Executive Summary

Revenue of $113.3M, exceeding the high end of Q3 guidance ($111–$113M); adjusted EBITDA was $9.6M with record adjusted EBITDA margins; net loss per share improved to $0.07 .
Q4 2023 guidance: revenue $111–$113M and adjusted EBITDA $9.5–$11.5M; FY23 revenue guidance maintained at $452.5–$460M, while adjusted EBITDA guidance lowered to $21–$26M to conform to SEC clarified non-GAAP presentation (approx. $4M impact) .
Mix highlights: record revenue in Provider offset slightly by lower volumes in nurse staffing service; YoY revenue down 1% .
Leadership change announced with Brent Layton (ex-Centene president/COO) to become CEO effective Jan 2, 2024, and founder Jeff Arnold transitioning to Executive Chairman—potential strategic catalyst toward government-funded programs and value-based contracts .

What Went Well and What Went Wrong

What Went Well

“Record adjusted EBITDA margins” driven by cost-savings execution and advancement toward cash flow breakeven; adjusted EBITDA rose to $9.6M versus $5.2M YoY .
Strong multi-channel performance with “record revenue in Provider,” indicating demand strength despite staffing headwinds .
Leadership alignment for next phase: “focus on driving the overall strategy…with next generation technology such as generative AI” and positioning to expand in government-funded programs and value-based care .

What Went Wrong

Nurse staffing volumes were lower, modestly offsetting otherwise strong channel performance; total revenue decreased 1% YoY to $113.3M from $114.6M .
Continued GAAP losses: net loss attributable to Sharecare was $24.5M, albeit improved from $27.4M YoY; net loss per share improved to $0.07 vs $0.08 .
Non-GAAP methodology recast to align with SEC clarified guidance, reducing FY23 adjusted EBITDA by approximately $4M and adding back globalization/severance and other items (non-recurring), highlighting ongoing transformation costs .

Financial Results

Quarterly Progression (Q1 → Q3 2023)

Metric	Q1 2023	Q2 2023	Q3 2023
Revenue ($USD Millions)	$116.3	$110.4	$113.3
Net Loss per Share ($)	$(0.10)	$(0.10)	$(0.07)
Adjusted Loss per Share ($)	$(0.03)	$(0.03)	$0.00
Adjusted EBITDA ($USD Millions)	$2.1	$3.8	$9.6
Adjusted EBITDA Margin (%)	1.8% (calc: 2.1/116.3)	3.5% (calc: 3.8/110.4)	8.5% (calc: 9.6/113.3)

Year-over-Year (Q3 2023 vs Q3 2022)

Metric	Q3 2022	Q3 2023
Revenue ($USD Millions)	$114.6	$113.3
Net Loss per Share ($)	$(0.08)	$(0.07)
Adjusted Loss per Share ($)	$(0.01)	$0.00
Adjusted EBITDA ($USD Millions)	$5.2	$9.6

Segment breakdown: Company highlighted “record revenue in Provider” but did not disclose segment-level revenue figures in the Q3 press release .

KPIs: The Q3 press release referenced “execution against our core KPIs” but did not provide specific KPI counts; prior disclosures referenced eligible enterprise lives and records processed, but Q3 figures were not presented in the release .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($USD Millions)	FY 2023	$452.5–$460.0	$452.5–$460.0	Maintained
Adjusted EBITDA ($USD Millions)	FY 2023	$25–$30	$21–$26 (SEC clarified non-GAAP reduces by ~$4M)	Lowered
Revenue ($USD Millions)	Q4 2023	N/A	$111–$113	New
Adjusted EBITDA ($USD Millions)	Q4 2023	N/A	$9.5–$11.5	New
Revenue ($USD Millions)	Q3 2023	$111–$113	Actual $113.3	Beat vs guidance high end
Adjusted EBITDA ($USD Millions)	Q3 2023	$8–$10	Actual $9.6	In range

Earnings Call Themes & Trends

Note: The Q3 2023 earnings call transcript could not be retrieved due to a tool/database error; themes below reflect management’s press releases.

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3 2023)	Trend
Generative AI / Technology Initiatives	Continued investments to “innovate and integrate new technologies” and “generative AI” to personalize care . Focus on personalized insights and identifying risks at scale via data .	Ongoing investment in “generative AI,” product innovation, and adaptive tech; CEO transition emphasizes next-gen tech focus	Expanding
Cost Optimization & Globalization	Workforce globalization, automation, re-engineering; working toward cash flow positive within 2023 .	“Successful implementation of comprehensive cost-savings program”; $30M annualized cost savings on track; adjusted EBITDA methodology aligned to SEC guidance	Continuing execution
Provider Channel Performance	Strength in Provider, records processing KPIs outlined for year goals .	“Record revenue in Provider” despite lower nurse staffing volumes impacting mix	Strong with staffing headwinds
Government-funded Programs & Value-based Care	Not emphasized in Q1/Q2 PRs.	Strategic pivot highlighted with new CEO experience in Medicare/Medicaid/Exchange; targeting government-funded programs and value-based contracts	Newly emphasized
Cash Flow / Liquidity	“Substantially improved cash burn” and robust balance sheet in Q2 .	“Advancement toward cash flow breakeven”; continued efficiency focus	Improving
Non-GAAP Presentation	Standard adjusted metrics and add-backs in Q1/Q2; exiting contract costs previously excluded .	Adjusted EBITDA/Net Loss recast to include certain costs per SEC clarified guidance; FY23 adj. EBITDA lowered ~$4M	Recast to stricter presentation

Management Commentary

Jeff Arnold (CEO, transitioning to Executive Chairman): “Record adjusted EBITDA margins…successful implementation of our comprehensive cost-savings program, and advancement toward cash flow breakeven” .
Justin Ferrero (President & CFO): FY23 adjusted EBITDA “reflects an update to conform to the SEC’s clarified guidance…impacts our full year adjusted EBITDA by approximately $4 million,” with cost discipline expected to deliver the $30M annualized savings .
Brent Layton (incoming CEO): “Sharecare is uniquely positioned thanks to its robust platform and adaptive technology…opportunities for profitable growth are strong” .
Strategic direction: “Accelerating growth…capitalizing on untapped opportunities, in particular with government-funded programs and value-based care contracts” .

Q&A Highlights

The Q3 2023 earnings call transcript was unavailable due to a tool/database error, so Q&A specifics, clarifications, and tone shifts cannot be extracted. Commentary above uses press release disclosures .

Estimates Context

Wall Street consensus (S&P Global) for SHCR Q3 2023 was unavailable through our SPGI/Capital IQ mapping, so reported vs consensus comparisons cannot be shown at this time. Values retrieved from S&P Global were unavailable due to mapping for this ticker.

Key Takeaways for Investors

Q3 execution beat on revenue vs guidance high end and delivered record adjusted EBITDA margins, signaling progress from cost actions and improved operational efficiency .
Provider channel momentum (record revenue) offsets staffing-related volume headwinds; watch mix and sustainability of margin gains into Q4 and FY24 .
FY23 revenue guidance held; adjusted EBITDA lowered for SEC clarified non-GAAP methodology—accounting change, not new expenses; still implies meaningful margin expansion versus 1H levels .
Strategic leadership transition to Brent Layton could catalyze expansion into government-funded programs and value-based care, potentially improving visibility and scale over time .
Near term, monitor delivery on $30M annualized cost savings, cash flow breakeven trajectory, and Q4 execution against $9.5–$11.5M adjusted EBITDA guide .
Without consensus benchmarks, use guidance and sequential trend (Q1→Q3 adj. EBITDA scaling from $2.1M to $9.6M) to frame earnings power trajectory into 2024 .
Non-GAAP recast and transparency around add-backs reduce headline adjusted metrics; scrutinize recurring vs non-recurring costs as transformation completes .

Sharecare, Inc. (SHCR)·Q3 2023 Earnings Summary