Sharecare Inc (SHCR) Reports Narrowed Net Loss and Record Adjusted EBITDA Margins in Q3 2023
Sharecare Inc (NASDAQ:SHCR) reports a decrease in net loss to $24.5 million in Q3 2023 from $27.4 million in Q3 2022.
Adjusted EBITDA increased to $9.6 million, a significant improvement from $5.2 million in the same quarter last year.
Revenue slightly decreased by 1% year-over-year to $113.3 million, with record revenue in the Provider channel.
Sharecare anticipates revenue between $452.5 million to $460 million and adjusted EBITDA between $21 million to $26 million for fiscal 2023.
On November 9, 2023, Sharecare Inc (NASDAQ:SHCR), a leading digital health company, announced its financial results for the third quarter ended September 30, 2023. The company reported a decrease in net loss to $24.5 million, down from $27.4 million in the same period last year. This improvement is partly attributed to a comprehensive cost-savings program and a focus on achieving cash flow breakeven. Sharecare's adjusted EBITDA also saw a notable increase to $9.6 million, compared to $5.2 million in Q3 2022, marking a record margin for the company.
Financial Performance Overview
Despite a slight decrease in revenue to $113.3 million, down 1% from the previous year, Sharecare experienced strong performance across its channels, particularly with record revenue in the Provider segment. This was slightly offset by lower volumes in the company's nurse staffing service. The adjusted net loss per share improved to $0.00, compared to $0.01 in Q3 2022.
Balance Sheet and Cash Flow Insights
Sharecare's balance sheet reflects a solid financial position with $128 million in cash and cash equivalents. The company's total assets stood at $629.6 million as of September 30, 2023. The total liabilities, including redeemable convertible preferred stock and stockholders' equity, matched the total assets, ensuring a balanced financial structure.
Operational Highlights and Future Outlook
Jeff Arnold, chairman and CEO of Sharecare, expressed satisfaction with the company's financial results and operational achievements. He highlighted the successful implementation of cost-saving measures and investments in generative AI, clinical advocacy, and tech-enabled home care. Looking forward, Sharecare anticipates revenue in the range of $452.5 million to $460 million and adjusted EBITDA between $21 million to $26 million for the full fiscal year 2023.
Our adjusted EBITDA guidance for 2023 reflects an update to conform to the SECs clarified guidance for non-GAAP financial measures, which impacts our full year adjusted EBITDA by approximately $4 million," said Justin Ferrero, president and CFO of Sharecare. "Given our teams ability to prudently manage costs and drive operational efficiencies throughout the business, we expect to deliver on our $30 million annualized cost savings initiative and are focused on closing the year strong, driving momentum into 2024."
In addition to the financial results, Sharecare announced a leadership transition with Brent Layton set to succeed Arnold as CEO effective January 2, 2024, while Arnold will transition to the role of executive chairman. The company remains committed to enhancing value for users, customers, and shareholders, with a focus on growth opportunities in government-funded programs and value-based care contracts.
Sharecare's financial results and the reconciliation of GAAP net loss to adjusted EBITDA and adjusted net loss are available in the detailed financial tables provided with the earnings release. The company will host a conference call to review the third quarter results and provide further insights into its performance and strategy.
For more detailed information on Sharecare Inc (NASDAQ:SHCR)'s financial results, please visit Sharecare's Investor Relations.
Explore the complete 8-K earnings release (here) from Sharecare Inc for further details.
This article first appeared on GuruFocus.
