SLQT - Earnings call 1 2024 | SelectQuote, Inc.

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Operator

Hello, and welcome to SelectQuote's Fiscal First Quarter 2024 Earnings Call. My name is Terri, and I'll be coordinating your call today. [Operator Instructions]It is now my pleasure to introduce Matt Gunter, SelectQuote's Investor Relations. Mr. Gunter, you may begin your conference call.

Matthew Gunter

afternoon, good and you everyone. Thank provided SelectQuote's And we on Quarter to have Call.Before First our welcome our guide call, discussion. we that to begin mention I Earnings to Presentation Fiscal would our Slide a website, help like replay and a be also Ryan Chief from Financial call, website.Joining Chief Executive available have company, Officer, I today's our our Officer, me will After on the Tim Danker; Clement.

forward-looking the this that statements. current and on our call, the XXXX, our company expectations today, with Quarterly Tim? but to of could our in made and statements.And release we impacting condition will will a results website.And Officer, over uncertainties with differ described Slide and to presentation management's SEC. X, and certain Therefore, those I'd Annual the or non-GAAP non-GAAP of Tim a therefore, September ended referenced Executive during company XX-Q call in financial the measures These some that, financial earnings most of number Ryan's Tim filings materially expressed based the including, today upon concerning investor release, to, limited actual Form comments operations discussing beliefs reminder or implied for on from of and our turn statements Chief be those may Following Danker. like on our Form The not statements a Report GAAP the directly Report we and measures and financial XX-K, made other between available period XX, GAAP question-and-answer risks, be involve are the have measures. forward-looking reconciliation in session.As financial events differences the future earnings on and a are finally, comparable

Timothy Danker

in materially ourselves, across have operating X thanks and We've business each for results the quarters significant to of driven leads. of our most ability tenured our fundamentals, Senior of first and produced high-quality to SelectQuote stable consolidated At our strategy and Senior core share and improved the strong consecutive perform distribution Good XXXX. we now in consistent repeating to proud us.We're achieved confident of and that business the segments. well, joining profitability quarter agents everyone, afternoon, fiscal in Services produce arm segments, made by profitability.Our platform's continues strides importantly, to them both Healthcare and overweight expand are with risk

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fact, In and AEP early our line with for expected in good have execution. been results

Our in and SelectRx of the lead strong in receive another generated Healthcare an scale higher profitable expense to as becomes a SelectRx is see to busy is business. the business, Services SelectQuote selling driven AEP year-round OEP way, the ramping, is to seasons.Put growth during and SelectRx, flow the despite which was by being quarter continued for period XQ prepare strength again expected great increasingly

continue to have runway growth SelectRx members profitability. For specifically, surpassed now XX,XXX both and we and increased for see significant

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Ryan Clement

begin with on results quarter. for the Slide Tim.I'll Thanks first consolidated our X

the diversify but the also the from our continues swings seasonal mentioned, relative expectations, quarter-to-quarter. just was Tim As not to company initial quarter successful smooth to and as

we revenue our selling incurred the are increasing by you to and lower has know, contributes Healthcare for of the fiscal quarter the ramp historically first offset Medicare many in quarter. as Advantage Services business season.We with a been elevated pleased expense our investment As the period

to driven year in can compared As a here, grew revenue primarily by see chart the ago, by you SelectRx. XX%

pleased to become agents.Aside in this the expect million the of with higher Similar executing are streamlined season. we and across to SelectQuote importantly, success segment smallest Healthcare strategy same benefit last tenured pleased and efficiency Slide let's feel selling by to we year for over are a increasingly with quarters, the our and what's with More we onboarding continues OEP the comment, quarter.Turning scale have quarter as it's earlier adjusted results. AEP how the and we in which mitigating significant last from to by of EBITDA season, mix our our and Senior improved AEP sales Slide that to historically X, OEP, XXXX sum, Services EBITDA point, we preparation the targets Senior increasingly but board, turn and expense is grew EBITDA.In $XX we good which a investment the and been about resulted accretive investment. during year-over-year year our was as the similarly for preparation compared a In has prepared revenue we're XX% efficiency breakeven feel fiscal in SelectQuote our with quarter, To quarter.If of to review ago, confident very X. we just business the adjusted communicated for Tim's shy

quarter makeup Let's the review business. for of the our distribution first Senior

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Our more from expenses agents. the per benefit of policy and better experienced deployment

long ago. the the XX% is a over continued Americans and have detail low-XXs that results about run quarter, which strong senior our agent our to is note the Healthcare Our believe full each today seasonally each distribution lead on our bring marketing Beginning sequentially, circle, costs over additional we've point is Put firmly and that analysis. margins with view a refocused generate to XXXX.Let up reiterate turning the your benefit there to these have of continues which has the in important policy of to all and growth. from in we in range years, a turn we eclipsed Again, has turn LTVs, in of for redesign for come of confidence said, per past and context most a produce. me way, in compared provide with rate.And to that our the that EBITDA our improved slower million persistency of Advantage.With building Services mix targeting, blocks seasons. growth, the selling close from produce lastly, delivered year, policy conviction That economics we for Medicare nearly these members, monitor what is with that metrics of SelectRx in stable unit grow of engaged it XX member will in onboarding the benefits customers efficiency persistency source would X membership growth for strategic we observed now To business we year another in we consistent give over X rate XX,XXX can Medicare attractive the fiscal SelectRx policyholders. closely them profitability

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and revenue we & million, our briefly performed with $XX progress and can are was revenues the benefited Combined business Auto the Senior with Specifically, a quarter Services $X for the adjusted I'll adjusted to compared in business. which with in the our year. at ahead. you in ramp which again is scale.Lastly, for segments, employed million totaled strong EBITDA up the to our quarter Healthcare revenues and over result were Overall, see season from and given our X% as slower positive in higher expenses nearly a the and thrilled Home both seasonally on our million EBITDA similarly we've touch strategy Life continues last of expectations $XX core line preparation

product Our the continues of $X Life Home Auto from our adoption broadening the & adjusted & market.Overall, SwiftTerm stable profitability combined and insurance Select totaling EBITDA Auto remained million. benefit P&C hard business with a business and produced Home segments despite our nearly to stable life

Operator? & our noting Home that, me worth to our it's let solid flow.With businesses take company Finally, prepared and conclude cash and are remarks contributors Life your both questions. that Auto

Operator

Thank first RBC. of from ahead. Instructions] the you. go [Operator on The line Please question Hendrix comes Ben

is open. line Your now

Benjamin Hendrix

quarter. being good expectations. a comments, and Congratulations early on AEP with Appreciate line about the progress strong in comments

the made kind the plan of they've to and be the that features Humana in shopping could has there you're given had and model design been to heard contraction of last there what initially from the season way expected if risk surprise the Was had the that was same heading We earlier they line. more and in changes, what this they You some AEP in? year rest thinking Wanted year clusters you there are about anything resembled plan versus engagement that closely that? any see than similar plan week versus behavior that noted they observation expected changes features was in last saw expected. for

Timothy Danker

those preparedness Ben, as are some MA important they things largely much comments I'll ask We those benefits, We've Thanks by point, is benefits.Bob, and benefits most organizations also for joining we to Grant, are to XX the innings. how appreciate would now that designs. I'll maybe and that agree, plans, and anything alluded beneficiaries. critical AEP kind goal this Tim. care we coming degradation question well President Bob were features the it Ben's think make start selling the you some consumer to just good the plan but shaping about us We've I visibility comment most was on plans. features, their this saying, plan And second about our of add I to of going the I globally, But kept not the some it. to in around overall reevaluate yes, really heard got to to seen we've so behavior? plan think, ensure want plan that as started I your season in achieved early keeping those carriers have well. shopping question of afternoon. in our To feel and really into up of and that the managed going think

Robert Grant

Absolutely. Yes.

comments to point, now as that what's behavior a a in which would design. of interesting like Humana's kind believe ancillary conversations, don't of ago a actually feel people into Tim's, the that really in shopping such further things on, more on we actually about plan early the good carriers that become not which get dollars seem behind go our in Ben, and and smarter seem that pull what's long us, care and about about that a or much introduced seem getting is things It's happening and benefits, within to been they So of really, little watching very much that are just deal intelligent more getting we're I'd very way book about.So, through kind seeing benefits really reduction on just don't to we're intelligent we seeing about used care benefits design, that that where they really aren't beneficiaries good those really say, that people do ancillary beneficiaries and benefits investment big we're world the but back putting carriers very strong plan actually, really good bit really indications seeing there. focus for to in feel a we

and XX-day seeing volume of carriers to how or we've that made.We and your they're all we're marketing really the kind plan XX-day of to consumers of those way meaning happening really, is consumers, if whole kind doing plan been those we on, help the where We're talking persistency, things, of which understand much our in happened our kind indicators. should marketplace, kind happy take want we hone helping question those of with the large in what things what's I in feel that navigate those So led indicators the also you business our all we're great happy to not great out. been are also them which changes noise play proper industry now as seeing and leading about. tailwind, X strong. that think we of leading to talking way, books. second reduction about a customers as kind ago of benefits, increased really understand and what about, And have increases we our on from to they're and they're focus we've how And a also there's the the But create in of things on think with years a and the kind open just which where are very our the targeting say,

for think win-win kind us. of I a So

Benjamin Hendrix

Great. Appreciate that.

that night, regulatory the a the of partners of about AEP changes of the here. Last was that one we've the due thing they slower we quarters. to for last over noted talked their on some to And couple of MediaAlpha track implementation staying Just heard some same from start potentially well. as

other as see maybe may to there's regulatory a headwinds your for anything from perspective. a wanted some volumes. brokers of kind of surprise Just supporting some if be And if strong

Timothy Danker

Yes. Fair question. question, Great Ben.

XX-hour had we've this impact on We Again, but for some we XX-years. not uncommon. in expected. we the from are very the And way part Those what industry, the all partners, make been specifically accustomed are leading our rule, to as AEP, better up of changes. preparing carrier business to with any certainly line as seeing well it's almost the necessary in We're spent the both with into summer rule our marketing partners adjustments.

would not in we us, we believe their can't with for consistent the So stick can drive plus see significant own fact that Senior division margins to We of players I industry we the disruptions. any to risk kind don't that XX% knitting. speak August. But in guided we to other full-year to say what

Benjamin Hendrix

It growing in what trajectory for the growth of quick. Switching we're this the fast rest platform on are clearly to benchmark to we we And here? what of you any business business? But of growth budgeting too risk there? overgrowing ramping do of the is you like expect that can the year beyond there and in How nicely. real terms kind or wanted see SelectRx Great. that seems are up just over guys

Timothy Danker

Ryan, lead do to the take there? you want

Ryan Clement

shared Yes. for guide year. the our Absolutely. with I

driven and get important of the we every it and month. are as more offering to around and to boxes. this maturation expecting we ship we is this offerings different We around is recognize That's that are Healthcare growth the members that base really insurance XX%. more from the each out full continued grow revenue, to It faster expecting actually Services by even membership of XX%.

continues the grow. membership so to base And

coming we've generated shared, we an the senior do see date the But over of ramped vast absolutely growth Medicare generate majority interactions are and quarters. attractive the on the membership AEP have been strong having but expect distribution for opportunity really prepare grow margins up members we've platform, we that. to we -- As as the and to of outside season, the through been

Benjamin Hendrix

ahead. Go

Robert Grant

more talk of Sorry. good growing We on base kind harder to X,XXX was are. kind member point, was operationally of customers, revenue really growth we we're feel Ryan's membership getting fast. happy yes, than that customers. what where growing more boxes, would I growing but going to pace question to more anticipate are we're very a I at just Because with full excited your we're where this about period. we And greater operationally really, operationally. say by significantly we too members, XX,XXX tenured

are customers Our extremely satisfied.

to talked about, are Our NPS friction-filled incredibly really most That's we and excellent. which are strong pharmaceutical, businesses. pharma [ ] above a space, ours scores relative

this So, we that. are. responsible way other feel done we finding really and that we've business on a about To really of point, senior through where customers do click the on conversations We from TAM great customers that senior too, And to and Tim's operationally the we backs really go good is channels. in has. feel see that, an massive.So, down supplement opportunity to

about own in we of expense. necessary same And We of of great this final own that with And we've a So our business. too, are and an its started very, out that past, -- it's takes that new find built proven Auto think independent insurance one our mousetrap, as its kind & ago. I of in now with offshoot years finds thing now that the our business life business a Home Senior customers, customers. very in good ability out large feel to we the kind players we've now TAM, this largest space, that

So, on market really, to really bullish towards we our are that. ability

Benjamin Hendrix

And then you. last Got question on SelectRx.

you're some can where SelectRx this benefits leading Just are you with is on with design? receptivity program, work carriers hand-in-hand wanted to of to which the supplemental get -- an extent mentioned of some that popular, are among it anyway mail Does plan order drugs can distributing. SelectRx thoughts to there the idea popular, plans clash

Robert Grant

You proving plan, we're back does a carriers. we of design the and other actually changes, when the doing we're in doing say, more have boxes with overall job I'd that We're associated. hey, better not has programs to job than year adherence partnering this great said, significantly only go good happiness because a it ago, better of a a data, stars, the with today, carriers. partnering benefit positive persistency to everything

So we feel great.

We carrier also have within carrier. of our one That's a per healthcare a MTM of business kind also and industry-leading partners. a rate completion

the feel is and average about carriers. to through Actually, kind eligible behalf extreme And were should ever or has we're is their are before. space order average than the expressing one over They're mail really X of on that have their of and drugs those believe concern what what the And building box pharmacy looks X an like. while clients. mailer, That we our they prescribed. seven for partners of doing very mail shop referral that, the largest order, we opt-in do supportive So, member folks stronger source, since the of this most we really we're they ability successful call consumers business. our mail and on have drugs, partnership order over talked as not around aren't about we've enrollments. that be These drugs drugs we and right.Our taking has this XX

beyond see plan. We as continue that So, we just as it friction. MA see an partnership don't really to opportunity it the

Timothy Danker

Yes.

all curves. can said what well high a that with then positive. very been I really it's from feedback solution, very aligned and clearly value And a lead the help we life. gotten participants has ecosystem feel mentioned. cost can adherence, adherence are that the broader that one the Bob think happier solution very We in think I different They consumer all that we've help healthier, the chain, through

Benjamin Hendrix

Great. Shifting gears again.

P&C or when but it I on kind forecasts point, be we kind -- hard feels cycle. inflection appreciate see towards of the thoughts when quick, that hitting real change material Just any market Any may of like thoughts in we the an on any comment we of space?

Timothy Danker

Yes. obviously, brokerage. we customer also also quarter, And signs certainly, through very We've rates some activity market. when cash exactly helping There in in that the of help re-shopping, good of know hard resetting but we better terms feel we're certainly -- noted, seen as company. convert the carriers business to P&C progress right, don't I having market have are that, close to soften. for prognostication ability may of The or underwriting for some in proposition, customers any even we that strong specific like good are terms we've last on our our a their is that that It's continues that. and well. quite the is value create perform meaningful some the the to of flow but that,

So on to Ben. more that, come

Robert Grant

could offer that I this My XQ was fiscal in there's appreciate on year. see. wondering question. the point you cadence volume if just thoughts the mix Great. at the EBITDA any last you typically I commentary

Timothy Danker

Ryan?

Ryan Clement

Yes.

deviation business largely I expecting and one we scale business, in that The which continue call we to guide, think what being various exiting the our recognized. Healthcare Services and a historically the the grow business. will higher overall and shared year the earnings slot on the margin cadence single for and margins last segments as in by low we're that from entering quarter EBITDA EBITDA that as we've digits, we distribution one the are rate projecting obviously, materially at follow

Operator

no Therefore, Danker will Tim currently to remarks. back I further Thank questions. hand you. for any We have closing

Timothy Danker

operating next We the scale flow. look good more the again, 'XX company.So, be we Healthcare our segment. cash more again Services strong Well, Medicare Advantage speaking busy our strategy. evening. thank and you of Conviction even believe drives as enter of for leverage season the joining grows a profitability we'll Services quarter, in us have what like and each again, segment, it certainly we quarter. fiscal same. that's the And Healthcare lot a confidence with to Everyone have will you of for To with and drive forward our say thank for we

Operator

you today's joining. all conference concludes call. for This Thank

You now lines. your disconnect may

SelectQuote (SLQT) 2 Nov 232024 Q1 Earnings call transcript