• Q4 2024 Revenue: $389 million, a 41% increase from Q4 2023.
• Q4 2024 Adjusted EBITDA: $118 million, a 107% increase year-over-year.
• Full Year 2024 Revenue: $798.9 million, a 9% increase from 2023.
• Full Year 2024 Adjusted EBITDA: $120.3 million, a 60% increase from 2023.
• Q4 2024 Customer Acquisition Costs: Decreased by 27% to $501 per submission.
• Full Year 2024 Cash Flow from Operations: Negative $21.6 million, compared to $130.7 million in the prior year.
• Commissions Receivable: Approximately $1.1 billion as of December 31, 2024.
• e-TeleQuote Submissions During AEP: 54,000 submissions, a 170% improvement year-over-year.

• Warning! GuruFocus has detected 5 Warning Signs with GOCO.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• GoHealth Inc (NASDAQ:GOCO) reported a 41% increase in Q4 2024 revenue compared to Q4 2023, reaching $389 million.
• Adjusted EBITDA for Q4 2024 more than doubled, showing a 107% year-over-year improvement.
• The company achieved a 67% year-over-year increase in submission volume during Q4 2024.
• GoHealth Inc (NASDAQ:GOCO) reduced direct operating costs per submission by 27% year-over-year in Q4 2024.
• The integration of e-TeleQuote led to a 170% improvement in submissions during the annual enrollment period (AEP).

Negative Points

• Despite revenue growth, GoHealth Inc (NASDAQ:GOCO) experienced negative cash flow from operations for the full year 2024.
• The company anticipates less favorable market conditions for the AEP in Q4 2025 compared to 2024.
• There is cautious optimism for Q4 2025, with expectations of less disruption than the previous year.
• GoHealth Inc (NASDAQ:GOCO) faces ongoing challenges in balancing agency versus non-agency dynamics.
• The company remains exposed to regulatory and market factors that could influence performance in 2025.

Q & A Highlights

Q: Can you discuss the trends in revenue per submission and margin expansion initiatives? A: Vijay Kotte, CEO, explained that revenue fluctuations are primarily driven by product mix, while cost efficiencies are achieved through standardized processes and enhanced marketing analytics. The company has seen a 27% improvement in direct cost per submission, now around $500, which is a significant industry benchmark.

Q: What are the expectations for the fourth quarter of 2025, and how does GoHealth plan to maintain its competitive position? A: Vijay Kotte noted that while fewer plan exits are expected compared to 2024, there will still be disruptions due to health plan margin challenges. GoHealth plans to leverage its technology and marketing capabilities to target specific geographies and optimize consumer-agent matches.

Q: How did the PlanFit save initiative impact revenue in the fourth quarter? A: Vijay Kotte stated that PlanFit save had a small impact on Q4 performance due to market disruptions. The initiative is designed to reward agents for retaining consumers in their current plans, aligning with consumer interests and market dynamics.

Q: Are there plans to securitize commission receivables to improve the balance sheet? A: Vijay Kotte mentioned that GoHealth continuously assesses opportunities to optimize its capital structure, including potential securitization, to decrease the cost of capital and reinvest in the business.

Q: What strategies are in place to differentiate GoHealth in a potentially less disruptive AEP environment? A: Vijay Kotte emphasized the importance of targeted marketing and strategic initiatives like PlanFit save to ensure compensation for both new enrollments and retention, thus maintaining competitiveness regardless of market disruptions.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.