SLQT - Earnings call 1 2022 | SelectQuote, Inc.

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Operator

Good day, and thank you for standing by. Welcome to the SelectQuote Fiscal First Quarter 2022 Earnings Conference Call. [Operator Instructions]

Without further ado, I would like to welcome your first speaker for today, Matt Gunter, SelectQuote Investor Relations. Sir, the floor is yours.

Matthew Gunter

afternoon, good and you, everyone. Thank fiscal Welcome earnings quarter to SelectQuote's call. first

to would begin have mention presentation will discussion also our website. a we on today's like afternoon. provided guide After this call, slide be we Before replay website, I to call, our our that a our available help on

Sadun. Officer, our Chief and me the I company, Danker; from have Officer, Tim Raff Joining our Chief Executive Financial

Following Raff's Instructions] question-and-answer today, session. will we a Tim have and comments [Operator

call, and this financial financial between during website. will of X, be directly earnings non-GAAP Slide on and measures referenced differences some we measures. our our in comparable release discussing As non-GAAP the available GAAP the GAAP a and most are on The investor financial measures reconciliation presentation

to, report reminder our company today beliefs And a those other on therefore, These differ of management's that forward-looking statements. based made the the from are earnings could or and number Therefore, current not implied uncertainties SEC. expectations risks, or financial Form certain release, impacting actual be operations and, statements statements events including, may made but upon and limited involve of future the company finally, annual those concerning with the and condition filings materially XX-K forward-looking of our statements. expressed in described in results a

call our Chief to Danker. turn Executive over And the with to I'd that, Tim Tim? like Officer,

Timothy Danker

season initiatives Then Raff's usual, a some the update we'll everyone AEP on color results. we'll to Medicare thank wrap call. senior we'll for our on give Matt, and Thanks, results. first overview you our financial preparation of lastly, our with for Health the on as strong Population up And quick joining specifically. SelectRx quarter provide review business. Today, and We'll also our ongoing our fiscal

we takeaways So X let's see I'll Slide as X, start on key begin them. and with

were $XXX premium. Consolidated driven up policies internal growth results expense in strong and of higher ahead MA-approved of were our revenues primarily First, by quarter million expectations. and XX% final the first in year-over-year,

of investment to onboard was Our of primarily and in EBITDA accompanying million anticipation by loss AEP driven adjusted $XX OEP. flex and roles support agents the seasonal

Second, full adjustments. $XXX $X.XX to unchanged which to in also $XXX revenue billion EBITDA billion $X.X ranges outlook adjusted at 'XX remain and year for million $XX placeholder unchanged includes our sale potential fiscal of million, million an

first of our into our internal the were While moved call. year EBITDA and the and Raff AEP the coming will Both of given this results ahead our speak to during of season. pacing for expectations, hiring I timing the quarter revenue has this

important of Additionally, X get to provide it production season. further the annual that a next quarters. updates outlook XX% to as the as will result, is we And reiterate through come our over we plan over to our

strategic delayed, the Third, we while believe for in is we despite staffing labor And ongoing growth place another our was are positioned of the strong for season. year the timing market. tighter AEP well

this year. also For business product our will our new enhance that business, we core final Senior have our Senior and implemented expense tools

thrilled we've we're business. progress Fourth, in the by SelectRx our seen

ramped sharply, validate synergy enrollment which daily has to of our Our power rate offering. the and continues

infrastructure. and further which Simple SelectRx we accelerate medication quarter, pharmacy. acquired addition, the platform operations, The expansion additive is capacity complementary with a in business management In Meds our will of the and

Responders Also provides BrainCheck person both health and behavioral Responders, and medication care and provider, on we've issues management Thriveworks virtually have on-demand been that health plans. patients network Population behavioral in for the used solution drive at world's an new and of from testing discharged nonemergency provider and Thriveworks expand These SelectQuote. cognitive and added recently partners. offers to our leading telehealth provides Ready have acute and broader facility. in services practices in-home revenues health care Ready Population health our providers, Health platform growing potential strategy, our to our over into patients and some new care, BrainCheck medical neurology primary XXX health locations. It care underscore that to care renowned partnerships geriatric of centers. its is the will most providers service to Health benefit value-based in members, areas

later market the our additional incremental Population loans. and took will million remarks, well draw we the bottom very but line we more Health term is in to delayed are committed across strategies. and advantage Lastly, positioned pursue core of growth capital give attractive an $XXX through debt distribution color Raff his raise to

quickly Before let I and context. in AEP, growth turn results me to put recent our

X the and economics. headwinds is, some adjustment adjusted stated XX%, and the our SelectQuote that respectively, dollars delivering 'XX. against grow despite goal will EBITDA persistency SelectQuote and is of EBITDA cohorts has unit recent The past point XX% at revenue attractive in continue expect we some and tail impact, aggregate into scaled CAGRs Over key to and fiscal years, growth driven

Lastly, long and are distribution we'd for and Medicare clearly Population to augment the SelectRx that these still business say see very business for core by in excited growth a senior Advantage scales. Health our trends we potential as runway the

Turning Slide X Senior. to on

first enrollment the Let annual me brief the for provide and a Advantage. to period overview our quarter upcoming heading Medicare of strategy

quarter again another was high-growth first The quarter. strong

approved XX%, at a year-over-year driven policies. segment XX% Our in increase grew revenues Senior by

final a growth expense continues premiums. Our to strong in potential demonstrate with XX% quarter increase by unit driven attractive another its

me now we preparation of let in the some for color heart are As season. our AEP, on the get

exceeded year goal. That the timing the in achieve need, cadence is the a that of First, flex key the we'd slower-than-expected our heading have outlined agent that we The our into the beginning have into The expect believe earnings of Raff labor agent be hiring XQ delayed growth cadence year year's I we reiterate delayed third quarterly our and given provide our hiring production from said, we will agents the ramp that positioned move the we little evidenced takeaway well total now season. fact update now are full this an and some we we will tighter by outlook later. this of as to noted was will fourth quarter. this that market on mix the growth before. given but

looks and know, we for tools SelectQuote a approach highlight latest like use enhancements and our constantly business. to you to data of to the enhance optimize the As year. and to technology this I'd our have made couple

story. risk significantly enhanced retention we First, our

We have upon each risk of retention are and specialized base based customers existing risk profile. utilizing our scored tactics customer's

sharing enhanced and results significantly this summary, customer and coming and look Second, awareness enrollment selling enhanced processes, drive to both plan benefits our In customer are of well peak year's we quarters. ensure also the positioned forward onboarding to we satisfaction. our and in additional have efficiency season to for

initiatives. Now Population if on SelectRx Slide Health our update offerings, and consumer an past we our for I'd solution. to SelectRx to strong X we like turn pharmacy demand take X, exciting see for continue quarters, particularly provide the to to minute Similar these a to

Xx To now can you that sharply, pre-acquisition Xx our about ramped that rate closer last As to daily of are here, was level context, see the is SelectRx that level just seeing in quarter. put acquisition. have and volume enrollment enrollments we

that Simple Meds. an to we ago, acquisition this minute continue capability a noted I distribution additional of build further should progress As our like

up we XX from In are which states, now launch. XX in fact, is at states selling

sales by date, trends to to including by also migration. the patient encouraged note that member that very important these we're through resulting during and we as naturally It the optimize about While and onboarding for continue enrollments will to any typically fulfillment critical the work falloff process. this quarter drug revenues SelectRx operational we the lag occurs a is process,

as we of. for attractive policyholders of on return flow at best our partners. The cash Population As revenue and with which between significant strategy the outcomes, very and reminder, truly Health that caregivers, significant are proud of the patients SelectQuote especially attributes a our and ability company carriers caregiver to are all, improves value Best capitalizes information SelectRx leverage well health provides as our dynamics. and for and SelectQuote connectivity payers opportunities our

the me review to results. let Raff our over that, With call turn to Raff?

Raffaele Sadun

Tim. Thanks,

revenue $XX X EBITDA Turning adjusted and an to We XX% division. $XXX Slide of our grew total to generated in million. loss million Senior

increase As driven number was also SelectRx, lower in our increased a as somewhat minute, of the where offset of quarter. from in specifically Population this policy. in I'll scaling the MA-approved by by business revenue result an good generated we progress increase policies, a the revenue MA Revenue discuss LTV made activities, Health per

our ramp-up for quarter did the and we secure during expenses, and of in marketing anticipation and channels expenses vendors OEP. terms marketing to AEP In test

busiest our and drags of on going availability made it we of of those forces into lead quarter, this margins like during sense year. the the secure to leads the felt quality the those While quarters

enrollers incurred and flex We incremental our in to our costs to up and ramp activity also hire agents SelectRx.

Slide approved XX% productivity in marketing grew overall and to full productivity agents, agent that OEP and our an during was the we by We and on number down will driven productivity. driven MA-approved average This flex and a increase Moving in growth a continue of the lead agent With XX%. our agents increase KPIs on Agent in to productive X. a increase total policies Senior XX% and was policy by XX% consumption. costs increase an expect big year. AEP in in increase be for year-over-year

perspective, lower be our provision the to on down we level impact fourth be and anticipated we the the MA lower X% first to as full around higher switch to policy higher that LTV decline driven lower persistency year level overall quarter in LTVs the X persistency. LTVs offset respect somewhat years, is expected rates. last persistency, MA X%, for switch first and and in rates quarters quarterization by a the With in for lap by year From MA would of than start the and renewal discussed than by persistency to call, to policy the as higher

said our down would rates we first as quarter, you year. LTVs the MA through were progress lapse XX% on update We we year-over-year. For

the year. until see January, not potential adjusting information we $XX to said a placeholder versus of elevated see continue are rates event in million for cohort fourth Having in lapse tail We we our quarter. initial the the the that, last adjustment from renewal

and let to on our comment & update on our turn cadence and growth sheet Lastly, Life give balance an before our Auto segments. 'XX, briefly the I for Home fiscal me of

Revenue a XX% by Life. the decline on Life by premium, expense First, term XX% premium. was in primarily final segment increase in in offset an driven

with expense final well mesh the core business. the cash product make flow to dynamics for product the continues continue business And focus senior Our a Medicare strategic offering. to our favorable of the

headwinds continues term especially from variant. of the rise the Our with COVID, in summer contrast, business, to this Life delta face over

driven year, primarily of If we the turn $X totaled segment, to segment. lower our Auto which mix by the Home last within revenue down & agents was million, tenured from

Now the if going to capital Slide our update fiscal update 'XX on an in cadence we of then position. move growth I'm X, to provide and our

the tight AEP First, as heading labor market Tim season. hiring delayed year's noted, this of the into agents

in to the $X.X and billion While $XXX with will our unchanged range billion and million earnings this of quarter. outlook the full forecasted mix $XXX into million, $X.XX our the to year of quarter fourth remains move third EBITDA quarter of the from revenues second adjusted

second As we lower on little higher that quarter over operating total. quarter third XX% our XX%. third Similarly, and XX% be a expect leverage for quarter's expect be last increased quarter to we we to lead approximately given lower noted be consumption annual revenue little quarter. the than second margin mix We the of to to and expected than now the shift our in call, a

be As second to margins quarter expect now consolidated the move result, third we mid-XX% the in XX% a for to low the quarter range margins and range. to expect

to We be the also to fourth anticipate quarter closer breakeven.

conclude brief Let into our a heading of capital AEP. me position with update

with XX, cash September XXXX, million million quarter of As the $XXX and of of $XXX we debt. ended

long-term We short- the accounts quarter commissions ended balances. and also $X billion receivable receivable of with and

the driven During AEP. up investment the to quarter, we for by ramp from operations, cash million seasonal of used $XX

pharmacy in. purchase of In SelectRx used sell the addition of the capacity Meds, we another million in spaces we medication that us the to million number gives Simple to incremental $XX management $X increase company, which also CapEx, to and are for scale licensed

our took structured capital in of Lastly, favorable of capital form interest term of incremental market we million limit really through expense conditions new the amount we To before recently access in delayed loans. raise to agreement. capital, X an draw need $XXX credit we advantage committed the additional credit to the this

to second million tranche needs drawn be 'XX. 'XX. The tranche drawn first needs $XXX by January January be to by And of $XXX million the

revolver based $XXX gave next committed progression. flow the our guidance million. cash us to We quarter last of runway These on give years also plenty the on we increased additional commitments several for

And back some final call with that, for Tim I'll thoughts. over turn the to Tim?

Timothy Danker

we your on turn you. before let questions, Thank to X. And summarize me quickly Slide

First, advantages compelling a competitive believe significant driven has growth by we and secular demographic within SelectQuote industry, trends.

delivers have differentiated to technology significant capabilities an that model value a We agent-led Medicare built shoppers paired Advantage experience. with through

on we've we these our attractive achievable Second, returns Health are yet, Population believe capital highly our previous are well invested detailed Better calls. types strategies as core as initiatives. growth compelling our on returns both in as earnings of newer

detailed ramping for and proposition management potential. prescription drug unique value quickly, increasingly distribution we we SelectRx convinced is as that tremendous Third, earlier, has and are our

benefits value also initiatives for our Population SelectRx, caregivers to our unique to carriers, similar Health shareholders. and and represent opportunity which company's patients, unlock our Lastly, ability

questions. that, to us With your turn Operator? let

Operator

[Operator Suisse. from line question first the comes Jailendra Credit Our Instructions] from Singh of

Jailendra Singh

Jailendra Suisse. Singh is from Credit This

to you to Last delayed late noted you reported up hiring this in plan. follow that your track hiring when wanted guys on August, quarter, Just of impact on with you respect guys were process.

Just it like, is impacting year, see that Like positioning months so is the starting believe us what this when respect early year, the last much any in which for were agents? Especially months agents last I in of with kind AEP hiring over? you happened, process impacting turn you X did X process? the what exactly give the happened your

William Grant

to happy Yes, I'm take that.

We are. that additional to we noted but labor from the good still hiring we talked what was year, some market about we quite think last different we where certainly quarter felt I last had about do.

the think a this offers that experienced difference year year, bit rate quite of biggest to I learned we from verbal last start higher accepted we dates.

somebody year-over-year with process our So the basically but to that's not offer licensing start. quite follow motivated accepted through just didn't quite -- basically, who as and entirely

at rates really So start. the difference, meaning primary those the were verbal the offers

is really, off, As going large started number be us. of push that result which to look that large you beginning September a of the basically our at especially We is pushed of to of for classes back, had fall a class it back. class folks class, kind a when September

which did over So in getting that, And really push kind the the finish class. of later we response to caused was really, final in that, say, delay. I'd them a that it of terms line

Jailendra Singh

for that? of business? then like from how take moving But given like given your flex Life agent year? business, advantage model, your Senior business flexibility mean have not flexibility that why and to Home more Just & curious advantage this not is you of important agents do you take AEP why your I not year much business did Auto last

William Grant

want Bob, to do you take that?

Robert Grant

ultimately hiring QX. hitting that this same absolutely. more up strategy, our then goals outside just in point. QX the we It's of were after and then relative Jailendra. September Yes, kind in still because goals It's the just hiring our have falloff to call for had and actually year, we more frame. our fill of bit AEP to AEP more delayed fill it time and summer We from after hiring a ended last goals, we -- classes actually little folks the that and Bill's those We to came funnel

the are folks. pressure results seeing So lot and up a talking hiring over ended a rely bodies lot were about always really the mixed on of hiring just of because with shifting of folks delayed It's on shifted from still that we of the We put shifting. number that. we external good

William Grant

is was a -- the that thing start is on that come rate. learned verbal folks accepted we have one offers date we while at would thing have -- point one trading down, are out here that are that were are to actually Jailendra, I there And -- lower

And folks the So we takes are -- job. and that those and ramp earlier positions that It's that classes well, year of would to in we feel performing we than ramp. are a like time earlier little -- this feel the they're in is we're to getting a there terms people push period. we it it a as be They're back to very committed those like little the us. just process later, push we

good forward. are. the puts I they good really like difference. primary where a feel a feel They're that's position about high sticking So rate. it But in at again, moving

Jailendra Singh

partners, dynamics. what the Just the follow-up general, agency prior in share AEP the you any beyond a from around you about saw cost anything In from of lead terms quick insurance anything generation, health in focus can AEPs? in different change

Timothy Danker

Yes. Jailendra, and over Bob. I'll it this is quick make comment to Tim. turn a

into the as the to will well hit efficiency and general lot to enhancements market well on do with ramp of our design, as drive very production, we've throughout AEP Bill we environment positioned see and around plan quality think a notably and the hiring in Enrollment, biggest you feel want Bob, on thing I some to it? think respect process. front, I things other the as think OEP. that general with operational I just you made comment

Robert Grant

Yes. One little carriers more other together last differentiated how on the networks are, seeing definitely were have year. OTC plan quite we that were largely things a thing come on design, bit benefits,

more So each not a as each as we being of differentiated far quite see environment of as the a bit from carriers competitive other. do little from

the COVID watching important putting So feel on based kind have plans. that and messaging the carriers plan that. a that did things job and that's that lead definitely especially good through about an and very those just I interesting to people, But in start really great adjusting then buys of design been

Operator

next of from line Elizabeth comes the from Anderson question Our Evercore.

Elizabeth Anderson

that factors trends. the be of a transitory impacted could wondering the ones some I bit the comment maybe some LTV little quarter, if the longer-term might versus differentiating of the was in that on just you

Raffaele Sadun

that probably is one. Raff. This I'll Sure. take

the LTV stated MA for level which policy. Roughly -- on on was that persistency, year-over-year. effectively as call, a down of function move the X/X policies, think just more because we net I is revenue that revenue we was impact has to So no of XX% X% neutral, reminder, the approved down was a

trailing X/X both of bit commission average it renewal of combination on X-year rates. losses, average year then So a and provision was based of really And increased the weighted X/X persistency rates a -- year lower weighted overall that. first little was then it by offset of X-year

the of of kind are XX% drivers primary those So the decline.

Elizabeth Anderson

That's Okay. Population of possible in Health quarter specifically perspective? talk to much is And a contributed super the helpful. just sort how about it from revenue

Timothy Danker

Yes.

Raff, think ahead, -- I want. ahead. you'll go see if you Go

Raffaele Sadun

of specific the initiatives think you'll Q see [indiscernible] ramp Well, to there that $X specifically revenue And SelectRx the that. when All for driver quarter. was to around probably quite the million in working the on I generated And they're course that file ramping again, are the nicely. of biggest year. we we're the during continue that of expected

Elizabeth Anderson

Okay.

you the year? is your So general would with that on -- initial Population Health expectations track say the the for

Raffaele Sadun

Absolutely.

Timothy Danker

some to fiscal that Yes. picking and information can you've was Bob that? Maybe to which Obviously, seen some very way the the very members mean to here. increase acquisition of We demand very synergistic we year. as the that you for want management. from up medication about good just our scale of Simple chime we we Elizabeth, and the bit, to some enrollment Yes, add prior end absolutely. in the with little the customer encouraged and as think would overall what see shared, what and ask the made feel base. touch we a consumer we call a Bob, we are well in Meds, by the us I I on seeing by that really of redundancy XX,XXX cost-effective experts growth, strength demand shared the in great we're with as

Robert Grant

the revenue to Yes. some filling it's other drugs They up is time I of sign we've actually mean things the businesses think really of the on one the than right? Elizabeth, a their that that I have start Or like too, service thing is fulfilled. can't gotten customer, into, different we fully other count that. and things we when

little consumer get into that BrainCheck, we still kind the path. cognitive cycle, think same we're of doing actually but shorter to other as things, I within book we as until experience -- the alluded to, overall A Even exams revenue. and within kind we of finish Tim have follows

and a talked feedback So tremendously, Tim the demand grown the we membership That about revenue. has on be of has and delayed let for The others. medication feel the I'll really Health. consumer and Population consumer side strong little a consumer experience and about will been demand great. bit

Operator

Sandler. Your comes Jeff line the Piper question of of from Garro next

Jeffrey Garro

Yes. about to more maybe little ask want marketing costs I leads. bit a and

kind what seen conversion other If you've leads, expand about you're just of trends factors? you could leads whether to quality rates tell us of able further for it's on and cost the or those any through

William Grant

to we're Raff, first kind comment can then of I want do quarter seeing? on that and you the on comment trends

Raffaele Sadun

Yes. Sure. Sure.

So quarter, could providers also did testing spend quality terms those we they we that and were leads. first AEP lead make during that ramp-up the the certain sure some quantity of the OEP leads really of marketing and of provide both of to in

generated do but spend a we're about season think want here. now? marketing us higher of the seeing up part the generally Bill, for talk sets you that during to I quarter, bit that nicely the little of busiest more So course marketing the right

William Grant

absolutely. Yes,

on liked class. difference And say to we period. Meaning, trained and goals, phone, a isn't would So now we the biggest bit have than the marketing who's later marketing the right little marketing. mentioned factor the start our the better that we dates convert. or achieved little really itself. the It's we bit earlier consuming I'd biggest on get a the of can that our a there's Obviously, but they ramp them

different on it more back, we that August, the the put classes can they July, conversion in close started, The and started pressure more whether push see rates marketing. You September.

marketing. basis, about little and And of quality With causing So returns as our would apples-to-apples good class AEP, on we -- feel bit good that said, at attractive compare, of marketing, an ramp terms about still a consumption pressure they'll but rates. look say we close we on I it's investment. you And the in the really feel that if very of during the how the on got. really

disrupted that basically also the last kind back was our industry-wide language approved of on bit with there. didn't approve little a of kind and of carriers issue language approve did the really of the terms to ads gate in kind more a We take out some minute ramp of challenges that industry-wide challenge our some of an where We're wide-funnel a things, of with thing. with bit get coming in and able pivot all that they Luckily, quickly approach. of an track and subsequently did but some

say, those really, delivering, that all are finish I'd things good track of we're that, than good strong we primary consuming. different, about on and So to the kind Other [indiscernible] a feel really those the and AEP think volume we're OEP. to

Jeffrey Garro

people you That more just fast guess clearly, as it's there industry as mentioned. is the and of And I to issue Maybe some get helps. bit within that your control. following up Excellent. on little broadly, a productive important really possible

accelerate could growth over X about in we or the carrier X and or or that tailwinds -- next you as bit productivity those then you're what agents things, little And maybe control? whether within further of a So they're down that's ramp what are your quality your headwinds if doing regulatory break months? the goals important think to outside other the are control

William Grant

you Yes. want to about? talk Bob, do

Timothy Danker

do you Bob, want...

William Grant

ahead, go Tim. Sorry,

Timothy Danker

can some to Yes. the of the I and regulatory. say, I cover operational get side, Bob was going

Robert Grant

Perfect. Yes.

point. operational the a On good it's side, really

our We and facilitation job focus to education faster, on kind people are to create consumers that easier easier get on the make ramp of a can constantly benefits tools of a so to try to then and and workflow. tools we focusing the on faster really understand -- their lot create attention for guide

And to plan are that. of design investments little a bit. We the ton make a changes every year, continuing in

of evolutions doing throughout the make So what year. process. we And do this we're exactly that's kind

bigger little ancillary there's there a little design, been carriers bit in more together As come for on find the a plan harder people. some emphasis little have on bit that a to benefits are

building a and our are easier and to understand for make to technology that we ramped that people quicker. consume So of lot get

ton since like that of And we're the we're that of technology that. steps making we feel to platform on and such described we're a the on but always and thankfully, very we've allows lot we're modern us So our evaluating before. technology flexibility progress of do releases kind there, of unique a

So we that. about confident feel really

Timothy Danker

this Tim. is Jeff, Yes.

So We essentially welcome step. materials your second carriers in a long-term think what the the be of change and interest. to in efforts was We inventory these there Bill great best with alluding changes industry. It's absolutely to sending important provide of the launch marketing that file filed proceeding question, CMS, that first late-breaking will was appreciate kind it's AEP, week which CMS. additional them out this some various the the there, the CMS, we consistency our think will and we by requesting and transparency in all and to of for marketing industry-wide distributors, of

highly a compliant business. very run We've

We have established marketing review processes.

short to little kind time as on pressure the be a able line. we apply of with on players marketing and bit did some to very regulations. we process request this work So meet interpret to a work able short-term kind leverage select It of third to parties channels of all were our industry

materially behind us. that's think I

new of we the these decide a that, think again, I requirements think application by this folks practical good CMS. move is we will very what's reiterate,

good improve term. the I for long be in consumer will experience, the it's industry to going think and that the

Jeffrey Garro

there about them differentiated preferred the industry. from there. that's quick then that's from Just how And lead differentiated one you channels the one do resources, and Anything with SelectQuote's you rest of what verify them?

Timothy Danker

cover to want you do Bill, that?

William Grant

Yes, were through. the we I happy doing think, going came to. was, is the actually of I that we us was filing, nice of were mean terms things thing that in out I differentiated think kind that for

just a was it rework really, of So things.

just differentiated I'd we were things. that and the reaffirmed this what right believe timing just was It of that new, actually the I is So things. was doing it say the fact wasn't anything

bit quickly kind in refile few dials how to differentiator get a of itself. There So little turn it I'd a things just to we can bit able need. Actually, a we're it no volume both getting little to of shows that's something to a to was But timing challenge. sure took get few adapt the make we the change, a it days say that to that's kind a really and of be everything.

the -- by all sure kind track everyone's changes, So that and Tim are guidelines. same mentioned, of those, set clarify make the of actually playing where feel we that's good and embraced as really, but on about to to

Operator

comes question the line Citi. from next Grosslight of Daniel Your from

Daniel Grosslight

slower Going and to people guess then really initially ramped got onboard? a you've issue little pressure expected, September you early labor of there wages we off. and incentives? into And some come verbal to our increase of kind cost be should I to people that in or what incentivized good building Is than lot a the again line in back that have Did rolled they model? that item

William Grant

had would terms to we them -- do on feel to we sure that it what on. later. licensing through. they that wash come we will on incentives come Yes, well, that basis nothing adjust like did in in offer make to do okay, in look I kind of as would on get out per-unit a we of significance But that we what the some pushing of at, believe, terms we to did though,

we in worry. terms our we which Like change ways. offer end our to of we And what on base I extremely had strong. think the I of top think go was earlier did ultimately motivation, of of we was funnel in level terms were getting, calls in was really, I just So like of through we look it the of kind number attractive the mean required our thought offers to, no market accepted, do you mentioned interest the when that to steps that the it job. at this seems, are really verbal number to

of terms load We to we I want offered major comment of that like bonuses anyway, know learning. would some push any was it so did something, that it I having really terms say, in feel provide So But I that? But on guess certainly you effects. think of the to softer in kind do across. I full Raff, --

Raffaele Sadun

Yes.

start call, it about especially begin on I of last bit think Having little that, sales for more little do of some talked going don't just we relative the there's we they think said expectations to restructured to before model our it bit a the it you much] the calls. think make anything mix earning with on I to change [so appealing, earnings I that compensation, commissions. board need to a to

before. I for think within it time that we've range also the that be last would had we the work

Daniel Grosslight

can rate makes year? That you in Medicare your -- that for is current the be sense. expect you remind us recapture what can and Advantage, Okay. you full And what to

Raffaele Sadun

the I good year-over-year. XXs. of where terms year-over-year. to mid- and happening standpoint, have Recapture that. occur. the of in of expect activity up fluctuate is don't be [indiscernible] into improvement different when now. is it's It we that's when would And kind some than just on it to high of know Sure. now. recast We've that does continued seasonally does we are where It it But that kind to dramatically that's

Daniel Grosslight

to are me. What switch Okay. to choosing of any but would percent to their don't like for know if is actually I regards And you this, for the calling a quantify last this be you're on seniors SelectRx, one SelectRx? to meds there good one way a candidate that stat track with product?

Robert Grant

absolutely. Yes,

we're So as a big of impact, that enrollments. far really are kind for percentage really number our the enough and see ideal making not book, of you but percentage then this, as it of that massive a is big

As of to XX%. yes that of, about it, of little north kind say far a getting it's those as members success

Operator

Capital from RBC question of Morgan line the Frank Markets. of comes Your next

Frank Morgan

thoughts, X the to of Since I good going in it to thing. want hiring thing the I'm if you're trying to help does Or that's these this by pick on guess if the bad. one fact about are comments maybe does made plans of selling figure value does productivity, your is make more more uniform the some that's behind later diminish you can plans side, back help. bad easier? go clients that and lack more ball way to some generic, the now about or all on it the this just of variation less a bring sense, In good better term, Or I sort a out these you the the difficult? becoming maybe curious So add for be you're a in plans? would that or helping flip people benefits.

William Grant

differences, to about is things I into adjusting That's top-of-funnel just and may it, places. adjust big really year. marketing also nuanced. to a call makes adjusting there's and what consumers different make Because change like We're really bit of they different that this that our be always to need guess, experience plans tools the the more to a then go really just good to in Frank, finding It question. that our, little some

So bit our be be nuanced. exactly are around need where or But it to tools want those in tracking to feel see us plans. a what and again, building more we makes for little we're we

Frank Morgan

recent are is on is It memo seems the bothering the before in going to it of it churn issue they seems you is know like push more consistent have But maybe about in you're as I way that's -- because some this advertising think this. about Follow-up made CMS. they're something make Okay. to well. the like the sort CMS, worried providing do industry carriers on rumblings they information. for plans trying

any you endgame CMS' here? real thoughts about do what So have is

Timothy Danker

DNA, the chime of around mean in. few there a just I it's has think discussion carrier day every we that, of been floor. past most in importantly, always I we about every sales our conversation Bob feel think, of have maybe has make the some part again, kind very on couple exhibited been mean and have part And quarters I'll over Frank. partners. with comments Yes. of quality our quality We general. I good

big a it's So us. differentiator for

share and have of critical MA. talked the that e-brokers education though growth I about the think awareness to and are some organizations of

-- it. overall, on of more So a there's light shining if they're more

us. it's good for think I

Bob? of do sales seeing once the big feel so part we're is think get you you practices, about what make the good marketing that I we That's we in a the position. impact. why our marketing think, and certainly what

Robert Grant

what that the we're that. marketing leads very partnered Yes. Frank. understand really with we and good because sales really a position sit practices a in to I to I marketing And market of we're it's CPM think and observation, we lower do good rates, materials to low mean think our out try to I understand carriers are have practices, rates, I and CPM think supportive the CMS wants there,

change As for wasn't big Bill this said, us. a

a like frequently the for and like bigger materials think change point, to see others things out churn anything think they our feel that to positioning. it's if things more so potentially there understand some are are marketing want about your supportive I good we of. to when I that And which just very again, we're due can leading or things to that that, they

Operator

from question the next Shields of The of comes Meyer KBW. line

Meyer Shields

been there impact are in longer-term people what has the of employees One, the any great on context calling resignation?

Timothy Danker

paid, but rates. some always top-level our I nothing the more There's we've importantly, been think, significantly employee are agents. across has very career-based better the very, very high I think than kept think of that board, And end, opportunity, retention attrition, fact industry on the seeing our I modest our significance. retention good any Meyer, with especially we

we're think positioned well there. I So

Meyer Shields

the some update older That's holding cohort know years I of you up And think, years last was that. some And I for Okay. said second, differentiating hoping an lapse quarter, recent I the on better. time good Raff, between to hear. just and most then were that rates of

Raffaele Sadun

Yes.

in So down. of last sort year relative should seen that, either earlier, on year. Nothing has have rates both remarks I our stated that last my really to first during changed higher I or remarks, year think lapse and renewal we've quarter the up

the kind now. remain right what seeing we're percent of year-over-year. about elevated But same by So they still that's

about, think we the of year, than first just also this you part lower know in as of are this, off, lapse they think general, half I get the rates the tail I talked you much into year. are in

Meyer Shields

something we other renewal, by And you year? stuff that Okay. had new last mean the than

Raffaele Sadun

Correct.

first see lapse on as both renewal policies. as year I year think their we policies in well first that rates higher are on

Operator

back to turn We have at this over Tim will Danker remarks. questions call the no for Mr. now time. closing further I

Timothy Danker

you good evening. we'll our do again Population to have want successful really season. another great and a forward Thank to all also speak progress and you you again updating the year. Thank a the Advantage meantime, all you. in look time to holiday Health. I new We SelectRx you We season both would look for in Have forward executing and on your questions. to Medicare on

Operator

Thank conference participating. again you This concludes call. for today's

You disconnect. may now

SelectQuote (SLQT) 4 Nov 212022 Q1 Earnings call transcript