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Alan - 2025 Q1 Letter to Shareholders

Alan - 2025 Q1 Letter to Shareholders
Author
Jean-Charles Samuelian
Jean-Charles SamuelianCEO
Updated on
28 April 2025
Author
Jean-Charles Samuelian
Jean-Charles SamuelianCEO
Updated on
28 April 2025
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Dear Alan community,

I am pleased to share with you the results of our first quarter of 2025, which has exceeded our expectations and laid very strong foundations for what promises to be a transformative year for Alan.

A Strong Foundation for 2025

Our core business continues to demonstrate remarkable robustness, with outstanding performance across all key metrics:

  • Our signed ARR has reached €523 million, representing 44% growth year-over-year
  • We now serve more than 710k members across four countries
  • Most impressively, our gross profit has grown by 75% and our net income improved by 21% compared to the same period last year

Those numbers represent the real impact we're making in transforming healthcare for hundreds of thousands of people while building a sustainable and profitable business.

Aligning health incentives with financial performance

The success of Alan is closely tied to our ability to align health and prevention incentives for our members and companies with Alan's financial incentives. This virtuous cycle is at the heart of our business model and our mission.

We're focused on three main levers:

  • Growing our member base through product differentiation, engagement, and reduced churn
  • Increasing revenue per member through pricing strategies, Prévoyance cross-sell, and new products and services
  • Expanding our gross margin through medical cost savings and smart coverage design

Expanding our member base: the launch of Alan Play

This quarter marked the final preparations for the global launch of Alan Play on May 12th—a major innovation that will transform health prevention into an engaging, social experience. Alan Play is reimagining how people engage with their health. You can watch the keynote here !

Based on proven principles of behavioral psychology and game design mechanics, Alan Play includes:

  • Achievement streaks: Members build uninterrupted sequences of positive actions, creating a powerful engagement effect. Data shows that users are 63% less likely to abandon a habit after maintaining a streak for 7 days.
  • Level progression: An intelligent system that adapts challenges as users evolve, maintaining the balance between accessibility and challenge.
  • Social competitions: Company leagues, challenges between colleagues, and rankings that stimulate positive emulation. Pilot data shows that members in friendly competition take an average of 34% more steps.
  • Tangible rewards: Alan Play's "berries," which users earn by adopting beneficial health habits, have real value. They can be used for discounts in the Alan Shop or to make donations to carefully selected associations.

The first results from our beta tests are exceptional: up to 70% of employees engage in the program, with a third remaining active each week after 6 months. 

This represents a profound change in habits, beneficial for the health of Alan members. Active users increase their activity by an average of 20,000 steps per month. Additionally, 80% of HR managers report improved team cohesion.

Based on these tests, we expect Alan Play to increase our daily active users to 18%—a dramatic improvement in engagement that will help us build deeper relationships with our members.

Alongside Alan Play, we've also launched Dolce Vita, our offering designed specifically for retirees. This demographic faces unique challenges: diminishing income coupled with increasing healthcare needs, and 60% of common health problems among seniors could be prevented through personalized prevention. 

Dolce Vita extends our vision to a population that deserves more than ever our attention and innovation, offering them the modern, simple, and transparent experience that our members praise. 

Increasing revenue per member: Prévoyance and new products

A significant milestone this quarter was the full internalization of our Prévoyance risk. Starting March 2025, all our new Prévoyance customers are equipped with Alan offers, providing us much greater flexibility and velocity to iterate on our standard offers for small and medium companies, and more control and pace when negotiating tailored contracts for enterprises.

Our Shop continues to see solid growth, doubling its orders each month since its launch. Beyond direct revenue, our Optics products also reduce our cost of claims.

Improving our margin: fighting medical inflation

We are on track on our gross margin. To address the medical inflation we’re seeing across verticals, we are working on three different levers:

  • Care verticalization, offering healthcare services that improve member experiences while reducing costs
  • Smart coverage design, building optimized coverage options that help customers control their healthcare budget
  • Operational improvements, preventing unnecessary reimbursements through fraud prevention and policy enforcement.

International expansion: building a global health platform

Our international growth story continues to deliver strongly:

  • In Belgium, we are very happy with the launch of our partnership with Belfius.
  • In Spain, we've achieved 44% growth year-over-year, and have performed our best quarter ever.
  • In Canada, we are now live in Ontario with 6 customers and 60 members. Nearly all of our current customers have referred another customer to our service. We've also obtained the regulatory license to operate in Alberta, and submitted the application for British Columbia.

Our investments in globalization are creating a proven international go-to-market playbook, enabling us to expand into new regions with lower and lower initial investment. We can be the #1 player in a world where health systems differ but needs are the same.

Operational excellence and artificial intelligence

Our operational efficiency continues to improve. We reimbursed 98% of our claims within one business day and 46% of our claims within just 5 minutes—industry-leading service levels that delight our members.

We're making significant strides in leveraging artificial intelligence to enhance our operations:

  • Our artificial intelligence now handles 10.7% of Care contacts (up from 8.9% in December 2024) and 21% of mobile contacts are automated
  • We've built the AI infrastructure that will power our next phase of growth through faster iteration cycles and more agentic AI
  • We're building strong foundations to go even further on document parsing (currently at 67% in France and 50% in Belgium, respectively from 50% and 0% in January 2024), reducing costs while maintaining high quality and enabling faster claims processing for members.

Vision for the future

Looking ahead, we see Alan becoming the leading integrated health partner where prevention generates profitability, combined with extraordinary customer satisfaction. 

It is possible to create a positive impact on the physical, mental, and social health of our members while building a virtuous economic model.

Conclusion

Q1 2025 has shown that we're on the right track with our strategy. We're growing efficiently, improving our margins, and continuing to build a product that delivers exceptional value to our members and customers.

With Alan Play and Dolce Vita, we're demonstrating that health is not just the absence of illness but a state of complete well-being: physical, mental, and social. We're building a world where health is no longer a constraint but a source of daily joy, accessible to all.

I want to thank you all for your continued support and belief in our mission. Together, we're transforming healthcare and building something truly special that will improve millions of lives while creating substantial value.

Jean-Charles

Published on 28/04/2025

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