you'd be willing to and if not.
Could you at least provide some commentary on are these major contributors to the acceleration you're expecting for 'twenty three or is there any impact on cash flow profitability. If you were to say goodbye to those businesses.
Well, yeah, we don't break it out.
Eric Thank you for the questions Justin.
The all of these units are profitable.
Hum.
So on a standalone basis they are profitable.
The.
You know the the growth we've talked about historically has been strong on the life Sciences, but you know we're having headwinds this year. So it wouldn't be one of the divisions that would say would be the core driver for next year. Our growth is very strong on the chart business.
It remains strong.
And and so, but we'd have to way of whether or not selling an asset like that and reinvesting in the enterprise business is a.
Ultimately better to drive shareholder value, but the core the core asset is around our enterprise business and as you know you saw we didn't include that as part of one of the areas that we're looking at a strategic review so.
In short.
Both of them are profitable both of them are perform well there.
Headwinds on life Sciences, this year as we've talked about.
And the largest growth driver to our business is the enterprise business and that's not the one that that we have taken inbound interest on.
Got it thank you for all the detail.
Sure.
Your next question comes from Richard close with Canaccord Genuity. Please go ahead.
Yes, thanks for the questions just to dive deeper on the life Sciences side of things. So Justin I'm. Just curious have you seen cancellations. There just talk about what's going on here in 2022, what's changed from the first quarter and then you guys seem pretty.
Positive.
The opportunity in life Sciences in 2023.
But I guess my question is just how how strong is that confidence.
Yeah. So the answer is this we typically never have cancellations than we have had some this year, it's not significant.
I'll say that you know and I said it in the script that.
The campaigns continued to perform that's where we we really excel.
And driving an ROI for the customer, but there is there is headwinds and.
With that I give you say that it is D. C farmer spending is down 30%.
And with so much of our business.
Gets booked in the second half 35% of our of our full year is in Q4.
Theres headwinds there and so to bracket what those headwinds can be as is.
It's been a bit challenging so.
Hopefully that answers your question, yes, theres been cancellations, they're not major.
But they are it it's unusual because that does not happen what's historically.
All that said the campaigns are performing but it's just a big unknown of how much buy up were going to happen in the back half of the year and it is a significant portion of the revenue.
Okay, and then the confidence with respect to 2023, and then I mean, you talked.
Pretty favorably.
Sort of a pipeline for that.
I I think that so we have strong conviction in our team that runs that asset.
And and then we have also been bringing.
New products due to them.
You know so let's say Oh, we remained strong as long as you know let me put it this way there's 30% decline in the industry, we aren't saying that and that's in part because of the strength of our team and so we believe that we will fight through this and that and that this ASP.
That will be a revenue grower for us in 2023.
We're going to do a business update and Q4 as we talked about in the press release, and we can give more clarity, but we're big believers in that team and the asset that we felt.
And we're not taking the same pain that a lot of others are because of that but.
I think it's a little too early to give that guidance, but we will give a business update in Q4, and just maybe just add one thing to that.
The brands are staying with us, they're just pulling back some of the dollars.
Less about the cancellations and it's more about the amount of spend.
Okay. That's helpful. And then just maybe on the enterprise side.
The common theme pretty positive.
With that being said have you seen any degradation at all or.
Purchasing decisions.
And in long dated or anything along that side on the enterprise.
Well you know what we've seen is we've made a pretty big pivot into share care plus I mean, we didn't have share care plus when you went public. So if you recall you never got anther invest we took the money in.
And we built share care, plus which was adding the navigation and care management to the platform.
We got some we are even with just the demos were able to get some significant contract wins.
We were able to cut the different relationships that we cut with anthem like their national accounts team and then the one thing that we were finding and and because the accounts were familiar with share care and newest kind of are always sort of an advocate is a digital first advocate, we just needed a couple more capabilities.
Complete the solution set.
If anything they wanted just to see who else are you doing this with.
And so and so that's why we focus so hard on the Carolina pieces that we wanted to show that that we could do more business with the element. That's one thing that we had heard from investors like show at Samsung Elegance will do more business with you go beyond Doc AI, and other things and and being able to.
Partner with them now to kind of unlock hundreds of thousands of bad members. If they are using for <unk>.
That they're servicing for advocacy and put that onto share care plus gives us a reference account.
And so if anything what we've just seen in our sales violence meeting its a new offering that sure care hasn't offered before and so you know getting them comfortable that we can execute these new capabilities.
<unk> has been where a lot of dialogues going on but just because we have so many more channels of ways to get the clients is it just we're.
We're not we don't feel the softness because were up so much year over year, because you know where we were coming from a smaller base and now I think it's just a matter of getting.
Getting the deployments getting the references.
And continuing to win new business.
Okay.
Can I slip one final one in.
Sure.
Yes, so on suspending the guidance.
So it sounds as though you've got some weakness potential headwinds on the life Sciences.
Enterprise you know you have this delay a.
A little bit.
And then provider.
It seems like it's going okay, but you have some lower audits.
Why is the decision to suspend.
All your guidance rather than just make some sort of cost to it.
Yeah well.
So I can start we can do this together, but it's the breadth of the moving pieces to there there's brackets around timing of the carillon.
There's brackets around.
35, sometimes 37% of our business and life Sciences in Q4 alone.
You know we have inbound interest on the strategic review.
And if it was you really just one variable.
Around that I think we would have but in order to in each of those impact not only revenue, but EBITDA that bracketing all of those together.
You know would've created Jay.
Wide bracket that we don't think it would be helpful.
To you in the modeling so that's why we suspended that.
That will give us an updated business update when we know that timing comes out and it's just.
Just the timing of the Carolina piece alone.
You know it.
It could be tens of millions of dollars. So that's that's why it wouldnt have been helpful. Because we didn't have to go pay low Joe.
Much much higher number than it would've been helpful.
Yeah, Okay, and just I just got one.
Clarification, like where are our auto business is going really well on provider.
If I heard that you said that.
But that was down.
Okay.
Yeah, it's not the I think what you're referring to Richard was the pie. The audit business has got a great yeah, but I'm not sure.
Got it.
Can you just kind of reiterate what Justin said, it's like where we're sitting here now where it is I think we've got really strong visibility on 2023 and <unk>.
Built the product we've got the go to market.
We're going to have pretty significant scale I mean, if you think this is going to be hundreds of thousands of.
Sure care plus members in the first first year of launch and as we're sitting here right now in this moment of the kind of the back half of 'twenty, two we're saying.
Do I peg that start date or do I continue to thoughtfully worked through the transition plan do.
Do I know, what's going to happen in our life science business or our leader there has never missed.
And so she is really very good at this and saying like it was just the brands are still there, they're just they're pulling back the spend.
I'm not positive what that looks like and then.
You know we're looking at the strategic alternatives that we think are interesting for the reasons, we are articulated and aren't going to take.
You know by the end of the year I think we'll have a path a go or no go if we're going to pursue that or not and then we've got some other cost optimization things that we're doing with automation and outsourcing there that isn't moving data as well and so he said do we give that big range like Justin said or do we give you give strong conviction for 'twenty three.
Based on what we just talked about and then have an analyst day.
You know in Q4, where we can demo the product and go on and go into more detail.
For next year.
That's the thinking.
Yeah no. Thanks, that's very helpful.
Good.
Your next question comes from Cindy Motz with Goldman Sachs. Please go home.
Thanks, a lot thanks for taking my questions.
I know that you don't usually give the segment breakout for EBITDA, but you usually do you comment on the revenue. So I'm just curious like maybe you will see it in the Q as well, but it looks like the enterprise revenue ex care lengths that maybe <unk> is about $8 million little over $50 million and then maybe the medical records is about.
27, consumer if it was flat with last year would be about $18 6 million am I am I correct. There are in the ballpark.
Yeah Youre in the ballpark at the enterprise business is in the is in the $60 million range.
I'll end with primarily and then the provider business and.
<unk> 26 and $27 million.
And then life sciences between 17 and $18 million.
Okay, Great and then.
Just in terms of.
I guess the EBITDA like so to get to the 2.1, we obviously, we have the nonrecurring cash stuff some of the I guess renegotiations. The severance you know about $8 6 million you had said last quarter to date do you expect that to slow down right or start to stop in third quarter and fourth quarter I mean, that's the one.
You'd get to I guess cash flow breakeven correct, you still expect that towards the end of the year yeah.
Yeah.
Yes, so we are still focused on cash flow breakeven.
Of that $7 million or so.
Half of it is is around.
Severance and cost cutting.
As part of our plan our go forward Pant.
Cost optimization I think that this this line item will continue to remain elevated and then we'll see we'll see it start to come down in 2023.
Okay. So just so I'm clear, though so they not deck.
Recurring cross Theres still cash costs, though so there there's still going to happen like third quarter I kind of expect it but then in fourth quarter as well, we're going to see some of that but yeah. You you'll still yeah, yeah, I think you'll still you'll still see some of that as we.
We're taking a hard look at all aspects and so you know things.
Things like the optimization of the H E. R. A record retrieval business a lot of that might not hit until the fourth quarter and so so that's why you'd see.
Elevated there as well.
But again, we're focused on it so I think it will remain similar to where we are today, but as we go out into 2023, and we and we implement these these operational efficiency plants kind of through the balance of this year.
You you could model that that will start to come down.
Okay, and just on the strategic initiatives, so if youre looking at provider and consumer it sounds like you're not looking at like maybe an outright sale because you want to keep rates to the data and the content. So it's more like a licensing sort of arrangement or partnership that you might be looking at.
Right or.
No I think it could there's a lot of different ways. It could go but you could sell that business and partner with the buyer to have access to the data.
Okay.
Yeah.
And if I could just get one more in on the share buyback have you made can you give us just a comment about what you've bought back if you bought back any or how that's going.
We havent bought back any yet it's all in place to be executed on.
But we haven't acted on it yet.
Okay. Thanks, a lot.
Okay.
Okay.
This concludes our question and answer session I would like to turn the conference back over to Jeff Arnold for any closing remarks.
Great well, thank you for everybody's time today.
Yeah, I'd like to reiterate what we've discussed them.
<unk> Q2, there are big initiatives underway.
Can provide positive impact of our enterprise business.
Anchored by some of the large.
Partnerships that we've been working on with them.
<unk> client, but also across our entire book of business and so.
Feel good about that.
Product is looking amazing we're gonna do an analyst day to show it to everyone Youre going to see the commitment from our partners behind it and in 2023 is going to be a great year I think the strategic review is very timely just this idea of like is our business too complicated for investors and the belief.
That there's a lot of value in our assets that needs to be unlocked, but as I mentioned the Sydney Cindy is we.
We also believe this is very much on strategy and so as we look to potentially make moves in that area or evaluate making moves in that area, maintaining data right and content rights and some and some business relationship is important to us because we think that really differentiates our offering the strength of our data the strength of our content.
And and I can't underscore how well providers doing and we hired a new CFO last year Who's joined US who has incredible expertise and automation and outsourcing and they have put together a really solid plan that we have begun to implement that.
Should drive tremendous EBITDA.
Next year for sure Karen will start to see some of that even in Q4 of this year and we appreciate everybody's interest with share care and as always if you have any questions or thoughts and why you'd want to reach out.
We're available anytime.
Have a great day and thanks again.
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