ATLANTA, GA – Sharecare, Inc. (NASDAQ:SHCR), a health services provider, announced today the approval of a reverse stock split during its annual meeting of stockholders held on June 13, 2024. The company's stockholders voted on several key proposals, including the election of Class III directors and the ratification of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2024.
The stockholders elected three Class III director nominees to serve a three-year term until the annual meeting in 2027. Jeff Arnold received 122,816,907 votes for and 14,906,891 votes withheld, John Chadwick had 100,923,832 votes for and 36,799,966 votes withheld, and Rajeev Ronanki garnered 107,330,282 votes for and 30,393,516 votes withheld. Each nominee faced broker non-votes totaling 127,152,882.
The proposal to authorize the Board to effect a reverse stock split and a reduction in the authorized shares of the company's common stock was approved by a majority of the outstanding shares. The affirmative votes tallied at 230,051,120, with 34,542,747 votes against and 282,813 abstentions.
In addition, Sharecare's stockholders ratified the appointment of Ernst & Young LLP as the company's independent registered public accounting firm for the upcoming fiscal year. The advisory vote showed strong support with 258,121,122 votes for, 5,226,213 against, and 1,529,345 abstentions.
The annual meeting results reflect the shareholders' trust in the current leadership and direction of the company. Sharecare, headquartered in Atlanta, Georgia, and incorporated in Delaware, is known for providing various health services under the industrial classification of Services-Health Services.
The information provided in this article is based on a press release statement from Sharecare, Inc. filed with the Securities and Exchange Commission.
In other recent news, Sharecare reported Q1 revenues of approximately $91 million and an adjusted EBITDA of negative $2.7 million during their First Quarter 2024 Earnings Call. These results were significantly affected by a legal dispute and the absence of 2024 guidance due to ongoing uncertainties.
Despite these challenges, Sharecare closed numerous deals across its channels and expects growth and improved cash burn throughout the year. The company's life sciences channel secured 35 new pharma brand deals, generating over $80 million annually, and the provider channel doubled its average deal size from the previous year, closing 75 deals in Q1. The enterprise channel secured multiyear renewals and anticipates over $40 million in net new revenue.
In addition, Sharecare announced the launch of a new Medicaid navigation platform, WeCare, set to debut on July 1, 2024. These are the recent developments for Sharecare, with no guidance provided for 2024 due to uncertainties from the legal dispute and strategic review.
InvestingPro Insights
As Sharecare, Inc. (NASDAQ:SHCR) navigates through its corporate strategies, including the recent reverse stock split, it's essential for investors to consider the company’s financial health and market performance.
According to InvestingPro data, Sharecare holds a market capitalization of $279.78 million, with a negative P/E ratio of -2.11, reflecting challenges in profitability. The company's revenue for the last twelve months as of Q1 2024 stands at $419.82 million, although it has experienced a decline of 8.34% during the same period.
InvestingPro Tips suggest that management's aggressive share buyback initiative may indicate confidence in the company’s future, while the fact that Sharecare holds more cash than debt on its balance sheet could provide a buffer against financial instability. Still, analysts are cautious, anticipating a sales decline in the current year and not expecting the company to turn profitable this year. It is noteworthy that Sharecare's liquid assets surpass its short-term obligations, which may offer some resilience amidst financial pressures.
For those interested in a deeper analysis, InvestingPro offers additional tips on Sharecare, Inc., which can be accessed at https://www.investing.com/pro/SHCR. Investors may find these insights particularly valuable when assessing the company's potential in light of the reverse stock split and other recent developments. For a limited time, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a total of 7 InvestingPro Tips for Sharecare, Inc.
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