Sharecare, Inc. (NASDAQ:SHCR) Q3 2023 Earnings Call Transcript

But we are set up very well. All the effort that we put in this year, which is significant to take out an annualized $30 million of expense across the organization, we have executed against that. And you’re seeing it in the results, and that just is going to give us a nice tailwind as we go into next year.

David Larsen: Okay. I’ll hop back in the queue. Congrats on the good EBITDA.

Justin Ferrero: Thank you.

Operator: And our next question will come from Craig Hettenbach with Morgan Stanley. Please go ahead.

Q – Unidentified Analyst : Hi, guys. This is McCoy [ph]. Thanks for taking the question. And good luck — or good luck Jeff on kind of the next steps and congrats to Brent, on the new role. Just wanted to talk about Carillon. I know you kind of saw some pressure with PMPMs, earlier in the year. I just want to talk about how that relationship is going? And if you’ve kind of seen those PMPM stabilize? And then also just kind of as open enrollment started up again, I just wanted to see how Sharecare Plus engagement is going and if that’s kind of tracking in line with expectations. Thanks.

Jeff Arnold: Yes. I think its stay the course. Everything is kind of tracking on expectations. It’s kind of the same story as the last question, I answered is that, we’ve got current clients with Carillon that we’re executing against, which we believe become great reference sites for us and the results have been really good. And we have lots of opportunities within Carelon that we’re pursuing across both our Enterprise segment and our Provider segment. And things are staying the course. The platform is becoming more mature as time goes on. Awareness is growing with the brokers, which there’s been a big emphasis on this year of driving awareness at Sharecare Plus offers advocacy. And so we’re seeing an increase in the number of RFPs that are coming in the door.

The dialogue that we’re having with the brokers is kind of way up. We’ve seen some delays in decision-making but ultimately seeing the pull-through at the end of the day like we had one this week that we were a finalist. We did our finalist presentation six months ago and found out yesterday that we won that contract. But yes, I would say it’s business as usual.

Unidentified Analyst: Great. Appreciate that. And then just one more on kind of what Brent and this new CEO role means for the company. Just curious you talked about just the government programs that you guys are looking to grow into. Can you talk about the experience that Brent has at Centene and kind of how that relationship might help going forward?

Jeff Arnold: Yes. So I would say this has been a long time in the works for me personally is I feel like I’ve been recruiting Brent for five years initially to come on to the Board. And he had a kind of an unbelievable run at Centene was a part of that team, a big contributor as it grew from $300 million to $144 billion. And when I look at Sharecare we have a lot of success stories today in government-funded programs. The State of Georgia probably being the best example. But we’ll kick off next year another huge state account. We made a finalist meeting for a state just yesterday. And when I think about our community well-being index and I think about our kind of whole person strategy and I think of clients like Georgia that who’s been with us for 10 years, it’s just a massive growth opportunity for us not just within state health benefit plans but also within Medicaid, which obviously, I would argue that Brent might be the – maybe the best expert in the country on Medicaid, as well as Medicare Advantage.

So we have state health plans. We do business in Medicaid today. We have a couple of million lives already in Medicare Advantage. And Brent is coming with an informed view. He’s been on the Board for the last year. I think we share a passion and a vision of how do we use enabling technologies to improve well-being not only for individuals but for communities. And he’s bringing an amazing Rolodex to the team. And I’ve witnessed that personally just working with him as a Board member of doors that he’s opened with us. And I think, I speak for all of us we’re super excited about getting on the field with him in 2024 and growing especially within these government-funded programs.