Sharecare declares fourth quarter and full yr 2022 monetary outcomes and operational highlights

ATLANTA, March 29, 2023 /PRNewswire/ — Sharecare (Nasdaq: SHCR), the digital well being firm that helps individuals handle all their well being in a single place, as we speak introduced monetary outcomes for the quarter and yr ended December 31, 2022.

“We’re happy with our monetary efficiency within the quarter and over the complete yr, throughout which we hit a number of key milestones for our core Enterprise enterprise, together with contracting over 900,000 new eligible lives for Sharecare+, our digital-first advocacy answer, and 1.8 million new members for CareLinx, our tech-enabled dwelling well being providing, in addition to exceeding our goal KPI for eligible lives with 12.4 million,” stated Jeff Arnold, chairman and CEO of Sharecare. “Our basis is stable, and we’re dedicated to proceed rising Sharecare’s eligible lives, rising our PMPMs, changing into extra worthwhile, and, most significantly, measurably enhancing the well-being of every of our members.”

Mr. Arnold added, “Final yr, we introduced plans to conduct a strategic overview to obviously perceive the entire potential choices to maximise our shareholder worth. We’ve got expanded the overview to incorporate potential enterprise combos to enhance our thriving Enterprise channel, which is yielding a rising and sturdy pipeline, new buyer wins throughout the employer, payor, and authorities sectors in addition to excessive consumer retention as we proceed to broaden our core complete digital platform with our modern product choices. Additional, the strategic overview has additionally affirmed the worth of our Supplier channel; garnering enticing valuations on a standalone foundation and we proceed to actively consider methods to unlock that worth, whereas rising profitability by international outsourcing and rising and retaining purchasers.”

Fourth Quarter 2022 Monetary Outcomes
All comparisons, except in any other case famous, are to the three months ended December 31, 2021.

Income of $123.3 million in comparison with $118.5 million, a rise of $4.8 million, or 4%.
Internet loss attributable to Sharecare of $24.1 million in comparison with web revenue attributable to Sharecare of $9.6 million, a lower of $33.7 million. Internet loss within the fourth quarter of 2022 included $8.0 million in non-cash inventory compensation; $4.5 million in non-operating, non-recurring prices; $4.6 million of reorganizational and severance prices; $1.1 million in acquisition-related prices; and $0.6 million of different non-cash or non-operational expense. Excluding these things, the adjusted web loss was $5.3 million within the present quarter.
Adjusted EBITDA of $4.6 million in comparison with $5.4 million, a lower of $0.8 million which is primarily attributable to the sunsetting of the COVID-19 well being safety program that had a considerable affect on income and adjusted EBITDA within the prior yr interval.
Internet loss per share of $0.07 in comparison with web earnings per share of $0.03, a lower of $0.10 which displays the aforementioned gadgets impacting web revenue.
Adjusted web loss per share was $0.02 in comparison with $0.01, a rise to adjusted web loss per share of $0.01 which excludes the affect of non-cash and non-operational revenue and bills.

Full 12 months Monetary Outcomes
All comparisons, except in any other case famous, are to the twelve months ended December 31, 2021.

Income of $442.4 million in comparison with $412.8 million, a rise of $29.6 million, or 7%.
Internet loss attributable to Sharecare of $118.7 million in comparison with web loss attributable to Sharecare of $85.0 million, a rise to web lack of $33.7 million. Internet loss attributable to Sharecare throughout 2022 included $69.6 million in non-cash inventory compensation; $14.4 million in non-operating, non-recurring prices; $13.7 million in reorganizational and severance prices; $5.8 million in acquisition associated prices; and $5.3 million of different non-cash or non-operational revenue. Excluding these things, the adjusted web loss was $20.5 million within the present yr.
Adjusted EBITDA of $15.8 million in comparison with $27.0 million, a lower of $11.2 million which, as talked about above, is essentially a results of the suspended well being safety enterprise.
Internet loss per share of $0.34 in comparison with $0.30, a rise to web loss per share of $0.04 which displays the aforementioned gadgets impacting web loss.
Adjusted web loss per share of $0.06 in comparison with $0.04, a rise to adjusted web loss per share of $0.02 which excludes the affect of non-cash and non-operational revenue and bills.

“We’re dedicated to a balanced method to progress and margin and can start to comprehend the advantages of the roughly $30 million in annualized price financial savings as we progress throughout 2023 due to globalization efforts already in progress inside our Enterprise and Supplier channels,” added Arnold. “As we provoke standalone 2023 steerage, I wish to emphasize that now we have constructed our projections for the Enterprise channel based mostly solely on the enterprise beneath contract, and modeled progress for the Supplier and Life Sciences channels consistent with their 2022 progress charges. Additional, we anticipate almost doubling our adjusted EBITDA in 2023 and are assured in our capacity to ship elevated worth for our shareholders whereas guaranteeing continued progress and success within the evolving healthcare panorama.”

Monetary Outlook

Q1 2023 Monetary Steerage
For the three months ending March 31, 2023, the Firm expects:

Income within the vary of $111 million to $113 million
Adjusted EBITDA within the vary of $1 to $2 million

Fiscal 2023 Monetary Steerage
For the twelve months ending December 31, 2023, the Firm expects:

Income within the vary of $450 million to $460 million
Adjusted EBITDA within the vary of $25 million to $30 million

Supplemental Ahead-Trying Expectations and Assumptions for Fiscal 2023
The Firm has decided to offer the next supplemental expectations and assumptions concerning its fiscal 2023 outcomes to offer buyers with additional transparency into the Firm’s present beliefs concerning fiscal 2023, all of that are topic to alter.

Our steerage assumptions replicate the next:

Enhance in Enterprise eligible lives to roughly 12.9 million by year-end fiscal 2023, a 4% improve over fiscal 2022.
Enhance in information retrieved to six.5 million information, a 12% improve over fiscal 2022.
Capital expenditures of roughly $30 million.

Convention Name
The Firm will host a convention name to overview the fourth quarter and full-year fiscal 2022 outcomes as we speak, Wednesday, March 29, 2023, at 8:00 a.m. EDT. The decision could be accessed by dialing (833) 636-1352 for U.S. individuals or (412) 902-4148 for worldwide individuals, and referencing the Sharecare earnings name; or by way of dwell audio webcast, obtainable on-line at https://buyers.sharecare.com/. A webcast replay of the decision shall be obtainable for on-demand listening on the similar hyperlink and can stay obtainable for about 90 days.

Non-GAAP Monetary Measures
Along with our monetary outcomes decided in accordance with U.S. GAAP, we imagine the non-GAAP measures adjusted EBITDA, adjusted web revenue (loss), and adjusted earnings (loss) per share (“adjusted EPS”) are helpful in evaluating our working efficiency. We use adjusted EBITDA, adjusted web revenue (loss), and adjusted EPS to judge our ongoing operations and for inside planning and forecasting functions. We imagine that these non-GAAP monetary measures, when taken along with the corresponding GAAP monetary measures, present significant supplemental data concerning our efficiency by excluding sure gadgets that will not be indicative of our enterprise, outcomes of operations, or outlook. Particularly, we imagine that the usage of these non-GAAP measures is useful to our buyers as these metrics are utilized by administration in assessing the well being of our enterprise and our working efficiency. Nevertheless, non-GAAP monetary data is offered for supplemental informational functions solely, has limitations as an analytical instrument, and shouldn’t be thought of in isolation or as an alternative choice to monetary data offered in accordance with GAAP. As well as, different firms, together with firms in our business, could calculate similarly-titled non-GAAP measures otherwise or could use different measures to judge their efficiency, all of which might scale back the usefulness of our non-GAAP monetary measures.

The calculations and reconciliations of historic adjusted EBITDA, adjusted web revenue (loss), and adjusted EPS to web revenue (loss), essentially the most straight comparable monetary measure said in accordance with GAAP, are offered under and within the accompanying monetary tables. Traders are inspired to overview the reconciliations and to not depend on any single monetary measure to judge our enterprise.

We’ve got not reconciled adjusted EBITDA steerage to web revenue (loss) as a result of we don’t present steerage for web revenue (loss) or for gadgets that we don’t think about indicative of our ongoing efficiency, together with, however not restricted to, the affect of great non-recurring gadgets, as sure of these things are out of our management and/or can’t be moderately predicted. Accordingly, reconciliations of adjusted EBITDA steerage to the corresponding U.S. GAAP measures usually are not obtainable with out unreasonable effort.

Adjusted EBITDA
We calculate adjusted EBITDA as web revenue (loss) adjusted to exclude (i) depreciation and amortization, (ii) curiosity revenue, (iii) curiosity expense, (iv) revenue tax (profit) expense, (v) loss on extinguishment of debt, (vi) different (revenue) expense (non-operating), (vii) share-based compensation, (viii) warrants issued with income contracts, (ix) amortization of non-cash fee for analysis and growth, (x) web prices related to exiting contracts, (xi) non-operating, non-recurring prices, (xii) reorganizational and severance prices, and (xiii) acquisition-related prices. We don’t view the gadgets excluded as consultant of our ongoing operations.

Adjusted Internet Earnings (Loss)
We calculate adjusted web revenue (loss) as web revenue (loss) attributable to Sharecare, Inc. adjusted to exclude (i) amortization of acquired intangibles, (ii) amortization of deferred financing charges, (iii) change in truthful worth of warrant legal responsibility and contingent consideration, (iv) share-based compensation, (v) warrants issued with income contracts, (vi) amortization of non-cash fee for analysis and growth, (vii) web prices related to exiting contracts, (viii) non-operating, non-recurring prices, (ix) reorganizational and severance prices, and (x) acquisition associated prices. We don’t view the gadgets excluded as consultant of our ongoing operations.

Adjusted Earnings (Loss) Per Share
We calculate adjusted EPS as adjusted web revenue (loss), as outlined above, divided by the variety of weighted common frequent shares excellent – primary and diluted.

About Sharecare
Sharecare is the main digital well being firm that helps individuals – regardless of the place they’re of their well being journey – unify and handle all their well being in a single place. Our complete and data-driven digital well being platform is designed to assist individuals, suppliers, employers, well being plans, authorities organizations, and communities optimize particular person and population-wide well-being by driving optimistic habits change. Pushed by our philosophy that we’re all collectively higher, at Sharecare, we’re dedicated to supporting every particular person by the lens of their private well being and making high-quality care extra accessible and reasonably priced for everybody. To be taught extra, go to www.sharecare.com.

Necessary Discover Concerning Ahead-Trying Statements
This press launch incorporates forward-looking statements throughout the which means of the U.S. Personal Securities Litigation Reform Act of 1995 which are based mostly on beliefs and assumptions and on data presently obtainable. In some circumstances, you may determine forward-looking statements by the next phrases: “outlook,” “goal,” “replicate,” “on monitor,” “foresees,” “future,” “could,” “ship,” “will,” “shall,” “might,” “would,” “ought to,” “count on,” “intend,” “plan,” “anticipate,” “imagine,” “estimate,” “predict,” “mission,” “potential,” “proceed,” “ongoing” or the damaging of those phrases, different comparable terminology (though not all forward-looking statements include these phrases), or by discussions of technique, plans, or intentions. These statements contain dangers, uncertainties and different components that will trigger precise outcomes, ranges of exercise, efficiency or achievements to be materially completely different from the knowledge expressed or implied by these forward-looking statements. Though we imagine that now we have an affordable foundation for every forward-looking assertion contained on this press launch, we warning you that these statements are based mostly on a mixture of info and components presently recognized by us and our projections of the longer term, about which we can’t be sure.

Ahead-looking statements on this press launch embody, however usually are not restricted to, our capacity to comprehend the anticipated advantages of partnerships or different relationships with third events or clients on our future progress targets and statements concerning our future outlook, together with these beneath the caption “Monetary Outlook.”

We can’t guarantee you that the forward-looking statements on this press launch will show to be correct. These forward-looking statements are topic to quite a lot of important dangers and uncertainties that would trigger precise outcomes to vary materially from anticipated outcomes. Descriptions of among the components that would trigger precise outcomes to defer materially from these forward-looking statements are mentioned in additional element in our filings with the U.S. Securities and Alternate Fee (the “SEC”), together with the Danger Components part of the Annual Report on Kind 10-Ok. Moreover, if the forward-looking statements show to be inaccurate, the inaccuracy could also be materials. In mild of the numerous uncertainties in these forward-looking statements, you shouldn’t regard these statements as a illustration or guarantee by us or some other particular person that we are going to obtain our targets and plans in any specified timeframe, or in any respect. The forward-looking statements on this press launch symbolize our views as of the date of this press launch. We anticipate that subsequent occasions and developments will trigger our views to alter. Nevertheless, whereas we could elect to replace these forward-looking statements sooner or later sooner or later, now we have no present intention of doing so besides to the extent required by relevant regulation. You must, due to this fact, not depend on these forward-looking statements as representing our views as of any date subsequent to the date of this press launch.

As well as, there could be no assurance that the strategic overview course of will end in any transaction, or if a transaction is undertaken, as to its phrases or timing, and the corporate doesn’t intend to offer extra data on the strategic overview till it determines that extra disclosure is suitable or crucial.

Media Relations:
Jen Martin Corridor
[email protected]

Investor Relations:
Bob East
[email protected]

SHARECARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In 1000’s, besides share and per share quantities)

	Three Months Ended December 31,		12 months Ended December 31,
	2022	2021	2022	2021
	(unaudited)	(unaudited)
Income	$ 123,262	$ 118,537	$ 442,415	$ 412,815
Prices and working bills:
Prices of income (unique of depreciation and amortization under)	73,241	58,935	238,293	203,218
Gross sales and advertising and marketing	15,172	15,360	55,870	51,407
Product and know-how	16,290	21,838	70,527	74,438
Normal and administrative	33,770	51,534	171,811	136,594
Depreciation and amortization	12,425	10,000	45,256	32,601
Complete prices and working bills	150,898	157,667	581,757	498,258
Loss from operations	(27,636)	(39,130)	(139,342)	(85,443)

Different revenue (expense):
Curiosity revenue	1,417	47	1,867	96
Curiosity expense	(852)	(721)	(2,431)	(27,662)
Loss on extinguishment of debt	—	—	—	(1,148)
Different revenue	2,925	47,822	20,215	27,007
Complete different revenue (expense)	3,490	47,148	19,651	(1,707)
Earnings (loss) earlier than revenue tax profit (expense)	(24,146)	8,018	(119,691)	(87,150)
Earnings tax profit (expense)	(59)	1,501	206	2,021
Internet revenue (loss)	(24,205)	9,519	(119,485)	(85,129)
Internet loss attributable to non-controlling curiosity in subsidiaries	(81)	(98)	(778)	(129)
Internet revenue (loss) attributable to Sharecare, Inc.	$ (24,124)	$ 9,617	$ (118,707)	$ (85,000)

Internet earnings (loss) per share attributable to frequent stockholders:
Primary	$ (0.07)	$ 0.03	$ (0.34)	$ (0.30)
Diluted	$ (0.07)	$ 0.02	$ (0.34)	$ (0.30)

Weighted-average frequent shares excellent:
Primary	350,688,872	336,534,375	348,103,491	281,026,365
Diluted	350,688,872	411,141,721	348,103,491	281,026,365

SHARECARE, INC.
CONSOLIDATED BALANCE SHEETS
(In 1000’s, besides share and per share quantities)

	As of December 31,
	2022	2021
Belongings
Present property:
Money and money equivalents	$ 182,508	$ 271,105
Accounts receivable, web (web of allowance for uncertain accounts of $7,197 and $6,212, respectively)	116,877	103,256
Different receivables	4,114	5,327
Pay as you go bills	12,612	8,819
Different present property	4,515	2,459
Complete present property	320,626	390,966
Property and gear, web	5,082	4,534
Different long-term property	20,362	12,173
Intangible property, web	163,114	155,086
Goodwill	191,817	192,442
Complete property	$ 701,001	$ 755,201
Liabilities, Redeemable Convertible Most well-liked Inventory and Stockholders’ Fairness
Present liabilities:
Accounts payable	$ 8,838	$ 27,155
Accrued bills and different present liabilities	81,627	51,653
Deferred income	9,032	11,655
Contract liabilities, present	1,535	4,597
Complete present liabilities	101,032	95,060
Contract liabilities, noncurrent	—	1,745
Warrant liabilities	2,441	10,820
Lengthy-term debt	—	419
Different long-term liabilities	16,723	24,116
Complete liabilities	120,196	132,160
Commitments and contingencies
Sequence A redeemable convertible most well-liked inventory, $0.0001 par worth; 5,000,000 shares approved; 5,000,000 shares issued and excellent, mixture liquidation choice of $50,000 as of December 31, 2022 and 2021	58,205	58,205
Stockholders’ fairness:
Widespread inventory, $0.0001 par worth; 600,000,000 and 600,000,000 shares approved; 345,463,620 and 345,788,707 shares issued and excellent as of December 31, 2022 and 2021, respectively	35	35
Further paid-in capital	1,120,024	1,042,164
Amassed different complete loss	(2,794)	(2,061)
Amassed deficit	(595,820)	(477,113)
Complete Sharecare, Inc. stockholders’ fairness	521,445	563,025
Noncontrolling curiosity in subsidiaries	1,155	1,811
Complete stockholders’ fairness	522,600	564,836
Complete liabilities, redeemable convertible most well-liked inventory and stockholders’ fairness	$ 701,001	$ 755,201

SHARECARE, INC.
RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA
(Unaudited)
(In 1000’s)

	Three Months Ended December 31,		12 months Ended December 31,
	2022	2021	2022	2021
Internet revenue (loss)	$ (24,205)	$ 9,519	$ (119,485)	$ (85,129)
Add:
Depreciation and amortization	12,425	10,000	45,256	32,601
Curiosity revenue	(1,417)	(47)	(1,867)	(96)
Curiosity expense	852	721	2,431	27,662
Earnings tax (profit) expense	59	(1,501)	(206)	(2,021)
Loss on extinguishment of debt	—	—	—	1,148
Different revenue	(2,925)	(47,822)	(20,215)	(27,007)
Share-based compensation	8,009	21,263	69,628	46,780
Warrants issued with income contracts^(a)	14	20	62	79
Amortization of non-cash fee for analysis and growth	1,190	423	2,460	1,235
Internet prices related to exiting contracts^(b)	353	—	3,839	—
Non-operating, non-recurring prices^(c)	4,514	9,868	14,360	10,592
Reorganizational and severance prices^(d)	4,637	538	13,681	1,504
Acquisition-related prices	1,088	2,373	5,832	19,680
Adjusted EBITDA^(e)	$ 4,594	$ 5,355	$ 15,776	$ 27,028


	(a)	Represents the non-cash worth of warrants issued to purchasers for assembly particular income thresholds.
	(b)	For the yr ended December 31, 2022, beforehand undisclosed first quarter web prices have been included for comparability functions and to show tendencies related to exiting contracts in the course of the interval.
	(c)	For 2022, primarily represents prices associated to the settlement of authorized obligations, new enterprise alternatives, and lease termination. For 2021, primarily represents prices associated to the settlement of authorized obligations.
	(d)	For 2022, primarily represents prices associated to globalizing a portion of the workforce and severance. For 2021, primarily represents prices associated to severance.
	(e)	Contains non-cash amortization related to contract liabilities recorded in reference to acquired companies.

SHARECARE, INC.
RECONCILIATION OF GAAP NET INCOME (LOSS) ATTRIBUTABLE TO SHARECARE TO ADJUSTED NET LOSS AND ADJUSTED LOSS PER SHARE
(Unaudited)
(In 1000’s, besides share and per share knowledge)

	Three Months Ended December 31,		12 months Ended December 31,
	2022	2021	2022	2021
Internet revenue (loss) attributable to Sharecare, Inc.	$ (24,124)	$ 9,617	$ (118,707)	$ (85,000)
Add:
Amortization of acquired intangibles^(a)	1,631	1,668	6,526	5,321
Amortization of deferred financing charges	71	71	280	15,537
Change in truthful worth of warrant legal responsibility and contingent consideration	(2,727)	(47,842)	(18,492)	(26,123)
Share-based compensation	8,009	21,263	69,628	46,780
Warrants issued with income contracts^(b)	14	20	62	79
Amortization of non-cash fee for analysis and growth	1,190	423	2,460	1,235
Internet prices related to exiting contracts^(c)	353	—	3,839	—
Non-operating, non-recurring prices^(d)	4,514	9,868	14,360	10,592
Reorganizational and severance prices^(e)	4,637	538	13,681	1,504
Acquisition-related prices	1,088	2,373	5,832	19,680
Adjusted web loss^(f)	$ (5,344)	$ (2,001)	$ (20,531)	$ (10,395)

Weighted-average frequent shares excellent, primary and diluted	350,688,872	336,534,375	348,103,491	281,026,365

Adjusted loss per share, primary and diluted	$ (0.02)	$ (0.01)	$ (0.06)	$ (0.04)


	(a)	Represents non-cash bills associated to the amortization of intangibles in reference to acquired companies.
	(b)	Represents the non-cash worth of warrants issued to purchasers for assembly particular income thresholds.
	(c)	For the yr ended December 31, 2022, beforehand undisclosed first quarter web prices have been included for comparability functions and to show tendencies related to exiting contracts in the course of the interval.
	(d)	For 2022, primarily represents prices associated to the settlement of authorized obligations, new enterprise alternatives, and lease termination. For 2021, primarily represents prices associated to the settlement of authorized obligations.
	(e)	For 2022, primarily represents prices associated to globalizing a portion of the workforce and severance. For 2021, primarily represents prices associated to severance.
	(f)	The revenue tax impact of the Firm’s non-GAAP reconciling gadgets are offset by valuation allowance changes of the identical quantity given the Firm is in a full valuation allowance place.