Sharecare(US:SHCR)2022-03-31 18:06Financial Data and Key Metrics Changes - Sharecare reported a 26% year-over-year revenue growth, reaching $413 million, and delivered $27 million in positive adjusted EBITDA for the fiscal year 2021 [6][21] - Fourth quarter revenue grew 34% to $118.5 million from $88.4 million a year ago [21] - Adjusted EBITDA for the fourth quarter was $5.4 million, reflecting positive performance across the business [22] Business Line Data and Key Metrics Changes - The revenue growth was primarily driven by Life Sciences, CareLinx, health security, and new client wins across the platform [22] - The record retrievable business for payers and providers retrieved approximately five million records in fiscal 2021, a 19% increase over the prior year [19] - In Payment Integrity, over $6 billion in claims were processed, identifying over $100 million in overpayments [19] Market Data and Key Metrics Changes - Sharecare's platform now helps nearly 10 million employees, plan members, and patients [10] - Eligible lives on the platform grew to approximately 9.7 million, with potential serviceable lives increasing to 91 million across existing contracted client populations [18] - The company expects to increase eligible lives to approximately 12 million by year-end fiscal 2022, a 24% increase over fiscal 2021 [26] Company Strategy and Development Direction - Sharecare is focusing on expanding its core platform to drive higher PMPMs and broader patient engagement [14] - The company has decided to suspend support for its vaccine assistant and health passport solutions, which were not meeting long-term growth hurdles [9][16] - Sharecare is committed to optimizing capital allocation and resources to deliver the highest long-term revenue growth and profitability [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering strong year-over-year revenue growth and solid adjusted EBITDA performance while building a strong run rate for fiscal 2023 [28] - The company anticipates a majority of adjusted EBITDA guidance will occur in the third and fourth quarters of 2022 [25] - Management highlighted a strong pipeline for 2023, with a 4x to 5x increase year-over-year in pipeline opportunities [57] Other Important Information - Sharecare ended the year with no debt and over $300 million in liquidity to support future growth and profitability [6] - The company is investing heavily in product and technology, as well as sales force expansion, to support long-term growth [22][73] Q&A Session Summary Question: Can you talk about the vaccine assistant and health passport decision? - Management indicated that the decision to move away from these businesses was based on changing market conditions and feedback from investors to simplify the business model [33][34] Question: Why is there a material impact to earnings contribution in '22 with the transition to a tech-enabled solution? - Management explained that the patient-centered medical home model had started losing money, prompting a transition to a tech-enabled model to improve profitability [35][36] Question: How much of the $2 million to $3 million contingency revenue would have dropped to adjusted EBITDA? - Almost all of it would have dropped to the bottom line had an accrual-based accounting methodology been used [45] Question: What is the expected growth for Life Sciences? - Life Sciences revenue grew from $61 million to $78 million from 2020 to 2021, with an expected growth of approximately 11% for 2022 [59] Question: How is the sales team compensated? - The sales team is heavily incentivized on commission, aligning their success with the company's performance [86]