Alan - 2023 Q1 Letter to Shareholders

• A promising start to the year 🚀
• We over-performed and strengthen our positioning in Spain 🇪🇸
• Fast forwarding the Health Partner Category Creation ⏭️ 🩺
• Scaling our operations 💰📉
• Looking forward: Embracing AI to reinvent healthcare 🤖
• Conclusion

Dear Alan friends and investors,

🎂 As we celebrated our 7-year Alanniversary in February, our priorities for 2023 are:

1️⃣ Executing our one-stop health partner strategy globally

2️⃣ While scaling our operations

3️⃣ In a context where AI is a tidal wave we have been anticipating for over 1 year.

Our strategy is exciting and our pace of execution has never been as good.

The opportunities ahead of us are immense and we are working with passion and drive to make our vision a reality.

As we enter Q2, we are excited to continue executing our plan to create the One-Stop Health Partner category. To make this positioning a reality, we have revamped our global narrative and achieved several significant product milestones, including starting the roll-out of our health partner product bundle, addressing pain points for admins and members, and confirming the superiority of our solutions through external audits. We have also passed the 400,000 signed members milestone.

We are also focused on scaling our operations and have made significant progress in improving our cost to serve.

Finally, we believe AI is the next tidal wave in the future of healthcare. Over the past year, AI has become the main focus area for Charles, our CTO. We believe that AI is going to change the rules and re-shuffle everything, from the way we work, the products we build, to how we differentiate ourselves. We have many exciting innovations in the oven.

At Alan, we are committed to being at the forefront of this change and exploring the possibilities that this new technology brings while remaining member-obsessed.

7 years old, the age of reason for Charles and his schoolyard best friend Jean-Charles

We over-performed in our year-end 2022 reported figures

Due to the nature of our business, actual historical numbers evolve slightly over time post the balance sheet date. In 2022 all four of our KPIs improved vs. the numbers we reported in the Q4 2022 letter to shareholders. The €2m on net income overperformance is equivalent to paying for c.15 engineers.

Key numbers at the end of Q1 2023

We continue to improve our economics, strengthen our sales, and expand our reach in France 🇫🇷

• We have a strong momentum on discoveries and opportunities.

• We have a stronger brand: our SEO traffic is increasing (+66% in Q1 2023 vs Q4 2022), and so are inbound leads (+100% in retail and tech vs 2022)

• We are actively discussing with the key stakeholders of the public system health insurance reform, in order for us to proposer the best offer to cover the public administrations

• We closed Q1 with 9.4k signed members, a 29% increase from the end of 2022 and ahead of budget closing several large and medium deals like Revolut and Aircall.

• We have increased members’ adoption rate. We achieved a 77% adoption rate within 2 months for >50% contribution companies.

• We are strengthening our positioning.

• We are handling 85% of all psychology consultations through our own clinic.

We are smoothly transitioning to the bundle experience in Belgium 🇧🇪

• Our bundle narrative is resonating well, and we're continuing to gain traction with several Very Large accounts and existing customers

• We have made self-serve available for small companies with 2-9 employees, allowing them to discover our products, select the most appropriate, and sign a contract autonomously.

We are increasing the talent density of our team

The team reached 535 Alaners at the end of Q1 2023 having hired 42 Alaners over the first quarter of 2023

• Alaners have taken over new roles, including:

  • Virak Nou is now Insurance Community Lead

  • Sébastien de Larquier is now Data Community Lead

  • Marion Deneuville is taking over our Insurance Offer Area

• Our offer acceptance rate is high: 87% of offers accepted in Q1 vs 79% in 2022.

• We are increasing talent density through reducing regretted attrition: we have made good progress on this aspect. In Q1 regretted attrition was less than 30% (vs 39% in 2022).

A single app for your health

Following the decision to bundle our Mind and insurance offers to position Alan as the one-stop health partner, we took the decision to integrate the Mind app into the main app. The goal is to become part of the daily routine of our members.

• We will offer therapy session bookings and mental health videos directly in the Alan app from April 30th (starting in France).

• We will integrate the Mind programs during Q2 (eg: meditation, breathing exercises, and the self-confidence program).

• Our vision for the Alan app is for it to be a friend our members can turn to for their health, providing daily check-ins and guidance towards simple actions that compound to better wellbeing.

This is how the app will look like 👇

In Q2, we will share modalities and organization of the app at the global level. Our goal is to globalize the services we develop in a single app while accommodating local needs in 🇫🇷, 🇧🇪, and 🇪🇸.

Health partner experience for Members

Our members continue to give us positive feedback with a stable NPS of 65, and we are excited to see a significant increase in adoption of our prevention assessment.

In Q1, we have released the following features for members:

Health partner experience for Customers

Customer NPS remains strong at 51, though it decreased slightly compared to Q4 2022.

We are committed to understanding our customer needs and satisfaction levels more comprehensively, and are reviewing our measurement methods to better isolate drivers of satisfaction (such as pricing vs product).

In Q1, we have released the following features for customers:

⭐ We are committed to enhancing the member and customer experiences further and have set the adoption of our health stories (eg: back pain, eyewear) as our north star metric, which we are currently working on measuring.

Cost to serve has been a key priority over the past quarter, and we have reduced it thanks to strong initiatives ongoing across the company such as customer support’s tools, increased automation rate, successful progress on cost optimization of key vendors.

POV: you're running out of patience and you just want to eat the cake

At Alan, we recognize the paradigm shift that is occurring with the emergence of pretrained AI models, particularly Large Language Models (LLMs). We strongly believe that companies that harness the power of AI to transform themselves will have a significant advantage over those that do not.

Our AI strategy aims to position Alan as the showcase example of an AI-enabled company by the end of 2023, revolutionizing our daily operations, products, and services. We have been working on this for over a year.

We have the opportunity to impact everyone through AI: educating Alaners to become more productive with AI, redefining roadmaps to integrate AI and using internal tools to develop and deploy AI models. We believe these practices will help increase differentiation through personalization and reduce cost to serve.

Our strengths ideally position us to capitalize on the value this new tech can bring. These strengths include our industry-leading data backend, trust with our members, obsession for great and integrated products, experienced team, and our capability to build fast.

We are working on a range of initiatives, including empowering our customer service team with automated answers, transcribing documents for faster reimbursement, personalizing emails for more effective communication, and making it super simple for members to find their coverage details.

This is only the beginning. We hope to get significant gains as usages mature, technology improves and the team gets more and more accustomed to this new paradigm. We will announce a lot more soon!

We enter Q2 in a solid position, and we are more hungry than ever to transform health at scale. The potential for innovation is unlimited.

We are in the middle of a transformation for Alan from health insurance to the one-stop health partner that is the daily ritual of members & the best HR investment a company can make. It is even more exciting to surf the AI tidal wave to accelerate this transformation, and we believe Alan is the best-positioned company in Europe to deliver on this.

Working towards this future together is truly thrilling.

Thank you for supporting us. Let’s continue to build the future of healthcare together.