Alan - Q1 2020 Letter to Shareholders
In January 2020, we published our annual letter to our investors on our blog. As we shared quarterly updates to our investors, we want to keep sharing them with our community.
Please find below the email we sent to our investors following the first quarter of 2020. We slightly edited it to remove sensitive information.
Dear Alan’s friends and investors,
First, I hope you are all safe as well as your family and friends.
We are in the middle of a global crisis in the form of the Covid19 Pandemic. Since the creation of Alan in 2016, the Covid-19 crisis has been the biggest crisis we faced.
We have learnt a few things about us during this crisis:
We are very resilient to remote work and are performing close to full capacity. The switch to full-remote was easy, thanks to our culture and methods. We decided to share with our community some daily tips on WFH we use everyday.
Our business model is resilient with recurring revenue. We have built different scenarios to assess the impact of the crisis.
We had already planned for a tough market in 2020 in our budget (for other reasons), and we are confident with our plan.
We manage to be flexible and re-assess our priorities quickly, and have been able to ship new products for our members and the community.
Health is going to be more top priority for individuals, companies and the State over the coming years, and we are here to help.
We think the trend towards digitalisation and proactive health will accelerate.
Still, the human and economic impact is unknown, it is sadly affecting every company and it will likely slow our growth in the short-term.
💪Where you can help us
Medical Board or Medical Hires: We want to strengthen our medical knowledge and team, and would like to build a board and/or work directly with doctors. Who are the best people you can introduce us to?
Hiring: If you know the best people in the world we should contact in marketing, growth, engineering, product, operations, design, security, data science, risk, legal… Please make an introduction. (And of course, if you read this and believe you are the best in your field, please reach out.)
Large Companies: Let us know about CEOs or HRs of companies above 200 employees (and up to tens of thousands), so we can pitch them Alan (in France).
📈Our performance in Q1
Our signed Annual Recurring Revenue grew 15.5% from €50.5m to €58.3m (on April 1st).
We ended the quarter with approximately 75.7k total members (slightly above our target).
Q1 performance is driven by self-serve acquisition and evolution of current customer base, as no sales acquisition or churn significantly happened this quarter. Let’s remember that most of our growth comes later in the year.
With Covid-19, we decided to postpone our Sales campaign to focus on helping admins. We are a few weeks late to connect with new leads.
Quality of member experience
Net Promoter Score
NPS is currently very good to excellent for all user groups with a +36 increase on accountants.
Time to reimburse
The target is 99 % of all sources treated in less than 4 days. For March, we reached 78 %, versus 54 % in January, and it is improving significantly.
Significant drop in time to first answer for sync conversations (via chat) since Oct 2019: it has been below 5 minutes since Dec and below 3 min since mid Feb.
Shipped during Q1
We invested heavily in Q1 in:
Simplifying the experience for our members and the administrators of Alan company plans.
Acted rapidly, in the context of the COVID-19 pandemic, to provide support to members and non-members alike.
100% of our members are now on our fully integrated stack for claim management, allowing better service, better product, and better scalability. It was more than one year of work and is differentiating our insurance experience tremendously. We are already reimbursing much faster than the market.
Members are now more autonomous on Alan
More information on pending reimbursements, more transparent claims and quote handling process, and a richer help centre.
Launched multiple core workflow enhancements: support for leave of absence claims, improved exemption workflow, employee list exports, suggested employee removal via an integration with the national social employee record scheme “DSN”, clearer billing for accounting departments.
New dashboard for admins: ability for an Admin to switch between Pro & personal spaces, entity switch from one company to another using a new dropdown, new “estimated costs” section and some others.
Tailored product pricer: We can now price any insurance product in 1 min.
Telemedicine: We have seen a strong acceleration of teleconsultations adoption since March.
Proactive care: We crossed the 5K members giving consent milestone, so we can send them proactive care notifications.
We are overall happy with the pace of growth on International and the progress made since January - a lot has been achieved:
📯Brand & Press
We postponed our subway campaign (initially April) to end-of-May/June due to Covid19.
We had some Press during the cycle:
Articles on Challenges and Maddyness about Coup de Pouce.
TV intervention about our Covid-19 related initiatives.
An open-ed in Les Echos on the extension of paternity leave and parity we co-signed.
In addition, our culture continues to attract the interest of journalists:
Article on Sifted, “Inside Alan: The French Healthcare startup with no meetings and transparent salaries”.
Podcast on “The Twenty Minutes VC” about the way we communicate with investors and our distributed ownership culture.
Our team grew from 164 people to 189 signed (+25). Sales, where the team went from 26 to 42 and Engineering, with 4 engineers at senior levels E or F.
Senior and high-impact Alaners are onboarding well: Ludovic Bauplé (Business), Alexis Jakubowicz (Brand), Gabriel Hubert (Product), and Diane Rivière (People).
🔭 Looking forward
We are seeing the foundations of all what we built in terms of product and culture having a very differentiating impact on our success.
We really believe we have a very unique opportunity now:
We are transforming the healthcare system at the time it needs it the most.
We have great ways to significantly help our members and admins.
We have the team and the cash to invest in long-term differentiation.
We will follow the impact of the crisis very closely and adjust strategies in perspective of the evolutions.
With the team we have and the culture we have built together, it is time for Alan to emerge as one the very most solid companies in Europe.
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