Slide 1: 3rd Quarter Fiscal 2023 Earnings Conference Call Presentation
3rd Quarter Fiscal 2023 Earnings Conference Call Presentation May 11, 2023 | 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: 3QFY23 Earnings Highlights
3QFY23 Earnings Highlights SelectQuote delivered consolidated 3Q results above expectations, fueled by a strong Senior Medicare OEP season • Revenue totaled $299.4 million, compared to $274.3 million last year • Net Income totaled $9 million, or $0.06 per diluted share • Adjusted EBITDA* totaled $44
Slide 4: SelectQuote Senior KPIs
SelectQuote Senior KPIs TOTAL POLICIES APPROVED MA LTV 000s MA Other 237 $965 $933 41 185 19 196 166 3Q22 3Q23 3Q22 3Q23 | We shop. You save. 4
Slide 5: Senior Efficiency Metrics
Senior Efficiency Metrics Operating Expense Marketing Expense Agent Close Rates Per Policy* Per Policy** $1,073 % $613 28 $765 $391 LTM 3/31/22 LTM 3/31/23 LTM 3/31/22 LTM 3/31/23 LTM 3/31/22 LTM 3/31/23 *Represents Senior operating costs divided by approved MA/MS policies. **Represents Senior marke
Slide 6: Senior Retention Operational Changes & Progress
Senior Retention Operational Changes & Progress High Transactional Approval Rates 90-Day Active Rates Segment Mix ~450 ~875 19% BPS BPS Represents FYTD through AEP (1/1 Effectives) | We shop. You save. 6
Slide 7: Consolidated Financial Summary
Consolidated Financial Summary REVENUE ADJUSTED EBITDA* $MM $MM $299 Margin % 5% 15% $274 $44 $12 3Q22 3Q23 3Q22 3Q23 *See "Non-GAAP Financial Measures" above on slide 2. | We shop. You save. 7
Slide 8: Senior Financial Summary
Senior Financial Summary REVENUE ADJUSTED EBITDA* $MM $MM $211 Margin % 19% 32% $185 $59 $40 3Q22 3Q23 3Q22 3Q23 *See "Non-GAAP Financial Measures" above on slide 2. | We shop. You save. 8
Slide 9: Healthcare Services KPIs
Healthcare Services KPIs SELECTRX MEMBERS REVENUE & ADJUSTED EBITDA* 50,000 $MM 45,000 40,000 $55 $71 35,000 $43 30,000 $30 $23 25,000 20,000 3Q22 4Q22 1Q23 2Q23 3Q23 15,000 $(3) 10,000 $(8) $(9) $(12) $(12) 5,000 — 3Q22 4Q22 1Q23 2Q23 3Q23 *See "Non-GAAP Financial Measures" above on slide 2. | We s
Slide 10: Life and Auto & Home
Life and Auto & Home REVENUE ADJUSTED EBITDA* $MM $MM $7 $8 $3 $39 $37 $5 $1 $(3) 3Q22 3Q23 3Q22 3Q23 Life Auto & Home Life Auto & Home *See "Non-GAAP Financial Measures" above on slide 2. | We shop. You save. 10
Slide 11: Cash Efficiency & Long-Term Value Creation
Cash Efficiency & Long-Term Value Creation ADJUSTED EBITDA* CASH EBITDA* $MM $MM $80 $97 $(200) $(191) FYTD '22 FYTD '23 FYTD '22 FYTD '23 % OF TOTAL REVENUE RECEIVED IN FIRST YEAR* COMMISSIONS RECEIVABLE $MM $MM 62% 52% $838 $822 FYTD '22 FYTD '23 3/31/22 3/31/23 *See "Non-GAAP Financial Measures"
Slide 12: Raising Fiscal Full Year 2023 Guidance
Raising Fiscal Full Year 2023 Guidance (#039;s in millions) Range Implied YoY Growth Revenue $950 - $970 24% - 27% Net Loss $73 - $55 NM - NM Adjusted EBITDA* $40 - $50 NM - NM *See "Non-GAAP Financial Measures" above on slide 2. | We shop. You save. 12
Slide 13: Supplemental Information
Supplemental Information | We shop. You save. 13
Slide 14: Net Income (Loss) to Adjusted EBITDA Reconciliation
Net Income (Loss) to Adjusted EBITDA Reconciliation 3Q FY 2023 Healthcare (in thousands) Senior Services Life Auto & Home Corp & Elims Consolidated Revenue $ 185,200 $ 70,725 $ 36,950 $ 8,238 $ (1,715) $ 299,398 Operating expenses (126,034) (74,091) (31,446) (5,648) (17,947) (1) (255,166) Other inco
Slide 15: Net Income (Loss) to Adjusted EBITDA Reconciliation
Net Income (Loss) to Adjusted EBITDA Reconciliation 3Q FYTD 2023 Healthcare (in thousands) Senior Services Life Auto & Home Corp & Elims Consolidated Revenue $ 486,541 $ 169,270 $ 107,780 $ 23,128 $ (5,649) $ 781,070 Operating expenses (347,608) (193,726) (91,409) (15,812) (52,270) (700,825) Other i
Slide 16: Net Income (Loss) to Cash EBITDA Reconciliation
Net Income (Loss) to Cash EBITDA Reconciliation 3Q FYTD 2023 (in thousands) Consolidated Cash EBITDA $ 97,270 Future Renewal Commission Revenue $ (17,143) Adjusted EBITDA $ 80,127 Share-based compensation expense (8,525) Transaction costs (3,003) Depreciation and amortization (21,087) Loss on dispos
Slide 17: Net Loss to Adjusted EBITDA Reconciliation (FY23 Guidance)
Net Loss to Adjusted EBITDA Reconciliation (FY23 Guidance) (in thousands) Range Net loss $ (73,000) $ (55,000) Income tax benefit (25,000) (19,000) Interest expense, net 80,000 80,000 Depreciation and amortization 28,000 28,000 Share-based compensation expense 12,000 12,000 Transaction costs 18,000
Slide 18: 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. 18