NASDAQ$GOCO

GoHealth Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

GoHealth's second quarter performance was driven by growth in the Medicare—Internal segment and investments in the Encompass Platform, leading to increased revenue and policy submissions.

GoHealth, Inc. reported a 55% increase in second quarter net revenue to $196.9 million, driven by an 84% increase in Medicare—Internal revenue. The company's investments in the Encompass Platform contributed $17 million in revenue. However, the company reported a net loss of $39.2 million and a decrease in Adjusted EBITDA due to strategic investments in agent capacity and technology.

  • Second quarter net revenue increased 55% to $196.9 million compared to the prior year period.
  • Medicare—Internal revenue increased 84% to $160.4 million compared to the prior year period.
  • Medicare Advantage Approved Submissions increased 58% to 152,749 compared to the prior year period.
  • MA LTV Per Approved Submission increased 5% to $953 compared to the prior year period.

Headline financials

Total Revenue

$197M

Previous: $127M+55.0%
EPS (adj)

-$1.80

Previous: -$1.05-71.4%
Sales per Submission

$953.00

No prior period
Free Cash Flow

-$12M

No prior period
Net Income

-$12M

Previous: -$22.9M+47.6%
Operating Income

-$19M

No prior period
Gross Profit

$159M

No prior period
Cash & Equivalents

$113M

No prior period
Total Assets

$2.11B

No prior period
Stock-Based Comp

$7.6M

No prior period

Revenue & EPS history

GoHealth · Revenue · Quarterly

$197M

Q2 2021+55%vs Q2 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 is revising 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 $1,200 - $1,300 million, representing year-over-year growth of 37% - 48%
  • Full-year 2021 commission revenue of $1,000 - $1,100 million, representing year-over-year growth of 49% - 64%, fueled by the Company’s continued investment in its Medicare business, including GoHealth’s Encompass Platform
  • Seniors continue to demonstrate a high degree of interest in our model
  • Consumers can explore their Medicare plan choices from the safety and comfort of their own home through our Choice platform.
  • GoHealth’s telesales agents are equipped with the decision support tools and experience to help consumers select the right plan for their unique needs and achieve a superior health outcome with lower costs.

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.
  • Full-year 2021 Adjusted EBITDA1 of $300 - $330 million, representing year-over-year growth of 11% - 22%
  • Agent counts grew well ahead of the 50% target
  • Enhanced training and tight labor markets have created cost pressures that we expect to continue over the balance of the year.
  • Higher agent costs are reducing outlook for 2021 Adjusted EBITDA

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 Q2 2021

Historical avgQ2 2021

-7.7%

Avg return

Earnings day

-9.7%

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%-23.4%
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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