Slide 1: 4th Quarter Fiscal 2024 Earnings Conference Call Presentation
4th Quarter Fiscal 2024 Earnings Conference Call Presentation September 13, 2024 | We shop. You save.
Slide 2: Disclaimer
Disclaimer 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 o
Slide 3: SelectQuote Year-in-Review
SelectQuote Year-in-Review FY24 Actual Results vs. Original Guidance Key Highlights $MM Adjusted EBITDA* 8% Revenue Increase in year-over-year Approved MA policies $1,322 25% $117 Senior division full year Adjusted EBITDA* margin $1,125 $93 82k SelectRx members as of fiscal year end Original Guidanc
Slide 4: Senior Efficiency Metrics
Senior Efficiency Metrics Operating Expense Marketing Expense Revenue/CAC*** 4.5 Per Policy* Per Policy** 4.1 $1,034 $780 $578 $750 $430 $382 1.7 FY22 FY23 FY24 FY22 FY23 FY24 FY22 FY23 FY24 *Represents Senior operating costs divided by approved ***The revenue to customer acquisition cost (“CAC”) mu
Slide 5: Healthcare Services Growth & Profitability
Healthcare Services Growth & Profitability Revenue SelectRx Members $MM 000s 82 $479 49 $252 26 $70 FY22 FY23 FY24 FY22 FY23 FY24 Adjusted EBITDA* FY25 Commentary $MM • Continued strong SelectRx revenue growth $8 • Scaled profitability and incremental margin improvement $(23) $(32) FY22 FY23 FY24 •
Slide 6: Executing on Recapitalization Plan
Executing on Recapitalization Plan SelectQuote recently entered into a non-binding letter of intent with certain of its term debt lenders for a ~$100M securitization related to a portion of the company's commission receivables. Provided the deal closes, we expect immediate balance sheet benefits. Mo
Slide 7: 2025 Outlook in Context
2025 Outlook in Context What Stays the Same? What Changed? • Medicare Advantage policy persistency trends • A large insurance carrier partner will shift back to a are stable and broad demand from aging ratable commission structure vs. the previous front- Americans remains strong loaded structure • S
Slide 8: Healthcare Select Flywheel
Healthcare Select Flywheel Healthcare Select’s ‘right-to-win’ lies in our proven track record of engaging members, capturing critical self-reported information in real-time, and then taking action on that information to offer each member personalized solutions Unbiased shopping platform Simplifying
Slide 9: 4Q and FY2024 Earnings Highlights
4Q and FY2024 Earnings Highlights Financial Results • Consolidated Company Highlights ◦ Operating cash flow and free cash flow 4Q24 4Q23 FY2024 FY2023 $ in millions positive during FY2024 ◦ Exceeded the top ends of both revenue Revenue $307.2 $221.8 $1,321.8 $1,002.8 and Adjusted EBITDA guides for f
Slide 10: 2024 Consolidated Financial Summary
2024 Consolidated Financial Summary Revenue Adjusted EBITDA* $MM $MM YOY Growth 39% 32% Margin % 5% 9% $1,322 $117 $1,003 $74 $307 $222 $14 $(6) 4Q23 4Q24 FY23 FY24 4Q23 4Q24 FY23 FY24 *See "Non-GAAP Financial Measures" section on slide 2 | We shop. You save. 10
Slide 11: SelectQuote Senior KPIs
SelectQuote Senior KPIs Total Approved Policies MA LTV 000s MA Other MA Other $910 $877 $830 $847 688 648 62 71 125 121 15 14 625 578 110 107 4Q23 4Q24 FY23 FY24 4Q23 4Q24 FY23 FY24 | We shop. You save. 11
Slide 12: Senior Financial Summary
Senior Financial Summary Revenue Adjusted EBITDA* $MM $MM $656 Margin % 24% 25% $590 $167 $155 $114 $104 $28 $16 4Q23 4Q24 FY23 FY24 4Q23 4Q24 FY23 FY24 *See "Non-GAAP Financial Measures" section on slide 2 | We shop. You save. 12
Slide 13: Life and Auto & Home Financial Summary
Life and Auto & Home Financial Summary Revenue Adjusted EBITDA* $MM $MM Life Auto & Home $36 $22 $14 $— $8 $2 $158 $7 $146 $7 $38 $42 $23 $20 $(7) $(1) (1) (1) (1) (1) 4Q23 4Q24 FY23 FY24 4Q23 4Q24 FY23 FY24 (1) Includes the impact of a one-time $10.4 million change in estimated revenue related to t
Slide 14: FY25 Financial Guidance
FY25 Financial Guidance REVENUE $1.4B to $1.5B +10% YoY At the Midpoint ADJUSTED EBITDA** $90M to $120M (10%) YoY At the Midpoint NET INCOME (LOSS) $(42)M to $(6)M +30% YoY At the Midpoint **See "Non-GAAP Financial Measures" above on slide 2. | We shop. You save. 14
Slide 15: FY2025 Guidance Drivers
FY2025 Guidance Drivers Adjusted EBITDA* Drivers $MM $117 $14 $105 *** • Forecasting approximately 10-15% decline in Senior MA $103 ** volume due to current capital constraints • Expect MA unit economics to remain strong and plan to deliver on 20%+ Adjusted EBITDA margin target within Senior busines
Slide 16: Supplemental Information
Supplemental Information | We shop. You save. 16
Slide 17: Adjusted EBITDA to Loss before income tax expense Reconciliation
Adjusted EBITDA to Loss before income tax expense (benefit) Reconciliation 4Q FY 2024 Healthcare (in thousands) Senior Services Life Auto & Home Total Adjusted Segment EBITDA $ 27,872 $ 909 $ 7,217 $ 2,474 $ 38,472 Corporate & elimination of intersegment profits (24,115) Adjusted EBITDA 14,357 Share
Slide 18: Adjusted EBITDA to Loss before income tax expense Reconciliation
Adjusted EBITDA to Loss before income tax expense (benefit) Reconciliation FY 2024 Healthcare (in thousands) Senior Services Life Auto & Home Total Adjusted Segment EBITDA $ 166,744 $ 7,821 $ 20,164 $ 14,127 $ 208,856 Corporate & elimination of intersegment profits (91,863) Adjusted EBITDA 116,993 S
Slide 19: Net Loss to Adjusted EBITDA Reconciliation FY25 Guidance
Net Loss to Adjusted EBITDA Reconciliation FY25 Guidance (in thousands) Range Net loss $ (42,000) $ (6,000) Income tax benefit $ (16,000) $ (2,000) Interest expense, net $ 102,000 $ 92,000 Depreciation and amortization $ 24,000 $ 20,000 Share-based compensation expense $ 16,000 $ 13,000 Transaction
Slide 20: SelectQuote Inc. contact and investor relations
SelectQuote Inc. 6800 West 115th Street Suite 2511 Overland Park, Kansas 66211 Phone: (913) 599-9225 Investor Relations investorrelations@selectquote.com | We shop. You save. 20