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

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Jeff Arnold: Yeah. We are being conservative across all guidance. Yeah, I think, we probably — we might have had our largest day ever yesterday in Life Sciences with our bookings. But as David mentioned, there are some — the macro environment issues in Life Sciences is real. I did a talk last week in New York at one of the big ad agencies and that was the topic of the day, that’s kind of like what’s the environment look like and when is the bounce back going to occur, is it this year or not. But we have a great team. We are seeing some positive results as like I mentioned yesterday. We typically have a really great Q4, but we thought, because we are taking a conservative approach as we go through the strategic review and other things that, that this was the — holding serve was the right way to think about it for now.

Justin Ferrero: Yeah. And just to reiterate some of those comments. So when we were coming back strong on those — the calls you are referring to, it was — it’s really kind of first half, that’s when you are selling — the selling season, primarily around the first half of the year. The reason why we want to be conservative is, as you know, is that about 35% of this business is realized in the fourth quarter and so until we have really solid view on what Q4 is going to look like, we think the prudent approach is to be conservative until Q4.

Jeff Arnold: And have more visibility throughout.

Justin Ferrero: Yeah. We will have more and more visibility on how Q4 is going to come in.

Richard Close: Okay. And with respect to Elevance or the old Anthem, I think, back when you guys originally de-SPACked , you talked about there was a 10-million lives opportunity with Elevance in terms of clients they had where there were multiple payers, I guess, insurers in those employers. Can you just talk to us a little bit about like that 10 million number and maybe where you guys are with upselling or penetrating that base?

Jeff Arnold: Sure. Yeah. So I think this is an important relationship and it’s multifaceted. So one part of the relationship is we provide AI services to Anthem and that’s going well and Jaffry leads those efforts for us, but that’s an important part of the relationship. And then the second important part of the relationship was they invested in Sharecare and we had to show them that we could take those dollars and we could build a better advocacy solution that’s in the market and we think we have done that. And why we think we have done that is Carillon moved 500,000-plus members over to our platform and so we are going through that execution now and that’s a ton of work, but we are building confidence, I think, with them and us and how we can work well together.

And then the next piece was how could we bring on a big important client like Coke Industries and that is one of their clients and be able to have flawless execution with a new product offering. So we launched Sharecare+ to Coke in partnership with Anthem, that would fall in that national accounts category that you are talking about and have done really well rolling that out starting in January. So that builds confidence. And then it’s — and then we have — we are starting to get better muscle memory on how to include Sharecare into national account RFPs. We are getting better on how to think about things like Deal Desk, where how do we approach clients separately or together. And we expect that more business is going to come over and it already has through Carillon, from where we started in Q4, we have already onboarded new big, important clients.

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