What happened
Shares of Sharecare (SHCR 9.00%) were up more than 26% as of 2 p.m. ET on Wednesday after the digital healthcare company said it had received a proposal from a private equity firm to buy the company's available shares. The stock is still down more than 27% this year.
So what
Sharecare uses a data-driven virtual health platform to help people manage their health. On Tuesday, Sharecare reported a Securities and Exchange Commission (SEC) filing from Oct. 3, in which Sharecare director John Chadwick is submitting, in behalf of private equity firm Claritas Capital, a nonbinding proposal to acquire all Sharecare shares not already owned for $1.35 to $1.80 per share in cash.
There are other potential institutional buyers that could pounce as well. The company, which went public as part of a special purpose acquisition company (SPAC) merger in 2021, has seen investment from Anthem, now called Elevance. Sharecare also has a relationship with Amazon, as it has integrated its library of more than 80,000 questions and answers into the Alexa voice service from Amazon.
Now what
The company isn't profitable but continues to grow revenue. In the second quarter, it reported revenue of $110.4 million, up 6.3% year over year. But it also reported a net loss of $35.1 million, or an earnings-per-share (EPS) loss of $0.10, compared to a net loss of $29 million or an EPS loss of $0.08, in the same period a year ago. The company reiterated its yearly guidance of revenue between $452.5 million and $460 million, compared to $442.42 million last year. The company also said it expects yearly adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to be between $25 million and $30 million, compared to $15.8 million in adjusted EBITDA in 2022.
