Sharecare, Inc. (NASDAQ:SHCR) Q4 2023 Earnings Call Transcript

Justin Ferrero: No, it’s not. We expect definitely for Q1 to have a similar impact. So, there is still noise. Obviously, we’re working to resolve the dispute, But until that has been fully agreed upon then we expect to continue to see an impact to the P&L. So that yes, you can expect that in Q1 as well.

Richard Close: So, there’s similar magnitude?

Justin Ferrero: Similar magnitude.

Richard Close: Not given guidance.

Justin Ferrero: Yes, I’ve not given, yes. Similar magnitude, but we’re obviously hopeful that we can resolve the contract dispute. And we’re actively having conversations around that, but it is of significant magnitude and so we’re working hard to resolve it. But I don’t have that timetable set as we sit here today. So, it’ll impact us in the first half of the year. But as Brent talked about earlier, he has a lot of opportunity that he has brought in a very short time, in his 90 days. And we’re going to start seeing that come online starting in Q3. And so, I just want to reiterate the impact that he’s had in a short time and that the future is bright for enterprise.

Richard Close: And then with respect to I guess the momentum in Medicaid, Medicare exchange business and then you’re talking about reliable, profitable customer base going forward. Maybe talk a little bit more about the opportunities on Medicaid. I know you signed one contract, if you can give any details on that. I guess, it’s going live in third quarter. But is there also going to be any deemphasizing of the employer market? Are you like pivoting towards these government markets? How do we think about that? I know there’s a ton of questions in there.

Brent Layton: First and foremost, there’s no backing up for Employer One Bid. I’ve had the opportunity to be on a handful of best and finalist meetings with hopefully potential customers and I have visited with current customers. So, we’re not backing up from employers at all. In fact, I’m going to try and bring more and more discipline. At Centene, I had the opportunity to be a part of 110 RFP wins, RFPs that sometimes were 10,000 pages and very complex. I was in finals meetings and did all types of business development and so forth, did that for 2 decades. And I’m going to try to make sure that we have the very best RFP procurement business development approach there is. And that’s something you should hold me accountable for.

And we’re going to focus that on employers. We’re going to focus that on government. I absolutely believe in public private partnerships and I believe our technology brings all types of solution to state governments throughout this country. And in regards to Medicaid, look at the end of the day, there is a lot of opportunity within Medicaid. Even though the redeterminations are out there, there’s still roughly 80 million plus people in Medicaid in this country. And we’ve been able to develop something very unique with our navigation tool, trying to make sure and I’ll freestyle with you for a moment, Richard, so that Medicaid recipient knows that the provider that’s nearest to them, that’s in network is 3 miles away, that they’re open four days a week, that they close at 4:00 o’clock, that the providers actually speak Spanish, and that they will actually schedule appointment for you immediately online.

That the nearest grocery store is 4 miles away and that ultimately you know that grocery store will take your SNAP benefits. And for all the governmental programs and all the non-profit groups that exist out there better known as Social Determinants of Health that ultimately you have a dynamic directory, so people can see about them, interact with them and contact them. That’s the creativity, that’s the innovation you should expect of Sharecare. I was sure looking for that back in my old job and I’m honored to have it here today. In regards to the Exchange, I think anybody who knows me by history, I’m a huge advocate of Exchange and a huge advocate of things that are going on with the Exchange. I can remember three short years ago, the change overall was somewhere around 8 million to 10 million.

Today, there’s 21.3 million people in the Exchange and growing. Between the data that we have, the technology we have and the innovation we have, you should expect us to see us involved in that. And you also should see us involved with acronym as that begins to take hold from small group to large group from that standpoint. And yes, we’re talking to Medicare MCOs as well. And I’m very proud that we are being creative in other lines of insurance like reinsurance as I imagine. And talking to my staff, we sat down and said, look, I’m trying to bring creative ideas. What other creative ideas do you have? And they brought the ideas of reinsurance and then value-based. My old job, I did a tremendous amount of value-based contracting. And I can say that we have talked to some of and we are going to work with some of the largest value-based risk assumption companies that are out there.

In a lot of ways, if we didn’t have CareLinx, we wouldn’t be able to do it. But since we do have CareLinx, we can focus on post-acute. We can help people receive the right care they can in their home. We can stretch out that savings and more importantly have positive outcomes. The assets that Jeff and team has put together from life sciences to provider to enterprise platform close quite well together and the modern healthcare system and that’s why at the end of the year, I’m glad to hear, I’ve been here 90 days and I look forward to watching this really company evolve and grow.

Operator: And our next question comes from Craig Hettenbach from Morgan Stanley.

Craig Hettenbach : Great. Thank you. Brent, maybe just building on some of the discussion just now in terms of just the customers meeting you’ve had and just anything tangible as to kind of what you’ve identified as where you need to execute or how you kind of put this into plan if you will?