NASDAQ$GOCO

GoHealth Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

GoHealth's first quarter earnings were released, showing revenue growth driven by the Medicare-Internal segment. The company reaffirmed its full-year 2021 growth outlook.

GoHealth reported a 45% increase in first-quarter revenue to $204.2 million, driven by a 65% increase in the Medicare—Internal segment. The company reaffirmed its full-year 2021 outlook, expecting total net revenue of $1,150 - $1,300 million and Adjusted EBITDA of $345 - $385 million.

  • Total company revenue grew 45% to $204.2 million.
  • Medicare—Internal net revenue increased 65% to $157.4 million.
  • LTV Per carrier Approved MA Submission increased 17% to $995.
  • Adjusted EBITDA decreased 8% to $32.0 million due to investments in agent capacity, marketplace technology, branding and Encompass Platform.

Headline financials

Total Revenue

$204M

Previous: $141M+44.8%
EPS (adj)

-$0.30

Previous: -$0.17-72.5%
Sales per Submission

$995.00

Previous: $854.00+16.5%
Free Cash Flow

-$2.09M

No prior period
Net Income

-$2.09M

Previous: -$937K-123.1%
Operating Income

$1.4M

Previous: $5.83M-75.9%
Gross Profit

$156M

Previous: $98.9M+57.6%
Cash & Equivalents

$174M

No prior period
Total Assets

$2.1B

No prior period
Stock-Based Comp

$5.11M

No prior period

Revenue & EPS history

GoHealth · Revenue · Quarterly

$204M

Q1 2021+44.8%vs Q1 2020
Beat estimate in 7 of 12 quarters(58%)
ActualEstimate

Revenue by segment

GoHealth · $11.9M total across 4 segments · Q1 2026

  • Medicare Agency Revenue
    $9.8M
  • Other Non-Agency Revenue
    $1.76M
  • Medicare Non-Agency Revenue
    $200K
  • Other Agency Revenue
    $155K

Forward guidance

The Company reaffirmed its financial outlook for the fiscal year ending December 31, 2021 based on current market conditions and expectations:

Tailwinds

  • Full-year 2021 net revenue of $1,150 - $1,300 million, representing year-over-year growth of 31% - 48%
  • Full-year 2021 commission revenue of $950 - $1,100 million, representing year-over-year growth of 42% - 64%, fueled by the Company’s continued investment in its Medicare business, including GoHealth’s Encompass Platform
  • Full-year 2021 adjusted EBITDA of $345 - $385 million, representing year-over-year growth of 27% - 42%
  • Company expects Adjusted EBITDA of $345 - $385 million (+27% to +42%)
  • Company expects total net revenue of $1,150 - $1,300 million (+31% to +48%)

Headwinds

  • The trajectory of the U.S. economy remains challenging to predict, particularly given the continued uncertainty associated with the pace of recovery from the COVID-19 pandemic.
  • Failure to grow the Company’s customer base or retain its existing customers
  • Carriers’ ability to reduce commissions paid to the Company and adversely change their underwriting practices
  • Significant consolidation in the healthcare industry which could adversely alter the Company’s relationships with carriers
  • Information technology systems failures or capacity constraints interrupting the Company’s operations

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-7.7%

Avg return

Earnings day

-9.0%

Avg return

5 days after

-6.6%

Avg return

30 days after

26%

6 / 23 earnings

Positive

+32.2%

Q1 2023

Best reaction

-45.5%

Q2 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.5%
Q3 2025-24.4%-32.0%-12.8%
Q2 2025-9.0%-7.6%-23.8%
Q1 2025-0.6%-17.4%-21.4%
Q4 2024-14.4%-14.9%-32.8%
Q3 2024-6.6%-0.4%-15.4%
Q2 2024-21.4%-28.3%-34.0%
Q1 2024-8.0%-11.1%+2.2%
Q4 2023-13.0%-25.7%-27.0%
Q3 2023+2.3%+6.7%+7.4%
Q2 2023+6.8%+6.3%-17.2%
Q1 2023+32.2%+44.8%+99.5%
Q4 2022-19.9%-6.2%-18.5%
Q3 2022-16.7%-9.4%+95.3%
Q2 2022-31.5%-43.3%-57.0%
Q1 2022+11.1%+4.9%+6.5%
Q4 2021+23.7%+37.7%-9.8%
Q3 2021+1.1%-4.7%-18.1%
Q2 2021-45.5%-42.2%-34.7%
Q1 2021-2.7%-5.6%-4.0%
Q4 2020-14.9%-16.9%-4.1%
Q3 2020-14.9%-15.1%+1.8%
Q2 2020-10.5%-18.5%-27.1%
Q1 2020
Q4 2019
Q2 2019
Q1 2019

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