Q3 2023 Sharecare Inc Earnings Call

[music].

Good day.

Speaker 1: Good day and welcome to the Sharecare third quarter 2023 earnings conference call and webcast. All participants, please

And welcome to the shared care third quarter 2023 earnings conference call and webcast.

All participants are in listen only mode and after today's presentation will be an opportunity to ask questions.

Speaker 1: And after today's presentation, there will be an opportunity to ask questions.

Speaker 1: To ask a question, you may press star, then one on your touch tone phone. To remove a question, please press star.

To ask a question you May Press Star then one on your Touchtone phone.

To remove a question. Please press Star then two.

Today's call is being recorded and will be available on the company's website.

Speaker 1: Today's call is being recorded and will be available on the company's website.

Speaker 1: On today's call, we have Mr. Jeff Arnold, Chairman and CEO , and Mr. Justin Ferrero, President and Chief Financial Officer.

On today's call, we have Mr. Jeff Arnold Chairman, and CEO and Mr. Justin Ferrara, President and Chief Financial Officer.

Speaker 1: 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 security litigation Reform Act of 1995. Which include statements regarding strategic initiatives, expected cost savings, new capabilities, pipelines, and our guide.

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 1995, which includes statements regarding strategic initiatives expected cost savings new capabilities pipelines in our guidance.

These 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.

Speaker 1: These 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.

Speaker 1: Although we believe these expectations are reasonable, we undertake no obligation to revise any statements to reflect changes that will occur after the

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

Speaker 1: descriptions 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

Scriptures 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 our Form 10-K for the year ended December 31 22.

Speaker 1: including the risk factor section of our Form 10-K for the year ended December 31, 2022.

Speaker 1: In addition, please note that the company will be discussing certain non-GAAP financial measures that we believe are important in...

In addition, please note that the company will be discussing certain non-GAAP financial measures.

We believe are important in evaluating performance.

Speaker 1: 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 release that is posted on the company's website.

Sales 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 release that is posted on the company's website.

Speaker 2: I would now like to hand the conference call over to Mr. Jeff Arnold. Jeff, please go ahead. Thank you. And good morning, everyone. We appreciate you joining us today as we mark a significant and exciting moment for all of us at ShareCare.

I would now like to hand, the conference call over to Mr. Jeff Arnold Jeff. Please go ahead. Thank you and good morning, everyone. We appreciate you joining us today as we Mark a significant and exciting moment for all of US at share care. In addition to continuing to execute our near term business objectives as represented in our stock strong third quarter results.

Speaker 2: In addition to continuing to execute our near term business objectives as represented in our strong third quarter results, we're also positioning the business for operational excellence and sustained growth with the appointment of Centines Corporations, former president and chief operating officer, Brad Lighten as an CEO of ShareCare.

We're also positioning the business for operational excellence and sustained growth with the appointment of Centene Corporation, former President and Chief operating Officer, Brent Layton as the next CEO of share cure. This evolution is a multiple years in the making and I'm looking forward to working closely with him as I remain engaged in our day to day business.

Speaker 2: This evolution is multiple years in the making. And I'm looking forward to working closely with him as I remain engaged in our day-to-day business activities in my new role as Executive Chairman.

In my new role as executive Chairman.

Since inception, we have been building an end to end digital platform focuses on improving health outcomes for people no matter, where they are in their personal well being journeys as we sit here today. We have done just that we have built a platform of choice for some of the country's most notable of employers and health plans. We also believe there are significant opportunities ahead.

Speaker 2: Tense infection, we have been building an end-to-end digital platform focuses on improving health outcomes for people, no matter where they are and their personal wellbeing journeys. As we sit here today, we have done just that. We have built the platform of choice for some of the country's most notable employers and help.

Speaker 2: We also believe there are significant opportunities ahead, which is why now is the right time for me to focus my expertise in our strategic direction to create new solutions, leveraging our data, platform, and technology, and have breadth step into the CE role to accelerate growth and continue to ensure operational excellence.

Which is why now is the right time for me to focus my expertise and our strategic direction to create new solutions, leveraging our data platform and technology and have Brett step into the CEO role to accelerate growth and continue to ensure operational excellence.

Before I discuss brad's appointment in detail I'd like to start with an overview of our third quarter results.

Speaker 2: Before I discuss Brent's appointment in detail, I'd like to start with an overview of our third quarter results.

Speaker 2: For the quarter, we reported revenues of 113.3 million and adjusted evit. of 9.6 million.

For the quarter, we reported revenues of $113 3 million and adjusted EBITDA of $9 6 million revenue exceeded our guidance forecast and adjusted EBITDA was at the high end of the guidance range. This was driven by the strong execution of our teams record revenues in our provider segment.

Speaker 2: Revenue exceeded our guidance forecast and adjusted EBITDA was at the high end of the guidance.

Speaker 2: This was driven by the strong execution of our teams, record revenues in our provider segment, and realizing the benefits of our expense reduction program. In fact, our Justin Eba-Dot was an improvement of over four million versus the prior year quarter, and year to date it is triple what it was in the first three quarters of last year.

And realizing the benefits of our expense reduction program in fact, our adjusted EBITDA was an improvement of over $4 million versus the prior year quarter and year to date. It is triple what it was in the first three quarters of last year.

Speaker 2: I would like to affirm our full year guidance of revenues between $452.5 million and $462.5 million and a justative of $21 million to $26 million. Justin will discuss our latest guidance estimates and his update later on the call.

I would like to affirm our full year guidance of revenues between $452 5 million and $460 million and adjusted EBITDA of 21 million to 26 million Justin will discuss our latest guidance estimates in his update later on the call.

Speaker 2: Importantly, we remain on track to deliver our year-end commitments to be cashflow break even, as well as service 12.9 million eligible lives through our high-tech high-touch platform that delivers personalized, improved health and wellbeing solutions to our clients, members, populations, including large employers, health systems, payers, TPAs, and government customers.

Importantly, we remain on track to deliver our year end commitments to be cash flow breakeven as well as service $12 9 million eligible lives through our high Tech high touch platform that delivers personalized improving health and wellbeing solutions to our clients members populations, including large employers health systems payers.

T P A's and government customers.

Speaker 2: In all, it was a strong quarter, and we expect that momentum to carry forward.

In all it was a strong quarter and we expect that momentum to carry forward.

Speaker 2: I also want to spend a moment highlighting what sets ShareCare apart within the digital health space and why we are well positioned to benefit from the industry's transition from fee-for-service to value-based care.

I also want to spend a moment highlighting what sets share care apart within the digital health space and why we are well positioned to benefit from the industry's transition from fee for service to value based care or.

Our platform has proven successful in engaging with our users whether people simply require routine preventative care or managing high risk and chronic conditions by delivering personalized recommendations and interventions.

Speaker 2: Our platform has proven successful in engaging with our users, whether people simply require routine preventative care or are managing high risk and chronic conditions by delivering personalized recommendations and interventions, resulting in better health outcomes and lowering costs for both our members and our clients.

And even better health outcomes and lowering cost for both our members and our customers. Our continued investments in generative AI technology, leveraging our expansive and ever growing datasets continue to enhance efficiencies and improve our capabilities we.

Speaker 2: Our continued investments in generative AI technology, leveraging our expansive and ever-growing data sets, continue to enhance efficiencies and improve our capability.

Speaker 2: We are supplementing our high-touch clinical advocacy and coaching services with AI to improve the quality and efficiency of member interaction.

We are supplementing our high touch clinical advocacy and coaching services with AI to improve the quality and efficiency of member interactions bolstered with AI, Our digital resources call center specialists and clinical resources and quickly pull relevant information from across dozens of plant types and files seamlessly delivered to the user and multimodal.

Speaker 2: Bolstered with AI, our digital resources, call center specialists, and clinical resources can quickly pull relevant information from across dozens of plan types and files seamlessly delivered to the user in multimodal optionality.

Optionality.

Speaker 2: Data is critical for value-based care to work, and our AI capabilities ensure that we are unlocking the full power of that data on behalf of both our customers and the people using our platform to navigate their benefits and manage their health.

Data is critical for value based care to work and our AI capabilities ensure that we are unlocking the full power of that data on behalf of both our customers and the people using our platform to navigate their benefits and manage their health or.

Speaker 2: Our integrated and tech-enabled home care solution, CareLinks, continues to be another key differentiator in our ability to improve outcomes in lower costs.

Our integrated and Tech enabled homecare solution <unk> continues to be another key differentiator in our ability to improve outcomes and lower cost are betting and training processes. Among the most rigorous in the industry and our net promoter score of 90 underscores our commitment to ensure the highest level of quality professionalism and importantly safety or health plan.

Speaker 2: Our vetting and training process is among the most rigorous in the industry, and our net promoter score of 90 underscores our commitment to ensure the highest level of quality, professionalism, and importantly, safety. Our health plan customers use our home care solution as a supplemental benefit, our employers as a benefit to help their employers better care for themselves and their loved ones when they are not able to do so. And our provider clients as an extension of their care management.

Customers use our homecare solution as a supplemental benefit our employers as a benefit to help their employers better care for themselves and their loved ones when they're not able to do so and our provider clients as an extension of their care management teams, we have a growing pipeline for 'twenty 'twenty, four and beyond and we not only assist with members unmet functional needs in the.

Speaker 2: We have a growing pipeline for 2024 and beyond, and we not only assist with members' unmet functional needs in the home, which drives trust and engagement, but also identify clinical complexity and social risk factors that can help address through our clinical advocacy services or third-party referral programs.

Which drives trust and engagement, but also a downside clinical complexity and social risk factors that can help address through our clinical advocacy services or a third party referral programs.

Speaker 2: As outlined above, we continue to deliver solutions that drive ROI for our customers across the healthcare ecosystem, leveraging our unique assets and data-centric approach. We've made significant progress in our globalization and cost improvement efforts as planned without sacrificing customer service and with our margin improvements on track.

As outlined above we continue to deliver solutions that drive ROI for our customers across the health care ecosystem, leveraging our unique assets and data centric approach. We've made significant progress in our globalization and cost improvement efforts as planned without sacrificing customer service and with our margin improvements on track.

Overall, we have the proprietary technology data and interoperable platform to deliver a seamless digital experience and be the partner of choice for our customers regardless of the populations they serve.

Speaker 2: Overall, we have the proprietary technology, data and interoperable platform to deliver a seamless digital experience and be the partner of choice for our customers regardless of the populations they serve.

Speaker 2: As we look ahead and we continue our focus on unlocking shareholder value, I believe there are two areas of significant opportunity.

As we look ahead and we continue our focus on unlocking shareholder value I believe there are two areas of significant opportunity. The first is in government funded programs, including Medicare Medicaid and the health insurance marketplace. We currently have a number of customers in this sector, including several state health benefit plans, where we provide health and <unk>.

Speaker 2: The first is in government-funded programs, including Medicare, Medicaid, and the health insurance marketplace. We currently have a number of customers in this sector, including several state health benefit plans, where we provide health and well-being resources to hundreds of thousands of state employees.

Albion resources to hundreds of thousands of state employees. In addition, we are contracted with multiple Medicare advantage programs, both using our technology platform to engage with our members as well as offering our home care service care lengths as a supplemental benefit for millions of their members.

Speaker 2: In addition, we are contracted with multiple Medicare Advantage programs, both using our technology platform to engage with their members as well as offering our home care service care links as a supplemental benefit for millions of their MA members.

We are poised to go even deeper with existing state and local government contracts.

Speaker 2: We are poised to go even deeper with existing state and local government contracts.

Speaker 2: The second is in offering value-based contracts to share in both the risk and cost savings with our customers.

The second is an offering value based contracts to share in both the risk and cost savings with our customers with innovation in our DNA, we are leveraging our assets and capabilities to develop new solutions to address many of the challenges our customers are facing and as I mentioned earlier be their strategic partner of choice to that end we are active.

Speaker 2: With innovation in our DNA, we are leveraging our assets and capabilities to develop new solutions to address many of the challenges our customers are facing. And as I mentioned earlier, be their strategic partner of choice. To that end, we are actively exploring value-based care models in addition to our new risk adjustment solution we announced in Q2 that we will roll out in 2024.

Exploring value based care models. In addition to our new risk adjustment solution, we announced in Q2 that will rollout in 2024.

It is against this backdrop.

Speaker 2: And from this strong foundation, I'm excited that Brent Layton has agreed to become our next CEO , effective January 2nd, 2024.

And from this strong foundation and I'm excited that Brent Layton has agreed to become our next CEO effective January 2nd 'twenty 'twenty four.

His appointment comes following a deliberate and well planned transition down together with the board focused on positioning share care to capitalize on the opportunities ahead.

I'm sure. Many of you are familiar with breath, but those of you who are not he has been a member of the shared care board of directors. Since early 2023 and brings more than 30 years of health care and public policy experience in a variety of growth oriented executive roles, including more than two decades at Centene Corporation.

Speaker 2: Brent held many roles and capacities while at Centene, including serving as Chief Business Development Officer, during which time the company scaled from three health plans to 31 health plans, becoming the nation's largest Medicaid-managed share company.

Ryan held many roles in capacities, while at Centene, including serving as Chief business Development Officer during which time the company scaled from three health plans, there's 31 health plans, becoming the nation's largest Medicaid managed care company.

Speaker 2: He oversaw many of the divisions and products in his time at Centene, including provider contracting, where he led the company into value-based care. As president and COO of Centene, he oversaw Ambetter, the nation's largest health insurance exchange provider, and WellCare, the nation's sixth largest Medicare Advantage company.

Do you ever saw many of the divisions in products in his time at Centene include including provider contracting where he led the company into value based care as.

As President and C O L. A centene he oversaw an better the nation's largest health insurance exchange provider and Wellcare the nations sixth largest Medicare advantage company.

Brendan ounces retirement from Centene in late 2022, and stayed with Centene as senior advisor to the CEO.

Speaker 2: Brent announced his retirement from Centene in late 2022 and stayed with Centene as senior advisor to the CEO .

Speaker 2: Centene grew annual revenues from $300 million to $144 billion during Brent's tenure.

Centene grew annual revenues from 300 million to 144 billion during <unk> tenure.

I am confident that with the combination of <unk> expertise in driving growth at scale with large value based contracts and my extensive experience in digital health M&A and product innovation, we are well positioned to continue to execute our strategy for growth and profitability and deliver enhanced value for our users customers and its shareholders. We look forward to <unk>.

Speaker 2: I am confident that with the combination of Brent's expertise in driving growth at scale with large value-based contracts and my extensive experience in digital health, M&A, and product innovation, we are well-positioned to continue to execute our strategy for growth and profitability and deliver enhanced value for our users, customers, and shareholders. We look forward to sharing more detail in 2024 once Brent officially assumes the role.

Any more detail in 2024 once Brent officially assumes the role.

Before I hand, the call over to Justin who will provide additional financial details I want to comment on the previously disclosed unsolicited preliminary non binding proposal that we received from Clara task capital.

Speaker 2: Before I hand the call over to Justin, who will provide additional financial details, I want to comment on the previously disclosed unsolicited preliminary non-binding proposal that we received from Claritas Capital. Claritas, which is a large shareholder of the company, is led by John Chadwick, who also serves on Sharecare's board with me and Brent.

<unk>, which is a large shareholder of the company is led by John Chadwick, who also serves on share cares bored with me and brand.

Speaker 2: Consistent with its fiduciary duties, our board of directors is carefully reviewing the proposal and we will pursue the course of action it determines to be in the best interest of the company and all of its shareholders.

Consistent with its fiduciary duties our board of directors is carefully reviewing the proposal and we will pursue the course of action it determines to be in the best interest of the company and all of its shareholders.

We have a strong path ahead, and our distinct advantages set us apart from the rest of the industry and with Brent on the team we are accelerating our evolution as it go to digital health partner and with that I'll turn it over to Justin.

Speaker 2: We have a strong path ahead, and our distinct advantages set us apart from the rest of the industry. And with Brent on the team, we are accelerating our evolution as a go-to digital health partner. And with that, I'll turn it over to Justin.

Speaker 2: As Jeff noted, we reported positive third quarter results with revenue of $113.3 million, exceeding guidance, and adjusted EBITDA of $9.6 million, which is at the high end of our guide. Since going public, our Q3 adjusted EBITDA margin of 8.4% represents the highest single quarter adjusted EBITDA margin for share care, and is a very significant increase over our Q2 adjusted EBITDA margin of approximately 3%.

As Jeff noted, we reported positive third quarter results with revenue of $113 3 million.

Beating guidance and adjusted EBITDA of $9 6 million, which is at the high end of our guide since going public our Q3 adjusted EBITDA margin of eight 4% represents the highest single quarter adjusted EBITDA margin per share care and is a very significant increase over our Q2 adjusted EBITDA.

<unk> margin of approximately 3%.

Speaker 2: Additionally, we are on track to meet our primary annual operating KPIs in both enterprise and provider channels, which are 12.9 million eligible lives and 6.5 million records processed for the year.

Additionally, we are on track to meet our primary <unk>.

Annual operating Kpis in both enterprise and provider channels, which are $12 9 million eligible lives and $6 5 million records processed for the year.

The enterprise channel performed in line with our expectations with our abbacy advocacy solutions driving outstanding results and both care gap closures as well as avoidable readmission rates, yielding millions of dollars in potential savings and leading to member satisfaction of over 90% and client satisfaction.

Speaker 3: The Enterprise Channel performed in line with our expectations, with our advocacy solutions driving outstanding results in both care gap closures, as well as avoidable readmission rates, yielding millions of dollars in potential savings and leading to member satisfaction of over 90% and client satisfaction rates of over 99%. And our clinical advocacy net promoter score is at nearly 100.

Rates of over 99% and our clinical advocacy net promoter score is up nearly 100.

I'm pleased to report that the provider channel once again set a quarterly revenue record in Q3, driven by increases in Medicare advantage risk adjustment related chart volumes. The channel is also realizing meaningful reductions in expenses, resulting from the ongoing globalization and cost mitigation efforts.

Speaker 3: I'm pleased to report that the provider channel once again set a quarterly revenue record in Q3, driven by increases in Medicare Advantage risk adjustment related chart volume.

Speaker 3: The channel is also realizing meaningful reductions in expenses resulting from the ongoing globalization and cost mitigation efforts.

Speaker 3: Life Sciences Q3 revenue was in line with expectations and with the prior year period, despite softness in macro pharma spend across the industry, as we anticipated and have seen throughout the year. We are pleased with the resilience of this channel and are benefiting from the value of our high-quality targeting with our proprietary zero-party database of over 100 million people.

Life Sciences Q3 revenue was in line with expectations and what the prior year period, despite softness in macro pharma spend across the industry.

As we anticipated and have seen throughout the year.

We are pleased with the resilience of this channel and are benefiting from the value of our high quality targeting with our proprietary zero party database of over 100 million people.

Our financial Health remains strong we ended the third quarter with a cash balance of $128 million and approximately $182 million in available liquidity as we continue to advance toward our target of achieving cash flow breakeven, we reduced cash burn in Q3 to approximately $6 9 million excluding the impact.

Speaker 3: Our financial health remains strong. We ended the third quarter with a cash balance of $128 million and approximately $182 million in available liquidity. As we continue to advance toward our target of achieving cash flow break-even, we reduced cash burn in Q3 to approximately $6.9 million, excluding the impact of stock buybacks and other one-time non-operating payments in the quarter, which compares to $8 million burn in Q2, which had one fewer payroll period.

The stock buybacks and other onetime nonoperating payments in the quarter, which compares to $8 million burn in Q2, which had one fewer payroll period.

Speaker 3: We are continuing to execute against our globalization, automation, and other business optimization initiatives to be cash flow breakeven.

We are continuing to execute against our globalization automation and other business optimization initiatives to be cash flow breakeven.

Yeah.

Speaker 3: As an update on our previously announced stock repurchase program, we have bought back $9.2 million worth of shares to date, leaving $40.8 million remaining under the current authorization through next May. As noted previously, we continue to evaluate our capital allocation strategy and strongly believe our current stock price does not represent the full underlying value of our business.

As an update on our previously announced stock repurchase program. We have bought back nine 2 million worth of shares to date, leaving $40 8 million remaining under the current authorization through next may.

As noted previously we continue to evaluate our capital allocation strategy and strongly believe our current stock price does not represent the full underlying value of our business.

Looking forward to Q4, we are guiding to revenue within the range of $111 million to $113 million and adjusted EBITDA between $9 5 million and $11 5 million.

Speaker 3: Looking forward to Q4, we are guiding to revenue within the range of $111 million to $113 million, and adjusted EBITDA between $9.5 million and $11.5 million. This represents another expected lift in adjusted EBITDA margin, driven by the myriad of operational improvement initiatives underway across the business.

This represents another expected lift in adjusted EBITDA margin driven by the myriad of operational improvement initiatives underway across the business amounting to $30 million in annualized expense reduction as discussed on earnings calls earlier in the year it.

Speaker 3: amounting to $30 million in annualized expense reduction as discussed on earnings calls earlier in the year.

Speaker 3: It is important to note that we have taken a conservative approach to our revenue guide in Q4 due to the aforementioned softness and pharma marketing spend.

It is important to note that we have taken a conservative approach to our revenue guide in Q4 due to the aforementioned softness in pharma marketing spend.

Okay.

Revenue guidance for fiscal year, 2023 is reiterated at $452 5 million to $460 million, but.

Speaker 3: Revenue guidance for fiscal year 2023 is reiterated at $452.5 million to $460 million, but I'd like to add one note on our adjusted EBITDA reporting.

But I'd like to add one note on our adjusted EBITDA reporting.

Speaker 3: In conformance with the SEC's clarified guidance around and recent focus on non-GAAP financial measures, our adjusted EBITDA now includes costs related to an exited contract, abandoned leases, and certain staff reorganization expenses, all of which were previously disclosed but excluded from our historical adjusted EBITDA calculations and guidance.

And performance with the FCC's clarified guidance around and recent focus on non-GAAP financial measures. Our adjusted EBITDA now includes costs related to an exited contract abandoned leases and certain staff reorganization expenses.

All of which were previously disclosed but excluded from our historical adjusted EBITDA calculations and guidance the.

Speaker 3: The earnings release contains a reconciliation of adjusted EBITDA to GAAP net income, inclusive of these changes. And all current and historical financials presented reflect this update to our non-GAAP measures.

The earnings release contains a reconciliation of adjusted EBITDA to GAAP net income inclusive of these changes and all current and historical financials presented reflect this update to our non-GAAP measures.

Speaker 3: In Q3 2023 and Q3 year-to-date 2023, these costs totaled $1.1 million and $3.1 million, respectively. To put that into context, adjusted EBITDA margins delivered in Q3 would have been even higher than the record margins reported.

Q3, 2023 in Q3 year to date 2023, these costs totaled $1 1 billion and $3 1 million respectively.

Put that into context, adjusted EBITDA margins delivered in Q3 would have been even higher than the record margins reported.

Additionally, we have updated our adjusted EBITDA guidance to $21 million to $26 million for the fiscal year 2023 to reflect this change. It is important to highlight there are no new expenses and no impact on the balance sheet or cash flow. This is simply moving <unk>.

Speaker 3: Additionally, we have updated our adjusted EBITDA guidance to $21 million to $26 million for fiscal year 2023 to reflect this change.

Speaker 3: It is important to highlight there are no new expenses and no impact on the balance sheet or cash flow. This is simply moving previously discussed below the line expenses back into our adjusted EBITDA guidance.

<unk> discussed below the line expenses back into our adjusted EBITDA guidance.

I will also note that these expenses are not expected to recur in 2024.

Speaker 3: I will also note that these expenses are not expected to recur in 2024.

Speaker 3: In closing, we are pleased to report the positive third quarter performance, including record adjusted EBITDA margins, execution against our core KPIs, successful implementation of our comprehensive cost savings program, and continued advancements towards cash flow break-even.

In closing we are pleased to report the positive third quarter performance, including record adjusted EBITDA margins execution against our core Kpis successful implementation of our comprehensive cost savings program and continued advancements towards cash flow breakeven.

Speaker 3: Thank you for your continued support and commitment to the SHARE Care vision. We're now ready to take your questions.

Thank you for your time.

And you'd support and commitment to the share care vision, we're now ready to take your questions.

We will now begin the question and answer session.

Speaker 1: To ask a question, you may press star, then 1 on your touchtone phone.

To ask a question you May Press Star then one on your Touchtone phone.

If youre using a speakerphone please pick up your handset before pressing the keys and to withdraw your question. Please press Star then two.

Speaker 1: If you're using a speaker phone, please pick up your handset before pressing the keys. Into withdrawal question, please press star then two.

Speaker 1: At this time, we will take our first question, which will come from David Larson with BTIG. Please go ahead.

At this time, we will take our first question, which will come from David Larsen with BTG. Please go ahead.

Speaker 4: Hi, congratulations on the excellent EBITDA growth. Can you talk a little bit about the progress you're making in the enterprise division, RFP activity, the sales pipeline, and then what was the revenue for enterprise in the quarter? And then any color or thoughts on Carillon without getting too specific, obviously. Thank you.

Hi, congratulations on the excellent EBITDA growth can.

Can you talk a little bit about the progress you're making in the enterprise Division RFP activity. The sales pipeline and then what was the revenue for enterprise in the quarter, and then any color or thoughts on carillon without getting too specific obviously thank you.

Thanks, Dave.

Speaker 3: uh... there's a lot lot contact on that one the uh... what book which one you want me to focus on first uh... the i'll start with the quarter we had a uh...

There's a lot lot ton fact on that one.

Which one do you want me to focus on first.

I'll start with the quarter, we had a.

Speaker 3: You know, I think we set out for, you know, significant EBITDA growth. We we came in at a record, you know, since our IPO, 8.4 percent. As you know, that's almost three X our percentage EBITDA that we did in Q2. So sequentially, just a significant lift there.

I think we set out for.

You know significant EBITDA growth.

We are we came in at a record since our IPO eight 4% as you know that's almost three X or percentage EBITDA that we did in Q2 sequentially just a significant lift there.

Speaker 3: And so we're real pleased with the quarter. Relative to the pipeline, it continues to grow. It's a very strong pipeline. We had a number of...

And so we're real pleased with the quarter relative to the pipeline. It continues to grow it's a very strong pipeline. We had a number of we can't talk to them yet, but we had you know double.

Speaker 3: We can't talk to them yet, but we had, you know, double-digit wins in new customers in Q3. Those will come out later, and, you know, we're real excited about how that sets us up for 2024. Yeah, and I would just add to that, David, it's Jeff.

Double digit wins, and and and new customers in Q3, those will come out later.

And you know a real real excited about how that sets us up for 2024, Yeah, and I would just add to that David its Jeff.

Speaker 2: not only great quarter, strong pipeline, but we're starting to get in a lot of results from our Sharecare Plus deployments, some in conjunction with Carillon, and the results have been really great, like satisfaction really high, outcomes coming in better than expected, and so we're super encouraged by that.

Not only you know great quarter strong pipeline, but we're starting to get in a.

A lot of results from our share care plus deployment.

You know some in conjunction with carillon and ER and the results have been really great. Like you know satisfaction really high outcomes, you know coming in better than expected and so we're super encouraged by that.

Speaker 4: Okay, and it sounded to me like you have incremental, you know, opportunities within some existing large enterprise customers. And it also sounds like you're sort of moving forward with your value-based care and risk sharing efforts. Can you provide any color on that? Like, would you be accepting like a PMPM rate? Would there be like a value-based care sort of arrangement like we see with like a Privy or an Evelyn, for example, just any thought there would be helpful?

Okay and it sounded to me like you have incremental you know opportunities within some existing large enterprise customers and it also sounds like you're sort of moving forward with your value based care and risk sharing efforts can you provide any any color on that like would you be accepting like it.

M P M right.

Would there be like a value based care sort of arrangement like we see with like a premier and everyone. For example, just any thoughts there would be helpful.

Yeah. So the so the plan remains the same we have a big installed base and so the opportunity is to expand within those clients.

Speaker 2: Yes, so the so the plan remains the same. We have a big installed base. And so the opportunity is to expand within those clients.

Speaker 2: And I have some good success stories of clients who bought, you know, the digital front door to start, and then added digital therapeutics, and then added advocacy, and now have even added care links. And obviously, in those examples, the PMPM continues to increase.

And I have some good success stories of clients, who bought you know the digital front door to start and then I had a digital therapeutics and then added advocacy and now have you been added care lengths and I would say in those examples the P. M. P. M continues to increase and then in addition to that you know.

Speaker 2: And then, in addition to that, you know, we remain focused on obviously adding new logos. And so we're happy with our pull-through in the pipeline. We had a huge day yesterday, as an example, across all three of our business segments on new wins. And then we think our platform is really well-positioned for value-based care. And the way that we participate today outside of our PMPMs is that we do a lot of performance guarantees.

We remain focused on obviously are adding new logos and so we're happy with our pull through in the pipeline. We had a huge day yesterday as an example across all three of our big our business segments are not new wins and then we think our platform is really well positioned for value based care and the way that we.

Fate today outside of our P. M. P. M says that we do a lot of performance guarantees.

Speaker 2: which is kind of a form of shared risk, and are making a lot of investments in our technologies and people, you know, Brent in particular, to aggressively move into value-based care where we'll move beyond just performance guarantees and PGs into more risk-sharing arrangements.

It's just kind of a of a form of shared risk and and are making a lot of investments and our technologies and people and you know Brent in particular to aggressively move into value based care will move beyond just performance guarantees and P. Gs into more risk sharing arrangement.

<unk>.

Okay, and then one.

One more from me before I hop back in the queue is this EBITDA margin sustainable into next year or should we expect like a step up in cost for incremental investments in new Onboarding just at a high level I'm just.

Just some color around the sustainability of higher margin.

Well maybe I'll.

Speaker 3: Well, maybe I'll, well, first of all, I think it's important to note that this EBITDA margin would have even been higher, you know, that you heard in my, it was a record, a record percentage for us, but would have been even higher due to some of the shifts and the clarified discussions that we had around our non-GAAP measures.

Well first of all I think it's important to note that.

This EBITDA margin would have even been higher but you heard of Mike. It was a record a record percentage for us, but would have been even higher.

Due to some of the shifts and the clarify discussions that we had around our non-GAAP measures.

Speaker 3: Those are going to go away. Those will not recur next year. So there will already be a tailwind there. I think you should also get comfort in that our EBITDA margins are sustainable as you look at our Q4 guide. And so we're guiding to another step up in EBITDA margin at $9.5 to $11.5 million.

Those are going to go away those will not recur next year, so there ought to be a tailwind there.

I think you should also get comfort inn and that our EBITDA margins are sustainable as you look at our Q4 guide and and so we're we're guiding to another step up in EBITDA margin at nine five to 11 5 million. So we are without getting too much into to 2024.

Speaker 3: So we, without getting too much into 2024, you know, we want to spend time with Brent as we come up with the 24 guide, but we are set up very well. All the effort that we've put in this year, which was significant to take out, you know, an annualized 30 million in expense.

For we want to spend time with Brent as we come up with the 24 guide, but we are set up very well all the effort that we've put in this year, which are significant to take out you know an annualized 30 million in expense.

Speaker 3: across the organization. We have executed against that and you're seeing it in the results and that just is going to give us a nice tailwind as we go into next year. Okay, I'll hop back in the queue.

Across the organization, we have executed against that and and you're seeing that in the results and that that just is going to.

Give us a nice tailwind as we go into next year.

Okay I'll hop back in the queue congrats on the good EBITDA.

Thank you.

Okay.

Speaker 1: And our next question will come from Craig Hettendock with Morgan Stanley . Please go ahead.

And our next question will come from Craig <unk> with Morgan Stanley. Please go ahead.

Hey, guys. Its Macquarie. Thanks for taking the question.

Speaker 3: Hey, guys, it's McCoy. Thanks for taking the question and good luck. Good luck. Jeff on the next steps and congrats to Brent on the new role. Just want to talk about Caroline. I know you kind of saw some pressure with PM PM earlier in the year. She want to talk about how that relationship is going. And if you've kind of seen those PM PM stabilize.

Good luck.

Good luck, Jeff on kind of the next steps and congrats to Brent on the new role.

Just wanted to talk about Caroline I know you kind of saw some pressure with P. M. P M.

Earlier in the year I, just want to talk about how that relationship is going and if you kind of see <unk> stabilize.

Speaker 5: And then also, just kind of as open enrollment has started up again, I just wanted to see how ShareCare Plus engagement is going and if that's kind of tracking in line with expectations. Thanks.

And then also just kind of as an open enrollment has started.

Again, I just wanted to see how share care plus engagement is going and if that is kind of tracking in line with expectations. Thanks.

Speaker 2: Yeah, I think it's stayed the course. Everything's kind of tracking on expectations. It's kind of the same story as the last question I answered is that we've got current clients with Carillon that we're executing against, which we believe become great reference sites for us. And the results have been really good. And we have lots of opportunities.

Yeah, I think it's it's stay the course everything's kind of tracking on our expectations.

It's kind of the same story as the last question I answered is that we've got current clients with Carolina that we're executing against which we believe become great reference sites for us and the results have been really good and we have lots of opportunities within carillon that we're pursuing across both our <unk>.

Speaker 2: within Carillon that we're pursuing across both our enterprise segment and our

Enterprise segment, and our our provider segment and and and things are staying the course the platforms, becoming more mature as as time goes on awareness is growing with the brokers, which theres been a big emphasis on them this year.

Speaker 2: our provider segment and things are, you know, staying the course. The platform's becoming more mature as time goes on. Awareness is growing with the brokers, which there's been a big emphasis on this year.

Speaker 2: you know, you know, driving awareness that sharecare plus offers advocate

You know driving awareness that sure care plus offers advocacy and so we're seeing you know an increase in the number of Rfps that are coming in the door are the dialogue that we're having with the brokers as you know kind of a way out.

Speaker 2: And so we're seeing an increase in the number of RFPs that are coming in the door. The dialogue that we're having with the brokers is kind of way up.

Speaker 2: You know, we, uh, you know, we've seen some delays in decision-making, but ultimately seeing the pull through at the end of the day, like we had one this week that, uh, we were a finalist, uh, we did our finalist presentations six months ago and, uh, found out yesterday that we won that contract. Um, but, but yeah, so I would say it's, it's business as usual.

Now we are you know we've seen some delays in decision, making but ultimately seeing the pull through at the end of the day like we had one this week that.

We were a finalist we did our finalist presentations six months ago and I found out yesterday that we won that contract, but but yeah. So I would say, it's it's business as usual.

Yeah.

Great appreciate that and then just one more on kind of.

Speaker 5: Great. Appreciate that. And then just one more on kind of.

You know what Brent and this new CEO role it means for the company. Just curious you know you talked about just the government programs that you guys are looking to.

Grow into can you talk about the experience at Brent Hasnt, Centene and kind of how that relationship might help.

Going forward, yes.

Yeah, So I would I would say this is Ben.

A long time in the works for me personally is.

I feel like I've been recruiting brand for five years, you know initially to come onto the board and you know you've got a.

Speaker 2: And, you know, he had a, you know, kind of an unbelievable run at Centene, you know, was a part of that team, a big contributor, as it grew from $300 million to $144 billion. And when I look at Sharecare, you know, we have a lot of success stories today in government-funded programs.

You know kind of at an unbelievable run at Centene was a part of that team a big contributor as it grew from 300 million to a 144 billion and when I look at share care. You know we've had we have a lot of success stories today and government funded programs state of Georgia.

Speaker 2: State of Georgia probably being the best example, but we'll kick off next year another huge state account. We made a finalist meeting for a state just yesterday. And when I think about our community wellbeing index, and I think about our kind of whole person strategy, I think of clients like Georgia that would spend with us for 10 years.

You know probably being the best example, but we'll kick off next year another huge state account.

We made a finalist meeting for our state just yesterday.

And and when I think about our community Wellbeing index and I think about our kind of whole person strategy I like our clients like Georgia that will spend with us for 10 years.

Speaker 2: it's just a massive growth opportunity for us, not just within state health benefit plans, but also within Medicaid, which obviously I would argue that Brent might be the...

It's a massive growth opportunity for us not just within state health benefit plans, but also within Medicaid.

Obviously, I would argue that it might be that maybe.

Speaker 2: maybe the best expert in the country on Medicaid as well as Medicare Advantage.

It may be the best expert in the country on Medicaid.

And as well as our Medicare advantage. So we have stayed health plans, we do business in Medicaid today, we have a couple of million lives already in Medicare advantage.

Speaker 2: So we have state health plans, we do business in Medicaid today, we have a couple million lives already in Medicare Advantage.

Speaker 2: And Brent is coming with an informed view. He's been on the board for the last year. I think we share a passion and a vision of how do we use enabling technologies to improve wellbeing, not only for individuals, but for communities. And he's bringing an amazing Rolodex to the team.

Brent is coming with an informed view he's been on the board for the last year.

I think we share a passion and a vision of how do we use enabling technologies to prove improve well being not only for individuals but for communities and and he's he's bringing an amazing rolodex to the to the team and I've witnessed that personally just working with him as a board member of doors that he has opened with us.

Speaker 2: And I've witnessed that personally just working with him as a board member of doors that he's opened with us and

And.

Speaker 2: I think I speak for all of us, we're super excited about getting on the field with them in 2024 and growing, especially within these government-funded programs.

Yeah, I think I speak for all of US we're super excited about getting out in the field with them in 2024, and and growing especially within these government funded programs.

Great well I look forward to it and congrats again on the quarter I'll hop back in the queue great. Thank you.

Speaker 5: Great. Well, I look forward to it and congrats again on the quarter. I'll hop back in the queue. Great. Thank you.

Speaker 1: And our next question will come from Eric Pertzer with Neffern Research. Please go ahead.

And our next question will come from Eric Percher with Nephron Research. Please go ahead.

Thank you.

Speaker 3: Jeff, I know there's limitations on what you can say. I'm bid to be a solicited or unsolicited. One question that maybe you could answer for us is when we looked back to last year and the strategic review, was that truly limited to provider and consumer or were considerations for the full company made?

I know theres limitations on what you can say on bids bofa solicited or unsolicited. One question that maybe you could answer for US is when we look back to last year and the strategic review was that true.

Really limited to provider and consumer or were considerations for the whole company made at that time.

Speaker 2: The primary focus of the strategic review was the sum of the parts, and so we had conversations along the way of people might have interest in the entire business, but our focus was on the sum of the parts.

Primary focus of the strategic review with the sum of the parts.

And so you know we had conversations along the way have you know is it people that might have interest in the entire business, but our focus was on the it was on the sum of the parts.

During the strategic review.

Okay.

Speaker 6: And then, just stopping for a moment on the SEC change, Justin, I want to make sure we're crystal clear on what line items may have been impacted as we look back over the first nine months and then the guidance to come.

And then just stopping for a moment on the SEC change Justin can I want to make sure. We're crystal clear on what line items may have been impacted as we look back over the first nine months and then the guidance to come.

Can you just walk through that yeah.

Speaker 3: It's really two wide items and we certainly can help you with the models going forward, but there were two areas. It was the accident contract and PCMAG that we've moved back up.

It's really two line items and.

We certainly can help you with the models going forward, but there were two areas. So it was the exited contract N. P. C. M. H that we've moved back up and then it was termed leases and and both of those.

Speaker 3: and then it was termed leases and and both of those you know the exited contract will be throughout the year the term lease ended in q1

<unk> exited contract will be throughout the year.

Term lease ended in Q1.

Speaker 3: And again, as you know, these were highly talked about, especially the exit and contract and all fully disclosed. So this is no new expense.

And again as you know these were.

Highly talked about especially the exited contract and.

All fully disclose so this is no new expense.

Speaker 3: It's just being moved from below the line back into our non-GAAP reporting.

It's just being moved from below the line back into our non-GAAP reporting.

Speaker 3: And the good news is that we've been able to reimagine that contract and are in later stage conversation with better pricing and none of these expenses are going to recur for us in 2024.

And the good news is is that we've been able to re imagine that contract.

And are in later stage conversation with better pricing and none of these expenses are going to recur for us.

In 2024.

Okay loud and clear on that and then just turning to the segmentation.

Speaker 6: clear on that. And then just turning to the segmentation.

Speaker 6: Talk about life sciences and the macro pressure. Has that business returned to sequential growth or can you give us a little bit on?

You've talked about life sciences in the macro pressure has that business returned to sequential growth or can you give us a little bit on what the current state of affairs. There is.

It has.

Speaker 3: It has. We grew nicely from Q2 to Q3. And first of all, that division has been incredibly resilient this year in a tough market. So maybe if I start there, they've done very well. We aren't down year over year slightly, whereas the market is all down double digits.

We are we grew nicely from Q2 to Q3 and and first of all that that that division has been incredibly resilient. This year in a tough market. So maybe I start there they've done very well.

We arent down year over year slightly whereas the market is all down double digits are we.

Speaker 3: We grew about 15% sequentially.

We grew about 15% sequentially and and we expect a two.

Speaker 3: And we expect a, you know, 20% plus growth, again, sequentially from Q3 to Q4. But as you know, that number is like, is often even higher. And we just wanted, it's still a tough market out there. So we will definitely have growth in Q4. We just want to be somewhat conservative because it is a tough market still.

20% plus growth again sequentially from Q3 to Q4, but as you know that number is like is is often even higher and and we just want it it's still a tough market out there. So we will definitely have growth in Q and Q4.

Wanted to be somewhat conservative because it is a tough market still.

Do you believe you're gaining share in that marketplace.

We do.

Speaker 3: We do. We think that our assets and our programs perform very well, which is the reason why we get buyups in the back half a year. The reason why our Q4 and Q3 grow over Q1 and Q2 is because we perform better and then we get more share.

We think that that.

Our our assets and our programs performed very well, which is the reason why we get buy ups in the back half of the year. It's the reason why our Q4 and Q3 grow over Q1, and Q2 is because we performed better and.

We get more share.

Thank you and then maybe a last one is just the segment growth levels.

Speaker 6: And then maybe a last one is just the segment growth levels for the other segments. Can you give us the detail there?

For the other segments can you give us the detail there.

Yes, the so.

It would be so enterprise will be slightly down single digits.

Speaker 3: It will be so enterprise will be slightly down, you know single digits Then our provider business will be up about 10%

And then our provider business will be up.

About 10%.

Sequentially.

Speaker 6: When you say will be, you're talking about the quarter we just saw.

When you say, well and again I'm talking about.

The quarter, we just saw.

Yeah, just the quarter when the Q comes out you'll see at all yeah.

Speaker 3: Yeah, just the quarter. When the cue comes out, you'll see it all. Yeah.

Speaker 6: Right, but that's roughly where we were for the quarter we just saw and I assume no specific commentary on Q4.

But that's roughly where we were for the quarter, we just saw and as Jim noted specific commentary on Q4.

No no specific comments other than the guide that we presented in and I just want to reiterate that.

Speaker 3: No, no specific comment other than, you know, the guide that we presented, and I just want to reiterate that in our EBITDA guide, even with the, call it a headwind of adding additional expense to our non-GAAP measures, we're going to have another record EBITDA margin in Q4.

And our EBITDA guide, even with the call it a headwind of of adding additional expense to our non-GAAP measures, we're going to have another record EBITDA margin in Q4.

Alright.

Okay. Thank you very much.

Thank you.

Yeah.

And our next question will come from Richard close with Canaccord Genuity. Please go ahead.

Speaker 1: And our next question will come from Richard Close with Canaccord Genuity. Please go ahead.

Speaker 7: yet uh... thanks for the questions just uh... uh...

Yeah. Thanks for the questions just a.

Speaker 7: With respect to the SEC non-GAAP change, are the historical numbers restated? Just wanna be clear there.

With respect to the S E C non-GAAP change or the historical numbers restated just.

Wanted to be clear there.

There there is not a restatement it is updating the table's year over year and so the answer is yes, and if you looked into the footnotes, we lay it all out.

Speaker 3: It's not a restatement, it is updating the tables year over year, and so the answer is yes, and if you look into the footnotes, we lay it all out, not only for the first half of this year, but we do the same for 2022 as well.

Not only for the first half of this year, but we do the same for for 2022 as well.

Okay, and then with respect to you talked about some significant.

Speaker 7: Okay, and then with respect to you talked about some significant or I guess double digit wins earlier in.

Double digit wins.

Earlier and in response to David's question double digit wins in the third quarter, how should we think about the launch of those wins is that like January so we'll see the lives.

Speaker 7: response to David's question, double-digit wins in the third quarter. How should we think about the launch of those wins? Is that like January so we'll see the lives?

Speaker 7: uh... you know come in and in in January and is it uh... number of lives you're thinking you know greater than the number of lives you saw this year year-over-year

You know come in then.

In January and is it.

The number of lives you're thinking greater than the number of lives you saw this year year over year.

Yeah, I think Hey, Hey, Richard this is Jeff.

Speaker 2: Yeah, I think, hey, Richard, it's Jeff, we'll have the majority in the first half of the year, like we always do. But like, for example, the account we won yesterday is a 5-1 start and we have 7-1 starts as well. And I would imagine there'll be some 10-1 starts.

Well, we'll have the majority in the first half of the year like we always do but like for example, the account we wanted yesterday's a five one start and our and we have seven one starts as well and I would imagine there'll be some 10 one starts.

Speaker 2: as we close out the year. And so, yes, we feel like we're in line with, you know, our growth in covered lives from 23 into 24.

As we as we close out the year and so yes, we are you know.

We feel like were in line with our growth in covered lives from 'twenty three 'twenty, four and and then Youll see starts throughout the year, but a lot of it front half loaded.

Speaker 2: and then you'll see starts throughout the year, but a lot of it front half loaded.

And just to be clear.

Speaker 7: And just to be clear, are those Sharecare Plus or Sharecare, you know, the basic platform?

Sure care plus or share care.

Yeah.

For them.

It's a mix.

Speaker 2: It's a mix. So we're still, you know, we're selling new Sharecare Plus accounts and we're continuing to win the wellness accounts. We had one of our competitors in the space merged with a TPA. So that's given us some good tailwinds that, you know, that so, you know, of.

It's a mix. So we're still you know where were selling new share careplus accounts and we're continuing to win the wellness accounts, we had one of our competitors in the space.

Merged with a tpa so that's given us some good tailwind that you know that so you know of.

Of being a standalone provider being part of a tpa has given us some good momentum on the wellness side, which we love that business because it gives us the land and expand opportunity.

Speaker 2: of being a standalone provider, being part of a TPA has given us some good momentum on the wellness side which we love that business because it gives us the land and expand opportunity.

Speaker 7: Okay. Excuse me. With respect to the management transition, do you see any, you know, expect any de-emphasizing the employer market at all and more focusing on the managed care market or any thoughts there would be helpful?

Okay.

Excuse me.

With respect to the management transition do you see any.

Expect any deemphasizing the employer market at all and more focusing on the managed care market or any thoughts there would be helpful.

No I think there is like this is a pure our offense move and as I said, Brent and informed.

Speaker 2: No, I think there is like, this is a pure offense move. And as I said, Brent's an informed

Speaker 2: board member, you know, joining the team and obviously has incredible strength in the MCO market and on the payer side, the exchange side, I think is going to bring us a lot of upside opportunity, but definitely sees the benefit in the employer side as well. And so...

Board member joining the team and obviously he has incredible strengths in the M. C O market and on the payer side. The exchange side I think there's gonna be bring.

Bring us a lot of upside opportunity, but definitely sees the benefit on the employer side as well and so yeah.

Speaker 2: Yeah, so no, we're not de-emphasizing anything. I think it's going to allow us to just be more aggressive on the payer side, but we'll continue to work really hard to, you know, win employer business.

So no we're not de emphasizing anything I think it's going to allow us to.

Just to be more aggressive on the payer side, but well continue to work really hard to you know.

Lynn employer business.

With respect to the discussion on the value based care looking more can you go into.

Speaker 7: With respect to the, you know, discussion on the value-based care, looking more at that, can you go into a little bit more detail exactly what you would be doing on that front? That would be.

A little bit more detail exactly what you would be doing on that front that would be helpful.

Yeah. So basically if you think about what share carriers overall is our technology as a risk management platform.

Speaker 2: Yeah, so, you know, basically, if you think about what share care is, overall, is our technology is a risk management platform. And so,

And so you know we're using the technology working with clients to figure out how they can better manage risks and how we can get financial alignment with them and one of the benefits of share carriers that we have a lot of data from our clients and just tons of data.

Speaker 2: using the technology, working with clients to figure out how they can better manage risk and how we can get financial alignment with them.

Speaker 2: And one of the benefits of shared care is that we have a lot of data from our clients and just tons of data. Self-reported data and device data and claims data and SDOH data and some examples, medical record data.

Alf reported data and device data and claims data and S. T O H data and some examples of medical record data.

Speaker 2: And whether it's the GLP-1s or it's in-home programs, we're sitting with those clients and we're looking at ways that we could go at risk with them and manage certain percentages of their populations where we think our services could have impact.

And whether it's a G L P ones or it's and home programs, we're sitting with those clients and we're looking at ways that we could go at risk with them and manage certain.

Percentages of their populations, where we think our services could have impact.

Speaker 2: And so you'll see certain carve outs coming from some of our clients in 2024, where we're going to go on the risk, meaning that we're not going to charge the traditional PMPMs for some of these populations, but have opportunities to get more of the upside based on our savings. And we're going to do that in a very measured approach.

And so you'll see certain carve outs coming from some of our clients in 2024, where we're going to go on the risk, meaning that we're not going to charge. The traditional P. M. P. M for some of these populations, but have opportunities to get more of the upside based on our savings and we're going to do that in a very measured approach.

Speaker 2: And so, you know, one is like, we've always wanted to get to this point, but we needed to have confidence in the data.

And so you know one is like we've always wanted to get to this point, but we needed to have confidence in the data.

Speaker 2: which we think we now have some really good trend lines. And then, you know, going forward, we want to be able to participate in bigger dollars and we want to get better strategic and financial alignment with our clients. And you're going to see that in 2024 on a limited basis where certain carve-outs of certain populations where we think shared care can have the greatest impact.

Which we think we now have some really good trend lines and then you know going forward, we want to be able to participate in bigger dollars and we want to get better strategic and financial alignment with our clients and youre going to see that in 2024 on a limited basis, where certain carve outs of certain populations, where we think share care can have the have the greatest.

Impact.

Yeah.

Speaker 7: Okay, final question on the proposal by Clara toss and the board review is there any timeline that you can provide us in terms of.

Okay final question.

On the proposal by clearer paths and the Board review is there any timeline that you can provide us in terms of.

Speaker 7: you know, when you expect that to be complete.

You know when you expect that to be complete.

Yeah.

Speaker 2: Yeah, I don't I don't have a firm timeline, but what I can tell you is that is that we're committed to a, you know, working through this as quickly as possible.

I don't I don't have a firm timeline, but what I can tell you is that a is that we're committed to a.

Working through this as quickly as possible because as you know.

Speaker 2: You know, we had a fairly lengthy strategic review and and in this example in particular, you know, you know, Clara tosses extremely informed. And so, you know, we're we're we're working through this quickly. We wanted to get through the quarter. We wanted to get Brent on boarded as as a new CEO and we're turning our attention fully to this.

We had a fairly likely strategic review and and in this example in particular you know Caritas has extremely informed and so you know what.

We were working through this quickly we wanted to get through the quarter, we wanted to get Brent on boarded as a as a new CEO and we're turning our attention fully to us.

Alright, and are you precluded from executing on the share repurchase and as a review proposal reviews going on going on.

Speaker 7: All right, and are you precluded from executing on the share repurchase as that proposal review is going on?

Speaker 2: We have windows of opportunity where we could repurchase shares that we're evaluating.

We have windows of opportunity, where we could repurchase shares that we're evaluating.

Okay. Thank you.

Thanks.

Okay.

And next is a follow up question from David Larsen with <unk>. Please go ahead.

Speaker 1: And next up is a follow up question from David Larson with BTIG. Please go ahead.

Speaker 4: Hey, Jeff, I just wanted to make sure that I heard you correctly. I think you're still going to be involved in the day-to-day activities of the business. You're going to work, you know, through this transition with the new CEO and guide him. So you're not going anywhere, right?

Hey, Jeff I, just wanted to make sure that.

Heard you correctly, I think you're still going to be involved in the day to day activities of the business you're going to work.

Through this transition with a new CEO and guide him.

So youre not going anywhere right.

No no.

Speaker 2: No. I'm going to focus on where I think I can help the company the most, and that's in product development and strategy and clients and evangelizing, all the great things that I know Brent's going to bring to the business. But I plan on being very active.

I'm going to focus on where I think I can help the company the most and that's in product development and strategy and clients and evangelizing.

You know all the great things that I know Brent is going to bring to the business, but I I I plan on has been being very active.

Okay, great. Thanks.

Yep.

And this concludes our question and answer session I'd like to turn the conference back over to Jeff Arnold for any closing remarks.

Speaker 1: And this concludes our question and answer session. I'd like to turn the conference back over to Jeff Arnold for any closing remarks.

Well. Thank you in closing I want to reiterate that we are very pleased with our financial performance this quarter, and we're confident and sure care today and into the future and the board and I are delighted that Brent has agreed to become our next CEO and.

Speaker 2: Well, thank you. In closing, I want to reiterate that we are very pleased with our financial performances quarter. And we're confident and share care today and into the future. And the board and I are delighted that Brent has agreed to become our next CEO .

Speaker 2: And my role as executive chairman, I'm looking forward to working with him and combining our respective areas of expertise to continue to deliver enhanced value for Sharecare's users, customers, and shareholders. And we appreciate your time and interest this morning. Thank you. I hope everybody has a great day. Take care.

In my role as executive Chairman I'm looking forward to working with him and combining our respective areas of expertise to continue to deliver enhanced value for share carriers' users customers and shareholders and we appreciate your time and interest this morning.

Hope everybody has a great day take care.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.

Speaker 1: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your line.