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Dec 31, 2020
GoHealth Q4 2020 Earnings Report
GoHealth's Q4 2020 earnings were released, showcasing substantial revenue growth and strategic investments for future expansion.
Key Takeaways
GoHealth reported a strong fourth quarter with a 55% increase in net revenue, driven by a 75% revenue growth in the Internal Medicare segment. The company is focused on investing in its platform to drive commissionable revenue growth and sustain long-term growth.
Net revenue for Q4 2020 increased by 55% year-over-year, reaching $445.9 million.
Medicare Advantage (MA) Submitted Policies grew by 58% compared to the prior year, totaling 330,604.
LTV per carrier Approved MA Submission increased by 5% to $1,073.
Net income for Q4 2020 was $133.1 million.
GoHealth
GoHealth
Forward Guidance
The Company provided its full year 2021 outlook, and expects total net revenue of $1,150 - $1,300 million (+31% to +48%) powered by commission revenue of $950 - $1,100 million (+42% to +64%). The company also expects adjusted EBITDA of $345 - $385 million (+27% to +42%)
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
- Full-year 2021 adjusted EBITDA of $345 - $385 million, representing year-over-year growth of 27% - 42%
- Favorable long-term industry dynamics for technology-driven, direct-to-consumer models
- Strong consumer demand for services, particularly around education, transparency and choice
Challenges Ahead
- Trajectory of the US economy remains challenging to predict
- Continued uncertainty associated with the pace of recovery from the COVID-19 pandemic.
- Potential for an adverse change in the Company’s relationships with carriers, including a loss of a carrier relationships
- 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