GOCO - Earnings call transcript Q1 2021

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Operator

Good day and thank you for standing by. Welcome to GoHealth's First Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Jay Koval, VP of IR. ahead. go Please

Jay Koval

and each Joelle XXXX everyone. want I Call. Thank you good for thank of Quarter joining to you, afternoon GoHealth's Earnings First

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

found issued walk you reliance addition XX-K through in statements. Travis website You and number risk in place any results our any the not to and due the significant the closed will in events should first Investor a and release risk the under statements, listed and momentarily. with After Clint our for Form can conjunction described Both consider we Other company these factors no undue tab. to of presentation and press update on that to release, otherwise. fiscal forward-looking future that the XXXX, information, market or the obligation factors our containing we've statements XX-Q press on materials quarter Commission. new whether filed reports with of are the a release, Exchange GoHealth's should Relations In forward-looking undertakes be the of slides today, Securities

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

Clint. with let call turn that, to over me the So

Clint Jones

for us, to Thanks, XXXX thanks Jay our first quarter and discuss joining results.

to you start deck up a with to we call to mentioned, Jay posted before I'll XXXX opening GoHealth's before and and what passing that as Q&A. into period, our A were have details in quick full year towards the from we open the very as our dig the share pleased the outlook. performance strong walk position digital will Encompass growth. shown XXXX then with will more website we financials, four the during as as through progress Platform me to us health first our a enrollment is deliver of on expect slide are on to back summary our evolution on our slide with Travis some the update another year to expectations call our quarter, highlights that, company. As we be line well well results

top persistency gains. drive services our delivered differentiated LTV by outcomes, XX% growth enabling the them revenue. enrollment, During to which benefits plans of LTVs powered partners. strong beyond Medicare our gains our and excellent grew Platform, relationships the increased driven members investments health growth submissions as and by improve Medicare Internal remain million with Medicare and These their with carrier-approved of Encompass to in solidifying the first value-added was we line quarter, our Advantage our our further to $XXX provide were as carrier Revenue and over of engagement TeleCare to carriers gains continued maximize expansion also Choice and leverages in market. have XX% in the Advantage up business, deeply XXX,XXX entrenched XX%, resulting XX%, powering we platform strong tailwinds

XX infrastructure over well the months. us value positions for Platform team and alike consumers partners TeleCare in to our Encompass create and we investments last Our accelerated and

and how in on returns we the first scaled the incremental with quarter. similar our We million in the revenue well to have the see which Encompass is years believe for one believe marketplace the to profitable in our year. the the in range $X starting our sector, we five that Encompass investments short early up built enrollers of into expectations we are services, largest competition proof ahead We these we results. Medicare of And most on of to of are become rolling out

Moving was five. we expectations, quarter. EBITDA significant in Adjusted the reflecting made planned with line also to the slide in our investments

the during in initiatives certain You we taking order the planned XXXX to growth will identified position recall, call well support beyond. us for during would XXXX be over that fourth year we and our and quarter

an Let share our on update towards progress me those initiatives.

is over year. XX% to agent this grow by base First, our

XX% of our is the development. investments TeleCare to and -- as training team enhanced our doubling planned due agent Our well count, CC&E in including QX in is growth and infrastructure as

are from GoHealth's agent training modules. gains slightly early the on ahead agents plan increasing We and in graduate our of both terms hired as cohorts capacity of tracking of agents initial productivity that

Second, agents in with is degree to initiatives. enhance enroll the right support to Encompass consumers well our for and a needed to invest with tools thoughtfully our and provide specialized in decision agents high the conviction as our investing technology plans execute as our lead TeleCare routing proprietary technology to of in scoring to

adviser health third We care full journey year's Encompass platform year seniors helping in double invest is the to as we towards with than goals our navigate brand them well technology last outcomes. trusted more better the level by supported tracking their efficiency for gains. seamlessly and expand become and drive by are investments GoHealth And our health

coming can this revenue persistency. and LTV team to And our years, Encompass us improved enhanced increases our through TeleCare education. powering LTV has been and value-added which direct over services drive through through Our engagement accelerate team upside positions strong platform the

slide to six. Moving

towards billion quarter our our by year reaffirming the revenue our full we results priorities, commission first of are the of strategic progress year strong strength for to we and propelled outlook billion Given full $X.X made growth. $X.XX

More investments growth to into posture high and we adjusted would margins result continue aggressive quick $XXX XXXX. that important rates of which as these industry our expect beyond. $XXX of in in XXXX also XXXX million We of results despite drive intro, diversified and to EBITDA let million, With leading to back a how expect me more XX% pass investment first color into GoHealth differentiated share I'll streams. Travis? power to will will more our revenue end a with in quarter company detail. LTVs industry-leading through digital over the and come the Encompass highly on call Travis at health help run

Travis Matthiesen

Medicare the Thanks in the the which Clint. robust more continued expectations Slide over towards reallocate growth. our The declines range in commissionable the as Medicare of margin quarter. resulting of in XX% the eight within than top-line to we results resources three year, looks at offset first for IFP came growth in months business, our higher

our LTV of Total which revenue been team agents growth policy last nine of were the consumers LTVs gains at XX%. to GoHealth benefited as of quarter. XX% carrier uniquely our revenue result These the our X% incrementally growth $X with all their enterprise Medicare grew including delivered million approved agents Platform submission has and in revenue in expanded delivering great and the along the investments are TeleCare Medicare which gains, of four Slide the over examines our Internal the team needs a large million, improve of with Encompass meet consistently over ago help already is improving LTV for strong Our combination of XX% submissions carrier we commissions of Driving fueled XX% during revenue partners the drivers gains of LTV of footprint, our carrier from the testament quarters. by the quarter. $XX tech-enabled quality in of OEP Encompass up enrollment. the $XXX marketplace to million growth in that year time platform. find made an best to a

me XX% improvement. explain main of drivers Let LTV two the our

that team driving consumer relates engagement strategy. our first through The our the persistency to continued is TeleCare gains

XXXX Remember steady quarter weak of was We large investment our increased when last compared not XX last the have the into team improvements second year, XXXX of in the started seen translating move quarter quarter this first higher. LTVs were down. surprisingly during in to when spring months, a so over LTV we improvement TeleCare to persistency our a of

fourth from large in on heels benefited a XXXX of new also the XXXX improvement our annual period. of of quarter into quarter's effectuation first the expansion carrier The policies enrollment

that from commission XX% their gain rate needs. of in with items agents an power enhanced LTV. able helped also combined best increases to call These routing meet We consumers to benefited are

for to quarter the second carrier drive the six additional commissionable And investment Medicare Slide for and The in growth, quarter services focus Encompass million $X driver under future partners submission benefits fourth gains our carrier XXXX administering growth an first the over demonstrating beyond our of LTVs our carrier services expand slide from coming relationships. an This per just as commissions, of revenue years. enterprise in as unique LTV the us Encompass look to was additional our revenue of reach slide per as Encompass growth combination our positions the we and well The contribution LTV update revenue as drove XX platform. our submission highlight it enterprise we quarter. gains a infrastructure through percentage revenue. revenue of highlights includes is the Encompass and in points XX% in of higher accelerated

us. collect rapid meaningful accelerated driver is relative basis becoming we commissions a on payback cash further already to Encompass for Encompass reminder, improve period. a revenue these and accelerated an an enterprise As for and collections fast services incremental

through of the the We out over revenue line the as Encompass group our expect will this roll commissions’ we tied and line. services tied across directly are members, flow time, impact the carriers a year broader are of the also as to enterprise impact that to our to majority policy. But LTVs revenue services

network and for We our of to lead carrier have commercializing our programs record track at partners. a lengthen our are we thoughtfully proven moving growing over-delivering Encompass of

We enrollment, drive as have help and years partners of coming response programs carrier our next impacting Encompass in as been partners' our help chain leverage leg to profitability our results. partner effectiveness position of the carrier positively the believe deliver growth can value improve over and long-term we we beyond the the encouraged by

are this Adjusted our agent delivered profitability in the full cost minute. of include we along strategic our our Recall the AEP. technology million factor that during upcoming GoHealth building $XX first growing EBITDA offset XX expectations in opportunities consistent we You'll roughly helped opportunity in resulting agents near-term large agent new progress our the investments advertising the infrastructure high-quality with Increased hear capitalize market. up from the as care year capacity, submissions more line Encompass. us but growth the and by the the of Medicare Aggregate revenue a was agents marketing grew last enrollment Clint year, training create planned, for cost the and and strong quarter for programs new in and through upside, and advertising costs agents. in was with quarter. our and internally-sourced planned Combined Slide material on efficiency as and were marketing of was and $XX including top with EBITDA. on XX%, and training short-term we deliver growth. investments revenue modules, capacity spend positioning aggressively limiting to walks us million our limiting agents the These as a technology majority of the investments line doubled, customer with revenue to direct the TeleCare investments and in towards necessary and improving brand drive

EBITDA $XXX our midpoint. slide revenue adjusted to revenue of of billion to and EBITDA we are to XXXX on Moving year XXXX billion reaffirming at by on $XXX XX% growth XX% million the growth driven $X.X full million $X.XX XX, shown and outlook

against Regarding growth the in COVID year full given impact timing year's of growth is and last high-end production. revenue the outlook, the second in year towards quarter come already outlook. This incorporated in the seasonal comparison the cadence, a our issue full easy lost could

before hitting As will margins will and the a ensure production period steady brand light investments We quarters, towards year. operating of short-term into are then the absolute EBITDA expect leverage have of keeping our the second relatively during strong build cost addition to AEP. opportunity the in the against half to up AEP, a of quarter of and third in a EBITDA cohorts majority level of and anticipate including last at come highly back year's prior level, year's we ramped the third they investments reminder, prior agent delivering in off quarter in agents Encompass headed second efficient

be full the the a now advertising will accelerated among AEP carrying P&L, marketing for the down of is well and to to while combined GoHealth the Moving good as far outweighs declines total the heavily revenue drives and execute marketing as related in trade-off brand our costs two-thirds Marketing represent more Investing QX consumer revenue year expenses should marketing investment from costs the year-over-year. the high-quality team cost of volume costs towards weighted our EBITDA upside internally cost consumers. in develop cost of posture. as short-term our continuing to

continued will capturing the rather As to agent we in we a move our plan in qualified opportunities. and capitalizing our We opportunities AEP, gains, well capabilities, growth as leads higher and but efficiency. our strong into number of marketing increase towards on improve our increased big the revenue are efficiency hit working answer delivered numbers, at anticipates powered fourth improvements conversion, which better by as need won't through rates quarter's

million year the cash converted cash in of last $XXX a during $XXX X LTV record last monetize million. operating incorporating even $XX our quarter payback cash the highlights operating collections as cash million periods Moving investment of market-leading the a returns flow negative flow a Slide $XXX positive TTM cash services. this collections for flow. cash collected receivable XXX% the net shareholders. times Encompass during We to flow million million quarter generated on our and increase of to for further and strong and our commissions XX over the over return to first of before on our in efficient potential of cash commissions in in We with negative $XXX funnel our through the to into calculations fast came flow. led cash Strong expectations a supporting base months membership proxy our expansion in operating equating highly confidence combined XX

results cash to cash million ample seasonal to access we at future potential. our quarter strong of in with of the hand of Platform seeing increased some flow $XXX the and needing revolver business our our addition million, are Encompass ensure our to without capacity In exciting $XXX encouraged Clint we now end, will cash untapped the and XXXX all growing so rapidly and growing collections financing. to early manage to through you on about equity-linked walk we why Clint? demands are recently

Clint Jones

have select in enrollment we taken including Travis. with Medicare Since the entering unique very market to partners marketing Thanks, services. and solutions technology, XXXX, a carrier targeted provide approach

we value enhance the Our between leverage Encompass Platform position is in solutions consumers the a carriers our these natural and extension where to chain journey. of customer

trusted effect XX carriers Why First, and health of our can consumers, better members their a we compounding build expansion navigate and TAM. our consumers, retention that this improve we journey win-win? their partners. the outcomes. platform status As other benefit rapidly with and improved care scaling of as adviser a highlights GoHealth is from Slide membership care unique health help connect delivery we positioning

markets. are of excited opportunities connect And further and and believe consumers carriers continued through few there's downstream while we taking building enormous to infrastructure better financial expand are Second, our our gains consumers improving an goals very the for revenue and great for to we to create and high-quality customers' carriers advocate key to a opportunity the Doing leadership that We with a the needs partners by GoHealth's will we very and quality enable thoughtful position and lengthen metrics. understand about experience carrier's capabilities that delivery additional a ensure approach market support them attractive in we persistency consumers third, care with growth LTV select partners. this lead to carriers.

the with for members. our proposition value start Let's

consumers to in they Our truly of the only individual plan the and leveraging enrolling with of shop providers need But improve and our in right maximize their outcomes the meets TeleCare first them outcomes. By is Encompass consumers plan. their Platform, health consumers services value-added and help the their that right utilize benefits are the to the team we as understand step. choice platform To the educate plan enroll ultimately needs. improve and able right connect benefits, helps

care and helps Our member we're ratings Platform optimize education. great important medical On most And engaging growth better drive but well needs. companies aligned consumers to lack can loss also and products help services have with risk the and star retention. partners as of ratio scoring address carriers' that to build Encompass enhance relationships we greater help we improve many delivery access our

insights. continue the a highlights initiative Encompass foundational our how we base we data specialized As to this options. or care become their example, journey assessments The earlier and trusted point existing the will up element starting MCAs health enrollment membership of greater XX customer can to proprietary us of needed In scale MCA deliver their data works. member provide consumer's strategic for at consumers, our help Slide with necessary planned positioning a we health time the adviser benefits leverage the providing them to collects outcomes. improve can efficiency to how GoHealth's that experience. We early the demonstrate one assessments connect Encompass our help to of Platform represents drive with than

example, for from Tennessee. that for performing We prescription collected us to a that GoHealth know a XX the data create our GoHealth during we uses For year Jane. MCA member three process consider lives things allow hypertension has her, additional is learned and several enrollment action plan an alone Jane the member rural Jane Upon woman drugs. old unique from that

in included implications transportation other her access address to First, arrange prescriptions complementary pick as Jane ability her had her healthy delivered as and for can transportation which visit wellness Jane's medical well helping by physician, meals limited necessities. her to have access up plan. visits home food, has and care healthy This for and primary all medication we to

so facilitate her socialization retire. local improve lacks And These in found a of findings area. by education to new an with connecting this we value-based decides Jane her. Jane social her and community one home health a education primary is is right and engagement recently support physician to facilitating Second, offers further care After and our additional going Jane interaction After community third, learned our having emphasize for her the agent the we partners. further provider Platform. benefits to outcomes TeleCare care research, ongoing can GoHealth-licensed has introduction solution of through that Encompass importance

conditions programming we there We initiatives consumers and earlier persistency allow are from from benefits that the to lists which beneficiaries. ramping help their Encompass in health of life example, by we MCA a member identify services our better carriers own also the chronic to revenue carriers the Carriers members. as determinants to also benefits of properly these enrollment. are Slide social improved helps mitigate cycle, know time of members closer of us Moreover, benefit in XX GoHealth their streams health MCA risk supplemental scoring new risk the long-lasting of with and improve Encompass to today. few connect Encompass this Platform

expand commissionable we care, supplemental care health As chain, and assessments. engagement. the preferred including beyond we see member Longer that care pharmacy value-based navigation into market assessments value we term risk a TAM into these healthcare opportunities benefits $XX move deeper expand engagement, and believe our billion opportunities deeper dramatically and to benefit

a platform how me capitalize summary with slide and well positions multiple to fast-growing wrap-up leading market a our on with Let large tailwinds. us marketplace sector XX, of

healthcare expectations MA secular looking help and pandemic choice As year commission accelerated our XXXX Advantage make as this year marketplace The decision. expanded potential there team our our this to agents the platform The entrenched compare from Medicare better superior and than to are of Advantage increasingly will consumers the growth outcomes field across benefits are policies agents cost ever rate for a and as of drivers transition XX traditional the as consumers for they transparency toward XX% as increases reminder, and by deliver education, vastly continues growth remain and well licensed Medicare be dynamics. with cost critical footprint. million carrier equipped they

efficiently apart have what We funnel. competitors? our from wide sets strategy delivers us omni-channel that internal into a So data-driven our consumers marketing

agent best enroll Check for customers score providing right consumers to technology route ensure to them, utilizes agents Plan the Fit platform proprietary while Our our in for their plan data also needs. to and unique a the

well that finally, drive and resource allowed carrier our making built TeleCare, years have force us increases healthcare delivery We agent the growth continue expansion year quarter over powered delivered decision. to start platform the and we to We continue an difficult believe such made in our investments as seniors and go-to the coming to with to we are the Encompass. periods. rapid for this improve and have high-performing fast a on be to us platform And during healthcare industry-leading great strong and driving incredibly by cash revenue important partner have the momentum with positions LTV additional top-line payback in to care and streams margins first XXXX. deep who innovate tech-enabled continue cultivated Encompass our relationships We

executing These well on also and will us reaffirmed questions. model. of outsized a shareholders. results, have towards record create great business period are We now improve our already call up returns deliver initiatives importantly XXXX for help the another for of we'd and like that year key to Joelle, growth investments the to open to an us we multiyear which foundation position more

Operator

with of Bank Our first comes Michael Cherny [Operator from you. America. question Thank Instructions]

line now open. Your is

Michael Cherny

color for the far. so thanks and afternoon Good

So these you're Platform. some to starting the the dynamics of see early I want enterprise to more dive returns a and Encompass into the investment. little on Clearly, bit

the think workforce As the versus are or the selling? what out terms business of business? from contribution years potential traditional post that we we you be And they're in think there should concerns planned pursuing for few XXXX distraction one area the about next questions over should the event how and have in that of the growth maybe this any

Clint Jones

the for Thanks question. Yes.

better kind to the capital way. identified members and customer members. their that year We to had educate consumers help how our of opportunities human overall questions lot realized a we a many some improve a along saw we of element and last to the plan, with So experience leverage better technology about it

last we've had done. some QX. pilots year. We invested that's in So going We what

which into those revenue-producing really about. excited Now rolled we've programs, we're

And We years exists any over next the think will the in ramp up those about several marketplace. Travis, this on we year as itself? the commentary opportunity that

Travis Matthiesen

Yes. we just driving we last early the But full gave the again, have. these about pleased we year. with our the we persist think that we call few are is reiterate year Encompass talked points a to of start about on I believe growth would continue going obviously we wins. when guidance for see to as And

Michael Cherny

solid. And very the then even into it built whole you turning Got of dynamic, but think there's this intended in comp out do back and backing to advancement about the pun LTV as it. of trajectory should the I and how a still Encompass How terms bit results for what's the of contribution continue nice no year? know really LTV persistency a guidance a that

Clint Jones

the for again. Thanks question, Yes.

QX, those So engagement last with of results. throughout and even started and team making manifested obviously which year QX excited year post-sale We we are about. And year, see pleased programs. QX the we're further, to really member gains. we last our the TeleCare this That's investments started in into

sure still comp So full back appointment which deeper it's with engagement, there to obviously, business or have making going or they're them, customer stronger questions analysis, pleased spending do then in there kind with continued a that in persistency them, over which results. a the and an relationships ultimately is doctor's of And scheduling for a to our lower the right help they doing once need entire lead continue transportation to plan lead And plan. strategy consumer if the goes we're arranging to to having gains but it will advocate time. for those needs time upfront you they're mentioned, QX-over-QX, really we're of extremely

Michael Cherny

so Cool. quarter. color Nice much. on Thanks

Clint Jones

Thank you.

Operator

Thank you.

Our next Suisse. with Singh Credit from question Jailendra comes

now is line Your open.

Jailendra Singh

down in highlighted Yes. following can by of you Thank XX LTV, On those still is on call break Michael's impact and points all. And increase on individual -- the the for you year-over-year -- you you drivers you trying question year? the I outlook? items? about the because to to further for up question percentage it of for the full the single-digit persistency and of Just LTV. driven rest This understand year-over-year trying possible to is was that of income effectuation, think hello, Singh. on versus Are to earnings in Jailendra low Michael get year talked increase other that last the impact maintaining

Clint Jones

Yes talk. I'll Sure.

LTV So members. of there's manifested within the sticks stickier things rates previous and kind that made better improved persistency, of combination singular have we've It's no a that so a that out, increase into right? over piece of that investments this, really quarters fluctuation lot the

I to through but Encompass us the not surprise to drive Travis, Platform think to but want given I has persistency of also benefits cover? -- opportunity don't indirect we're want only revenue as you enhanced well any say means, a by seeing direct Encompass, And there. commentary any

Travis Matthiesen

more planned as weeks of simply consumers our conviction technology in choice first our say our fit just well by would Clint's TeleCare. to and journey again, customer all seeing planned with the investments we're and throughout point, I the few carrier footprint, Yes. driven as

coming single-digit the think the year improvement kind the full now high it As expectations, on LTV initiatives year themselves Encompass points of growth that manifesting driven directly by policy. relates few in LTV improvement from are to right given are tied of LTV to full the about initiatives Encompass

Jailendra Singh

more Okay. internal of bit agent the was hiring with that to provide on I push all hiring wondering kind comments details remarks you a across respect prepared if with little peers. ahead the you expectations around of agent And trending are your then your follow-up, could my in

around provide Just mix market you're and hiring making curious you really if agent remote? you're the any targeting just competitive. can between color And if also in-person

Clint Jones

Thanks question. the for Yes, thanks.

in ahead agent hiring, mentioned we like which remain -- are we yes, of So plan the script, slightly on we encouraged. our we're

you'll recall, agents come also of our in become the majority -- As non-licensed.

recruiting got now call So those a we've bringing in. platform top-of-the-funnel it strong, I'll folks

the good and we're goals. recruiting at of to position So the our of on position the year that we're about agents feel today hit the really and hiring kind we for in bringing targeted of goals the remainder

kind to kind exiting in ensure more our they the training QX deeper hit on -- is other and heavily job are training and early training of agents their executing enhancement the floor. The infrastructure very in that platform program thing of that capable the of just overall services to provide when we parts of invested range of

Jailendra Singh

Okay. Thank you.

Operator

you. Thank

comes question next Jonathan from with Barclays. Our Yong

now is line open. Your

Jonathan Yong

question. Thanks for my taking

or to bucket? revenue thus Just you is the the contribution of services and understand, immediate spread going again. us from over why the the And member commission it you back Encompass into over life? Can additional help falls are lifetime time performing out that it is that's

Clint Jones

thanks for question. the Yes so

in in dozen of are services revenue different able captured dynamic So from we're work now as platform, a Most we've we're the of and cash And Because unique or the with of got a has standpoint. an we over helps today that ways. can within flexibility that There type tailor. PMPM discussions products to to which carrier towards a need model imagine, each a flow move opportunities kind with is charge able upfront, well. the Encompass. of we're annual model to more as you

experience a couple on Encompass and as the approach we'll rifle just work goal of of platform. five we've services we what with the up call carrier a years ago ensure across key scale our was we same board win-win-win solid as year strategic it's throughout kind and the like to this for that a carrier and And it's with our that Medicare and to approach, we -- partners, Platform, So choosing continue a for main done out GoHealth. really select customer, here really, what that's really I'll ramped these the for up

Jonathan Yong

know any absolute a Thanks. size way a size that is expecting to Okay, the but Encompass? from provide you us great. is said to points I it there from few the way contribution coming you're overall And there? there

Travis Matthiesen

Yes.

So tied I'd it think why revenue majority only point which enrollment, say other of way other policy. to is at of mentioned, Clint it's being few the the growth to as of about the our Encompass than points driven is the is the

occurring in Encompass QX. obviously throughout the as points policy of that bulk think you as few growth So happens with about and about growth, year that of think the of cadence submissions growing the the

Jonathan Yong

Okay. Thanks.

Operator

you. Thank

Peters Our from comes James. next question with Raymond Greg

Your line is now open

Greg Peters

afternoon. Good

we've they about I are onto that you talk yourself. we that share in and clearly some back everything come of on, forced the worked really because what field against win that that some that are because you've And give last from of And believe your field traditional out traditional platforms such to as up, wanted this the confidence question some in them noted have the hearing opens seniors year agents First pandemic or they think mechanism curious success. model, going as that your been working rhetoric the COVID feedback about they're just impressions to has marketplace year.

Clint Jones

type think the is like through leveraging of Yes, and enrollment. us. go acceleration you're a more And don't consumers more consumers several will to field happen. it easy over seeing leverage were absolutely right did of or years you understand we our and gone and trend platforms that face-to-face how to experience a have efficient Obviously, that obviously last our with to COVID into the model prior COVID a back

think to And online. continued to agents anymore. up about travel evolution still on corner buy the our that And like very, just travel view of buy happened, services that's Street think continue old of starting Encompass, apart. going It's us people we we very the like think we strong not analogy. we're has Main We're tickets that add -- I further America we it. see demand. sets and even the how You kind Once to as

with to of X is a that and X may carriers maybe provide the shop gives to just represent that to consumers agents other our Most way the can choice a for the technology easier and note we X, you think our lot imagine lot value-add to plans. of an I thing market. field ability platform deliver

Greg Peters

Great. Thank that you for answer.

second Slide you're your The which on is information the is question to cash be XX based on going providing flow.

the be about flow flow, cash You talked negative. talked you being free about cash free --

that -- number just on XX-month that misquoting sure. was if I I'm -- if trailing think feel I you said a correct $XXX to me, I'm it's -- basis. don't million

Travis Matthiesen

That's correct.

Greg Peters

the as to level cash to would be continuing business of to on such positive bit. and about one accelerating the model at a to at you're to Holy that's where is will Grail, to words for we growth flow flow issues candid breakeven model, growth some of other concern -- start too business be the hard popped if basis. rates an yours in you shrink stabilize an to flow if your And little need rate a So like marketplace in that annualized to cash is, or free up to going you the it's of very what be in grow is I and get ultimately guess and rate, there cash getting get breakeven for your increasing to sales others you

And cash you words cash thoughts -- your some so on please? a around flow, flow that's maybe can in but give lot of

Clint Jones

mean mean in indicator you're are right. I growth I rates cash this model. an absolutely of Yes. flow of business

lot continue out. at our And then scale this and our We or sets that pretty high-growth here periods a technology Encompass position services generate to look opportunity themselves. apart easily I business think think that down a our see scaling cash to drive strategies ultimately in as and We agents unique about of out models cash platform could tremendous to platform. quickly. payback our very a you with our enterprise combination slow in market in us quicker we other around invest

a us we continue position for from driving services we're benefit while position that standpoint. a So, membership and adjacent believe could to in growth looking driving products and cash

Greg Peters

Thank answers. it. you for the Got

Operator

you. Thank

Sommer Tobey Our next from question with Securities. Truist comes

line Your is open. now

Tobey Sommer

to pricing pricing a compares period? the extent into fourth us have for you're look as give to you the which channels you you what and visibility the in Could quarter terms into marketing elevated maybe election the in around sense how Thanks. seeing of that different rates

Clint Jones

for Yes Tobey. Thanks question. the

right. absolutely You're

unknowns year buying normalized caused If with more continued expect kind expect. year, and the were Day market. kind which in that much a challenges some rate beyond you standpoint remember lasted just of unknowns This challenges, some which some in of some don't last there the we the election we growth election ultimately and Election year. year-over-year Obviously,

how efficiency and CPO business see But about increases in we You overall run targeting think may and certain really the other we're operate. that's channels. our with gains CPAs things some

Tobey Sommer

state? follow-up flow kind of How you sort that cash self-sufficiency. a And a and could steady-state get tell steady the in grow if models do do then flow Where on could sort cash quickly of generation? your positive you fashion I of to that

Travis Matthiesen

Yes.

we've we to to continuing on think from monetize membership on standpoint base, our to that in our growth our continue the focused it's revolver membership not multiyear just commission a And membership And as on the we're to about hand base. plan grow an to them So but to Encompass got cash efficiently. from execute the opportunity access well. the standpoint, as grow

continue where And focused we're to is so be. that we'll and today

Tobey Sommer

the and I feature growth. know focus, guess, I rate a positive understand you in the curious I of an about more this Encompass. I'm have offset

You're clearly is having growth in even about? But a that some think range we can success it. there of

Clint Jones

us business. this now of continue the going kind Yes. our the way we I at going see -- right that's don't with is opportunity the of we're in I that look think a opportunity wrong that we to enough setting Year-over-year range new grow. from to is platform think believe that industry to to -- growth is the still standpoint,

about you overall Medicare You original think aging think change population, the the and about Advantage leaving you about frequently. population, those people Medicare Medicare the think

come and carriers when -- need So well, to the our market. opportunities new to change as

we're the and a how any opportunistic kind about business. of high-growth going we as think And think going to in I after of tackling share that's kind in the opportunity. the newer So business be a market market,

Tobey O'Brien

Thank Okay. you much. very

Operator

Anderson the And with you. in the last Thank Evercore. comes question from queue Elizabeth

is open. now line Your

Elizabeth Anderson

of how the Thanks And you the had two, in about comments and a Can also carriers the the of clarity I each working would a a of don't now? that obviously some I you're so just are like competitive there be your you say the question. you this space. differentiation? know of of about How business. quantify, sort anything -- for many market much about do given assume question also encounter any any peers Or revenue helpful. I But other guys situation. with the Encompass size relative terms can entering you

Clint Jones

Elizabeth. Thanks Yes.

our competitors million we ramping an working each understand of there's so up the think about as and as And and which saw We an setting health as in the opportunity flattered yes, see And to any make we doing toes. a improving we kept we space. of with And it's number we really in We there's impactful help here purposely care started and this the better that we that have $X And a carriers think good that developing to to our So, in in by. opportunity here. services Obviously, both, saw us well. think Encompass time have consumers up we think the look at and step that we're to moves opportunity think on to the strategies. of last it start very about journey, a a front they massive market. some kind other's soon partners, don't believe a unique think time we we'll we -- what QX we pretty model small carrier partners, start carrier about is were out. Obviously, took that. year

Elizabeth Anderson

you they basically it the are do products like, to learnings of in with carrier Like again? replicable, do of kind are to same develop how one is the next? the thing the totally you can think, of you for next? the it -- one customizing And thing from same terms Or sort the

Clint Jones

Yes. question. Good

way yes, think with a in is the the So, model SaaS-type platform some software service. you about the or of traditional built a services

may different kind carriers from. a is to carrier's replicable. we that with may the XX. expanding of carriers. goal with start can choose in to And dozen And example, it can it we two have particular take that two, We So modules of

services But It's about it "Hey say that's that for five." customize market offerings. we way. the we something carrier, to but here each that as take think I'll and can carrier and these we expand necessarily take Another might goal don't

Elizabeth Anderson

give also you scale? leverage, as some So OpEx that continues that should to business

Clint Jones

exactly You're right.

Elizabeth Anderson

Yes.

Thanks. Okay.

Operator

Jones, Thank you. turn like for now back to remarks. the call I would closing to over Clint

Clint Jones

you, you call. attended today's that shareholders analysts Thank to and the Thank Joelle. all

and team speaking that good single effort we forward position we've so XXXX. have a the results in night. GoHealth of far to in thank with execute to And for look day. you seen members and soon. pleased in again work to very the like they every you We all to are I'd our QX put Thank our and

Operator

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

You may now disconnect.

GoHealth (GOCO) 12 May 212021 Q1 Earnings call transcript