NASDAQ$GOCO

GoHealth Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

GoHealth's financial results for Q2 2020 were announced, demonstrating substantial revenue growth and a shift towards technology-driven models.

GoHealth reported a 71% increase in net revenues for the second quarter of 2020, driven by strong Medicare Advantage enrollments. The company's strategic focus on LTV/CAC contributed to industry-leading margins. GoHealth is on track for a record year in fiscal 2020.

  • Net revenues for the second quarter of 2020 increased by 71% compared to the prior year period.
  • Net loss for the second quarter of 2020 was $(22.9) million, compared to net income of $15.3 million in the prior year period.
  • Adjusted EBITDA for the second quarter of 2020 increased by 56% compared to the prior year period.
  • The company provided a full year 2020 outlook, including net revenues of $840-890 million.

Headline financials

Total Revenue

$127M

Previous: $74.5M+70.5%
EPS (adj)

-$1.05

Previous: $0.73-243.6%
Adjusted EBITDA Margin

21.2%

Previous: 23.2%-8.6%
Net Income

-$22.9M

Previous: $15.3M-249.7%

Revenue & EPS history

GoHealth · Revenue · Quarterly

$127M

Q2 2020+70.5%vs Q2 2019
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

GoHealth provided an outlook for the fiscal year ending December 31, 2020, based on current market conditions and expectations.

Tailwinds

  • Full year 2020 net revenue of $840 – $890 million, representing year-over-year growth of 56% – 65%
  • Full year 2020 adjusted EBITDA of $265 – $290 million, representing year-over-year growth of 55% – 71%
  • COVID-19 pandemic has created favorable industry dynamics for technology-driven direct-to-consumer models
  • The company believes it has the winning strategy necessary to deliver great results for its shareholders over the coming years.
  • Demand for healthcare has demonstrated great resilience during these times.

Headwinds

  • The trajectory of the US economy remains challenging to predict
  • There is heightened uncertainty associated with the COVID-19 pandemic.
  • The company's ability to comply with the numerous, complex and frequently changing laws regulating the marketing and sale of Medicare plans
  • The potential for an adverse change in our relationships with carriers, including a loss of a carrier relationships
  • Failure to grow the Company’s customer base or retain our existing customers

Historical earnings impact

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

Avg. return before/after earnings

Based on 19 quarterly earnings reports

Historical avg

-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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