Sharecare, Inc. (NASDAQ:SHCR) Q4 2022 Earnings Call Transcript

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David Larsen: Okay. So on the consumer side, I think, the whole industry is facing a slowdown, ad revenue is under pressure. There’s the risk of a recession, so belts are tightening across the Board. So quite frankly, that’s in line with what’s going on in the market and that makes sense to me. On the Provider side, it looks like very healthy growth, Provider records expected to increase 12% year-over-year in 2023 despite all the pressures that hospitals are under. And then on the enterprise side, it’s what’s booked right now and maybe the PMPM rate on Carillon is coming in a little bit lower than expected for now. Can you talk a little bit about how many more lives there are that you could potentially sell into Elevance and Carillon, I mean, it’s great you have a couple of hundred thousand lives there, but it’s my understanding that this is kind of just the beginning, is that right?

Jeff Arnold: Yeah. Yeah. So we have over 500,000 covered lives at the start and so it’s — we are out of the gates, we think really strong with a new offering and that’s across multiple clients and we do see growth coming from that partnership. And we are extremely focused on the execution of how do we improve the margin, how do we price the PMPMs the right way to the different clients leaning with a more digital-first approach. So just to give a little color on that, it’s 500,000-plus multiple clients with different approaches to each client based on the different services that we are offering and we believe that we are just getting started with that partnership.

David Larsen: Okay. And then just one more for me and I will hop back in the queue. I think you mentioned that the pipeline is up, but could you say like 100% year-over-year and the number of RFPs are up around 100% year-over-year. Any color on what impact sort of the volatility in the banking sector that we are seeing is having, it seems like the labor market is still very strong, but people are a bit worried about the risk of a slowdown. Is that having an impact on the sales process, just any color there on timing for deals?

Jeff Arnold: Yeah. Yeah. I think when you kind of think about our enterprise sales is, one part of our strategy is we have very large clients that we are always working with to expand with. I think Carillon is a great example of that. On the MA side, we have good examples there as well. And then the second piece of our strategy is, we are investing in new salespeople. We have built an unbelievable sales team.

David Larsen: Yeah.

Jeff Arnold: We had a big sales meeting last week, I was with all of them and so they are out bringing the Cokes and the Colliers on, leading with the Sharecare+ pitch and building a big pipeline and giving real confidence to us. Our core offering of the digital front door, the digital therapeutics, the advocacy and the home care as there’s a big demand for that, and it’s differentiated as having it all in one place. And then you complement what I just said there, and you look at our account management, we are doing an amazing job on client renewals. I mean CareFirst is our second largest client. It’s tens of millions of dollars and we are successfully able to renew them for multiyear. And then, lastly, when I look at like Lennar Homes, it’s kind of like what our dream client looks like, it’s a land and expand.

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