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Dec 31, 2021

SelectQuote Q2 2022 Earnings Report

Reported a net loss due to unexpected challenges in the Senior segment, including lower close rates and a cohort/tail adjustment.

Key Takeaways

SelectQuote, Inc. reported a decrease in revenue and a net loss for the second quarter of fiscal year 2022. The company faced challenges in its Senior segment, leading to lower close rates and a significant cohort/tail adjustment. Despite the disappointing performance, SelectQuote is committed to its Senior distribution business and is focusing on driving efficiencies and reducing earnings volatility.

Revenue for the second quarter of fiscal year 2022 was $195.0 million, compared to $357.6 million in the same quarter of the previous year.

Net loss for the quarter was $137.0 million, a significant decrease compared to the net income of $89.9 million in the second quarter of fiscal year 2021.

The Senior segment faced unexpected challenges, including lower close rates and a $145 million cohort/tail adjustment.

The company is updating its full-year fiscal 2022 guidance, expecting revenue in the range of $810 million to $850 million and a net loss in the range of $255 million to $236 million.

Total Revenue
$195M
Previous year: $358M
-45.6%
EPS
-$0.84
Previous year: $0.55
-252.7%
Gross Profit
$46.9M
Previous year: $274M
-82.9%
Cash and Equivalents
$193M
Previous year: $210M
-7.8%
Free Cash Flow
-$229M
Previous year: -$96.8M
+136.3%
Total Assets
$1.44B
Previous year: $1.26B
+14.5%

SelectQuote

SelectQuote

SelectQuote Revenue by Segment

Forward Guidance

SelectQuote is updating its full-year fiscal 2022 revenue, net loss and Adjusted EBITDA guidance.

Challenges Ahead

  • Revenue expected in a range of $810 million to $850 million
  • Net Loss expected in a range of $255 million to $236 million
  • Adjusted EBITDA expected in a range of $(260) million to $(235) million

Revenue & Expenses

Visualization of income flow from segment revenue to net income