Gohealth, Inc. · NASDAQ:GOCO
Gohealth — Q3 2021 Earnings Presentation
22 slides from Gohealth's earnings presentation, Nov 9, 2021
Slide 1: Third Quarter 2021 Earnings Slides
Third Quarter 2021 Earnings Slides November 9, 2021
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this presentation may be forward-looking statements. Statement
Slide 3: Key Topics
Key Topics 2021 Investments & Financial Highlights Detailed Review of 3Q21 & YTD Results 2021 Outlook Encompass Momentum 3
Slide 4: 2021 Initiatives – Success Going Into AEP
2021 Initiatives – Success Going Into AEP Increasing confidence in AEP readiness with agent investments Strategic Lever Objective YTD Progress • Exceeded AEP agent $ Agents Agent growth of 50+%, additional headcount goal of 50%, training and coaching including TeleCare agents • Fully integrated with
Slide 5: YTD 2021 Highlights
YTD 2021 Highlights 60% $613M 51% Commission Revenue Medicare-Internal Net Revenue Revenue Growth Growth 67% +5% $32M MA Approved MA LTV Per Approved Submission Growth Encompass Revenue Submission Growth 5
Slide 6: GoHealth – The Leading Medicare Marketplace
GoHealth – The Leading Medicare Marketplace 3Q21 financial summary and 2021 outlook 3Q21 Results YTD Results FY 2021 Outlook Revenue $212M $613M $1,200M – $1,300M % Growth +30% +42% +37% - 48% Medicare- $159M $476M Internal +19% +51% Net Revenue % Growth Adjusted $(14)M $32M $300M – $330M EBITDA1 -1
Slide 7: Key Topics
Key Topics 2021 Investments & Financial Highlights Detailed Review of 3Q21 & YTD Results 2021 Outlook Encompass Momentum 7
Slide 8: YTD Revenue Growth of 42%
YTD Revenue Growth of 42% Investments in agents, technology and Encompass driving results Q3 Net Revenue YTD Net Revenue ($ in millions) ($ in millions) $212 $613 +30% $37 $116 +42% $163 $431 $62 Enterprise $121 Enterprise $175 $497 Commission $101 Commission $310 Q3 2020 Q3 2021 YTD 2020 YTD 2021 ~
Slide 9: Delivering Consistent Revenue Growth with Medicare Focus
Delivering Consistent Revenue Growth with Medicare Focus Medicare-Internal powering results, with revenue up 19% in 3Q21 and 51% YTD Q3 Revenue – Segment YTD Revenue – Segment Comparison1 Comparison1 ($ in millions) $212 ($ in millions) $613 $7 $19 $46 $117 $163 IFP $9 +19% $431 +51% M-E $20 $127 IF
Slide 10: Taking a Long-Term View to Drive Higher LTVs
Taking a Long-Term View to Drive Higher LTVs Medicare Advantage LTV1 YoY2 Change +17% Changing Consumer and Carrier Mix +5% +5% +5% +4% • Lower percentage of consumers who are new to Medicare and an increase in consumers that are switching their Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q3 202
Slide 11: Maximizing Revenue Per Submission
Maximizing Revenue Per Submission1 Unique carrier relationships drive growing Revenue Per Submission Medicare Net Revenue / Medicare Submitted Policies +8% $1,200 $1,106 YTD 2020 YTD 2021 Enterprise and Encompass Revenue are Key Differentiators for GoHealth 1 Revenue Per Submission is calculated as
Slide 12: YTD 2021 Investments Tracking Well Toward Fiscal 2021 Goals
YTD 2021 Investments Tracking Well Toward Fiscal 2021 Goals Agent investments complete as we enter AEP YTD Adjusted EBITDA1 FY Projected Adjusted EBITDA1 ($ in millions ) ($ in millions) +11 - 22% $300 - 330 -68% $101 $271 $32 YTD 2020 YTD 2021 FY 2020 FY 2021 Margins: 23% 5% 31% ~25% Q1 – Q3 Invest
Slide 13: Key Topics
Key Topics 2021 Investments & Financial Highlights Detailed Review of 3Q21 & YTD Results 2021 Outlook Encompass Momentum 13
Slide 14: Reaffirming Fiscal 2021 Outlook
Reaffirming Fiscal 2021 Outlook CC&E investments create the agent capacity necessary for AEP Net Revenue Adjusted EBITDA1 ($ in millions) $1,200 – 1,300 $300 – 330 +37% to 48% +11% to 22% $271 $877 FY 2020 FY 2021 FY 2020 FY 2021 Strong Compounding Growth 1 See accompanying appendix for a reconcilia
Slide 15: Strong Capital and Liquidity Profile
Strong Capital and Liquidity Profile Cash Borrowings and Capacity • $85 million of cash and cash • $439 million of long-term debt equivalents on-hand • $175 million in borrowing capacity remaining under revolving credit facilities Receivables Cash Flow Generation • Accounts receivable and commission
Slide 16: Key Topics
Key Topics 2021 Investments & Financial Highlights Detailed Review of 3Q21 & YTD Results 2021 Outlook Encompass Momentum 16
Slide 17: The Encompass Platform Aligns Incentives Across Stakeholders
The Encompass Platform Aligns Incentives Across Stakeholders Members Carriers ✓ Improved health ✓ Optimized member outcomes experiences ✓ Greater access to benefits ✓ Improved Star ratings ✓ Custom coordination ✓ Enhanced risk assessment ✓ Reliable advocacy ✓ Greater retention Value-Based Care ✓ Mem
Slide 18: Increasing Momentum of Encompass Platform
Increasing Momentum of Encompass Platform Encompass Revenue $60M (High) $50M (Low) $32M YTD 2021 FY 2021 (Estimate) Powering revenue and cash flow for this year’s AEP and beyond 18
Slide 19: Appendix
Appendix 19
Slide 20: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Adjustments to EBITDA Description of Adjustments ($ in thousands) 3Q 2021 3Q 2020 YTD 2021 YTD 2020 FY 2020 Represents the loss on debt extinguishment related to the 1 Initial Term Loan Facility. Net Loss $(55,431) $(206,496) $(101,874) $(230,299) $(97
Slide 21: Reconciliation of Net Income to Adjusted EBITDA Guidance
Reconciliation of Net Income to Adjusted EBITDA Guidance Twelve Months Ended December 31, 2021 Guidance Range ($ in thousands) Low High Net Income $126,603 $156,603 Interest Expense 30,000 30,000 Income Tax Expense 220 220 Depreciation and Amortization Expense 102,000 102,000 EBITDA $258,823 $288,82
Slide 22: Glossary
Glossary “Adjusted EBITDA” represents, as applicable for the period, EBITDA as further adjusted for share-based compensation expense, accelerated vesting of certain equity awards, loss on extinguishment of debt, loss on sublease, non-recurring legal fees, change in fair value of contingent considera