Alan - 2024 Q2 Letter to Shareholders

Dear community

Q2 has been our best quarter ever. The unique model and positioning we decided years ago (one stop health partner) is paying off. The incredible acceleration we’re seeing in the business is a clear indicator that we are on the right path. 

We have a strong conviction that the decisions we made years ago are now paying off:

"Overnight successes take years to build". We’ve been executing this vision and model relentlessly for the past 8 years and we don’t even consider it a milestone as the entire journey is still ahead of us  

We have managed to combine significant growth (above plans) with a tight management of our operational expenditures. We have also improved our profitability vs. last year and we would like to see an even steeper improvement in our gross margin; we have put actions in place to catch up by January 2025 (as we did in the past).

In France, we had a great performance. The most notable news is that we won the RFP for the Ministère de la Transition écologique et de la Cohésion des territoires, which should  bring in up to 140,000 new members. This initiative not only significantly impacts our ARR (up to. €90m), but also is proof of our capacity to manage complex large-scale projects, and expands our footprint in the public sector, which is a segment with up to 10m members entering RFPs in the next few years.

In Belgium, we are particularly proud of our margin expansion while building foundations for a stellar H2, with big announcements to come!

In Spain, we onboarded our first members on Healthy Benefits, our new offer! With Healthy Benefits, we aim to offer a completely integrated experience and promote a healthier lifestyle. This includes a flexible compensation platform for admin with key features related to health, food, childcare, and transportation benefits, along with tax advantages for employees.

We are making massive investments in globalizing our platform to differentiate our offer even more quickly in each of the countries. This work will also reduce the cost of launching in the next country and  increase Alan's scalability in the long run.

Our Net Promoter Score (NPS) improved to 70 thanks to our continuous improvements across the board. 

There are a few innovations that are in soft-beta and that we will announce in the fall. You’ll see there is A LOT of things coming!

We deployed our offer builder with dynamic pricing across all SMB segments - helping us be more attractive and further control our margin. 

In terms of care automation, we have 3 AI agents that already automate between 27% and 36% of the contacts assigned to them. We have gained conviction on how to automate our 189 Care workflows with dedicated agents.

The effectiveness of our health programs keeps increasing with 90% of users reporting lower back pain and 93% reporting lowered stress levels, based on in-app surveys.

One of the features we are launching in beta drastically increases daily usage of the app for members health 🙂! We will share more about it soon.

We are also making strides in integrating artificial intelligence into our health services. We will communicate more about this soon! 

We also acquired Wave.ai’s assets, an AI-based personal coaching app. Their datasets and knowledge will be useful to keep developing our AI-first offering. 

Finally, we keep increasing the impact of AI for every function within the company: Sales, Marketing, Customer Support, Operations, Design, Engineering and are seeing true productivity impact. More to come in future blog posts. 

We are extremely excited about what is ahead. We have just reviewed our (already ambitious) business plan for even greater growth in 2024-2025. 

For the next quarter, we are focusing on:

Team morale is very high across the company, buoyed by recent wins and the recognition of our hard work paying off. As I mentioned in Q1, we anticipate that 2024 will be the best year in Alan's history—until the next one.

Thank you for your continued support and belief in our vision. We look forward to sharing more successes and groundbreaking achievements in the coming months.

Jean-Charles