Great. Well, good afternoon, everyone. My name is Craig Hettenbach. I cover the digital health space for Morgan Stanley. Very pleased to have with us, Sharecare today, Founder and CEO, Jeff Arnold. So welcome. Thank you. Before we get started, I do have to read, "For important disclosures, please see the Morgan Stanley Research Disclosure website. It's www.morganstanley.com/researchdisclosures." So with that, Jeff, I thought we'd just kinda kick things off with a brief overview from you in terms of you founding Sharecare, kinda state of the business, and then we can get into it. Yeah, great. So, you know, Craig, as you know, I started WebMD back in the late nineties, so I've been in digital health for some time. And, you know, my focus has always been, you know, how do you empower people to live their best lives? And when I got back into healthcare and when we founded Sharecare, in 2012, you know, where I saw the opportunity was, you know, what had changed is smartphones had become pervasive, and so potentially everybody was walking around with what could be perceived as the greatest healing device that we'd ever seen. And what if we could figure out ways that we could give data ownership back to the person? So instead of the PBM having the data or the EMR having the data, the person would have the data. And that there was now these new enabling technologies that could connect me as a person, you know, to my health plan, to my employer, and to my doctor. And so got really inspired by that, and we set off to build Sharecare as, not as a point solution, but as a true end-to-end platform. So, you know, we raised $500 million privately, a lot of from big strategic partners where we hoped to become their digital ally. And, and then we went public and raised capital as well. Made a series of acquisitions, in an effort to build that end-to-end platform, where we could have an integrated digital front door that would get people highly engaged in their well-being. A full marketplace of digital therapeutics, and so based on data, if somebody needed to be less anxious or manage their diabetes or lose weight, we would have evidence-based solutions for that. And then we connected advocates, because we said people really need to understand how to navigate their benefits and have somebody there that can hold their hand when needed, but also be self service, similar to how, you know, we manage our financial services. And lastly, in the platform, we needed to be able to have the ability to get to convenient places for the people, especially people that were at risk, and so we invested in tech-enabled home care. We've taken that platform, and we've created a pretty powerful go to market across three segments. And so the first segment is what we define as enterprise. We take that platform, and we sell it to large health plans, we sell it to large employers, many self-insured, and we sell it to state governments. We've been able to get nearly 13 million covered members, and so we get paid per member per month for nearly 13 million people across those three channels. In addition to that, we have a second segment that we label as provider. What that business is is that we have 8,000 clients in which we have connectivity to extract medical records. This year, we will get paid to extract about 6.5 million medical records. And it's very synergistic because the idea was back to getting people their data, is that, as we extract those medical records and get paid to do that, could we also deliver that back to our users so they could have all their health in one place? As well as we always saw, like, amazing cross-selling opportunities. And so, for example, in the provider segment, in the last few years, we've been able to cross-sell those capabilities into our health plan relationships that we created in our enterprise segment, and now that represents, you know, nearly half of our revenue. And then lastly, our third channel is what we call life sciences. And so the goal there was, is, how could we build, at Sharecare, a B2B business, so an enterprise B2B business, but felt B2C to the user? Feeling that that was what was needed to get high engagement from people. They sometimes are skeptical about the tools, or it's fragmented of what they may be getting from their employer or their health plan, but if we could make that person feel the same way about Sharecare, that they feel about Netflix or other consumer applications, then we could build something that would have sustained engagement. And so we built a pretty sizable business there. We work with 80 different pharmaceutical companies. We've built a zero party database of over 100 million people. So I think we have emails with consent from people for 77 million people. We have become experts over the years, I think, kind of from my early WebMD days to, you know, what the team does now, of being able to do precision targeting to get people that have certain medical conditions, educated about the latest therapies and options for them to manage that risk. And so those are kind of the three business units that we have that fit within this one platform under a theme of empowering people to live their best lives. Got it. That, that's a great overview and, and kind of good segue. The company and the board initiated a strategic review last year, and the decision was to operate as is. And so we'd love to get from, from the outside looking in, and what maybe investors don't appreciate in terms of why these businesses make sense to be operated together, if you can just- Yeah expand on that. Yeah, so very similar to kinda what the mission was of, you know, how do you empower people, and how do you have this one big platform that's distributed, you know, in enterprise to health plans, employers, and government, and then to health systems through providers, and then through pharma to life sciences. They work very, you know, very well together. So one is we collect an enormous amount of data, you know, through those three channels. So we're getting self-reported data. So I think we've had almost 50 million people take the RealAge Test. And so we're learning in a self-reported way about their lifestyle and medical history. We were very early on in figuring out how to extract data from the phone. We acquired a company in Berlin, some data scientists, probably 10 years ago, to give us that expertise to extract, you know, data from phones with consent. And then the third area of, when you talk about, you know, the synergy, is, we collect claims data on 13 million people, and so we're getting the medical claims, the pharmacy claims, the lab claims. I was with an investor yesterday, and we were giving a demo. And the person I was with was showing their account, their app, and had ordered a prescription and hadn't even picked it up yet that day, and the data was already in the app. And so the data was already there. In addition to that claims data, we were also very early on in collecting data about the environment. Yesterday, if you're curious, we released our Community Wellbeing Index Report that was picked up by Fortune and a bunch of different publications, where we rank wellbeing, based on every ZIP code in America. So we collect data, probably spent $100 million on this over the last decade, understanding physical health, mental health, financial health, et cetera, at every ZIP code. And so we really believe, similar to genetics and lifestyle, environment really matters, and so we're collecting that data. And lastly, the medical record data that we get through the provider side. So there's a lot of synergy in the data. On the enterprise side, we think being able to put medical records in the enterprise experience, say, for, like, a Delta Air Lines employee, if that the+ 80,000 that are on Sharecare, if they can now hit a button and access their medical records, that really differentiates us from everybody else in the marketplace. I mentioned the cross-sell opportunity, right? I mean, having 8,000 clients, if I was selling bottles of water, that's a lot of clients. And so often in every city, similar here to New York, think about it, you've got Mount Sinai and NewYork Presbyterian and others, they're big employers. And so what we're doing really well now is we've incented our sales forces to kind of cross-sell. And so those hospital employees that we're doing business with for other reasons are now becoming enterprise clients. And then lastly, on the life science side, why it works so well together, it really is our street credibility. So when I say, like, B to B to C, I mean, we have millions of people that follow us on social media. If you took every major health plan and every competitor we have in digital health, and you added up all their social followers, it might not equal all that we have. You know, when I talk about things like having 77 million emails, those are people that have opted in, come to Sharecare, answered some questions, opted in, given us their email address, and contact me, because we think the value proposition is so strong. We've won hundreds of awards for producing high quality medical content, and we want you to be a source to us in educating us about our conditions. And when we're able to take that content and deploy it in enterprise, it's what really creates that engaging experience that we think is second to none. And so put all that stuff together, and we see sustained growth, and we see a way to differentiate ourselves from everybody else. Got it. I do want to segue just to the macros and one of the themes across the conference. I mean, as you know, there's no shortage of crosscurrents out there that companies are dealing with. You reported recently a clean report, kind of slight B, took the low end of your revenue guidance up. That's better than a lot of other companies in the space. So just wanted to dig into what do you see in your business in terms of maybe some of the resiliency. Yeah. that you would call out? Well, I think we're growing into being a public company, you know, number one, so, you know, how to forecast and the things, the fundamentals that you need to get right. And so I contribute some of that to all the great work our finance team and others, you know, are doing. And in the spirit of that, you know, I think enterprise is rolling out as expected, right? There's just, they're not, there haven't been surprises. It's like what we thought was happening, would happen, is happening. You know, that we're implementing to our signed contracts, we're onboarding people, we're administering rewards, we're enrolling people into programs, we're getting them talking to advocates, we're starting to cross-sell our home care services into that. Our work that we've done in advanced analytics has given us not only precision targeting, but better clinical outcomes, which has given us lower cost. So I think planning and execution has given us what we expected in enterprise. On the provider side, it's our best year ever, you know, and I, you know, I dare say no pun intended, because both quarters were records, and we obviously extract medical records. And I think what's happening there is scale matters. We're perceived in that space as the high-quality provider. We earn new clients every month. We rarely lose clients, and, and we've been doing this for, you know, a long time now, you know, eight years or so. And so when you start to get up to 8,000 clients and, you know, and then you start to see some consolidation within these health systems, we benefit from that because often we have the incumbent, and then when they make an acquisition, we pick up that additional business. On the life science side, there's been a lot written about that. I know we've talked about it in the past. I would say in life sciences, we are holding serve, and that is better than most. I think it's an incredible asset, and as pharma comes back with the momentum of GLPs and some other things, new product launches, you know, we expect to see what we've seen in the past with life sciences, which is more growth. Got it. All right, thanks for that. Just shifting gears to AI. It's all the rage now in the investment community, but I feel like in some respects, you were ahead of the curve in terms of, if I reference the doc.ai acquisition a couple years ago. So what did you see then in terms of the importance of having technology and capabilities, and importantly, how are you leveraging that in terms of impacting the business? Yeah. Well, that's a great question, and I'd like to answer that in two ways. You know, so one is, I don't think Sharecare gets credit for how often we're ahead of the curve, you know? So we bought a virtual reality company, I don't know, five, six years ago, before Facebook was Meta. We bought a company called MindSciences before GLPs were teaching the world that you need to curb cravings, right? We bought a tech enabled home care business before Cigna acquired. And we were in AI before AI was cool. You know, to your point, you know, we bought a company called doc.ai, and we do $90 millions in revenue today in AI. I'm sure if I was, you know, starting a company right now, and I said, "Here's what we do. Here's our AI capabilities, and here's our customers, and here's the revenue we're driving," you know, it would be four times our market cap right now. Just that one little piece of spoke in the Sharecare wheel. And then the way that we use AI is, and maybe the simplest way I can explain it is, I like to think about it as the best next action. And so how do you take AI and think of it as the best next action? And all of us, you know, have used ChatGPT, and so like when I describe ChatGPT, I said, "It's, it's like starting at midfield." And honestly, what I believe is, like, starting in the red zone. But, you know, say it's like starting at midfield for, like, the best next action. It really gets the ball rolling. The way that we use it at Sharecare is, one, is to really try to drive efficiency. So if I've got a coach or a disease management specialist or a patient-centered medical home nurse deployed, or a caregiver, how do we use the technology to give them insights at the point of care, often, to make the best next action? So what should the advocate say to the person on the other end that has a question about their benefits? Or if I have a care provider in the home, how does that potentially tweak the care plan based on the data that we're collecting real time in the home, down to the user experience for the person of, like, how do I just understand my benefits, you know? And what's really great about, like, Sharecare+ is it's the medical benefits, it's the vision benefits, it's the dental benefits, and it's cross carrier. And it's not only for you, it's for you and your whole family. And so that's next action. Like, that's really what we all want. You know, it's like, you know, what, what should I do to improve my well-being? Do I need to see a specialist? Do I need to go to a generic drug from a branded drug? Do I need to close this particular gap in care? Do I need to earn this incentive? I mean, there's so many things that are happening for yourself and for your family that we need to make it easier for people to understand that best next action, and that's how we're using AI across our entire, our entire portfolio. And then we're taking those key learnings, and we're productizing it and selling it to others. Got it. Well, it's a great segue into Sharecare+, and I did want to dig into that in terms of the advocacy offering. You know, how is it going versus your initial expectations? I also want to touch on, you know, having an anchor customer like a Carelon, how important that is to, to really drive and ultimately scale this business. Yeah. So, I'd like to start by saying that it's a really great product. We had an opportunity yesterday with an investor to kind of show them the product. And so what the product does is two things, is one is it's digital first, so it's completely self-service. And so the goal was, when we were creating this with Carelon, was I should be able to get every answer on my own in the platform, just like I do self-service banking. And that would work for me. I mean, I rarely interact with my advocate because I understand how to the information I'm looking for and how to access it. But if somebody needs to have their hand held, it should be a blue button, in our example, away 24/7. You just click this little blue button, and then on the other end, shows up your advocate. The way that we've designed this for our advocates is they almost have, like, this mission control dashboard, and they have access to all your data, all your programs you're eligible for, all the gaps in care that need to be closed. So we've created this really great product, and so that's number one. What's really good also about that product is it's easy to implement if you're already on Sharecare. The way I describe it to clients, I'm like: It's like turning on Wi-Fi. If you've already deployed Sharecare as our digital front door, you literally can just click a switch, and in the back end, we can enable advocacy. So there's no new implementation, there's no new onboarding. Third thing is where we've deployed Sharecare+, it's working. I mean, we are closing gaps in care. We are improving member satisfaction. We are helping people earn their incentives and do all the other things that the HR teams want us to get done with their employees. And then fourth is, to answer your question on Carelon, absolutely, that's beneficial to us for many reasons. One is it gave us some scale right out of the gates. So, you know, to start with over half a million members, just with one client, that was a big deal. Second is, it gives us a license to hunt together, and I think we complement each other well in a sales room. You know, when you look at kind of our advanced analytics and our, our strong engagement, some of the things I've been talking about, with the relationships that they have and the other bundling opportunities they can create with us, it gives us some really interesting opportunities to win. And then lastly, if you said, "Well, what's the gap?" Or the key to your question of like, you know, to really scale this thing out, we have to continue to drive awareness with the brokers. You know, they don't all know that Sharecare offers advocacy, as an example. And so we're working really hard with all the major firms and all the leading producers across the country. To understand what I just talked about, which is, this is an unbelievable product that's getting results, and we would love the opportunity to earn a chance to work with you for your clients. Got it. So you mentioned the 500,000 with Carelon. You know, overall, roughly, how, how big is this business, and how should we think about what's a reasonable growth cadence the next number of years as you, as you grow the platform? Yeah, so I would think of it as about a $50 million business, and I think of that in year one, you know? So basically, you know, that's pretty impressive. Like, we weren't in this business a year ago, and we're already at $50 million in revenue. And I you know, our goal is, like, this is a double-digit growth opportunity for us. And, and so how do we do double-digit growth? Well, we need to land and expand. We have tons of clients on our wellness product, our digital front door. We need to convince them to turn the WI-FI on, you know, which is our Sharecare+. That's a great way to grow. Second is, like, we have to continue to add value to Carelon and, and help them close deals that we're a part of. And then the third is, our sales team needs to win over the brokers. And if we do that, as we continue to get better in RFPs and how to talk about our value propositions and price, I think we're gonna win some. We're gonna continue to win business. Great. I do wanna talk about the margin profile and some of the inflection that you've seen, but maybe just before we get there, closing out Enterprise and Sharecare+, can you just talk about the competitive landscape? You know, there's a number of offerings in the market. I think as you stressed, you're maybe a little bit more technology-focused, user-friendly, but what are some of the things that you think ultimately are gonna resonate? Yeah with customers out there? It's no question, if we can do a demo, it's the most powerful sales tool for Sharecare. Like, when you see how much interoperability that we have, I mean, just like the thing I was talking about, that you know, the person hasn't even picked up the prescription, it's already in the platform. It's that real time. So I think this, you know, this ability to create something that feels like it's for a consumer, not for a health plan member, is unique to Sharecare. I think our understanding of social determinants of health, and even, like, you guys maybe have seen the Blue Zones documentary on Netflix. It's like the one of the top-performing documentaries right now on Netflix. Or not even a documentary, just overall TV show. So, you know, we operate the Blue Zones, Sharecare does. And so we're in 12 cities and over 60 communities around the country, where we are the infrastructure of the Blue Zones. And so being able to understand this philosophy of how do you make the healthy choice the easy choice, and, like, helping our employers understand that, literally, how you even merchandise your cafeteria on site, and obviously, we do a lot of that in the app as well, but that very much differentiates us. Our Community Wellbeing Index, I encourage anybody to go download the report and read it. It is, it is super impressive. You know, so when you are able to get to, like, say, a governor and be able to say, "Hey, in the state of New Jersey, you're number three in the whole country, and here are the reasons why, as you rank this for wellbeing." Or: "Georgia, you're number 40, and we can reverse engineer this data and show you with the Sharecare platform how we can improve this, and that you should bring this to all your state employees." And by the way, state employees are the biggest employer often in any state, another great way for us to differentiate the offering. And then the rest is all about just the blocking and tackling. You know, what are the table stakes that we need to have across the board, which I think we have plenty of, but the way that those things all work together in a way that a person understands the intention of Sharecare and what that best next action is, that's our competitive advantage. Got it. We will shift to the margin profile, and that's another key debate across this space, right? Kind of balance between revenue growth and profitability. You're in the process of taking $30 million in costs out. Can you just talk about that strategy, kind of what's behind it, and, and importantly, what it's gonna translate into the model? Sure. Well, I think one is, you know, we're a technology company first, and so... And we've grown by acquisition. So we've made acquisitions along the way that, you know, that were, and sometimes had a lot of people, and so we had to tech enable those businesses. And, and with tech enabling those businesses, we've been able to lower our footprint. So that's one thing. The second is, we made a decision two years ago that we were gonna bring expertise into Sharecare that really understood automation, leveraging, you know, things like AI, and understood global outsourcing. So we've taken over 500 headcount out of not client-facing people, but back-office, important people for us, and we've transitioned that to global outsourcing. And it's been incredible because, you know, it's had incredible margin impact. You know, we'll do more. We're on the run rates now, where we're doing more EBITDA in a month than we were doing in an entire quarter, you know, in the past. And we have not suffered any quality issues. You know, our SLAs have gotten better, our customer satisfaction has gotten better, and we'll be on that run rate of $30 million this year of cost takeout and going into next year, and we think there's even more headroom there. There's even more to automate that can even do better than even the $30 million. But it was a combination of a few things. Like, one is we're a tech company, and we need to tech enable this. Then, 2 is, you know, if we have the expertise in place, then, you know, $30 million could just be the start. And then we're proving that we're doing it. You know, so you're, you know, we've already gotten most of it out for the year, and you'll see that for the full year, you know, hitting that goal of the $30 million. Got it. So along with that, I think into the back half, there's an expectation of just an inflection in kind of EBITDA. You know, what does this mean? It sounds like you can continue some of this into next year, continue to get more efficient, but, you know, on a longer-term basis, what's a reasonable target for margins- Yeah ... for Sharecare? Yeah. So you'll see a tripling of margin from second quarter this year to Q3. So you're gonna see a really nice jump here from Q2 to Q3. We're gonna do, you know, 3x. And, you know, we think, you know, over the next three years, we're, you know, 20%, you know, margins are is what our goals are. But you'll see this jumping up to 8-9% from Q2 to Q3. Got it. 2-8, 8-9%. Yeah. Okay. Excellent. Maybe just circling back for a minute, because we spend a lot of time in the enterprise, just the provider piece- Yeah. -which I feel like goes under the radar a little bit. Like you said, record quarter. Can you just talk about the underlying health of that business, and also what's a reasonable long-term growth profile in provider? Yeah. Well, first, we have amazing leadership in our provider team. They are humming. They had a record Q1, they had a record Q2. We'll hit our KPI, which was double-digit growth of 6.5 million this year. We have 8,000 clients that we have contracts with, that we, on their behalf, extract 6.5 million medical records, that we're starting to leverage that data infrastructure into risk adjustment and revenue cycle management, so we have new products coming. And so we expect that unit to continue to do double-digit growth. But what we've done in the profitability of that division in the last year has been pretty remarkable. You know, $10+ million alone this year in EBITDA growth within provider. And again, it's you know, outside of just the core business, which is you know, continuing to grow that like we have every year for the last you know, six, seven, eight years, it's the cross-selling. And the cross-selling really does go both ways. There is tons of growth and based on what the government needs with their risk segmentation and stratification to use our services, and that's why we're seeing such powerful growth within the health plans. And then another one that just gets me so excited, again, is like you know, we're handling something that's mission-critical for these hospitals. Like, if you call your hospital, and you need your medical record, and it's a real pain point. When they do it themselves, it sometimes like takes up to 21 days. We're fulfilling these requests, like, in 48 hours with, like, 99.9% accuracy. So we're providing this very important service that's extremely important to the patient satisfaction. And as we build that trust with them as a client, we've been doing this for years with many, now we're able to come in and say: "Hey, that's, this isn't the only thing that Sharecare does. Like, you know, for your employees, which I know you wanna take care of those who take care of us, you know, your nurses and your doctors and others, that's our, that's our, that's another piece of our core business, and we can help you there." And so we're, we're starting to see that. And then lastly, where does it all go? Is like, it's moving to value-based care. You know, as it moves to Value-Based Care, you know, our, our ability to collect data to improve clinical quality and outcomes, and our ability to, you know, have a platform to service overall well-being, I think goes hand in glove to then taking our platform for VBC with health systems outside their, their four walls. Got it. All right, so as we wrap here, coming up on time, I do want to touch briefly on life sciences. You mentioned kind of holding your ground in a tough market, right? We've seen a lot of headwinds to pharma spend from various different companies. You also mentioned GLP-1s- Yeah -a lot of excitement buzz. I would think that's one category, but that, and anything else, like, when you look out in the horizon, what are some either new categories or launches that- Yeah You're excited about from a growth perspective? Yeah. I'd tell you, the GLP-1 thing is amazing. We've learned so much. Everything from, is this a vanity drug, or is this a miracle drug? And how do you make it not a forever drug? And so we're doing all this work to understand, you know, what are the best practices for who is eligible? What are the right drug choices for that individual? How do you source those drugs? And whether it's from the manufacturers, to the PBMs, to others. How do you use our advocacy infrastructure to advocate on behalf of the person who needs the drug? And then, how do you bring them into a behavior change program? And we have a program called Eat Right Now, amazing clinical studies. It curbs cravings by 40%, that gives the behavior change program to go with the drug, so it doesn't potentially become a forever drug. And we work with pharma. I mean, we have 80 clients. We do $10s of millions. That's really important because when you start to deploy education on: how does the mind deal with cravings, and how does the gut, you know, suppress appetite? And there needs to be education that goes with that. And the big education is gonna come from is, it's not just the weight loss, it's the cardiovascular risk reduction. And so we're gonna be able to educate people on behalf of pharma, on how all that works. Everything I just said, best practices on criteria, what's the right drug, what's the behavior change program, who advocates on behalf of the individual, and then ultimately, how is this working with the, how's the biology working here? And we see that as an amazing growth opportunity for life sciences, and we see that as an amazing growth opportunity for our enterprise clients, because the demand is gonna be enormous. Got it. Okay. Great. I think we'll end on that note. So, Jeff, thanks so much for your time today and the thorough overview of the business. Yeah. Thank you, Graig. Appreciate it.