SHCR - Why Shares of Sharecare Slumped on Wednesday
2023-03-29 13:37:09 ET
Shares of digital healthcare company Sharecare (NASDAQ: SHCR) were down 28% as of early Wednesday afternoon after the company announced fourth-quarter and year-end earnings. The stock is down more than 5% so far in 2023 and more than 54% over the past 12 months.
The company's earnings were underwhelming. While the company saw a quarterly rise of 4% in revenue to $123.05 million, an improvement upon the analysts' consensus of $120.25 million, the company had an earnings-per-share (EPS) loss in the quarter of $0.07, compared to the analysts' consensus of an EPS loss of $0.05. Sharecare reported yearly revenue of $442.4 million, up 7%, but a net loss of $118.7 million, compared to a loss of $85 million in 2021. The company's 2022 EPS loss was $0.34, compared to an EPS loss of $0.30 in 2021.
What was more concerning was the company's guidance. Sharecare said it expected a sequential drop in the first quarter, with revenue landing between $111 million and $113 million with adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ) between $1 million and $2 million. For the year, the company said it expected revenue to be between $450 million and $460 million and adjusted EBITDA between $25 million and $30 million.
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Why Shares of Sharecare Slumped on Wednesday