SelectQuote (SLQT) 9 Feb 212021 Q2 Earnings call transcript

Welcome to SelectQuote's Second 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 second call. to afternoon

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

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

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

highly thank strong Senior of a our and as large Matt AEP very for excited We're and investors in to you, part business. results SelectQuote by quarter share successful in our another to driven analysts. usual Thank you

exceeded up year-over-year; our up last quarter internal highlights second three of consolidated million, million, SelectQuote EBITDA Let's year. ended the adjusted from with expectations with quarter XXX% slide the again. and some over $XXX start yet which XX% second $XXX on of revenues

in stable another second LTVs the We're industry-leading was business our combined again. of by quarter most revenue with As quarter our the and excited main growth. for highlights Senior event outsized

Senior adjusted challenging compare rapidly grew Our division year-over-year revenue on with XXX% up a up XX%. EBITDA and

a similar me growth for of second that was we to EBITDA in out top XXX% and Let year-over-year the on that XX% outsized growth experienced year. pause call topline growth in statement on last

by of grow on on been the can the that through I'm we note touch in efficiency will XX% EBITDA of many marketing businesses growth year Raff the highlight last for lasting have a XX% the top the of more better our quarter could growth. over but not is of model. of details Even as a how which of not scalability importantly, There quarter XX% believe to more impressive significant we are XXX% grew differentiated profit adjusted and Senior in and growth terms by opportunity revenues dig minute. business, second the in year. Specifically, emphasizing even is we our to only

and deep flex customer about premium a monetize productive winner we expense continues In XXX% the our our have which with achievement to anticipated. how agent Put we year-over-year continued knowledge our shows which is second, are over I'll faster is using productivity efficiency. XX% simply continued cash our less AEP a business, up can power despite on Another be agent increase in growth Life of basis, the on and nearly base. standout the growing our last but in year while growing highlight cash a final improvement the model a than agents. XX% in we detail is technology

Lastly, vendors. lead certain Xst, purchased assets on our lead distribution of one February from we

similar our have to we opportunistic our if assets would acquisition, business. Response the These Inside EBITDA assets be synergistic stated quarter became us continue is front growing we past, range more are to and strategy. XQ our and to this rapidly that detail to lead the pleased $XXX fiscal in of have were strength to raising into Based to excel validate third continue XXXX AEP business. consistent generation Raff differentiated are go the our that As adjusted a for available to results, our raised and our we refine guidance large straight to very we marketing our the lines total, growing will for of allow SelectQuote but on later, leads In will continue our million capabilities and we on $XXX in guidance. our continues the results million. various annual to industry and of generate

continue products slide health senior continues Let's strong to industry importantly, of to turn we successful we for X just the and at an demand and level, AEP completed. to SelectQuote grow see At trend. multiples review that more

this X,XXX of high-level onboarded new comparisons We first. which AEP, were half Some sales over associates over agents.

the increased What was As impressive a work-from-home training our enhance from our last many result, environment. unique ways in more experience was average replicate and year. XX% remote productive ability in agents to

agent agent flex retention of sales of materially increasing we our through agent experienced our the rates process. all stages In to better addition force, size

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policies consecutive MA result, revenue a last fourth by policies XXX% As approved This over XXX% of by we over our and year. XXX%. grew total quarter was growth approved

volatility lower the stability to compared are foundation LTVs, growth our than which point proof XX% we've out were Our flat built in LTVs stands in which more year Furthermore, solid a our at rapid of peer MA roughly ago LTVs ours. to exhibited of a a model. the period have compared to is $X,XXX, and

our Lastly, called as new LTVs over which why approximately sale. every we strengths and each them important believe and as believe our we manner. all, nearly expanded spend our crucial in our model technology. on and connected to in you our now XX% With significant customer of some our of differentiated is stop cash doesn't persistency our returns. ultimately we with year is What in grew our to last point at successfully CCA profitability outperforms of so model these of Senior know Best and in early-stage do did agents XX% an are time SelectQuote efficient increasingly EBITDA like adjusted I'd factors two most driving team,

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agent important our a and XXX% is hired each was is that onboarding First force rigorous process. internal agent most and through

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to about but First, AEP more it look the which ahead. opportunity with validation our the we this revenue of in now following massive we XXX% successful and be growth excited couldn't said it company a as for Senior model was the growth we by XXXX, most times what XX%. history this of the grew We've in means few company's our

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agents important regional number results. workplaces our let our strategy, we With proud been a given the a of how awarded categories. and Raff fellow and to are Lastly, in basis that, associates to to are have on awards detail both call over national top me turn very our to

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

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

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were margins. consistent and faster growing consolidated more and at margins stated lower strategy producing down of revenue a with EBITDA slightly Our our absolute little

XX slide Senior our and division. to Turning

As adjusted season, This $XXX of growth EBITDA $XXX you and adjusted the second for strong we year also grew million the quarter. million had highly and had It represents of represents XXX% revenue when but the again and last AEP to see, we second year-over-year we can still revenue of a very to Adjusted XX%. XX%, We going of XX% EBITDA generating and adjusted of XX%, believe XXX% this of margins year-over-year during consistent million were we and revenue in stated point, growth the down that revenue absolutely EBITDA with million added EBITDA absolute with year we revenue faster the of the and we expand attractive EBITDA, and little This margins. proceeds $XX consistent revenue year-over-year. of what XX% almost with strategy added three XX% a lower over that slightly growing To a with on was grew we adjusted $XX our quarter quarter EBITDA. at times margins from have more fourth producing EBITDA more were tradeoff at margins row right do said XXX%. of grown IPO.

XX. slide to on Moving

to us higher-quality contributed with roughly XX% all of rates to in the this on and back-end, MA growth X,XXX improving. when average more combined driver lastly, bring and changes with For XXX%. and efficiently including, policies, continued increase the total second pool and was quarter, workflows, drove This you we on submitted average both take front-end than Average our during increased productivity flex average policies agent headcount year-over-year. grew improvements to onboarding, other and SelectQuote the to agent our XXX% bigger selling policies were had and XXX%. was which agent agents approximately conversion from; our The to us Multiple virtually. and select factors nationally, significant with the that approved where consistently process. recruiting allowed quarter. improvement University, more operational in train matching overall candidates agents of both and consideration to allowed to approved the up which productivity, XXX% productivity up we This productive core training, licensing and productive; our a Total before; more was agents, increase XX% total agent that hiring, and sales remarkable in done up the productivity is into really largest submitted growth MA technology policies allowed our refinement agent be policies speed allowed which doctor us drug up the

Moving on to LTVs.

above For policy of was slightly internal an year-over-year, quarter, LTV MA flat the was expectations. which our

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So those our carrier volume a year. direct lower of this relationships represented mix

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our It sequential As a our revenue flexed quarter impacted into final the as the benefit halfway OEP. EBITDA of hire AEP a business. growth of Senior And Life and also the amount significant expense did the train impacted didn't for that agents down still of flexed over XXX% to EBITDA they some strength expense agents fully was agents senior within the quarter, business which we these sell AEP. sell but premium, margins expense given the our enrollment, to over we up to additional final year-over-year. as incurred the and with through of realize but of This sequentially into during help flex reminder, we LHA and

back to As come sequentially to grow we also agents and term we new flex of our some was completing where impacted their get and hire blood work their business, the the Adjusted both life on and EBITDA getting to at end profitability more Life premium and to a LHA lower headwinds the in COVID expect policies LHA see force. OEP, we process year-over-year. agents of significantly in continue by to consumers done delay due

the on Some business. to is and expect levels. normal negative periods waiting We also impact to trend temporarily of conversion carriers a restrictions have instituted these the back having COVID, other rates which around do

may COVID. However, the be several lingering impacted of still next quarters the by effects

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

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XX. Turning Slide to

quarter million our as specifically, we used the during in grew XXX% we business Senior AEP. from $XX cash For operations

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

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

the earn-out component our this in cash if The has as met. expectations an million part XX% you to as and that exceeded certain pay the there earn metrics additional up may to payment were to was stock. and we enabled earn-out acquisition We to XX% remember, Inside expect the Lastly, $XX.X of ability had pay full Response earn-out. an them acquisition, in

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XX. Turning to guidance on Slide

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

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

income the of we million. is primarily in the to second range the Lastly, our expect in driven net to of be million quarter. by in increase guidance $XXX The business outperformance $XXX

In embedded quarter fourth we in addition, are are making that our forecast. several are there in our investments

better year's customers will resources, support plan in investments hiring investment AEP. our carrier agents One, to believe for to the as more are get We an initiatives. and year, next into us finally, new technology fourth up needs. visibility believe next and we value-based care long-term we some benefits to and we specifically care three, our enhancing we And are several will ready and hire value-based development Two, this key dollars offering Our partner. the better have ramping initiatives, are our Senior quarter, us in classes spending business we business threefold. even position core flex of AEP into our, gives in for

third should the cadence annual rest the mid-teens. represent in to margins your the let questions. year, now should the of quarter for mid-XXs. with of revenue, As total we high quarter year of XX% represent the the margins fiscal the fourth total of And think revenue, with the that, call the Operator, XX% in turn back Session Question-and-Answer with fiscal about me in annual And the year about

first Your with from comes Evercore Instructions] ISI. Elizabeth Anderson question [Operator

line Elizabeth open. open. is Anderson, line Your your is

I in sort What didn't phone could because on sort there? apologize. nice the was what a that? with you're sales And forward going process ability could of was do couple I a sorry, as about cell give if thought on see, kind that. productivity, you given talk productivity future that of wondering areas was that new people, the of bit there the interesting more little and be Congrats to the of a that COVID, to of put invest Hi my AEP pretty I you season. -- could things you that I of helping have in like you terms then, you and sort examples additional of mute. maybe

Yeah. Elizabeth Grant Senior I'll making workflow, back commentary. maybe more the Great And the to our over in a this care. our, Tim. about we call talked then as gains model really of start. question, our Division, our But skilled on marketing, in of Investments is kick for President function Bob agents it right, productivity total. are we're technology, the customer end

as technology that really will. coaching well. we in the environment, the the you the aspects and we're working very alignment, that, hiring all the well plan if that, enhancements platform, efficiency investments drove that We making a virtualized feel operation from, training are everything impacts did to COVID the in our all good as model underlying both confident whole really it's business of So the national that

very we incremental LTVs. model to marketing think the I that sales fortunate have investments front. to market on really a into That opportunity massive conversion, built have excellent the industry-leading lean has us is allowed with

turn both, from Bob. I'll a over more gains there as on leads. function well to it With saw improved leads really that, to -- we conversion were being as consume agents able So of

Yeah.

our they quality really sure really really we of Tim's more our lead sure raw technology in focused which improved to we lot. making make the point, to on that, take raw was can on, focused that about talked material. available improved I think And we that agents, that we a to material, with and the

expensive call of in order last more our our that As have they more struggle higher if raw training to had our taking close we really really close rates at could also that where taken right more that looking close curve, raw the material aren't because this But our to agents, we on rates. honed our We were in at leads to be increased to we it opportunity, at improve newer do have rates. you that year's we need focus expensive on if our year, look material.

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enabled and things what work of together, we proud overall add really we're it really did us of there, have to those efficiency. three but So the to all

So really allowed was just higher grow tenants that have those us headcount. it's not significantly three key on quickly, It thing. one really productivity higher and to that

Perfect. see on sort unfolding? you see offerings over that That frame And of what can you how you expand really and And -- sort should value-based helpful. time your care was initiatives? of, you

Sure.

Just a this few outcomes. way brief proponents, think to We're is again. it a health before. discussed Bob over better kick achieve big as comments. We to we've I want help great consumers to

company. got educator with capabilities. out so are and and is right, innovative we And in place the as customers quite passionate to announced care models. leading for about the we're serving, that publicly it. building numerous we're effort one have partnership. this We benefits our care additional We've these four Bob aligned providers of about -- market-leading we've He's

you think from I should firsthand. him hear

Yes.

of of, able the and unique rate as and rating back end really other, our things on the healthcare and on And portion focusing are having a all star kind to offering. of contact value-based is literacy do there. heat We activities we're our care that what's

XX% And hold a We folks almost is customers. as we ultimately general. alluded sale, industry talk our have a align get healthcare get able how just, of to great I'd with after in Tim relationship our it. mind Medicare leading, is we feel you we're Advantage Their hold carriers. many over with the are to mind blowing we customers properly that, to like the plan. which how using a with data. educators of of We also, then, That's say,

ultimately the align ratings. get we we our that at our it, it's see about into a process other in offering we're with that us. money And save that activities and help Tim them while and care as we the value-based that improving think industry So can for carriers in money good do talked there's that space save just looking solutions And them well. big star further a and and consumers growth as can

Okay. so much. Thanks

Your from Singh Crédit comes next Jailendra Suisse. with question

Your open. line is

congratulations other years. was these Yes. wondering, company AEP see factors. Thank experiencing talk I puts in drivers and various and you too the at perspective sustainability strong growth seniors on quarter. future enrollment the future guys growth can a from very some drivers incremental to you industry any XXXX for takes discuss the early about of of if COVID I some but looking other growth and it's you the guidance, the experienced fiscal you and is and a potential know strong during little

Yes.

So I think yet. with respect to not XXXX giving guidance guidance, specific we're

in margins XX% of I XX%, with over the think consistent a can next thought at we look several our the in I we've said basis mid-XXs. margins before a CAGR years the And on above consolidated of think now. of think revenue with least sort process, and business with sort for at that that's Senior and mid-XXs about the

little in We couple a but based on haven't the are quarters, growing of going last updated than that results forward. view we current the bit that, faster

of an in not that terms productivity. sustainable think, don't these agent In on that's of do. think perspective, model we I working from increasing to how things prudent we're We agent some are,

not I model. bigger shown we year maybe continue bigger to harder very we we've some think any do that made that, I become And that's I'll changes sustainable. hand are that to does if do said we been other in Bob, something the push and to productivity. on as think, extent it but necessarily that, he classes, able And some it Having hire think that comments right, to that we've out, that of perspective. year from agent I that to has

would sustainable. agree changes No, that the I we've with that that, are made very

agents' our going more try continue take increase material. optimize -- to ability raw are to We to to

really conservatively, to our Raff of though opportunity flex year. still going group, As model really next results make data But of within see than the productivity of about also do help flex, investments out don't in us in that we still for the excited would dramatically We higher trying which in this and, alluded drive we year. to, increases, an more to to see productivity really our further we core are should core even see again, we increase model increases. but we out

Okay. experience Did marketing if some of talk of wondering or the That's could some you follow-up, particular of about my particularly outperform or profitable with was for respect in leads? recently underperform one terms helpful. I to marketing channels, direct response these marketing during leads some And channels your quarter, challenges of in your peers their channels. TV. flagged

Yes. marketing. COO, Jailendra, make comments over to this and comments specific is brief Bill turn for to Tim. our Grant, I'll some it

instances marketing cost In to Margins bit attractive highly choice where that growth submission than pod marketing, we EBITDA So, of for that some increase quarter. of per leads. in overall saw XX% those say overall, growing this see for very, for from about would half model last our increase faster went a did push little don't down our year model carrier XX% we Senior. margins from come pay you we significantly

other The opportunity. more conscious mix and was cost leaned about into the cost was broader intentionally as part sale kind decision channel per This business growth one the of we was in a that the a than really of on on increase core us trend. half for our

of about three EBITDA express year-over-year; day, revenue and to million to strategy of KPIs And accomplished fourth about AEP Senior of adjusted we at about We dollars senior talked over margins, is year that, EBITDA grew We maintaining Xx. our while did of of at solid the XXX%. we believe end we've -- all EBITDA Rev part as Raff added before attractive margins. growth. think it absolute quarter we $XX north consecutive what Xx revenue grow last highlighted XXX% we the of So north certainly as CAC

we'll provide just to I your intentional some wanted of of question, but turn the Bill? nature So of there. around strategy to our of the kind it specifics Bill maybe to answer over that as backdrop a

would as very I strategy sure. Tim say a our sources. had Yes ramping about more efficient Raff higher-quality Well and I up, we mentioned, mean intentional Yes.

were part going bit more on leaving past more because a marketing We So were could on stuff just thought the years is we exactly the breaking news constant AEP marketing. spend table. amount election the we than to just be different we say would bit what year put this we to knew a that executed the what on. would we some about through of be relative on the our we that had may we thought funnel, which this expected I

days where may we're that proud days understatement. is to did that that. So election good when on have think everyone there really that very But a most source getting we that when down some days. thing were other more or TV, our was biggest where clearance that through are on no make the TV to of feel down approach and about a it pleased of really TV. during be And I with omni-channel put But AEP channels. call I was dies there still able model during us a that that and as lots with when knows, the news would for and the we I specifically dials With highly as we news large by relates little bit, able had kind extremely us I'd I of our still lot normal to and through were particular navigate that an huge about clearance on say, it our that in sources. some certain breaking of time navigate of turn to think could feel being good we're the really would kind the die is say We certainly good we I would we virtually of pressure But TV functional were be. we impact on surprises post-election. feel say And certainly take said, able whatever

yes, say business have versus points challenges because right? can our -- some good competitors work a Bill's We Bill accentuate of of accentuate right. these to there. productivity us. the TV And some and of competitors, from Just our model us make channels LTVs, that. for We because that just you're I in our of can economical to make agent hearing would

like you you ability you of ponds. the feel just we fish essence us is if a This this have Bill's a why omni-channel to can't very because need for multiple point. wide So We will is dependency in in like viable approach on handful the channels.

lot. Thanks Great. a

you. Thank

question comes Capital from Your with Morgan next Markets. Frank RBC

Your line is open.

there. make productivity being in how then mode? improvement of conversion Certainly, Curious, would But you mentioned And question. that in my any the Good actually cash and you think thoughts to That afternoon. expense. when can sort be to there? you generation around and driver over characterize was of attribute key you schedule of sort like final growth nice You cash change see you the what the result? would really a can view things ahead when -- this your first enterprise really flip does over your better

Yes.

talked versus four receiving cash we're a driver where that that of Certainly are that things one-year productivity starting think is a we of Those a more payback our terms of I using other in think of more efficiently, couple definitely expense of about. I product some final So in products. sell big agent plus to drivers.

a we little -- our bit little of items. a basically deals talked about of our come of restructured also carriers We bit, from one to cash sort we it more year some with have

Having efficiency that's definitely that component that so, right? a about are call. our total went for think I And helps. that that, said up to sort quarter and of revenue talked And That another does growing from require we we XX% faster, the standpoint cash just the on materially of so about capital.

bit so efficiently. far, do a And more been to it we've little able

enough the several to in business the think about talked about we that's we've growth necessarily would rates as types think capital raise the that I I of we said years. grow changed next business, don't terms the our expectations. at for think we of

that the of I on some of guidance. provide over As have flow you and expense there, some we of sort our that we'll of fiscal looks budget for final as in and value-based think update we care work guidance and investments 'XX better and the that like we're we'll time around what we assumptions making the a sort perspective as of that

any follow-up, the guess you're guidance. I then obviously, And updating -- your you. Got

what numbers quarter core the ahead next that adding annual be you'll curious, the Thanks. this enrollment Just for season you year into agents year? of of in fourth built your additional this

the terms that In of agents? Or... -- the Or is of number question?

the out guidance with into core the yes. those you the agents updated in called what Yes, is regard opening? growth Like, that built of to

Yes.

out would So, months. several new I spread have won't Each XXX go say I AEP. those and we or but year into year's of feed too going classes next obviously is that hiring classes of will net each. hiring that several be next are sort so I detail, over much to mean that then into

agents. to the year I think of hiring of one And like be will the things much that's 'XX of about we're bit why the of that flex and into one it'll doing core part and get look of fiscal gave how to be we when us the at next so year is, once able gives visibility we little we'll the things that we for class there is course that sooner being a this versus that the reasons hire year guidance that it that one get need flex more we of during the

of add Yes. the you as into I there's core well the care headcount the platform a just of kind around combination add investment I'd additional the if value-based mean -- platform of I'd as just investment right will. future in

of about the things company. I that's think one the

trying So value say I'd client ways we've always around aggressive base. add appropriately to our find what been to to

think expense of opportunities. growing we decent So final pretty new business senior track we a record, both have

portion the model opportunity the we take around to as an if it. we're we've it lot of to of as will a seeing into success a want got reinvest you So conviction

Great quarter. lot. Thanks a

Frank. you, Thank

comes Jefferies. question Styblo David with next from Your

open. is line Your

you tailwind congratulations wanted up for good the as Thanks XXXX X% opportunities as Looks a notice things starting rate along calendar the will for plus. you a Can ask rates to as lines with that there Hi well afternoon. bit question. being I out. opportunities care well. and I there, as like time, alluded probably the CMS next be other about have the mix you earlier of improve LTV about there to the commission going the the little year having into X% point or some talk echo the about year to calendar quarter with a now the over bit on a insurers? little of

Yes.

persistency. So, to the reiterate around comments we've maybe I think the best way of that some describe made is before

persistent -- part That that this little there's XX% a quarter saw we the bit does by the weighted persistency weighted basically reflect flat. quarter average quarter, last rate for has This a lower. been persistency, are that XX-month why average year This of right? which which the most was offset LTVs is

hold model going sort forward, persistency We improving persistency. terms we flat. In don't of of

assume increases obviously rate some we of forward. there have -- are sort and seen rate increases that there's going We

of we So not perspective where that that being -- in a that going sort now. talked just tailwinds sort set we and to But are from we're assume from of some some we've see when productivity long-term else modeling improvements drive LTV we that of do agent about. that would all guidance, equal

down rate harder bit to in then bring with find steadily talk that follow-up like your bit Okay. -- And appreciate -- great a candidates now? about more I little be it just excuse what Is there. looks little a Great. fit unemployment a me would, on the comments Can environment just, hiring getting there you talent? the and was to higher what being the that to remote. country takes uncertainty you're in looking market hire But you that more versus maybe would when now to ago love new bring a across the the few being guys the unemployment with for to profile and more months can as puts offset you because hear looking are in coming

this But in you. our AEP our most is I'll who it effort. I Sure. this and class Good from would over Bill history. up leads is underscore, company a Dave Tim. make few hear recruiting to turn comments successful to

really not We see any we -- do are headwinds there.

associates model, to of step pretty increase in XX% a now associates was over national recruiting over hiring got we've new states. an function big in X,XXX I We AEP. recruited to lift. That a support think our ability -- different move XX of we're year-over-year

You've flex the to heard in about retaining are the testament a past. which of our did actually higher And years percent in we agent than a we're massive agents productivity, model. improvements

So huge we me for who's turn this Bill let see it is driver us, that. responsible a to lot for of growth And but over a tailwinds. really

accelerated us. was how even when mean, that I a I'd -- solution thing couple of say thought more for be COVID We transition, of reality is that by became fast first it was would a that Yes. work-from-home the related the but I is maybe were the the team very year there. to we're to states, for to And all job able executing little all and means that, we that flex think recruiting towns, XX great recruit what on quickly modernize force did a now towns. kind forced

As as long we Internet high-speed have they can them. get

feel So tailwinds in I were better like feel are kind our recruit. of like the -- in way can ago terms of recruiting what terms we there year that than of they we a of breadth

winning to mentioned been what of things recruit that success these and think So folks of kind about states think where of breeds Two, best talk we in easier great terms successful of of of XX make I work good with reach it terms really places one, success I'd to. just national all in can our feel Tim in we've lot been And about those people. and terms say really just easier able us to that do for all that a really. those we to in what from I that out how kind stories I to they've environment think we have number

So are forward. where I think feel about where and be we'll we going we good really

Thanks the Great. for responses.

from with Grosslight Your question Citi. comes Daniel next

Your is open. line

the other Really AEP. pod exchange to for to just this was congrats Hi, will in focus under-indexed guys. It Thanks little great see. taking the my I it question, to like add performance seem I want a years. vis-à-vis and performance the here. on relative does

And force level carrier if change on their So going internal can if the you're of anything pods and that they're agents and usage seeing there. more read into sales at relying the any forward? curious on just we

carriers' in mix If carriers were like year, terms of them we year. In to of conversations volume help our represent productive wouldn't of relationships very those that partners with anything grow. lower terms anything it our of this I its looking mix, doing types to into interest with and especially us. read in this a us they does had

function at I think multiples just a choice platform to of the it's fact our that is market. relative the huge overall growing

of types carriers And at growing by rates. themselves so not our are those

And basically so that dynamic. that's drives what

So terms it's bit add platform a Bob faster. it you've faster year-over-year. was our quite It's I'm types with overall you It discussions even and of want probably sure grew choice just actually been actually in market. that if grew down the than to the not carriers. anything the of not having

about they themselves, than the at in there we're given We carriers growth at absolutely. that for about grow a Yes, year ton you model of a a if don't significantly XX% pace that. think faster growing whereas

with XX% negotiating growth, folks of the that If and a at same with we're because curve contract as those with win range. new carriers year next outsized then year-over-year. may However, that then carrier, you large are have growth steady see not year make one that quite you growing growth larger could depends, constantly see right? new you a It kind the that relationships may a much

some of in parts where and business feel kind as final performance. is flex those to they do in to the two top-performing our final we employees carriers into we other a in us though really continue that give we them thing group, feedback on Medicare push that our our good Where we marketing carriers volume or opportunities Pod the weeks -- feel staff kind the the kind the in way see. we same alluded and our for fairly carriers that the way we partner partner bring employees help lot better The about we see bring by of their we big more So final great with of the see to have really of like week that can we from margin. we and opening are future opportunities a weeks see in if the Tim final the wide

going not those, same do core the but grow be business. grow it's we at pace So that have our opportunities to we to

cash seems kind just collection out that to on one Understood. have the to collection cash you of Very XX%? at conversion. XX% improve helpful. can then And XX%. It from year grow Are year Or been able you guys really higher? like you one in that tapped

-- sell. MA limitations in that there is we are caps on how around biggest structural that versus structured obviously terms are just There's certain where commissions commission specifically the year product of policies there on first certain renewals.

to dollars some us to that necessarily I are of -- things grow or working advertising things is structural efficiency, going some not it's that continue think will go there So max, to said as on revenue, on cash value-based I is improve be that -- XX% know so whether there but other don't limitations some especially that. it's ultimately are of think XX% that we one sort I the that, revenue. that Having we care pay year

it. again. Got Thanks

comes question Your Barclays. next from Jonathan with Yong

open. line is Your

good taking Thanks congrats quarter. question my Hi. on a for and

with That that Just is I know your assumption that fiscal and for line the Thanks. on the volume year. is of you in But on seeing that wondering so you're could the mentioned, relatively was working what color also persistency some your it's far just OEP, if volume volume, is how dynamics? -- persistency to then provide year looking. kind of last I rest going you

the -- several really not than out. does we've to and specifically that provide that around some take into other embedded OEP respect persistency, given. we're sort to renewal give seeing event happened respect With commentary months play guidance we're it with of January OEP in does itself that guess for that in although to I going whatever is updated visibility the us to So any

selling the those for won't March. calculations things on that And average point sort LTV way some be in of will into until we're roll that our really and policies once of to we that's the from of locked know play applied that of so will XX-month that onward. then end into that that weighted is effectively certain And sort

impacted. of sort that's how So it gets

to if of half value-based And you're thinking that the believe going I change that correctly just investments mentioned you make guys Great. that the relatively are back or just doing, economics for then in you've year care you're I you curious the on initiatives small. how there the and remember not? the whether about economics Thanks. were I'm the

the carriers be the prove think the can share we'll we add to value able I that that in value. that we more more to

it relatively revenue there's a small the of coming to enhance going is a think now. so And opportunity lot that's we as those forward But Bob? in percent I that of think do programs.

is impact that what the alluding Yeah. we we The were before direct relatively direct get to economic on are small. payment

economics a higher. And are health different Medicare engaged way XX to journey, is now. are and and consumers want plans tricky, we different that know provide to value space there save do money for and and in with being better us, our the care be bigger the we that transition we the associated think we we literacy within than However, more education. through for data get do then carriers, the our more carriers, both kind consumer, into things more through their savings indirect satisfied rates provide more the journey be better it's that the working up, retention the go carriers the to could value, revenue can increase lots are to their of which and and of in care again to understand on are we're solutions, better of consumers alignment than under more higher a We consumers that we part and help ultimately, health very the the economic adherence that the

associated I there's with is direct the what fact don't BDC sending a money that before So to want we to there. not talking somebody about that, dollars It's solution. understate just were

underscore it got XXX,XXX and that We've every our grow. right month care continues just I'd mentioned. of going that on interactions Yeah. Bob conversations scalability the platform, the to

in So to future. lot this more back the we're we'll is and in be a making investment the of very an share near effort where more market in kind

you. Thank

next question Your comes Stanley. Morgan from Lauren Schenk with

Your line open. is

question. my taking for Thanks

can second investments Just I can. I a model million one, magnitude $X impetus for by of guidance the you the if the high around the would is you million. but you quarter quantify if of XQ mentioned. that end And raised Wondering, the EBITDA $XX your guess, the by question is, be

investments. So just more if million wondering, all that if delta not the $XX is

any would Just really color there helpful. be

is it millions don't the in on level So, to of although specific want the of dollars. investments, I too be

and think reason I the little with quarter, the more think, and a we driver to fourth provided of respect outperformance. the quarter the second sort percent the clarity about bit third of of the the as primary that way is guidance best why the sort a the overall to year of was increase

will like internally and we these little investments. has outside to given of the quarterly we view appropriate of more in sort come that with fourth it respect Our our bit course don't of to year. nothing third quarter the was how the a the during of But changed into felt – that guidance, provide visibility give really

you. Thank Great.

Your & next Bruyette Keefe with Woods. question from Shields Meyer comes

open. line is Your

sort the that volatility? going level negotiation can one Great. to I that Thanks. we assume changes, If the back XX% Is go should the of revenue year forward? to right subject again is base

at that We're drop would that on. expect always we that not wouldn't that have collecting in I it right? know significantly – guarantee to there. And level, ways something are will we'll – is I based place that cash but now, from of we I sooner, it think to on looking expect right what at focused be I it don't that

Okay. Yeah. That's what I was for. looking

in are just think I about the your Second next that year. means in hoping monetizing I talked and what recapture to comments early on that a opportunities what question, can you you was give some leads color AEP. late little

to want you do Bill, that? speak to

Yeah sure. mean And by clarify this I'll that what year. we

spending say, in – to we I based with I marketing spike of had go happening down of might kind be or election. we think on we spending, where some terms TV relative were we up would of what or was how our saw the

So clearance was breaking or and more might more the that – more paralyzed we not the might get not the right respond. be news consumers

is didn't we you last we'd seen. then week. influx thought And enough of what look what happened leads so So generate us huge week occurred, if us take to leads last what kind much that as basically, it breaking on spent based and over push what And the of we would to that had based keep really really week on have busy we through news. at we this

there those last type think kind happened things. well of just think marketing didn't was week. that little I of that the week we to future was which pent-up breaking a of a a So was see our for marketing week where lot because be efficient And level that news our calmer the that demand bodes I same very of

we time overall, occurred expect going are kind what think of good during feel about that we what where I would forward. really we So really there kind of and exactly and

Yeah.

a our get think very We're for AEP. year. management to I make been We're It thing we and fantastic few an proud piggyback the We around next always overly hungry of for that Just really It's better, with if even kind you will were us. was better. a There have about talked great great flushed an end this season. is team. a on – Bill's to ways right? election. better could We're and about comments ways looking anomalies, leads it there's it the humble. towards AEP mean, result being to of absolutely we're AEP But even right, to

Clearly, much. you very understood. Thank

Meyer. you, Thank

to call There the remarks. now back I'll this no further over turn questions at are time. for Tim closing

and you in briefly thank to present how by support we Well, I'll your close results. these are reemphasizing, excited SelectQuote. interest for all again

always own your First, it's outperform expectation. nice to

that made is we bright continue think who long-tailed future to days track opportunity establishing, given about constant focus think fellow our and execution continued off are hats our associates, exciting X,XXX markets the core the the ahead. see Equally the in unique SelectQuote to very happen. our validation over of record we we as We the model. So on

much. We for again you XXXX. Thank all you your great thank you So, very time. a wish

This concludes today's call. conference

may You disconnect. now