Sharecare announces second quarter 2024 financial results and operational highlights

Financial Performance - Revenue for Q2 2024 was $94.3 million, a decrease of $16.1 million (14.6%) compared to $110.4 million in Q2 2023 [4] - Net loss attributable to Sharecare increased to $42.0 million in Q2 2024 from $35.1 million in Q2 2023, an increase of $6.9 million [4] - Adjusted EBITDA was near break-even in Q2 2024, compared to $3.3 million in Q2 2023, a decrease of $3.3 million [4] - Net loss per share increased to $0.12 in Q2 2024 from $0.10 in Q2 2023, an increase of $0.02 [4] - Adjusted net loss per share was $0.04 in Q2 2024, compared to $0.03 in Q2 2023, an increase of $0.01 [4] Strategic Developments - The company successfully launched a new platform for Medicaid, reaching 750,000 members on July 1, 2024, as part of its Enterprise channel strategy [2] - The company is focused on accelerating growth and maximizing profitability by delivering proven solutions at higher operating margins while investing in innovation to drive consumerism in healthcare [5] - Sharecare entered into a definitive agreement to be acquired by an affiliate of Altaris, LLC, with Sharecare stockholders receiving $1.43 in cash per common share upon closing, expected by the end of 2024 [6] Non-GAAP Financial Measures - Adjusted EBITDA, adjusted net loss, and adjusted loss per share are used to evaluate ongoing operations and for internal planning and forecasting purposes [8] - Adjusted EBITDA excludes items such as depreciation, amortization, interest income/expense, share-based compensation, and non-operating, non-recurring costs [11] - Adjusted net loss excludes amortization of acquired intangibles, share-based compensation, and non-operating, non-recurring costs [20] - Adjusted loss per share is calculated as adjusted net loss divided by the weighted average common shares outstanding [21] Operational Costs and Adjustments - Non-operating, non-recurring costs for Q2 2024 included $1.8 million in legal matters and $0.2 million related to a financially distressed vendor [12][32] - Reorganizational and severance costs for Q2 2024 were $2.6 million, primarily related to globalizing the workforce and severance [17][34] - Acquisition-related costs for Q2 2024 were $4.7 million, primarily associated with the pending merger with Altaris [4][34]