Gohealth, Inc. · NASDAQ:GOCO
Gohealth — Q1 2022 Earnings Presentation
17 slides from Gohealth's earnings presentation, May 10, 2022
Slide 1: First Quarter 2022 Earnings Slides
First Quarter 2022 Earnings Slides May 10, 2022
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 press release may be forward-looking statements. Statements re
Slide 3: Key Topics
Key Topics Highlights from Q1 2022 & Progress on 2022 Key Priorities Detailed Review of Q1 2022 Expanded Encompass Offerings 3
Slide 4: GoHealth – Highlights from Q1 2022
GoHealth – Highlights from Q1 2022 Q1 2022 Financial Summary $271M 33% Q1 Revenue Q1 Revenue Growth 62% $54M Q1 Total Cash Flow from Submissions Growth Operations 4
Slide 5: FY 2022 Key Priorities
FY 2022 Key Priorities Optimizing unit economics to accelerate positive cash flow Key Initiatives 2022 Strategic Shift Outcomes • Reduce total volume of leads • 10% marketing cost per 1 Marketing • Selective sources for higher quality lead mix submission improvement in with improved retention March
Slide 6: Sharp Focus on Profitability
Sharp Focus on Profitability $200M in 2022 cost savings Key levers to improve identified vs 2021 run-rate profitability in 2022 • Lower spending on marketing & SG&A advertising, particularly during less profitable selling periods • Building agent experience on our guided selling platform which impro
Slide 7: Key Topics
Key Topics Highlights from Q1 2022 & Progress on 2022 Key Priorities Detailed Review of Q1 2022 Expanded Encompass Offerings 7
Slide 8: Q1 2021 Results
Q1 2021 Results Net Revenue ($ in millions) +33% 271 +45% 204 141 Q1 2020 Q1 2021 Q1 2022 300K Q1 Medicare submitted policies (+62% vs. Q1 2021) 8
Slide 9: Key Operating Metrics for Medicare Segment
Key Operating Metrics for Medicare Segment Medicare Submissions Revenue per Submission Cost per Submission (in thousands) +62% -5% 300 937 891 +3% 752 730 185 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 9
Slide 10: Q1 2022 Revenue Powered by Medicare-Internal
Q1 2022 Revenue Powered by Medicare-Internal Net Revenue Revenue – Segment Comparison1 ($ in millions) ($ in millions) +33% +33% 271 271 5 61 61 204 204 7 30 40 141 141 Enterprise 29 IFP 17 210 M-E 29 204 174 157 Commissions 113 M-I 95 Q1 2020 Q1 2021 Q1 2022 Q1 2020 Q1 2021 Q1 2022 1 IFP = Individu
Slide 11: Q1 2022 Results
Q1 2022 Results Net Revenue Adjusted EBITDA ($ in millions) ($ in millions) +33% -65% 271 32 204 11 Q1 2021 Q1 2022 Q1 2021 Q1 2022 See accompanying appendix for a reconciliation of Adjusted EBITDA, which is a non-GAAP financial measure, to the most comparable GAAP measure 11
Slide 12: Q1 2022 Financial Summary and FY 2022 Outlook
Q1 2022 Financial Summary and FY 2022 Outlook We are slowing down growth to accelerate cash and improve profitability Q1 2022 Results FY 2022 Outlook Revenue $271M $900M – $1,100M Revenue Growth +33% (15%) - 4% Adjusted EBITDA $11M $110M - $150M Adjusted EBITDA Margin 4% 12% – 14% Cash Flow from $54
Slide 13: Capital and Liquidity
Capital and Liquidity Cash on Hand • $130 million of cash and cash equivalents on-hand as of 3/31/2022 Borrowings and Capacity • $45 million in borrowing capacity remaining under revolving credit facilities as of 3/31/2022 • $663 million of long-term debt Operating Cash Flow • $54M of positive opera
Slide 14: Key Topics
Key Topics Highlights from Q1 2022 & Progress on 2022 Key Priorities Detailed Review of Q1 2022 Expanded Encompass Offerings 14
Slide 15: Expanded Encompass Offerings in 2022
Expanded Encompass Offerings in 2022 We are excited to expand our Enterprise Solutions by offering Encompass as a Service with two new modules Customer Acquisition Onboarding & Retention Quality-focused Jointly designed qualification and eligibility post-enrollment journey for target segments 15
Slide 16: Appendix
Appendix 16
Slide 17: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Adjustments to EBITDA ($ in thousands) Description of Adjustments 1Q 2022 1Q 2021 Net Loss $(37,241) $(7,260) Represents non-cash share-based compensation expense 1 relating to equity awards. Interest Expense 11,398 8,688 Income Tax Expense (Benefit) 4