Sharecare, Inc.

First-quarter 2024 revenue was approximately $91 million, down $25.4 million year over year, and adjusted EBITDA was negative $2.7 million, down $3.3 million from the prior year. Management attributed the decline mainly to eliminations tied to the legal dispute, plus additional costs for the strategic review and dispute. Cash at quarter-end was $100.3 million, with more than $154 million of available cash, and cash used in the quarter was $27.9 million. The company did not provide 2024 guidance. Management said it expects revenue to improve over the course of the year as Life Sciences and Provider seasonality normalizes and the enterprise channel ramps, with Q3 expected to be the best quarter for Provider, Q4 for Life Sciences, and enterprise momentum starting in Q3.

Brent Layton framed the quarter around strategic review progress and growth initiatives, saying the company is in active discussions with multiple bidders for a potential sale or other strategic transaction and expects the process to conclude within 30 to 45 days, though no outcome is assured. He emphasized that Sharecare is using existing assets to create new offerings, highlighting the Medicaid navigation platform, CareLinx-related applications, and new opportunities in MCOs, oncology, reinsurance, and dementia-related care. His tone was constructive and focused on value creation, growth, and innovation despite the dispute and lack of formal guidance.

Justin Ferrero said the quarter’s revenue and EBITDA were hit by the contract dispute, strategic-review expenses, and normal Q1 seasonality, but he stressed that cost control limited the EBITDA decline relative to the revenue drop. He cited $100.3 million in cash, over $154 million in available cash, and $27.9 million of cash burn, noting that burn should improve significantly over the course of the year. He also pointed to segment seasonality, saying Provider and Life Sciences should strengthen in the second half, and reiterated that enterprise momentum should start contributing in Q3. He described ongoing spending on legal, accounting, and professional fees tied to the dispute and strategic review.

Analysts focused on the new Medicaid platform’s economics, including margins, PMPM, utilization, and whether it would contribute revenue this year. Management said it would not disclose margin or revenue specifics, but did say the platform starts in Q3, revenue is expected this year, and the margin profile is attractive; Brent added that utilization KPIs will be developed as the product rolls out. Questions also centered on the Q1 revenue shortfall and whether the quarter was a good run rate; management said Q1 was in line with internal expectations, with Provider hurt by a tough comparison and Life Sciences pressured by a customer going generic and a discontinued non-core product. On EBITDA, management said strategic review and dispute-related legal, accounting, and professional costs were incremental and that EBITDA should improve as the year progresses.