Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 08, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-39390 | |
Entity Registrant Name | GoHealth, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 85-0563805 | |
Entity Address, Address Line One | 214 West Huron St. | |
Entity Address, City or Town | Chicago, | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60654 | |
City Area Code | 312 | |
Local Phone Number | 386-8200 | |
Title of 12(b) Security | Class A Common Stock,$0.0001 par value per share | |
Trading Symbol | GOCO | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001808220 | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 132,157,355 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 197,128,400 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net revenues: | ||||
Net revenues | $ 158,654 | $ 196,902 | $ 429,247 | $ 401,081 |
Operating expenses: | ||||
Cost of revenue | 51,074 | 37,442 | 118,997 | 85,817 |
Marketing and advertising | 44,714 | 55,735 | 128,747 | 110,219 |
Customer care and enrollment | 66,542 | 61,927 | 144,997 | 109,021 |
Technology | 10,749 | 11,983 | 23,508 | 21,600 |
General and administrative | 38,106 | 25,297 | 67,323 | 44,982 |
Amortization of intangible assets | 23,515 | 23,515 | 47,029 | 47,029 |
Operating lease impairment charges | 24,995 | 0 | 24,995 | 0 |
Total operating expenses | 259,695 | 215,899 | 555,596 | 418,668 |
Income (loss) from operations | (101,041) | (18,997) | (126,349) | (17,587) |
Interest expense | 12,724 | 8,277 | 24,122 | 16,965 |
Loss on extinguishment of debt | 0 | 11,935 | 0 | 11,935 |
Other (income) expense, net | (13) | 44 | 50 | 57 |
Income (loss) before income taxes | (113,752) | (39,253) | (150,521) | (46,544) |
Income tax (benefit) expense | 0 | (32) | 472 | (63) |
Net income (loss) | (113,752) | (39,221) | (150,993) | (46,481) |
Net income (loss) attributable to non-controlling interests | (69,933) | (27,217) | (93,691) | (32,390) |
Net income (loss) attributable to GoHealth, Inc. | $ (43,819) | $ (12,004) | $ (57,302) | $ (14,091) |
Net loss per share (Note 7): | ||||
Net loss per share of Class A common stock — basic (in dollars per share) | $ (0.35) | $ (0.12) | $ (0.48) | $ (0.14) |
Net loss per share of Class A common stock — diluted (in dollars per share) | $ (0.35) | $ (0.12) | $ (0.48) | $ (0.14) |
Weighted-average shares of Class A common stock outstanding — basic (in shares) | 124,440 | 102,300 | 120,346 | 97,349 |
Weighted-average shares of Class A common stock outstanding — diluted (in shares) | 124,440 | 102,300 | 120,346 | 97,349 |
Commission | ||||
Net revenues: | ||||
Net revenues | $ 118,038 | $ 147,508 | $ 327,677 | $ 321,489 |
Enterprise | ||||
Net revenues: | ||||
Net revenues | $ 40,616 | $ 49,394 | $ 101,570 | $ 79,592 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (113,752) | $ (39,221) | $ (150,993) | $ (46,481) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (345) | (106) | (462) | (99) |
Comprehensive income (loss) | (114,097) | (39,327) | (151,455) | (46,580) |
Comprehensive income (loss) attributable to non-controlling interests | (70,145) | (27,291) | (93,978) | (32,459) |
Comprehensive income (loss) attributable to GoHealth, Inc. | $ (43,952) | $ (12,036) | $ (57,477) | $ (14,121) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 76,156 | $ 84,361 |
Accounts receivable, net of allowance for doubtful accounts of $905 in 2022 and $558 in 2021 | 38,250 | 17,276 |
Commissions receivable - current | 198,647 | 268,663 |
Prepaid expense and other current assets | 19,955 | 58,695 |
Total current assets | 333,008 | 428,995 |
Commissions receivable - non-current | 961,999 | 993,844 |
Operating lease ROU asset | 22,987 | 23,462 |
Other long-term assets | 2,437 | 3,608 |
Property, equipment, and capitalized software, net | 29,986 | 24,273 |
Intangible assets, net | 547,640 | 594,669 |
Total assets | 1,898,057 | 2,068,851 |
Current liabilities: | ||
Accounts payable | 14,641 | 39,843 |
Accrued liabilities | 33,234 | 52,788 |
Commissions payable - current | 60,294 | 104,160 |
Short-term operating lease liability | 9,998 | 6,126 |
Deferred revenue | 2,691 | 536 |
Current portion of long-term debt | 5,270 | 5,270 |
Other current liabilities | 15,764 | 8,344 |
Total current liabilities | 141,892 | 217,067 |
Non-current liabilities: | ||
Commissions payable - non-current | 291,990 | 274,403 |
Long-term operating lease liability | 40,947 | 19,776 |
Long-term debt, net of current portion | 662,018 | 665,115 |
Other non-current liabilities | 2,889 | 0 |
Total non-current liabilities | 997,844 | 959,294 |
Commitments and Contingencies (Note 11) | ||
Stockholders’ equity: | ||
Preferred stock – $0.0001 par value; 20,000 shares authorized; no shares issued and outstanding at June 30, 2022 and December 31, 2021. | 0 | 0 |
Additional paid-in capital | 612,627 | 561,447 |
Accumulated other comprehensive income (loss) | (234) | (59) |
Accumulated deficit | (265,619) | (208,317) |
Total stockholders’ equity attributable to GoHealth, Inc. | 346,463 | 353,103 |
Non-controlling interests | 411,858 | 539,387 |
Total stockholders’ equity | 758,321 | 892,490 |
Total liabilities and stockholders’ equity | 1,898,057 | 2,068,851 |
Class A Common Stock | ||
Stockholders’ equity: | ||
Common stock | 13 | 11 |
Treasury stock – at cost; 189 shares of Class A common stock at June 30, 2022 | (344) | 0 |
Class B common stock | ||
Stockholders’ equity: | ||
Common stock | $ 20 | $ 21 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Allowance for doubtful accounts | $ 905 | $ 558 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 1,100,000,000 | 1,100,000,000 |
Common stock, shares issued (in shares) | 131,965,000 | 115,487,000 |
Common stock, shares outstanding (in shares) | 131,776,000 | 115,487,000 |
Treasury stock, at cost (in shares) | 189,000 | |
Class B common stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 579,555,000 | 587,360,000 |
Common stock, shares issued (in shares) | 197,547,000 | 205,352,000 |
Common stock, shares outstanding (in shares) | 197,547,000 | 205,352,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Class A Common Stock | Class B Common Stock | Common Stock Class A Common Stock | Common Stock Class B Common Stock | Treasury Stock Class A Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Non-Controlling Interest | Non-Controlling Interest Cumulative Effect, Period of Adoption, Adjustment |
Beginning balance (in shares) at Dec. 31, 2020 | 84,196 | 236,997 | |||||||||||
Beginning balance at Dec. 31, 2020 | $ 1,399,155 | $ 8 | $ 24 | $ 399,169 | $ (18,802) | $ 17 | $ 1,018,739 | ||||||
Beginning balance (Cumulative impact of Topic 842) at Dec. 31, 2020 | $ (63) | $ (17) | $ (46) | ||||||||||
Beginning balance (Cumulative impact of Topic 326) at Dec. 31, 2020 | $ (539) | $ (141) | $ (398) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | (46,481) | (14,091) | (32,390) | ||||||||||
Issuance of Class A common shares related to share-based compensation plans (in shares) | 74 | ||||||||||||
Issuance of Class A common shares related to share-based compensation plans | 476 | 476 | |||||||||||
Share-based compensation expense | 12,711 | 12,711 | |||||||||||
Foreign currency translation adjustment | (99) | (30) | (69) | ||||||||||
Forfeitures of Time-Vesting Units (in shares) | (454) | ||||||||||||
Forfeitures of Time-Vesting Units | 0 | ||||||||||||
Redemption of LLC Interests (in shares) | 21,048 | (21,048) | |||||||||||
Redemption of LLC Interests | 0 | $ 2 | $ (2) | 91,333 | (91,333) | ||||||||
Ending balance (in shares) at Jun. 30, 2021 | 105,318 | 215,495 | |||||||||||
Ending balance at Jun. 30, 2021 | 1,365,160 | $ 10 | $ 22 | 503,689 | (33,051) | (13) | 894,503 | ||||||
Beginning balance (in shares) at Mar. 31, 2021 | 98,518 | 222,606 | |||||||||||
Beginning balance at Mar. 31, 2021 | 1,396,412 | $ 10 | $ 22 | 465,936 | (21,047) | 19 | 951,472 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | (39,221) | (12,004) | (27,217) | ||||||||||
Issuance of Class A common shares related to share-based compensation plans (in shares) | 62 | ||||||||||||
Issuance of Class A common shares related to share-based compensation plans | 476 | 476 | |||||||||||
Share-based compensation expense | 7,599 | 7,599 | |||||||||||
Foreign currency translation adjustment | (106) | (32) | (74) | ||||||||||
Forfeitures of Time-Vesting Units (in shares) | (373) | ||||||||||||
Forfeitures of Time-Vesting Units | 0 | ||||||||||||
Redemption of LLC Interests (in shares) | 6,738 | (6,738) | |||||||||||
Redemption of LLC Interests | 0 | $ 0 | $ 0 | 29,678 | (29,678) | ||||||||
Ending balance (in shares) at Jun. 30, 2021 | 105,318 | 215,495 | |||||||||||
Ending balance at Jun. 30, 2021 | 1,365,160 | $ 10 | $ 22 | 503,689 | (33,051) | (13) | 894,503 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Beginning balance (in shares) | 0 | ||||||||||||
Beginning balance (in shares) at Dec. 31, 2021 | 115,487 | 205,352 | 115,487 | 205,352 | |||||||||
Beginning balance at Dec. 31, 2021 | 892,490 | $ 11 | $ 21 | $ 0 | 561,447 | (208,317) | (59) | 539,387 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | (150,993) | (57,302) | (93,691) | ||||||||||
Issuance of Class A common shares related to share-based compensation plans (in shares) | 8,940 | ||||||||||||
Issuance of Class A common shares related to share-based compensation plans | 337 | $ 1 | 336 | ||||||||||
Share-based compensation expense | 17,293 | 17,293 | |||||||||||
Foreign currency translation adjustment | (462) | (175) | (287) | ||||||||||
Class A common shares repurchased for employee tax withholdings (in shares) | (189) | ||||||||||||
Class A common shares repurchased for employee tax withholdings | (344) | $ (344) | |||||||||||
Forfeitures of Time-Vesting Units (in shares) | (267) | ||||||||||||
Forfeitures of Time-Vesting Units | 0 | ||||||||||||
Redemption of LLC Interests (in shares) | 7,538 | (7,538) | |||||||||||
Redemption of LLC Interests | 0 | $ 1 | $ (1) | 33,551 | (33,551) | ||||||||
Ending balance (in shares) at Jun. 30, 2022 | 131,776 | 197,547 | 131,965 | 197,547 | |||||||||
Ending balance at Jun. 30, 2022 | 758,321 | $ 13 | $ 20 | $ (344) | 612,627 | (265,619) | (234) | 411,858 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Beginning balance (in shares) | (169) | ||||||||||||
Beginning balance (in shares) at Mar. 31, 2022 | 121,944 | 199,338 | |||||||||||
Beginning balance at Mar. 31, 2022 | 859,958 | $ 12 | $ 20 | $ (329) | 583,323 | (221,800) | (101) | 498,833 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | (113,752) | (43,819) | (69,933) | ||||||||||
Issuance of Class A common shares related to share-based compensation plans (in shares) | 8,427 | ||||||||||||
Issuance of Class A common shares related to share-based compensation plans | 337 | $ 1 | 336 | ||||||||||
Share-based compensation expense | 12,138 | 12,138 | |||||||||||
Foreign currency translation adjustment | (345) | (133) | (212) | ||||||||||
Class A common shares repurchased for employee tax withholdings (in shares) | (20) | ||||||||||||
Class A common shares repurchased for employee tax withholdings | (15) | $ (15) | |||||||||||
Forfeitures of Time-Vesting Units (in shares) | (197) | ||||||||||||
Forfeitures of Time-Vesting Units | 0 | ||||||||||||
Redemption of LLC Interests (in shares) | 1,594 | (1,594) | |||||||||||
Redemption of LLC Interests | 0 | $ 0 | $ 0 | 16,830 | (16,830) | ||||||||
Ending balance (in shares) at Jun. 30, 2022 | 131,776 | 197,547 | 131,965 | 197,547 | |||||||||
Ending balance at Jun. 30, 2022 | $ 758,321 | $ 13 | $ 20 | $ (344) | $ 612,627 | $ (265,619) | $ (234) | $ 411,858 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Beginning balance (in shares) | (189) | (189) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Operating Activities | ||
Net income (loss) | $ (150,993) | $ (46,481) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Share-based compensation | 17,293 | 12,711 |
Depreciation and amortization | 5,330 | 4,076 |
Amortization of intangible assets | 47,029 | 47,029 |
Amortization of debt discount and issuance costs | 1,381 | 1,262 |
Loss on extinguishment of debt | 0 | 11,935 |
Operating lease impairment charges | 24,995 | 0 |
Non-cash lease expense | 2,862 | 2,451 |
Other non-cash items | 29 | (846) |
Changes in assets and liabilities: | ||
Accounts receivable | (21,119) | (2,702) |
Commissions receivable | 101,928 | (63,675) |
Prepaid expenses and other assets | 39,795 | (11,778) |
Accounts payable | (25,885) | 6,114 |
Accrued liabilities | (19,898) | 3,993 |
Deferred revenue | 2,155 | (36) |
Commissions payable | (26,279) | 4,742 |
Operating lease liabilities | (2,993) | (2,406) |
Other liabilities | 10,747 | 1,361 |
Net cash provided by (used in) operating activities | 6,377 | (32,250) |
Investing Activities | ||
Purchases of property, equipment and software | (9,658) | (7,909) |
Net cash used in investing activities | (9,658) | (7,909) |
Financing Activities | ||
Proceeds from borrowings | 0 | 310,000 |
Repayment of borrowings | (2,635) | (296,835) |
Call premium paid for debt extinguishment | 0 | (5,910) |
Debt issuance cost payments | (1,725) | (1,608) |
Principal payments under finance lease obligations | (103) | (154) |
Cash received on advancement to NVX Holdings, Inc. | 0 | 3,395 |
Net cash (used in) provided by financing activities | (4,463) | 8,888 |
Effect of exchange rate changes on cash and cash equivalents | (461) | (100) |
Increase (decrease) in cash and cash equivalents | (8,205) | (31,371) |
Cash and cash equivalents at beginning of period | 84,361 | 144,234 |
Cash and cash equivalents at end of period | 76,156 | 112,863 |
Non-cash investing and financing activities: | ||
Purchases of property, equipment and software included in accounts payable | $ 683 | $ 2,233 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Description of Business and Significant Accounting Policies | DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES Description of Business GoHealth, Inc. (the “Company”) is a leading health insurance marketplace and Medicare-focused digital health company whose mission is to improve access to healthcare in America. The Company works with insurance carriers to provide solutions to efficiently enroll individuals in health insurance plans. The Company’s proprietary technology platform leverages modern machine-learning algorithms powered by nearly two decades of insurance purchasing behavior to reimagine the optimal process for helping individuals find the best health insurance plan for their specific needs. The Company’s insurance agents leverage the power of its vertically integrated customer acquisition platform to enroll members in Medicare and individual and family plans. Certain of the Company’s operations do business as GoHealth, LLC (“GoHealth”), a wholly owned subsidiary of the Company that was founded in 2001. The Company was incorporated in Delaware on March 27, 2020 for the purpose of facilitating the Company’s initial public offering (the “IPO”) and other related transactions in order to carry on the business of GoHealth Holdings, LLC (formerly known as Blizzard Parent, LLC), a Delaware limited liability company, and its wholly owned subsidiaries (collectively, "GHH, LLC"). Following the IPO and pursuant to a reorganization into a holding company structure, the Company is a holding company and its principal asset is a controlling equity interest in GHH, LLC. As the sole managing member of GHH, LLC, the Company operates and controls all of the business and affairs of GHH, LLC, and through GHH, LLC and its subsidiaries, conducts its business. Basis of Presentation and Significant Accounting Policies In connection with the IPO (as defined below), the Company became the sole managing member of GHH, LLC and controls the management of GHH, LLC. As a result, the Company consolidates GHH, LLC’s financial results in its Condensed Consolidated Financial Statements and reports a non-controlling interest for the economic interest in GHH, LLC held by the Continuing Equity Owners. Substantially concurrently with the consummation of the IPO, the existing limited liability company agreement of GHH, LLC was amended and restated to, among other things, recapitalize its capital structure by creating a single new class of units (the “common units”) and provide for a right of redemption of common units (subject in certain circumstances to time-based vesting requirements and certain other restrictions) in exchange for, at the Company’s election, cash or newly-issued shares of Class A common stock on a one-for-one basis. In connection with any redemption, the Company will receive a corresponding number of common units, increasing the Company’s total ownership interest in GHH, LLC. Net income and loss is allocated to the Continuing Equity Owners on a pro-rata basis, assuming that any Class B common units that are subject to time-based vesting requirements are fully vested. GHH, LLC is a holding company with no operating assets or operations and was formed to acquire a 100% equity interest in Norvax. On May 6, 2020, Blizzard Parent, LLC changed its name to “GoHealth Holdings, LLC”. GHH, LLC owns 100% of Blizzard Midco, LLC, which owns 100% of Norvax. For all of the periods reported in these Condensed Consolidated Financial Statements, GHH, LLC has not and does not have any material operations on a standalone basis, and all of the operations of GHH, LLC are carried out by Norvax. The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information, but do not include all information and footnote disclosures required under GAAP for annual financial statements. In the opinion of management, the interim Condensed Consolidated Financial Statements include all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the Company’s financial position, results of operations and cash flows as of the dates and for the periods presented. All intercompany transactions and balances are eliminated in consolidation. Certain prior period amounts have been reclassified to conform with the current period presentation. Effective on December 31, 2021, we lost our emerging growth company ("EGC") status, which accelerated the adoption of Accounting Standards Update (“ASU”) 2016-02, Leases and ASU 2019-11, Financial Instruments – Credit Losses . As a result, we recast our previously reported consolidated financial statements effective January 1, 2021 to reflect the adoption of these standards. Use of Estimates The preparation of the Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities at the date of the Condensed Consolidated Financial Statements, and the reported amounts of revenues and expenses during the reporting periods. The Company bases its estimates on historical experience and on various other assumptions that management believes are reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. There have been no material changes to the Company’s significant accounting policies as discussed in the notes to the Company’s audited consolidated financial statements as of and for the year ended December 31, 2021. Seasonality A greater number of the Company’s Medicare-related health insurance plans are sold in its fourth quarter during the Medicare annual enrollment period when Medicare-eligible individuals are permitted to change their Medicare Advantage and Medicare Part D prescription drug coverage for the following year. As a result, the Company’s Medicare plan-related commission revenue is typically highest in the Company’s fourth quarter. The majority of the Company’s individual and family health insurance plans are sold in its fourth quarter during the annual open enrollment period as defined under the federal Patient Protection and ACA and related amendments in the Health Care and Education Reconciliation Act. Individuals and families generally are not able to purchase individual and family health insurance outside of the open enrollment period, unless they qualify for a special enrollment period as a result of certain qualifying events, such as losing employer-sponsored health insurance or moving to another state. As a result, the Company’s individual and family plan-related commission revenue is typically highest in the Company’s fourth quarter. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). The guidance specifies that lessees will need to recognize a right-of-use asset and a lease liability for virtually all their leases except those which meet the definition of a short-term lease. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or financing. Classification will be based on criteria that are similar to those applied in current lease accounting, but without explicit bright lines. The Company adopted the new guidance effective January 1, 2021. The Company elected the optional transition method which allows entities to continue to apply historical accounting guidance in the comparative periods presented in the year of adoption. At transition, lessees and lessors may elect to apply a package of practical expedients permitting entities not to reassess: (i) whether any expired or existing contracts are or contain leases; (ii) lease classification for any expired or existing leases and (iii) whether initial direct costs for any expired or existing leases qualify for capitalization under the amended guidance. These practical expedients must be elected as a package and consistently applied. The Company applied the package of practical expedients upon adoption. As a result of adopting this standard, on January 1, 2021, the Company recorded lease liabilities of $29.3 million, right-of-use assets of $28.0 million, and an immaterial cumulative catch-up adjustment to opening equity. The adoption of this new standard did not have a material impact on the Company’s consolidated statements of operations, comprehensive income (loss), or cash flows. The Company has included expanded disclosures on the condensed consolidated balance sheets and in Note 10 to the Condensed Consolidated Financial Statements. In November 2019, the FASB issued ASU 2019-11, Financial Instruments – Credit Losses |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Company defines fair value as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques the Company uses to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The Company classifies the inputs used to measure fair value into the following hierarchy: Level 1 Inputs Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 Inputs Unadjusted quoted prices in active markets for similar assets or liabilities; unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability. Level 3 Inputs Unobservable inputs for the asset or liability. Fair Value Measurements The carrying amount of certain financial instruments, including cash and cash equivalents, accounts receivable, unbilled receivables, accounts payable, and accrued expenses approximate fair value due to the short maturity of these instruments. The carrying value of debt approximates fair value due to the variable nature of interest rates. As part of the Company’s continued cost savings initiatives, the Company is actively looking to terminate or sublease certain office spaces and call centers. These actions resulted in a $25.0 million operating lease impairment charge for the three and six months ended June 30, 2022, reducing the carrying value of the associated ROU assets and leasehold improvements to the estimated fair values. The fair value was estimated using a discounted cash flows approach on forecasted future cash flows expected to be derived from the property based on current sublease market rent, which is considered a level 3 input in the fair value hierarchy. A 5% increase or decrease to the market rent per square foot input would increase or decrease the estimated fair value and resulting impairment charge by approximately $1.0 million. |
Goodwill And Intangible Assets,
Goodwill And Intangible Assets, Net | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | GOODWILL AND INTANGIBLE ASSETS, NET Goodwill During 2019, the Company allocated $380.3 million and $6.2 million of the goodwill recognized in connection with the Acquisition to its Medicare—Internal segment and Medicare—External segment, respectively, based on an estimate of the relative fair value of each reportable segment. The Company tests goodwill for impairment at the reporting unit level annually on November 30th and whenever events or circumstances make it more likely than not that an impairment may have occurred. A reporting unit is an operating segment or one level below an operating segment to which goodwill is assigned when initially recorded. The Company has four reporting units, which are the same as its four operating segments. Fourth Quarter 2021 Goodwill Impairment Charges During the annual enrollment period in the fourth quarter of 2021, the Company and the broader industry experienced an increase in consumer shopping which led to lower policy persistency than anticipated and resulted in lower LTV performance. Additionally, operating margins in the fourth quarter of 2021 declined significantly, which was primarily driven by tight labor markets and resulted in higher than expected customer care and enrollment costs. As such and in connection with the Company’s annual and long-range planning process, which coincided with the Company’s annual goodwill impairment test as of November 30, 2021, the Company determined the Medicare— Internal and Medicare— External reporting units’ financial performance were lower than previously anticipated. As a result, the Company’s quantitative goodwill impairment test indicated that the fair values of the Medicare— Internal and Medicare— External reporting units no longer exceeded their carrying values, and the Company recognized goodwill impairment charges of $380.3 million and $6.2 million for the Medicare-Internal and Medicare— External reporting units, respectively, representing the full amount of goodwill associated with these reporting units. The quantitative goodwill impairment test performed by the Company as of November 30, 2021, included significant level 3 fair value estimates and assumptions including, among others, cash flow projections and selecting an appropriate discount rate. Intangible Assets The gross carrying amounts, accumulated amortization and net carrying amounts of the Company’s definite-lived amortizable intangible assets, as well as its indefinite-lived intangible trade names, are as follows: Jun. 30, 2022 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 496,000 $ 198,400 $ 297,600 Customer relationships 232,000 64,960 167,040 Total intangible assets subject to amortization $ 728,000 $ 263,360 $ 464,640 Indefinite-lived trade names 83,000 Total intangible assets $ 547,640 Dec. 31, 2021 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 496,000 $ 162,971 $ 333,029 Customer relationships 232,000 53,360 178,640 Total intangible assets subject to amortization $ 728,000 $ 216,331 $ 511,669 Indefinite-lived trade names 83,000 Total intangible assets $ 594,669 There was no impairment of intangible assets for the three and six months ended June 30, 2022 and 2021. As of June 30, 2022, expected amortization expense related to intangible assets for each of the five succeeding years is as follows: (in thousands) Developed Technology Customer Relationships Total Remainder of 2022 $ 35,429 $ 11,600 $ 47,029 2023 70,857 23,200 94,057 2024 70,857 23,200 94,057 2025 70,857 23,200 94,057 2026 49,600 23,200 72,800 Thereafter — 62,640 62,640 Total $ 297,600 $ 167,040 $ 464,640 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT The Company’s long-term debt consisted of the following: (in thousands) Jun. 30, 2022 Dec. 31, 2021 Term Loan Facilities $ 520,768 $ 523,403 Revolving Credit Facilities 155,000 155,000 Less: Unamortized debt discount and issuance costs (8,480) (8,018) Total debt $ 667,288 $ 670,385 Less: Current portion of long-term debt (5,270) (5,270) Total long-term debt $ 662,018 $ 665,115 Term Loan Facilities On September 13, 2019, Norvax (the “Borrower”) entered into a first lien credit agreement (the “Credit Agreement”) which provided for a $300.0 million aggregate principal amount senior secured term loan facility (the “Initial Term Loan Facility”). During 2020, the Company entered into a series of amendments to the Credit Agreement to provide for, among other items as further described below, $117.0 million of incremental term loans (the “Incremental Term Loan Facility”). On June 11, 2021, the Company entered into Amendment No. 5 to the Credit Agreement and Incremental Facility Agreement (“Amendment No. 5”). Amendment No. 5 created a new class of incremental term loans (the “2021 Incremental Term Loans”) in an aggregate principal amount equal to $310.0 million, which was used to refinance $295.5 million of outstanding principal under the Initial Term Loan Facility, pay the related accrued interest and fund the prepayment premium. In connection with Amendment No. 5 and the refinancing of the Initial Term Loan, the Company recognized an $11.9 million loss on debt extinguishment, representing the 2% prepayment premium of $5.9 million and the write-down of deferred financing costs and debt discounts of $6.0 million. The Company incurred $1.7 million of debt issuance costs associated with Amendment No. 5, which are being amortized over the life of the debt to interest expense using the effective interest method. On November 10, 2021, the Company entered into Amendment No. 6 to the Credit Agreement and Incremental Facility Agreement (“Amendment No. 6”). Amendment No. 6 provided $100.0 million of incremental term loans (the “2021-2 Incremental Term Loans”). The Company incurred $2.5 million of debt issuance costs associated with Amendment No. 6, which are being amortized over the life of the debt to interest expense using the effective interest method. The Company collectively refers to the Initial Term Loan, Incremental Term Loan Facility, the 2021 Incremental Term Loans, and the 2021-2 Incremental Term Loans as the “Term Loan Facilities”. As of June 30, 2022, the Company had a principal amount of $114.4 million, $306.9 million, and $99.5 million outstanding under the Incremental Term Loan Facility, the 2021 Incremental Term Loans, and the 2021-2 Incremental Term Loans, respectively. As of December 31, 2021, the Company had a principal amount of $115.0 million $308.4 million, and $100.0 million outstanding under the Incremental Term Loan Facility, the 2021 Incremental Term Loans, and the 2021-2 Incremental Term Loans, respectively. The Incremental Term Loan Facility effective interest rate was 7.5% at both June 30, 2022 and December 31, 2021. The 2021 Incremental Term Loan and the 2021-2 Incremental Term Loan effective interest rates were 7.5% and 7.7% at June 30, 2022, respectively. Both the 2021 Incremental Term Loan and the 2021-2 Incremental Term Loan effective interest rate was 6.0% at December 31, 2021. Borrowings under the Incremental Term Loan Facility are, at the option of the Borrower, either (i) alternate base rate (“ABR”) plus 5.50% per annum or (ii) LIBOR plus 6.50% per annum. The 2021 Incremental Term Loans from and after the 2021-2 Incremental Term Loans Closing Date, or November 10, 2021, and the 2021-2 Incremental Term Loans, bear interest at either (i) ABR plus 4.00% per annum or (ii) LIBOR plus 5.00% per annum. On March 14, 2022, the Company entered into Amendment No. 7 to the Credit Agreement and Incremental Facility Agreement (“Amendment No. 7”). Amendment No. 7 provided that (a) the 2021 Incremental Term Loans, from and after the Amendment No. 7 Effective Date, will bear interest at either (i) ABR plus 5.50% per annum or (ii) LIBOR plus 6.50% per annum and (b) the 2021-2 Incremental Term Loans, from and after the Amendment No. 7 Effective Date, will bear interest at either (i) ABR plus 5.50% per annum or (ii) LIBOR plus 6.50% per annum. Amendment No. 7 further amended the Credit Agreement to remove testing of the Net Leverage Ratio for the December 31, 2021 period and increased the maximum permitted Net Leverage Ratio for future reporting periods through March 31, 2023. The Company incurred $1.7 million of debt issuance costs associated with Amendment No. 7, which are being amortized over the life of the debt to interest expense using the effective interest method. On August 12, 2022, the Company entered into Amendment No. 8 to the Credit Agreement and Incremental Facility Agreement (“Amendment No. 8”). Amendment No. 8 provided that (a) the 2021 Incremental Term Loans, from and after the Amendment No. 8 Effective Date, will bear interest at either (i) ABR plus 6.50% per annum or (ii) LIBOR plus 7.50% per annum and (b) the 2021-2 Incremental Term Loans, from and after the Amendment No. 8 Effective Date, will bear interest at either (i) ABR plus 6.50% per annum or (ii) LIBOR plus 7.50% per annum. Amendment No. 8 further amended the Credit Agreement to increase the maximum permitted Net Leverage Ratio for future reporting periods from December 31, 2022 through June 30, 2023. The Term Loan Facilities are payable in quarterly installments in the principal amount of 0.25% of the original principal amount. The remaining unpaid balance on the Term Loan Facilities, together with all accrued and unpaid interest thereon, is due and payable on or prior to September 13, 2025. Revolving Credit Facilities The Credit Agreement provided for a $30.0 million aggregate principal amount senior secured revolving credit facility (the “Revolving Credit Facility”). During 2020, the Company entered into a series of amendments to the Credit Agreement to provide for $28.0 million of incremental revolving credit (the “Incremental Revolving Credit Facilities”). On May 7, 2021, the Company entered into a fourth amendment to the Credit Agreement, which provided $142.0 million of incremental revolving credit (the “Incremental No. 4 Revolving Credit Facility”), for a total amount of $200.0 million. The Company collectively refers to the Revolving Credit Facility, the Incremental Revolving Credit Facilities, and the Incremental No. 4 Revolving Credit Facility as the “Revolving Credit Facilities”. Amendment No. 5, as described above, also separated the Revolving Credit Facilities into two classes of revolving commitments consisting of Class A Revolving Commitments in the amount of $30.0 million and Class B Revolving Commitments in the amount of $170.0 million. Borrowings under the Class A Revolving Commitments bear interest at either ABR plus 5.50% per annum or LIBOR plus 6.50% per annum. Borrowings under the Class B Revolving Commitments bear interest at either ABR plus 3.00% per annum or LIBOR plus 4.00% per annum. The Borrower is required to pay a commitment fee of 0.50% per annum under the Revolving Credit Facilities. The Company had $23.2 million outstanding under the Class A Revolving Credit Facilities and $131.8 million outstanding under the Class B Revolving Credit Facilities as of both June 30, 2022 and December 31, 2021. The Revolving Credit Facilities have a remaining capacity of $45.0 million in the aggregate as of June 30, 2022. The Class A Revolving Credit Facilities and Class B Revolving Credit Facilities weighted-average effective interest rates were 8.1% and 5.6% at June 30, 2022, respectively, and 7.5% and 5.0% at December 31, 2021, respectively. Outstanding borrowings under the Revolving Credit Facilities do not amortize and are due and payable on September 13, 2024. |
Stockholders' Equity and Member
Stockholders' Equity and Members' Equity | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Stockholders' Equity and Members' Equity | STOCKHOLDERS' EQUITY AND MEMBERS' EQUITY In connection with the Company’s IPO in July 2020, the Company’s board of directors (the “Board of Directors”) approved an amended and restated certificate of incorporation and amended and restated bylaws. The amended and restated certificate of incorporation authorizes the issuance of up to 1,100,000 shares of Class A common stock, 690,000 shares of Class B common stock and 20,000 shares of preferred stock, each having a par value of $0.0001 per share. The number of shares of Class B common stock authorized is reduced for redemptions and forfeitures as they occur. The Company’s amended and restated certificate of incorporation and the GoHealth Holdings, LLC Agreement require that the Company and GoHealth Holdings, LLC at all times maintain a one-to-one ratio between the number of shares of Class A common stock issued by the Company and the number of LLC Interests owned by the Company, except as otherwise determined by the Company. Additionally, the Company’s amended and restated certificate of incorporation and the GoHealth Holdings, LLC Agreement require that the Company and GoHealth Holdings, LLC at all times maintain a one-to-one ratio between the number of shares of Class B common stock owned by the Continuing Equity Owners and their respective permitted transferees and the number of LLC Interests owned by the Continuing Equity Owners and their respective permitted transferees, except as otherwise determined by the Company. Only the Continuing Equity Owners and the permitted transferees of Class B common stock are permitted to hold shares of Class B common stock. Shares of Class B common stock are transferable for shares of Class A common stock only together with an equal number of LLC Interests. Holders of shares of the Company’s Class A common stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders. Each share of Class B common stock entitles its holders to one vote per share on all matters presented to the Company’s stockholders generally. Holders of shares of Class B common stock will vote together with holders of the Company’s Class A common stock as a single class on all matters presented to the Company’s stockholders for their vote or approval, except for certain amendments to the Company’s amended and restated certificate of incorporation or as otherwise required by applicable law or the amended and restated certificate of incorporation. Holders of our Class B common stock are not entitled to participate in any dividends declared by our Board of Directors. Under the terms of the Company’s amended and restated certificate of incorporation, the Company’s Board of Directors is authorized to direct the Company to issue shares of preferred stock in one or more series without stockholder approval. The Company’s Board of Directors has the discretion to determine the rights, preferences, privileges and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences, of each series of preferred stock. The Continuing Equity Owners may, subject to certain exceptions, from time to time at each of their options require GoHealth Holdings, LLC to redeem all or a portion of their LLC Interests in exchange for, at the Company’s election (determined by at least two of the Company’s independent directors who are disinterested), newly-issued shares of Class A common stock on a one-for-one basis, or to the extent there is cash available from a secondary offering, a cash payment equal to a volume weighted average market price of one share of the Company’s Class A common stock for each LLC Interest so redeemed, in each case, in accordance with the terms of the GoHealth Holdings, LLC Agreement. The weighted average ownership percentages for the applicable reporting periods are used to attribute net income (loss) and other comprehensive income (loss) to the Company and the non-controlling interest holders. The non-controlling interest holders' weighted average ownership percentages for the three and six months ended June 30, 2022 were 61.5% and 62.6%, respectively. The non-controlling interest holders' weighted average ownership percentages for the three and six months ended June 30, 2021 were 68.1% and 69.7%, respectively. Upon the Company’s dissolution or liquidation, after payment in full of all amounts required to be paid to creditors and to the holders of preferred stock having liquidation preferences, if any, holders of Class A common stock and Class B common stock will be entitled to receive ratable portions of the Company’s remaining assets available for distribution; provided, that the holders of Class B common stock shall not be entitled to receive more than $0.0001 per share of Class B common stock and upon receiving such amount, shall not be entitled to receive any of the Company’s other assets or funds with respect to such shares of Class B common stock. |
Share-Based Compensation Plans
Share-Based Compensation Plans | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation Plans | SHARE-BASED COMPENSATION PLANSThe following table summarizes share-based compensation expense by operating function for the periods presented: Three months ended Jun. 30, Six months ended Jun. 30, (in thousands) 2022 2021 2022 2021 Marketing and advertising $ 215 $ 426 $ 656 $ 764 Customer care and enrollment 624 1,043 1,255 1,839 Technology 627 1,133 1,609 1,880 General and administrative 12,791 4,997 15,892 8,228 Total share-based compensation expense $ 14,257 $ 7,599 $ 19,412 $ 12,711 2021 Employment Inducement Award Plan On December 19, 2021, the Board of Directors approved the adoption of the GoHealth, Inc. 2021 Employment Inducement Award Plan (as amended from time to time, the “Inducement Award Plan”). In accordance with Rule 5635(c)(4), awards under the Inducement Award Plan may only be made to a newly hired employee who has not previously been a member of the Board of Directors, or an employee who is being rehired following a bona fide period of non-employment by the Company or a subsidiary, as a material inducement to the employee’s entering into employment with the Company or its subsidiary. On June 3, 2022, the Company approved an amendment to the Inducement Award Plan, solely to increase the shares of the Company’s Class A common stock reserved for issuance from an aggregate of 4,000 Class A shares to an aggregate of 25,000 Class A shares. Restricted Stock Units (“RSUs”) On June 7, 2022, the Company granted, to certain of its executives, an aggregate of 7,667 shares of Class A common stock issuable pursuant to RSUs, all of which were fully vested on the date of grant. The Company recognized the grant-date fair value of these RSUs, or $6.3 million, as compensation expense on the date of grant. Performance Stock Units (“PSUs”) On June 7, 2022, the Company granted, to certain of its executives, an aggregate of 2,917 shares of Class A common stock issuable pursuant to volume weighted average PSUs (“VWAPs”). The number of shares issued on the third anniversary of the date of grant is based on volume weighted average price performance over such three year period (“Three Year VWAP”) in the following percentages: (i) 50% if the Three Year VWAP is equal to or greater than $2.00 but less than $3.00; (ii) 100% if the Three Year VWAP is equal to or greater than $3.00 but less than $4.00; (iii) 150% if the Three Year VWAP is equal to or greater than $4.00 but less than $6.00; and (iv) 200% if the Three Year VWAP is equal to or greater than $6.00. The Company estimated the grant-date fair value of the awards subject to a market condition using a Monte Carlo simulation model, using the following weighted-average assumptions: risk-free interest rate of 2.9% and annualized volatility of 94.0%. The grant-date fair value of the VWAPs was $0.55. The Company recognizes the grant-date fair value of VWAPs as compensation expense on a straight-line basis over the three-year performance period. During 2021, the Company granted to certain of its employees 489 shares of Class A common stock issuable pursuant to PSUs. The criteria for the market-based PSUs is based on the Company’s total shareholder return (“TSR”) relative to the TSR of the common stock of a pre-defined industry peer group. TSR is measured at the end of the performance period, which is generally the period commencing on the grant date and ending on the three-year anniversary of the grant date. Depending on the relative TSR achieved, the number of PSUs earned can vary from 0% of the target award to a maximum of 200% of the target award. The Company estimated the grant-date fair value of the awards subject to a market condition using a Monte Carlo simulation model, using the following weighted-average assumptions: risk-free interest rate of 0.2% and annualized volatility of 72.0%. The grant-date fair value of the PSUs was $22.17. The Company recognizes the grant-date fair value of PSUs as compensation expense on a straight-line basis over the three-year performance period. For the three and six months ended June 30, 2022, the Company recorded share-based compensation expense related to PSUs of $0.2 million and $1.0 million, respectively. For the three and six months ended June 30, 2021, the Company recorded share-based compensation expense related to PSUs of $0.9 million and $1.4 million, respectively. 2020 Employee Stock Purchase Plan On July 7, 2020, the Company adopted the 2020 Employee Stock Purchase Plan (“2020 ESPP”), which became effective on the same date. The purpose of the 2020 ESPP is to provide the Company's eligible employees with an opportunity to purchase designated shares of the Company’s Class A common stock at a price equal to 85% of the lower of the closing price at the beginning or end of each offering period. During the three and six months ended June 30, 2022, the Company issued 662 shares of Class A common stock through the 2020 ESPP. During the three and six months ended June 30, 2021, the Company issued 50 shares of Class A common stock through the 2020 ESPP. For the three and six months ended June 30, 2022, the Company recorded share-based compensation expense related to the 2020 ESPP of $0.1 million and $0.3 million, respectively. For the three and six months ended June 30, 2021, the Company recorded share-based compensation expense related to the 2020 ESPP of $0.1 million and $0.2 million, respectively. Stock Appreciation Rights On June 6, 2022, the Founders were each awarded two stock appreciation rights ("SARs") under the 2020 Plan. The first SAR received by each Founder was granted on June 6, 2022, and the second SAR received by each Founder will be granted on or about June 1, 2023. Each SAR will be settled in cash with an aggregate grant date value equal to $1.5 million (the number of shares to be determined by dividing such value by the per share Black-Scholes valuation as of the date of grant), will have an exercise price equal to the fair market value of a share of the Company’s common stock on the date of grant and will be exercisable in full on the third anniversary of the date of grant. There is no future service requirement in connection with the SARs, and as such, the total initial fair value of the awards is recorded as expense at the time of the grant. The fair value of the SARs liability is revalued (marked-to-market) each reporting period using the Black-Scholes valuation model, based on the Company’s period-end stock price. SARs are liability-classified awards, and as such, are recorded within other long-term liabilities on the Condensed Consolidated Balance Sheet. For the three and six months ended June 30, 2022, the Company recorded $2.1 million of share-based compensation expense related to the SARs. Stock Option Repricing On April 25, 2022 and in accordance with the terms of the GoHealth, Inc. 2020 Incentive Award Plan, the Board of Directors approved a stock option repricing (the “Repricing”) where the exercise price of each Relevant Option (as defined below) was reduced to $1.05 per share, the average trailing 20 trading day closing price of the Company’s Class A common stock as of market close on the day of board approval. “Relevant Options” are all outstanding stock options as of April 25, 2022 (vested or unvested) to acquire shares of the Company’s Class A common stock that were issued to currently employed employees prior to April 1, 2022, but excluding stock options granted to certain executive officers. Except for the reduction in the exercise price of the Relevant Options, all outstanding stock options will continue to remain outstanding in accordance with their current terms and conditions. As a result of the Repricing, the Company will record an incremental share-based compensation charge of $1.1 million, of which $0.3 million was recognized on the date of the Repricing and $0.8 million is recognized over the remaining term of the repriced options. |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | NET LOSS PER SHARE Basic loss per share is computed by dividing net loss attributable to GoHealth, Inc. by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted loss per share is computed giving effect to all potentially dilutive shares. Diluted loss per share for all periods presented is the same as basic loss per share as the inclusion of potentially issuable shares would be antidilutive. A reconciliation of the numerator and denominator used in the calculation of basic and diluted net loss per share of Class A common stock is as follows: Three months ended Jun. 30, Six months ended Jun. 30, (in thousands, except per share amounts) 2022 2021 2022 2021 Numerator: Net loss $ (113,752) $ (39,221) $ (150,993) $ (46,481) Less: Net loss attributable to non-controlling interests (69,933) (27,217) (93,691) (32,390) Net loss attributable to GoHealth, Inc. (43,819) (12,004) (57,302) (14,091) Denominator: Weighted-average shares of Class A common stock outstanding—basic 124,440 102,300 120,346 97,349 Effect of dilutive securities — — — — Weighted-average shares of Class A common stock outstanding—diluted 124,440 102,300 120,346 97,349 Net loss per share of Class A common stock—basic and diluted $ (0.35) $ (0.12) $ (0.48) $ (0.14) The following number of shares were excluded from the calculation of diluted loss per share because the effect of including such potentially dilutive shares would have been antidilutive: Jun. 30, (in thousands) 2022 2021 Class A common stock issuable pursuant to equity awards 20,808 7,337 Class B common stock 197,547 215,495 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company is taxed as a corporation for income tax purposes and is subject to federal, state, and local taxes on the income allocated to it from GHH, LLC based upon the Company’s economic interest in GHH, LLC. The Company is the sole managing member of GHH, LLC and, as a result, consolidates the financial results of GHH, LLC. GHH, LLC is a limited liability company taxed as a partnership for income tax purposes, and the subsidiaries of GHH, LLC are limited liability companies for income tax purposes except for a subsidiary and its foreign subsidiary, which are taxed as a corporation and foreign disregarded entity, respectively. As such, GHH, LLC does not pay any federal income taxes, as income or loss is included in the tax returns of the individual members. Additionally, certain wholly-owned entities taxed as corporations are subject to federal, state, and foreign income taxes in the jurisdictions in which they operate, and accruals for such taxes are included in the Condensed Consolidated Financial Statements. The Company’s effective tax rate for the three and six months ended June 30, 2022 was 0.00% and (0.31)%, respectively. The Company’s effective tax rate for the three and six months ended June 30, 2021 was 0.08% and 0.14%, respectively. The effective tax rate for each period is lower than the statutory tax rate primarily due to the effect of loss entities for which the Company excludes from its annual effective tax rate calculation and loss attributable to non-controlling interests. Tax Receivable Agreement In connection with the IPO, the Company entered into a Tax Receivable Agreement with GHH, LLC, the Continuing Equity Owners and the Blocker Shareholders (the “TRA”), which provides for the payment by the Company to the Continuing Equity Owners and the Blocker Shareholders of 85% of the amount of tax benefits, if any, that the Company actually realizes (or in some circumstances is deemed to realize). The amounts payable under the TRA vary depending upon a number of factors, including the amount, character, and timing of the taxable income of the Company in the future. As of June 30, 2022, the Company has determined there is no resulting liability related to the TRA. Should the Company determine that the TRA liability will be considered probable at a future date based on new information, any changes will be recorded within income from continuing operations at that time. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE Revenue Recognition for Variable Consideration The Company’s variable consideration includes the total estimated lifetime value (“LTV”) it expects to receive for selling an insurance product after the carrier approves an application. The consideration is variable based on the amount of time it estimates a policy will remain in force, which is based on historical experience or carrier experience to the extent available, industry data, and expectations as to future retention rates. Additionally, the Company considers the application of a constraint and only recognizes the amount of variable consideration that it believes is probable that it will be entitled to receive and will not be subject to a significant revenue reversal in the future. Due to lower persistency observed during the three and six months ended June 30, 2022 and declining LTV estimates, the Company applied an incremental LTV constraint to all Medicare policies sold in the first and second quarters of 2022. On a quarterly basis, the Company re-estimates LTV at a vintage level for outstanding vintages, reviews and monitors changes in the data used to estimate LTV, as well as the cash received for each vintage as compared to the original estimates. The difference between cash received for each vintage and the respective estimated LTV can be significant and may or may not be indicative of the need to adjust revenue for prior period vintages. Changes in LTV may result in an increase or a decrease to revenue and a corresponding change to commissions receivable. The Company analyzes these differences and to the extent the Company believes differences in the estimates are indicative of a change to prior period LTVs, the Company will adjust revenue for the affected vintages at the time such determination is made and when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. For the three and six months ended June 30, 2022, the Company recorded negative revenue adjustments of $3.6 million and $6.2 million, respectively, for changes in estimates relating to performance obligations satisfied in prior periods. For the three and six months ended June 30, 2021, the Company recorded a negative revenue adjustment of $1.4 million and $3.6 million, respectively, relating to performance obligations satisfied in prior periods. Disaggregation of Revenue The table below depicts the disaggregation of revenue by product, and is consistent with how the Company evaluates its financial performance: Three months ended Jun. 30, Six months ended Jun. 30, (in thousands) 2022 2021 2022 2021 Commission revenue: Medicare: Medicare Advantage $ 115,494 $ 144,039 $ 322,128 $ 312,187 Medicare Supplement 91 789 403 1,573 Prescription Drug Plans 978 488 2,232 1,041 Total Medicare 116,563 145,316 324,763 314,801 Individual and Family Plan: Fixed Indemnity 175 808 556 3,589 Short-term 110 219 281 619 Major Medical — 208 72 409 Total Individual and Family Plan 285 1,235 909 4,617 Ancillary 1,189 891 2,000 1,999 Small Group 1 66 5 72 Total commission revenue 118,038 147,508 327,677 321,489 Enterprise revenue: Partner Marketing and Enrollment Services 23,797 42,531 64,460 64,388 Direct Partner Campaigns 14,366 6,700 34,482 14,802 Other 2,453 163 2,628 402 Total enterprise revenue 40,616 49,394 101,570 79,592 Net revenues $ 158,654 $ 196,902 $ 429,247 $ 401,081 Contract Assets and Liabilities The Company records contract assets and contract liabilities from contracts with customers as it relates to commissions receivable, commissions payable and deferred revenue. Commissions receivable represents estimated variable consideration for commissions to be received from insurance carriers for performance obligations that have been satisfied. Commissions payable represents estimated commissions to be paid to the Company’s external agents and other partners. Deferred revenue includes amounts collected for partner marketing and enrollment services and technology licensing and implementation fees in advance of the Company satisfying its performance obligations for such customers. The Company had unbilled receivables for performance-based enrollment fees as of June 30, 2022 and December 31, 2021 of $3.3 million and $20.1 million, respectively, which are recorded in prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets. There are no other contract assets or contract liabilities recorded by the Company. For both the three and six months ended June 30, 2022, the Company recognized $0.1 million of revenue that was deferred as of December 31, 2021. For the three and six months ended June 30, 2021, the Company recognized $26 thousand and $0.1 million, respectively, of revenue that was deferred as of December 31, 2020. Commissions Receivable Our contracts with carriers expose us to credit risk as a financial loss could be incurred if the counterparty does not fulfill its financial obligation. While we are exposed to credit losses due to the potential non-performance of our counterparties, we consider the risk of this remote. We estimate our maximum credit risk in determining the commissions receivable amount recorded on the balance sheet. Commissions receivable activity is summarized as follows: Six months ended Jun. 30, (in thousands) 2022 2021 Beginning balance $ 1,262,507 $ 809,859 Commission revenue 327,677 321,489 Cash receipts (429,605) (257,814) Allowance for credit loss 67 (42) Ending balance $ 1,160,646 $ 873,492 Less: Commissions receivable - current 198,647 113,062 Commissions receivable - non-current $ 961,999 $ 760,430 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Leases | LEASES Effect of Standard Adoption We adopted ASU 2016-02, Leases (Topic 842), effective January 1, 2021, using the optional transition method which allows entities to continue to apply historical accounting guidance in the comparative periods presented in the year of adoption. We elected the package of practical expedients permitted under the transition guidance within Accounting Standards Codification Topic 842 ("ASC 842") which, among other items, allowed us to carry forward the historical lease classifications. As such, we applied the modified retrospective approach as of the adoption date to those lease contracts for which we have taken possession of the property as of January 1, 2021. Results for reporting periods beginning on or after January 1, 2021 are presented under ASC 842. Upon transition, on January 1, 2021, we recorded the following increases (decreases) to the respective line items on the Consolidated Balance Sheet: (in thousands) Adjustment as of January 1, 2021 Operating lease ROU asset $ 28,044 Property, equipment and capitalized software, net (63) Short-term operating lease liabilities 5,118 Other current liabilities (1,231) Long-term operating lease liabilities 24,156 Accumulated deficit (17) Non-controlling interests (46) Nature of Leases Under ASC 842, we determine if an arrangement is a lease at inception of the arrangement. We have entered into operating and finance lease agreements with lease periods expiring between 2022 and 2032. Operating leases primarily consist of real estate and data centers, and finance leases primarily consist of office equipment. As of January 1, 2021, with the adoption of ASC 842, leases are included in operating lease right-of-use (“ROU”) assets and lease liabilities on our Condensed Consolidated Balance Sheets. Operating lease ROU assets and lease liabilities are recognized at the lease commencement date. Operating lease ROU assets represent our right to use an underlying asset and are based upon the lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment of operating lease assets. Lease liabilities represent the present value of lease payments over the lease term. The implicit rate within each lease is not readily determinable and therefore we use our incremental borrowing rate at the lease commencement date to determine the present value of the lease payments. The determination of the incremental borrowing rate requires judgement. We determined our incremental borrowing rate for each lease using indicative bank borrowing rates, adjusted for various factors including level of collateralization, term and treasury yield curves to align with the terms of the respective lease. The Company has elected the following practical expedients for all classes of leased assets: • Adopt the short-term lease exception for leases with terms of twelve months or less and account for them as if they were operating leases under ASC 840; and • Apply the practical expedient of combining lease and non-lease components. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. We do not include any renewal options in the lease terms for calculating lease liability, as the renewal options allow us to maintain operational flexibility and we are not reasonably certain that we will exercise these renewal options at the time of lease commencement. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Components of lease expense are as follows, all recorded within operating expenses in the Condensed Consolidated Statement of Operations: Three months ended Jun. 30, Six months ended Jun. 30, (in thousands) 2022 2021 2022 2021 Finance lease cost (1) $ 41 $ 84 $ 102 $ 169 Operating lease cost 2,055 1,707 4,002 3,503 Short-term lease cost (2) 170 118 253 237 Variable lease cost (3) 93 34 137 77 Sublease income (274) — (549) — Total net lease expense $ 2,085 $ 1,943 $ 3,945 $ 3,986 (1) Primarily consists of amortization of finance lease right-of-use assets and an immaterial amount of interest on finance lease liabilities recorded in operating expenses and interest expense in the condensed consolidated statements of operations. (2) Includes costs related to leases, which at the commencement date, have a lease term of 12 months or less. (3) Includes costs made by the Company for the right to use an underlying asset that vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time. As part of the Company’s continued cost savings initiatives, the Company is actively looking to terminate or sublease certain office spaces and call centers. These actions resulted in a $25.0 million operating lease impairment charge for the three and six months ended June 30, 2022, reducing the carrying value of the associated ROU assets and leasehold improvements to the estimated fair values. Refer to Note 2 “Fair Value Measurements” for further details. On February 15, 2022, the Company entered into a lease agreement for a site in Slovakia related to our Slovakian operations. The lease is expected to commence on October 1, 2022 with a lease term through March 31, 2030. Annual rent payments are not expected to be material to the financial statements. As of June 30, 2022, future minimum lease payments for operating leases consisted of the following: (in thousands) Operating Leases Remainder of 2022 $ 6,698 2023 12,383 2024 7,787 2025 6,464 2026 5,289 Thereafter 31,145 Total lease payments $ 69,766 Less: Imputed interest (18,820) Present value of lease liabilities $ 50,946 Supplemental cash flow information related to leases are as follows: Three months ended Jun. 30, Six months ended Jun. 30, (in thousands) 2022 2021 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,054 $ 1,630 $ 3,886 $ 3,248 Operating cash flows from finance leases $ 1 $ 5 $ 2 $ 11 Financing cash flows from finance leases $ 41 $ 78 $ 103 $ 154 Operating lease assets obtained in exchange for new lease obligations (1) $ 26,405 $ — $ 26,405 $ — Reduction in operating lease ROU assets and lease liabilities due to reassessment of lease terms $ 4,155 $ — $ 4,155 $ — (1) On May 12, 2020, the Company entered into a lease agreement with Wilson Tech 5, LLC, for a proposed site in Lindon, Utah, which commenced on June 8, 2022. The weighted average remaining lease term and discount rate are as follows: Jun. 30, (in thousands) 2022 2021 Weighted average remaining lease term (in years): Operating leases 7.5 years 4.7 years Finance leases 0.0 years 0.9 years Weighted average discount rate: Operating leases 8.0 % 6.1 % Finance leases — % 6.5 % |
Leases | LEASES Effect of Standard Adoption We adopted ASU 2016-02, Leases (Topic 842), effective January 1, 2021, using the optional transition method which allows entities to continue to apply historical accounting guidance in the comparative periods presented in the year of adoption. We elected the package of practical expedients permitted under the transition guidance within Accounting Standards Codification Topic 842 ("ASC 842") which, among other items, allowed us to carry forward the historical lease classifications. As such, we applied the modified retrospective approach as of the adoption date to those lease contracts for which we have taken possession of the property as of January 1, 2021. Results for reporting periods beginning on or after January 1, 2021 are presented under ASC 842. Upon transition, on January 1, 2021, we recorded the following increases (decreases) to the respective line items on the Consolidated Balance Sheet: (in thousands) Adjustment as of January 1, 2021 Operating lease ROU asset $ 28,044 Property, equipment and capitalized software, net (63) Short-term operating lease liabilities 5,118 Other current liabilities (1,231) Long-term operating lease liabilities 24,156 Accumulated deficit (17) Non-controlling interests (46) Nature of Leases Under ASC 842, we determine if an arrangement is a lease at inception of the arrangement. We have entered into operating and finance lease agreements with lease periods expiring between 2022 and 2032. Operating leases primarily consist of real estate and data centers, and finance leases primarily consist of office equipment. As of January 1, 2021, with the adoption of ASC 842, leases are included in operating lease right-of-use (“ROU”) assets and lease liabilities on our Condensed Consolidated Balance Sheets. Operating lease ROU assets and lease liabilities are recognized at the lease commencement date. Operating lease ROU assets represent our right to use an underlying asset and are based upon the lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment of operating lease assets. Lease liabilities represent the present value of lease payments over the lease term. The implicit rate within each lease is not readily determinable and therefore we use our incremental borrowing rate at the lease commencement date to determine the present value of the lease payments. The determination of the incremental borrowing rate requires judgement. We determined our incremental borrowing rate for each lease using indicative bank borrowing rates, adjusted for various factors including level of collateralization, term and treasury yield curves to align with the terms of the respective lease. The Company has elected the following practical expedients for all classes of leased assets: • Adopt the short-term lease exception for leases with terms of twelve months or less and account for them as if they were operating leases under ASC 840; and • Apply the practical expedient of combining lease and non-lease components. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. We do not include any renewal options in the lease terms for calculating lease liability, as the renewal options allow us to maintain operational flexibility and we are not reasonably certain that we will exercise these renewal options at the time of lease commencement. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Components of lease expense are as follows, all recorded within operating expenses in the Condensed Consolidated Statement of Operations: Three months ended Jun. 30, Six months ended Jun. 30, (in thousands) 2022 2021 2022 2021 Finance lease cost (1) $ 41 $ 84 $ 102 $ 169 Operating lease cost 2,055 1,707 4,002 3,503 Short-term lease cost (2) 170 118 253 237 Variable lease cost (3) 93 34 137 77 Sublease income (274) — (549) — Total net lease expense $ 2,085 $ 1,943 $ 3,945 $ 3,986 (1) Primarily consists of amortization of finance lease right-of-use assets and an immaterial amount of interest on finance lease liabilities recorded in operating expenses and interest expense in the condensed consolidated statements of operations. (2) Includes costs related to leases, which at the commencement date, have a lease term of 12 months or less. (3) Includes costs made by the Company for the right to use an underlying asset that vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time. As part of the Company’s continued cost savings initiatives, the Company is actively looking to terminate or sublease certain office spaces and call centers. These actions resulted in a $25.0 million operating lease impairment charge for the three and six months ended June 30, 2022, reducing the carrying value of the associated ROU assets and leasehold improvements to the estimated fair values. Refer to Note 2 “Fair Value Measurements” for further details. On February 15, 2022, the Company entered into a lease agreement for a site in Slovakia related to our Slovakian operations. The lease is expected to commence on October 1, 2022 with a lease term through March 31, 2030. Annual rent payments are not expected to be material to the financial statements. As of June 30, 2022, future minimum lease payments for operating leases consisted of the following: (in thousands) Operating Leases Remainder of 2022 $ 6,698 2023 12,383 2024 7,787 2025 6,464 2026 5,289 Thereafter 31,145 Total lease payments $ 69,766 Less: Imputed interest (18,820) Present value of lease liabilities $ 50,946 Supplemental cash flow information related to leases are as follows: Three months ended Jun. 30, Six months ended Jun. 30, (in thousands) 2022 2021 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,054 $ 1,630 $ 3,886 $ 3,248 Operating cash flows from finance leases $ 1 $ 5 $ 2 $ 11 Financing cash flows from finance leases $ 41 $ 78 $ 103 $ 154 Operating lease assets obtained in exchange for new lease obligations (1) $ 26,405 $ — $ 26,405 $ — Reduction in operating lease ROU assets and lease liabilities due to reassessment of lease terms $ 4,155 $ — $ 4,155 $ — (1) On May 12, 2020, the Company entered into a lease agreement with Wilson Tech 5, LLC, for a proposed site in Lindon, Utah, which commenced on June 8, 2022. The weighted average remaining lease term and discount rate are as follows: Jun. 30, (in thousands) 2022 2021 Weighted average remaining lease term (in years): Operating leases 7.5 years 4.7 years Finance leases 0.0 years 0.9 years Weighted average discount rate: Operating leases 8.0 % 6.1 % Finance leases — % 6.5 % |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Legal Proceedings In September 2020, three purported securities class action complaints were filed in the United States District Court for the Northern District of Illinois against the Company, certain of its officers and directors, and certain underwriters, private equity firms, and investment vehicles alleging that the Registration Statement filed in connection with the IPO was negligently prepared and, as a result, contained untrue statements of material fact, omitted material facts necessary to make the statements contained therein not misleading, and failed to make necessary disclosures required under the rules and regulations governing its preparation, including the Securities Act of 1933 (the “Securities Class Action”). Compensatory damages and reasonable costs and expenses incurred in the Securities Class Action were sought by the lead plaintiffs. On December 10, 2020, the court in the earliest filed action consolidated the three complaints, appointed lead plaintiffs and lead counsel for the consolidated action, and captioned the consolidated action “In re GoHealth, Inc. Securities Litigation.” On February 25, 2021, lead plaintiffs filed a consolidated complaint. On April 26, 2021, the Company and officer and director defendants filed a motion to dismiss the complaint. On April 5, 2022, that motion was denied. On May 31, 2022, the Company and officer and director defendants filed an answer to the consolidated complaint and, on June 21, 2022, they filed an amended answer. September 23, 2022 is lead plaintiffs’ current deadline to file a motion for class certification. The court has not yet set a trial date. On May 19, 2021, a derivative action (the “Derivative Action”) was filed, purportedly on behalf of the Company and against certain of the Company’s officers and directors, alleging breaches of fiduciary duty and other claims, based on substantially the same factual allegations as in the Securities Class Action. On June 6, 2022, the Derivative Action was stayed pursuant to the parties’ stipulation. The Company disputes each claim in the above referenced matters and intends to defend the pending actions noted above.The ultimate outcome of any damages that may become payable if its defense is unsuccessful in whole or in part is not probable nor estimable at this time. While GoHealth feels confident in its defense of these pending matters, there can be no assurance that it will prevail and that any damages that may be awarded will not be material to the results of operations or financial condition of GoHealth. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS The Company is party to various lease agreements with 214 W Huron LLC, 220 W Huron Street Holdings LLC, 215 W Superior LLC, and Wilson Tech 5, LLC, each of which are controlled by significant shareholders of the Company, to lease its corporate offices in Chicago, Illinois. The Company pays rent, operating expenses, maintenance, and utilities under the terms of the leases. For the three and six months ended June 30, 2022, the Company made aggregate lease payments of $0.7 million and $1.0 million, respectively. For the three and six months ended June 30, 2021, the Company made aggregate lease payments of $0.4 million and $0.7 million, respectively. On January 1, 2020, the Company entered into a non-exclusive aircraft dry lease agreement with an entity wholly-owned and controlled by certain significant shareholders of the Company. The agreement allows the Company to use an aircraft owned by this entity for business and on an as-needed basis. The agreement has no set term and is terminable without cause by either party upon 30 days’ prior written notice. Under the agreement, the Company is required to pay $6,036.94 per flight hour for use of the aircraft. For the three and six months ended June 30, 2022,the Company recorded expense of $0.2 million and $0.6 million, respectively. For the three and six months ended June 30, 2021, the Company recorded expense of $0.3 million and $0.4 million, respectively. During the twelve months ended December 31, 2020, the Company provided a short-term advancement to NVX Holdings, Inc., which is controlled by significant shareholders of the Company, for which the Company recorded a receivable of $3.4 million. The advancement was collected by the Company during the six months ended June 30, 2021. |
Operating Segments and Signific
Operating Segments and Significant Customers | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Operating Segments and Significant Customers | OPERATING SEGMENTS AND SIGNIFICANT CUSTOMERSOperating Segments The Company reports segment information based on how the Company’s chief operating decision maker (“CODM”) regularly reviews operating results, allocates resources and makes decisions regarding business operations. The performance measures of the segments include total revenue and profit (loss). For segment reporting purposes in accordance with ASC 280-10, Segment Reporting , the Company’s business structure is comprised of four operating and reportable segments: Medicare Internal and External: The Medicare internal and external segments consist primarily of revenues earned from sales of Medicare Advantage, Medicare Supplement, Prescription Drug Plans, and Medicare Special Needs Plans (or “SNPs”), for multiple carriers. Individual and Family Plan and Other (“IFP and Other”) Internal and External: The IFP and Other internal and external segments consist primarily of revenues earned from sales of individual and family plans, dental plans, vision plans and other ancillary plans to individuals that are not Medicare-eligible. The Internal and External segments relative to both Medicare and IFP are defined as follows: Internal: The two internal segments primarily consist of sales of products and plans by Company-employed agents offering qualified prospects plans from multiple carriers, Company-employed agents offering qualified prospects plans on a carrier-specific basis, or sales of products and plans through our online platform without the assistance of our agents (do-it-yourself or “DIY”). The Company earns revenue in this channel through commissions paid by carriers based on sales the Company generates, as well as enrollment fees, hourly fees and other fees for services performed for specific carriers and other partners. External: The two external segments represent sales of products and plans under the Company’s carrier contracts using an independent, national network of agents who are not employed by the Company. These agents utilize the Company’s technology and platform to enroll consumers in health insurance plans and provide a means to earn a return on leads that otherwise may have not been addressed. The Company also sells insurance prospects (or “leads”) to agencies within this channel. The Company earns revenue in this channel through commissions paid by carriers as a result of policy sales, as well as sales of leads to external agencies. The following table presents summary results of the Company’s operating segments for the periods indicated: Three months ended Jun. 30, Six months ended Jun. 30, (in thousands) 2022 2021 2022 2021 Net revenues: Medicare: Internal channel $ 103,685 $ 160,433 $ 307,530 $ 317,786 External channel 50,103 31,379 111,589 70,879 Total Medicare 153,788 191,812 419,119 388,665 IFP and Other: Internal channel 4,245 3,788 8,445 7,763 External channel 621 1,302 1,683 4,653 Total IFP and Other 4,866 5,090 10,128 12,416 Net revenues 158,654 196,902 429,247 401,081 Segment profit (loss): Medicare: Internal channel (11,040) 31,257 23,799 77,700 External channel (5,635) (1,688) (13,428) (2,319) Total Medicare (16,675) 29,569 10,371 75,381 IFP and Other: Internal channel 1,582 (800) 2,172 (1,529) External channel (411) (57) (669) 103 Total IFP and Other 1,171 (857) 1,503 (1,426) Segment profit (loss) (15,504) 28,712 11,874 73,955 Corporate expense 37,027 24,194 66,199 44,513 Amortization of intangible assets 23,515 23,515 47,029 47,029 Operating lease impairment charges 24,995 — 24,995 — Loss on extinguishment of debt — 11,935 — 11,935 Interest expense 12,724 8,277 24,122 16,965 Other (income) expense, net (13) 44 50 57 Income (loss) before income taxes (113,752) (39,253) (150,521) (46,544) There are no internal revenue transactions between the Company’s operating segments. Substantially all revenue for the periods presented was generated from customers located in the United States. The Company’s CODM does not separately evaluate assets by segment, and therefore assets by segment are not presented. The Company’s assets are primarily located in the United States. Significant Customers The following table presents carriers representing 10% or more of the Company’s total revenue for the periods indicated: Three months ended Jun. 30, Six months ended Jun. 30, 2022 2021 2022 2021 Humana 29 % 29 % 26 % 29 % Elevance Health 23 % 38 % 24 % 34 % United 17 % 16 % 18 % 17 % Centene 14 % 9 % 15 % 12 % Substantially all of the revenue from these customers was from the sales of products and plans within the Medicare—Internal and Medicare—External segments. Concentration of Credit Risk The Company does not require collateral or other security in granting credit. As of June 30, 2022, three customers each represented 10% or more of the Company’s total accounts receivable and unbilled receivables and, in aggregate, represented 90.2%, or $37.4 million, of the combined total. As of December 31, 2021, three customers each represented 10% or more of the Company’s total accounts receivable and unbilled receivables and, in aggregate, represented 87%, or $28.7 million, of the combined total. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTSOn August 12, 2022, the Company entered into Amendment No. 8 to the Credit Agreement and Incremental Facility Agreement. Refer to Note 4 “Long-term Debt” for further details. On August 9, 2022, we eliminated 835 full-time positions, representing approximately 23.7% of our workforce, primarily within our customer care and enrollment group. Total expected severance and employee-related charges are projected to be approximately $7.0 million - $9.0 million and are primarily related to termination and employee-related benefits. These charges will be settled in cash. |
Description of Business and S_2
Description of Business and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies In connection with the IPO (as defined below), the Company became the sole managing member of GHH, LLC and controls the management of GHH, LLC. As a result, the Company consolidates GHH, LLC’s financial results in its Condensed Consolidated Financial Statements and reports a non-controlling interest for the economic interest in GHH, LLC held by the Continuing Equity Owners. Substantially concurrently with the consummation of the IPO, the existing limited liability company agreement of GHH, LLC was amended and restated to, among other things, recapitalize its capital structure by creating a single new class of units (the “common units”) and provide for a right of redemption of common units (subject in certain circumstances to time-based vesting requirements and certain other restrictions) in exchange for, at the Company’s election, cash or newly-issued shares of Class A common stock on a one-for-one basis. In connection with any redemption, the Company will receive a corresponding number of common units, increasing the Company’s total ownership interest in GHH, LLC. Net income and loss is allocated to the Continuing Equity Owners on a pro-rata basis, assuming that any Class B common units that are subject to time-based vesting requirements are fully vested. GHH, LLC is a holding company with no operating assets or operations and was formed to acquire a 100% equity interest in Norvax. On May 6, 2020, Blizzard Parent, LLC changed its name to “GoHealth Holdings, LLC”. GHH, LLC owns 100% of Blizzard Midco, LLC, which owns 100% of Norvax. For all of the periods reported in these Condensed Consolidated Financial Statements, GHH, LLC has not and does not have any material operations on a standalone basis, and all of the operations of GHH, LLC are carried out by Norvax. The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information, but do not include all information and footnote disclosures required under GAAP for annual financial statements. In the opinion of management, the interim Condensed Consolidated Financial Statements include all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the Company’s financial position, results of operations and cash flows as of the dates and for the periods presented. All intercompany transactions and balances are eliminated in consolidation. Certain prior period amounts have been reclassified to conform with the current period presentation. Effective on December 31, 2021, we lost our emerging growth company ("EGC") status, which accelerated the adoption of Accounting Standards Update (“ASU”) 2016-02, Leases and ASU 2019-11, Financial Instruments – Credit Losses . As a result, we recast our previously reported consolidated financial statements effective January 1, 2021 to reflect the adoption of these standards. |
Use of Estimates | Use of Estimates The preparation of the Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities at the date of the Condensed Consolidated Financial Statements, and the reported amounts of revenues and expenses during the reporting periods. The Company bases its estimates on historical experience and on various other assumptions that management believes are reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets |
Seasonality | Seasonality A greater number of the Company’s Medicare-related health insurance plans are sold in its fourth quarter during the Medicare annual enrollment period when Medicare-eligible individuals are permitted to change their Medicare Advantage and Medicare Part D prescription drug coverage for the following year. As a result, the Company’s Medicare plan-related commission revenue is typically highest in the Company’s fourth quarter. The majority of the Company’s individual and family health insurance plans are sold in its fourth quarter during the annual open enrollment period as defined under the federal Patient Protection and ACA and related amendments in the Health Care and Education Reconciliation Act. Individuals and families generally are not able to purchase individual and family health insurance outside of the open enrollment period, unless they qualify for a special enrollment period as a result of certain qualifying events, such as losing employer-sponsored health insurance or moving to another state. As a result, the Company’s individual and family plan-related commission revenue is typically highest in the Company’s fourth quarter. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). The guidance specifies that lessees will need to recognize a right-of-use asset and a lease liability for virtually all their leases except those which meet the definition of a short-term lease. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or financing. Classification will be based on criteria that are similar to those applied in current lease accounting, but without explicit bright lines. The Company adopted the new guidance effective January 1, 2021. The Company elected the optional transition method which allows entities to continue to apply historical accounting guidance in the comparative periods presented in the year of adoption. At transition, lessees and lessors may elect to apply a package of practical expedients permitting entities not to reassess: (i) whether any expired or existing contracts are or contain leases; (ii) lease classification for any expired or existing leases and (iii) whether initial direct costs for any expired or existing leases qualify for capitalization under the amended guidance. These practical expedients must be elected as a package and consistently applied. The Company applied the package of practical expedients upon adoption. As a result of adopting this standard, on January 1, 2021, the Company recorded lease liabilities of $29.3 million, right-of-use assets of $28.0 million, and an immaterial cumulative catch-up adjustment to opening equity. The adoption of this new standard did not have a material impact on the Company’s consolidated statements of operations, comprehensive income (loss), or cash flows. The Company has included expanded disclosures on the condensed consolidated balance sheets and in Note 10 to the Condensed Consolidated Financial Statements. In November 2019, the FASB issued ASU 2019-11, Financial Instruments – Credit Losses |
Revenue Recognition for Variable Consideration | Revenue Recognition for Variable Consideration The Company’s variable consideration includes the total estimated lifetime value (“LTV”) it expects to receive for selling an insurance product after the carrier approves an application. The consideration is variable based on the amount of time it estimates a policy will remain in force, which is based on historical experience or carrier experience to the extent available, industry data, and expectations as to future retention rates. Additionally, the Company considers the application of a constraint and only recognizes the amount of variable consideration that it believes is probable that it will be entitled to receive and will not be subject to a significant revenue reversal in the future. Due to lower persistency observed during the three and six months ended June 30, 2022 and declining LTV estimates, the Company applied an incremental LTV constraint to all Medicare policies sold in the first and second quarters of 2022. |
Goodwill And Intangible Asset_2
Goodwill And Intangible Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Definite-lived Amortizable Intangible Assets | The gross carrying amounts, accumulated amortization and net carrying amounts of the Company’s definite-lived amortizable intangible assets, as well as its indefinite-lived intangible trade names, are as follows: Jun. 30, 2022 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 496,000 $ 198,400 $ 297,600 Customer relationships 232,000 64,960 167,040 Total intangible assets subject to amortization $ 728,000 $ 263,360 $ 464,640 Indefinite-lived trade names 83,000 Total intangible assets $ 547,640 Dec. 31, 2021 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 496,000 $ 162,971 $ 333,029 Customer relationships 232,000 53,360 178,640 Total intangible assets subject to amortization $ 728,000 $ 216,331 $ 511,669 Indefinite-lived trade names 83,000 Total intangible assets $ 594,669 |
Schedule of Indefinite-lived Intangible Trade Names | The gross carrying amounts, accumulated amortization and net carrying amounts of the Company’s definite-lived amortizable intangible assets, as well as its indefinite-lived intangible trade names, are as follows: Jun. 30, 2022 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 496,000 $ 198,400 $ 297,600 Customer relationships 232,000 64,960 167,040 Total intangible assets subject to amortization $ 728,000 $ 263,360 $ 464,640 Indefinite-lived trade names 83,000 Total intangible assets $ 547,640 Dec. 31, 2021 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 496,000 $ 162,971 $ 333,029 Customer relationships 232,000 53,360 178,640 Total intangible assets subject to amortization $ 728,000 $ 216,331 $ 511,669 Indefinite-lived trade names 83,000 Total intangible assets $ 594,669 |
Schedule of Expected Amortization Expense Related to Intangible Assets | As of June 30, 2022, expected amortization expense related to intangible assets for each of the five succeeding years is as follows: (in thousands) Developed Technology Customer Relationships Total Remainder of 2022 $ 35,429 $ 11,600 $ 47,029 2023 70,857 23,200 94,057 2024 70,857 23,200 94,057 2025 70,857 23,200 94,057 2026 49,600 23,200 72,800 Thereafter — 62,640 62,640 Total $ 297,600 $ 167,040 $ 464,640 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | The Company’s long-term debt consisted of the following: (in thousands) Jun. 30, 2022 Dec. 31, 2021 Term Loan Facilities $ 520,768 $ 523,403 Revolving Credit Facilities 155,000 155,000 Less: Unamortized debt discount and issuance costs (8,480) (8,018) Total debt $ 667,288 $ 670,385 Less: Current portion of long-term debt (5,270) (5,270) Total long-term debt $ 662,018 $ 665,115 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Share-Based Compensation Expenses by Operating Function | The following table summarizes share-based compensation expense by operating function for the periods presented: Three months ended Jun. 30, Six months ended Jun. 30, (in thousands) 2022 2021 2022 2021 Marketing and advertising $ 215 $ 426 $ 656 $ 764 Customer care and enrollment 624 1,043 1,255 1,839 Technology 627 1,133 1,609 1,880 General and administrative 12,791 4,997 15,892 8,228 Total share-based compensation expense $ 14,257 $ 7,599 $ 19,412 $ 12,711 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of the Numerator and Denominator Used in the Calculation of Basic and Diluted Net Loss Per Share | A reconciliation of the numerator and denominator used in the calculation of basic and diluted net loss per share of Class A common stock is as follows: Three months ended Jun. 30, Six months ended Jun. 30, (in thousands, except per share amounts) 2022 2021 2022 2021 Numerator: Net loss $ (113,752) $ (39,221) $ (150,993) $ (46,481) Less: Net loss attributable to non-controlling interests (69,933) (27,217) (93,691) (32,390) Net loss attributable to GoHealth, Inc. (43,819) (12,004) (57,302) (14,091) Denominator: Weighted-average shares of Class A common stock outstanding—basic 124,440 102,300 120,346 97,349 Effect of dilutive securities — — — — Weighted-average shares of Class A common stock outstanding—diluted 124,440 102,300 120,346 97,349 Net loss per share of Class A common stock—basic and diluted $ (0.35) $ (0.12) $ (0.48) $ (0.14) |
Schedule of Antidilutive Securities Excluded From Calculation of Diluted Loss Per Share | The following number of shares were excluded from the calculation of diluted loss per share because the effect of including such potentially dilutive shares would have been antidilutive: Jun. 30, (in thousands) 2022 2021 Class A common stock issuable pursuant to equity awards 20,808 7,337 Class B common stock 197,547 215,495 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregation of Revenue | The table below depicts the disaggregation of revenue by product, and is consistent with how the Company evaluates its financial performance: Three months ended Jun. 30, Six months ended Jun. 30, (in thousands) 2022 2021 2022 2021 Commission revenue: Medicare: Medicare Advantage $ 115,494 $ 144,039 $ 322,128 $ 312,187 Medicare Supplement 91 789 403 1,573 Prescription Drug Plans 978 488 2,232 1,041 Total Medicare 116,563 145,316 324,763 314,801 Individual and Family Plan: Fixed Indemnity 175 808 556 3,589 Short-term 110 219 281 619 Major Medical — 208 72 409 Total Individual and Family Plan 285 1,235 909 4,617 Ancillary 1,189 891 2,000 1,999 Small Group 1 66 5 72 Total commission revenue 118,038 147,508 327,677 321,489 Enterprise revenue: Partner Marketing and Enrollment Services 23,797 42,531 64,460 64,388 Direct Partner Campaigns 14,366 6,700 34,482 14,802 Other 2,453 163 2,628 402 Total enterprise revenue 40,616 49,394 101,570 79,592 Net revenues $ 158,654 $ 196,902 $ 429,247 $ 401,081 |
Summary of Commissions Receivable Activity | Commissions receivable activity is summarized as follows: Six months ended Jun. 30, (in thousands) 2022 2021 Beginning balance $ 1,262,507 $ 809,859 Commission revenue 327,677 321,489 Cash receipts (429,605) (257,814) Allowance for credit loss 67 (42) Ending balance $ 1,160,646 $ 873,492 Less: Commissions receivable - current 198,647 113,062 Commissions receivable - non-current $ 961,999 $ 760,430 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Schedule of Impact of Adoption of ASU 2016-02 | Upon transition, on January 1, 2021, we recorded the following increases (decreases) to the respective line items on the Consolidated Balance Sheet: (in thousands) Adjustment as of January 1, 2021 Operating lease ROU asset $ 28,044 Property, equipment and capitalized software, net (63) Short-term operating lease liabilities 5,118 Other current liabilities (1,231) Long-term operating lease liabilities 24,156 Accumulated deficit (17) Non-controlling interests (46) |
Components of Lease Expense, Supplemental Cash Flow Information and Weighted Average Remaining Lease Term and Discount Rate | Components of lease expense are as follows, all recorded within operating expenses in the Condensed Consolidated Statement of Operations: Three months ended Jun. 30, Six months ended Jun. 30, (in thousands) 2022 2021 2022 2021 Finance lease cost (1) $ 41 $ 84 $ 102 $ 169 Operating lease cost 2,055 1,707 4,002 3,503 Short-term lease cost (2) 170 118 253 237 Variable lease cost (3) 93 34 137 77 Sublease income (274) — (549) — Total net lease expense $ 2,085 $ 1,943 $ 3,945 $ 3,986 (1) Primarily consists of amortization of finance lease right-of-use assets and an immaterial amount of interest on finance lease liabilities recorded in operating expenses and interest expense in the condensed consolidated statements of operations. (2) Includes costs related to leases, which at the commencement date, have a lease term of 12 months or less. (3) Includes costs made by the Company for the right to use an underlying asset that vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time. Supplemental cash flow information related to leases are as follows: Three months ended Jun. 30, Six months ended Jun. 30, (in thousands) 2022 2021 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,054 $ 1,630 $ 3,886 $ 3,248 Operating cash flows from finance leases $ 1 $ 5 $ 2 $ 11 Financing cash flows from finance leases $ 41 $ 78 $ 103 $ 154 Operating lease assets obtained in exchange for new lease obligations (1) $ 26,405 $ — $ 26,405 $ — Reduction in operating lease ROU assets and lease liabilities due to reassessment of lease terms $ 4,155 $ — $ 4,155 $ — (1) On May 12, 2020, the Company entered into a lease agreement with Wilson Tech 5, LLC, for a proposed site in Lindon, Utah, which commenced on June 8, 2022. The weighted average remaining lease term and discount rate are as follows: Jun. 30, (in thousands) 2022 2021 Weighted average remaining lease term (in years): Operating leases 7.5 years 4.7 years Finance leases 0.0 years 0.9 years Weighted average discount rate: Operating leases 8.0 % 6.1 % Finance leases — % 6.5 % |
Schedule of Future Minimum Payments for Finance Leases | As of June 30, 2022, future minimum lease payments for operating leases consisted of the following: (in thousands) Operating Leases Remainder of 2022 $ 6,698 2023 12,383 2024 7,787 2025 6,464 2026 5,289 Thereafter 31,145 Total lease payments $ 69,766 Less: Imputed interest (18,820) Present value of lease liabilities $ 50,946 |
Schedule of Future Minimum Payments for Operating Leases | As of June 30, 2022, future minimum lease payments for operating leases consisted of the following: (in thousands) Operating Leases Remainder of 2022 $ 6,698 2023 12,383 2024 7,787 2025 6,464 2026 5,289 Thereafter 31,145 Total lease payments $ 69,766 Less: Imputed interest (18,820) Present value of lease liabilities $ 50,946 |
Operating Segments and Signif_2
Operating Segments and Significant Customers (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Summary of Reconciliation of Operating Profit (Loss) From Segments to Consolidated | The following table presents summary results of the Company’s operating segments for the periods indicated: Three months ended Jun. 30, Six months ended Jun. 30, (in thousands) 2022 2021 2022 2021 Net revenues: Medicare: Internal channel $ 103,685 $ 160,433 $ 307,530 $ 317,786 External channel 50,103 31,379 111,589 70,879 Total Medicare 153,788 191,812 419,119 388,665 IFP and Other: Internal channel 4,245 3,788 8,445 7,763 External channel 621 1,302 1,683 4,653 Total IFP and Other 4,866 5,090 10,128 12,416 Net revenues 158,654 196,902 429,247 401,081 Segment profit (loss): Medicare: Internal channel (11,040) 31,257 23,799 77,700 External channel (5,635) (1,688) (13,428) (2,319) Total Medicare (16,675) 29,569 10,371 75,381 IFP and Other: Internal channel 1,582 (800) 2,172 (1,529) External channel (411) (57) (669) 103 Total IFP and Other 1,171 (857) 1,503 (1,426) Segment profit (loss) (15,504) 28,712 11,874 73,955 Corporate expense 37,027 24,194 66,199 44,513 Amortization of intangible assets 23,515 23,515 47,029 47,029 Operating lease impairment charges 24,995 — 24,995 — Loss on extinguishment of debt — 11,935 — 11,935 Interest expense 12,724 8,277 24,122 16,965 Other (income) expense, net (13) 44 50 57 Income (loss) before income taxes (113,752) (39,253) (150,521) (46,544) |
Summary of Revenue by Major Customers by Reporting Segments | The following table presents carriers representing 10% or more of the Company’s total revenue for the periods indicated: Three months ended Jun. 30, Six months ended Jun. 30, 2022 2021 2022 2021 Humana 29 % 29 % 26 % 29 % Elevance Health 23 % 38 % 24 % 34 % United 17 % 16 % 18 % 17 % Centene 14 % 9 % 15 % 12 % |
Description of Business and S_3
Description of Business and Significant Accounting Policies - Narrative (Details) $ in Thousands | 6 Months Ended | ||||||
Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | May 06, 2020 | |
Class of Stock [Line Items] | |||||||
Common units to class A common stock, conversion ratio | 1 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Lease liabilities | $ 50,946 | ||||||
Right-of-use assets | 22,987 | $ 23,462 | |||||
Total stockholders’ equity | $ (758,321) | $ (859,958) | $ (892,490) | $ (1,365,160) | $ (1,396,412) | $ (1,399,155) | |
GHH, LLC | Norvax | |||||||
Class of Stock [Line Items] | |||||||
Equity method investment ownership percentage | 100% | ||||||
GHH, LLC | Blizzard Midco | |||||||
Class of Stock [Line Items] | |||||||
Equity method investment ownership percentage | 100% | ||||||
Blizzard Midco | Norvax | |||||||
Class of Stock [Line Items] | |||||||
Equity method investment ownership percentage | 100% | ||||||
Cumulative Effect, Period of Adoption, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Lease liabilities | 29,300 | ||||||
Right-of-use assets | 28,044 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Cumulative impact of Topic 326 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Total stockholders’ equity | $ 539 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | ||||
Operating lease impairment charges | $ 24,995 | $ 0 | $ 24,995 | $ 0 |
Impact of five percent increase (decrease) in market rent per square foot on impairment charge | $ 1,000 | $ 1,000 |
Goodwill And Intangible Asset_3
Goodwill And Intangible Assets, Net - Narrative (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) reporting_unit segment | Jun. 30, 2021 USD ($) | Dec. 31, 2019 USD ($) | |
Goodwill [Line Items] | ||||||
Number of reporting units | reporting_unit | 4 | |||||
Number of operating segments | segment | 4 | |||||
Impairment of intangible assets | $ 0 | $ 0 | $ 0 | $ 0 | ||
Medicare-Internal Reporting Unit | ||||||
Goodwill [Line Items] | ||||||
Impairment of goodwill | $ 380,300,000 | |||||
Medicare-External Reporting Unit | ||||||
Goodwill [Line Items] | ||||||
Impairment of goodwill | $ 6,200,000 | |||||
Medicare—Internal | ||||||
Goodwill [Line Items] | ||||||
Goodwill recorded | $ 380,300,000 | |||||
Medicare—External | ||||||
Goodwill [Line Items] | ||||||
Goodwill recorded | $ 6,200,000 |
Goodwill And Intangible Asset_4
Goodwill And Intangible Assets, Net - Summary of Definite-lived and Indefinite-lived Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 728,000 | $ 728,000 |
Accumulated Amortization | 263,360 | 216,331 |
Net Carrying Amount | 464,640 | 511,669 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Net Carrying Amount | 547,640 | 594,669 |
Indefinite-lived trade names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Net Carrying Amount | 83,000 | 83,000 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 496,000 | 496,000 |
Accumulated Amortization | 198,400 | 162,971 |
Net Carrying Amount | 297,600 | 333,029 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 232,000 | 232,000 |
Accumulated Amortization | 64,960 | 53,360 |
Net Carrying Amount | $ 167,040 | $ 178,640 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net - Summary of Expected Future Amortization Expense Related to Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Remainder of 2022 | $ 47,029 | |
2023 | 94,057 | |
2024 | 94,057 | |
2025 | 94,057 | |
2026 | 72,800 | |
Thereafter | 62,640 | |
Net Carrying Amount | 464,640 | $ 511,669 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remainder of 2022 | 35,429 | |
2023 | 70,857 | |
2024 | 70,857 | |
2025 | 70,857 | |
2026 | 49,600 | |
Thereafter | 0 | |
Net Carrying Amount | 297,600 | 333,029 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remainder of 2022 | 11,600 | |
2023 | 23,200 | |
2024 | 23,200 | |
2025 | 23,200 | |
2026 | 23,200 | |
Thereafter | 62,640 | |
Net Carrying Amount | $ 167,040 | $ 178,640 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Less: Unamortized debt discount and issuance costs | $ (8,480) | $ (8,018) |
Total debt | 667,288 | 670,385 |
Less: Current portion of long-term debt | (5,270) | (5,270) |
Total long-term debt | 662,018 | 665,115 |
Term Loan Facilities | ||
Debt Instrument [Line Items] | ||
Long-term debt gross | 520,768 | 523,403 |
Revolving Credit Facilities | ||
Debt Instrument [Line Items] | ||
Long-term debt gross | $ 155,000 | $ 155,000 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||||||
Aug. 12, 2022 | Mar. 14, 2022 | Nov. 10, 2021 | Jun. 11, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | May 07, 2021 | Dec. 31, 2020 | Sep. 13, 2019 | |
Debt Instrument [Line Items] | ||||||||||||
Loss on extinguishment of debt | $ 0 | $ 11,935,000 | $ 0 | $ 11,935,000 | ||||||||
Prepayment premium | $ 0 | $ 5,910,000 | ||||||||||
Term Loan Facilities | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt issuance costs | $ 1,700,000 | |||||||||||
Periodic payment percentage | 0.25% | |||||||||||
Term Loan Facilities | Initial Term Loan Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amount outstanding | $ 295,500,000 | $ 300,000,000 | ||||||||||
Loss on extinguishment of debt | $ 11,900,000 | |||||||||||
Prepayment premium, percentage | 2% | |||||||||||
Prepayment premium | $ 5,900,000 | |||||||||||
Write-down of deferred financing costs and debt discounts | 6,000,000 | |||||||||||
Term Loan Facilities | Incremental Term Loan Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amount outstanding | $ 114,400,000 | $ 114,400,000 | $ 115,000,000 | |||||||||
Aggregate principal amount | $ 117,000,000 | |||||||||||
Effective interest rate | 7.50% | 7.50% | 7.50% | |||||||||
Term Loan Facilities | Incremental Term Loan Facility | Alternate Base Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Variable interest rate spread | 5.50% | |||||||||||
Term Loan Facilities | Incremental Term Loan Facility | LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Variable interest rate spread | 6.50% | |||||||||||
Term Loan Facilities | 2021 Incremental Term Loan Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amount outstanding | $ 306,900,000 | $ 306,900,000 | $ 308,400,000 | |||||||||
Aggregate principal amount | 310,000,000 | |||||||||||
Debt issuance costs | 1,700,000 | |||||||||||
Effective interest rate | 7.50% | 7.50% | 6% | |||||||||
Term Loan Facilities | 2021 Incremental Term Loan Facility | Alternate Base Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Variable interest rate spread | 5.50% | 4% | ||||||||||
Term Loan Facilities | 2021 Incremental Term Loan Facility | Alternate Base Rate | Subsequent event | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Variable interest rate spread | 6.50% | |||||||||||
Term Loan Facilities | 2021 Incremental Term Loan Facility | LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Variable interest rate spread | 6.50% | 5% | ||||||||||
Term Loan Facilities | 2021 Incremental Term Loan Facility | LIBOR | Subsequent event | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Variable interest rate spread | 7.50% | |||||||||||
Term Loan Facilities | 2021-2 Incremental Term Loan Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amount outstanding | $ 99,500,000 | $ 99,500,000 | $ 100,000,000 | |||||||||
Aggregate principal amount | $ 100,000,000 | |||||||||||
Debt issuance costs | $ 2,500,000 | |||||||||||
Effective interest rate | 7.70% | 7.70% | 6% | |||||||||
Term Loan Facilities | 2021-2 Incremental Term Loan Facility | Alternate Base Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Variable interest rate spread | 5.50% | 4% | ||||||||||
Term Loan Facilities | 2021-2 Incremental Term Loan Facility | Alternate Base Rate | Subsequent event | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Variable interest rate spread | 6.50% | |||||||||||
Term Loan Facilities | 2021-2 Incremental Term Loan Facility | LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Variable interest rate spread | 6.50% | 5% | ||||||||||
Term Loan Facilities | 2021-2 Incremental Term Loan Facility | LIBOR | Subsequent event | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Variable interest rate spread | 7.50% | |||||||||||
Revolving Credit Facilities | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 200,000,000 | |||||||||||
Commitment fee percentage | 0.50% | |||||||||||
Remaining borrowing capacity | $ 45,000,000 | $ 45,000,000 | ||||||||||
Revolving Credit Facilities | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 30,000,000 | |||||||||||
Revolving Credit Facilities | Incremental Revolving Credit Facilities | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 28,000,000 | |||||||||||
Revolving Credit Facilities | Incremental No. 4 Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 142,000,000 | |||||||||||
Revolving Credit Facilities | Class A Revolving Commitments | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amount outstanding | $ 23,200,000 | $ 23,200,000 | $ 23,200,000 | |||||||||
Aggregate principal amount | 30,000,000 | |||||||||||
Weighted-average effective interest rates | 8.10% | 8.10% | 7.50% | |||||||||
Revolving Credit Facilities | Class A Revolving Commitments | Alternate Base Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Variable interest rate spread | 5.50% | |||||||||||
Revolving Credit Facilities | Class A Revolving Commitments | LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Variable interest rate spread | 6.50% | |||||||||||
Revolving Credit Facilities | Class B Revolving Commitments | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amount outstanding | $ 131,800,000 | $ 131,800,000 | $ 131,800,000 | |||||||||
Aggregate principal amount | $ 170,000,000 | |||||||||||
Weighted-average effective interest rates | 5.60% | 5.60% | 5% | |||||||||
Revolving Credit Facilities | Class B Revolving Commitments | Alternate Base Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Variable interest rate spread | 3% | |||||||||||
Revolving Credit Facilities | Class B Revolving Commitments | LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Variable interest rate spread | 4% |
Stockholders' Equity and Memb_2
Stockholders' Equity and Members' Equity (Details) shares in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2020 vote $ / shares shares | Jun. 30, 2022 $ / shares shares | Jun. 30, 2021 | Jun. 30, 2022 $ / shares shares | Jun. 30, 2021 | Dec. 31, 2021 $ / shares shares | |
Class of Stock [Line Items] | ||||||
Preferred stock, shares authorized (in shares) | shares | 20,000 | 20,000 | 20,000 | 20,000 | ||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Ratio between the number of shares of Class A common stock issued and the number of LLC Interests owned | 1 | |||||
GHH, LLC | ||||||
Class of Stock [Line Items] | ||||||
Weighted-average ownership percentage by non-controlling interest holders | 61.50% | 68.10% | 62.60% | 69.70% | ||
Continuing Equity Owners and permitted transferees | ||||||
Class of Stock [Line Items] | ||||||
Ratio between the number of shares of Class B common stock owned and the number of LLC Interests owned | 1 | |||||
GHH, LLC | ||||||
Class of Stock [Line Items] | ||||||
LLC Interests to newly issued Class A common stock, conversion ratio | 1 | |||||
Class A Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Common stock, shares authorized (in shares) | shares | 1,100,000 | 1,100,000 | 1,100,000 | 1,100,000 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Number of votes per common share held | vote | 1 | |||||
Class B common stock | ||||||
Class of Stock [Line Items] | ||||||
Common stock, shares authorized (in shares) | shares | 690,000 | 579,555 | 579,555 | 587,360 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Number of votes per common share held | vote | 1 |
Share-Based Compensation Plan_2
Share-Based Compensation Plans - Summary of Share-Based Compensation Expenses by Operating Function (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 14,257 | $ 7,599 | $ 19,412 | $ 12,711 |
Marketing and advertising | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | 215 | 426 | 656 | 764 |
Customer care and enrollment | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | 624 | 1,043 | 1,255 | 1,839 |
Technology | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | 627 | 1,133 | 1,609 | 1,880 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 12,791 | $ 4,997 | $ 15,892 | $ 8,228 |
Share-Based Compensation Plan_3
Share-Based Compensation Plans - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Jun. 07, 2022 USD ($) $ / shares shares | Jun. 06, 2022 USD ($) | Apr. 25, 2022 USD ($) d $ / shares | Jul. 07, 2020 | Jun. 30, 2022 USD ($) shares | Jun. 30, 2021 USD ($) shares | Jun. 30, 2022 USD ($) shares | Jun. 30, 2021 USD ($) shares | Dec. 31, 2021 $ / shares shares | Jun. 03, 2022 shares | Dec. 19, 2021 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based compensation expense | $ 14,257 | $ 7,599 | $ 19,412 | $ 12,711 | |||||||
Trailing trading days for closing price | d | 20 | ||||||||||
Share-based compensation expense to be recognized over the remaining term | $ 800 | ||||||||||
Volume Weighted Average Price, Scenario One | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Percentage of target award | 50% | ||||||||||
Volume Weighted Average Price, Scenario Two | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Percentage of target award | 100% | ||||||||||
Volume Weighted Average Price, Scenario Three | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Percentage of target award | 150% | ||||||||||
Volume Weighted Average Price, Scenario Four | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Percentage of target award | 200% | ||||||||||
SARs | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
SARs vesting period | 3 years | ||||||||||
SARs share-based compensation expense | 2,100 | 2,100 | |||||||||
Stock Appreciation Rights, Commencing June 6, 2022 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Value of cash to be used to settle one SAR | $ 1,500 | ||||||||||
Stock Appreciation Rights, Commencing June 1, 2023 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Value of cash to be used to settle one SAR | $ 1,500 | ||||||||||
Prior to April 1, 2022 | Employees, excluding certain Executive Officers | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Outstanding stock options exercise price (in dollars per share) | $ / shares | $ 1.05 | ||||||||||
Minimum | Volume Weighted Average Price, Scenario One | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Volume weighted average price (in dollars per share) | $ / shares | $ 2 | ||||||||||
Minimum | Volume Weighted Average Price, Scenario Two | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Volume weighted average price (in dollars per share) | $ / shares | 3 | ||||||||||
Minimum | Volume Weighted Average Price, Scenario Three | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Volume weighted average price (in dollars per share) | $ / shares | 4 | ||||||||||
Minimum | Volume Weighted Average Price, Scenario Four | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Volume weighted average price (in dollars per share) | $ / shares | 6 | ||||||||||
Maximum | Volume Weighted Average Price, Scenario One | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Volume weighted average price (in dollars per share) | $ / shares | 3 | ||||||||||
Maximum | Volume Weighted Average Price, Scenario Two | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Volume weighted average price (in dollars per share) | $ / shares | 4 | ||||||||||
Maximum | Volume Weighted Average Price, Scenario Three | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Volume weighted average price (in dollars per share) | $ / shares | $ 6 | ||||||||||
RSUs | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Awards granted (in shares) | shares | 7,667 | ||||||||||
Share-based compensation expense | $ 6,300 | ||||||||||
PSU's | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Awards granted (in shares) | shares | 2,917 | 489,000 | |||||||||
Share-based compensation expense | 200 | 900 | 1,000 | 1,400 | |||||||
Performance period | 3 years | 3 years | |||||||||
Risk-free interest rate | 2.90% | 0.20% | |||||||||
Annualized volatility | 94% | 72% | |||||||||
Grant date fair value (in dollars per share) | $ / shares | $ 0.55 | $ 22.17 | |||||||||
PSU's | Minimum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Percentage of target award | 0% | ||||||||||
PSU's | Maximum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Percentage of target award | 200% | ||||||||||
ESPP | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based compensation expense | $ 100 | $ 100 | $ 300 | $ 200 | |||||||
ESPP purchase price of common stock, percent of market price | 85% | ||||||||||
Share-based compensation arrangement by share-based payment award, shares issued in period (in shares) | shares | 662,000 | 50 | 662,000 | 50 | |||||||
Options | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based compensation expense | $ 300 | ||||||||||
One-time incremental share-based compensation charge | $ 1,100 | ||||||||||
2021 Employment Inducement Award Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Shares reserved for issuance (in shares) | shares | 25,000,000 | 4,000,000 |
Net Loss Per Share - Reconcilia
Net Loss Per Share - Reconciliation of the Numerator and Denominator Used in the Calculation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator: | ||||
Net income (loss) | $ (113,752) | $ (39,221) | $ (150,993) | $ (46,481) |
Less: Net loss attributable to non-controlling interests | (69,933) | (27,217) | (93,691) | (32,390) |
Net income (loss) attributable to GoHealth, Inc. | $ (43,819) | $ (12,004) | $ (57,302) | $ (14,091) |
Denominator: | ||||
Weighted-average shares of Class A common stock outstanding — basic (in shares) | 124,440 | 102,300 | 120,346 | 97,349 |
Effect of dilutive securities (in shares) | 0 | 0 | 0 | 0 |
Weighted-average shares of Class A common stock outstanding—diluted | 124,440 | 102,300 | 120,346 | 97,349 |
Net loss per share of Class A common stock — basic (in dollars per share) | $ (0.35) | $ (0.12) | $ (0.48) | $ (0.14) |
Net loss per share of Class A common stock — diluted (in dollars per share) | $ (0.35) | $ (0.12) | $ (0.48) | $ (0.14) |
Net Loss Per Share - Antidiluti
Net Loss Per Share - Antidilutive Securities (Details) - shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Class A common stock issuable pursuant to equity awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted-average potentially dilutive shares excluded from calculation of diluted loss per share because effect would be antidilutive (in shares) | 20,808 | 7,337 |
Class B common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted-average potentially dilutive shares excluded from calculation of diluted loss per share because effect would be antidilutive (in shares) | 197,547 | 215,495 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jul. 17, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate | 0% | 0.08% | (0.31%) | 0.14% | |
Tax Receivable Agreement, payment, percent of amount of tax benefits realized or deemed to realize | 85% | ||||
Tax Receivable Agreement, liability | $ 0 | $ 0 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||||
Negative revenue adjustments relating to performance obligations satisfied in prior periods | $ 3,600 | $ 1,400 | $ 6,200 | $ 3,600 | |
Revenue recognized that was previously deferred | 100 | $ 26 | 100 | $ 100 | |
Prepaid expenses and other current assets | |||||
Disaggregation of Revenue [Line Items] | |||||
Unbilled receivables for performance-based enrollment fees | $ 3,300 | $ 3,300 | $ 20,100 |
Revenue - Summary of Disaggrega
Revenue - Summary of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 158,654 | $ 196,902 | $ 429,247 | $ 401,081 |
Commission | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 118,038 | 147,508 | 327,677 | 321,489 |
Ancillary | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 1,189 | 891 | 2,000 | 1,999 |
Small Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 1 | 66 | 5 | 72 |
Enterprise | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 40,616 | 49,394 | 101,570 | 79,592 |
Partner Marketing and Enrollment Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 23,797 | 42,531 | 64,460 | 64,388 |
Direct Partner Campaigns | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 14,366 | 6,700 | 34,482 | 14,802 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 2,453 | 163 | 2,628 | 402 |
Medicare | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 116,563 | 145,316 | 324,763 | 314,801 |
Medicare | Medicare Advantage | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 115,494 | 144,039 | 322,128 | 312,187 |
Medicare | Medicare Supplement | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 91 | 789 | 403 | 1,573 |
Medicare | Prescription Drug Plans | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 978 | 488 | 2,232 | 1,041 |
Individual and Family Plan | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 285 | 1,235 | 909 | 4,617 |
Individual and Family Plan | Fixed Indemnity | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 175 | 808 | 556 | 3,589 |
Individual and Family Plan | Short-term | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 110 | 219 | 281 | 619 |
Individual and Family Plan | Major Medical | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 0 | $ 208 | $ 72 | $ 409 |
Revenue - Summary of Commission
Revenue - Summary of Commissions Receivable Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Contract with Customer, Asset [Roll Forward] | |||||
Commission revenue | $ 158,654 | $ 196,902 | $ 429,247 | $ 401,081 | |
Less: Commissions receivable - current | 198,647 | 198,647 | $ 268,663 | ||
Commissions receivable - non-current | 961,999 | 961,999 | $ 993,844 | ||
Commission | |||||
Contract with Customer, Asset [Roll Forward] | |||||
Beginning balance | 1,262,507 | 809,859 | |||
Commission revenue | 118,038 | 147,508 | 327,677 | 321,489 | |
Cash receipts | (429,605) | (257,814) | |||
Allowance for credit loss | 67 | (42) | |||
Ending balance | 1,160,646 | 873,492 | 1,160,646 | 873,492 | |
Less: Commissions receivable - current | 198,647 | 113,062 | 198,647 | 113,062 | |
Commissions receivable - non-current | $ 961,999 | $ 760,430 | $ 961,999 | $ 760,430 |
Leases - Impact of Adoption of
Leases - Impact of Adoption of ASU 2016-02 (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease ROU asset | $ 22,987 | $ 23,462 | |
Property, equipment, and capitalized software, net | 29,986 | 24,273 | |
Short-term operating lease liabilities | 9,998 | 6,126 | |
Other current liabilities | 15,764 | 8,344 | |
Long-term operating lease liabilities | 40,947 | 19,776 | |
Accumulated deficit | (265,619) | (208,317) | |
Non-controlling interests | $ 411,858 | $ 539,387 | |
Cumulative Effect, Period of Adoption, Adjustment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease ROU asset | $ 28,044 | ||
Property, equipment, and capitalized software, net | (63) | ||
Short-term operating lease liabilities | 5,118 | ||
Other current liabilities | (1,231) | ||
Long-term operating lease liabilities | 24,156 | ||
Accumulated deficit | (17) | ||
Non-controlling interests | $ (46) |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | ||||
Finance lease cost | $ 41 | $ 84 | $ 102 | $ 169 |
Operating lease cost | 2,055 | 1,707 | 4,002 | 3,503 |
Short-term lease cost | 170 | 118 | 253 | 237 |
Variable lease cost | 93 | 34 | 137 | 77 |
Sublease income | (274) | 0 | (549) | 0 |
Total net lease expense | 2,085 | 1,943 | 3,945 | 3,986 |
Operating lease impairment charges | $ 24,995 | $ 0 | $ 24,995 | $ 0 |
Leases - Minimum Future Payment
Leases - Minimum Future Payments for Finance and Operating Leases (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Operating Leases | |
Remainder of 2022 | $ 6,698 |
2023 | 12,383 |
2024 | 7,787 |
2025 | 6,464 |
2026 | 5,289 |
Thereafter | 31,145 |
Total lease payments | 69,766 |
Less: Imputed interest | (18,820) |
Present value of lease liabilities | $ 50,946 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ 2,054 | $ 1,630 | $ 3,886 | $ 3,248 |
Operating cash flows from finance leases | 1 | 5 | 2 | 11 |
Financing cash flows from finance leases | 41 | 78 | 103 | 154 |
Operating lease assets obtained in exchange for new operating lease obligations | 26,405 | 0 | 26,405 | 0 |
Reduction in operating lease right-of-use asset due to reassessment of lease terms | 4,155 | 0 | 4,155 | 0 |
Reduction in operating lease liability due to reassessment of lease terms | $ 4,155 | $ 0 | $ 4,155 | $ 0 |
Leases - Weighted Average Remai
Leases - Weighted Average Remaining Lease Term and Discount Rate (Details) | Jun. 30, 2022 | Jun. 30, 2021 |
Weighted average remaining lease term (in years): | ||
Operating leases | 7 years 6 months | 4 years 8 months 12 days |
Finance leases | 0 years | 10 months 24 days |
Weighted average discount rate: | ||
Operating leases | 8% | 6.10% |
Finance leases | 0% | 6.50% |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 1 Months Ended |
Sep. 30, 2020 claim | |
Pending litigation | |
Loss Contingencies [Line Items] | |
Number of securities class action complaints filed | 3 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||||
Lease payments | $ 700,000 | $ 400,000 | $ 1,000,000 | $ 700,000 | |
Receivable from NVX Holdings, Inc. | $ 3,400,000 | ||||
Non-Exclusive Aircraft Dry Lease Agreement | |||||
Related Party Transaction [Line Items] | |||||
Agreement terminable without cause by either party, period of required prior written notice | 30 days | ||||
Amount required to pay per flight hour for use of aircraft | 6,036.94 | $ 6,036.94 | |||
Lease expenses incurred | $ 200,000 | $ 300,000 | $ 600,000 | $ 400,000 |
Operating Segments and Signif_3
Operating Segments and Significant Customers - Narrative (Details) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | |
Segment Reporting [Abstract] | ||
Number of operating segments | 4 | |
Number of reportable segments | 4 | |
Three customers | Accounts receivable and unbilled receivables | Customer concentration risk | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 90.20% | 87% |
Accounts receivable and unbilled receivables | $ | $ 37.4 | $ 28.7 |
Operating Segments and Signif_4
Operating Segments and Significant Customers - Summary of Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net revenues: | ||||
Net revenues | $ 158,654 | $ 196,902 | $ 429,247 | $ 401,081 |
Segment profit (loss): | ||||
Segment profit (loss) | (101,041) | (18,997) | (126,349) | (17,587) |
Corporate expense | 37,027 | 24,194 | 66,199 | 44,513 |
Amortization of intangible assets | 23,515 | 23,515 | 47,029 | 47,029 |
Operating lease impairment charges | 24,995 | 0 | 24,995 | 0 |
Loss on extinguishment of debt | 0 | 11,935 | 0 | 11,935 |
Interest expense | 12,724 | 8,277 | 24,122 | 16,965 |
Other (income) expense, net | (13) | 44 | 50 | 57 |
Income (loss) before income taxes | (113,752) | (39,253) | (150,521) | (46,544) |
Operating Segments | ||||
Net revenues: | ||||
Net revenues | 158,654 | 196,902 | 429,247 | 401,081 |
Segment profit (loss): | ||||
Segment profit (loss) | (15,504) | 28,712 | 11,874 | 73,955 |
Medicare | ||||
Net revenues: | ||||
Net revenues | 116,563 | 145,316 | 324,763 | 314,801 |
Medicare | Operating Segments | ||||
Net revenues: | ||||
Net revenues | 153,788 | 191,812 | 419,119 | 388,665 |
Segment profit (loss): | ||||
Segment profit (loss) | (16,675) | 29,569 | 10,371 | 75,381 |
Internal channel | Operating Segments | ||||
Net revenues: | ||||
Net revenues | 103,685 | 160,433 | 307,530 | 317,786 |
Segment profit (loss): | ||||
Segment profit (loss) | (11,040) | 31,257 | 23,799 | 77,700 |
External channel | Operating Segments | ||||
Net revenues: | ||||
Net revenues | 50,103 | 31,379 | 111,589 | 70,879 |
Segment profit (loss): | ||||
Segment profit (loss) | (5,635) | (1,688) | (13,428) | (2,319) |
Individual and Family Plan and Other | Operating Segments | ||||
Net revenues: | ||||
Net revenues | 4,866 | 5,090 | 10,128 | 12,416 |
Segment profit (loss): | ||||
Segment profit (loss) | 1,171 | (857) | 1,503 | (1,426) |
Internal channel | Operating Segments | ||||
Net revenues: | ||||
Net revenues | 4,245 | 3,788 | 8,445 | 7,763 |
Segment profit (loss): | ||||
Segment profit (loss) | 1,582 | (800) | 2,172 | (1,529) |
External channel | Operating Segments | ||||
Net revenues: | ||||
Net revenues | 621 | 1,302 | 1,683 | 4,653 |
Segment profit (loss): | ||||
Segment profit (loss) | $ (411) | $ (57) | $ (669) | $ 103 |
Operating Segments and Signif_5
Operating Segments and Significant Customers - Summary of Revenue by Major Customers by Reporting Segments (Details) - Revenue - Customer concentration risk | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Humana | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue percent | 29% | 29% | 26% | 29% |
Elevance Health | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue percent | 23% | 38% | 24% | 34% |
United | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue percent | 17% | 16% | 18% | 17% |
Centene | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue percent | 14% | 9% | 15% | 12% |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent event $ in Millions | Aug. 09, 2022 USD ($) position |
Subsequent Event [Line Items] | |
Number of positions eliminated | position | 835 |
Percentage of positions eliminated | 23.70% |
Minimum | |
Subsequent Event [Line Items] | |
Total expected restructuring charges | $ 7 |
Maximum | |
Subsequent Event [Line Items] | |
Total expected restructuring charges | $ 9 |