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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________________
FORM 8-K
_______________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 2, 2023
_____________________________________
SELECTQUOTE, INC.
(Exact name of registrant as specified in its charter)
_____________________________________
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Delaware | 001-39295 | 94-3339273 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
|
6800 West 115th Street, Suite 2511 |
Overland Park, Kansas 66211 |
(Address of principal executive offices) (Zip code) |
| | |
(913) 599-9225 |
(Registrant’s telephone number, including area code) |
|
No change since last report |
(Former Name or Address, If Changed Since Last Report) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| | | | | |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | | | | | | | |
Title of each class | | Trading Symbol | | Name of each exchange on which registered |
Common Stock, $0.01 par value | | SLQT | | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On November 2, 2023, the Company reported its financial results for the first quarter ended September 30, 2023. A copy of the related press release and investor presentation are attached hereto as Exhibits 99.1 and 99.2, respectively.
These exhibits are being furnished pursuant to Item 2.02, and the information contained therein shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall either of them be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| | | | | |
Exhibit No. | Description of Exhibit |
| Press Release |
| Investor Presentation |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
Forward Looking Statements
This Current Report on Form 8-K includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect the Company’s current views with respect to, among other things, future events, including the Company’s notification of the NYSE of its intent to cure the stock price deficiency and any potential plans for doing so. Forward-looking statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts and are based on our current expectations and assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, and expected future developments, as well as other factors we believe are appropriate under the circumstances. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict. Although we believe the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied in these forward-looking statements due to a number of factors, many of which are beyond our control, including our ability to regain compliance with the continued listing standards of the NYSE within the applicable cure period, our ability to continue to comply with applicable NYSE listing standards, and other factors under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended June 30, 2023 and in other filings that the Company has made and may make with the Securities and Exchange Commission in the future. All of the forward-looking statements made in this Current Report on Form 8-K are qualified by these cautionary statements. You should not place undue reliance on these forward-looking statements, which are made only as of the date of this Current Report on Form 8-K. Except as otherwise required by law, we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SELECTQUOTE, INC.
| | | | | |
Date: November 2, 2023 | By: /s/ Ryan Clement |
| Name: Ryan Clement |
| Title: Chief Financial Officer
|
SelectQuote, Inc. Reports First Quarter 2024 Results
First Quarter of Fiscal Year 2024 – Consolidated Earnings Highlights
•Revenue of $232.7 million
•Net loss of $31.1 million
•Adjusted EBITDA* of $(11.4) million
Reaffirming Fiscal Year 2024 Guidance Ranges:
•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
First Quarter of Fiscal Year 2024 – Segment Highlights
Senior
•Revenue of $89.9 million
•Adjusted EBITDA* of $(1.3) million
•Approved Medicare Advantage policies of 97,681
Healthcare Services
•Revenue of $97.4 million
•Adjusted EBITDA* of $2.3 million
•Over 52,000 SelectRx members
Life
•Revenue of $37.8 million
•Adjusted EBITDA* of $5.2 million
Auto & Home
•Revenue of $9.0 million
•Adjusted EBITDA* of $3.3 million
OVERLAND PARK, Kan., November 2, 2023--(BUSINESS WIRE)--SelectQuote, Inc. (NYSE: SLQT) reported consolidated revenue for the first quarter of fiscal year 2024 of $232.7 million compared to consolidated revenue for the first quarter of fiscal year 2023 of $162.5 million. Consolidated net loss for the first quarter of fiscal year 2024 was $31.1 million compared to consolidated net loss for the first quarter of fiscal year 2023 of $42.5 million. Finally, consolidated Adjusted EBITDA* for the first quarter of fiscal year 2024 was $(11.4) million compared to consolidated Adjusted EBITDA* for the first quarter of fiscal year 2023 of $(27.5) million.
Chief Executive Officer Tim Danker commented, “SelectQuote generated strong results across each segment of the company. Financial results were ahead of our expectations for the seventh straight quarter, and our platform is exceptionally well prepared for this year’s Medicare Advantage selling season. Agent onboarding was ahead of plan, and similar to fiscal 2023, our sales force has a higher mix of tenured agents, which drove significant efficiency gains compared to flex agents in past seasons. In the early days of the annual enrollment period for Medicare Advantage, plan features are similar to last year, and our engagement with customers has been inline with expectations.”
“Our growing SelectRx and Healthcare Services platform continues to increasingly contribute to our financial results and out performance. SelectRx generated record revenue approaching $100 million in the quarter, which was higher than revenue from our Senior segment for the first time in company history. We see the rapid success of Healthcare Services as a definitive proof point of the value that SelectQuote’s agent and information-enabled model can create for our customers, carrier partners and healthcare service providers.”
Mr. Danker continued, “With a strong beginning to our fiscal year, we reaffirm our full-year 2024 financial guidance.”
*See “Non-GAAP Financial Measures” below.
Segment Results
We currently report on four segments: 1) Senior, 2) Healthcare Services, 3) Life, and 4) Auto & Home. The performance measures of the segments include total revenue and Adjusted EBITDA*. Costs of revenue, cost of goods sold-pharmacy revenue, marketing and advertising, selling, general, and administrative, and technical development operating expenses that are directly attributable to a segment are reported within the applicable segment. Indirect costs of revenue, marketing and advertising, selling, general, and administrative, and technical development operating expenses are allocated to each segment based on varying metrics such as headcount. Adjusted EBITDA is calculated as total revenue for the applicable segment less direct and allocated costs of revenue, cost of goods sold, marketing and advertising, technical development, and selling, general, and administrative operating costs and expenses, excluding depreciation and amortization expense; gain or loss on disposal of property, equipment, and software; share-based compensation expense; and non-recurring expenses such as severance payments and transaction costs.
Senior
Financial Results
The following table provides the financial results for the Senior segment for the periods presented:
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | | | | | |
(in thousands) | 2023 | | 2022 | | % Change | | | | | | |
Revenue | $ | 89,918 | | | $ | 77,513 | | | 16 | % | | | | | | |
Adjusted EBITDA* | (1,335) | | | (3,853) | | | 65 | % | | | | | | |
Adjusted EBITDA Margin* | (1) | % | | (5) | % | | | | | | | | |
Operating Metrics
Submitted Policies
Submitted policies are counted when an individual completes an application with our licensed agent and provides authorization to the agent to submit the application to the insurance carrier partner. The applicant may have additional actions to take before the application will be reviewed by the insurance carrier.
The following table shows the number of submitted policies for the periods presented:
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | | | | | |
| 2023 | | 2022 | | % Change | | | | | | |
Medicare Advantage | 104,532 | | | 90,028 | | | 16 | % | | | | | | |
Medicare Supplement | 481 | | | 665 | | | (28) | % | | | | | | |
Dental, Vision and Hearing | 12,496 | | | 16,334 | | | (24) | % | | | | | | |
Prescription Drug Plan | 311 | | | 364 | | | (15) | % | | | | | | |
Other | 1,632 | | | 2,026 | | | (19) | % | | | | | | |
Total | 119,452 | | | 109,417 | | | 9 | % | | | | | | |
*See “Non-GAAP Financial Measures” below.
Approved Policies
Approved policies represents the number of submitted policies that were approved by our insurance carrier partners for the identified product during the indicated period. Not all approved policies will go in force.
The following table shows the number of approved policies for the periods presented:
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | | | | | |
| 2023 | | 2022 | | % Change | | | | | | |
Medicare Advantage | 97,681 | | | 83,173 | | | 17 | % | | | | | | |
Medicare Supplement | 360 | | | 500 | | | (28) | % | | | | | | |
Dental, Vision and Hearing | 10,529 | | | 12,275 | | | (14) | % | | | | | | |
Prescription Drug Plan | 254 | | | 390 | | | (35) | % | | | | | | |
Other | 1,052 | | | 1,662 | | | (37) | % | | | | | | |
Total | 109,876 | | | 98,000 | | | 12 | % | | | | | | |
Lifetime Value of Commissions per Approved Policy
Lifetime value of commissions per approved policy represents commissions estimated to be collected over the estimated life of an approved policy based on multiple factors, including but not limited to, contracted commission rates, carrier mix and expected policy persistency with applied constraints. The lifetime value of commissions per approved policy is equal to the sum of the commission revenue due upon the initial sale of a policy, and when applicable, an estimate of future renewal commissions.
The following table shows the lifetime value of commissions per approved policy for the periods presented:
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | | | | | |
(dollars per policy): | 2023 | | 2022 | | % Change | | | | | | |
Medicare Advantage | $ | 761 | | | $ | 780 | | | (2) | % | | | | | | |
Medicare Supplement | 1,041 | | | 1,132 | | | (8) | % | | | | | | |
Dental, Vision and Hearing | 147 | | | 68 | | | 116 | % | | | | | | |
Prescription Drug Plan | 278 | | | 233 | | | 19 | % | | | | | | |
Other | 11 | | | 74 | | | (85) | % | | | | | | |
| | | | | | | | | | | |
Healthcare Services
Financial Results
The following table provides the financial results for the Healthcare Services segment for the periods presented:
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | | | | | |
(in thousands) | 2023 | | 2022 | | % Change | | | | | | |
Revenue | $ | 97,368 | | | $ | 43,067 | | | 126 | % | | | | | | |
Adjusted EBITDA* | 2,322 | | | (11,787) | | | NM | | | | | | |
Adjusted EBITDA Margin* | 2 | % | | (27) | % | | | | | | | | |
*See “Non-GAAP Financial Measures” below.
Operating Metrics
Members
The total number of SelectRx members represents the amount of customers to which an order has been shipped, as this is the primary key driver of revenue for Healthcare Services.
The following table shows the total number of SelectRx members for the periods presented:
| | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | |
| | 2023 | | 2022 | | | | |
Total SelectRx Members | | 52,750 | | | 32,596 | | | | | |
Combined Senior and Healthcare Services - Consumer Per Unit Economics
The opportunity to leverage our existing database and distribution model to improve access to healthcare services for our consumers has created a need for us to review our key metrics related to our per unit economics. As we think about the revenue and expenses for Healthcare Services, we note that they are derived from the marketing acquisition costs associated with the sale of an MA or MS policy, some of which costs are allocated directly to Healthcare Services, and therefore determined that our per unit economics measure should include components from both Senior and Healthcare Services. See details of revenue and expense items included in the calculation below.
Combined Senior and Healthcare Services consumer per unit economics represents total MA and MS commissions; other product commissions; other revenues, including revenues from Healthcare Services; and operating expenses associated with Senior and Healthcare Services, each shown per number of approved MA and MS policies over a given time period. Management assesses the business on a per-unit basis to help ensure that the revenue opportunity associated with a successful policy sale is attractive relative to the marketing acquisition cost. Because not all acquired leads result in a successful policy sale, all per-policy metrics are based on approved policies, which is the measure that triggers revenue recognition.
The MA and MS commission per MA/MS policy represents the LTV for policies sold in the period. Other commission per MA/MS policy represents the LTV for other products sold in the period, including DVH prescription drug plan, and other products, which management views as additional commission revenue on our agents’ core function of MA/MS policy sales. Pharmacy revenue per MA/MS policy represents revenue from SelectRx, and other revenue per MA/MS policy represents revenue from Population Health, production bonuses, marketing development funds, lead generation revenue, and adjustments from the Company’s reassessment of its cohorts’ transaction prices. Total operating expenses per MA/MS policy represents all of the operating expenses within Senior and Healthcare Services. The revenue to customer acquisition cost (“CAC”) multiple represents total revenue as a multiple of total marketing acquisition costs, which represents the direct costs of acquiring leads. These costs are included in marketing and advertising expense within the total operating expenses per MA/MS policy.
The following table shows combined Senior and Healthcare Services consumer per unit economics for the periods presented. Based on the seasonality of Senior and the fluctuations between quarters, we believe that the most relevant view of per unit economics is on a rolling 12-month basis. All per MA/MS policy metrics below are based on the sum of approved MA/MS policies, as both products have similar commission profiles.
*See “Non-GAAP Financial Measures” below.
| | | | | | | | | | | | | |
| Twelve Months Ended September 30, |
(dollars per approved policy): | 2023 | | 2022 | | |
Medicare Advantage and Medicare Supplement approved policies | 594,554 | | 665,358 | | |
Medicare Advantage and Medicare Supplement commission per MA/MS policy | $ | 872 | | | $ | 902 | | | |
Other commission per MA/MS policy | 13 | | | 22 | | | |
Pharmacy revenue per MA/MS policy | 493 | | | 144 | | | |
Other revenue per MA/MS policy | 151 | | | (148) | | | |
Total revenue per MA/MS policy | 1,529 | | | 920 | | | |
Total operating expenses per MA/MS policy | (1,278) | | | (1,185) | | | |
Adjusted EBITDA per MA/MS policy (1) | 251 | | | (265) | | | |
Adjusted EBITDA Margin per MA/MS policy (1) | 16 | % | | (29) | % | | |
Revenue/CAC multiple | 4.3X | | 1.8X | | |
(1) These financial measures are not calculated in accordance with GAAP. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures” for information regarding our use of these non-GAAP financial measures and a reconciliation of such measures to their nearest comparable financial measures calculated and presented in accordance with GAAP.
Total revenue per MA/MS policy increased 66% for the twelve months ended September 30, 2023, compared to the twelve months ended September 30, 2022, primarily due to the increase in pharmacy revenue. Total operating expenses per MA/MS policy increased 8% for the twelve months ended September 30, 2023, compared to the twelve months ended September 30, 2022, driven by an increase in cost of goods sold-pharmacy revenue for SelectRx due to the growth of the business, offset by a decrease in our marketing and advertising costs.
Life
Financial Results
The following table provides the financial results for the Life segment for the periods presented:
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | | | | | |
(in thousands) | 2023 | | 2022 | | % Change | | | | | | |
Revenue | $ | 37,803 | | | $ | 36,835 | | | 3 | % | | | | | | |
Adjusted EBITDA* | 5,240 | | | 5,225 | | | — | % | | | | | | |
Adjusted EBITDA Margin* | 14 | % | | 14 | % | | | | | | | | |
Operating Metrics
Life premium represents the total premium value for all policies that were approved by the relevant insurance carrier partner and for which the policy document was sent to the policyholder and payment information was received by the relevant insurance carrier partner during the indicated period. Because our commissions are earned based on a percentage of total premium, total premium volume for a given period is the key driver of revenue for our Life segment.
*See “Non-GAAP Financial Measures” below.
The following table shows term and final expense premiums for the periods presented:
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | | | | | |
(in thousands) | 2023 | | 2022 | | % Change | | | | | | |
Term Premiums | $ | 18,190 | | | $ | 15,098 | | | 20 | % | | | | | | |
Final Expense Premiums | 19,699 | | | 22,364 | | | (12) | % | | | | | | |
Total | $ | 37,889 | | | $ | 37,462 | | | 1 | % | | | | | | |
Auto & Home
Financial Results
The following table provides the financial results for the Auto & Home segment for the periods presented:
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | | | | | |
(in thousands) | 2023 | | 2022 | | % Change | | | | | | |
Revenue | $ | 9,027 | | | $ | 7,082 | | | 27 | % | | | | | | |
Adjusted EBITDA* | 3,319 | | | 2,441 | | | 36 | % | | | | | | |
Adjusted EBITDA Margin* | 37 | % | | 34 | % | | | | | | | | |
Operating Metrics
Auto & Home premium represents the total premium value of all new policies that were approved by our insurance carrier partners during the indicated period. Because our commissions are earned based on a percentage of total premium, total premium volume for a given period is the key driver of revenue for our Auto & Home segment.
The following table shows premiums for the periods presented:
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | | | | | |
(in thousands): | 2023 | | 2022 | | % Change | | | | | | |
Premiums | $ | 13,877 | | | $ | 11,549 | | | 20 | % | | | | | | |
*See “Non-GAAP Financial Measures” below.
Earnings Conference Call
SelectQuote, Inc. will host a conference call with the investment community today, Thursday, November 2, 2023, beginning at 4:30 p.m. ET. To register for this conference call, please use this link: https://www.netroadshow.com/events/login?show=98c46003&confId=56957. After registering, a confirmation will be sent via email, including dial-in details and unique conference call codes for entry. Registration is open through the live call, but to ensure you are connected for the full call we suggest registering at least 10 minutes before the start of the call. The event will also be webcasted live via our investor relations website https://ir.selectquote.com/investor-home/default.aspx.
Non-GAAP Financial Measures
This release includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. To supplement our financial statements presented in accordance with GAAP and to provide investors with additional information regarding our GAAP financial results, we have presented in this release Adjusted EBITDA and Adjusted EBITDA Margin, which are non-GAAP financial measures. These non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly titled measures presented by other companies. We define Adjusted EBITDA as income (loss) before interest expense, income tax expense (benefit), depreciation and amortization, and certain add-backs for non-cash or non-recurring expenses, including restructuring and share-based compensation expenses. The most directly comparable GAAP measure is net income (loss). We monitor and have presented in this release Adjusted EBITDA because it is a key measure used by our management and Board of Directors to understand and evaluate our operating performance, to establish budgets and to develop operational goals for managing our business. In particular, we believe that excluding the impact of these expenses in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core operating performance.
We believe that these non-GAAP financial measures help identify underlying trends in our business that could otherwise be masked by the effect of the expenses that we exclude in the calculations of these non-GAAP financial measures. Accordingly, we believe that these financial measures provide useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects. Reconciliations of the differences between the non-GAAP financial measures included herein and their most directly comparable GAAP financial measures are set forth below beginning on page 12.
Forward Looking Statements
This release contains forward-looking statements. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.
There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: the impacts of the COVID-19 pandemic and any other public health events, our reliance on a limited number of insurance carrier partners and any potential termination of those relationships or failure to develop new relationships; existing and future laws and regulations affecting the health insurance market; changes in health insurance products offered by our insurance carrier partners and the health insurance market generally; insurance carriers offering products and services directly to consumers; changes to commissions paid by insurance carriers and underwriting practices; competition with brokers, including exclusively online brokers and carriers who opt to sell policies directly to consumers; competition from government-run health insurance exchanges; developments in the U.S. health insurance system;
our dependence on revenue from carriers in our senior segment and downturns in the senior health as well as life, automotive and home insurance industries; our ability to develop new offerings and penetrate new vertical markets; risks from third-party products; failure to enroll individuals during the Medicare annual enrollment period; our ability to attract, integrate and retain qualified personnel; our dependence on lead providers and ability to compete for leads; failure to obtain and/or convert sales leads to actual sales of insurance policies; access to data from consumers and insurance carriers; accuracy of information provided from and to consumers during the insurance shopping process; cost-effective advertisement through internet search engines; ability to contact consumers and market products by telephone; global economic conditions, including inflation; disruption to operations as a result of future acquisitions; significant estimates and assumptions in the preparation of our financial statements; impairment of goodwill; potential litigation and other legal proceedings or inquiries; our existing and future indebtedness; our ability to maintain compliance with our debt covenants; access to additional capital; failure to protect our intellectual property and our brand; fluctuations in our financial results caused by seasonality; accuracy and timeliness of commissions reports from insurance carriers; timing of insurance carriers’ approval and payment practices; factors that impact our estimate of the constrained lifetime value of commissions per policyholder; changes in accounting rules, tax legislation and other legislation; disruptions or failures of our technological infrastructure and platform; failure to maintain relationships with third-party service providers; cybersecurity breaches or other attacks involving our systems or those of our insurance carrier partners or third-party service providers; our ability to protect consumer information and other data; failure to market and sell Medicare plans effectively or in compliance with laws;and other factors related to our pharmacy business, including manufacturing or supply chain disruptions, access to and demand for prescription drugs, and regulatory changes or other industry developments that may affect our pharmacy operations. For a further discussion of these and other risk factors that could impact our future results and performance, see the section entitled “Risk Factors” in the most recent Annual Report on Form 10-K (the “Annual Report”) and subsequent periodic reports filed by us with the Securities and Exchange Commission. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as otherwise required by law, we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.
About SelectQuote:
Founded in 1985, SelectQuote (NYSE: SLQT) provides solutions that help consumers protect their most valuable assets: their families, health, and property. The company pioneered the model of providing unbiased comparisons from multiple, highly-rated insurance companies allowing consumers to choose the policy and terms that best meet their unique needs. Two foundational pillars underpin SelectQuote’s success: a strong force of highly-trained and skilled agents who provide a consultative needs analysis for every consumer, and proprietary technology that sources and routes high-quality leads.
With an ecosystem offering high touchpoints for consumers across insurance, medicare, pharmacy, and value-based care, the company now has four core business lines: SelectQuote Senior, SelectQuote Healthcare Services, SelectQuote Life, and SelectQuote Auto and Home. SelectQuote Senior serves the needs of a demographic that sees around 10,000 people turn 65 each day with a range of Medicare Advantage and Medicare Supplement plans. SelectQuote Healthcare Services is comprised of the SelectRx Pharmacy, a Patient-Centered Pharmacy Home™ (PCPH) accredited pharmacy, and Population Health which proactively connects consumers with a wide breadth of healthcare services supporting their needs.
Investor Relations:
Sloan Bohlen
877-678-4083
investorrelations@selectquote.com
Media:
Matt Gunter
913-286-4931
matt.gunter@selectquote.com
Source: SelectQuote, Inc.
SELECTQUOTE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
| | | | | | | | | | | |
| September 30, 2023 | | June 30, 2023 |
ASSETS | | | |
CURRENT ASSETS: | | | |
Cash and cash equivalents | $ | 48,486 | | | $ | 83,156 | |
| | | |
Accounts receivable, net of allowances of $3.9 million and $2.7 million, respectively | 115,872 | | | 154,565 | |
Commissions receivable-current | 160,370 | | | 111,148 | |
Other current assets | 16,361 | | | 14,355 | |
Total current assets | 341,089 | | | 363,224 | |
COMMISSIONS RECEIVABLE—Net | 709,277 | | | 729,350 | |
PROPERTY AND EQUIPMENT—Net | 24,840 | | | 27,452 | |
SOFTWARE—Net | 14,677 | | | 14,740 | |
OPERATING LEASE RIGHT-OF-USE ASSETS | 22,779 | | | 23,563 | |
INTANGIBLE ASSETS—Net | 9,442 | | | 10,200 | |
GOODWILL | 29,136 | | | 29,136 | |
OTHER ASSETS | 18,904 | | | 21,586 | |
TOTAL ASSETS | $ | 1,170,144 | | | $ | 1,219,251 | |
| | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | |
CURRENT LIABILITIES: | | | |
Accounts payable | $ | 31,964 | | | $ | 27,577 | |
Accrued expenses | 18,284 | | | 16,993 | |
Accrued compensation and benefits | 37,953 | | | 49,966 | |
| | | |
| | | |
Operating lease liabilities—current | 4,980 | | | 5,175 | |
Current portion of long-term debt | 33,883 | | | 33,883 | |
Contract liabilities | 5,757 | | | 1,691 | |
Other current liabilities | 3,925 | | | 1,972 | |
Total current liabilities | 136,746 | | | 137,257 | |
LONG-TERM DEBT, NET—less current portion | 661,185 | | | 664,625 | |
| | | |
DEFERRED INCOME TAXES | 26,041 | | | 39,581 | |
OPERATING LEASE LIABILITIES | 26,590 | | | 27,892 | |
OTHER LIABILITIES | 2,844 | | | 2,926 | |
Total liabilities | 853,406 | | | 872,281 | |
| | | |
COMMITMENTS AND CONTINGENCIES | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
SHAREHOLDERS’ EQUITY: | | | |
Common stock, $0.01 par value | 1,677 | | | 1,669 | |
Additional paid-in capital | 570,087 | | | 567,266 | |
| | | |
Accumulated deficit | (266,695) | | | (235,644) | |
Accumulated other comprehensive income | 11,669 | | | 13,679 | |
Total shareholders’ equity | 316,738 | | | 346,970 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 1,170,144 | | | $ | 1,219,251 | |
SELECTQUOTE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Unaudited)
(In thousands)
| | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | |
| 2023 | | 2022 | | | | |
REVENUE: | | | | | | | |
Commission | $ | 117,756 | | | $ | 106,335 | | | | | |
| | | | | | | |
Pharmacy | 94,788 | | | 41,093 | | | | | |
Other | 20,186 | | | 15,056 | | | | | |
Total revenue | 232,730 | | | 162,484 | | | | | |
| | | | | | | |
OPERATING COSTS AND EXPENSES: | | | | | | | |
Cost of revenue | 72,511 | | | 65,164 | | | | | |
Cost of goods sold—pharmacy revenue | 84,008 | | | 42,354 | | | | | |
Marketing and advertising | 62,323 | | | 57,594 | | | | | |
Selling, general, and administrative | 28,666 | | | 30,706 | | | | | |
Technical development | 7,637 | | | 6,182 | | | | | |
| | | | | | | |
Total operating costs and expenses | 255,145 | | | 202,000 | | | | | |
| | | | | | | |
LOSS FROM OPERATIONS | (22,415) | | | (39,516) | | | | | |
| | | | | | | |
INTEREST EXPENSE, NET | (21,397) | | | (16,736) | | | | | |
| | | | | | | |
OTHER INCOME (EXPENSE), NET | (38) | | | 158 | | | | | |
LOSS BEFORE INCOME TAX BENEFIT | (43,850) | | | (56,094) | | | | | |
INCOME TAX BENEFIT | (12,799) | | | (13,610) | | | | | |
| | | | | | | |
NET LOSS | $ | (31,051) | | | $ | (42,484) | | | | | |
| | | | | | | |
NET LOSS PER SHARE: | | | | | | | |
Basic | $ | (0.19) | | | $ | (0.26) | | | | | |
Diluted | $ | (0.19) | | | $ | (0.26) | | | | | |
| | | | | | | |
WEIGHTED-AVERAGE COMMON STOCK OUTSTANDING USED IN PER SHARE AMOUNTS: | | | | | | | |
Basic | 167,453 | | | 164,824 | | | | | |
Diluted | 167,453 | | | 164,824 | | | | | |
| | | | | | | |
OTHER COMPREHENSIVE INCOME (LOSS) NET OF TAX: | | | | | | | |
Gain (loss) on cash flow hedge | (2,010) | | | 4,400 | | | | | |
OTHER COMPREHENSIVE INCOME (LOSS) | (2,010) | | | 4,400 | | | | | |
COMPREHENSIVE LOSS | $ | (33,061) | | | $ | (38,084) | | | | | |
SELECTQUOTE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
| | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended September 30, | | | | |
| | | | | 2023 | | 2022 | | | | |
CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | |
Net loss | | | | | $ | (31,051) | | | $ | (42,484) | | | | | |
Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities: | | | | | | | | | | | |
Depreciation and amortization | | | | | 5,989 | | | 6,802 | | | | | |
| | | | | | | | | | | |
Loss on disposal of property, equipment, and software | | | | | 9 | | | 325 | | | | | |
| | | | | | | | | | | |
Share-based compensation expense | | | | | 3,175 | | | 2,630 | | | | | |
Deferred income taxes | | | | | (13,049) | | | (13,931) | | | | | |
Amortization of debt issuance costs and debt discount | | | | | 1,612 | | | 1,612 | | | | | |
Write-off of debt issuance costs | | | | | — | | | 710 | | | | | |
| | | | | | | | | | | |
Accrued interest payable in kind | | | | | 3,622 | | | 1,307 | | | | | |
Non-cash lease expense | | | | | 784 | | | 1,103 | | | | | |
Changes in operating assets and liabilities: | | | | | | | | | | | |
Accounts receivable, net | | | | | 38,693 | | | 34,770 | | | | | |
Commissions receivable | | | | | (29,148) | | | (36,012) | | | | | |
Other assets | | | | | (2,027) | | | 1,271 | | | | | |
Accounts payable and accrued expenses | | | | | 5,257 | | | (10,496) | | | | | |
Operating lease liabilities | | | | | (1,498) | | | (1,256) | | | | | |
Other liabilities | | | | | (6,039) | | | 6,479 | | | | | |
Net cash used in operating activities | | | | | (23,671) | | | (47,170) | | | | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | |
Purchases of property and equipment | | | | | (616) | | | (298) | | | | | |
Proceeds from sales of property and equipment | | | | | 253 | | | — | | | | | |
Purchases of software and capitalized software development costs | | | | | (1,782) | | | (2,087) | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net cash used in investing activities | | | | | (2,145) | | | (2,385) | | | | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Payments on Term Loans | | | | | (8,471) | | | (8,917) | | | | | |
| | | | | | | | | | | |
Payments on other debt | | | | | (37) | | | (44) | | | | | |
Proceeds from common stock options exercised and employee stock purchase plan | | | | | — | | | 1,079 | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Payments of tax withholdings related to net share settlement of equity awards | | | | | (346) | | | (32) | | | | | |
Payments of debt issuance costs | | | | | — | | | (10,110) | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Payment of acquisition holdback | | | | | — | | | (2,335) | | | | | |
Net cash used in financing activities | | | | | (8,854) | | | (20,359) | | | | | |
NET DECREASE IN CASH AND CASH EQUIVALENTS | | | | | (34,670) | | | (69,914) | | | | | |
CASH AND CASH EQUIVALENTS—Beginning of period | | | | | 83,156 | | | 140,997 | | | | | |
CASH AND CASH EQUIVALENTS—End of period | | | | | $ | 48,486 | | | $ | 71,083 | | | | | |
SELECTQUOTE, INC. AND SUBSIDIARIES
Net Loss to Adjusted EBITDA Reconciliation
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, 2023 |
(in thousands) | Senior | | Healthcare Services | | Life | | Auto & Home | | Corp & Elims | | Consolidated |
Revenue | $ | 89,918 | | | $ | 97,368 | | | $ | 37,803 | | | $ | 9,027 | | | $ | (1,386) | | | $ | 232,730 | |
Operating expenses | (91,253) | | | (95,046) | | | (32,563) | | | (5,708) | | | (19,498) | | | (244,068) | |
Other income (expense), net | — | | | — | | | — | | | — | | | (38) | | | (38) | |
Adjusted EBITDA | (1,335) | | | 2,322 | | | 5,240 | | | 3,319 | | | (20,922) | | | (11,376) | |
Share-based compensation expense | | | | | | | | | | | (3,175) | |
Transaction costs | | | | | | | | | | | (1,904) | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Depreciation and amortization | | | | | | | | | | | (5,989) | |
Loss on disposal of property, equipment, and software | | | | | | | | | | | (9) | |
Interest expense, net | | | | | | | | | | | (21,397) | |
| | | | | | | | | | | |
Income tax benefit | | | | | | | | | | | 12,799 | |
Net loss | | | | | | | | | | | $ | (31,051) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, 2022 |
(in thousands) | Senior | | Healthcare Services | | Life | | Auto & Home | | Corp & Elims | | Consolidated |
Revenue | $ | 77,513 | | | $ | 43,067 | | | $ | 36,835 | | | $ | 7,082 | | | $ | (2,013) | | | $ | 162,484 | |
Operating expenses | (81,366) | | | (54,854) | | | (31,811) | | | (4,640) | | | (17,446) | | | (190,117) | |
Other income (expense), net | — | | | — | | | 201 | | | (1) | | | (42) | | | 158 | |
Adjusted EBITDA | (3,853) | | | (11,787) | | | 5,225 | | | 2,441 | | | (19,501) | | | (27,475) | |
Share-based compensation expense | | | | | | | | | | | (2,630) | |
Transaction costs | | | | | | | | | | | (2,126) | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Depreciation and amortization | | | | | | | | | | | (6,802) | |
Loss on disposal of property, equipment, and software | | | | | | | | | | | (325) | |
Interest expense, net | | | | | | | | | | | (16,736) | |
| | | | | | | | | | | |
Income tax benefit | | | | | | | | | | | 13,610 | |
Net loss | | | | | | | | | | | $ | (42,484) | |
SELECTQUOTE, INC. AND SUBSIDIARIES
Net Loss to Adjusted EBITDA Reconciliation
(Unaudited)
Guidance net loss to Adjusted EBITDA reconciliation, year ending June 30, 2024:
| | | | | | | | | | | |
(in thousands) | Range |
Net loss | $ | (50,000) | | | $ | (22,000) | |
Income tax benefit | (18,000) | | | (8,000) | |
Interest expense, net | 102,000 | | | 97,000 | |
Depreciation and amortization | 24,000 | | | 22,000 | |
Share-based compensation expense | 14,000 | | | 12,000 | |
Non-recurring expenses | 8,000 | | | 4,000 | |
Adjusted EBITDA | $ | 80,000 | | | $ | 105,000 | |
| We shop. You save. 1st Quarter Fiscal 2024 Earnings Conference Call Presentation November 2, 2023
| We shop. You save. Forward-Looking Statements This presentation contains forward-looking statements. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: impacts of the COVID-19 pandemic and any other significant public health events; our reliance on a limited number of insurance carrier partners and any potential termination of those relationships or failure to develop new relationships; existing and future laws and regulations affecting the health insurance market; changes in health insurance products offered by our insurance carrier partners and the health insurance market generally; insurance carriers offering products and services directly to consumers; changes to commissions paid by insurance carriers and underwriting practices; competition with brokers, exclusively online brokers and carriers who opt to sell policies directly to consumers; competition from government-run health insurance exchanges; developments in the U.S. health insurance system; our dependence on revenue from carriers in our senior segment and downturns in the senior health as well as life, automotive and home insurance industries; our ability to develop new offerings and penetrate new vertical markets; risks from third-party products; failure to enroll individuals during the Medicare annual enrollment period; our ability to attract, integrate and retain qualified personnel; our dependence on lead providers and ability to compete for leads; failure to obtain and/or convert sales leads to actual sales of insurance policies; access to data from consumers and insurance carriers; accuracy of information provided from and to consumers during the insurance shopping process; cost-effective advertisement through internet search engines; ability to contact consumers and market products by telephone; global economic conditions, including inflation; disruption to operations as a result of future acquisitions; significant estimates and assumptions in the preparation of our financial statements; impairment of goodwill; our ability to regain and maintain compliance with NYSE listing standards; potential litigation and other legal proceedings or inquiries; our existing and future indebtedness; our ability to maintain compliance with our debt covenants; access to additional capital; failure to protect our intellectual property and our brand; fluctuations in our financial results caused by seasonality; accuracy and timeliness of commissions reports from insurance carriers; timing of insurance carriers’ approval and payment practices; factors that impact our estimate of the constrained lifetime value of commissions per policyholder; changes in accounting rules, tax legislation and other legislation; disruptions or failures of our technological infrastructure and platform; failure to maintain relationships with third-party service providers; cybersecurity breaches or other attacks involving our systems or those of our insurance carrier partners or third-party service providers; our ability to protect consumer information and other data; failure to market and sell Medicare plans effectively or in compliance with laws; and and other factors related to our pharmacy business, including manufacturing or supply chain disruptions, access to and demand for prescription drugs, and regulatory changes or other industry developments that may affect our pharmacy operations. For a further discussion of these and other risk factors that could impact our future results and performance, see the section entitled “Risk Factors” in the most recent Annual Report on Form 10-K (the “Annual Report”) and subsequent periodic reports filed by us with the Securities and Exchange Commission. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as otherwise required by law, we do not undertake any obligation to publicly update or review any forward- looking statement, whether as a result of new information, future developments or otherwise. Certain information contained in this presentation and statements made orally during this presentation relate to or are based on publications and other data obtained from third-party sources. While we believe these third-party sources to be reliable as of the date of this presentation, we have not independently verified, and make no representation as to the adequacy, fairness, accuracy or completeness of, any information obtained from such third-party sources. No Offer or Solicitation; Further Information This presentation is for informational purposes only and is not an offer to sell with respect to any securities. This presentation should be read together with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and the related notes thereto included in the Annual Report and subsequent quarterly reports. Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. To supplement our financial statements presented in accordance with GAAP and to provide investors with additional information regarding our GAAP financial results, we have presented in this presentation Adjusted EBITDA and Adjusted EBITDA Margin, which are non-GAAP financial measures. These non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly titled measures presented by other companies. We define Adjusted EBITDA as income (loss) before interest expense, income tax expense (benefit), depreciation and amortization, and certain add-backs for non-cash or non-recurring expenses, including restructuring and share-based compensation expenses. The most directly comparable GAAP measure is net income (loss). We monitor and have presented in this presentation Adjusted EBITDA because it is a key measure used by our management and Board of Directors to understand and evaluate our operating performance, to establish budgets and to develop operational goals for managing our business. In particular, we believe that excluding the impact of these expenses in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core operating performance. For further discussion regarding this non-GAAP measure, please see today’s press release. Disclaimer 2
| We shop. You save. 1Q FY2024 Earnings Highlights 3 *See "Non-GAAP Financial Measures" above on slide 2 ** LTM 9/30/2023 SelectQuote delivered consolidated 1Q FY24 results ahead of consensus estimates and internal expectations Seventh consecutive quarter of strong operational and retention metrics for Senior: • Close rates increased 25% year-over-year** • Marketing cost per approved policy decreased 30% year-over-year** • Approval rates increased 8% year-over-year** • Positive early life retention indicators Consolidated Revenue totaled $233 million. Consolidated Net Loss totaled $(31) million or $(0.19) per diluted share. Consolidated Adjusted EBITDA* totaled $(11) million Year-round operating model and improved agent retention translating to strong tenured agent mix during AEP/OEP Agent hiring, training, and onboarding completed for AEP/OEP seasons SelectRx eclipsed 52,000 members and Healthcare Services achieved positive Adjusted EBITDA* for second consecutive quarter Reaffirming FY24 Revenue, Net Loss, and Adjusted EBITDA* guidance
| We shop. You save. Agents Marketing CarriersTechnology Continued investment in the most important plan benefits, especially from largest partners Continued expansion of relationships through Healthcare Services Continued joint efforts to improve onboarding and retention Continued investment in direct relationships Improved agent desktop and selling tools Streamlined processes to support conversion and cross-sell initiatives Back-end automation tools focused on cost reduction AEP Readiness 4 Continued refinement of segmentation and targeting Continued focus on prioritizing customers less likely to frequently switch plans Technology enhancements improving lead scoring and routing Customized treatment for existing customers All agents hired, trained, onboarded and licensed Strong agent retention throughout 2023 Strong mix of tenured agents similar to FY23 agent force Tenured agents traditionally produce ~2x more policies than new agents and with higher retention rates
| We shop. You save. SelectRx Operational Improvements and Scale Drive Margins 5 Members ~2,500 ~1,900 >52,000 Singular Integrated Pharmacy Management System - P Automated Fulfillment & Shipping Processes - P Reduced Customer Acquisition Costs - P Rx's Shipped per Day* ~2,000 ~15,000 Revenue per Member per Month** $480 $652 *Represents Oct. 2021 compared to Sept. 2023 **Represents Q2'21 compared to Q1'24
| We shop. You save. REVENUE $MM ADJUSTED EBITDA* $MM $162 $233 1Q23 1Q24 $(27) $(11) 1Q23 1Q24 6 Consolidated Financial Summary *See "Non-GAAP Financial Measures" above on slide 2.
| We shop. You save. REVENUE $MM ADJUSTED EBITDA* $MM $78 $90 1Q23 1Q24 $(4) $(1) 1Q23 1Q24 7 Senior Financial Summary *See "Non-GAAP Financial Measures" above on slide 2.
| We shop. You save. 8 SelectQuote Senior KPIs 98 110 83 98 15 12 MA Other 1Q23 1Q24 TOTAL POLICIES APPROVED 000s MA LTV $780 $761 1Q23 1Q24 1Q, 14% 2Q, 38%3Q, 29% 4Q, 19% MA POLICIES BY QUARTER FY23
| We shop. You save. Agent Close Rates LTM 9/30/22 LTM 9/30/23 Operating Expense Per Policy* $964 $748 LTM 9/30/22 LTM 9/30/23 Marketing Expense Per Policy** $544 $380 LTM 9/30/22 LTM 9/30/23 *Represents Senior operating costs divided by approved MA/MS policies. **Represents Senior marketing costs divided by approved MA/MS policies. 9 Senior Efficiency Metrics 25%
| We shop. You save. SELECTRX MEMBERS 1Q23 2Q23 3Q23 4Q23 1Q24 — 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 REVENUE & ADJUSTED EBITDA* $MM 10 $(12) $(9) $(3) $2 $2 $43 $55 $71 $83 $97 1Q23 2Q23 3Q23 4Q23 1Q24 Healthcare Services KPIs REVENUE ADJUSTED EBITDA* *See "Non-GAAP Financial Measures" above on slide 2.
| We shop. You save. REVENUE $MM ADJUSTED EBITDA* 11 $37 $38 $7 $9 Life Auto & Home 1Q23 1Q24 $5 $5 $2 $3 Life Auto & Home 1Q23 1Q24 $MM *See "Non-GAAP Financial Measures" above on slide 2. Life and Auto & Home
| We shop. You save. Supplemental Information 12
| We shop. You save. Net Loss to Adjusted EBITDA Reconciliation 1Q FY 2024 (in thousands) Senior Healthcare Services Life Auto & Home Corp & Elims Consolidated Revenue $ 89,918 $ 97,368 $ 37,803 $ 9,027 $ (1,386) $ 232,730 Operating expenses (91,253) (95,046) (32,563) (5,708) (19,498) (1) (244,068) Other income (expense), net — — — — (38) (38) Adjusted EBITDA (1,335) 2,322 5,240 3,319 (20,922) (11,376) Share-based compensation expense (3,175) Transaction costs (1,904) Depreciation and amortization (5,989) Loss on disposal of property, equipment, and software (9) Interest expense, net (21,397) Income tax benefit 12,799 Net loss $ (31,051) 13 1Q FY 2023 (in thousands) Senior Healthcare Services Life Auto & Home Corp & Elims Consolidated Revenue $ 77,513 $ 43,067 $ 36,835 $ 7,082 $ (2,013) $ 162,484 Operating expenses (81,366) (54,854) (31,811) (4,640) (17,446) (1) (190,117) Other income (expense), net — — 201 (1) (42) 158 Adjusted EBITDA (3,853) (11,787) 5,225 2,441 (19,501) (27,475) Share-based compensation expense (2,630) Non-recurring expenses (2,126) Depreciation and amortization (6,802) Loss on disposal of property, equipment, and software (325) Interest expense, net (16,736) Income tax benefit 13,610 Net loss $ (42,484)
| We shop. You save. (in thousands) Range Net Loss $ (50,000) $ (22,000) Income tax benefit (18,000) (8,000) Interest expense, net 102,000 97,000 Depreciation and amortization 24,000 22,000 Share-based compensation expense 14,000 12,000 Non-recurring expenses 8,000 4,000 Adjusted EBITDA $ 80,000 $ 105,000 Net Loss to Adjusted EBITDA Reconciliation (FY24 Guidance) 14
| We shop. You save. 15 SelectQuote Inc. 6800 West 115th Street Suite 2511 Overland Park, Kansas 66211 Phone: (913) 599-9225 Investor Relations investorrelations@selectquote.com
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Nov. 02, 2023 |
Nov. 02, 2022 |
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