Sharecare, Inc.

Good day, and welcome to the ShareCare fourth quarter and fiscal 2021 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star then one on your touchtone telephone. If anyone should require assistance during the conference, please press star then zero to reach an operator. As a reminder, this call may be recorded. I'd like to turn the call over to Evan Smith, SVP Finance and Investor Relations. You may begin.

Evan Smith Thank you. Good morning and welcome to Sharecare's fourth quarter and fiscal 2021 earnings conference call and webcast. This is Evan Smith, as the operator indicated. I'm SVP of Finance and Investor Relations. After today's presentation, there will be an opportunity to ask questions. Leading today's call are Mr. Jeff Arnold, Chairman and CEO, and Mr. Justin Ferraro, President and Chief Financial Officer. Note, today's call is being recorded in an archive of the recording will be available later today on the investor relations section of our website. Before we begin, we would like to remind you that certain statements made during this call will be forward-looking statements within the meaning of the safe harbor provision of the Private Security Litigation Reform Act of 1995, which includes our first quarter and full year 2022 guidance. These forward-looking statements are subject to various risks and uncertainties and reflect our current expectations based on our beliefs, assumptions, and information currently available to us. Although we believe these expectations are reasonable, we undertake no obligation to revise any statement to reflect changes that will occur after this call. Descriptions of some of the factors that could cause actual results to differ materially from these forward-looking statements are discussed in more detail in our filings with the SEC, including the risk factors section of our filings. In addition, please note that the company will be discussing certain non-GAAP financial measures that we believe are important in evaluating performance. Details on the relationship between these non-GAAP measures to the most comparable gap measures and reconciliation of historical non-gap financial measures can be found in the press release that is posted on the company's website. I would now like to hand the conference call over to Mr. Jeff Arnold. Please go ahead, Jeff.

Thank you, Evan, and thank all of you for joining us this morning. 2021 was an incredible year for ShareCare. We accelerated our growth and enhanced the capabilities of our digital engagement platform. both organically and through M&A activities. We strengthened our operational leadership, sales, and technology teams and grew revenue year over year by 26% to $413 million and delivered $27 million in positive adjusted EBITDA. ShareCare ended the year with a strong balance sheet with no debt and over $300 million in liquidity to support future growth and profitability. In 2021, we expanded on our digital first wellness benefits and health navigation solution to a fully integrated digital front door with a connected suite of virtual care and higher touch offerings. Specifically, we integrated additional digital therapeutic programs, creating new revenue opportunities for current and new customers. Introduced ShareCare Plus, our digital first payer agnostic advocacy solution to seamlessly enable high touch navigation and clinical resources, and integrated the acquisition of CareLynx, our tech-enabled home health solution, providing care, collecting valuable data in the home, and providing a key differentiation of our advocacy solution. With these expanded capabilities, we're even more excited today about our future as we are in a very strong position to support our long-term growth. Our core digital platform drives engagement, consolidates point solutions, informs caregivers and advocates with real-time and comprehensive data, and extends to the home. This helps enhance the member journey, lower costs, and improve outcomes. The increased breadth of the platform positions ShareCare to drive larger, higher PMPMs and more strategic multi-year deals with our current and future customers. While strengthening the platform, we also took a hard look across our portfolio of solutions. And we determined that our vaccine and health passport solutions and our patient-centered medical home solution did not meet our long-term growth hurdles and are taking actions that we believe sets us up for even greater success. I will get into these details in a minute. First, a brief update on our core business. ShareCare's platform helps nearly 10 million employees, plan members, and patients better understand their health, optimize their benefits, discover and address critical care gaps, and improves health outcomes while helping to lower the cost of care. We have an extensive roster of clients, including leading employers, payers, health systems, and government. Our benefits and health navigation capabilities built on deep data analytics provide dynamic visibility into the cost of care and identify cost avoidance opportunities. This enables us to efficiently develop personalized care plans that determine the next best action to address gaps in care and health and social risk that impacted individuals' well-being. We are building on this engagement platform and reach with our new payer-agnostic advocacy platform, ShareCare Plus, which was built and commercially available in under a year and includes health benefits and care navigation all in one place, a library of clinically validated NCQA-accredited digital therapeutics, a team of personal health and clinical advocates, providing high-touch concierge-level service, which can be extended into the home, and a holistic customer 360-degree care console with clinical and customer engagement insights for health advocates and employers. We are already in contract with two large employers covering nearly 70,000 lives for ShareCare+. Both are anticipated to launch in 2023. We have a strong pipeline and are in active discussions with many other employer-impaired clients. Additionally, we strengthened our partnership with Anthem, establishing a collaboration agreement and developing a multi-career advocacy solution to be offered to national employer groups and health plans. Home care has proven to lower costs of care, create savings for health plans, and significantly improve patient and member satisfaction. This has made home health care a must-have, in any integrated solution providing ShareCare with a unique competitive advantage. As a quick refresher, we acquired CareLinks last August, and it's delivering above our expectations. CareLinks leverages a network of 450,000 caregivers as a single source nationwide home care platform that provides intermittent on-demand personal care services in the home of patients while leveraging mobile technology that facilitates rich data capture population health analytics, and the enabling of real-time care coordination with remote clinical teams via ShareCare. CareLinks expanded rapidly in 2021 and into 2022, now serving more than 400 Medicare Advantage plans, including several of the nation's largest payers as a free in-home personal care benefit to more than 1.5 million Medicare Advantage members. We expect this growth to continue along with the high demand for traditional home care services from our payer clients. CareLynx delivers a complimentary personal care service, which is a critical link in their home-based strategy. And these services are a significant benefit to employers to reduce absenteeism and improve productivity. All of these activities underscore our commitment to manage our solutions with a focus on digital-first and tech-enabled capabilities, that will deliver the best long-term value for our customers, their populations, and shareholders. So let me reiterate. Our focus is on expanding our core platform to drive higher PMPMs and broader patient engagement, platform engagement, to drive better value to our customers, which led us to the decision to suspend support of our vaccine assistant and health passport solution, which is part of our health security portfolio and traditionally to transition our legacy patient-centered medical home or PCMH business to a more tech-enabled model. During COVID, as a digital healthcare leader, we felt it was important for ShareKit to leverage its development and platform capabilities to support its customers and communities we serve. Therefore, we quickly mobilized to develop our vaccine assistant and health passport solution. Having successfully responded, enabling over 5 million vaccine registrations and supporting over 80 vaccination sites, we achieved our objective. But today, the outlook has changed, and thankfully, people are moving back to a normal lifestyle. Therefore, the solution does not meet our performance hurdles going forward, and we've made the decision to suspend our internal support. In addition, in conjunction with the renewal with one of our largest payer clients, we'll be working collaboratively to transition and streamline our legacy patient-centered medical home, or PCMH business, to a more tech-enabled model that, when redeployed, will drive improved productivity, increased coordination with clinical teams and community, and enhanced member engagement. We'll continuously review our portfolio with the objective of optimizing our capital allocation and resources to deliver the highest long-term revenue growth profitability, and shareholder value, and ensure that we continue to simplify our story to make it easier to track our progress. Before I close, let me give a few more highlights on our 2021 performance. We are focused on two objectives for our enterprise business. One, to increase the number of covered lives on our digital engagement platform, and two, to integrate new digital and tech-enabled capabilities into our platform to drive larger engagements and help our customers activate and engage their populations, improving health outcomes by focusing on the cost, quality, and access to care. During the year, we grew Eligible Life on the platform to approximately 9.7 million, expanding our relationship with existing customers while activating new customers like Aflac, Delta, Centene, Humana, and several others leading employers and payers. And more recently, we signed an agreement with Centene to expand into Louisiana. As a result of our success, we increased our potential serviceable lives to 91 million across the existing contracted client populations, presenting a material upside opportunity to grow within our current client base. In our record retrieval business for payers and providers, we retrieved approximately 5 million records in fiscal 2021. a 19% increase over the prior year. In payment integrity, we processed over $6 billion in claims and identified over $100 million in overpayments and continue to expand our pipeline and add new clients, including two new Medicare supplemental insurance companies. And in life sciences, we delivered strong growth, leveraging the strength of our award-winning content library and first-party database of over 100 million users providing digital patient engagement solutions for life sciences brands to improve consumer activation and potential health outcomes. During the year, we increased our penetration with top 20 pharma companies, as well as expanded our revenue with the top 50 pharma brands. I am proud of our team and their significant accomplishments in 2021 to expand the platform, placing us in a very strong position to sell larger integrated digital platform engagements to which will solidify ShareCare's role as a strategic long-term partner to our customers. We will continue to drive growth by upselling complementary tech-enabled solutions, growing eligible lives with those existing and new clients, and cross-selling services. We are confident we can deliver sustainable long-term growth and improve profitability going forward. Now let me turn the call over to Justin, who will review our financial results for the quarter and the fiscal year and share our financial outlook and assumptions for fiscal 2021. Justin?