Sharecare, Inc. (NASDAQ:SHCR) Q2 2023 Earnings Call Transcript

Justin Ferrero: Yes. So two things, Dave is, we’re going to achieve, as I said in the opening remarks, the $30 million in savings this year. But that EBITDA expansion isn’t just from driving efficiencies around cost, it’s all around top-line growth as well. And we’ve spoken historically about Q3 being the largest quarter historically for our provider channel Q4 is always the largest quarter on the provider — on the life sciences business. And then I touched on it in the opening remarks that life science sequentially grows from Q2 to Q3. So it’s really a combination of driving top-line growth across our channels as well as at the same time realizing the LION’s share of the benefits of all that optimization work that we’ve done from year-to-date. The majority of that is going to hit our bottom line in the second half of the year. So it gives us really good confidence in achieving the targets for this year.

David Larsen: Okay. And then, for CareLinx, is there any reason why CareLinx could not be expanded into other plans beyond Medicare Advantage? It seems to me like there’d be a huge need across commercial plans, Medicaid plans, employer groups, like just any thoughts on the growth there, please?

Jeff Arnold: I think we’re in active conversations across all those channels. We had a good success story that I mentioned in my script with one of our large employers on the commercial side utilizing CareLinx as an employee benefit. We’ve expanded beyond our one large pair into our first Blues plan and we’re in active conversations with MA with Medicaid and with health systems. Do you want to add anything that Jaffry?

Jaffry Mohammed: Okay. Yes. The one thing I’ll add David is our hospital readmission program very well received by lot of risk takers that include the ACOs and health system. So as Jeff said, I mean the GTM that we have the go-to-market plan for CareLinx include all the channels that you mentioned.

David Larsen: Okay. And then just one more for me and I’ll hop back in the queue. Jeff, I liked hearing about all of the sort of cost savings data that Sharecare is providing to customers. I mean, is this something that you’re — you can bear risk on? Are you driving any revenue based on the amount of cost savings you can deliver to certain health plan clients? And I think you had talked about a white paper that you were going to publish. Just any additional color or thoughts that would be helpful?

Jeff Arnold: Yes. I think we’re having increased visibility with our data with our clients as we work with them more over time. So we’re collecting lots of data and we’re driving insights from that data and sharing it with our clients, which is giving us confidence in how to price. And today, we’re doing that through PGs, performance guarantees. But we see us moving more towards risk, measured risk over time, but it’s working very well kind of as we had hoped is get confidence in the data, generate the insight, deliver the capability and move from performance guarantees to more at-risk models. And that’s a constant conversation that we have with our clients as we see evolving with them over time.

David Larsen: Okay. And then I’m sorry, just one more from me. Can you comment on the competitive environment, like I mean, I’m thinking about American well, in particular, they have their converge platform Elevance is one of their largest customers. I mean just who are you bumping into if anybody in your largest customers? And it’s my understanding that you power Sydney for Elevance, which I think would give you a huge sort of competitive advantage. Just any thoughts or color on the overall market?