On August 9, 2024, Sharecare Inc (SHCR, Financial) released its 8-K filing detailing the financial results for the second quarter ended June 30, 2024. Sharecare Inc is a digital healthcare platform company that helps members consolidate and manage various components of their health in one place, regardless of their health journey. Its platform offers an accessible, interactive, personalized, and rewarding environment that aims to transform user engagement with healthcare from episodic to everyday.
Performance Overview
Sharecare Inc (SHCR, Financial) reported a revenue of $94.3 million for Q2 2024, a 14.6% decrease from $110.4 million in the same period last year. This figure fell short of the analyst estimate of $94.72 million. The net loss attributable to Sharecare increased to $42.0 million from $35.1 million in Q2 2023, translating to a net loss per share of $0.12, compared to the analyst estimate of -$0.10.
Financial Achievements and Challenges
Despite the revenue decline, Sharecare Inc (SHCR, Financial) made significant strides in its Enterprise channel strategy, launching a new platform for Medicaid to 750,000 members on July 1. CEO Brent Layton expressed optimism about the company's ability to drive activation, engagement, and positive impact at scale.
“We began the second half of 2024 executing on our Enterprise channel strategy to expand into additional verticals with the successful launch of our new platform purpose-built for Medicaid to 750,000 members on July 1,” said Brent Layton, CEO of Sharecare.
However, the company faced several challenges, including increased costs related to non-cash stock compensation, non-operating, non-recurring costs, reorganizational and severance costs, and acquisition-related costs. These factors contributed to the increased net loss.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $94.3 million | $110.4 million |
| Net Loss | $42.0 million | $35.1 million |
| Net Loss Per Share | $0.12 | $0.10 |
Balance Sheet and Cash Flow
As of June 30, 2024, Sharecare Inc (SHCR, Financial) reported total assets of $560.2 million, down from $613.6 million as of December 31, 2023. The company's cash and cash equivalents stood at $85.2 million, a decrease from $128.2 million at the end of 2023. Total liabilities were $122.4 million, slightly down from $125.6 million at the end of 2023.
Adjusted Financial Metrics
Sharecare Inc (SHCR, Financial) reported an adjusted EBITDA of near break-even, compared to $3.3 million in Q2 2023. The adjusted net loss per share was $0.04, up from $0.03 in the same period last year.
Proposed Acquisition by Altaris
On June 21, 2024, Sharecare entered into a definitive agreement to be acquired by an affiliate of Altaris, LLC. Under the terms of the agreement, Sharecare stockholders will receive $1.43 in cash per common share upon closing. The transaction is expected to be completed by the end of 2024, subject to stockholder approval and other closing conditions.
“Our focus for the second half of the year is to accelerate growth and maximize profitability by delivering our proven solutions at higher operating margins, while continuing to invest in innovation to drive consumerism in healthcare,” said Justin Ferrero, president and chief financial officer of Sharecare.
For more detailed financial information, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from Sharecare Inc for further details.
