Sharecare, Inc. (NASDAQ:SHCR) Q3 2023 Earnings Call Transcript

Richard Close: Yes. Thanks for the questions. Just with respect to the SEC non-GAAP change are the historical numbers restated? Just want to be clear there.

Justin Ferrero: There — 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.

Richard Close: Okay. And then with respect to you talked about some significant or I guess double-digit wins earlier 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 come in in January? And is it number of lives you’re thinking greater than the number of lives you saw this year year-over-year?

Jeff Arnold: Yes. I think — hi, Richard this is 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 as we close out the year. And so yes, we feel like we’re in line with our growth in covered lives from 2023 into 2024. And then you’ll see starts throughout the year but a lot of it front half loaded.

Richard Close: And just to be clear are those Sharecare+ or Sharecare the basic platform?

Jeff Arnold: It’s a mix. It’s a mix. So, we’re still — we’re selling new Sharecare+ accounts and we’re continuing to win the wellness accounts. We had one of our competitors in the space merge with a TPA. So, that’s given us some good tailwinds that — so — 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.

Richard Close: Okay. 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.

Jeff Arnold: No. I think there is — like this is a pure offense move. And as I said Brent have formed Board member joining the team and obviously has incredible strengths in the MCL market and on the payer. The exchange side I think is going to be — bring us a lot of upside opportunity but definitely sees the benefit in the employer side as well. And so — yes. So no. We’re not deemphasizing anything. I think it’s going to allow us to just to be more aggressive on the payer side, but we’ll continue to work really hard to win employer business.

Richard Close: With respect to the 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 helpful.

Jeff Arnold: Yeah. So basically, if you think about what Sharecare is overall is our technology is a risk management platform. And so we’re using the technology working with clients to figure out how they can better manage risk and how we can get financial alignment with them. And one of the benefits of Sharecare 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. And whether it’s a 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.