Slide 1: 4th Quarter and Fiscal Year End 2021 Earnings Conference Call Presentation
4th Quarter and Fiscal Year End 2021 Earnings Conference Call Presentation August 25, 2021 Exhibit 99.2
Slide 2: Forward-Looking Statements
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 of words or
Slide 3: FY21 Earnings Highlights
FY21 Earnings Highlights 3 SelectQuote generated strong top-line growth for 4th quarter and full-year 2021 driven by continued strength in the Senior business. FY21 Consolidated Revenue totaled $938 million, up 76% year-over-year. FY21 Senior Revenue totaled $729 million, up 101% year-over-year. FY2
Slide 4: Strong Revenue & EBITDA Growth
105 154 228 FY19 FY20 FY21 Strong Revenue & EBITDA Growth 337 532 938 FY19 FY20 FY21 CAGR: 6 7% CAGR: 4 7% Revenue ($MM) Adj. EBITDA* ($MM) 4 *See reconciliations from non-GAAP measure, Adjusted EBITDA, to net income on slides 20-23.
Slide 5: 2021 Year-in-Review
Productive Agent Headcount Revenue \ CAC 2021 Year-in-Review 5 Revenue 76% YoY Growth Adj. EBITDA* 48% YoY Growth Adj. EBITDA* Margin 24% FY21 Actual Consolidated Revenue Adj. EBITDA* 101% YoY Growth 67% YoY Growth 33% FY21 Actual Senior Adj. EBITDA* Margin KPIs 3x 75% YoY Growth MA LTV (2)% YoY *Se
Slide 6: Predicted vs. Actual Cohort Cash Collected
Predicted vs. Actual Cohort Cash Collected 6 39% IRR 32% IRR 25% IRR 23% IRR 22% IRR 45% IRR 41% IRR 39% IRR 28% IRR 24% IRR *Implied IRRs are relative to the entire Senior Segment *Curves are MA curves
Slide 7: FY21 Cohort Annual Percent Variance in Persistency and IRR
7 FY21 Cohort Annual Percent Variance in Persistency IRR Change in Original Renewal Year Revenue 10% 36% 49% 5% 31% 22% 0% 26% 0% -5% 22% -17% -10% 17% -31% Average 10-Year Returns Private Equity 15.5% S&P 500 13.4% Hedge Funds 5.9% Commercial Real Estate 5.9% US Corporate Bonds 5.0% Persistency Imp
Slide 8: Population Health Progress
Population Health Progress 8 Daily Opt-Ins Population Health SelectRx Opt-In Rate HRA Completion Rate Daily Enrollments Opt-In Rate Customers with 8+ Drugs ~1,200 80%+ 85%+ 3x Pre-Acquisition ~70% 75%+
Slide 9: Global Customer Economics
9 Global Customer Economics *Core Policy: Medicare Advantage and Medicare Supplement approved policies *Revenues represented here are Total Senior Division Revenues
Slide 10: SelectQuote – Consolidated Financial Summary
10 SelectQuote – Consolidated Financial Summary 40 21 154 228 Q4 FY20 Q4 FY21 FY 20 FY 21 141 188 532 938 Q4 FY 20 Q4 FY 21 FY 20 FY 21 11% Adj. EBITDA Margin 28% 33% Revenue ($MM) Adj. EBITDA* ($MM) 76 % 24%29% (47)% 48% *See reconciliations from non-GAAP measure, Adjusted EBITDA, to net income on
Slide 11: SelectQuote Senior – KPIs
11 SelectQuote Senior – KPIs 82 117 317 625 54 83 225 468 6 2 18 22 21 32 73 136 MA MS Other 4Q20 4Q21 FY20 FY21 $1,256 $1,121 $1,287 $1,260 4Q20 4Q21 FY20 FY21 Total Policies Approved 000s MA LTV
Slide 12: Projected Cashflow Progression of FY21 Cohort
• Dollars “at risk” beyond renewal 3 only represent 25% of lifetime revenue and have higher and more consistent annual persistency • Between the first year and first 3 renewals, 75% of the lifetime revenue will be collected • Cohort is expected to generate 20%+ IRR Projected Cashflow Progression of
Slide 13: Cohorts Continue to Demonstrate Strong Profitability and Cashflow
• 2018 and 2019 cohorts have already broken even • Each cohort is expected to deliver well in excess of 20% IRR with 2015 – 2016 cohorts already there • Very consistent and predictable progression of cash and IRR Cohorts continue to demonstrate strong profitability and cashflow 13 Updated Cashflow C
Slide 14: SelectQuote – FY2022 Consolidated Guidance
SelectQuote – FY2022 Consolidated Guidance (#039;s in millions) Range Implied YoY Growth Revenue $1,250 - $1,400 33% - 49% Net Income $133 - $156 2% - 19% Adjusted EBITDA* $255 - $285 12% - 25% 14 *See reconciliations from non-GAAP measure, Adjusted EBITDA, to net income on slides 20-23.
Slide 15: FY22 Consolidated Adj. EBITDA Bridge
FY22 Consolidated Adj. EBITDA* Bridge ($ M ) 228 126 (5) (65) 17 0 (31) 270 FY21 ADJ EBITDA Core Senior SelectRx Risk of 4Q22 Tail Adjustment Life Auto & Home Corporate FY22 ADJ EBITDA 0 50 100 150 200 250 300 350 400 15 *See reconciliations from non-GAAP measure, Adjusted EBITDA, to net income on s
Slide 16: 2022 Senior Core Business Remains Strong
2022 Senior Core Business Remains Strong 16 ~60% YoY Growth ~24% YoY Growth ~26% FY22 Forecast 3x $1,160 ~69% YoY Growth ~50% YoY Growth ~30% FY22 Forecast FY22 Senior KPIsCore Operating Performance Revenue Adj. EBITDA* Adj. EBITDA* Margin Revenue Adj. EBITDA* Adj. EBITDA* Margin Revenue \ CAC MA LT
Slide 17: SelectRx Provides Growth and Profitability Potential
SelectRx Provides Growth and Profitability Potential SelectRx expected to yield EBITDA and cash returns in FY23 and beyond SelectRx Ramp 17 ~25k ~$170M FY22 EOP Members ~$370M Lifetime Revenue Q4 Annualized Revenue
Slide 18: Key Investment Takeaways
18 Population Health and SelectRx present an opportunity to expand returns, add significant revenue, Adj. EBITDA, and cashflow and ultimately bolster customer connectivity and persistency in the Senior Business. Population Health is a Game Changer SelectQuote is committed to providing visibility and
Slide 19: Supplemental Information
Supplemental Information 19
Slide 20: FY 2021 and 4Q 2021 Adjusted EBITDA to Net Income Reconciliation
FY 2021 and 4Q 2021 Adjusted EBITDA to Net Income Reconciliation FY 2021 (in thousands) Senior Life Auto & Home Corp & Elims Consolidated Revenue $ 728,701 $ 185,503 $ 30,913 $ (7,302) $ 937,815 Operating expenses (484,924) (155,127) (22,735) (46,899) (709,685) Other expenses, net — — — (100) (100)
Slide 21: FY 2020 and 4Q 2020 Adjusted EBITDA to Net Income Reconciliation
FY 2020 and 4Q 2020 Adjusted EBITDA to Net Income Reconciliation FY 2020 (in thousands) Senior Life Auto & Home Corp & Elims Consolidated Revenue $ 361,673 $ 129,967 $ 41,189 $ (1,314) $ 531,515 Operating expenses (215,935) (102,155) (32,490) (26,881) (377,461) Other expenses, net — — — (30) (30) Ad
Slide 22: FY 2019 and 4Q 2019 Adjusted EBITDA to Net Income Reconciliation
FY 2019 and 4Q 2019 Adjusted EBITDA to Net Income Reconciliation FY 2019 (in thousands) Senior Life Auto & Home Corp & Elims Consolidated Revenue $ 192,257 $ 110,493 $ 35,054 $ (335) $ 337,469 Operating expenses (102,083) (84,672) (27,237) (18,184) (232,176) Other expenses, net — — — (15) (15) Adjus
Slide 23: FY22 Guidance Adjusted EBITDA to Net Income Reconciliation
(in thousands) Range Net Income $ 133,000 $ 156,000 Income tax expense 47,000 54,000 Interest expense, net 37,000 37,000 Depreciation and amortization 20,000 20,000 Non-recurring expenses 5,000 5,000 Share-based compensation expense 13,000 13,000 Adjusted EBITDA $ 255,000 $ 285,000 FY22 Guidance Adj