SelectQuote (SLQT) 8 Nov 202021 Q1 Earnings call transcript

Welcome to SelectQuote's First Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] It is now my pleasure to introduce Matt Gunter, SelectQuote Investor Relations. Mr. your begin may you conference. Gunter,

good Thank fiscal Welcome SelectQuote's everyone. quarter you, earnings and first call. to afternoon,

Before we on slide begin that our will afternoon. call, I would a call, website, guide discussion replay have After help today's on be like we provided website. to a available presentation also our this our our to mention

Sadun. me and Chief Danker; from Officer, Executive Tim the Joining Officer, company, Raff Chief I have our Financial

to allow Following limit Raff's order question-and-answer today, session. we will participate, we any yourself question and you a the Tim one a have everyone do back fall follow-up additional queue and comment into then one that for to opportunity questions. at In ask and the time, to

finally, Tim? in and will our Executive could of call Danker. that like based comparable financial differ the filings of the the are differences company, financial our future our and on of expressed to other including, be company made discussing to investor As management's from certain those available Tim are Form financial SEC. Slide GAAP the earnings presentation earnings I'd impacting on website. Chief between results uncertainties non-GAAP described Therefore, condition actual statements. Officer, release, referenced reconciliation a on therefore, with and events release but to some implied most financial concerning the involve measures, that, forward-looking may expectations and the we X, our forward-looking number of XX-K in directly current statements risks, the and statements. measures over and not or with operations limited a call, in materially or Annual And during those a upon statements Report measures, turn made and the GAAP These non-GAAP reminder beliefs today this be And our

and for is how you, busy joining of all results another Matt. about excited for to share analysts another positioned and ahead. year quarter our of earnings fiscal during SelectQuote news to Thank well week. you this strong investors talk great And We're and thank

year-over-year from the of Let's X ahead ended up Both with begin on first and and consolidated $XX adjusted to opportunity. first continues I'd SelectQuote like of of some earnings a ahead a in of highlight quarter, our million, were the strength quarter expectations segment internal income million that per in our million, detail or biggest both our year-over-year. million the the up built XX% to expectations. revenues growth and with we which EBITDA Raff internal market Life to were and is speak will we'll be $XXX $XX divisions, net continued On Slide Senior capitalize a our which of driver, share highlights diluted that on minute. of details how reported $X $X.XX. Senior our our consolidated basis, moment, in division given model differentiated but our massive to represent

prescription this in agent more season. I'll drug matching. as of last one last to that our agents doctor over year, tools loss quarter productive XXX% EBITDA in and over capital This up of quarter investments summary with increase the and excited well up first, opportunity, million IPO earlier we're from to Senior in the million ability $X $XX quality Our in X% year. $X revenue moment. up increase we $XX the is training, agent-facing and a meaningful to raised a million this A our division last the speak was leverage core as speaks in even include, to the adjusted that we've the from well few our XXX%, attribute Senior a was which to made million year, or a as was productivity as highlights agent like

new Second, support us to than over our of hired AEP season. onboarded these as associates we More licensed division half X,XXX new Senior our joined associates successfully in agents. and sales

customer such also grew strong or care will agents over We licensed and supporting number retention continue XXX CCAs, enrollers significantly who now our and functions efforts. our as industry-leading

We are from professionals pleased very of so talented this are group with far. we what seeing

recently addition carrier we Lastly, announced Advantage of two our Medicare new to network. the diversified providers

Plan of breadth our further first following Kaiser, The last addition which quarter. in improves is Health we the that state SCAN which in announced California,

latest Devoted are The on of for through two market and our which ongoing excited value-based carriers a care let's our to number but in with backdrop Health, and full to decades. Health season, investments mutual providers upon SelectQuote's experience and care we're to and that Ohio is adding The of good we fiscal and that offseason also Plan focus outstanding but utilization enhancements discuss later. success. have the will of these Raff Florida, second season patient to about SelectQuote we These technology. deliver in care. and SCAN made key Arizona, positions in on performance Overall, and begin Slide the extend point, ROI-focused are start only the Health busy Texas, Senior been choice X with our We're raising breadth to of in important good examples carriers as large AEP markets. a AEP, and turn guidance which making in our talk that some population to our year, cylinders partner results for more advocacy expanding because this the not provider these division. a detail To based centers, for Devoted operates best-in-market patient and is customer offerings to and firing access commitment SelectQuote

Advantage best Medicare enrollment firmly Medicare market for of our to underscores complexity compromising market of as has is unit about increase Overall, with retention, by economics goals important industry-leading We year. aggressive LTV approximately choice will in top the as true achieve On plan, note, and model. be highest consumer profitability. highest increasing range start our without choices industry. delivered our Americans. an forecasted whole. approach growth believe XX And the the million the XX% can I'll the expected that Our we value a believe with increasing we this growth in this to CMS, XX% Advantage total Senior

towards the has direct-to-consumer away believe model during secular traditional we COVID-XX. and Additionally, the accelerated from shift only continue and field agent will

growth positioned not So we the profitability Medicare year-over-year. by to share industry, is in our on growth growth, firmly the some consumer on field the SelectQuote in by revenue preferences. capitalize space. nearly capture that large sacrifice can. holistic growing approach economics. growth a evidenced Other point, opportunity our evolving plan Senior built accelerating our the believe to industry industry-leading differentiated as quality approach quarter, That way both the we unlike players XXX% market trends our our is position has every marketing, or while we that and disproportionate equally demographic that the a To and seemingly Medicare maintaining around during also said, us of distribution agents technology but for decade market, and competitors unit experienced

both. those investments business, and Now areas underlying let's that people we've of powers marketing, of our three made vital most the to our turn our technology in some the

marketing to the this to than us channels, for and marketing it, volume optimism demand from enough to front, giving to rapidly great very say another multiple both there's AEP is beyond. On see the more we way it continue year's if you strong simple, continue those proper on sound scale the leads right the highly not. to may buy leads, business, and That correct consumers engine clearly but plans effectively generate at margins. built and place consume the There's attractive

to be We have demonstrated ability and best-in-class our demonstrate on will fronts. these continue to

Our AEP AEP increase agents. appointments, a momentum last over An were consumer have and we a in unit conversion is These up quarter AEP indicator rep our discuss year more rep which receive marketing up plan. appointments our quality to enter their continue XX% when the first by AEP the as One year basis. rep we AEP. efficient high opens to marketing and to of is both speaks leading extremely set to was last appointment callback than on and per build

our we rates others to strength year-over-year, agents we've work. in validating investments cannot recruiting, simply that and close channels marketing onboarding, significantly training further flex October continue Additionally, made make sales see in short, In first-year for increased the technology.

clear the ultimate by talk they've technology in, competitors the other demonstrated the invested our made is have right is results. about we it scorecard, While technology that in investments

work-from-home We let's training both the This and onboarding half successfully exceeded bringing environment. goal Next, associates, agents. people. ever, internal our season, completed are report non-agents pleased successful and agents about talk our SelectQuote in our in to onboarding class this year's hiring new certifications we're had that and on sales a of Senior them X,XXX most over over

a career from reinforced remote In environment designed different fact, agent people. found remember, than cost to candidate and It's is compensate our the opportunity, recruiting the both important standpoint. train, working our be to our quality benefited a and we real successful retain way position effort, most, by we

This and is a with retention internal quality critical underappreciated. a but Our agents our years. a scale and a that competitors is range of use in has difference internal agent external has many sales force agents that results, believe level XXX% SelectQuote with of built and varied over we one grown one XX%

that and That I improvement In a XX% the we compounding powerful for productivity highlighted. return agents. second in for AEP core a wanted to of that is make addition, our we agents part typically agent unique model flex see as sure effect

in let's to we in productive in enables to marketing wide force. will technology and $XX strategy, Now, best-in-class the function. powering million, purpose-built turn Total our our both technology our agent and funnel the future internal technology and of as totaled agent our marketing third our over highly investments 'XX fiscal leg continue invest

implemented agent customer ongoing both desktop agent workflow productivity. to to and enhancements the season, were For improve retention and our

made capture special at for eligibility. like further and We post-sale to physicians will significant our improve plans retention to these customer election help at we the example, and improvements prescription point-of-sale efficiently agent customer enhancements both desktop drugs, believe efforts. For factors

call virtually for us turn areas. plus training our in seamlessly years seeing training that Given from we fuel to environment, the some SelectQuote let's invested to that, helped come. With critical and the continue these associates will X,XXX significant results the three we coaching onboard these in significantly investments we're to University also our early efforts and COVID tool, of new

quarter. in first improvement First, as an agent we previously productivity indicated, X% saw the in

trends these for sales but excited busy overall results how season, productivity see AEP. will early very to have We us the

like in early In it's what turn to are on rate model, recapture each lapse year's at industry's cohort. customer summary, year. Second, later, ground, those Slide continued result, year. seeing first versus as our lapse and seeing the encouraged over confident our we more to continue raising of the take about much separation say year that we improved we about signs promising highest fiscal persistency If last AEP, a with calendar we're last rates talk few on but witnessing they last EBITDA care of versus have in compared to but will for and peers. in are have years. figure LTV a the our to to-date retention revenue third, and in on guidance lower and trends some role to CCA are are in year, XX%, a we intra-year Raff rates throughout X, increasing the And moment how the and year results the our team that drive based we're to our now increasingly I'd we play customer or crucial investments LTV

team CCA the As important entirely and our is reasons. initial service a focused policyholder three reminder, sale. after main This for policy is engagement on

it is suitability has of or which state can impacts drug profile First, day prescription that change best as has sale, over from to been residence initial the year-to-year, customer the with them, from one, of year-to-year, or core customers provide not health customers' nothing the our static day their policy to From policy. because uses plan needs for its of on life. SelectQuote the just our the from but

reason to interaction and of is the our lifetime we customers is our their with aligned financials CCA the second important team policies is The sell. values

above can is a is in we today direct customers. our the rate years. recapture This and focus knowing each on CCA team has and our increased as of past few quarter, our XX% last noted our about we result as As of much

agents term best our focus Third, The team interested existing our in powers our expense, about additional day, our discussing part our Home what interdivisional XXX vision, policies transfer cross-sell dental, customers Auto of is is, Each sales CCA growing efforts. & believe doubling already market-leading final in CCAs life, each a on down we're to service. we on divisions.

than the than each total Those more of are more capable XXX than we more customer last team contacts the since totals month. doubled plus AEP. of numbers making associates, year's now have Our CCA XXX,XXX and XXX associates start

to see in our customers they result, and a multiple we their policies, how existing we but also benefit both As with expect engage continued products. where on need situations

a final expense to As turn highlight to strong product. our seen Slide as the in let's growth that segue, X we've

On the year-over-year. expense last final premium XX months our increased or basis, LTM XXX%

We our accelerates as add and we're our compared headcount quarter, continue final with this rate new such, increased to to to agent growth choice year a that And platform. over investment. expense premiums by carriers ago. XXX% seeing we grew And

the year. dynamic a highly is product flow payback cash the Additionally, roughly we one efficient of note of with that period

in come contribute market. large our and today, smaller more a more financials to growing overall part of and While the expense final addressable expect to to our and revenues this years we

differentiation opportunities transferred success and sold for From will to agents strong sold story, in of our at September, how our the of be showcase Life are zero value opportunities in mainly is demographic plans. About incremental Medicare about We're revenue policyholders policies and example Medicare final expense transfers, core final the and to returns. our X,XXX new confident wanted effectively a age. our and expense marketing years shopping Medicare June with as to we our XX it our which of the but from great technology, deep model. but final we seniors there those highlight expense wanted drive on to agents core has It's CAC. can SelectQuote's XXX maximize here know, hidden over overlap you division, leverage half over strategically other are a but I Advantage our now, to future, like an capabilities strength, we As

Let me results summary of wrap X. on our Slide up with a

see, continue or the profitability. at the high same can EBITDA is years, of XXX% division to over up will The a the Similarly, an and CAGR drive significant LTM XX%. has past or a XXX% revenue attractive On overall to CAGR Senior you very over XX%. two a grown at total generate period, of SelectQuote growth. and continues As our model of amount has basis growth by

about by our division importantly, XXX% respectively, industry, our Senior and strong differentiated XXX% XX%. and Over around years, there the confusion past these two and some grown Despite most model. with SelectQuote's revenues very EBITDA have results, margins remains

to final before So I'd points like to make a few call turning the Raff.

persist. First, growth strong and expect our results to we operating

we successfully onset scale fact, an the our drive strategy are laid we In profitability. investors model and business out our superior to executing against leveraging at of the IPO, we're growth to our and best-in-class investment

is the model are replicate struggling has attempting already or pieces created. to it that comprehensive obvious others SelectQuote of Second,

SelectQuote we've throughout, market As today. stated view, not difference this the in appreciate is our clearly does different,

excited our seen despite model improvement We're superior doubling very the year, in productivity to our Lastly, we've agent continues improve. the agent about last X% workforce. over

you that, enhance detail to Sadun our forward the on on and turn metrics our to AEP. ongoing and results. updating to With the Additional Raff? against let persistency those over expand rate call me look Raff growth how are improvements our exciting, CFO, equally recapture and financial our to we also improvements

Tim. on Thanks, our with I'll X consolidated Slide start results.

$XX first the grew and by XX% million of quarter, we and For increased of EBITDA $XXX generated adjusted adjusted Revenue EBITDA. million. $XX revenue million

our by by our Senior few within investment As was final slides, segment. our expense in policies growth business next revenue we'll driven the discuss the on and Life

each improving margins our consolidated margins. Our their our seasonally divisions during quarter, weakest year-over-year improved with of

incurred the customer other first quarter flex our AEP amount our period. up upcoming new for story, during As we bring of to a where costs and quarter AEP is our to investors agents a the on quarter a investment agents reminder care is significant There enrollers, to fiscal who support are ramp functions.

These During training flex selling individuals and start we licensed. until don't these the sure October. making are quarter, agents to get

during obviously our EBITDA having pays these start So these costs revenue. agents investments, This selling. off no when by flex associated impacted our adjusted AEP is starts the quarter associated with second and but

Senior X Slide our division. to Turning and

million. very As quarter of of swinging growth compared you accelerating represents to profit adjusted EBITDA, of revenue strong $XX an represents in had can year-over-year. our It also XXX% and fourth and loss growth year-over-year a $XX EBITDA $X we see, million from a million to of This adjusted improvement generating a rates. quarter, growth

as $XX AEP. in quarter, enrollers the million we up AEP. for costs incurred other and over for training we During for hiring, licensing included with functions associated costs support agents, and ramping This prepared flex

that process the process our policies in costs OEP. quarter agents second quarter, onboarding a rigorous includes and licensing plays highly hit that associated no There training, these our first with and high-quality during are very and in have virtually sure makes but revenue robust the We when the carrier that revenue AEP appointment. driving phones significant is they productive

the our a is agents the agents, As more being between between there workforce investments XXX% doctors we productive driven internal our and in we and drugs agents make that core persistency increases and and strategy flex write, and our very our which there training flex inputs and our collect while like than differences in are they of reminder, difference agents core productivity and of robust with the is believe recommendations core products flex little technology make. precision the roughly agent that agents, XX% by onboarding helps

Moving on of XX, to Slide terms volume. in

and year productivity grow policies For that productive per and approved policies, our many largest agents grew with MA where this policies The was in submitted total we of allowed driver submitted X% agent growth total our ago, XXX%. combined us first an as our to approved policies as quarter, and had XXX%. a increase MA twice XXX% we

allows and agents selling OEP, non-peak those full-time flex AEP of flex core agents periods, our large keeping to agents over more from We hiring as and core of our to allows selling in percent agents. the and quarter grow first during to be but quarter, when OEP. tend This fourth after a a flex continue OEP number class us and benefit AEP strategy importantly, large more core strategy us for to than productive XX% increase agents of

Moving on to LTVs.

by last policy commission positive slightly persistency, LTV primarily by changed and Nothing has which persistency and expectations flat quarter, shift. we of was discussed an since the lower this our driven offset mix higher year-over-year, rates For front above quarter. MA was the on slightly

introduction of seniors plan. a with a overall renewal ability slightly of especially This positive easily, couple calculations. offset our the As was and more by persistency of have mix shift and volumes the rates lower years experienced lower we persistency, switch our have reminder, higher plans LTV OEP to included for in the in towards in carriers that is a persistency. higher This commission first

As would reasonably slightly SEP persistency. earnings I our are as call, on one expect OEP stated these last driving and periods lower

have they the a in SelectQuote, few expect quarters, going However, been to the be net that huge for last and case win we forward.

slightly having take Given the all lower incremental elections, and not growth persistency. sell, more having day policies not periods the naturally and a because we choice between by would offset revenue in persistency which long, as evidenced lower XXX% special of impact election these than drive close. OEP them, even It's SEP will our we can

of the how elapsed within really year we information through in policies, policies the one the annual at MA January. many Having For based said on that, have year. persistency some event have do we get renewal view

to year calendar We the last year, trends those and improved lower lapse compared throughout year to-date have first have seen year. rates

and to other to including there tailwinds for mix, provide impact improve the improvements think improvement June, changes LTV short-term should more since additional procedures we and lapse always drivers operational note can a fees have we written seen in LTV, in and rates that June. significant policies made commission to long-term services carrier there be we rates, lapse that care some processes our can and/or persistency while can swings are headwind, that since in also rates customer we and I carriers. Specifically,

to Moving on recapture our rate.

that on before. the XXX, LTV the of for be the have since number the churn Our each recapture to over due define the a attached carrier, beginning would with we have that another years define and recapture we the I the or last has point One those technically denominator same that quick make lapsed will of new mentioned customer not as be is a Those the and of be improved and customer rates is rate policyholders We and carrier for new a that that the Tim to year-to-date metric. care carrier to which policyholders event XX%, which recapture sold how event as the recaptured new can policy. policy year initiatives as rate few would numerator. with a of new XXX churn customers number

cost AEP as throughout the and fulfillment Lastly, in our increase and while went per our productivity the we a spend the benefited we from with quarter. revenue, were hires perspective, a agent staggered margin from perspective, the optimized sales costs our up, during which up quarter,

a marketing allowed to year-over-year. rates these year-over-year lead-gen margin in margin result to the XX% close mix has costs versus a of to revenue. loss of term margin to profit Life and XX%, combination percent EBITDA a XX, XX% improved also items Slide the year-over-year of versus swing as improve our turn $XX quarter revenue, a higher life of improved. grew XX% to our If which Our The revenue as us million. million we higher improved a final to $XX and revenue from adjusted division EBITDA expense as Adjusted

a are growth ancillary out and expense X% of decided expense increasing premium of premium versus other premium, our increase larger final products. term policies associated the combination in our As a XXX%. and to premium Revenue life final division, break which was by final larger with portion was our Life a becoming driven growing we've XX% the total specifically expense

are strong front-end we the the life demand cycle. sales term our seeing of on For product,

work has process policies before, of COVID completing getting blood done to been in in However, their delayed as impacts mentioned as a force. the headwind get the have consumers

significantly We premium the investment over we launch this from division quarters, expense more the great and have term able change up product. sell our be sell to products. It's again to of leveraging shift built generated advisors in who we our final a to example will last ancillary agents new our marketing have to in Senior sell several platform this during quarter we product, the products. of ramped some that we For did product in our quarter, Senior OEP. second our AEP life health first than products the our This as products and to Life

Home & increased declined on Auto to to to XX. XX% X% Slide Revenue Turning $XX $X million EBITDA and adjusted million.

As to discussed and our on Senior business to in has from decision reallocate the prior & Home agents Auto & Auto final quarters, revenue. impact division efforts our had Home our expense an

agents' While down in of more by revenue write much fewer the revenue productive, EBITDA are actually up almost that business with rates year-over-year. adjusted our tenured and relative Auto & were we the same also and driven as agents premium agents Home and a we which we agents therefore, fact more amount generate didn't with This the was efficient our tenured can was more basis, have as close did X%, on was meant marketing, higher.

me Turning heading AEP. to our capital briefly Slide detail into position XX, let

this the and several grow for the past, in strongest we've the stated to and IPO years, in cash in raised the entered we enough we to be placement the company's next proceeds position history. private As the able AEP through business

we operations, in from as During Senior we in million division. our grew the policies significantly quarter, our $X cash used

and our included this of flex agents. onboarding with earlier, stated training costs million associated $XX I As

for addition, on about ended cash In zero and $XXX million with drawn we million $XX in $XXX of million loan cash used the general debt CapEx. equivalents, quarter and $X our million cash revolver. We in term

receivable receivable balances. quarter long-term commission's and the of ended and with also $XXX accounts We million short

our guidance to XX. on Slide Turning

would Given our the for and growth XX% raising XX% consolidated revenue range to above of guidance We our This the to revenue fiscal which year between of are seeing, strong are consolidated quarter, XXXX. million. our is AEP we we currently expect in the performance first $XXX year-over-year. million the and start $XXX to of imply be internal expectations

million, million of We EBITDA consolidated which range XX% imply and growth adjusted could year-over-year. expect be the adjusted of $XXX in XX% $XXX between to EBITDA would

$XXX business the with range we $XXX guidance in your call for in operator turn increase Lastly, in driven sales of back to growth to and Senior that, expense policies. primarily policy the be expect to is million the let final growth by of me additional And net questions. in million. our our income now The

Our comes from James Sandler. [Operator Sarah with Instructions] first question Piper

line Your is open.

you. If comments persistency different appreciate about that's is how look-back is the the a year. Thank SelectQuote's that things is I this time - think I little developing And we think different a one between bit look-back the of period and little of And on the companies. longer. I

cohort? some you then could on annual your So maybe by mentioned and you clarity persistency give us And just the differences persistency carriers. between

the on carrier that? given wondering, you selling agnostic are So when

Sure.

done XX-month it's average. they're So but rolling to persistency a respect average, calculations, a on our with weighted

there's been put been about. experience, as weight bigger has recent on growing, basically, the talked So lower more we've persistency that a we've which

weighting the the business, full-year, seen, with the we're and for And quarter, growth that respect based on XX% in expecting that's the weighting is because So of again, the quarter to embedded calculation. then recent we've implied reflect of kind of respect in the I of recent the the persistency. persistency over most the to to with the think experience most XX% so of

allows in it when what going not or us overreact business, it's going the but to reflect basically So, down. up either it's when we're seeing

are assumptions us, in for worked are that there. the and well those that's so And

persistency. have persistency, but a And have that slightly of different we different seen mix having in range, different are a terms shift higher persistency. have general, carriers yes, in they In a towards carriers do different carriers

business We're an that's Now, open our not or way driven by other. steering one the platform. agents

taking piece which And in really larger the a of having so of marketplace, those function and plans those carriers basically it's share. are a plans, competitive

Right, you. thank

Jailendra comes question Our Suisse. Credit Singh from with next

Your line open. is

it quarter. a Hi, I least company's dig Clearly, in more few the at on want the targets? million raised, $XX exceeded the to understand thanks, trends us bit the the the guidance the or everyone. $XX by weeks it's You about Help early you've EBITDA. and revenues than that drivers is more hiring million some Is more revenues, of into positive guidance talked your first there? increase seen of during you have AEP about productivity. little driven it beat

a in about are comfortable three million what the has raising more Just point? flesh $XX months out you bit guidance this more changed by that at little past

to Yes, which you think our combination several factors, really Yes, quarter of expectations. the in some beat it's first I a mentioned. compared of we internal

So that obviously goes calculation. into the

weeks strong, the October first the flex been on and agent seen think really robust very side. we've several have good specifically, of mentioned, I Tim productivity and

the that's equation back into of then driving that certainly, So the some in - that well. final the And policies, half as as of that the just overperformance towards investment year, we're given well. that's making expense also goes

those are this at of in primary the our confidence drivers point So guidance in time. able terms raise of being to

And a - follow-up

Jailendra, Hey, is this -

Sorry, go ahead.

is and market. exceeded really seeing, the strength this our guide. some the think productivity. agent of I is a Bill speak that would as are division. We're a hiring that Officer the just made team, yeah, Bob, targets. joining and Jailendra, real the part little are this of strong add Operating playing obviously, good can are noted Senior movement backdrop yeah, seeing results Tim. of President Grant, we Bob of earlier, we And some to we very upward standpoint us Raff's a our that We've the and his - bit we're investments terms Bill marketing say you from we Chief points, seeing in Grant, got through to with we have call maybe about in our

I'll portion. the Yeah, training with start actually absolutely.

with have training and our We we already virtual for helped remote completely history for classes redone training year ends program of prepare prep agents had us years dealing the a this really environment. larger While more this AEP environment. of to

So we really prepared play COVID were happening. seen worked. training prior that through COVID And to how that really we've for

also to ultimately our that's able in we're make gains We taking higher agents close efficiency. that and to plan reasons into investment a the for for of a recommendations, them picking factors writing both so take one only consumers, process it gain money are streamlining of quality of plans business. more rates not have agents better then our our more also and And while mix more accounts, significant but them spent in and to seeing is for quicker then so making a the assist amount to productivity able also they leads, higher process

So months in we're preparation play through then, quarter things, and nine yes, of in really proud over we're last what seeing. done positive this and good for really it both in there the the are AEP some trends seeing of we've

quick A here. helpful. that's question follow-up Yeah,

expectations can as for fiscal that growth your Is is for it full-year? I was are fiscal your what same in expect any guidance second critical trends flat second MA wondering quarter if provide expect quarter you the quarter? policies approved business, for you Given And MA you LTV so around the in in particular?

second maybe providing so one necessarily I'll first. cover We're not the Yeah, guidance. quarterly

the So guidance been annual. given has we've

annual of terms a similar follows in the that pattern relatively think in guidance. general, it sort I spread quarterly of of

quarter And the just uptick and out that that sort quarter works so the third probably fourth on we business the gave just the in laid second disproportionately than some there. of drivers quarter based than in how guidance the of we

policy, There the LTV for be think of In of LTV depending really a full-year, of terms terms variance written. quarter-to-quarter nothing will from the think be sort of that relatively overall the on businesses changed of in our expectations mix ultimately we But has can still I flat. there. some

Great, thanks.

Anderson Evercore. Elizabeth with from comes question next Our

open. Your line is

for so resolves the all would of the expensive, color are trend spending, think but sort a imagine forward, maybe guys. more how around with obviously, expense going How as some be were around should in shortly, a that marketing should we question. tailwind you itself have and about that guys hopefully channels it Hi, much seeing the Can AEP Thanks question. talk sort I you? some of that? election for you I

absolutely. Yeah,

through then QX, absolutely great marketing last the and of the to combination news spend the affects and certainly, both the days a couple breaking Certainly, it's So it then election ramped question. up expense. the relates spend, marketing of marketing has as

the one confident we though were think to all even doing question, that the reasons seeing going we with were felt the in previous spend I the about so we QX, of election. on back tying how though,

with high-quality as is good our good to really real were for to go. indicators good close really agents, talked testament how Tim led of AEP were that that rep to and for a going costs both to which leading our AEP really a the rates some really lot about think well as control leads I AEP, which model - really, appointments, drive are able under it's we keep things of really that earlier,

more it as and said, got gotten relates all and the as that when strongly I tough we're into kind of that about some to and bodes of with - now through away, you year, on that like really As side the we you confident again, we've how good those are we this all kind environment, breaking for AEP, to things, got into of and we've get also being that AEP starts it the us election, it's get gotten feel able news, right the then performed we certainly, environment. pack of think the where through stuff rest I feel that we done makes which we've perform to as of a out well that, through channels taper bumped, really

could Perfect. some unpack result or marketing, can to efficiency from? to first you else? like is the mentioned that more Advantage That's sort or that something Can a something point of Was - better you on of then there sales came the efficient it expectations. you upside And in your you upside came very in your mentioned quarter, Medicare as an helpful. you side where

Yeah, there's Elizabeth. comments a of couple there,

in marketing marketing, comments COVID because strength all of have at a and our an company. with on that the hit made mean, really flushed You agent for terms of tested lot in be made And a optimizing seeing of folks recruiting and two life really of team had in also successful AEP, first that the prior are his some really a say really all remote in we're agent engine, lot I of per our We're leads had we in excellent to while the I a strength technology. also I good our to there. X% Bill We're that team talent improvement acquisition that always regarding in that think Bill we're it's think on done ties job. our of basis. backgrounds, Grant of strength, day. step just indicated We now. early we I'd attracting. Bob way manages them. and And seeing really, national improvement recruit the quarter, of productivity. can - then that in function productivity seeing quality productivity, investments some flex back early walks wins. We're we We've accelerated has It's agents

makes scale talent really up bullish opened that's So the about to feel for very us continue footprint us, the our into ability opportunity. which profitably to

much. so Thanks Perfect.

Our next with question from Morgan RBC comes Frank Capital.

line open. Your is

afternoon. Good

So care season, this earnings plan during for year. switching lower expectation about the companies all managed talked the have an

hit on second terms coming when is, you get that you your reaction policies it versus about persistency, higher your think has persistency? new in guess on too, board? carriers comment your of what business? and to And what you've so like, felt I the have carriers would persistency board, get I on have the new on lower over related to impact then got the Do higher a time? to to rate that bring are certain or sort do in been you higher the that process question the of of just history does kind And have company's Thanks. have I of characteristics early carriers normally wanted build a And that you

carriers around from to strong feeling kind from designs plan the the put of lot are a things we definitely year, really seeing Those took questions. going of carriers. as HIF into benefits this the that as are all plan what's consumers. that far happened and this And good some happen They money I really for really good designs other and think the and the year

as that, that the get really first far one feel the regards we our book, of have the we your the to in a on scale depends size we an to strong book far on, we depend on So will would bring And our especially switchers. are conversations Since carrier on kind and which then as of agnostic size, to - about be second and really competitiveness of that that. platform, question, carrier. as really as when it it the with

strong kind as scale, partner WellCare of last So book, like, a and expanding good they've seen for then got of a and they plan, they're portion them we've year, because example, lot a of on material really our we a have brought be quickly.

big don't can we Some focus as a really try quite they on of increase smaller but carriers, our the get to offering. carriers that percentage,

Tim So we can touch the as to. more of country, alluded

really the a our rates impact meaningful, it's even X% can on depending close by us to So X% be carrier. because pure because for incremental can business increase it that

a long-winded it say depends on know to way just I that but that, the that, So was carrier.

you. Thank

next Yong question Jonathan with from Our Barclays. comes

is open. line Your

question. the thanks Hi, for

and the left are productivity on given wayside of are leaving all much, coming still if hitting just kind kind so the improved saying. marketing calls on that? you're or the productivity the on getting curious that Just that because color improvement you're any in you're kind of some I'm you of

Yeah, I deal could how about that. with talk bit a we little

when you're volume. costs things certainly, in possibly TV you that, to So absolutely fixed take and best we We spends all can. advantage try managing do that like the get spikes of

between a of that kind the we get have We waterfall going we're a quality lead specific think to of from effect channel.

how have basically it only those our level some we really We'll it an say to algorithm in let's History one that say leads. great let's terms to And match down. before that try try generates with to agents. we So our of will waterfall built think long one we on agents Channel, channel, match we we level

in defense of lines waterfall multiple have leads. We of how terms we

every to or so it's going we're that which able to we call all try the spike, sure like screening to get then to maybe then to go agents, can that a call. call other open right, what big if our going that, answer going of departments to SDAs, are reps, up it's start basically waterfall, we are going we to such make things it's ultimately First, CCAs one as -

down big call call let's within the funnel also call that say, they say back so put we'll we later. takes seeing could If whatever to them want we're terms the can answers more spike, of, and have hey, that in to We set, get it, back where in you somebody really options. that message basically timeframe a certainly queue we we

calls But ever of we making job low of the can. way and can channel that are we do sure But some that run that So the a really big on when those and also fixed consumers. we eyeballs really lot calls spikes costs we're certainly, we that we uncontrolled. they're the right good maximizing consumers meaning leveraging drop, TV on everything we're if we're there's do, - all make now, a intent we versus right high-converting a dropping, of

looking legacy, And And expand versus pod carriers, the I'm non-pod curious any between or the Great. productivity? Thanks. pods that pod are relationships. in add on relationship? whether Is there terms of new deviation agents or to

there's In more in, just producing agents some depends. terms our would level productivity, obviously, our we in But more agents of normal I I so mean, our pods, our exchange, core force. it in see one of pods. we company have agents top the just SelectQuote no, really, say within

thing know in to have they they're things I they plan, plan and every the so think less benefits out, one the know think of little the when that pitching of they right there. about the designs

do So Bob, they can how get really really, you want anything that? really good and to zeroed you there. to job on to they add those in a have do do

digital it was that question pod of and given ahead whether see to speak times what heard depending kind folks that. those the shifting for will think ask how be, for That's dependent extremely Yes, and they closely expansion us expand tricky it, pod, year, telephonic carriers are and they work period, making I on plan enter the they Especially, carriers mean, right and investments plan can kind on think with we that. we at think us, I if Yeah, but are I to interesting I to you've of carriers asked the but on platform. if channels. now this strength on need over the like either an

come meaningful really can conversations having and and that platform. our come our through that and some are we carriers core growth can strong through of around the of with growth some So pod

you. Thank

Our Grosslight next comes question with Citi. from Daniel

Your line is open.

what Hi, congrats this wondering question. the good the segue about on last taking into been for Thanks guys. quarter And a I've that answer on actually was quarter.

mentioned, telephonic both channel, So as are external distribution the internally. you and investing heavily all the in carriers

competitive focus do they to you to really to forward on channel. want I for year XXXX internal that So that of impact in XXXX become think AEP think environment this AEP? internal telephonic more going plan that's as comfortable you for the investment XXXX How And the telephonic do then that channel, how XXXX? looking with - impacts

we've channel their aligned the on recent of them and their think - are of of you've the and multiple growth. I a one importance hit a care with levels, great Daniel, the just on it's fundamental organizations direct-to-consumer. fundamental growth, with few - is question. are partnered managed on today. we think, I really carriers mean, And at And I heard Yeah, phenomenal we growth being talk level partners one about

of, growth So we're what of validation I drivers. we've one - really is think important the that's we guess big been saying

goals. with with relationships strategic doing great then here as some of team strategic on pod to really Bob of carrier been touched a our our kind his And respect lot helping the We recently their of also partners us and achieve relationships work to ways have for finally, accelerate partners.

the value-based is with highest and take advantage growing, ways joint we to that ways we're that very value-based around of efficient. respect industry. in With have think example of with lifetime We've think to is care. them of really our a integrating model of that I proven direct kind education kind policyholders the that I great got our do values they can care

is carriers efficient is proven with COVID that's We before to carriers, if It's like on highly very think you accentuated been only they there going add Bob, why efficient that? mousetrap, will, models, like I SelectQuote anything post-COVID have environment. you'd continue. models growth. This for and to for a the coming to

upwards think consumers Yeah, the not and the are getting consumer to helping and even have going in there that sometimes that because platforms, we account better are understand And just thing them direct you going drugs carriers. that, think of to those And costs ads and that more certain navigate into they they for one necessarily respond that, like too, to I the to multiple they total things multi-thousand zero-premium things choice. platform. there choice-based may an to and comfortable differences is when though plans, I dollar plan all be see not agnostic different add with it's take between is past know more be agnostic in doctors the through than carrier market a

better So I have know Tim's point. think rely that need because may more the and to they to really on we response carriers us to rates, we may be efficient them,

we So that it competition. massive see a kind and of We concert each with other view don't don't as really changing in soon. actually work anytime

I guess just Yep, then yep, expense sense. makes the final that product. not And on

the sold were many there what tremendous referral? expense Medicare from sold that way, referral. You Senior cross-sell final between policies opportunity and core other is I how a noted were mentioned the Senior product, Is think expense policies about product XXX final And a that you from a there right?

in attractive the between There anything just we're doing large kind very think with - are as there. get with cited want pretty The XXX% cross-sell of that versus And growth Daniel. quarter want very statistics, I we're way? flow a cash excited is as question, fundamental back and to the speak market we great two coming prior a year opportunities the consumer is expense. to what which I here. and do phenomenal, well you another Yeah, the our final XXX% Bob, about opportunity. profile. need out other It to

round kind But overall our way. do they see we choices disclosing to coming benefits, we and ensure with is CCA success that is, but our there. we not add works of expense out Yeah, final the back of population get We're exactly color team one that their Medicare that other the some what can there.

As far as though, partnerships with business, Tim's carriers. by as that's final really expense point, dominated traditionally It's a exclusive a street agents, low-tech really of to market have large who are we excited. kind

we ask it's And right expense and into put has funny really of client. of got types while on what and because sounds for maximizing underwriting Well, for that somebody it to saw plan really Medicare, their final ripe how you like to use even to plan folks into savings their unique we similar layers designs choice. money So we different needs, just of disruption for kind of as feel save those the on depends plans? it technology

that takes like other questions, some some have it five and do how XX the carrier really choice provide that depends on and risk. health have on in divisions. zero, way in there's So that that that have we a we some And just that

we can and what scale we on So do. can we're how we as really into excited that get

it. guys. right, All very Got Thanks much.

Our Schenk next question Stanley. with from comes Lauren Morgan

Your line is open.

some competitive love landscape Walmart's Would counter brokers market for a just or And opportunity as broadly, how as they're the - thanks market particularly, direct-to-consumer Great, little a like yourself. about been picture the that are then piece concern bigger much. around of so bit that there's more that? entering TAM a little that, last the a perspective, piggybacking hear on From back piggybacking announced Maybe think bit to the the white-space in the I your thinking well? one. you to

question, to you. from great Lauren, great hear Yeah,

Senior to our we XX people a, FE to eligible. of market the this Medicare surpasses well is the becoming XX eligibles that's growth really because this the are addressable of terms market that's as for growing we call like incremental market, With Senior, million opportunity MA. And On billion of shift about a the in XX% And side, really $XX on that's distribution, billion just growth million. as in upwards just today really opportunity. the kind feel core of that real opportunity a really respect it quickly the perspective $XX business, that think

feel there's a market So like massive there. we really out

multiple hey, call been somewhere or it think are big have I players there's of the said, the four around, direct-to-consumer research so X% market. analysts

So pretty kind it, I big a of market opportunity. way you we define it's think think any

AEP a not In that They've the a this lot for their in-store We're XXX new into terms They Medicare. hearing less - agents. that trials. direct-to-consumer with here than, is is not of in - some foray partnered that a of few Walmart, first it, we call there's news this know years this broker do ago. had market done

as an clearly skilled business upfront our entirely is this consumers they're know fundamentally, company, a We So a company. core, a because and this right, a not highly different At model. important We're decisions retailer. technology basis it's to reputable utilizing we giant - view help both on ongoing we're static. agents that an data make company,

play advisor. as important role we and an educator So an

technology, kudos compliance, Additionally, Bill, There team. a operationally this it across retaining carriers, pretty rest complexity to to lot is a marketing, agents, heavy is this to right. lot of business do of agents, Bob, the to a business, hiring in

right I'd four TAM. final players, direct-to-consumer is market. AEP, the is, - make it I literally less massively point thousands right making X% with the think Medicare policies This the selling large during tie now than there's to the a of market. underpenetrated now, it's agents again, Even up back of

relatively size still grand things Walmart given the decides in if small of hundreds be agents even to it'll the the of So next scheme of add year, market.

because we'll evolves. it it We'll monitor So take don't lightly it and it's how see we Walmart.

Thank Great. so much. you

next Our with Meyer KBW. Shields from question comes

line Your is open.

it's you've that the I terms have and persistency? did ask to that early. future about and those you to far wanted what Great, was the change of extract - so the OEP, did carriers impact know not of customers OEP able I But persistency I in during if been the about wondering of thanks.

basis. based OEP. that, that lapse of I lower of is year-over-year we a gotten I course Having the rates the on one positive said trend have year are saw So think last persistency seeing year's better the throughout think off we that

so have a annual And back to you of persistency that that's of to to - while sort sort in to direction. your get renewal to completely wait tie January

basis. a in positive that's leading trends those policies and indicator of seeing that doing year-over-year a think good we're terms really the I fact are on how

to you those Bob, the made changes want some The since as on and is we thing other changes - But those touch significant June, this seen operational that changes. of would you well. rates on lapse maybe I improvements and it's made. some note in we that can Maybe we Bob, since have touch within business

data Yeah, us is said no than we and absolutely. really what process book different and We've to before, do we help our decisions, define ultimately use make upfront.

collecting on stick they'll ultimately target data out different with we've for So really how so to risks years provide and our - book value to figure them audiences been additional risk that alluded population. we to, some changes seen and in we've seen June SelectQuote. how - we that And material on and as that pretty be made really treat we've July, Raff impactful

kind be that anticipate have clear, been model We that using in be don't that as any will we And upside with impact plans But certain we seen have we do have of of And for we we the - treatment models, our on risk well. of we could of use pools that's purely extremely our our OEP. the to do different impactful same during population. datasets that that, us. new

Okay, so much. fantastic. you Thank

time. Thank this Danker, call over remarks. turn you. There are no at the closing CEO, I'll for further questions back Tim to

we are the high-quality do encouraged and quality deliver Well, that the sector this very interest we Xth I We excitement expect to trajectory in our to to and questions. about AEP. our by and the really appreciate and continue thank confidence given in model results. the our all SelectQuote of We position want long-term in profitability restating durability It's built. of great AEP. We're rapidly all. in close the seeing the all you the of growing

think say I we've as been it's growth. easy for that are well positioned now to right never as we

to want they provide all thank SelectQuote work also need. the protection who to associates I that dedicated So of every tirelessly day our Americans

and winter. to joining, we all for you forward you thank again to look talking So this again

today's conference concludes This call.

You may disconnect. now