BTIG downgraded Sharecare to Neutral from Buy without a price target following the company’s Q4 report. The adjusted EBITDA miss was due mainly to a contract dispute with a large client that had a $14M and $6.2M unfavorable impact on revenue and adjusted EBITDA, respectively, in the quarter, the analyst tells investors in a research note. The firm says that while Sharecare may resolve the disagreement, the probability is high that this money will not be collected, and as a result, its enterprise revenue growth in 2024 will likely be negative. This implies another year of no revenue growth for the entire organization in 2024, says BTIG. The firm cites Sharecare’s ongoing challenges, lack of guidance for 2024, and repeated reductions to guidance over the past three years for the downgrade.
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