NYSE$SLQT

Selectquote Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported a strong quarter with revenue increase, but net loss remained, while guidance suggests improved profitability in FY24.

SelectQuote, Inc. reported a revenue of $221.8 million for the fourth quarter of fiscal year 2023, compared to $139.4 million for the same period in 2022. The company's net loss was $47.8 million, an improvement from the $104.7 million loss in the prior year's quarter. Adjusted EBITDA was $(5.8) million, compared to $(60.8) million in the fourth quarter of fiscal year 2022.

  • Revenue for Q4 2023 was $221.8 million, a significant increase from $139.4 million in Q4 2022.
  • Net loss for Q4 2023 was $(47.8) million, an improvement from $(104.7) million in Q4 2022.
  • Adjusted EBITDA for Q4 2023 was $(5.8) million, compared to $(60.8) million in Q4 2022.
  • Full year 2023 results surpassed initial forecasts due to higher growth and operational execution.

Headline financials

Total Revenue

$222M

Previous: $139M+59.1%
EPS (adj)

-$0.29

Previous: -$0.34+14.7%
Capital Expenditures

$391K

Previous: $283K+38.2%
Free Cash Flow

-$6.93M

Previous: -$54.2M+87.2%
Net Income

-$47.8M

Previous: -$105M+54.3%
Operating Income

-$35.7M

Previous: -$119M+70.0%
Gross Profit

$84.9M

Previous: $32.3M+162.6%
Cash & Equivalents

$83.2M

Previous: $141M-41.0%
Total Assets

$1.22B

Previous: $1.29B-5.5%
Stock-Based Comp

$2.79M

Previous: $800K+248.1%

Revenue & EPS history

SelectQuote · Revenue · Quarterly

$222M

Q4 2023+59.1%vs Q4 2022
Beat estimate in 12 of 14 quarters(86%)
ActualEstimate

Revenue by segment

SelectQuote · $225M total across 3 segments · Q4 2023

  • Senior
    $104M
  • Healthcare Services
    $82.8M
  • Life
    $38.1M

Forward guidance

SelectQuote anticipates revenue between $1.05 billion and $1.2 billion, a net loss ranging from $50 million to $22 million, and an adjusted EBITDA between $80 million and $105 million for fiscal year 2024.

Tailwinds

  • Revenue expected in a range of $1.05 billion to $1.2 billion
  • Net loss expected in a range of $50 million to $22 million
  • Adjusted EBITDA expected in a range of $80 million to $105 million
  • Strategic redesign across each businesses should provide leverage.
  • Significant opportunity in the Healthcare Services segment.

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 Q4 2023

Historical avgQ4 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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