Selectquote, Inc. · NYSE:SLQT
Selectquote — Q2 FY2021 Earnings Presentation
20 slides from Selectquote's earnings presentation, Feb 8, 2021
Slide 1: 2nd Quarter and Fiscal Year to Date 2021 Earnings Conference Call Presentation
2nd Quarter and Fiscal Year to Date 2021 Earnings Conference Call Presentation February 8, 2021 Exhibit 99.2
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements This presentation contains forward-looking statements. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words o
Slide 3: 2nd Quarter Earnings Summary
SelectQuote drove top-line and profit results for the 2nd quarter that were ahead of internal expectations. Results were primarily driven by a very strong AEP period in our Senior division. Consolidated revenue totaled $358 million, up 103% year-over-year. Consolidated Adjusted EBITDA* totaled $130
Slide 4: 2nd Quarter Review – Examining a Historic AEP
4 2nd Quarter Review – Examining a Historic AEP Growth 132% YoY Approved MA Policies 117% YoY Total Approved Policies Efficiency 70% Increase in Productive Agents 32% Increase in Agent Productivity Stability $1,268 Flat YoY LTV Customer Focus ~85% CCA New Customer Contact % +98% YoY Adj. EBITDA* *Se
Slide 5: Differentiated Agent Model
Differentiated Agent Model Retention of Talent • Six figure top level agent comp • 90%+ level 1 retention rate • Tenured agents 50% more productive Financial Results • Agent productivity improvements • Industry leading LTV’s • Rapid growth at attractive margins 5
Slide 6: Our Approach is Rooted in Sophisticated Technology
Our Approach is Rooted in Sophisticated Technology Robust, fully-integrated technology platform drives customer lifetime value / ROI Lead Acquisition Lead Management & Routing Sales Customer Engagement & Lifecycle Management SelectCare Core proprietary CRM and parent system, with sales enablement /
Slide 7: Purpose-Built Technology Powers Our Wide Funnel Marketing
Purpose-Built Technology Powers Our Wide Funnel Marketing 7
Slide 8: Key Takeaways from 2nd Quarter and AEP
◦ Our market-leading and stable LTVs serve as a strong proof point to the sustainability and strategic advantages of our model ◦ Our differentiated approach to agents and technology delivers high quality growth at rapid scale and increasing agent productivity, which was up 32% Key Takeaways from 2nd
Slide 9: SelectQuote – Consolidated Financial Summary
9 69 130 70 142 2Q FY20 2Q FY21 FYTD 20 FYTD 21 176 358 241 482 2Q FY 20 2Q FY 21 FYTD 20 FYTD 21 36% Adj. EBITDA Margin 39% 10 3% *See reconciliations from non-GAAP measure, Adjusted EBITDA, to net income on slides 18-20. SelectQuote – Consolidated Financial Summary Revenue ($MM) Adj. EBITDA* ($MM)
Slide 10: SelectQuote Senior – Financial Summary
10 68 135 66 143 2Q 2020 2Q 2021 FYTD 20 FYTD 21 139 316 166 389 2Q 2020 2Q 2021 FYTD 20 FYTD 21 43% Adj. EBITDA Margin 49% 12 7% SelectQuote Senior – Financial Summary Revenue ($MM) Adj. EBITDA* ($MM) 13 4% 37%40% 98 % 11 7% *See reconciliations from non-GAAP measure, Adjusted EBITDA, to net income
Slide 11: SelectQuote Senior – Policies
11 120,120 260,850 150,439 330,343 89,920 208,714 108,399 251,187 6,412 10,451 9,038 16,776 23,788 41,685 33,002 62,380 MA MS Other 2Q 2020 2Q 2021 FYTD 20 FYTD 21 150,743 313,030 187,216 392,647 108,223 246,548 129,074 294,539 9,179 13,273 12,680 20,549 33,341 53,209 45,462 77,559 MA MS Other 2Q 20
Slide 12: SelectQuote Life – Financial Summary
12 24 31 46 69 19 19 38 373 11 7 31 1 1 1 1 Core Premium Final Expense Ancillary Premium Q2 FY2020 Q2 FY2021 FYTD 20 FYTD 21 6 6 12 17 Q2 FY2020 Q2 FY2021 FYTD 20 FYTD 21 29 36 57 79 Q2 FY2020 Q2 FY2021 FYTD 20 FYTD 21 Adj. EBITDA Margin 18%22% 229% 29% (4)% CAGR 3% 26% Life Premium ($MM) Revenue ($
Slide 13: SelectQuote Auto & Home – Financial Summary
13 2 2 4 6 Q2 FY2020 Q2 FY2021 FYTD 20 FYTD 21 9 7 19 17 2Q 2020 2Q 2021 FYTD 20 FYTD 21 15 13 32 30 2Q 2020 2Q 2021 FYTD 20 FYTD 21 Adj. EBITDA Margin 30%18% (15)% 42% (10)% Net New Effective Premium ($MM) Revenue ($MM) Adj. EBITDA* ($MM) *See reconciliations from non-GAAP measure, Adjusted EBITDA,
Slide 14: Growing Faster While Using Less Cash
Growing Faster While Using Less Cash *See reconciliations from non-GAAP measure, Adjusted EBITDA, to net income on slides 18-20. ◦ IPO provided growth capital for the next several years ◦ Post IPO results have exceeded forecasts for revenue and EBITDA ◦ Accelerated growth would typically drive great
Slide 15: Capitalization Summary
• Net cash position of ($79) million ◦ $246 million of cash, cash equivalents, and restricted cash ◦ $325 million of term debt • Available borrowing capacity of $75 million on undrawn revolver • Accounts receivable, short and long term commissions receivable balance of $879 million • Expect to pay f
Slide 16: SelectQuote – FY2021 Consolidated Guidance
16 ($'s in millions) Range Implied YoY Growth Revenue $920 - $940 73% - 77% Net Income $138 - $146 70% - 80% Adjusted EBITDA* $230 - $240 49% - 56% *See reconciliations from non-GAAP measure, Adjusted EBITDA, to net income on slides 18-20. SelectQuote – FY2021 Consolidated Guidance
Slide 17: Supplemental information
Supplemental information 17
Slide 18: 2Q FY2021 Adjusted EBITDA to Net Income Reconciliation
18 2Q FY 2021 (in thousands) Senior Life Auto & Home Corp & Elims Consolidated Revenue $ 315,510 $ 36,375 $ 7,241 $ (852) $ 358,274 Operating expenses (180,955) (29,961) (5,091) (12,746) (228,753) Other expenses, net — — — (21) (21) Adjusted EBITDA 134,555 6,414 2,150 (13,619) 129,500 Share-based co
Slide 19: 2Q FY2020 Adjusted EBITDA to Net Income Reconciliation
19 2Q FY 2020 (in thousands) Senior Life Auto & Home Corp & Elims Consolidated Revenue $ 138,875 $ 28,980 $ 8,566 $ (124) $ 176,297 Operating expenses (70,765) (22,740) (7,049) (6,775) (107,329) Other expenses, net — — — (3) (3) Adjusted EBITDA 68,110 6,240 1,517 (6,902) 68,965 Share-based compensat
Slide 20: FY21 Guidance Adjusted EBITDA to Net Income Reconciliation
20 (in thousands) Range Net Income $ 138,000 $ 146,000 Income tax expense 42,000 44,000 Interest expense, net 28,000 28,000 Depreciation and amortization 14,000 14,000 Fair value adjustments to contingent earnout obligations 1,000 1,000 Non-recurring expenses 2,000 2,000 Share-based compensation exp