Alan - Q3 2021 Letter to shareholders
You know it, we love radical transparency and building in the open. We believe this transparency builds trust internally and externally.
In July, we published our Q2 2021 letter to shareholders in our blog. As we share quarterly updates with our investors, we want to keep sharing them with our community.
Please find below the email we sent to our investors following the third quarter of 2021. We slightly edited it to remove sensitive information.
Dear Alan friends and investors,
Our objective is to offer a personalised, lightning-fast and affordable healthcare experience for 50m members by 2030 (we still have a long road ahead of us :) ).
In order to achieve that, there are different flywheels on which we want to be successful, and I feel that for the first time they are really starting to converge. They are not just a vision anymore, we are delivering on them.
💚 Health insurance: our initial catalyst for market leadership
The objective with insurance (health+disability+basic membership fee) is to offer the most differentiated product in the market at very competitive prices.
Thanks to that, we believe we can have solid growth with healthy margins (while remaining more competitive than the market which has an average gross margin of c. 20%).
During this quarter, we have managed to:
Keep growing above our targets with 204.5k signed members at the end-of-September compared to an objective of 201k.
Sign new customers at a healthy and competitive gross margin.
Push a successful renewal campaign in France (running until year-end) to our entire portfolio, which we expect to lead us into positive territory for our margin by next year. In the context of a c.30% industry wide increase in consumption vs. 2020, we pushed for a maximum of transparency towards our customers and members.
In parallel, we are seeing accelerated momentum in 🇪🇸 Spain & 🇧🇪 Belgium. It is very exciting.
We are back to performing well on Care with SLAs beating our targets. It is the result of a revamp of our care organisation, accelerated hiring and an outsourcing strategy.
↗️ Increasing the value per member with new services
After our acquisition of Jour, we have officially rebranded the product to Alan Mind, expanding it into a full-stack mental health solution for companies. We officially launched it on September 21st.
We upsell Mental well-being to existing companies, with great momentum.
We are also discussing with companies that are not Alan insurance customers yet.
Our other initiatives such as provider recommendations in Alan Map, our virtual clinic and Alan Baby are ways to deliver even more value to our members.
🙌 Increase competitiveness through vertical integration
We have already started with Alan Clear and >12k members have created eye care profiles in the app. We believe that working on the full eye care experience in the app will allow us to build trust and engagement to really bend the cost curve of this care, both for our members and us. This allows us to pass on cost savings to our members.
We are also investing significantly in fighting fraud and abuse.
3️⃣ Third parties
We are going to make some announcements on the topic soon!
♻️ Our internal ecosystem
The continuous investment in our culture since the beginning of the company is paying off: we are scaling well, allowing us to keep attracting incredible talents and providing them the tools to be owners (distributed ownership).
Over the past 12 months, around 210 people have joined Alan, which is half the size of the company today. Alan just ranked 1st on the Linkedin Top startups list.
Our culture also allows us to manage complexity and new business lines (countries, healthcare services) in a distributed and aligned way. The combination of both is really hard to achieve.
🧑🏫 What we still need to learn
Alan Baby has shown early signs of market fit and we feel there is a lot of potential for it to get to a bigger scale.
In our virtual clinic, we are also adding multiple specialties (nutritionists, adult sleep coaches, nurses, dermatologists) to learn how to engage more members proactively and guide them towards more effective care options.
🔭 Looking ahead
Until the end of the year, we will focus on executing the plan, on three major objectives:
Successful growth and renewal campaign in France, maintaining high levels of member-obsession and transparency;
Keep accelerating momentum in Spain and Belgium;
Make our Mental Well-being offer a big success.
Longer-term we are building the international health & well-being super-app that helps all people have a personalised and accessible healthcare experience.
The objective of the super-app is to create good habits and become the best gateway to the healthcare system, the one-stop-shop.
In order to do that:
Grow differentiated and competitive health insurance at self-sustaining margins
Increase value per member by adding new healthcare services
Decrease cost of health through verticalization which allows us to be always more competitive
Being really strong on the first three will enable us to explore new territories and expand our business.
Thank you for being part of this adventure, and for your trust. We are more excited than ever.