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Mar 31, 2021
GoHealth Q1 2021 Earnings Report
GoHealth's first quarter earnings were released, showing revenue growth driven by the Medicare-Internal segment. The company reaffirmed its full-year 2021 growth outlook.
Key Takeaways
GoHealth reported a 45% increase in first-quarter revenue to $204.2 million, driven by a 65% increase in the Medicare—Internal segment. The company reaffirmed its full-year 2021 outlook, expecting total net revenue of $1,150 - $1,300 million and Adjusted EBITDA of $345 - $385 million.
Total company revenue grew 45% to $204.2 million.
Medicare—Internal net revenue increased 65% to $157.4 million.
LTV Per carrier Approved MA Submission increased 17% to $995.
Adjusted EBITDA decreased 8% to $32.0 million due to investments in agent capacity, marketplace technology, branding and Encompass Platform.
GoHealth
GoHealth
Forward Guidance
The Company reaffirmed its financial outlook for the fiscal year ending December 31, 2021 based on current market conditions and expectations:
Positive Outlook
- Full-year 2021 net revenue of $1,150 - $1,300 million, representing year-over-year growth of 31% - 48%
- Full-year 2021 commission revenue of $950 - $1,100 million, representing year-over-year growth of 42% - 64%, fueled by the Company’s continued investment in its Medicare business, including GoHealth’s Encompass Platform
- Full-year 2021 adjusted EBITDA of $345 - $385 million, representing year-over-year growth of 27% - 42%
- Company expects Adjusted EBITDA of $345 - $385 million (+27% to +42%)
- Company expects total net revenue of $1,150 - $1,300 million (+31% to +48%)
Challenges Ahead
- 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.
- Failure to grow the Company’s customer base or retain its existing customers
- Carriers’ ability to reduce commissions paid to the Company and adversely change their underwriting practices
- Significant consolidation in the healthcare industry which could adversely alter the Company’s relationships with carriers
- Information technology systems failures or capacity constraints interrupting the Company’s operations