SCHR stock rose in morning trade on November 10, 2021, after the company reported solid earnings and revenue beats.

Sharecare announces third quarter 2021 financial results and operational highlights

Sharecare (Nasdaq: SHCR), the digital health company that helps people manage all their health in one place, today announced financial results for the quarter ended September 30, 2021.

Sharecare reported Q3 adjusted EPS of 0c versus the consensus estimate of (3c). The company reported Q3 revenue of $105.6M versus the consensus estimate of $103.52M.

“Our team delivered strong revenue and adjusted EBITDA ahead of guidance while increasing our investment in technology and sales to drive consistent double-digit growth going forward,” said Jeff Arnold, co-founder, chairman, and CEO of Sharecare. “All channels demonstrated strong underlying trends with Enterprise moving closer to our goal of nearly 10 million lives on the platform by year-end, Provider delivering strong record retrieval volumes, and Consumer adding a significant number of new brands to its roster at higher average revenue per program. The strength of our performance across all channels in the quarter and year-to-date supports the increase in the midpoint of our adjusted EBITDA guidance for the year as well as sets a strong foundation to deliver on our fiscal 2022 outlook.”

Third Quarter 2021 Financial Results
All comparisons, unless otherwise noted, are to the three months ended September 30, 2020.

  • Revenue of $105.6 million compared to $80.2 million, an increase of $25.4 million, or 32%
  • Net loss of $43.1 million compared to net loss of $6.4 million, an increase to net loss of $36.7 million. Net loss in the third quarter of 2021 included $11.1 million in non-cash stock compensation; $16.8 million in transaction related acquisition costs and other costs associated with our business combination with Falcon Capital Acquisition Corp; $12.1 million in amortization of deferred financing fees associated with the settlement of debt; and $2.3 million of other non-cash or non-operational costs. Excluding these costs, the Adjusted Net Loss was $0.8 million in the current quarter.
  • Adjusted EBITDA of $7.9 million compared to $13.3 million, a decrease of $5.4 million which reflects increased investments in the current period for both technology and sales force expansion to support growth and a reversal of temporary cost reduction actions in the prior year, including furloughing employees as a direct and prudent reaction to COVID-19.
  • Net loss per share of $0.13 compared to $0.03, a decrease of $0.10 which reflects the aforementioned items impacting net loss.
  • Adjusted earnings per share of $0.00 compared to $0.01, a decrease of $0.01 which excludes the impact of non-cash and non-operational expenses.

Third Quarter 2021 Operational Highlights

  • Added new employer, government, provider, and life sciences clients to support fiscal 2022 growth objectives. Includes a diverse group of Fortune 500 companies as well as mid-size and regional organizations.
  • Launched Unwinding by Sharecare, a broad-based mental well-being app designed to help people better understand how their minds work, reduce their stress, and build healthier habits.
  • Expanded leadership team with executive hires from UST and Salesforce.
  • Closed the acquisition of CareLinx, a home health company with a network of 450,000 tech-enabled caregivers who deliver personal care services in the home.
  • Announced enhancements to a suite of solutions for pharmaceutical and life sciences brands to enable patient engagement and optimize outcomes.
  • Released new well-being research revealing broad improvements in U.S. metro areas in 2020 while gaps increased for rural America.

Sharecare deliveries ‘solid’ beat in second quarter as public company, says BTIG

On November 10, 2021, BTIG analyst David Larsen tells investors in a research note that Sharecare delivered a “solid” revenue and EBITDA beat, and this is important as it is only the second quarter that the company has reported as a public company. Larsen, who made no change to his Buy rating on SHCR stock or $15 price target, feels management is under-promising and over-delivering, adding that Sharecare is one of the highest quality digital health investments available to the market.

Call with Sharecare customers raises BTIG conviction in long-term outlook

On October 29, 2021, BTIG analyst David Larsen noted that he hosted a call earlier this week with Rajeev Ronanki, the President of Digital Platforms at Anthem (ANTM) and Jae Kullar, the General Manager of Global Health and Wellbeing at Delta Air Lines (DAL), which he identifies as two “key customers” of Sharecare (SHCR). The call left him with “higher conviction in the long-term outlook” for Sharecare, said Larsen, who would expect demand for Sharecare and digital health solutions to continue to increase as digital first plan designs become more mainstream. He keeps a Buy rating and $15 price target on Sharecare.

SHCR stock technical analysis

The long term trend is positive and the short term trend is negative. Large players volume is slowly fading higher. It is probably better to wait until this picture becomes clearer. SHCR has a bad technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 7.19, a stop order could be placed below this zone. Click here to sign up for email alerts on when SHCR stock is a good entry.

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