Gohealth, Inc. · NASDAQ:GOCO
Gohealth — Q2 2021 Earnings Presentation
22 slides from Gohealth's earnings presentation, Aug 11, 2021
Slide 1: Second Quarter 2021 Earnings Slides
Second Quarter 2021 Earnings Slides August 11, 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 Q221 and YTD21 Results 2021 Outlook 20-Year Track Record of Success 3
Slide 4: YTD 2021 Highlights
YTD 2021 Highlights 50% $401M 74% Medicare—Internal Revenue Growth Net Revenue Revenue Growth 52% 11% $17M MA Approved Submission Growth YoY MA LTV Growth Encompass Revenue 4
Slide 5: 2021 Initiatives Tracking Well for AEP and 2022
2021 Initiatives Tracking Well for AEP and 2022 Increasing confidence in AEP readiness with agent investments Strategic Lever Objective YTD Progress Agent growth of 50+%, additional • YTD agent growth $ Agents training and coaching tracking over 50% • Fully integrating with Optimizing around enhance
Slide 6: GoHealth – The Leading Medicare Marketplace
GoHealth – The Leading Medicare Marketplace Financial summary and revised 2021 outlook Q221 Results YTD Results FY 2021 Outlook Revenue $197M $401M $1,200M – $1,300M % Growth +55% +50% +37% - 48% Medicare— $160M $318M Internal +84% +74% Net Revenue % Growth Adjusted $14M $46M $300M – $330M EBITDA1 -
Slide 7: Key Topics
Key Topics GoHealth – Highlights & Continued Market Leadership Detailed Review of Q221 and YTD21 Results 2021 Outlook 20-Year Track Record of Success 7
Slide 8: Q221 Revenue Growth of 55% at High End of Expectations
Q221 Revenue Growth of 55% at High End of Expectations Investments in agents, technology and Encompass driving results Q2 Net Revenue YTD Net Revenue ($ in millions) ($ in millions) $401 $197 $80 $49 +50% +55% $268 $127 Enterprise $59 Enterprise $30 $321 $148 Commission $97 Commission $209 Q2 2020 Q
Slide 9: Delivering Consistent Revenue Growth with Medicare Focus
Delivering Consistent Revenue Growth with Medicare Focus Medicare—Internal powering results, with revenue up 84% in Q221 and 74% YTD Q2 Revenue – Segment YTD Revenue – Segment Comparison1 Comparison1 ($ in millions) ($ in millions) $401 $198 $12 $5 $71 $31 $268 +74% $127 +84% IFP $28 $12 IFP M-E $57
Slide 10: Driving LTVs Higher, up 11% YTD
Driving LTVs Higher, up 11% YTD 2020 investments in TeleCare improve effectuation and persistency, and position GoHealth for additional Encompass revenue opportunities Medicare Advantage LTV1 YoY2 Change +17% Encompass Revenue +6% Additional value-added services for carriers and partners beyond en
Slide 11: Maximizing Revenue Per Submission
Maximizing Revenue Per Submission1 Unique carrier relationships and improving LTVs drive growing revenue per submission Medicare Net Revenue / Medicare Submitted Policies +16% $1,128 $975 YTD 2020 YTD 2021 Enterprise and Encompass Revenue are Key Differentiators for GoHealth 1 Revenue Per Submission
Slide 12: YTD 2021 Investments Tracking Well Toward Fiscal 2021 Goals
YTD 2021 Investments Tracking Well Toward Fiscal 2021 Goals CC&E investments at high end of expectations YTD Adjusted EBITDA1 FY Projected Adjusted EBITDA1 ($ in millions) ($ in millions) +11 – 22% $300 - 330 $271 -25% $62 $46 YTD 2020 YTD 2021 FY 2020 FY 2021 Margins: 23% 12% 31% ~25% Q1 – Q3 Inves
Slide 13: Key Topics
Key Topics GoHealth – Highlights & Continued Market Leadership Detailed Review of Q221 and YTD21 Results 2021 Outlook 20-Year Track Record of Success 13
Slide 14: Revising Fiscal 2021 Outlook
Revising Fiscal 2021 Outlook CC&E investments create the agent capacity necessary for AEP Net Revenue Adjusted EBITDA1 ($ in millions) $1,200 – 1,300 $300 – 330 +37% to 48% +11% to 22% $271 $877 FY 2020 FY 2021 FY 2020 FY 2021 Strong Compounding Growth 1 See accompanying appendix for a reconciliatio
Slide 15: Best-in-Class Payback Periods
Best-in-Class Payback Periods With upside from Enterprise and Encompass Faster payback period Positioned for future growth and cash flow generation Growth in trailing twelve month net +75% CAS1 cash collections to $239 million 594,124 $113M Cash on hand as of June 30, 2021 265,584 • Untapped credit
Slide 16: Key Topics
Key Topics GoHealth – Highlights & Continued Market Leadership Detailed Review of Q221 and YTD21 Results 2021 Outlook 20-Year Track Record of Success 16
Slide 17: Encompass Platform Aligns Incentives Across Stakeholders
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 Partners
Slide 18: 20+ Year Track Record of Innovation and Execution
20+ Year Track Record of Innovation and Execution Driving consistent industry-leading growth $1,225M Revenue Exponential Growth Providing value- added services to align care delivery Carrier Build-Out partners, carriers Track record of $877M Revenue and members consistent, strong growth CAGR¹: Integ
Slide 19: Appendix A
Appendix A 19
Slide 20: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Adjustments to EBITDA ($ in thousands) Description of Adjustments 2Q 2021 2Q 2020 YTD 2021 YTD 2020 FY 2020 Represents the loss on debt extinguishment related to the 1 Initial Term Loan Facility. Net Loss $(39,175) $(22,867) $(46,443) $(23,804) $(97,20
Slide 21: Reconciliation of Net Income to Adjusted EBITDA Guidance
Reconciliation of Net Income to Adjusted EBITDA Guidance Twelve Months Ended December 31, 2021 Guidance Range ($ in thousands) Low High Net Income $127,665 $157,665 Interest Expense 30,000 30,000 Income Tax Expense 220 220 Depreciation and Amortization Expense 102,000 102,000 EBITDA $259,885 $289,88
Slide 22: Glossary
Glossary “Adjusted EBITDA” represents, as applicable for the period, EBITDA as further adjusted for share-based compensation expense, loss on extinguishment of debt, non-recurring legal fees, change in fair value of contingent consideration liability, IPO transaction costs, and severance costs. “Adj