Akili, Inc. (NASDAQ:AKLI) Q3 2023 Earnings Call Transcript

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Rahul Rakhit: Understood. Appreciate that. And 1 or 2 more from me. I know we talked about this before but with the COVID-19 emergency mandate ending, I think, in the next week or more. I just wanted to clarify that with the 510(k) form that you guys submitted, you’re now still able to continue providing Endeavor OTC to adult patients? How does that really work?

Scott Kollins: Yes. So per the guidance that the FDA issued around the transition out of that enforcement discretion we’ve sort of met the requirements. So we submitted our 510(k) before the deadline which was November 7. And while it is under review, we are able to continue to market until we hear something back from them.

Rahul Rakhit: Got it. Really appreciate it. And then the last one for me was I know on the last call, you kind of mentioned the percentage of subscribers that play the full recommended 25 minutes as well as those, the monthly retention. I was wondering if you could just kind of comment on those metrics for this quarter as well.

Matt Franklin: Yes. Those continue to remain strong and healthy, in line with those that we presented last time. And again, in line with comparable benchmarks. Clearly, that will also be an opportunity for improvement over time. But yes, it remains healthy.

Operator: [Operator Instructions] Next question is from Charles Rhyee from TD Cowen.

Charles Rhyee: I just had one more follow-up question. Obviously, we’re seeing good traction in terms of subscribers. I guess 2 questions, probably still short. Not a long time to have a good sense but in terms of sort of the average length of subscription, how would you — how should we think about that in terms of people coming on board? And then secondly, is sort of the directional increase of new subscribers? Is this — should we think of it sort of linearly growing? Or do you — or given sort of your expectations on outreach, would you expect that to maybe accelerate at a faster pace? In other words, how should we think about, I guess, revenue growth and subscriber growth over the next coming periods?

Matt Franklin: Yes. So we have not provided guidance on revenue for 2024 nor have we provided forecast for demand going forward. From a characteristic perspective, as Santosh mentioned, as I’ve mentioned, our focus is going to be deemphasizing growth for the sake of growth and focusing more on optimizing profitability, right, on that user economic basis. So I’ll again point towards those comments as far as setting expectations for how rapid growth will be. Santosh also provided guidance on our operating expense expectations for next year. So that could potentially help you there. From the retention and renewal perspective, really, honestly, too early. We have just a few months. Every single month, more and more users come up for renewals.

So we are really still learning and gathering data. Clearly, that could be helpful in the future and that is something we would hopefully be able to provide going forward. But bear with us here, let us get a couple of more quarters under our belt before we share any kind of expectations or detailed metrics around that.

Operator: [Operator Instructions] There are no further questions at this time. Please proceed with any closing remarks.

Matt Franklin: I think that’s great. Thank you very much for your time on the call and look forward to seeing next quarter.

Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.

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