Slide 1: 4th Quarter Fiscal 2023 Earnings Conference Call Presentation
4th Quarter Fiscal 2023 Earnings Conference Call Presentation September 13, 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: 4Q and FY2023 Earnings Highlights
4Q and FY2023 Earnings Highlights Financial Results SelectQuote delivered consolidated 4Q and FY23 results ahead of consensus estimates and internal expectations 4Q23 4Q22 FY2023 FY2022 $ in millions Sixth consecutive quarter of strong operational and Revenue $221.8 $139.4 $1,002.8 $764.0 retention
Slide 4: SelectQuote Year-in-Review
SelectQuote Year-in-Review Key Actions & Highlights FY23 Actual Results vs. Original Guidance $MM 13% Revenue Adjusted EBITDA* Reduction in year-over-year Approved MA policies 26% Senior division full year Adjusted EBITDA* margin 49k $1,003 $900 $74 SelectRx members as of fiscal year end 6 $(5) Cons
Slide 5: Evolution of SelectRx
Evolution of SelectRx May 2021 May 2021 - Aug. 2023 Fiscal 2024+ Launch Growth Profitability Acquired and integrated two Proved customer demand Guidance implies positive small pharmacies with EBITDA margins in 2024 ~4,500 customers Continued investment to achieve scale Invested to align systems Cont
Slide 6: Power of the SelectQuote Platform
Power of the SelectQuote Platform Information Hub within Healthcare Ecosystem Platform Built to Capitalize Medicare Distribution Platform SelectRx Insurance Healthcare HCS Opportunity N* Carriers Providers HCS Opportunity N+1* Patients *For illustrative purposes only. Not intended to be representati
Slide 7: Cash Efficiency & Long-Term Value Creation
Cash Efficiency & Long-Term Value Creation ADJUSTED EBITDA* CASH EBITDA* $MM $MM $74 $72 $(261) $(252) FY22 FY23 FY22 FY23 % OF SENIOR REVENUE RECEIVED IN FIRST YEAR COMMISSIONS RECEIVABLE $MM $MM 63% 53% $839 $840 FY22 FY23 FY22 FY23 *See "Non-GAAP Financial Measures" section on slide 2 | We shop.
Slide 8: Consolidated Financial Summary
Consolidated Financial Summary REVENUE ADJUSTED EBITDA* $MM $MM 31% 7% YOY Growth 59% Margin % $1,003 $222 $74 $764 $(6) $139 $(61) $(261) 4Q22 4Q23 FY22 FY23 4Q22 4Q23 FY22 FY23 *See "Non-GAAP Financial Measures" section on slide 2 | We shop. You save. 8
Slide 9: SelectQuote Senior KPIs
SelectQuote Senior KPIs TOTAL POLICIES APPROVED MA LTV 000s MA Other MA Other 811 $925 $877 $877 149 $830 648 71 144 29 125 15 662 578 116 110 4Q22 4Q23 FY22 FY23 4Q22 4Q23 FY22 FY23 | We shop. You save. 9
Slide 10: Senior Efficiency Metrics
Senior Efficiency Metrics Operating Expense Marketing Expense Agent Close Rates Per Policy* Per Policy** 4% -2 +2 $1,034 7% -34 $578 % $750 $382 FY22 FY23 FY22 FY23 FY22 FY23 *Represents Senior operating costs divided by approved MA/MS policies. **Represents Senior marketing costs divided by approve
Slide 11: Senior Financial Summary
Senior Financial Summary REVENUE ADJUSTED EBITDA* $MM $MM $590 Margin % 16% 26% $528 $16 $155 $104 $68 $(33) $(162) 4Q22 4Q23 FY22 FY23 4Q22 4Q23 FY22 FY23 *See "Non-GAAP Financial Measures" section on slide 2 | We shop. You save. 11
Slide 12: Healthcare Services KPIs
Healthcare Services KPIs SELECTRX MEMBERS REVENUE & ADJUSTED EBITDA* 55,000 $MM 50,000 176% 45,000 92% 40,000 $83 $71 $55 35,000 $43 $30 30,000 25,000 4Q22 1Q23 2Q23 3Q23 4Q23 20,000 $2 15,000 $(3) 10,000 $(9) $(12) $(12) 5,000 — 4Q22 1Q23 2Q23 3Q23 4Q23 REVENUE ADJUSTED EBITDA* *See "Non-GAAP Finan
Slide 13: Life
Life REVENUE ADJUSTED EBITDA* $MM $MM Margin % 18% 16% $154 $23 $146 $37 $38 $7 $1 $— 4Q22 4Q23 FY22 FY23 4Q22 4Q23 FY22 FY23 *See "Non-GAAP Financial Measures" section on slide 2 | We shop. You save. 13
Slide 14: Auto & Home
Auto & Home REVENUE ADJUSTED EBITDA* $MM $MM Margin % 33% 34% $32 $28 $11 $9 $7 $5 $3 $1 4Q22 4Q23 Pro FY22 FY23 Pro 4Q22 4Q23 Pro FY22 FY23 Pro (1) (1) (2) (2) Forma Forma Forma Forma (1) (2) Excludes the impact of a one-time $10.4 million change in estimated revenue related to Excludes the impact
Slide 15: Fiscal 2024 Full Year Guidance
Fiscal 2024 Full Year Guidance (#039;s in millions) Range Implied YoY Growth Revenue $1,050 - $1,200 5% - 20% Net Loss $(50) - $(22) NM - NM Adjusted EBITDA* $80 - $105 8% - 41% *See "Non-GAAP Financial Measures" section on slide 2 | We shop. You save. 15
Slide 16: Supplemental Information
Supplemental Information | We shop. You save. 16
Slide 17: Net Loss to Adjusted EBITDA Reconciliation
Net Loss to Adjusted EBITDA Reconciliation 4Q FY 2023 Healthcare (in thousands) Senior Services Life Auto & Home Corp & Elims Consolidated Revenue $ 103,592 $ 82,803 $ 38,052 $ (1,266) $ (1,403) $ 221,778 Operating expenses (87,445) (81,118) (31,350) (5,970) (21,715) (227,598) Other income (expense)
Slide 18: Net Loss to Adjusted EBITDA Reconciliation
Net Loss to Adjusted EBITDA Reconciliation FY 2023 Healthcare (in thousands) Senior Services Life Auto & Home Corp & Elims Consolidated Revenue $ 590,131 $ 252,075 $ 145,832 $ 21,862 $ (7,052) $ 1,002,848 Operating expenses (435,054) (274,844) (122,759) (21,782) (73,985) (928,424) Other income (expe
Slide 19: Revenue to Adjusted EBITDA - Auto & Home Change in Estimate
Revenue to Adjusted EBITDA - Auto & Home Change in Estimate 4Q FY2023 Healthcare (in thousands) Senior Services Life Auto & Home Corp & Elims Consolidated Revenue $ 103,592 $ 82,803 $ 38,052 $ (1,266) $ (1,403) $ 221,778 Change in estimate from structured book of business migration for Auto & Home —
Slide 20: Net Loss to Cash EBITDA Reconciliation
Net Loss to Cash EBITDA Reconciliation FY 2023 (in thousands) Consolidated Cash EBITDA $ 72,444 Future Renewal Commission Revenue $ 1,859 Adjusted EBITDA $ 74,303 Share-based compensation expense (11,310) Non-recurring expenses (5,569) Depreciation and amortization (27,881) Loss on disposal of prope
Slide 21: Net Loss to Adjusted EBITDA Reconciliation (FY24 Guidance)
Net Loss to Adjusted EBITDA Reconciliation (FY24 Guidance) (in thousands) Range Net loss $ (50,000) $ (22,000) Income tax benefit $ (18,000) $ (8,000) Interest expense, net $ 102,000 $ 97,000 Depreciation and amortization $ 24,000 $ 22,000 Share-based compensation expense $ 14,000 $ 12,000 Transacti
Slide 22: SelectQuote Inc. Investor Relations Contact
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. 22