Sharecare, Inc. (NASDAQ:SHCR) Q2 2023 Earnings Call Transcript

Jeff Arnold: Well, yes. So we’re doing a lot of research right now on once we’ve developed this solution for B2B, which is the combination of RealAge Eat Right Now, our advocates and some incentive strategies is would that be an interesting life science offering as well. And as you know, we have a zero party database of over 100 million people. It’s kind of the power of what powers our life science business and many would qualify and the demand is obviously quite high. And so we’re thinking through different life science offerings for not only enterprise but direct to consumer.

Eric Percher: Is there any historical analog that’s been similar? I kind of think back to the hep C products that are quite different. Have you ever seen a launch that got this type of employer interest, payer interest?

Jeff Arnold: Our demands off start, it’s — I can’t think of anything off the top of my head. I mean, the demand is massive. And so you’ve got all — you’ve got massive consumer demand, you have obviously a cost issue then you have this is a forever drug, and so you need behavior change programs with it. And so we’re excited about it. I mean, we have — as I said, we’ve got the RealAge program. We have a perfect weight loss solution in Eat Right Now. We’ve got the infrastructure with the advocates. And so we’re just thinking through how do we package and price the offering and how can we get to market by Q1.

Eric Percher: Yes. And I guess my question is a little bit more of have you done this before in other categories where a new product, obviously the opportunities larger here, but is there a good example of having executed on this before?

Justin Ferrero: Well, I mean, I would just add one is, when we launched advocacy, we went from essentially zero lives to close to 1 million, and that has to be one of the larger more successful launches. We are very happy customers in that. That’s —

Jeff Arnold: Probably remain.

Justin Ferrero: Yes. That’s not an easy task. We weren’t in that business this time last year and we have close to million lives on our advocacy platform today and very happy customers.

Jeff Arnold: Yes. And doing the crossover sell is like; we know how to do that between enterprise and life sciences. So for example, our Eat Right Now, our Unwinding Anxiety is both B2B and B2C. And this quarter we launched CareLinx, we launched CareLinx B2B and B2C. So we’re using life sciences now to promote CareLinx direct to consumer, similar to what we’ve done with MindSciences.

Eric Percher: Great. And my other question was on the life sciences business, and Jeff, you’ve obviously seen a few cycles. I’d love to get your view on the macro trend here and what enables you to put up a flat and a down market, and then Justin, understanding we’re going to see a — an increase in Q3, Q4 is typically that seasonally large quarter. How does this what you’ve seen year-to-date make you feel about Q4?

Justin Ferrero: So I can — I’ll start with that is that we’re number one, as I talked about for Q3 is, we’re going to see growth from Q2 to Q3, and that’s — it’s not trivial growth. So we’re bullish as we sit here today. At the outset of the year, we were conservative in our guide, right? And so we think we factored in most of a year that we were anticipating headwinds. But there could be more pressure. Again, we talk about it a lot, but we don’t really know until we get into the quarter, we’re confident that there’ll be growth in Q4 and it’s just a matter of how much, but we know that sequentially we’re going to grow into Q3 and into Q4 and if we — do we hit the target exactly, I’m not sure, but we feel very confident in our range across our business for the year, which is why we reiterated guidance today.

Eric Percher: Got you.