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

Brent Layton: I’d say on the employer, clearly as I mentioned, GLP-1s have been a brilliant topic to discuss, top of mind. And before I took over CEO, Jeff and team were already on it. So, to be able to move quickly and to be able to go live soon with a new existing customer and to have that conversation and be there for our current customers and new ones very much a part of that. But at the same time, it’s making sure that our technology is meeting the needs of employers and that’s one thing that I’ve enjoyed meeting these meetings and sitting in these best and finals and make sure that we are meeting their needs and what they’re looking for. And what I’m finding is our approach to our digital front door, what I am finding is our approach in coaching as well as advocacy is meeting their needs.

In a lot of ways, we just have to listen to our customer and make sure we are articulating correctly what we’re doing because we do have a lot of ways the solution for that but at the same time is getting to know partners or future partners and making sure we meet their needs from that standpoint. In regards to MCOs, like the MCOs have, at the end of the day, are incredible. I’ve been in the industry for 30 years and I think a lot of people forget the great impact that they have. But there are certain places that companies like Sharecare can come in and bring assistance. Navigation is one, being able to help people access benefits and access services, to be able to have an impact on proper utilization and to be able to focus on care gaps. There’s all types of areas of all types of MCOs I’ve had discussions with.

But in talking to Medicaid MCOs whether it’s navigation, but more importantly what they want to make sure is that members get all the care they should. And I believe that our technology and our ability to get people on our platform and to receive service and care, we can do just that. I look forward to how we’re going to be judged by MCOs down the road, because I’m confident they’re going to want to work with us in regards to our navigation tool, but more important they’re going to make sure that we have outcomes. And I look forward to over the coming quarters to report those outcomes to you to show you that we’re having a positive impact on people’s lives. And I know that I’m going to be held to a high bar by MCOs and by you and by others and I look forward to that challenge.

Craig Hettenbach : As a follow-up in the employer market, I think before your arrival there was a big investment in terms of sales force and just building out kind of that sales infrastructure to execute. Do you think you have the right go to market? Are there things you’re also going to tweak there in terms of where you’ve invested to grow that business?

Brent Layton: Absolutely. We have the right go to market. I think in a lot of ways, it’s just sales discipline at the end of the day and focus on how to scale. And that’s a lot of ways it has to do about how we responded at RFP, are we listening and properly answering the question that our client wants. At the same time, are we finding the solutions to help them do better and the outcomes they wish for and to be able to go in there and properly be a partner. And a lot of that is just overall sales discipline and to be able to really be in that role for well over 2 decades have a pretty good insight to that. And I’m really good at listening to customers and helping them get to where they’re going. So absolutely, we have what we need here.

It’s a matter of listening to our customers and acting upon it. And I think that discipline and that skill is we’re going to get sharper and sharper. We’re going to focus on it. One thing at the end of the day, I like to win and I like to have an impact and that’s where we’re going to go in sales.

Craig Hettenbach : And then just last question for me, understanding you’re not providing guidance, but at a high level, any kind of headwinds or tailwinds you would call out kind of by business segment this year to keep in mind?

Brent Layton: Justin, I’ll let you go with that one, sir.

Justin Ferrero: Yes. Are you referring to 2024 or 2023?

Craig Hettenbach : Yes. Ex the customer dispute, just how you’re thinking about the underlying trends by segment for this year?

Justin Ferrero: I think you can see in our Q4 that we had a record year at provider. We expect that to continue. We performed very well at life sciences in a down market. We’ve talked about that a few times, Craig. And so, we expect that to continue. So, it’s really the headwinds is around primarily this disputed contract. And I think that Brent’s laid out a lot of opportunity in his 1st 90 days that we’ve started to execute against. And so ultimately there’ll be a little bit of lag in the front end which is what I commented on as we work through the dispute. Hopefully, that can get done sooner than later. but I think we’re going to be teed up very, very well as the other two assets are performing great. We would as I noted in my comments, we would have had really incredible quarter in Q4 if it wasn’t for this disputed contract.

We would have been at the high end of well over the high end of the guide. We were at the high end of the guide for the year and right in the middle of the range for EBITDA. So, it was all cylinder systems go, but we have this one issue and we’re working hard to resolve it. So, once we get through that, the future is really bright.