GOCO - Earnings call transcript Q3 2021

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Operator

Thank you for standing by, and welcome to the GoHealth Third 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] As a reminder, today's conference call is being recorded. I would now like to turn the conference over to your host, Mr. Farley. Brian begin. may you Sir,

Brian Farley

afternoon, everyone. for call. each you to I GoHealth, Inc's want joining earnings thank third of Good quarter XXXX

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

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

the GAAP provide information over are and conditions of Clint. and operations reason discussing press financial presentation. call with directly the reconciled certain the measures. measures like to non-GAAP These During the comparable the are and Company's this to they And to financial call, us contained will to measures I'd investors most management that, release believes useful regarding be turn investor we results financial in

Clint Jones

position results. I'll our to our made from highlights in start update everyone the year-to-date business AEP. quarter joining with Encompass of before an us this our period or early ourselves we with quarter updates year's on third thanks, will strategically insights a and and going results into the AEP. you, investments I today on then and some annual to wrap detailed some for discuss Thank cover and enrollment up review the financial on Travis

the in TeleCare their on increase worth in XXX% in provide team. investments training to over upside planned. these In We will I is to and report come. years believe an in us as act XXXX strategic meaningful an for We we've in a than have and tight last of to provides market beyond, GoHealth plus you options. plan have to investments Slide agent hours brand update more our told technology, then ourselves longer on consumers our Most necessary educate up have continue that capitalize benefits open It we long-term ensure agents, and the These new was continued originally over our knowledge agent call they despite and we people agents catalyst noting completed will our of investments will on for market. make the X included labor the to associates capacity Encompass in increasing by exceeded our base goal taken made front investment and us of base we to am will us expensive Q&A. our and Platform. the for increased importantly, near XX% long-term. our enabling on XXX position update, opportunity and to the short-term is in the agent pleased our

and utilize reminder, employees onboard help who our dedicated new them plan team members of and group a TeleCare understand As benefits. the is their

margin the material in from of persistency the these and do this increase future customer our meaningful agents our a TeleCare we role including we not investments expansion to success, our expect expect Encompass play year, While Platform.

us. Our with technology carriers support These needed provide the investments investments combined continue one. differentiate and in to decision right to agents our from tight integrations specialized with technology the with enroll partners consumers day plan

differentiator expanded Our our trusted technology is by for driven offering carrier continue seniors. GoHealth the advisor to a as we for be

GoHealth on Lastly, our brand track. Encompass Platform and are investments

and in our journey. in so customers our brands customers, investing for technology there partner can is accelerate when investing are no our GoHealth We to they we are you our that our healthcare can their agent, so better know efficiency serve investing can so talking a people in

we are platform with announce This us carriers combined positions Encompass the up respectively. XX%, the to success. Slide highlights scale increasing with X success quarter performance and for financial to due goals We well Platform various strong and that and an our revenue partners. our happy year-to-date are of ahead topline XX% with

by for driven commission were expanded in up the force engine. These and powerful expectations marketing Additionally, results quarter exceeded agent year-to-date. XX% revenue XX% internal investments and our and our

with a by continues standing our XX% carrier approved growth gains the growth to XXX% which quarter as a business, ability XXX,XXX. driven in drive Our increasing leading third seniors. Medicare-Internal drive roughly a third and to the growing in to our market generated for XX% of Advantage Medicare by be quarter year-to-date, proving Medicare Medicare enrollments platform continue submissions out choice growth to Advantage

Our why them through beyond our provide services focus on will continues to to added Platform. health and and acquiring Encompass continue improving we outcomes. are enrollment value is be That engaging their members,

Our year-to-date is revenue ahead Encompass $XX expectations. million of our of

initiative made look fourth strategy the about call. quarter We about around sharing important XXXX our and on are Encompass this with very our have to forward more excited we progress

X. Slide to Moving

we are strong to towards our reaffirming full-year investments, commission our revenue outlook by of progress we made full-year for have growth. $X.X the strategic Given propelled billion billion $X.X

of also EBITDA to $XXX We million. $XXX million expect adjusted

intro, market. beyond XXXX a as will ourselves quick come as importantly, and an leader provide call Medicare profitable our the progress technology, to XXXX as AEP. pass With update results detail. this More Encompass drive through on run distance over Encompass our that in our our we and into investments Travis quarter we expect to a to third and back agents, brand the during let in continue I Platform growth year's Travis? and in more me will

Travis Matthiesen

is our Year-to-date third Slide expectations. expectations. topline during X which grew looks of quarter Clint. XX% of XX% and of year-to-date. of total Thanks, third $XXX revenue the at Total the XXXX internal ahead results and compared year-to-date, to revenue million ahead was quarter

will commission item. absolute growth, our growth dollars focus composition. and commission strategic The in both revenue been commission the in enterprise compared our XXXX total outpaced Encompass. a has both was of as on our deliberate partially due periods, to For This line as you growth revenue percentage notice is to revenue during

Clint strategic just $XX mentioned, which the of of revenue. million saw year-to-date One investments

our by of in carrier platform. breakdown submission secular the preferring campaigns approved As difference for our is carrier that driven growth this Fueling in of Advantage the by shared growth But pacing $XXX year-to-date a this share the growth portion the Medicare our is is enterprise, agents, we for towards the in licensed anticipated our earlier business of timing skill target period. topline million our our segment. shift consumers X, highlight technology revenue QX. breadth and our still lower market had of revenue On Slide and we to speaks year. than annual XX% This

quarter the growth growth period year-to-date and Our Medicare-Internal versus compared prior the third to segment the XX% delivered period. revenue prior during XX%

also Medicare-External pleased the our revenue are grew with of year-to-date. We performance XX% which segment,

Medicare-External technology our relationships. Our platforms. agreements, operating Medicare-External agencies contributes to and segment scale carrier and under is powered compliance carrier deepens by small and and our size mid-sized our

things. instances, many Medicare strategy prominence Advantage our us compared platform, Medicare attributable decrease referring last The LTV carriers in are to power of the Slide XX space. third partners to our per and approved quarterly demonstrating primarily is year's to the fact, In quarter our these enrollment highlights Encompass submission. in three

the a agents changing these. of carrier; new mix To I trends. and transparency, both First, each want unpack second, briefly macro of shopping third, provide consumer to more and impact

increase percentage more third a persistency in changing new is First, with LTVs The to to our shop different an that are consumers consumers quarter these who often. consumers of so their reflect respect Medicare are and mix, dynamics lower and traits. of

more to market new lower and enrollments mix, penetration these continue relates LTVs. mirrored to have modeled our it carrier overall As we added carriers see closely

as main Clint on continuing mentioned expand AEP. of focus ahead QXs was earlier, base Second, to our agent

rates the encouraged of as as we lower and added last are driving quarter, have we an recent number effectuation by agents the did LTV persistency agents short-term to year's compared While cohorts most of it saw in hit expected vintages. our

drive As expect we become our their LTVs. improved more agents performance tenured, to

embedded As and we mentioned into on previous quarterly model agents. update of and our our these LTV analyze have LTVs the impact calls, new

to vintages an we of Medicare last in have have Slide submission, LTV year-to-date is our trends refine to up experienced. updated our to continue year. shopping model you we space update the assumptions included per and and newest X% on see which revenue will compared quarterly over XX that macro others our On our Finally, address

of we a commission, revenue. we it demonstrates including on important enterprise combined performance As this barometer to is basis, our previously, metric ability an have outperform as mentioned Encompass our believe revenue and

and these payback a lead another the adjusted guidance. to The important, As our validation gives space especially XX become view continue AEP our will ability our this our towards enterprise Over period time, investments grow, full-year on shows Encompass as deliver to shortens strategic during in us EBITDA we full-year in our will and have believe we of Slide we Medicare Encompass lengthen Platform. as through reminder, delivered more the we made we progress our guidance. make confidence investments.

in profitability. calls, TeleCare up IPO. costs, non-reoccurring vitally a quarter to investments our prior compared in care agent Encompass in including prior enrollment excluding and short-term discussed year GoHealth our As the accelerated related have on to impact the capacity, the were and vesting team strategic XXX% had important technology, third Customer the brand

to train hired was productivity the In from these short-term addition cost to agents new newly onboard low. agents, and

given generally expected, entering training comprehensive program have new agents with productive the As combined lower LTVs. hours lower our

our gain productivity increase. agents As to these with technology, tools we and expect experience more

during last capacity recall that will for year, limiting factor AEP. You agent was a us especially

the as growing right previously, ready large have we market ensuring we have Medicare year's built and by AEP we on to agents of our necessary the infrastructure to amount such during customers. and the serve have As capitalize described this

and over expect agent pay the growth We this near capacity dividends to long-term. both

advertising total in were and grew marketing XX%. costs revenue P&L, year-to-date, roughly with with cost in line revenue growth the of up line Combined XX% combined costs our down expectations. of Moving with

to continues diversify marketing mix the team marketing Our returns to on investment. our optimize

to Turning now Slide our shown on XX. full-year guidance

remains Our and full-year adjusted EBITDA XXXX unchanged. guidance revenue

for adjusted by driven be on $XXX this outlook revenue our $XXX is net point to full-year EBITDA to AEP. which $X.X year's the billion and million outlook key will of is million revenue guidance. $X.X Our billion much One

the volume to be Medicare that anticipate While we guidance of Advantage revenue originally anticipated. remains unchanged, higher than submissions

have of will our agent mentioned a increasing our Clint over of with combined earlier, Medicare-External As exceeded XX%. outperformance MA drive we higher the volume segment goal This our of base than Submissions originally anticipated. continued by

expect agents and to new relative trends we last experiencing in be macro shopping earlier. we the are LTVs mix, However, current to discussed year carrier down given trends

our Slide Moving priority Cash cash capital now a capital flow for profile us. are XX. on and management to and

cash We substantial with receivables more generates XX% have from $XXX million, a built our totaling commission on cash year business prior than and the period. year-to-date receipts base up that membership flow

unused as XX. on We cash hand capacity revolver million have million $XX in $XXX September of and

to a of variety to reinvest receivable and $X business, market given our and nearly favorable our conditions, using opportunity While growing of these fund large allow us including evaluate our balance of ways continue cash we the in non-equity sources to flexibility billion. growth

will Encompass We our updates same expect some that XXXX. require AEP. investment With as provide Clint? of initiatives not Clint the that, now and year's this on will level XXXX

Clint Jones

Thanks, Travis.

As base behind member we've rapidly build earnings, talked the long-term and the Platform about revisits Slide as additional XX ways growth. in drive our Encompass to previous monetize we strategy growing

seeing and as from carriers will increased around and XXXX. are Encompass We and a for our momentum serve conviction key strategy partners catalyst growth

members in ways. number value proposition a Our Encompass of differentiates Platform GoHealth's

to healthcare and help outcomes. positioned better members uniquely are we improve their navigate GoHealth First, journey

further financial better experience. an third, key goals understanding their support improved and we metrics consumers them the their quality carriers customer's care high-quality engagement enable Second, connect with driving improve of advocate the needs and and by that and to partners carriers. consumers we And

position about Our expand by excited we opportunity there experience to strengthen results that downstream great leadership significant and validate in GoHealth's our market are a are Encompass belief is and capabilities consumers infrastructure investing a to partners. for the year-to-date creating our

revenue by lead year-to-date. as Slide in evidenced our strategy gains to Executing our Moving growth XX. opportunities revenue through revenue on Encompass and additional to million will $XX Encompass persistency continued

to $XX drive above million Encompass XXXX for of the QX, expect million to our original expectations. We driving $XX $XX million to revenue Encompass $XX full-year in roughly million $XX million

to are the this and the Medicare number up momentum a the a in enrollment non-carrier carriers We other partners XXXX and to platform. strengthening continued our and brief a with growth, to plan navigate investment making also of journeys scaled members sustainable Encompass Encompass in multiple this largest be Being while closing, enabled platform scale six has by encouraged into revenue We rapidly of Encompass Advantage early and market. partners on AEP. want I driver it leveraging update expect our position outcomes. success helping and improve overall Platform to provide Prior meaningful their healthcare our

agent have the place in trained we to First, our serve force customers.

complex from the this space. product and we offerings can demand for strong and Second, quality and standards the in carrier our necessary enroll consumer third, plan customers we best to for choice to them. have ensure each And education we continue see

investments All throughout year. validate which of the this made we've

Finally, the remainder perspective. important on as to focused in it's we of are I XXXX executing AEP, put think

have originally strategic objectives. following this planned to more achieve the than We challenging invested environment in

and are the our base. This enroller partners with Platform. membership large a biggest is very First, scale our to for is we growing pad and Encompass important a Advantage launch Medicare carrier

search, their TeleCare the the growth have outcomes to other our And asset provides want our once GoHealth demonstrated Chief pleased partners. optimize agents from and plans our representatives and in Platform. new enhances likely Travis' CFO especially In benefit engages licensed special Second, am consumer, to Travis' earnings and and increased this we Travis a when CFO will business is he call I out talents Encompass GoHealth, our XXXX core and we given tremendous and Transformational we further third, and value of health we Platform to can I thanks for well a a Officer, our to to last closing, to to Travis that is base have onboard. has Encompass are carriers call. into many large that I continue been transitions give that a execute

why at us. excited exists the Finally, of ever I'm and in want I reiterate to why than opportunity more GoHealth front

access I all of note During colleagues a late working healthcare this to our to on in to extend weekends deliver evenings, mornings, employees. to and year, time of America. holidays are early mission want improve to GoHealth sincere our gratitude

about largest are turn Advantage will Medicare in and I reason future. marketplace the why United With I You over is States, the the reason the GoHealth for the our am so call questions. that, excited

Operator

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

is open. line Your

Elizabeth Anderson

focused as about so well. sort we've have third Thanks just comments I AEP far. a cetera, might in mean, that for afternoon. would guys. the and I factor impeding et the my what question also required guess much quarter seen heard you've Hi, be on the longer this and been scripts, CMS productivity, question so of

talk have working could you that how strategies and you if guys, you like wondering some about been impacting you've offsetting it sounds also through. was I So that specifically

be So any color there helpful. would additional

Clint Jones

think awareness Yes. that quality ever CMS than Thanks, carriers from as Elizabeth. this Yes, we've year we've obviously from heightened well. I heard around seen standards and more a our

training we've – this we're and metrics So place, for right we the with including have quality additional early agents. partners closely to in since ensure carrier our all standards that really summer, our

our market. were quality the all serve. seen industry, we AEP expect already the imposing noted we feel have good results material we players great for We thus think long-term any right, carriers with We a sort really in thing is standards And we partners to. a impact in we and not for of and position this higher the on far the

Elizabeth Anderson

And That's near-term payoff and and investments payoff that see over could pointed in into as about of little really in obviously it. you as beyond? bit I a an Got you investments. that increase said we growth. mean, tech if help helpful. of more we the talk get maybe to you drive seeing of like but sort some those you are time, Where the where that that some XXXX might would

Clint Jones

Yes. question. Great

primarily So a this different year categories. couple

The training that right make analysis the plan through ensuring first somebody help goes think onboarded them different plan, category. everything improved efficiency into consumers that agents of Obviously, in be have agents they – really we to carrier knowledge category helping calling enroll about needs identify so the in that people and sure an finder get consumers plan fully agent can that's options and and to and and upfront. in agent as get successful you you the right understanding that the tools about our has first our we around the more imagine amount the right

Platform. a Second late us category is Obviously, started newer this within initiative our year. really Encompass that last is for

you imagine year-to-date can to you and looking only not see can also ensure no where out excited of victory in strategy, we anytime stages, which early results what the going here, about and meaningful and about platform there's So a we're we're that are we just kind position our still investment XXXX roll into new that we drive be momentum and really as but momentum kind beyond sit we to for setting the for, means early declaring results of we can the the going technology the up but have a QX, mean. by We're into think XXXX. what behind

lot returns where investment. see think that's on those I a of you're starting that to

Elizabeth Anderson

follow-up quick that to one. a just Maybe helpful. That's

you can that? we – buckets about you the where traction that what How of do sort contribution provide any and the Is revenue commentary in for are assessment? you areas? about think other XQ? Are we Encompass revenues, of still the Encompass finding the health-risk in On quarter, for predominantly of sort are think seeing kind if maybe

Clint Jones

question. Good Yes.

it's of kind kind non-carrier some has So a services partner. of and we unique as offer as well of of partner options each a a our desire the carrier menu that

about we navigation, health-risk continue to assessments, success lot enrollment, preventative determinants preferred in And of and add think programs. of So channels. social in or SDOH provider preferred enrollment, benefit and platforms models, care pharmacy a invest those health

So need as continue a other is that next carriers products partners over services to as our well and – years add with the clientele goal as to the partnership it's our serve several they good well. have our and and a

Elizabeth Anderson

you very helpful. That's Thank Okay. super much.

Operator

Thank you.

next Our of America. Bank Michael from question comes of Cherny

Your line is open.

Michael Cherny

you congratulations in in to bit quarter. the little want on you the progress salesforce Yes, hiring. strong that Afternoon base made about that I about that and talked dive a agent and

permanent I think is position transitioning training the the Platform with What and side, now think nature the going the hired that now you that in so ones do to of to And you Encompass you the alluded the that for as look agents some like next year? a have into keep the about these keep impacts occupied, also as to them don't you sometimes the place, industry have of salesforce the of ability transient fact about you occupied whole? how especially this you've think good think nature build. and on that salesforce the the about especially

Clint Jones

full their in less through this consider year But as really where for of salesforce our absolutely think the those team that issues. But a good and job from got a that. very year investment of with – about Michael, – agents question. a not to known labor seasonal place We agents made as was really of the really more amount our SEP. standpoint, us you feel can year, has obviously retaining done you think the keeping the tenure, enroll right, some we get really know, we've of and AEP. way an that unique the necessarily have thanks greater year, And this getting the a I'll OEP did only an Yes. for we we what you're to in investment hiring they of about have. kind the – XXXX a we’ve ability our that's next what that and we that folks level performance But And better think Platform, they agent the Encompass accelerate And time excited about have to won't about. make play same we we as vital role with they'll growth in that. investments this

payoff continue different So that agents think get you about really well. we about good as throughout then additional we've we the as through have. the provide training to investments made We receive long-term return we'll AEP additional this programs seasons and we'll feel and the

Michael Cherny

you basis? trending? in this, tied carriers And sense I LTV missed If LTVs talked apologize, of brought apples-to-apples how on. terms new you a you impacts same some how Got I but give carriers shook on that can it. to then of about the the out those us year-over-year, are on So

Clint Jones

Yes.

effectuation start high on with level. – what tenured agents on no especially little and newer to the legacy I'll are the So see you newer selling persistency want obviously if we call that mentioned, of moves into QX for QX newer compare there, do carriers, amount different apples-to-apples carrier, Like agents characteristics with needle real I'll a have a and – going and into we a agent can but we bit. you movement that material imagine you

about agents down QX platform. of as just we some the kind that's of in we newer think we size LTVs saw So on the sheer where come have

Michael Cherny

really Thanks. helpful. It's

Operator

Thank you.

Jailendra Credit Our question next of from Singh comes Suisse.

open. is line Your

Jailendra Singh

assuming you less of XQ? And versus down XQ to they a points and the talk and impactful? for improving the of to highlighted, XQ? provide three this expecting LTV any most X% you, on Thank about which to which was Can topic taking you in of be the my here. pressure three I breakdown of are quarter. want in XQ, And was in when decline you decline stay one items down questions thanks similar these one impactful MA LTV you like MA are

Clint Jones

you that? take do Travis, Hey, want to

Travis Matthiesen

Sure.

then the agent we the about being those and mix of about carrier mix carrier mix, exactly and mix So then the then unpack Jailendra, shopping decrease, And we're QX biggest QX to the QX currently on them. you as When driver exactly last shaking Think single-digit you're macro of as being right. waiting we that this three trends right. mix, decrease you LTVs. our in the guidance second, think third But as seasonality relative consumer agent you're about here macro think as you are and during there's being mid think largest, year, out LTV our trends. where when about shopping LTVs LTVs, QX focused and we AEP. year's obviously is think performance

Jailendra Singh

can I LTV – more I you doing meant shopping changes address if the just And didn't a really exactly little macro follow what assumptions Can by what be detailed like trends. to you you're exactly there? bit modeling, there,

Travis Matthiesen

Yes.

most the really persistency account to seen AEP of recent SEP it's So this during period. changes we've beginning and for

Jailendra Singh

combination it. challenges of kind going of I three I any then about will talk do was time, kind curious, various quick thoughts the and there I the consolidation evaluations of have just all as all from you they are are what about point And one follow-up. trading that but are mean, at. consolidation view? you about e-brokers mean, and through this people Got like, guys think industry just curious industry

Clint Jones

Yes. large organic opportunity that, we we're experiencing see rates high still growth and front think of I mean of a us. in obviously,

as public We And and the We where it's kind in that and doing as Encompass things still We well. we lot forward, strategy to peers good reasons. and kind time right in future, consumers the that I about, helping competitors that's the as that's – invested different time, hit to think get we've have been energy. Obviously, and we base And of focus that robust a in you fully service over strategy plan. of right, through understands focus think think a investor think think If our Encompass all focused. moving of this. this very you're hopefully, out three subset year in industry. of I there's there for enroll going a think we're where we're our the continue our space that we're are from

Jailendra Singh

Great. Thanks guys.

Operator

you. Thank

comes Our of RBC Capital next question Markets. from Morgan Frank

Your line is open.

Frank Morgan

specifically I I identify? guess decline the anything to afternoon. carriers. that topic I'll some the of able have Presumably, than the you presume. probably Good the LTV, carrier around of it's stay on the of call-out the just carrier there themselves Is been the product in

any is some you're to there of seeing the mix is out? more that or these carriers able where been parse issue noticeable call-out in that that thing So product from this you've

Clint Jones

that one. I'll Yes. take

biggest about think so around the with it's around new much The I lower those carriers. our thing new usually to LTVs differences biggest of then is call-out of compensation the there, the these not and product drivers modeling carriers carriers.

sometimes a have when when can highest carriers you the appreciate sets a for a get for don't CMS you ceiling As carrier, new you tier commission producer new while always carrier. pay, a you're what can of

the front new drives more conservative So that on carriers, perspective, end. a secondly, plays around data then role. And from modeling assumptions a we observed have less which

as we that's those LTVs carriers new an assume continue a added. produce, on would basis would level carrier of apples-to-apples across to one the implications but time we of over So that out,

Frank Morgan

you. Got

front reason less churn. end. like not getting It's really it's higher bad So necessarily for the on just paid basically you're levels a of

Clint Jones

right. Exactly, Yes.

Frank Morgan

Okay. last a that a there? there non-commissionable from call And I – noticed Anything was you last year drop down while. seen big then year, that on X,XXX in around sort of out we’ve would the the secondly, the from in lowest X,XXX

Clint Jones

choice our get we our platform, continuing just customer focus where commissions. the consumer on to on and paid We're platform that's choice Yes.

where that's again, now. our is focus right So

campaigns the choice third of year COVID, unique platform. some just have some to more there. as last it related quarter it's are but the carrier There timing differences our We consumer of in focus on

Frank Morgan

the something else quarter. revenue out being tail order in driven there of between noticed three a are too, same – Or it that things? would about is think the the magnitude those the factors negative that there or you I call was when you same is LTV of And it. driving Got little is sort that like But there?

Clint Jones

Yes.

The every You're update we are do tail again, about revenue drivers right. again, exactly same trends And of we're quarter. and adjustment. that that the the talking

our new in findings we're LTVs well. also those basis our not on look all just so make on quarterly a as we And recognize, but its back way

Frank Morgan

you. Thank Okay.

Operator

you. Thank

Tobey Our next of question Truist from Sommer comes Securities.

open. line is Your

Tobey Sommer

I less context is other of next expand description driver you. investment factors? a can Thank in of could upon was hoping of the that year needing you be to of your or slower invest growth, which because

Clint Jones

Yes. Thanks. Good question.

the that's year. really number context that of of we've this the around agents added So

want the entering think that agents number the about will I of XXXX we the sheer And to enter had that have belt of AEP good additional in that. the levels to under think XXXX growth amount an really number that You we about continue of will versus their kind we January training. feel of at agent of that maintain, so and agents January force

really the investment context around on our salesforce. that's number of just sheer So less increasing that

Tobey Sommer

could that helpful. on cash generate That's you like? Thanks. you how elaborate balance receivable to of Thanks. utilize look your and spendable the market what quicker sort could And and variables

Clint Jones

Sure.

and been balance. So to our number a our financing opportunity continue drive at leverage we've ways of ways growth. receivables different non-equity at fund looking to been to looking one And has

contract receivable given sheet a have we large value balance long-term. balance sitting asset, and short-term both commissions so the And on

to future. be unique And financing drive we that able into the ways so we've been might to vehicle looking at leverage

Tobey Sommer

Okay. you much. Thank very

Operator

you. Thank

Peters Greg from comes question James. of next Our Raymond

is Your open. line

Alex Bolton

Alex Bolton is This Greg in guys. Peters. for calling Hey,

through LTVs. I'm about Maybe it more talk sounds new you for going take better one how improve get like of Can question time. kind of these factors, you factors? expected how It carriers? is like last? them talk to the It on ask each to one short-term, you between long that might I more can time agents much does Sorry, just over commissions persistence new could your but sounds guess of

Clint Jones

Sure.

improve. we and tenured expect the the platform, for those And definitely there. our So the them agent more on carrier to to When continue both the is think we a we right. yes, have mix the our our time we mix platform, at are levers in carrier opportunity longer better improve, to disposal agents have that so on you're as about over exactly

on The other thing though we're macro is keeping a trends. the eye shopping close

back to That's keep why brokers we an that for factor and continue space eye do consumers like to us which is easier continue update and shop on, and making the our see then do in it. to look them quarterly. we we a it As

Alex Bolton

new agents you Are AEP? into Okay. going seeing starting to improve the

Clint Jones

And serve hiring are. than we Yes, we program had customer year you agents why and robust this this ramp strategic made which our higher those start decision year. as AEP, training a customers, is more had throughout much to QX recall, We we last to process. in we demand this earlier had

before AEP, lot training through same couple really those the gone a first And have thing. the that if about throughout we've strenuous of think the So you classes last agents had programs. quarters of

seen especially AEP all we've cohorts and improvement that. throughout in So as from those agents of each by of continued classes well improvement week of

a for So continuing kind And off get a we that that their careers. continue. may of we to little longer to take can be agents the program them speed have training will help expect those successful that we in

Alex Bolton

got talk – year you in than then less about cash this the need talking fourth know be about you I it's will like? sheet. guess, on of quarter just had before. million on flow, balance Okay. for the capital I $XXX might guess of last that I over can next And free year, but $XX and look million you use year, cash what you said maybe your

Clint Jones

Sure. Yes.

as spending also to we're bit in mentioned misnomer is that seasonal now, the right, revolver the thing And little cash that getting agents, a leveraged start bulk incur seasonal December all sometimes a the late the is why of January, of those $XXX we've marketing, is as the we're burn a paying to think we first historically. that then which to payments in one them spaces start revolver early of untapped. our access which on we policies our flow right and bulk where in, enrolling here million we mid We have we're I commission

a cash that really You're about timeframe why place. that we month mismatched, is couple revolver which in is have talking where just

Alex Bolton

for Okay. the Great. Thanks answers.

Operator

Thank you.

from Our of Lauren Morgan next question comes Schenk Stanley.

Your line is open.

Nathaniel Feather

for is Schenk. Hi. on Nathan Feather This Lauren

way in you more color just existing kind taken on incurred to kind of you one-time have agents, some On you the Thank steps that hiring retention that AEP? expect you quarter previously meet size XXXX? the And consistent any those lastly, you. noted to solid goals the then shouldn't the that just of among see confirming continue hit in maybe then ensure to to salesforce, continued that in you goal? And provide you cost to can occur

Clint Jones

Yes. Thank you.

continued yes, attrition, robust challenged obviously the had of the we're training we are to funnel we robust in. call, operational QX saw made coming of We fall but through higher experiencing agents changes and we yes, the way on some So a top kind we recruiting And a our in a getting program. the the funnel, when part – talked we recruiting. early attrition are around levels class top of we lot of of saw normalized

with kind them October We And ability are the them those things we're for come to saw through to XX right the onboarding training sell program we AEP ready start. together all our get get way still training. before of and for the

point that need it put size won't would good the investment far seen seeing as – so to a recruited And we've XXXX trends just necessarily that So into that far. to XXXX still of in normalized I the investments one-time all we're AEP due the as I throughout level not we've past. that to, we put really would kind we looks of in investment, about think attrition

it's in of entering remainder now about So about nothing the we really us there. alarming executing position putting and great as just AEP XXXX. think And for a

Nathaniel Feather

you. Thank Great. Okay.

Operator

for time. to I'd call I'm like at Clint the any this remarks. you. back questions over closing to showing no Jones Thank further turn

Clint Jones

Thank you, everybody.

so during sharing progress results full-year the call. look the our during continue the We by forward fourth see momentum Encompass. AEP encouraged far and quarter with to are We then to we

of country GoHealth. As We wonderful catching the our holiday all forward the Thank Veterans big share at to up also you over to our season. many today. helped Day veterans a years, soon. time Have look I everybody to work who approaches, a that the thank serve including for wanted you,

Operator

does Ladies this conclude for today's and Thank all you. you participating. conference. Thank gentlemen,

day. a disconnect. You now Have great may

GoHealth (GOCO) 10 Nov 212021 Q3 Earnings call transcript