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

Page 9 of 10

Jeff Arnold: Yeah. Yeah. I feel like there’s definitely you are starting to see both, obviously, first in the public markets a push — a pullback and I think now in the private markets. And a lot of it depends on what their cash position is, and so if they are sitting on a good cash position, they don’t want to come off valuations in the first conversation. And if they need — if there’s a need for cash, then that’s a different conversation, but I definitely think it’s a buyer’s market.

Eric Percher: And then the last question on consumer, I know that was always a business that you were thinking more 2023 or further into 2023. As the macro remains a challenge, what are your thoughts on timing for that asset?

Jeff Arnold: It’s a really important asset for us, because it, like for example, when you register for Sharecare, the first thing you do is you take the RealAge test and that’s one of the ways we get so many people to onboard. And so instead of doing a health risk assessment from your HR department, you come in and you learn your RealAge and we have this really great content that we then deliver you that helps you be better educated to lower your risk. And then we tie incentives to that like taking your RealAge and lowering your risk and so it’s an important component. And it’s also very tightly woven into Life Sciences. So we have a really unique asset in Life Sciences. And with cookies going away, this idea of a zero-party database where I have got 100 million people or I know their e-mail and they filled out 100 questions on RealAge.

And they have given me permission to talk to them, it’s a huge asset, whether we are helping our payer partners, recruit members or our hospital partners, recruit patients or us using that — their advanced targeting to get more members to enroll in our programs. And so through this strategic review, we have had several conversations and know there’s buyers of that business and we don’t think now is the right time to sell it financially because of where the market is at. But at the same time, we are also trying to understand it’s not as simple as, say, Provider where just give us the data rights. There’s a little bit more complexity here that still needs to be thought through and we are also hopeful that it’s going to bounce back as like, I mean, if you remember, what was it 37% growth in

Justin Ferrero: Yeah. 2021, if you remember, Eric, that asset grew 36% organically and then the market changed last year and went to essentially flat. But we have a great team. We have a great asset. And

Jeff Arnold: We have great optionality.

Justin Ferrero: And we have got — yeah. Great optionality. So hanging on to that asset a little bit longer, we believe we will only increase the value of that business.

Eric Percher: Would it be wrong to think that when you first announced this, there was a real focus on simplification and what you were just discussing around the core enterprise and today I am hearing a little bit more that you want to make sure you have ways to redeploy and focus on EBITDA, is that a change in your view?

Page 9 of 10