SHCR - Earnings call transcript Q4 2021

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Operator

Good day and welcome to the Sharecare Fourth Quarter and Fiscal 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers presentation, there will be a question-and-answer session. [Operator Instructions] As a reminder, this call may be recorded. I'd like to turn the call over to Evan Smith, SVP, Finance, Investor Relations.

begin. may You

Evan Smith

Finance morning questions. fiscal Good Mr. is to fourth Jeff an and SVP Sharecare's Smith, presentation, Chairman After Thank will Arnold, today's there earnings and call conference and be of I'm indicated, XXXX the to This and Investor call quarter Relations. as today's ask you. opportunity operator welcome and Leading and CEO; Evan Mr. webcast. are

and an Ferrero, the call recorded Justin our and is be will Officer. Chief Investor of on of today's Note archive available President Financial section website. today recording the being later Relations

Before the which this currently remind call to to Securities of on Act and Private we first safe the are you current to during year forward-looking various These be statements reflect guidance. beliefs, the and our statements quarter Litigation assumptions within Reform expectations made would subject XXXX begin, available our will forward-looking we uncertainties XXXX us. meaning information and of that statements risks provision based like includes our full of and certain harbor

Factors these the believe cause results to after filings reflect statements forward-looking to more in of call. the undertake materially in occur detail filings. section no Risk some that are our any could our statement with we Although to reasonable, revise including changes of Descriptions these from this factors will expectations that of we obligation differ actual the are discussed SEC,

company's that the measures on between to Mr. can now financial these we in Jeff. be non-GAAP hand In the on relationship performance. Jeff are the the measures press evaluating be certain to important Details historical over is please release I found discussing Please non-GAAP Arnold. ahead, financial call addition, to that like believe of go would conference most measures measures posted website. reconciliation and that the note will GAAP company the a comparable non-GAAP in

Jeff Arnold

joining our year-over-year capabilities us We through front positive to an and this revenue health million debt Sharecare. connected of first solution and and both year our the a digital and you suite platform, year support and Sharecare In strengthened Evan to EBITDA. in engagement a adjusted for accelerated thank and of XX% for We in benefits with operational offerings. and million of incredible integrated was balance digital teams on grew morning. delivered to activities. expanded ended liquidity XXXX, our and strong with growth technology with enhanced touch $XXX by navigation leadership, sales you, Thank over $XX all M&A digital the million a organically XXXX and door future sheet $XXX virtual and care no we profitability. our wellness fully higher growth

advocacy current digital-first home integrated solution. our revenue clinical and customers; our differentiation valuable and Sharecare+, advocacy for a we therapeutic enable solution, introduced integrated new solution creating of opportunities of data payer-agnostic and acquisition additional programs, care, collecting health our navigation providing tech-enabled to and resources; CareLinx, providing home the seamlessly in Specifically, the key digital new high-touch

we expanded even a are future our these strong With very excited capabilities, to growth. our as are we about long-term today support more position in

future current the and outcomes. consolidates with solutions, journey, and of The comprehensive to This informs platform and and with lower Sharecare enhance real-time the point member engagement, digital PMPMs higher more platform core strategic costs caregivers increased the multiyear data our drive home. improve larger, positions breadth Our drives customers. advocates deals to and helps extends and

even we medical did solutions growth believe vaccine minute. our our taking and actions and for health the and hurdles I and a in While greater a that will not patient-centered details platform, solution home are took long-term get up into also portfolio strengthening success. these hard look we determined across that solutions we our of passport sets our us meet

business. First, critical lower brief members care and improves employees, XX health outcomes gaps nearly the helping health, and care. helps patients plan address update better while benefits, million core Sharecare's optimize cost platform on to and their our of discover a understand their

We extensive payers, leading roster government. health systems have and an including of clients, employers,

in address care avoidance on that that to impact benefits health health Our identify an cost care and visibility and plans develop action social enables built well-being. and data navigation analytics us determine dynamic next care capabilities best provide efficiently gaps deep This the in personalized of to cost risk individual's into the opportunities.

Sharecare+ library and high-touch XXXX. includes providing with of health into XXX-degree platform, are in for be customer a XX,XXX health employers. with of We in which in are accredited customer covering care our benefits clinically was reach therapeutics; building and already holistic a with commercially platform service payer-agnostic launch care and one in and employers new two advocates home; navigation, and concierge a Sharecare+. NCQA which advocates team engagement and insights can validated level place; to We're personal a extended this built digital nearly advocacy under available clinical and lives and large on Both engagement for the year contract anticipated clinical health console all

and pipeline We have a discussions payer active are clients. with strong many in employer and other

has savings groups solution satisfaction. agreement care Sharecare establishing of with made Home plans a be and a to national significantly Additionally, member any developing patient for to to plans. cost Anthem, a our unique and solution providing This a employer we strengthened advocacy multicare care proven integrated health home competitive health lower and partnership care, create health has and and advantage. with collaboration must-have offered improved

plans, CareLinx acquired technology services capture, in care the a personal nation's XXXX caregivers a analytics single-source expectations. and and members. quick it's facilitates into benefit as our including rapidly X.X than August coordination Advantage expanded CareLinx we real-time while teams as platform care and nationwide of a a rich than the network more last of patients, Advantage enabling payers leverages serving care leveraging personal population intermittent CareLinx above health provides remote via XXXX, home several clinical home million XXX,XXX of free more largest in Medicare mobile on-demand of that delivering in-home now the XXX Medicare data to refresher, that with As care Sharecare.

We home for which our absenteeism improve benefit critical a growth in significant home-based care services along to this to these their delivers productivity. demand employers And expect is service high clients. traditional reduce complementary and from the care continue, are CareLinx payer services to with a a personal link strategy.

commitment with shareholders. long-term for the deliver a populations value of activities underscore All tech-enabled that customers, their manage and these capabilities solutions to will best our and our digital-first on focus our

focus to PCMH our to platform engagement, core higher drive drive expanding decision our patient-centered PMPMs transition reiterate, customers me to tech-enabled and and support or passport broader medical is our is home value to solution our which which let patient portfolio to model. to us the of better on vaccine a suspend traditional our health led -- So health more platform legacy part of assistant our and business engagement security

do over we COVID, supporting passport we our our develop and normal back health thankfully, lifestyle. decision its hurdles Sharecare we meet solutions to to we've and But support. people million care vaccination and communities we felt was our support Therefore, changed mobilized as solution. platform a and customers going development XX registrations and a vaccine over During has leader, to leverage sites, enabling to and five it health objective. are digital the to its assistant Therefore, successfully serve. capabilities not today, forward made achieved outlook suspend moving responded, our quickly the Having important performance vaccine the for internal

a our payer increase and tech-enabled with will that addition, In member the when to clients, legacy improved streamline largest home engagement. with to in PCMH of model redeployed working or drive conjunction with collaboratively patient-centered business be enhance and we'll and one clinical community renewal medical teams productivity, coordination our more transition

the with We make to to to and profitability our will continuously easier capital long-term continue and and the our we track value allocation optimizing deliver our ensure resources review that progress. objective it simplify growth, of story our to revenue highest shareholder portfolio

our few XXXX let performance. highlights close, I a me Before give on more

two new quality their on drive and capabilities increase customers the access and our activate number platform; help into improving our are engagements engagement larger to We focusing one, care. health outcomes platform cost, our for business: covered populations, of enterprise our digital engage and focused digital and and tech-enabled objectives to integrate to on lives on the to two, by

we Humana leading and eligible an Aflac, million, During recently, customers the X.X into signed to our payers. year, And employers expand to customers grew like Centene, new while more lives the others, existing with approximately on platform agreement Centene Louisiana. Delta, several with we relationship and activating expanding

the database leveraging clients, companies. strong over supplemental to opportunity our approximately and across and In insurance expand Integrity, Sciences, business the of our new continue two our grow $XXX payments growth, lives five over year. potential the fiscal and brands solutions engagement to success, library health a content patient client to million million records consumer serviceable increase activation over $X Life retrieved strength outcomes. first-party identified add current million a and record delivered we result to payers in our client providing in including increased material a our retrievable populations, over over contracted award-winning and upside for pipeline presenting Life new In and of digital existing million our As we XXXX, improve XXX we prior within And base. potential claims billion processed in for Medicare Payment in Sciences of users, we providers, XX% XX

in top penetration of year, the position accomplishments as proud partner digital sell which expanded the strategic role a with with the integrated I will our a top to XX as team our engagements customers. and platform, long-term companies as we pharma very revenue Sharecare's brands. in solidify their pharma XXXX increased significant well placing am strong During to our our XX to larger platform expand us

cross-selling continue with complementary growth solutions, and will clients tech-enabled eligible growing drive existing new upselling and both by We services. to lives

going we confident forward. long-term sustainable profitability can improve growth are deliver We and

quarter me let outlook the fiscal for XXXX. who share and review for Now the financial will call results financial our to the and assumptions fiscal year turn Justin, our and over

Justin?

Justin Ferrero

the thanks on interest everyone for call Sharecare. Thanks, your to Jeff in and

indicated, delivered with Jeff results full for As year strong fiscal and XXXX and quarter we revenue EBITDA. adjusted the both

million year ago. Our XX% million $XXX.X grew a $XX.X to fourth from quarter revenue

full fiscal impacted in a payment year, EBITDA fourth year and business primarily Adjusted client the $X to and full The integrity related across Adjusted year. platform. which $XX revenue $X.X growth by now our million entire contingency grew reflects Life million of the health and for the performance and to across for as expected $X.X timing million the to as Sciences, in sales was and $X XXXX the our CareLinx, investments For force results million our Revenue positive $XXX.X million COVID-XX-related EBITDA quarter fourth impact year of as driven is technology care by health financial quarter and total increased of was were ago. security expected expansion approximately revenue payments full results. from well in million. XXXX financial approximately wins $XXX business increase expenses for a year the well million and onetime product new quarter full employee as the XX% in

$XX $XX these mentioned now first million medical support We home in we the for we initial quarter these was margin platform Combined, security the turn which in included the growth patient-centered XXXX. existing our provided in year traction Jeff new full million as the leverage reflects guidance customers. Guidance investments health with Sharecare in approximately XXXX connection with and our actions guidance portfolio two our with digital the business. revenue our transaction. and represented to actions SPAC contribution gain I'll operating and expect for long-term and greater and additional to drive

we quarter Again, the in expected through the for fiscal range and I $XX well year. QX as increase items EBITDA Our this X% our ramps mentioned million, breakeven. guidance adjusted business, two 'XX our revenue whereby to the includes move using approximately the midpoint Life $XX as approximately and of is Sciences to seasonality is as first quarter lowest be over an the million was of the

to revenue fiscal and over year, to increase to $XXX XX% $XX $XXX full guidance to $XX the XX% approximately of million be was EBITDA is For million, million an million. expected adjusted XXXX

in first or than of in Similar half leverage. we EBITDA the expect sales invest While result support approximately year and year. a rollout line adjusted year, operating as to we of and second the Sharecare+, anticipate our half force expand the we the XX% split inherent better margins platform, prior XXXX of be to the the the the in in revenue to of XX% continue

of of majority streamlining XXXX, revenue impacted redeployment in in of our business anticipate adjusted occur our Sharecare in fourth cash remains we step-up XXXX of the addition the to an stronger and client quarter flow half, large places the with guidance position combined third revenue In in fiscal relationships, even line new the growth while in EBITDA and forward. suspension accelerate breakeven company our the and positive of of our to the addition, uniquely be the strong second product growth, expansion year-end. generate the EBITDA because and positioned a we in believe PCMH will by 'XX resources adjusted guidance and for platform,

for With transition revenue includes XX% Our full approximately majority XXXX, from the increased market million continued of X.X strong of in million to revenue enterprise occur but of to This XXXX increase year-end reflects may increase expected for move XX% approximately needs excludes in free additional $XX channel million the to following: revenue compared growth of the to growth to and at and between year; XX% PCMH reflects a XXXX expenditures capital which over $XX suspending XXXX to reflects expected have of delivering impact year during expected our Sciences fiscal security growth we'll similar rate revenue support to cash growth year-over-year which integrity; a which million fiscal million. $XX lives fiscal reflect approximately negative revenue lives over amortization year-end XX% seasonality fiscal is reported $XX of XXXX and our XX $XX XX% $XX to adjusted nonrecurring items million records, guidance depreciation in remain the We 'XX. to increase which any million; in the and growth strong business; XXXX. eligible support performance run and approximately solid assumptions million by patterns, XXXX; records retrieved payment approximately working of health The in be fiscal while million fiscal confident annual the increase compared Life Q&A. solutions to XX% provider EBITDA between and building compared capital to investments an quarter; that, XXXX, flow fourth of an of approximately six including penetration. growth

Operator

Our from Instructions] David Larsen [Operator with question first BTIG. comes

open. Your line is

David Larsen

basically not generating assistant seems like really away pandemic and Can the health from Hi. talk a we're businesses? you and little passport decision about to through earnings those bit more and It yet. vaccine the were revenue migrate they

Just any really color or thoughts there would be helpful.

Jeff Arnold

This David. sure, Yes, is Jeff.

for So security what the assistance. was driving a lot of health the the revenue portfolio vaccine was

pandemic the for mass a we when that So do said, our let's build vaccinations. help would them clients, platform our hit, clients government

other example, So in registering Dolphins sites. Miami like for we there were people XX Stadium,

as for platform, opportunity there trend places, able with we platform saw And lot doctor being and so of well. the that through passport a the health the to get winding a other and pandemic vaccinated we your we saw ending, down although and we great repurposed have so

the As to their going and some employers fourth card mandate XXX test or our show we over business forward. were being Biden saw in to to sold you quarter. a figure not deals the going might for recent that have remember, but there core they But six vaccine we was

be we're Is profitability? enterprise kind growth going to growth easier look it again. get business to our our time understand platform a business? we the lot that Although you've is pull hurdles little to core term, going your rates? pursuing going right And our your going and it good shelf, of this to your Is let's good although made decision it so to from a investors the not meet more and stop complicated at a was EBITDA, it feedback is so drive down, your that we the your that got assets, was of was resources, business you margins? if us hey, could now we're said story Is redeploy revenue, going model that, and it needed for our that, to it's meet it And say, that -- let's getting listening and things off that to other it is in? long to we couldn't

David Larsen

Okay.

basis regards cases you're tech-enabled home to from medical does the like look a me significantly, And daily are transition, past I would like then to And makes As at COVID a the decision get with of we me so it sense. would it benefit concentration frankly, of to seem seems that on a if right think like EBITDA. the it strategic decline quite to as more moving we a number that's service-heavy solution, that, of sort Omicron. patient-centered seems that all mandates these very decision lifting, lot

So be why there you're in a impact thoughts moving mean, I contribution tech to helpful. platform? such why wouldn't a Just is if earnings -- any 'XX to material would there

Jeff Arnold

on How color about, the that. Justin, I'll give

we And home money was on offices, got started contract part big And on way. We So a friendly went this us. negotiations just 'XX our very the hit Healthways no once for big renewal process we forward. in patient us. that biggest client center got win revenue for business in and been that. the and that this model We digital But COVID through piece 'XX. that, that have longer going And a patient-centered lose for just business high money doctors' our for one the medical home losing Mid-Atlantic. focus we to contract on in we model the acquisition. a deal could inherited a is decade. into to a of our driver said, Blues which through we was with and the won And a big component. digital client when in let's of into through was medical it's the It the We partnership get of the can't that back us

this? start in -- that Justin? so XXXX recent a we early don't impact where the there's that Is anything still we conversation add do how lose you'll a like retool So of to opportunity very to there half but the And that, see money. And to revenue you'd second that's 'XX.

Justin Ferrero

Yes.

believe back I contributor -- far. has historically, EBITDA an been it head that Just contributor. it hits so the It's will do is year. it come on the it is that, think had EBITDA as We pressure over streamlining there, impressive and as an Jeff

David Larsen

patient very home it margin business, there EBITDA medical and the within like center sounds So pressure. was a significant

been some You was may it it making have on lean were you money losing the PCMH very from but or business? money

Jeff Arnold

to started it. lose money We on

manage And we so that behalf yes, of so XXX our clients. on caregivers

said but into And the the -- to look, platform a what do drive so for need lot is our -- these doesn't cash we primary It core We yes care service we're talked losses the costs EBITDA client, about. meet we hurdles out. we a to with to specialist value. in doesn't can't partnership it add growth et that meet connecting meet But vision trying flow breakeven, going we and those strong to doesn't have and It think of rate. this for we doctor XXXX, our that a growth this it. to cetera will and great getting and down take digital

David Larsen

Okay.

told home with hey, to solution we as basically your decision see not the sounds we it margin client. you to of like a And like lift then want that, should was transition your me the decision medical was change So of part. this EBITDA longer proactive to term, your to a patient-centered nature tech that on piece it that to contract. an result like sounds it It they me decision. It's

Jeff Arnold

are large proactive our was on but ours. these decision it a part Yes, partners of payers

we're decision needs it our for a to it good a wanted place. was we our in a be the and to piece so in able we've in everybody. coordinated in renew very of tech-enabled and value partnership started in money now but And contract, clients. way much And that has been to achieve -- but coordinated address And support that that, -- do this digital added to lose yes,

David Larsen

support that make there you of, care you're course, taken Of to to want totally clients' members, sure they're absolutely, understood.

terms $XX passport sort million earnings sounds you for Is that business. of and the in XXXX, that in from contribution $XX were a most revenue and is of that like million breakeven? of If in the of or coming correct? vaccine lot health So it assistant

Jeff Arnold

That's -- correct, yes. yes. as correct That's

Justin Ferrero

correct. That's Yes.

David Larsen

Okay, very hop helpful. Really appreciate I’ll back in the it. queue.

Jeff Arnold

you. Thank

Operator

Genuity. question comes next Our from Canaccord with Richard Close

line is Your open.

Richard Close

Thanks questions. for the

to that, to that contingency in from with if maybe how dropped of to how associated you would million have the to $X $X adjusted XXXX, into pushing quarter it EBITDA? million respect $X much fourth had Justin, revenue the of with million million that's the fourth quarter, down much $X

Justin Ferrero

an all we payments those that Almost accrual-based million -- we cash-based methodology did the bottom was those of then accounting would dropped for Had rather to what closer of which contingency it. with pace $X line. ultimately accounting, $X than gone to have to all million

You all couple we that with care COVID expense million exceed increased and targets. the our $X.X around of health of

Richard Close

those lives And Okay, I ask XX I'm XX you is is and it? to And we XX all going when how COVID you're the then -- lives year? on new those to need should XX million the was about as enterprise the then lives, business help X.X not on signed? get launch for are forward, That's during the delta million live guess, think that million drive or costs. I we curious XXXX expecting, to the lives that that's look the million great. between entire go

Justin Ferrero

we'll those how to very on throughout the X.X come year, from last grew we million X.X to see million. year, lives So similar

the with million which end XX So million we we lives that year X.X did. target the like of which X.X would is million

expect to the year. on we so come throughout lives And

that we those the but to way second of on half And will those, our in although some the on target come of of achieving year. are some well

Evan Smith

the in adds I'll just -- are lives add number. that, remember, CareLinx now also that there

Richard Close

Could you last that point? repeat

Justin Ferrero

now have those our lives, add CareLinx we of total CareLinx and sure making is lives he part Evan into That eligible who enterprise was had commenting just that business. that our we was

And on number lives we CareLinx platform so well. as we're eligible including through bring the to that in that

Richard Close

Okay.

think number So year-over-year? about lives that million X.X of are the contributing how we CareLinx that to should increase

Justin Ferrero

I around go half. would

Richard Close

are you that clear, signed you remaining currently? not XXXX including Okay. implementing the And it's to be the like those already on already then not you're in contracts lives, just win signed, business? And have through that to contracts business are signed, like CareLinx, new so

Justin Ferrero

They're QX as come kind then Yes. revenue, that. And in always them. of talked lion's the additional a share talked half, onboarded lives back the We the of The immediately the is either you'll It's back -- into onboard signed. there's QX front signed. that. in cadence We've our about are they not of well. of of can about a big We half. see QX, part XX% lift year. XX% They're half

in So of come the we throughout on But CareLinx half those the lives on we yes, as have in second half, well on as year to expect first will lives large well. uptick come of number the and the the a some second come half year. expect

Richard Close

Okay. And looking... maybe

Justin Ferrero

late yes, all either in But them. or I booked we're in we're say would contracting of with --

Richard Close

How of, Can seeing it about pipeline? And the be any Okay. there point if can you just we XXXX. what you're obviously, about in helpful. year? And just pipeline overall builds last now would shapes doing up let's you're in versus the talk then for terms talk what qualitative

Jeff Arnold

PMPMs. that now up. are salespeople we higher as And this the provide even I or the that were much home that is close talked clients the need our when really year, is like pipeline deals, has we I best great. We are is help you getting that because the help into ratio, about we think, set that, last people And into the add on also an successful This for many, we that that in and results. just had in I'll bigger in at-bats strongest maybe has it's bringing then ever better engagement CareLinx think our many an and high. and benefit. you buying can is home XX employee Justin, advocacy idea Okay, when get can engagement, But add really advocate extend Sharecare

now health show I doc.ai I if on my determines So really can and the trained right doctor, mom where risk and and never to go leading position the the numbers? that is salespeople had help a work we can use one and CareLinx could call phone but benefit to in throw The and have you need pipeline a like we our those this that I AI strategy to that think then as that has be Justin, resonating platform translate means we are the on pipeline to in before. what really growing maybe, is it social

Justin Ferrero

Yes.

pipeline forward as Xx we've I maybe Richard, may never going to that that but Xx We dollars tell a think, up I'll given exact our KPI. pipeline is year-over-year. a do just you on percentage is basis

than by us a puts stronger time Xx of good into place really Xx to a move year is it this last so XXXX. multiple in we which And as

Richard Close

Maybe having then Life was Excellent. appreciate XX% here quarter year up I for I What XXXX. the for And XXXX. the on the and I Life the and Sciences. fourth my there growth? missed start question Sciences that final to is and have just be the growth a back-end-weighted follow expected on We'll that.

Justin Ferrero

It was Yes. significant.

like So business. the is Sciences for the fourth the we quarter for always quarter -- about talked Life biggest

$XX million me, quarter to the over was which so around pardon -- QX, $XX million. $XX it around in million it grew fourth And in

XXXX QX QX. million And just numbers, to growth from million to grew $X XX% me that it's probably hard 'XX. easier for then is a give to from roughly in growth, from So $XX we to $XX million

wanted XX% pro you off that that when business, a in gave significant almost year. like we that come such when So of for forma year be this we to mindful growth growth, just our

a is growth such So XX% we wanted million. little currently, large year that that $XX to off year we're be conservative. a we're coming last projecting around But

Jeff Arnold

all we would I tens drives they engagement say hard But we to And but spent content platform. in enterprise replicate offset a of is Sciences. business repurpose is those as of our this this that great couldn't we Richard, the think Science someone you what that millions else would be for And if know in the so used dollars that Life Life that what's lot we customers. to service in just developing really of about it content that costs like we on do and I know award-winning

Operator

Research. next comes question from Eric Nephron with Our Percher

Your line is open.

Unidentified Analyst

Hi, Dolph [ph] this Eric. on for is

if First, sources, sales simplification. enterprise On announcements the the over any some expansion? that year, were the see today's question, towards we sales we the then appreciate new you of productivity do like resources -- And last affect XXXX? ramp came do us, online could move when remind

Justin Ferrero

Yes.

not does before, around expansion. per we that our in -- target. year. impact. heavily as to going sales $XX it no, was continue target We about We We're met to So invest talked

We same year. to this do expect the

the we significant across are make a continuing sales So to investment platform.

growth of RFPs. The that at-bats, pipeline expect second the to in half -- to XXXX. We responding yes, more year especially pipeline this getting more to we're start go into and as fruit we bear is -- the growth

and seeing more pipeline the on feet and street that's the up our HX significant why us sets that you're have in XXXX. We expansion for

Unidentified Analyst

versus or any higher there digital getting that the on therapeutics, at you're greater seeing part with -- others demand this is within traction point? then And for Great. digital

Justin Ferrero

areas this Digital obviously, in prevalency traction of MSK, had some therapeutics in prevention. typically of outweighs diabetes talked gets and be as a well. really, But one, the diabetes seeing -- diabetes the But it kind but sleep if would about to other prevention, maternity, hypertension, continues perform. calls We've Yes. previous and the diabetes to it's we're others. you pick around across

Jeff Arnold

that for have to And anxiety. we we all acquired on mindfulness that, and which maybe I'd thing programs one add company is based The Justin. MindSciences

We our sales table almost for for mindfulness-based, all a research-heavy, like loss, very have stake programs smoking, has weight in become now.

we in it's we it own And so core high very those platform. assets, margin, bundle a with

driver. prediabetic, their get for to a always platform, And and able them said, so and therapeutics those right then that good at people million the deal using are then almost XX via selling And included. our do be now, as see enrolled. the population therapeutics target every to inform them are we're how what And data you big really because that's we together the clients we're getting always Justin

Unidentified Analyst

Great, Appreciate color. the thank you.

Jeff Arnold

Sure.

Operator

Cindy Motz Sachs. Our next comes with Goldman from question

Your line is open.

Cindy Motz

my taking for Thanks thanks. Okay, questions.

it a like bit. doing what So is here basically, business you're the sounds streamlining

the the gave cadence revenue for You of year. sort

Just we're to to a ramp, EBITDA then well, to first decent your in particularly we the going breakeven quarter and see numbers, see guessing as I'm pretty get quarter. on if fourth

mean, was that is And wage guess, could because So -- not we margins. it exit Does seem just EBITDA back that we employee give but stop. there something -- little so just know on we XXXX, maybe essentially little I could that that XX% were over down. retention Not give first get technology on also there, then put in means up putting color -- notice was I set like and you for a high any -- least that, there? would the making, bit you're year, something did XXXX. this time, the you I'll Also, like on that if giving up you're year you XX%, see of bonus, we I'm like color product some to for guidance that out maybe in but the And That's and about just be just to you there mouth way. but Is transition thinking I right come guidance at expecting at that us it inflation, if question. quarter. the your exit something a a investments pretty G&A if where going would hopefully, I

Justin Ferrero

Yes.

you're on. first the right on So question,

at be said. double-digit we're then you QX. operating -- guidance And by giving we 'XX, as to expect for obviously, not We margins think

expect but into we -- beyond. that continue it's So kind of XXXX to -- and

with expectations. to that we're we're in want year, And the is one right in I focused our of reiterate is that. to companies the end by to the on, breakeven you're our achieve line cash unique think which also just we -- to of So get space flow

we XX your investing added piece, and on. that over is which resources investing marketing. and heavy So heavily talk sales I product and of -- tech. we're talked is A are then innovation think assumptions in product right about, And there lot in what about and calls, we the our on on P&T tech we've and

G&A were out. has but And and right, new things CareLinx item There in built advocacy. team in our P&T a corporate grew marketing of been the QX. assets the investing kind then, number we're in and some our QX, of which -- sales heavily grew there's So that like investing grew we're in you're senior

those together all of our OpEx. So in kind of the drove growth

Cindy Motz

Okay.

so And that. -- going and we -- expect we're to

a straightforward? there, there. what's over the while. that some not be It clarification here? little there not and we're but -- expenses companies for retention other takes employee to a That's a time in on like looking we've there's pretty it platform and -- of thing just like seen not transitioning kind there's should going So in onetime I'm going like

Justin Ferrero

fee about marketing being -- had for a and expenses There's expense COVID onetime Yes. talked high. I the we

CareLinx say we're is yes, the mean, of yes, I on it's were bigger first into the heavily that I could and out first our latter invested the wouldn't I is our but half there part year. the continue move expenses home year onetime the But products to But $XX in of So think in but board. would half health we're across point to a you so expect to the going -- high. couple that continue we're advocacy I to of investing pull million year, -- product. the we that as invest the of back the --

G&A our XXXX grow XXXX. from is going year-over-year, to So corporate to

Cindy Motz

not wage manageable, we're inflation maybe other And it's that from but -- like sounds is that companies right. well correct? it as of like all it's some Okay, hearing

Justin Ferrero

manageable. definitely It's

Cindy Motz

And focused on any And then the like I the CareLinx, said guidance on as mean that? you Okay. giving do but you is recall, think guidance -- that any PMPM or those don't the last have for anything revenue you $XX still I two. With right? at just there, all just I million I Just intact, it recall year-end? with about

Justin Ferrero

Yes.

can about $X. which provide little over is don't the back talked but PMPM business it on -- enterprise we guidance into we a on our you So

an the continuing feel as performing. right beyond, is it's we not CareLinx And deals larger performing others, advocacy plan, ahead ahead shareholders that, line like of and and to in it's think the acquisition and excellent with deals, will if that With perform for made these we and we look out expand. to plan. 'XX

Cindy Motz

lot. a That’s helpful. thanks Okay,

Operator

Larsen with BTIG. question is next Our follow a from up David

Your open. line is

David Larsen

quarter for also for the the year, Hi. What was enterprise provider? then either and it was And revenue I year in or the million. the in think said $XX consumer you

Justin Ferrero

Yes.

the for a quarter from earlier. was which you $XXX enterprise year out So So year want million up was for each year? and break the $XXX the million the

$XX at was million. $XX the was piece million the million right from business gave then, you provider million which up up I on $XXX the consumer obviously, And to earlier. Our year $XX adds which

David Larsen

you understanding Okay, with thoughts particular? that's potential you my very ways health with cross-sell And helpful. then talk can talking in-cell those for products? large those they about very, suite in just any in some them have other presence plans. plans a discussions serve or that about It's the CareLinx, And that on you Are the how Sharecare progressing? can of are very

Jeff Arnold

That's great Yes. question. a

in so think as made much a I is company this progress one where platform. like So we've full

we you Once program met, the get is you health platform talked about on why get the in the And that. how that and people enroll about of it do the first So and put we that and engage data, lot upsell one hard the how into to well then importance we when we think therapeutics. talked person digital we platform. at to right to do ability their the and engagement an a

in I last folks now presentation we've less to we've And addition that, to for a months, Anthem. way what Now full a taken brought same we the the added and PMPM decade to in that platform every with market we we year, has getting built clients sometimes just in nine we've were than make, that some we've added to we partnership advocacy the advocacy build, and CareLinx. engagement solution XXx sold engagement in the platform. mean, And in

the the a add CareLinx is big And side an a the the the the And home with asking, employee care. you in so presentation employer, clients on side finalist with they've the -- one we're with commercial which all client. made benefit the -- same that we're a that of payers with of and put capability, large the doing when with the we're Sharecare should the one are had. engagement kicked of we they've table a for saying, from coming therapeutics you're as having big off other actively big of traction And QX educating together, the a advocates complement in another it lot question great payers the out is payers if CareLinx results and those and it's put

one shop the member Advantage often approach let's so initially the employee is initially services we into you one-stop coming Evan the and client. CareLinx? platform. the and to it come this doesn't Delta how But matter most for get member for all says, Are platform And a think them wellness? buy comprehensive a you what for Are coming because in best into you Medicare

David Larsen

of color terms And percentage is Okay, helpful. on how they their that's any that Are the comp of commission-based? And all in then very just salespeople, the actually are they commission-based? paid?

Jeff Arnold

these a of on ultimately, And in are heavily at somewhat colleagues bring the but that a incented from but all number but money we commission. can they are they're the make. changed base lot the based little they bit low these Yes. -- different all -- and They relatively sales divisions they on make of the --

do better it's So and do we really aligned; they better.

David Larsen

it. Okay. Thanks much. very Appreciate

Operator

are further to There to call turn any I'd remarks. no the like questions. for closing Jeff over Arnold

Jeff Arnold

growth, got acquisitions. showed company public. had, out, adjusted We in key just XXXX. a We $XX million like really strong reiterate We that I'd think, the EBITDA. we in two XX% I made Well, closing to really

We position. in stronger have going and has to continue we're never been And sheet which an a be balance in incredibly active strong to the company M&A.

huge a have We pipeline.

investment investment look you the our that We're And May. we're and our investors the taking taken appreciate meet that want talking that sustain those hurdles feedback makes important we time in these you And rates great your you. today Our getting to our can from outcomes we're we forward growth the for that to and value listening with users to Sharecare simplify PCMH our getting that resonating aggressively our proposition actions story. that is health that we a we security clients. with all we and from And Thank steps. think that we've with shareholders. hopefully, can see we're and it's

Operator

program. the concludes This

great disconnect. You have Everyone, a may day. now

Sharecare (SHCR) 31 Mar 222021 Q4 Earnings call transcript