Sharecare (SHCR) investor relations material

Executive summary

• Revenue for Q2 2024 was $94.3 million, down 15% year-over-year, with declines in the enterprise channel offsetting modest growth in provider and life sciences channels.

• Net loss for Q2 2024 was $42.0 million, compared to $35.6 million in Q2 2023, reflecting lower revenue and higher general and administrative expenses.

• Sharecare entered into a definitive merger agreement with Altaris affiliates; shareholders to receive $1.43 per share in cash, with closing expected in the second half of 2024.

• Adjusted EBITDA for Q2 2024 was $7,000, compared to $3.3 million in Q2 2023.

• The company continues to face a contract dispute with a customer, impacting enterprise revenue and overall financial results.

Financial highlights

• Q2 2024 revenue decreased by $16.1 million year-over-year, primarily due to enterprise channel declines from customer disputes and contract expirations.

• Net loss per share for Q2 2024 was $(0.12), compared to $(0.10) in Q2 2023; adjusted loss per share was $(0.04), versus $(0.03) in Q2 2023.

• Cash and cash equivalents as of June 30, 2024, were $85.2 million, with $52.4 million available under the revolving credit facility.

• Total costs and operating expenses for Q2 2024 were $135.4 million, down from $144.5 million in Q2 2023.

• Stockholders' equity decreased to $379.6 million from $429.9 million at December 31, 2023.

Outlook and guidance

• The pending merger with Altaris is expected to close in the second half of 2024, subject to shareholder approval and customary conditions.

• No financial guidance provided for the remainder of 2024 due to the pending acquisition by Altaris.

• Management expects continued cost savings from globalization efforts, targeting $30 million in annualized reductions.

• Ongoing contract disputes and the impact of the merger process are expected to continue affecting financial results in the near term.