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Jun 30, 2020
GoHealth Q2 2020 Earnings Report
GoHealth's financial results for Q2 2020 were announced, demonstrating substantial revenue growth and a shift towards technology-driven models.
Key Takeaways
GoHealth reported a 71% increase in net revenues for the second quarter of 2020, driven by strong Medicare Advantage enrollments. The company's strategic focus on LTV/CAC contributed to industry-leading margins. GoHealth is on track for a record year in fiscal 2020.
Net revenues for the second quarter of 2020 increased by 71% compared to the prior year period.
Net loss for the second quarter of 2020 was $(22.9) million, compared to net income of $15.3 million in the prior year period.
Adjusted EBITDA for the second quarter of 2020 increased by 56% compared to the prior year period.
The company provided a full year 2020 outlook, including net revenues of $840-890 million.
GoHealth
GoHealth
Forward Guidance
GoHealth provided an outlook for the fiscal year ending December 31, 2020, based on current market conditions and expectations.
Positive Outlook
- Full year 2020 net revenue of $840 – $890 million, representing year-over-year growth of 56% – 65%
- Full year 2020 adjusted EBITDA of $265 – $290 million, representing year-over-year growth of 55% – 71%
- COVID-19 pandemic has created favorable industry dynamics for technology-driven direct-to-consumer models
- The company believes it has the winning strategy necessary to deliver great results for its shareholders over the coming years.
- Demand for healthcare has demonstrated great resilience during these times.
Challenges Ahead
- The trajectory of the US economy remains challenging to predict
- There is heightened uncertainty associated with the COVID-19 pandemic.
- The company's ability to comply with the numerous, complex and frequently changing laws regulating the marketing and sale of Medicare plans
- The potential for an adverse change in our relationships with carriers, including a loss of a carrier relationships
- Failure to grow the Company’s customer base or retain our existing customers