GOCO - Earnings call transcript Q2 2020

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Operator

Good day and welcome to the GoHealth Second Quarter of Fiscal 2020 Conference Call. At this time all participants are in a listen only mode.

Following the Company's prepared remarks, we will conduct the question-and-answer session and instruction will follow at that time. [Operator Instructions] As a reminder, this call will be recorded. I would now like to introduce your host for today's conference call. Mr. of President Vice Koval, Investor Relations. Jay

begin. may You

Jay Koval

I Thank each thank earnings everyone. GoHealth's you, and good call. Joel, want of quarter to second evening you joining for

month company is our newly first listed Our IPO a a ago. calling

projected Joining me and Officer; This Cruz, Matthiesen, expectations, Travis on afternoon's Shane risks Jones, conference Financial and forward-looking Operating in numerous Chief our and statements results from Officer; or uncertainties ability based may those Executive factors predict. the Chief Chief to are today Clint actual Co-Founder are Officer. or Company's call future statements. contains current materially differ these that cause results the to determine of control Many anticipated will beyond

obligation to not statements reliance quarter You place press to of fiscal today, information, statements new for on any undue our and a issued second of close events release the whether market forward-looking containing After these results or undertakes we otherwise. due should any update future no the XXXX. Company the

addition and tab. consider Exchange to Securities GoHealth's forward-looking Investor that of should materials, the factors the with Commission. and conjunction filed risk release, under website found our release the Relations can with risk the be XX-K statements. in and the listed slides Other Form a on press you we've are number In our significant factors in In both presentation described XX-Q reports

release financial presentation. are These provide condition, measures, Company's this investor operations to discussing and call, measures. they investors management non-GAAP most measures the reason contained believes in of to results useful regarding reconciliation During directly we be press are GAAP the will and the and financial information comparable the financial certain

to turn So, the to call like with Clint. that, over I'd

Clint Jones

America. and evening future I mission second as the first we in unique a a results Company, us main vision summary everyone thanks to our Thanks, business with our quick top-line as growth, manage to and as the today company earnings quarter our topics right for well quarter investors to including; their actively achieve call. our marketplace Jay. focus the of improve announce positioning public and two we GoHealth's outlook; as in This XXXX share how excited our on is covering joining we're second and for for Good on a and second, fiscal plan in profitability, of our cash healthcare balance first, of results access review returns. and

state revenue results start with No quarter, XXX% powered in So the Internal quarter the driven is grew XX% segment. as our here in largely surprises let's with Total by growth expected. that, came revenue results. in net second as growth This Medicare which we to COVID-related XXX% back by delays and was in due approved contributed the to Medicare to are Medicare experienced additional Advantage CAS. increased agents efficiency, from April commercial held Revenue increase quarter growth in that June. submissions licensing

is partner as due options the best we to very concerns. market agents. to XX% and business evaluating our to seniors their force and policy providing a a We grow social secular traditional and distancing shift closely increasingly in second August making our track large are our Advantage advice down the significant member to on carrier record with expert educating of upcoming them interested options, from exceeding delivered model carriers standpoint ground GoHealth during quarter. plan own The EBITDA with these a quickly, track we're of growth COVID hiring workforce, help growing this towards counts unique has field Xst, investments helped through and needs. the licensing up As substantial accelerate their the with address have expectations appointments Despite Medicare of in in on we slowed of as July. consumers for AEP, their and

and levels service customer They high deliver months. to up through XX over post-enrollment able our last TeleCare ramped the team. engagement are dramatically also We

a First a revenue in TTM Medicare XXX% Internal basis. Medicare increased in CAS. growth on increased Internal points and to XXX% XXX growth XX% XX% basis thanks to half Medicare margins

the our business behind positioned revenue we're million rapid the plus we delivered well first in the XXX deliver growth million half Given of believe XXXX. initiatives, in momentum to we XXX to net

and LTV expect Despite to positions that margins, on EBITDA XXX will in gains million a us maintain XXX an deliver at a in to We allow CAC. on segment aggressive driven XX% us leading our laser Advantage us EBITDA technology by This of to margins investment efficiency above These XXXX. are adjusted adjusted continued growth. Medicare for to focus million. focus well posture help industry future people high

volume a delivering returns. to and guideposts to of from As on utilizing investing. second their from XX%, at We the growth expected through my of optimal to it, and of to the prior excellent CAC growth. year. value, and XX by our say that acquisition cash a to leads a flow This right is range towards value commissions behind high optimal to Medicare our the scale the customer team consumer superior decisions calculate divided XXth allows how between further ourselves TTM continues the CAC proud margins months of our on quality to economic data end Rephrase positive, us to With us validating This almost Medicare first we're to on up payback represents as very and ability competition and spend cash particular many willing X.XX, margins X.X for cost LTV of trailing GARP to distinguish the unit point technology gross our standpoint of I'm topic, with by end Internal CAC, correlation LTV how X times. shortening June LTV by be price. for power the similar policies. high at high deleveraging range This execution. to build based delivering allows validated momentum quality period high, LTV year delivering to roughly CAC the and to of you growth the that year market much the relationship It's relevance lifetime is a and the profits. the as to know, a to correct one to effectively

As majority marketing variable relating and to agent of are costs you our costs. the know, the activities

Our work and to metrics vertically modulating integrated LTV another goals real funnel allows and we optimize certain us to in results, time. way, desired by including demand CAC, levers. balancing our supply Put towards

examples few the a this levers at to our win use various me Let market. in disposal of

example in through adjust The internal to we want we've customers our a they amount a know market spending of micro lot enabled can be them. call. lead specific make volume We volume value about before growth. a targeting. our Because the for for consumer to predetermined on expected I we a us generation, the first we and approach, produced even generation is already share lead because focus an targeted our agents This deleveraging around for have surgical

Our tier LTV approach we LTV. our top from acquire precise CAC backwards and is the to known to methodical, driving cost work as

our geographies, Our conditions year anticipated factors future other carrier time to incorporate segments, we a amongst that streams mix, LTVs. into enrollment can the of vary customer

CAC plans special strong, LTV Over our by can driven a for several needs the these LTV. We SNP lower policies. tend that quality part rates that because high and SNPs to marketing enjoyed the levels, although down achieve agent quarters, higher growth, our plans to have our efficiencies, LTV targeting target pulled of last known we deliver as we've conversion average in

to the level how second our investment match we own their schedule The the of demand agents we time marketing is creates. our and control in team internal team that

now improved routing transition and continually determine many of a we licensed opportunities, adjusted within rates onboard, from a times. trained We've to specific Given home to technologies disruption. claims best agents When hours conversion the shorter higher new how call hit, and various number were of fit can work environment working lead we consumers minimal XX drive lead of the during COVID able through score need handle we we generation first how with optimizing day. to are are with times agents and

consumers agent of around these streams is of customers, long-term supportive we the that Our better aligned XXXX, data better not compensation In dynamics happier plan of point tells engagement retention. commission more sale. closely and at usage, just our us agent ultimately the with

TeleCare whether strategies to due issue. periods event TeleCare of when highest a over plan post-enrollment move their take and significant enrollment about educate zero the like data, dollar plans and or then some able XX the during Throughout shopping can benefits to to we've cancel other develop for new expanded consumers health first two to premium surprises been churn, their call plans members days or period. life teams safe help next a Our minimize annual the unexpected during for

plan either new over a keep the We retention find same helping or have enrolled a them platform, of as helped original on GoHealth customers strategy seen quarter those their plan.

TeleCare agent insurance in streams incremental health growth an as consumers. to clear, to positioning our to to innovative team administers In carrier offerings, To become and programs marketplace assessments generate years. addition partners, the to also are for persistency, coming increasing revenue such our health other benefit GoHealth go additions us pharmacy be for management risk commissions the over for our investment the

partners fine been we The new adding with technology deep through our tune few consulting technology and final integrations use a grow shot From enrollments. XXXX, strong third and Medicare them model a XXXX our levers their rifle to to has like carrier to science example a help of to carriers. approach our and business partnership data

methodically the our to approach better business at us more grown, plan As and fit. has their choices through Medicare consumer we've enabled marketplace to and has carriers platform. high new increased This to LTV margins maintain CAC integrated adding been

of are coverage. verse offer CAC the plans to and carrier rates broad LTV coverage markets retention less where and highest we leading the with markets Our

expanded we we the towards United, have carriers and will including Kaiser other many XXXX, some coverage As with Aetna top look of reasonable.

the of underlying an period for our are such Clearly, in LTVs macro as we And and of favor secular over very mention service We choices regulatory potential agents acquisition factors towards tilted new virtual carriers for are our new size While costs. marketplace. lower long-term control, combined a LTVs and will need ramp over Medicare changes. COVID-XX, plans, traditional years also positioned policy when lower shift from significant consumers higher be given that business about market, learn adding the customer us supports unemployment impacts there's which the growth. these strategy trajectory forecasted that with there believe for with well not most are future our fee several as its expect plans, initial up Advantage as right growth coming to now, proven our

us eye allows advantage are optimized. better supports data the hire aggressive to we provide believe business more book agents this get, on meaningful we with efficiencies, industry and which careful cash we to should the match This being effect leading bigger allows The future. agents disruption micro ratio. will strong that for during growth of they targeting more with towards better our scale. CAC those first mover consumers for LTV flywheel our shareholders allow build COVID flows even us build side prospects. scale generate in to those to generate Additionally, model can a More that more specialize to through growth insight, as This a the

our found our we through because and word ago ownership minimizing that cash and post-IPO XX% of maintaining mind. burn. I with decades dilution money management, the focus GoHealth unnecessary balance about two cash a on Brandon comes is think As stake Cruz to own

these carrier about lot a paying XXX, business than the be Travis' Rather waiting have cash that from to reduce decisions. relationships. commissions found relationship pay thunder depth flow, create care on we well your to Because frontend our business and cash simply programs upfront reliance create our we of of margins for enrollment steal where capital. returns fund lower and upfront to cash costs say carriers, as able where a we marketing I'll our collected cash cash long-standing to then on but growth the GoHealth to on a commissionable cover of have seasonal of fees existing revolver, external some result with carriers it's So, than through and been our challenges, programs to high ways the combination agent rates the helped the the and as are agent cost marketing and

other leveraging continue time over aim response meantime, we enrollment from can delivering I to payer offer unconscious engagement. to growth calls. the member a creating Non-commissionable future position provider, health patient. a the our of to carriers revenue member are But frequent creating controlling margins, enhance revenue More marketplace streams and behalf and a to creation. path are In creating and from we encouraged do utilization legacy and commission based will value help of between value earnings shows from on balance the we will the connection ensure post-IPO, compelling our plans strong to through we has will the streams, favorable now, with Now traditional and opportunities for the growth of additional for these way our of outcomes, supplement P&L running drive value profitability continue TeleCare spend carriers of our strong on and better more reevaluate including been programs visible on the and generate satisfaction relationships. carriers. time be rollout important care some will of customer an on We and incompetence of by revenue what our our objectives initiatives of so can at through control team. interactions at

will We Medicare that the our fair than invest to market. and resources, share Advantage large, make thoughtfully curve, our earns very GoHealth continue allocate more of fast of growing ahead a sure

our some me to additional key color on the Travis now Let metrics. financials call turn and over for

Travis Matthiesen

to investors key share highlights front for today for use the some of mind Thanks, than well months review issue release, is few a of an of that a this perspective as will on us hit of XXXX of to first additional time six from Rather as joining financials churn. for all results. our our first Clint, I and the you repeat in half all

me through run numbers some let from first half. the key First,

we mentioned, Clint Total period. Internal area growth to a and onboard we our to as As enrollment continue Medicare a our segment, jumped new company. delivered as XXX% in in submissions strong first QX's in annual focus licensed advance Medicare the agents of half,

aspects better agents' only per conversion We customer for versus our but value other And higher remember on the consumer from the upon variable with retention sales of day. application, is is long-term also individual This agent compensation efficiency scorecard aligned are submission an XXX% driving increased and that policy. satisfaction. a on not including paid and our of our focus LTV balanced of an

these center to remind of and that external that External call be our able let Regarding segment, virtual are me rather but the Medicare GoHealth's power agencies leverage you data agents agents, not independent compliance outsourced technology, internal GoHealth under manner so similar to compensated retention They eye are help paid enroll agents towards contracts. a an are with are when new only they long-term also members carrier in received. to our commissions

internal external been For LTVs from the segment The segments. have no are reasons year-to-date our not mentioned above, abating. of our that different signs show powering dynamics materially growth

believe the model. COVID In business to has to accelerate we served fact, our only shift that,

become healthcare of carriers we Concerns of our expert front a if approximately than and education, As internal homes. choice can leads in with ramifications, our exclusively the serious first more in our advertising Clint need from increasingly almost and plan. utilizing the in to an and approach. have mentioned, own because XX% cost superior they interested help transparency wrong eligible navigate results safety half, efficiency consumers We consumers agents efficiently on acquire of advice from for over integrated them enrolled efforts, that focus the to of are members their decision and of mind the generating Medicare marketing they the internally

XXXX, online channels. a acquisitions grew scaling. marketing dramatically approach in XXX% our balanced leads of customer half During costs, while first marketing XXX%, a improving were advertising with and by efficiency, through only the offline generated team in to These successfully increase

prior first first opportunities basis. will $XX.X an EBITDA benefits to our period. X.X% meaningful the growth ongoing agents create consumers selling count six large growth an Scale above margin to over for operational the prior to with a brand quality the on delivered X.X% the million, year basis came the of important From to breadth from months investments continue of to find it's our perspective, continue adjusted equally to of maintain high head team period, G&A to Medicare offerings a year down as XXX revenue revenue of beyond year's over to support agent XXX% the able also during throughout that $XXX. greater profit over the percentage enrollment build leverage versus and our as first modest we ways Medicare XX.X% opportunities year, half up XX%, a We year, of points. nationwide from Advantage continuously was corridor for of benefit EBITDA of generate at to an half a improves the despite to of increase in We operating The Adjusted LTVs drove trajectory create objectives. be X.X% reach with scale force tailwind a that LTVs time. annual through

In and growth in LTV, the CAC appropriate utilizing LTV SNP deployed. point ensures note our is a to delivering the new technology and it's LTV high-quality our our and micro CAC for Clint deleverage CAC our this drive an policies strategy in is results make carriers to equal, $XXX target While drag to high-quality business and does population choice on the overall paying market, could growth and focus commission portfolio. that not our in that decision rates results? LTV increasing me this are also always strong year are the reference share manifest large growth amount our lower the to fully-integrated with to better that initial shift cash important let of LTVs. strong While strategic that margin we carriers deliver out Similarly, returns on for we create a to opportunities, average all high fit comments that our around consumers, as several average, to lower LTV have the platform us. across top created framework new SNP near-term for business target as these CAC we to utilize How

As drive Clint you greater persistency. mentioned, over year. consumers, time, expect as carrier fit, for our better to And would payback period increase we is options approximately our the one see

our we me to business is current Let of churn. first observed more thoughts material note vintages churn is churn, analyze book second My share of book we our our cash in metric. apples-to-apples, My not cohort collections business. LTV a topic comparing relative the on that like-for-like important on it's that expectations. and to across of a better business point the we few When our and perspective are point is changes on and have

As the continue new segments, LTV to geographies, analyze we new consumer with net and vintages, LTVs we while it's carriers, material have not our expectations, CAC are new changes changing our a sit historic as cash has here LTV, whether the validating business been of they in our underwritten will LTV, are today average by or in churn all on our collected impact having target. to impact line

LTV because other LTV strong acquire returns cash combination importantly, In conversion and end of deck to down significantly our Trailing as period. to our per and it's agent cost revenue slide higher is faster help at CAC overall CAC than commissions first we our flow. during rates. excellent margins our the in XXXX, and to drive Third, increase high high highlight the included investor and most that. months of new of efficiencies our competitors. XX costs to was a the opportunity driven by We cash model and than our our correlation that year business Fourth, is marketing times generates X.X of Star, CAC North with and range, and consumers

value and the that and our will million, outlook, CAS. million on in XXXX than to competition, improve a which utilize look as Internal create increase by technology expect growth lease total benefit some faster XX% to our XXX the represents consumers our to details of growth Medicare we primarily now of lengthen in for to further Moving build driven full revenue shareholders. a to alike, carriers our This the year both a scale ability we more range significantly XXX data at come to and our midpoint, will

As mentioned revenue. year strong in a will of XXXX be other his Clint in our comments, growth

create in on our year generate of our While our towards carriers. commissionable worth our monetize during for part of these year needs revenue given the our of ways other million and agents noting increasingly believe the streams million of the platform, adjusted In full efficiencies the cash commissions. roughly to the that scale our XXX ways our incremental throughout Platform, new been year. technology resulting we an our remains and growth. bridge expansion. investments they of generate heels balanced business internal seasonally footprint focus, XX% months are agent delivers to that the during XXXX, offset been early achieving XXXX, nine to for flow And excellent team including better strategy low area of additional Encompass first of XXX growth important we EBITDA tracking success It's expect beyond for in to profits. and have main And we the and carrier we made EBITDA of our year, model utilizing are TeleCare AEP, with full expect to carriers uncovering in range we have XX% result investments, value our one-third create agents to the our revenue on large have the focus we large an well should revenue to GoHealth's values additional In profit

of current to million cash in be on track cash characteristics business deliver million, to favorable our the model, capital. to only operations XX our XX growth we post-IPO expected flow and is from raise without Given additional plans needing to XXXX negative are

million roughly help count roughly our diluted post-IPO To your shares unique today and million you roughly net share focus add cash can carrier and consumption relationships. year, with efficiency the in debt XXX this we so XXX XXX LTV business models, limited is is for on model the cash million. to to CAC, perspective, volumes For speaks our our this year revenue we full believe of

we deliver summarize, business confident discipline. by have differentiated So growth quality that to levers we financial the are multiple high model for shareholders winning powered and to

right the visible have customers acquire in our margins, to LTV price, teams returns dollars, measured investment new leading returns. high EBITDA of the industry generating rates Our plans CAC at on and in those and to cash place by

we data our the to open in call line Our time are investing insights which efficiency and in as enormous further coming process. market our increase driven an us over over that, becoming position streams, Q&A. the revenue we scale And and augment growth can fully the integrated gain And Advantage additional with and years. top platform better bottom to operator, we'd up like to Medicare

Operator

Instructions] [Operator comes you. Thank Our Elizabeth question Evercore. with first from Anderson

line open. Your is now

Elizabeth Anderson

churn a levels regarding question quarter. had I in the your

nice from be how the more to any high cohort You gave of think you if of And terms certain COVID a enrollment special commentary then a prior? detail could versus the bit newest in you cohort period? that in have XXXX what little us I give you covered the terms with us has saw as trended to specifically,

Clint Jones

the elements to and Obviously, been conversations little the of to there's market the we this, we the I want think for key how in Thanks question. about around and time and kind how of noise business run take you a around our educate churn. this. a lot

hyper is your on focused LTVs, to and using cash this that obviously, goes flow. churn LTV, why important? you're or we flow, So, cash one what your element are predict and Obviously, into is future

remarks. mentioned I in our several that we think times prepared

that And you is about important. have we in think if of Travis that's our So has cash why collections how this our so been. kind expectations about, are right with mentioned, line think

changes the that's So have number we point kind not one. material in churn number of business. seen Point in two,

going The period those think kind the points look have we we customer in I'm to of business, running two way points in about. I the of at our are journey. main talk So, two the

and of has of A levers our impact first factors. which factors there start with adjustments, is enrollment data see real-time source, we're marketing position type surprises. other modifications agent we many are we and don't the the plan don't able see if positive carrier, a our to elements those churn, seeing to and or surprises these where many the in SNP and Medicare, in we the that performance, We to make are new in in lot geography, XX trends. negative control, see want insights, Our and days and we

make are mentioned. I'm So, XX talking next call by see that things cohorts, hyper a that is I've focused any are post-XX How be disenrollment that seen days, positive part different as data, So, in ways macro looking about again, that we area, XX,XXX conversations that the we hyper, we macro month on, macro plan? another us way And we to and the control we at and now, by as we're made there, over would invest there but about in a lead up will ramped and plans of there, get that And Then trends XXX they? we've happy more our area with consumers actually negative may obviously interested talked as the and the in disenrollment team area. first on there. is turn we period haven't close having be days we well. why and less investment other on we in believe they impacts different in a can our numbers more people TeleCare it have

and unique defines in LTV think, metrics ways. in churn So, industry and I this everybody

is So, us against peer not I think a the right set. comparing

how assurance important? Because that cash It last goes calculations. period that's on. you your get we're flow payback The why your Why I'll in generate so just is, and Again, is cash focused so overall to that. the other, LTV the just important? predict your point LTV calculation

Travis Matthiesen

we there, look and golf that build turn we our in outreach, Clint efforts the I the the high XX automation, area period, turn differently. LTVs on what not are data And cash it it's add customer TeleCare And focusing post leverage use to dynamics, best just to where and our a day improve our marketing we'll can And period. at payback market. can if that disenrollment quickly, de-average a do continue because only to but majority early day has XX very really impact brand, disenrollment of through we on the the

dimensions market how market the the talk seen. attrition to we period. arbitrage agents variances significant see we that to during results our different we've the in a And de-average and we're across leverage that early So, and and and to is customers going disenrollment lot about every different get data that different consumer dynamics the related

We here in competition, the really have pain Clint, be submission we XX and that a the carrier as that and both and example product actually days. of over footprint, a first competition geography. low day But during that this effective markets see get still submissions rate as there's where as well you XX% that, mind other footprint, there's to strong it higher in some markets XX may we As retention. effectuation policy the good would of the without a be our canceling day XX% XX includes become in lasts mentioned, are of range XX% date maybe growing as retention these, in keep our where less to

for price because know disenrollment. in market ensure pay early that rates going we add more carriers we both So, to And to those can to the geographies, consumer. those with significant trends again, all every also our leverage to right we paying get to acquire the business consumers retention we're to single in variances areas, with our platform can higher but that, ensure that we're de-averaging are certain strategy things

of well, earlier example Medicare we beneficiaries the to relates types another of as mentioned call enrolling. that we're in As the

we'll policy. leverage and and the seasonality the for exhibit XX costs consumers our reduce to and in us as will rates as acquisition higher enroll their consumers we SNP disenrollment continue do plans, the days lower the business. during of So, target But ability rates to they population attractive target first this effectuation to of

to And things every we leverage and to these can so, just continue the key consumer. how the data our examples are pay of price for right market de-average

paying focus the right and aggregate focusing to are disenrollment of So, sure for using from from the de-average we're on, perspective that a to instead how or We'll perspective? price consumer. a performing market every make continue churn on our data in we

LTV we is So, which important laser-focused can the to CAC. our be on metric,

Operator

mute, [Technical Difficulty] please unmute. your on is line

Unidentified Analyst

slide, I expect other you're from reconcile your have the the strong? to commission able you but less on cash XX help this flow the to to to that can should differentiation your on important So breakeven million expect be you very than fact negative remain cash And that coming fact you renewal cash you months. that revenue think that's XX have XX year. you a us guidance million negative years, flow guys prior still But

that. expect in we flow Just understand or Just year? like year trying even should help this us why positive next reconcile cash to

Clint Jones

So, part I'll the take first of that.

I expect we that leverage costs, think other can So and Travis in and right speak contracts expanding Platform. fees, funds don't decision kind drive business of our slowdown want that These contracts going we in in long-term to in rolled our and continue business the growth cash many bit and keep cash flow quickly. And are we're Travis, speak but little results positive, really cash the in development at cash our a flow, flow become whether we are from on these with continue. recurring from And way LTV our can rates do marketing a case, areas and focus And overall match to to more? we to that. we'll We revenue kind that's flow to of our agent that's standpoint, think enrollment that a CAC. for you Encompass out growing around to revenue, partners, multiyear, positive newly and a that

Travis Matthiesen

Clint, Great reiterate. would No. just I point,

initial year, XX a XX as start payback that of while as that book. first payback receive during is, consumption foremost, commission, kind from And second, of the piece that our QX we our growth growth. our the our is, I lot to because other are represents get think in peak important cash nature cash accelerate that XX/XX. rate. and again, continuing will well this seasonal on as will within coming then obviously, the First one of again is again, gained business, consume to period start of what period. as of predicated the year And we year renewal And is to full the commissions again, we the guidance With

drivers the the again, So, seasonality combination we're combined think I two biggest of given XX/XX of of with there. the that growth guidance the are

Operator

you. Thank

Barclays. from Valiquette with Steve Our question comes next

Your line open. is now

Jonathan Yong

Yong It's Steve. Jonathan now for

large you LTV of relation population bit, regard? on LTV from members wide the terms to impact recapture adding that you're unique quickly something mentioned may that in of Just be LTV then in that because where for a your did And Is it through outlook carrier off? any as targeting the products mix. on, would negatively data about the do just the just that somewhat have impacted to churn you're

Travis Matthiesen

I could so start. Yes,

in It and carrier several about while new and there's from lower come elements platform. So takes commission as at on -- for carriers, the agent really, rates. the new a we a up agents adding ramp addition, we may obviously, here the carrier think

this see an there our So potentially higher as fully lower agents time where and period initial of plan. become churn may we understand be educated conversions

take So, we we've LTV and this scale we'll test, whole think new a plan from you We'll grow if these just there, the roll out, taken business, will. for we'll gather out. to I prudent conservative roll as up, out. we'll more we'll more about We start, us think be of how data a much and it'd and we approach conservative but of to standard carriers approach, learn, obviously an from as won't ramp

gain new the touching grow scale about over just time, point, and and we agents. how data to think the That's Now, learn you we carriers that that shift there. as from new will

Clint Jones

about they either engaging XX% selected going are plans. on using up a that about that And And then we of consumers reach Travis consumers are We TeleCare as us call to the we're those product to rate will to that our predictive which recapture, talked consumers mentioned to our to figure them. monthly to and those they with score we will we that product on leave consumers that think reach team our turn base we basis. follow that call recapture we we cancel using we likelihood their find looking technology. with about analytics they that on the determined out up us. We're speak the end with or as XX,XXX out fail consumers on we based and how to fits question, think that out to the consumers, the

Operator

you. Thank

Our question comes next from Tobey Sommer with Truist.

Your now open. line is

Tobey Sommer

your I how your give we a little setting, what it wonder and if quarter? a what context us for productivity year are And color ago? maybe compares in of as the bit into that a us could experiences a virtual assumptions agent of head in give you on productivity, fourth

Travis Matthiesen

great it's So a you. Thank question.

going better our understand capabilities, we out characteristics of what that a marketing data that's insight, type or lead fully didn't a So activity. obviously, yes, to grown can I Last that challenges. we've think managing really virtual, more everybody and set is this plan match all is a the not with And unique consumer, agents it's And kind of into routing, news productivity driven the kind it's to we of those think whether the I moving And a in year, around prospects agents. know as from we gained kind workforce year, we're rolled COVID stayed remote increased creating modest we our and just agent has expect. if the the years conversion, expect in and many source sell cases. increase matching the several increases but AEP good has last best, I of really they look by that same, actually we at,

get we So hiring which their we're And year we're get ensure we're onboard where I in see people home. we typically lot this transfer Luckily know same really We as excited a we lot get years excited into about call learn can of to were board that more so on that or didn't agents we about around a agents think we energy that these past, can really and AEP. ways sooner AEP we centers sooner before is AEP. right board had our in in capabilities. and in able devising that, the during to

on that we've really and got we're seen some excited we've been unique about. So, testing really we've solutions working or

as and the is I of a energy home, AEP we one that think So levels to honestly at would that that's challenges get to way but do that. momentum we be really great same just maintaining really, feel and

Clint Jones

sales as actually those we've increases well of talk at two per 'XX, conversion would qualified agent when QX the over metrics. kind Yes, of to we add, rate, briefly measuring of we performance. QX and their agent day. of off applications I look about metrics per opportunities key receive, agent just they look as both in 'XX, their at, that of We ability submit seen

we two excited very So environment. in operate continue those are key that as we're about this and reading remote indicators post-COVID to

Tobey Sommer

another Thanks. If I ask could question.

the very could examples seem new revenue enthusiastic of some possible, non-commission platform you the unlock what You about of could opportunities? If terms Thanks. give those the new platform. sources and of us in

Clint Jones

much kind more there, it really with extremely more that population vulnerable especially capabilities, how over gets senior about help of the virtual like that's excited about, us virtually absolutely, we think I out. impact think, make get excited the and now and are this about an phone, ability Yes, we you and telehealth to and our folks

risk means, care that a of know these about an once a and faster process, big understanding enrolled. through, health- We deliver really carrier that Obviously, based carers, in couple need, time we is can now value-based We program? right? prevention delivery, need somebody assessment, that, Do risk standpoint that right? them the health consumers that around member preventative understand a impact immediate they in industry Did to get they is into screening in that's understanding provider enrollment. grocery carrier with help the around, So, things an standpoint. get a examples is that where care a customer is can't a can follow-up other assessment mental example. We there, and is, partners that care models. during models. think have do a somebody so needs meal you COVID, can of back, don't we situation or How opportunity isolation Obviously, the from enroll the all from do to These COVID, go If they determinants in are as We there can to only a So, help appointment of transportation not from and especially that our get which social them shift that at right, plan's to value when talk for can't we can to and triggers carriers, it and doctor's consumers there's take we care. for we Enrollment who with into but up, we us well. much where to a set chronic the to there's potential risk program? value-based big health consumer need through really all connection help to their exactly care it there need a identify a and the there? revenue they help then somebody make they a health. them dialed a during get

move we be So, that to it's get got ecosystem adding great a services of a excited list and we this we've we'll unique really platform that about, as forward.

Operator

Lauren comes with our Thank next question you. Stanley. Morgan And Cassel from

Your line is now open.

Clint Jones

Lauren, to ahead. go you'd like Operator, unmute? okay,

Operator

our question of America. Cherny with from And next Michael Bank comes

open. line is now Your

Michael Cherny

I hate topic. churn question, go to to know it's been dominant thanks all this color but the And Good the back evening. for I because far. so

or talked about material those Can no up down basis? I just a on a us guess, real like-for-like expectations. more straight you also changes You on question. forward tell

Travis Matthiesen

cash our driver our talk churn expectations. Again, a books. just, of expectations, And been factors, And those been line in were have would the geography. we our again, when not LTVs our again, of and relative those And carrier by of back to Clint mentioned today. it's to what that about evidenced off as mix point our we And have with only churn earlier it's is in expectations material is rates seen not have LTVs recognized Yes. change. all our I again, we again, mix, collections the based consumer that, LTV,

Michael Cherny

One color into, all on dive appreciate rifle carrier relationships term, to liked approach education of the and adding carriers. want on that I I a question use Thanks. the a I front. and other your

relationships, about one, especially think you any How you world. don't of please terror the that have As think in post with development significant with especially do election a relationships any out, future currently? are

Travis Matthiesen

been back for a step marketplace health here, for nearly Medicare five right. us, But new Yes, think XX to Actually, only relatively we've I take a years. offered years. is insurance

becoming when from is So, enrollment capabilities We sales be We it's and the and added then lot thoughtful we and learn select this. partnerships, membership. how and said, partner and highly do technology yet. very to methodical we don't want to want But a Medicare, had a we understand and that this few business that product a, skilled partner of capabilities. we what, key we fully with valuable a delivering efficient

that's we did. what So

of forward we customers, fast doing. better we the that that now We've So to seen country, have serve where and a products data afford few we kind begun around other later. the add which years carriers, can to other

out think I play So come. years to over that'll that,

LTV be it we're and something a is us important that will the drive scale, we the best operating this think we as ensure leading very in down metric, to factor to an CAC, to from that I area. for

second and add your different plan and carrier some can low years, some think or LTV, that there And see areas, probably high around So the I change are your in if impact maybe that we was proven question our the there CAC in means to over we in that. areas election? we've

Michael Cherny

and environment, be go you about might is the we a at time be and position a the Just And guess, Medicare. in business looking for event how relationships might environments potentially your do to in optimistic after? general, different I that think broader there more

Travis Matthiesen

No, absolutely.

the we still XX extent market are, four that operating an but and years. we've been under think to I

are healthcare the that the and Medicare be big that something bringing the to help we especially the the obviously don't consumers eligibility big in around right available age and enroll other of be sits the which Not a well would positioned we UXX, those So understand side, potentially products factor us Medicare debate there. would than for discussion around down, and a changing expect ACA. in now different Advantage, lot Biden

Operator

from Steve comes question next Our Halper with Fitzgerald. Cantor

now is line open. Your

Steve Halper

XX% of Is generally, then your what you the And about of talk around correct? commission that it doing around If revenue line. can just revenue the non-Medicare expectations like was forward? envelope back are math, Medicare looks the the I'm commission just going

Travis Matthiesen

Yes.

opportunity, grow you're don't point. opportunity above we your to to will that other expect have And So, just has we've where of hard revenue, and see at this continue our overall right continued been metric drive XX% Medicare. per it payback additional that And will to commission a in we around right, it and your because ahead still see a fees but dramatically, of about strategy. we'd percentage our streams thought it's on We pretty revenue And a grow, around as year That's but strategy. our very the I folks revenue, important invest outpace enrollment where of actually think we're not se will obviously part business. of future or with revenue be. this periods Encompass from amount meaningful agent

As can about we deliver. get into XXXX we get and beyond, excited that really what

Steve Halper

But part I sort on specific commission business? of I What's line focused that business, was non-Medicare the revenue that commission in the line. the just IFP of the for outlook in was the

Travis Matthiesen

that last understand fully Yes, today a it there's going. not kind a strategic what's wanted until issue a invest to of we IFP, that we mean, we of going IFP around to where, out just necessarily year keep to election. in kind of I but not get happen market to the really such decision turbulent in made That's

get and still an ACA of in plan. got calls we flow So, people a enrolled lead around, lot in helping

to As that if come and that, we reinvest very be in opportunities make the a good in grow of what that, and depend out election again, sense. would we'd on happens the position it

Operator

Thank Morgan comes you. Cassel our question next Stanley. Lauren with And from

open. now line Your is

Lauren Cassel

wanted that some any in adding. guidance I you carriers And smaller of year help to the quantify you growth existing other of versus then, about Kaiser way ask about partners? there sort from new full mentioned your just us or think to revenue that added. new Is partners and terms you're

there my I you several on can agent give side. the that agent the follow-up Over Is a around retention? guess, that Are any that more story? guess, just is next, stats XXXX? And I quarters, then is XXXX

Clint Jones

to like first. I'd one carry Yes,

QX, the United we of and the added population is. and kind around where really on beginning of SNP So, focused that

So, that's obviously throughout grown year. gone as we kind the of

you don't going carriers, we a it'll of until we're be believe later add this to think in AEP. to And a begin to data, other the year We to carrier. new really not them meaningful all integrated, technology build part capabilities, year reporting, from and on have the the all the up of about, as speed all year, to adding Some go a the fully get agents, get to training there. close

kind a write By very and down see think as really performers, like the churn, of churn. then, much into churn kind top of consumer obviously about we future retaining they But on let's a kind with for meaningful future carrier we necessarily top, commission if business more looks break So, retaining and of strong little they going cohorts. we think our there's be, And the have opportunities kind years, agent kind that cohorts so, a that think bad of there's with it through our churn, the don't agents we model good be a question not And so there'll concentration this year. setup design, around are to us. change diversified. but of that only are agent strong of

will think there sales just any expectations there's that and certain flip the hit. there, of And out and on other Now and driven evaluating, really performance just to performance. that how they that we we're lower end standards organization constantly would around that's be manage around would churn forced that need they if perform, I how side, the population go as

Travis Matthiesen

add to LTV at LTV to CAC even CAC, And we look just of about think our when agents. that, we to to

agents at are and to our look we Clint's how So, point. performing,

and data aggressively A to continue do in us. we some different see retention. we them about day rewarded of tell big are talked the performers. variances performers into agents, get lose examples that top significant agents, XX have retention Our I And the careers we with be one for manager different those really didn't of dimensions. was characteristics bottom great I or earlier And but

culture sales day those and we are So have we of active but their make look that aligned because at agents helping to sure out help scorecard the and kind way are and with incentives are XX consumers laid retention that, obviously fulfilling rates, businesses even those rates the and we that us we've on agents the volume, the of balance writing, out will hit the goal want we not rates manage the are to want what agents that in conversion them.

Clint Jones

half of I enrolling we and the I'm just of back as about, add, Yes. we of year little we of agents sit today the forecast would where to X,XXX gave, been hired. workforce think having into have we licensed again, a announce the XX% plan. plan that consumers north that happy has a here

and drive the period. been this adding, And really the enrollment nature of successful and it can process our early so we again, we've annual about as seasonal the think excited opportunity agents training at business, very in we're on-boarding, upcoming our about

Operator

with last Goldman And comes question you. Yaron from the Thank Kinar Sachs.

open. is line Your now

Rob Cox

online this Rob capability of to are is going in and peers, we extent enrolling This filling for percent on What guys. But new just Hey, some in and forward? your to Cox wanted of some what from investing ask, are your policies Yaron. environment just investing or I wanted to got views updated enrollment you in online on, this know. I

Clint Jones

and Great way to consumers question. a believe focus go expert licensed right now. connecting is that trained to really a We and

We of during do can a of enrollments business. enroll or agent our AEP, aggressive but obviously an do more kind during So that strategy weeks. have deadline the on an assisted part own the redeploy kind kind around times, technology enrollment occur. the some, of their get days ability will we of or that's that a our small especially We peak majority and emailed packet a it's where have of consumer very deadline

call phone, over huge as a agents them them they our electronic But, to the on our can next bring have choose can consumer, the as agents enrolling phone with higher, queue, opposed where on can consumer it are capability themselves, has them call which talk help we plan. queue enable the down. the if we we our to we to them send to get enables do So, a back can been then

successful. of technology But there time more we'll deploy So, very occurred has are more over think online. will time, that's We see during that and We trend periods AEP believe people that we'll enrolling one don't best continue characteristics doing of to talking LTV our the it CAC strongest, but yet, our watch still to remain have around it. our capability experts. and we of when to

Clint Jones

Great. our call, additional for of to out thank second questions all feel earnings to joining us very and you Well, you might much free reach Take have. to for you any us care. that quarter please with

Operator

program. gentlemen, today's and Ladies concludes that

a all Everyone day. have great may disconnect. You

GoHealth (GOCO) 19 Aug 202020 Q2 Earnings call transcript