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

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We started off, it’s a huge company, one of the largest homebuilders. We sell them the digital front door and we get more onboarding and engagement than they have got in the past, then they buy Digital Therapeutics, then they buy Sharecare+, then they buy CareLinx and we — and that’s just a dream sale for us. And we are teaching our salespeople how to approach all those deals in a similar way, because some of them are complex and take a little bit more time and some of them are straightforward that we can come in with a digital front door and land and expand over time. But the talent is there, the capability is there, the pipeline is there and they are converting, and we expect a big Q1 this year for next year and we already have some big wins under the tent that we haven’t mentioned on this call.

David Larsen: Okay. And then what kind of lift could there potentially be on the enterprise side in terms of you booking deals now in 2023 that would impact 2023 that isn’t in the guide. Could you book another couple of hundred thousand lives, 5%, 10%, do we have midyear starts, isn’t that kind of normal?

Justin Ferrero: We do and that is all possible. The — but we are taking the approach that we would like to keep with our guide and that’s potential upside, Dave. But, yes, historically, we have brought on new customers, like, for example, Carillon in the latter half of last year. But — we would like to take to keep with our conservative guide and those could be upside.

Jeff Arnold: Yeah. And what I would say the way, we think about that internally is, yes, there’s a potential for new logos and we have seen that historically in the past, not in the guide. Yes, there’s always potential for more upsells within current clients. That’s an active conversation on account management has every day with our clients. That’s not in the guide. And then one of our strengths is big deals and so what we learned last year on Carillon is that we had signed the SOW early in the year with an expected start date and it just took longer. And so we are tracking on some other large opportunities, but we are being conservative in saying, let’s think about that for 2024, but let’s work on it to make it happen in 2023.

David Larsen: Yeah. Okay. And just one last question, I am sorry, but from Elevance’s point of view, every time I hear them speak, all I hear them talk about is digital-first, expanding value based care, expanding the number of lives in upside and downside risk and you got to have

Jeff Arnold: Yeah.

David Larsen: technology solutions to be able to deliver that. Is there — has there been any change in that kind of dialogue or a viewpoint from their perspective that you are aware of or not?

Jeff Arnold: No. No. I mean, I think, Sharecare can play an enablement role in all those types of ideas and we are involved in many of those conversations and how we can help and participate. And Jaffry, who’s in the room with us on the call leads that effort for us and I don’t know if you want to add color to that?

Jaffry Mohammed: Yeah. No. You said it right, Jeff. And David, the opportunity exists on both sides of the business from Elevance standpoint, the business for fully insured, as well as for capitated risk business. So to Jeff’s point, we are engaging some of the conversations on either side and it does play a big part in what we do.

David Larsen: Okay. Great. And I would imagine from Elevance’s point of view, in order for them to retain their existing membership and win new enterprise clients, the Sharecare solution is certainly a key consideration on a lot of their prospective clients and existing clients have. So all right. Thanks very much. I will hop back in the queue.

Jeff Arnold: Okay. Thank you.

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