NYSE$SLQT

Selectquote Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported consolidated revenue and net income, driven by strategic redesign and Healthcare Services segment scale.

SelectQuote, Inc. reported a revenue of $299.4 million and a net income of $9.3 million for the third quarter of fiscal year 2023. The company's performance was driven by its strategic redesign and the continued scale of its Healthcare Services segment. They have increased guidance for fiscal year 2023.

  • Consolidated revenue for the third quarter of fiscal year 2023 was $299.4 million, compared to $274.3 million for the third quarter of fiscal year 2022.
  • Consolidated net income for the third quarter of fiscal year 2023 was $9.3 million, compared to a net loss of $7.0 million for the third quarter of fiscal year 2022.
  • Consolidated Adjusted EBITDA for the third quarter of fiscal year 2023 was $44.0 million, compared to $12.2 million for the third quarter of fiscal year 2022.
  • The company increased its guidance for fiscal year 2023 based on overall outperformance year-to-date.

Headline financials

Total Revenue

$299M

Previous: $275M+8.8%
EPS (adj)

$0.06

Previous: -$0.04+250.0%
Capital Expenditures

-$1.06M

Previous: -$24.5M+95.7%
Free Cash Flow

$8.21M

Previous: -$31M+126.5%
Net Income

$9.26M

Previous: -$6.45M+243.7%
Operating Income

$33.7M

Previous: $3.11M+986.2%
Gross Profit

$671K

Previous: $156M-99.6%
Cash & Equivalents

$92M

Previous: $199M-53.8%
Total Assets

$1.29B

Previous: $1.44B-10.3%
Stock-Based Comp

$2.96M

Previous: $2.14M+38.1%

Revenue & EPS history

SelectQuote · Revenue · Quarterly

$299M

Q3 2023+8.8%vs Q3 2022
Beat estimate in 12 of 14 quarters(86%)
ActualEstimate

Revenue by segment

SelectQuote · $222M total across 2 segments · Q3 2023

  • Senior
    $185M-20.6%
  • Life
    $37M-6.1%

Forward guidance

SelectQuote updated its fiscal year 2023 guidance ranges.

Tailwinds

  • Revenue now expected in a range of $950 million to $970 million

Headwinds

  • Net loss now expected in a range of $68 million to $48 million
  • Adjusted EBITDA now expected in a range of $40 million to $50 million

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-2.4%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+2.2%

Avg return

30 days after

57%

17 / 30 earnings

Positive

+75.5%

Q2 2023

Best reaction

-49.0%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-8.9%+39.9%+24.3%
Q2 2026-29.0%-37.4%-47.9%
Q1 2026+0.0%-16.8%-29.3%
Q3 2025-12.1%-14.2%-15.4%
Q2 2025+30.8%+37.0%-17.4%
Q1 2025+6.9%+16.7%+46.1%
Q4 2024-49.0%-44.6%-37.6%
Q3 2024+4.8%+12.4%+13.2%
Q2 2024+6.3%+40.5%+64.0%
Q1 2024-4.3%-5.8%-3.6%
Q4 2023-16.2%-16.9%-8.8%
Q3 2023+11.1%-16.7%+16.7%
Q2 2023+75.5%+128.8%+181.1%
Q1 2023+9.5%+9.2%+17.7%
Q4 2022-30.4%-47.5%-54.9%
Q3 2022+7.5%+0.4%+20.4%
Q2 2022-48.0%-55.4%-60.1%
Q1 2022-22.3%-17.8%-36.3%
Q4 2021-44.6%-37.6%-7.2%
Q3 2020-21.5%-22.2%-23.4%
Q3 2021-21.9%-23.2%-26.6%
Q2 2020+7.7%+9.2%+7.4%
Q2 2021+7.7%+9.2%+7.4%
Q1 2020+2.7%+7.7%+20.3%
Q1 2021+7.6%+10.5%+23.0%
Q4 2018+10.9%+12.0%-2.1%
Q4 2019+10.9%+12.0%-2.1%
Q3 2019+10.9%+12.0%-2.1%
Q2 2019+10.9%+12.0%-2.1%
Q4 2020+14.2%+20.1%+0.3%
Q1 2019

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