CHICAGO, May 8, 2023
/PRNewswire/ -- GoHealth, Inc. (NASDAQ: GOCO), a leading health
insurance marketplace and Medicare-focused digital health company,
today announced financial results for the three months ended
March 31, 2023.
- First quarter 2023 Trailing Twelve Months ("TTM") positive cash
flow from operations of $26.9 million
compared to TTM negative cash flow from operations of $275.7 million in the prior year period.
- First quarter 2023 net loss of $22.5
million compared to net loss of $37.2
million in the prior year period.
- First quarter 2023 net revenue of $183.2
million and Adjusted EBITDA1 of $28.8 million compared to net revenue of
$270.6 million and Adjusted
EBITDA1 of $11.1 million
in the prior year period.
- First quarter 2023 Submissions of 213,645. Demand for our
services remains robust, and we continue to invest in technology to
enhance our value proposition.
- By remaining consumer-centered and health plan agnostic,
GoHealth was ranked a top ten most trustworthy company in America
2023 by Newsweek in healthcare and life sciences.
Full Year 2023 Guidance
- The Company reiterates its full year 2023 outlook, and expects
total net revenue of $750 -
$850 million and Adjusted
EBITDA1 of $100 -
$140 million, both excluding
non-Encompass BPO Services.2 The Company also expects
positive cash flow from operations of $75 - $115
million.
"Our strong first quarter results are attributable to our shift
to Encompass, leveraging our proprietary technology, driving
operational efficiencies and our unwavering focus on the consumer
experience," said Vijay Kotte, CEO
of GoHealth.
Kotte continued, "At GoHealth, we are consumer-centered and
health plan agnostic, which has helped us establish a loyal
consumer base. The Encompass platform utilizes our proprietary
PlanFit technology, built on millions of consumer interactions, and
leverages that data via machine learning to create a customized
purchasing experience that results in a thorough and comprehensive
understanding of our consumers' Medicare insurance needs. Our
commitment to providing high-quality options and exceptional
service has made us the trusted partner of both consumers and
health plans."
"I'm pleased to say that we are reaffirming guidance based on
our strong first quarter results. Our operating performance has
allowed us to realize a 160% improvement in our first quarter
Adjusted EBITDA1 year over year, paired with positive
cash flow from operations," said Jason
Schulz, CFO at GoHealth.
The Company made the strategic decision to exit its
non-Encompass BPO Services2 to focus on its core
business. We expect that the financial benefit of this change will
begin to flow through the Company's results in the second quarter
of 2023, while the exit is expected to be complete in the third
quarter of 2023. In the first quarter of 2023, non-Encompass BPO
Services2 contributed $6.8
million of net revenue with a gross margin of $1.4 million. First quarter net revenue excluding
non-Encompass BPO Services2 revenue of $6.8 million was $176.4
million, and Adjusted EBITDA1 excluding
non-Encompass BPO Services3 gross margin of $1.4 million was $27.4
million.3
During the first quarter of 2023, the Company reorganized its
operations from four operating and reportable segments to one
operating and reportable segment. The change reflects how the
Company's chief operating decision maker ("CODM") evaluates the
Company's operating and financial performance on a consolidated
basis and is consistent with changes made to the Company's internal
reporting structure. Additionally, the single operating segment
aligns with the Company's shift in focus towards Medicare products.
Operating segments are identified as components of an enterprise
about which separate discrete financial information is available
and reviewed regularly by the CODM. The Company's CODM is its chief
executive officer who reviews financial information together with
certain operating metrics principally to make decisions about how
to allocate resources and to measure the Company's performance. All
prior period comparative segment information was recast to reflect
the current single operating segment in accordance with Accounting
Standards Codification 280, Segment Reporting.
Conference Call Details
The Company will host a conference call today, Monday, May 8, 2023 at 8:00 a.m. (ET) to discuss its financial results.
Participants can pre-register for the conference call at the
following link:
https://register.vevent.com/register/BIb4ba329d46994a619bd7c09b26edaff5.
A live audio webcast of the conference call will be available via
GoHealth's Investor Relations website. A replay of the call will be
available via webcast on GoHealth's Investor Relations website for
on-demand listening shortly after the completion of the call.
About GoHealth, Inc.
As a leading health insurance marketplace and Medicare-focused
digital health company, GoHealth's mission is to improve access to
healthcare in America. Enrolling in a health insurance plan can be
confusing for consumers, and the seemingly small differences
between plans can lead to significant out-of-pocket costs or lack
of access to critical medicines and even providers. GoHealth
combines cutting-edge technology, data science and deep industry
expertise to match customers with the healthcare policy and health
plan partner that is right for them. GoHealth has enrolled millions
of people in Medicare plans and individual and family plans. For
more information, visit https://www.gohealth.com.
Investor Relations
IR@gohealth.com
Media Relations
Pressinquiries@gohealth.com
(1)
|
Adjusted EBITDA is a
non-GAAP measure. For a definition of Adjusted EBITDA and a
reconciliation to the most comparable GAAP measure, please see
below.
|
(2)
|
Non-Encompass BPO
Services are those services in which we dedicate certain agents to
specific health plan partners and agencies, outside of the
Encompass Solution.
|
(3)
|
Net revenue
excluding non-Encompass BPO Services revenue and Adjusted EBITDA
excluding non-Encompass BPO Services gross margin are non-GAAP
measures. For a reconciliation to the most comparable GAAP measure,
please see table provided below.
|
Forward-Looking Statements
This press release contains forward-looking statements. We
intend such forward-looking statements to be covered by the safe
harbor provisions for forward-looking statements contained in
Section 27A of the Securities Act of 1933, as amended ("the
Securities Act"), and Section 21E of the Securities Exchange Act of
1934, as amended ("the Exchange Act"). All statements other than
statements of historical facts contained in this press release may
be forward-looking statements. Statements regarding our future
results of operations and financial position, business strategy and
plans and objectives of management for future operations,
including, among others, statements regarding our expected growth,
level of cash flow, future capital expenditures and debt service
obligations are forward-looking statements.
In some cases, you can identify forward-looking statements by
terms, such as "may," "will," "should," "aim," "expects," "plans,"
"anticipates," "could," "intends," "targets," "projects,"
"contemplates," "believes," "estimates," "predicts," "potential,"
"likely," "future," or "continue" or the negative of these terms or
other similar expressions. Accordingly, we caution you that any
such forward-looking statements are not guarantees of future
performance and are subject to risks, assumptions and uncertainties
that are difficult to predict. Although we believe that the
expectations reflected in these forward-looking statements are
reasonable as of the date made, actual results may prove to be
materially different from the results expressed or implied by the
forward-looking statements.
These forward-looking statements speak only as of the date of
this press release and are subject to a number of important factors
that could cause actual results to differ materially from those in
the forward-looking statements, including, but are not limited to,
the following: the marketing and sale of Medicare plans are subject
to numerous, complex and frequently changing laws, regulations and
guidelines; our operating results have been, and may continue to
be, adversely impacted by factors that impact our estimate of LTV;
our gradual expansion of the Encompass Solution may not be as
successful as we expect; our business may be harmed if we lose our
relationships with health plans or if our relationships with health
plans change; health plans may reduce the commissions paid to us
and change their underwriting practices in ways that reduce the
number of, or impact the renewal or approval rates of, insurance
policies sold through our platform; our management identified a
material weakness in our internal controls over financial
reporting, and we may be unable to develop, implement and maintain
appropriate controls in future periods, which may lead to errors or
omissions in our financial statements; we currently depend on a
small group of health plans for a substantial portion of our
revenue; information technology system failures could interrupt our
operations; factors that impact our estimate of LTV (as defined
below); we may lose key employees or fail to attract qualified
employees; our failure to grow our customer base or retain our
existing customers; we may not realize the benefits we expect from
our strategic cash flow optimization and other cash management
initiatives; our ability to sell Medicare-related health insurance
plans is largely dependent on our licensed health insurance agents;
operating and growing our business may require additional capital;
and the Founders and Centerbridge have significant influence over
us, including control over decisions that require the approval of
stockholders.
The foregoing factors should not be construed as exhaustive and
should be read together with the other cautionary statements
included in this press release, as well as the cautionary
statements and other risk factors set forth in our 2022 Annual
Report on Form 10-K, our forthcoming Quarterly Report on Form 10-Q
for the first quarter ended March 31,
2023, and our other filings with the Securities and Exchange
Commission. If one or more events related to these or other risks
or uncertainties materialize, or our underlying assumptions prove
to be incorrect, actual results may differ materially from what we
anticipate. Many of the important factors that will determine these
results are beyond our ability to control or predict. Accordingly,
you should not place undue reliance on any such forward-looking
statements. Any forward-looking statement speaks only as of the
date on which it is made, and, except as otherwise required by law,
we do not undertake any obligation to publicly update or review any
forward-looking statement, whether as a result of new information,
future developments or otherwise. New factors emerge from time to
time, and it is not possible for us to predict which will arise. In
addition, we cannot assess the impact of each factor on our
business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
contained in any forward-looking statements.
Use of Non-GAAP Financial Measures and Key Performance
Indicators
In this press release, we use supplemental measures of our
performance that are derived from our consolidated financial
information, but which are not presented in our Consolidated
Financial Statements prepared in accordance with Generally Accepted
Accounting Principles ("GAAP"). These non-GAAP financial measures
include net income (loss) before interest expense, income tax
expense (benefit) and depreciation and amortization expense
("EBITDA"); Adjusted EBITDA and Adjusted EBITDA margin. Adjusted
EBITDA is the primary financial performance measure used by
management to evaluate its business and monitor its results of
operations.
Additional non-GAAP financial measures, including net revenue
excluding the Lookback Adjustments, Adjusted EBITDA excluding the
Lookback Adjustments, net revenue excluding both the non-Encompass
BPO services revenue and the Lookback Adjustments and Adjusted
EBITDA excluding both the non-Encompass BPO Services gross margin
and the Lookback Adjustments, are also discussed in this press
release. The Lookback Adjustments are revenue adjustments that
represent changes in estimates relating to performance obligations
satisfied in prior periods and relate to the fiscal years 2021 and
prior.
Adjusted EBITDA represents, as applicable for the period, EBITDA
as further adjusted for certain items summarized below in this
press release. Adjusted EBITDA margin represents Adjusted EBITDA
divided by net revenues.
We use non-GAAP financial measures to supplement financial
information presented on a GAAP basis. We believe that excluding
certain items from our GAAP results allows management to better
understand our consolidated financial performance from period to
period and better project our future consolidated financial
performance as forecasts are developed at a level of detail
different from that used to prepare GAAP-based financial measures.
Moreover, we believe these non-GAAP financial measures provide our
stakeholders with useful information to help them evaluate our
operating results by facilitating an enhanced understanding of our
operating performance and enabling them to make more meaningful
period to period comparisons. Adjusted EBITDA is used as a basis
for certain compensation programs sponsored by the Company. There
are limitations to the use of the non-GAAP financial measures
presented in this press release. For example, our non-GAAP
financial measures may not be comparable to similarly titled
measures of other companies. Other companies, including companies
in our industry, may calculate non-GAAP financial measures
differently than we do, limiting the usefulness of those measures
for comparative purposes.
The non-GAAP financial measures are not meant to be considered
as indicators of performance in isolation from or as a substitute
for net income (loss) prepared in accordance with GAAP, and should
be read only in conjunction with financial information presented on
a GAAP basis. Reconciliations of each of EBITDA, Adjusted EBITDA,
net revenue excluding the Lookback Adjustments, Adjusted EBITDA
excluding the Lookback Adjustments, net revenue excluding both the
non-Encompass BPO Services revenue and the Lookback Adjustments,
and Adjusted EBITDA excluding both the non-Encompass BPO Services
gross margin and the Lookback Adjustments to its most directly
comparable GAAP financial measure, net revenue or net income
(loss), are presented in the tables below in this press release. We
encourage you to review the reconciliations in conjunction with the
presentation of the non-GAAP financial measures for each of the
periods presented. In future periods, we may exclude similar items,
may incur income and expenses similar to these excluded items and
include other expenses, costs and non-recurring items.
The Company is unable to provide a full reconciliation of
guidance for Adjusted EBITDA and Adjusted EBITDA excluding
non-Encompass BPO Services gross margin without unreasonable effort
because it is not possible to predict certain adjustment items with
a reasonable degree of certainty since they are not yet known or
quantifiable, and do not relate to the Company's routine
activities. This information is dependent upon future events, which
may be outside of the Company's control and could have a
significant impact on its GAAP financial results for fiscal
2023.
Glossary
- "EBITDA" represents net income (loss) before interest
expense, income tax expense (benefit) and depreciation and
amortization expense.
- "Adjusted EBITDA" represents, as applicable for the
period, EBITDA as further adjusted for certain items summarized
below in this press release.
- "Adjusted EBITDA Margin" refers to Adjusted EBITDA
divided by net revenues.
- "Cost of Submission" refers to the aggregate cost to
convert prospects into Submissions during a particular period. Cost
of Submission is comprised of revenue share, marketing and
advertising expenses, and customer care and enrollment expenses,
excluding share-based compensation expense and such expenses
related to non-Encompass BPO Services.
- "Cost per Submission" refers to (x) the aggregate cost
to convert prospects into Submissions for a particular period
(comprised of revenue share, marketing and advertising expenses,
and customer care and enrollment expenses, excluding share-based
compensation expense and such expenses related to non-Encompass BPO
Services) divided by (y) either (i) a completed application with
our licensed agent that is submitted to the insurance health plan
partner and subsequently approved by the health plan partner during
the indicated period, excluding applications through our
non-Encompass BPO Services or (ii) a transfer by our agent to the
health plan partner through the Encompass marketplace during the
indicated period.
- "Gross margin" refers to net revenue divided by revenue
share, marketing and advertising expenses and customer care and
enrollment expenses.
- "LTV" refers to the Lifetime Value of Commissions, which
we define as aggregate commissions estimated to be collected over
the estimated life of all commissionable Submissions for the
relevant period based on multiple factors, including but not
limited to, contracted commission rates, health plan mix and
expected policy persistency with applied constraints.
- "Non-Encompass BPO Services" refer to programs in which
GoHealth-employed agents are dedicated to certain health plans and
agencies we partner with outside of the Encompass model.
- "Sales per Submission" refers to (x) the combination sum
of (i) aggregate commissions estimated to be collected over the
estimated life of all commissionable Submissions for the relevant
period based on multiple factors, including but not limited to,
contracted commission rates, health plan mix and expected policy
persistency with applied constraints, excluding revenue adjustments
recorded in the period, but relating to performance obligations
satisfied in prior periods, (ii) Encompass revenue, and (iii)
partner marketing and enrollment services, divided by (y) the
number of Submissions for such period.
- "Sales/Cost of Submission" refers to (x) the sum of (i)
aggregate commissions estimated to be collected over the estimated
life of all commissionable Submissions for the relevant period
based on multiple factors, including but not limited to, contracted
commission rates, health plan partner mix and expected policy
persistency with applied constraints, excluding revenue adjustments
recorded in the period, but relating to performance obligations
satisfied in prior periods, (ii) Encompass revenue, and (iii)
partner marketing and enrollment services, divided by (y) the
aggregate cost to convert prospects into Submissions (comprised of
revenue share, marketing and advertising expenses, and customer
care and enrollment expenses, excluding share-based compensation
expense) for such period. Sales and Cost of Submission exclude
amounts related to non-Encompass BPO Services.
- "Submission" refers to either (i) a completed
application with our licensed agent that is submitted to the
insurance health plan partner and subsequently approved by the
health plan partner during the indicated period, excluding
applications through our non-Encompass BPO Services or (ii) a
transfer by our agent to the health plan partner through the
Encompass marketplace during the indicated period.
The following tables set forth the components of our results of
operations for the periods indicated (unaudited):
|
|
Three months
ended
Mar. 31, 2023
|
|
Three months
ended
Mar. 31, 2022
|
|
|
|
|
(in thousands, except
percentages and per share amounts)
|
|
Dollars
|
|
% of Net
Revenues
|
|
Dollars
|
|
% of Net
Revenues
|
|
$
Change
|
|
%
Change
|
Net revenues
|
|
$
183,158
|
|
100.0 %
|
|
$
270,593
|
|
100.0 %
|
|
$ (87,435)
|
|
(32.3) %
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
share
|
|
45,462
|
|
24.8 %
|
|
67,923
|
|
25.1 %
|
|
(22,461)
|
|
(33.1) %
|
Marketing and
advertising
|
|
45,743
|
|
25.0 %
|
|
84,033
|
|
31.1 %
|
|
(38,290)
|
|
(45.6) %
|
Customer care and
enrollment
|
|
42,027
|
|
22.9 %
|
|
78,455
|
|
29.0 %
|
|
(36,428)
|
|
(46.4) %
|
Technology
|
|
9,543
|
|
5.2 %
|
|
12,759
|
|
4.7 %
|
|
(3,216)
|
|
(25.2) %
|
General and
administrative
|
|
22,618
|
|
12.3 %
|
|
29,217
|
|
10.8 %
|
|
(6,599)
|
|
(22.6) %
|
Amortization of
intangible assets
|
|
23,514
|
|
12.8 %
|
|
23,514
|
|
8.7 %
|
|
—
|
|
— %
|
Total operating
expenses
|
|
188,907
|
|
103.1 %
|
|
295,901
|
|
109.4 %
|
|
(106,994)
|
|
(36.2) %
|
Income (loss) from
operations
|
|
(5,749)
|
|
(3.1) %
|
|
(25,308)
|
|
(9.4) %
|
|
19,559
|
|
(77.3) %
|
Interest
expense
|
|
16,891
|
|
9.2 %
|
|
11,398
|
|
4.2 %
|
|
5,493
|
|
48.2 %
|
Other (income) expense,
net
|
|
(53)
|
|
— %
|
|
63
|
|
— %
|
|
(116)
|
|
(184.1) %
|
Income (loss) before
income taxes
|
|
(22,587)
|
|
(12.3) %
|
|
(36,769)
|
|
(13.6) %
|
|
14,182
|
|
(38.6) %
|
Income tax (benefit)
expense
|
|
(44)
|
|
— %
|
|
472
|
|
0.2 %
|
|
(516)
|
|
(109.3) %
|
Net income
(loss)
|
|
$
(22,543)
|
|
(12.3) %
|
|
$
(37,241)
|
|
(13.8) %
|
|
$
14,698
|
|
(39.5) %
|
Net income (loss)
attributable to noncontrolling interests
|
|
(13,364)
|
|
(7.3) %
|
|
(23,758)
|
|
(8.8) %
|
|
10,394
|
|
(43.7) %
|
Net income (loss)
attributable to GoHealth, Inc.
|
|
$
(9,179)
|
|
(5.0) %
|
|
$
(13,483)
|
|
(5.0) %
|
|
$
4,304
|
|
(31.9) %
|
Net income (loss)
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share of Class A common stock —
basic and diluted
|
|
$ (1.12)
|
|
|
|
$ (1.74)
|
|
|
|
|
|
|
Weighted-average shares
of Class A common stock
outstanding — basic and diluted
|
|
8,965
|
|
|
|
7,747
|
|
|
|
|
|
|
Non-GAAP financial
measures:
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
20,571
|
|
|
|
$
577
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
28,778
|
|
|
|
$
11,073
|
|
|
|
|
|
|
Adjusted EBITDA
margin
|
|
15.7 %
|
|
|
|
4.1 %
|
|
|
|
|
|
|
_________________________
|
N/M = Not
meaningful
|
The following tables set forth the reconciliations of GAAP net
income (loss) to EBITDA and Adjusted EBITDA for the periods
indicated (unaudited):
|
|
Three months ended
Mar. 31,
|
(in
thousands)
|
|
2023
|
|
2022
|
Net
revenues
|
|
$
183,158
|
|
$
270,593
|
Net income
(loss)
|
|
(22,543)
|
|
(37,241)
|
Interest
expense
|
|
16,891
|
|
11,398
|
Income tax expense
(benefit)
|
|
(44)
|
|
472
|
Depreciation and
amortization expense
|
|
26,267
|
|
25,948
|
EBITDA
|
|
20,571
|
|
577
|
Share-based
compensation expense (1)
|
|
6,584
|
|
5,155
|
Legal fees
(2)
|
|
1,623
|
|
—
|
Professional services
(3)
|
|
—
|
|
3,950
|
Severance costs
(4)
|
|
—
|
|
1,391
|
Adjusted
EBITDA
|
|
$
28,778
|
|
$
11,073
|
Adjusted EBITDA
margin
|
|
15.7 %
|
|
4.1 %
|
_________________________
|
(1)
|
Represents non-cash
share-based compensation expense relating to equity awards, as well
share-based compensation expense relating to liability classified
awards that will be settled in cash.
|
(2)
|
Represents
non-routine legal fees unrelated to our core
operations.
|
(3)
|
Represents costs
associated with non-recurring consulting fees and other
professional services.
|
(4)
|
Represents costs
associated with the termination of employment and associated fees
unrelated to restructuring activities.
|
The following table summarizes net revenues and Adjusted EBITDA
excluding the Lookback Adjustments and non-Encompass BPO Services
for the periods indicated (unaudited):
|
|
Three months ended
Mar. 31,
|
(in
thousands)
|
|
2023
|
|
2022
|
Net
revenues
|
|
$
183,158
|
|
$
270,593
|
Lookback Adjustments
reported during the indicated periods1
|
|
—
|
|
2,318
|
Net revenue excluding
Lookback Adjustments
|
|
183,158
|
|
272,911
|
Exit of non-Encompass
BPO Services
|
|
(6,794)
|
|
(34,937)
|
Net revenues
excluding Lookback Adjustments and non-Encompass BPO
Services
|
|
176,364
|
|
237,974
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
28,778
|
|
$
11,073
|
Lookback Adjustments
reported during the indicated periods1
|
|
—
|
|
1,661
|
Adjusted EBITDA
excluding Lookback Adjustments
|
|
28,778
|
|
12,734
|
Exit of non-Encompass
BPO Services
|
|
(1,402)
|
|
(7,190)
|
Adjusted EBITDA
excluding Lookback Adjustments and non-Encompass BPO
Services
|
|
$
27,376
|
|
$
5,544
|
Adjusted EBITDA
margin excluding Lookback Adjustments and non-Encompass BPO
Services
|
|
15.5 %
|
|
2.3 %
|
_________________________
|
(1)
Excludes the impact of Lookback Adjustments on non-Encompass BPO
Services
|
The table below depicts the disaggregation of revenue and is
consistent with how the Company evaluates its financial performance
(unaudited)
|
|
Three months ended
Mar. 31,
|
(in
thousands)
|
|
2023
|
|
2022
|
Medicare
Revenue
|
|
|
|
|
Agency
Revenue
|
|
|
|
|
Commission
Revenue
|
|
$
97,531
|
|
$
191,693
|
Partner Marketing
Revenue
|
|
27,124
|
|
34,026
|
Total Agency
Revenue
|
|
124,655
|
|
225,719
|
Non-Agency
Revenue
|
|
44,972
|
|
5,752
|
Total Medicare
Revenue
|
|
169,627
|
|
231,471
|
Other
Revenue
|
|
|
|
|
Non-Encompass BPO
Revenue
|
|
6,794
|
|
34,937
|
Other
Revenue
|
|
6,737
|
|
4,185
|
Total Other
Revenue
|
|
13,531
|
|
39,122
|
Total Net
Revenue
|
|
$
183,158
|
|
$
270,593
|
The following table summarizes share-based compensation expense
by operating function for the periods indicated (unaudited):
|
|
Three months ended
Mar. 31,
|
(in
thousands)
|
|
2023
|
|
2022
|
Marketing and
advertising
|
|
$
66
|
|
$
441
|
Customer care and
enrollment
|
|
604
|
|
631
|
Technology
|
|
767
|
|
982
|
General and
administrative
|
|
5,147
|
|
3,101
|
Total share-based
compensation expense
|
|
$
6,584
|
|
$
5,155
|
The following table sets forth our balance sheets for the
periods indicated (unaudited):
(in thousands, except
per share amounts)
|
|
Mar. 31,
2023
|
|
Dec. 31,
2022
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
32,325
|
|
$
16,464
|
Accounts receivable,
net of allowance for doubtful accounts of $534 in 2023 and $89 in
2022
|
|
26,181
|
|
4,703
|
Commissions receivable
- current
|
|
292,943
|
|
335,796
|
Prepaid expense and
other current assets
|
|
24,012
|
|
57,593
|
Total current
assets
|
|
375,461
|
|
414,556
|
Commissions receivable
- non-current
|
|
643,861
|
|
695,637
|
Operating lease ROU
asset
|
|
20,375
|
|
21,483
|
Other long-term
assets
|
|
1,781
|
|
1,721
|
Property, equipment,
and capitalized software, net
|
|
24,879
|
|
25,282
|
Intangible assets,
net
|
|
477,097
|
|
500,611
|
Total
assets
|
|
$
1,543,454
|
|
$
1,659,290
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
11,409
|
|
$
15,148
|
Accrued
liabilities
|
|
30,979
|
|
53,334
|
Commissions payable -
current
|
|
103,016
|
|
122,023
|
Short-term operating
lease liability
|
|
7,318
|
|
8,974
|
Deferred
revenue
|
|
25,677
|
|
50,594
|
Current portion of
long-term debt
|
|
19,289
|
|
5,270
|
Other current
liabilities
|
|
12,122
|
|
10,112
|
Total current
liabilities
|
|
209,810
|
|
265,455
|
Non-current
liabilities:
|
|
|
|
|
Commissions payable -
non-current
|
|
226,419
|
|
253,118
|
Long-term operating
lease liability
|
|
36,738
|
|
38,367
|
Long-term debt, net of
current portion
|
|
490,214
|
|
504,810
|
Other non-current
liabilities
|
|
7,672
|
|
5,839
|
Total non-current
liabilities
|
|
761,043
|
|
802,134
|
Commitments and
Contingencies
|
|
|
|
|
Series A redeemable
convertible preferred stock — $0.0001 par value; 50 shares
authorized; 50 shares issued and
outstanding at March 31, 2023 and December 31, 2022. Liquidation
preference of $50.9 million at March 31, 2023 and
December 31, 2022.
|
|
49,302
|
|
49,302
|
Stockholders'
equity:
|
|
|
|
|
Class A common stock –
$0.0001 par value; 1,100,000 shares authorized; 9,002 and 8,963
shares issued; 8,982 and
8,950 shares outstanding at March 31, 2023 and December 31, 2022,
respectively.
|
|
1
|
|
1
|
Class B common stock –
$0.0001 par value; 616,257 and 616,259 shares authorized; 13,053
and 13,054 shares
issued and outstanding at March 31, 2023 and December 31, 2022,
respectively.
|
|
1
|
|
1
|
Preferred stock –
$0.0001 par value; 20,000 shares authorized (including 50 shares of
Series A redeemable
convertible preferred stock authorized and 200 shares of Series A-1
convertible preferred stock authorized); 50
shares issued and outstanding at March 31, 2023 and December 31,
2022.
|
|
—
|
|
—
|
Series A-1 convertible
preferred stock— $0.0001 par value; 200 shares authorized; no
shares issued and outstanding
at September 30, 2022 and December 31, 2021.
|
|
—
|
|
—
|
Treasury stock – at
cost; 19 and 13 shares of Class A common stock at March 31, 2023
and December 31, 2022,
respectively.
|
|
(459)
|
|
(345)
|
Additional paid-in
capital
|
|
630,316
|
|
626,269
|
Accumulated other
comprehensive income (loss)
|
|
(142)
|
|
(144)
|
Accumulated
deficit
|
|
(366,202)
|
|
(357,023)
|
Total stockholders'
equity attributable to GoHealth, Inc.
|
|
263,515
|
|
268,759
|
Non-controlling
interests
|
|
259,784
|
|
273,640
|
Total stockholders'
equity
|
|
523,299
|
|
542,399
|
Total liabilities,
redeemable convertible preferred stock and stockholders'
equity
|
|
$
1,543,454
|
|
$
1,659,290
|
The following table sets forth the net cash provided by (used
in) operating activities for the periods presented (unaudited):
Net cash provided by
(used in) operating activities
|
|
Quarter ended March
31,
|
|
Trailing Twelve Months
ended March 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
$
20,479
|
|
$
54,486
|
|
$
26,897
|
|
$
(275,722)
|
In addition to traditional financial metrics, we rely upon
certain business and operating metrics to evaluate our business
performance and facilitate our operations. Below are the most
relevant business and operating metrics, besides EBITDA and
Adjusted EBITDA, for our single operating and reportable
segment.
The following table presents the number of Submissions for the
periods presented (unaudited):
Submissions
|
|
Three months ended Mar.
31,
|
|
|
|
|
|
2023
|
|
2022
|
|
Change
|
|
% Change
|
|
213,645
|
|
260,666
|
|
(47,021)
|
|
(18) %
|
The following table presents the Sales Per Submission for the
period presented (unaudited):
Sales Per
Submission
|
|
Three months ended Mar.
31,
|
|
|
|
|
|
2023
|
|
2022
|
|
$ Change
|
|
% Change
|
|
$
794
|
|
$
897
|
|
$
(103)
|
|
(11) %
|
The following are our Sales/Cost of Submission, Cost of
Submission (in thousands) and Cost Per Submission for the three
months ended March 31, 2023 and 2022
(unaudited):
|
|
Three months ended Mar.
31,
|
|
|
2023
|
|
2022
|
Sales/Cost of
Submission
|
|
1.3
|
|
1.2
|
Cost of
Submission
|
|
$
126,402
|
|
$
201,027
|
Cost Per
Submission
|
|
$
592
|
|
$
771
|
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SOURCE GoHealth, Inc.