Gohealth, Inc. · NASDAQ:GOCO
Gohealth — Q1 2021 Earnings Presentation
23 slides from Gohealth's earnings presentation, May 12, 2021
Slide 1: First Quarter 2021 Earnings Slides
First Quarter 2021 Earnings Slides May 12, 2021
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This release 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. Statements reg
Slide 3: Key Topics
Key Topics GoHealth – Highlights & Continued Market Leadership Detailed Review of Q121 2021 Outlook Encompass Opportunity 3
Slide 4: GoHealth – Highlights from Q1 2021
GoHealth – Highlights from Q1 2021 Q1 2021 Financial Summary 45% $204M 65% Revenue Growth Q1 Revenue Medicare-Internal Growth 48% 17% $9M MA Submission Growth YoY LTV Growth Encompass Revenue 4
Slide 5: Investment Posture Positions GoHealth Well for 2021 and Beyond
Investment Posture Positions GoHealth Well for 2021 and Beyond Increasing confidence in AEP readiness with agent investments Strategic Lever Objective Q1 Progress Agent growth of 50+%, additional $ Agents training and coaching Optimizing around enhanced Plan Technology Fit tools, speech analytics an
Slide 6: GoHealth – The Leading Medicare Marketplace
GoHealth – The Leading Medicare Marketplace Q121 Financial Summary and Reaffirmed 2021 Outlook Q121 Results FY 2021 Outlook1 Revenue $204M $1,150M – $1,300M % Growth +45% +31% - 48% Commission Net Revenue $174M $950M – $1,100M . % Growth +55% +42% - 64% EBITDA $32M $345M – $385M % change -8% +27% -
Slide 7: Key Topics
Key Topics GoHealth – Highlights & Continued Market Leadership Detailed Review of Q121 2021 Outlook Encompass Opportunity 7
Slide 8: Q121 Revenue Growth of 45% at High End of Expectations
Q121 Revenue Growth of 45% at High End of Expectations Powered by 55% Growth in Commission Net Revenue and 65% Growth in Medicare-Internal Revenue – Segment Net Revenue Comparison1 ($ in millions) ($ in millions) $204 $204 $7 $30 $40 $141 $141 IFP $17 Enterprise $29 +55% M-E +65% $29 $174 $157 $113
Slide 9: Driving LTV Upside Through Persistency Gains and Encompass Value-Added Service Revenue
Driving LTV Upside Through Persistency Gains and Encompass Value- Added Service Revenue TeleCare investments improve effectuation and persistency while positioning GoHealth for additional Encompass revenue opportunities with partners Medicare Advantage LTV Change (Year-Over-Year) +17% YoY Encompass
Slide 10: Our Model Focuses on Maximizing Revenue per Submission
Our Model Focuses on Maximizing Revenue per Submission Unique carrier relationships and improving LTVs drive growing revenue per submission +15% $1076 $939 Q120 Q121 Medicare Net Revenue / Medicare Submitted Policies Enterprise and Encompass Revenue are Key Differentiators for GoHealth Notes: Revenu
Slide 11: Q121 Investments Provide Excellent Progress Toward Fiscal 21 Goals
Q121 Investments Provide Excellent Progress Toward Fiscal 2021 Goals Significant investments in agents, technology and Encompass Q1 Adjusted EBITDA1 FY Projected Adjusted EBITDA1 ($ in millions) ($ in millions) -8% +27 – 42% $35 $345 - 385 $32 $271 Q1 2020 Q1 2021 FY 2020 FY 2021 Margins: 25% 16% 31
Slide 12: Key Topics
Key Topics GoHealth – Highlights & Continued Market Leadership Detailed Review of Q121 2021 Outlook Encompass Opportunity 12
Slide 13: Reaffirming Fiscal 2021 Outlook
Reaffirming Fiscal 2021 Outlook Top-line fueled by +42% to 64% Commissionable Growth Net Revenue Adjusted EBITDA ($ in millions) $1,150 – 1,300 $345 – 385 +31% to 48% +27% to 42% $877 $271 FY 2020 FY 2021 FY 2020 FY 2021 Strong Compounding Growth with Top Tier, 30% Margins Notes: See accompanying ap
Slide 14: Best in Class Payback Periods With Upside from Enterprise and Encompass
Best in Class Payback Periods With Upside from Enterprise and Encompass Well-positioned for future cash flow generation Faster payback period and growth Commissions collections greater than CAS1 >100% expectations 540,378 TTM Net commissions receivable ~3X ROI increase/(Operating cash flow) 265,584
Slide 15: Key Topics
Key Topics GoHealth – Highlights & Continued Market Leadership Detailed Review of Q121 2021 Outlook Encompass Opportunity 15
Slide 16: The Encompass Platform Aligns Incentives Across Stakeholders
The Encompass Platform Aligns Incentives Across Stakeholders Members Carriers Improved health outcomes Optimized MLRs Greater access to benefits Improved Star ratings Custom coordination Enhanced risk assessment Reliable advocacy Greater retention Care Delivery Member growth Partne
Slide 17: GoHealth Member Care Assessments (MCAs) expand downstream Encompass offerings
GoHealth Member Care Assessments (MCAs) expand downstream Encompass offerings Member Care Generate Insights Care Actions Assessment GoHealth agent generates early MCA responses highlight and prioritize We connect Jane to personalized insights into member health via Jane’s clinical and SDOH needs, pr
Slide 18: Encompass Value Proposition Represents a Large TAM
Encompass Value Proposition Represents a Large TAM Attractive Opportunities for Growth within Existing Health Plans and New Strategic Partners Today $10B $30B $8B $2B Value-Based Care Medicare Advantage Health Risk and $11B Care and Benefits & Preferred Enrollments Member Care SDOH and Pharmacy Supp
Slide 19: GoHealth's 2021 Investments Improve an Already Great Platform
GoHealth’s 2021 Investments Improve an Already Great Platform Technology Agents Marketing LeadScore CallRouter Marketplace TeleCare / Encompass 1 2 3 4 Our End-to-End Competitive Advantages Increasing Internal Marketing Higher Conversion Lower CAC Improved effectuation Revenue/Member Abundant volume
Slide 20: Appendix A
Appendix A 20
Slide 21: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Adjustments to EBITDA ($ in thousands) Description of Adjustments 1Q 2021 1Q 2020 Net Loss $(7,268) $(937) Represents non-cash share-based compensation expense 1 relating to equity awards. Interest Expense 8,688 6,756 Income Tax Expense (Benefit) (31)
Slide 22: Reconciliation of Net Income to Adjusted EBITDA Guidance
Reconciliation of Net Income to Adjusted EBITDA Guidance Twelve Months Ended December 31, 2021 Guidance Range ($ in thousands) Low High Net Income $179,600 $219,600 Interest Expense 35,000 35,000 Income Tax Expense 220 220 Depreciation and Amortization Expense 102,000 102,000 EBITDA $316,820 $356,82
Slide 23: Glossary
Glossary “Approved Submissions” refer to Submitted Policies approved by carriers for the identified product during the indicated period. “Adjusted EBITDA” represents, as applicable for the period, EBITDA as further adjusted for share-based compensation expense, non-recurring legal fees, change in fa