Sharecare, Inc.

Good day, and thank you for standing by. Welcome to the ShareCare First Quarter 2022 Earnings Call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Evan Smith, Senior Vice President of Finance and Investor Relations. Please go ahead.

Thank you. Good morning and welcome to ShareCare's first quarter fiscal 2022 earnings conference call and webcast. All participants will be in a listen-only mode. This is Evan Smith, 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. Today's call is being recorded, and 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 with the meaning of The safe harbor provision of the private securities litigation reform act of 1995, which includes our second 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 are to take 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 Form 10-K for the year ended December 31, 2021. In addition, please note that the company will be discussing certain non-GAAP financial measures that we believe are important to evaluating performance. Details on the relationship between these non-GAAP measures to the most comparable GAAP measures and reconciliation of historical non-GAAP financial measures can be found in a press release that is posted on the company's website. I would now like to hand the conference call to Mr. Jeff Ronald. Jeff, please go ahead.

Thank you, Evan, and thank you all for joining us this morning. Coming off a successful build year in 2021, we believe we entered fiscal 2022 in the strongest position in the company's history across all three channels, continuing to sign new clients, renew and retain existing clients, and build a strong pipeline several times beyond where it was one year ago. The exceptional growth in our pipeline has benefited from our larger sales team and expanded integrated platform capabilities. To further support growth going forward, we are continuing to expand our sales team, as well as relationships with leading benefits consulting firms and channel partners to further extend our reach and increase our market penetration. In addition, we continue to have strong client retention of over 95% across all channels, including securing a three-year renewal with our largest client, which I mentioned on our last call. In the first quarter, we exceeded our guidance, delivering revenue of $100.7 million, 12% ahead of the prior year, and positive adjusted EBITDA while continuing to invest in sales and marketing as well as product and technology to support accelerated growth in the second half of the year and into 2023. With over $250 million in cash on our balance sheet to support growth across all three channels, we remain confident in our full year guidance and ability to be cash flow positive by the end of the year. Given the strength of our performance and balance sheet and our confidence in our outlook for fiscal 22 and fiscal 23, market volatility in our stock price has created attractive buying conditions at various times. Therefore, the Board has approved a $50 million share repurchase program. We will be strategic and opportunistic to take advantage of those situations on behalf of our shareholders. At Enterprise, we have gone to market with a single digital front door that fully and seamlessly integrates a suite of virtual care and high-touch offerings, including the introduction of ShareCare Plus, our advocacy solution, a tech-enabled home care offering with CareLinks, a library of clinically accredited digital therapeutics, and now virtual primary care as part of our solution set. Further, by integrating data from ShareCare's Community Wellbeing Index into our engagement platform, we are uniquely positioned to consider the impact of social determinants of health, which account for up to 80% of differences in health outcomes between individuals. Health equity is increasingly becoming a critical component of how clients are looking at more effectively addressing their diverse populations and the communities in which they work, live, pray, and play. So let me take a moment to refresh everyone on the value of our Community Wellbeing Index. The index is a benchmark of our nation's health that enables states and communities to understand health risk and opportunities across physical and financial resilience, social and community context, and everyday purpose. Our index is based on surveys from every community in the U.S. and brings together more than 600 proven health risk factors into a single measure, combining both individual and social factors. By leveraging a combination of social risk and clinical informatics, we can inform our enterprise clients on the best solutions to address their population's highest health risk, including those represented in their clinical profile and the social determinants of health that define their environment and surroundings. We are confident that our comprehensive data-driven platform places ShareCare in a strong position compared to those who are more narrowly focused on digital or high-touch point solutions. By delivering a seamless digital front door that addresses the needs of each member of an entire client population, we not only improve each individual's experience and health outcomes, but also reduce the administrative burden and cost associated with managing a litany of solutions. Our platform and value we are creating is driving new business wins and pipeline opportunities across the enterprise channel. We had approximately 11 million eligible lives on the platform in the first quarter, with additional growth expected as we launch new programs and onboard new clients in the second half of the year. In addition to the 70,000 eligible lives for ShareCare Plus that will go live in 2023, we discussed in the last earnings call We now have more than 10 mid-sized and large employers in late-stage contracting and additional opportunities in the pipeline. In addition, CareLynx, our tech-enabled home care solution, continued to expand during the quarter and is exceeding our initial growth targets. With an MPS score of 95, clearly demonstrating its high-quality service, CareLynx added new business with existing payer customers, won new payer clients, and expanded pipeline opportunities across its service offering. These wins and opportunities will support growth in fiscal 2022 and 2023. By expanding our reach into virtual primary care with Hydrogen Health, a joint venture with Anthem, KHealth, and Blackstone, we showcase another example of the versatility of our approach as well as our strong partnership with Anthem. ShareCare's interoperable platform enables us to quickly add new capabilities that are important to our clients whether we build, buy, or partner to achieve them, and in turn, retain our focus on enhancing engagement, navigation, and tech-enabled capabilities that drive value across the entire patient journey. This approach will also drive higher PMPM engagements and increase cross-selling and up-selling opportunities. As a result of our new wins, partnerships, and continued innovation, we remain confident in increased momentum for enterprise as we move towards the second half of fiscal 22 and into fiscal 2023. Now let's move on to the provider business. During the quarter, we delivered strong year-over-year growth, primarily reflecting increased record retrieval results, which are expected to sequentially improve as we move through the year. We remain on plan to achieve our target of 6 million medical records retrieved for the year. Growth in this area is supported by increased penetration of existing clients, solid client retention, and securing new business. During the quarter, we onboarded over 100 new client sites and continue to see upward growth trends with a significant increase in the average deal size and nearly double the opportunities in our pipeline, including those with additional large payers. The underlying market trends remain strong for record retrieval and ROI with increased demand for audits, Medicare and commercial risk adjustment, HEDIS, and demand for improved revenue cycle management to review and expedite claims or address denied claims. In addition, due to the Cures Act, recent regulation, and increased interest in fast healthcare interoperability resources, or FHIR, we are seeing an increasing number of interoperability solutions that we can apply to our offering, which will drive new use cases and expand our market opportunity. The move to digitize the release of information process in record retrieval business will reduce the manual administration oversight and make it easier to facilitate the request information quickly and compliantly for patients, providers, payers, insurance companies, and other clients. When combined with the implementation of robotic process automation, we believe we can deliver even higher performance for our customers as well as improve our margins going forward. And in Life Sciences, we continue to grow our top 10 existing client contracts as well as secure new opportunities for our digital patient engagement solutions on behalf of leading pharmaceutical brands. During the quarter, we conducted a customer feedback survey which demonstrated over 90% client satisfaction, highlighting our knowledge of each customer's subject matter, service level, and campaign performance, as well as their likelihood to recommend us. This underscores why we see solid metrics for the business, including a nearly 100% renewal rate in the quarter and new client wins. Consistent with the prior quarter, we have strong visibility into both our contracted and pipeline opportunities, with a double-digit increase in new opportunities compared with the same time last year. The strength of our content, first-person data, and our personalized omnichannel approach continues to drive program execution and competitive advantage. ShareCare Digital Platform simplifies the health journey for every person, providing one place to go for all your well-being, health care, and benefits-related needs. It empowers each individual to better understand and manage their health every day. addressing rising costs and diverse health care and wellness needs. It also empowers our payer, employer, and provider clients to provide a single digital front door to their populations, driving increased engagement while enhancing our productivity and retention, and simultaneously delivering improved costs and outcomes. In addition, as a comprehensive navigation and advocacy platform, we help uncover gaps in care across the entire patient journey, helping to drive care to optimal and lower cost settings, including virtual or in-home care. In closing, in 2021, we established a stronger foundation for success by adding DocAI to drive innovation and product development, partnering with Anthem to build a digital first pair agnostic advocacy solution, expanding our sales team and enabling us to increase our reach with existing and new clients, extending our presence into the home by acquiring CareLinks and going public, which enabled us to strengthen our balance sheet to support future growth. In 2022, we are building on this stronger foundation, focusing on selling larger engagements, creating more opportunities for cross-selling, and continuing to invest in efforts that deliver more value and product innovation to support our clients. In addition, By expanding with strategic partners and investing internally to improve automation and operational efficiency, we believe we will drive accelerated top and bottom line growth in 2023 and going forward. To this end, our objectives remain unchanged. Increase the number of covered lives on our digital platform, continue to integrate new tech-enabled capabilities, whether wholly owned or through partnerships, and drive engagements, improve access, enhance outcomes, and lower cost. 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 2022. Justin.