SelectQuote (SLQT) 7 May 222022 Q3 Earnings call transcript

Welcome to the SelectQuote's Third 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 third call. to morning

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

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

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

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

and my touch two In morning remarks all for thank on Good topics. Matt. I'll today, Thanks, you joining us.

we how Senior OEP in the saw our encouraging the sequential quarter to business First, and during I'll summarize compared improvement AEP.

lower strategic the we we early last tangible gives to It's Second, significant our call. strategy I'll capitalize X victory, due but improvement our with certainly opportunity, see over on quarter our to in us redesign actions, we growth which best discussed Slide Advantage from confidence that, observed on preliminary update provide on too is the past the returns third on of to let's focused fiscal an value way Medicare quarter. declare distribution. With the start highlights still

number compared indicators. our As across I a as key better AEP OEP noted, of performance Senior in to business performed

driven observed agent Our higher comprehensive rate of core agents earlier rates days, and delivered conversion onboarding training close primarily but seasons. in future early agents Again, higher our plan this to longer tenured hire supports by carry a improvement more mix tenure. and

was Senior The marketing operating business customer optimize highlight to second driven decision our in segmentation improvement a partners refined targeting. significant marketing and our costs, in by and

Additionally, efficiency. better reduce policy agents cost marketing approved our and overall helped rates per conversion by

we even part $XXX are costs of but on us Lastly, on reductions, which with our early cost that million increased and our reduce and steps during We'll those pleased About again greater redesigned developed fixed of flow detail and SelectRx. excluding early comes XX% profitability. total we conviction from cash our provide in give quarter. these actions going as of savings, that emphasis to cost more profitability the forward, our business, path were minute, placing to implemented over a yield plan actions should the are of

I Turning by just summarized. to The better our largely quarter expectations financials. our was actions driven than the

pressure year adjusted on $XX million of was ago, compared compressed because up million, EBITDA Our for revenue year-over-year to primarily $XXX quarter X% a the the our and MA LTVs. totaled

tenfold continued of businesses than and momentum XXth. members of equate SelectRx quarter as Lastly, We their members total by active We ability SelectRx with now active the a to Population members XX,XXX the would Health XXXX. quarter. end April in fiscal the around over That in surpass population XX,XXX and are third remain XX,XXX ended our we confident to acquired to our are revenue very of more demonstrates than increase services the May prescription comprehensive important is business. potential understand XXXX, business and in also just significant in It pharmacy drugs and much our and platform since members broader future to health we the care initiatives the to profitability of our building first health SelectRx. drive

set well as a carriers. in providers with differentiate holistic service policyholders relationships our will Our diverse with continue approach to deepen of care health lead, as partnering SelectQuote and

not While the with we are strategy time new ultimately explicit SelectRx yet providers services Slide sense, of review streams drive revenue and thus an ongoing in and services over beyond profitability. believe boost our X, will relationships significant our these made drivers revenue and diverse customers and deeper had we on detail far. carriers provide to and progress our returns I'd like and On many

have and of increasingly be reiterating our plan upon in in based it's we past fiscal the confident the First, that our a next That transition results. XX become will worth days said, year season early impact XXXX seen remainder for over SelectQuote. we the

organization. left, That the encompasses all profitability believe opportunity for returns. strategy remains and in growth a cash growing as our year-over-year noted submitted And growth our core focused predictability effectively less in can reduce our our risk said, visibility committed pillars operating forecast our long we've are strategy volume. years four or are flow see large we over To on and clear, leads you improving the to As of we At prioritizing of Senior point in XXXX leverage. second a of tailed SelectQuote's is returns future. and candidly policies be our to operational to That which business. here, decline our policy the which right-size initial plus our assumes likely our policies mitigate strategy, are to in XXX% component

but thus Senior focused savings quarter, attractive last produce the a was AEP we believe we have of to business a go As we ensuring bulk environments. from have the way committed long the across refine high even the of come growth our to point, we marketing operational XXXX approach, placing can that the ahead, marketing production returns profitability in these variable strategy efficiency, persist on onboarding planned seasons. In costs. and to on cost million challenging identified we greater unique, the identified of emphasize this will investment in our G&A. At Clearly, allocation. in returns wide said, sales, allows range the initiatives lower a updates season focus we during will are and $XXX better that importantly noted even I Perhaps That capital greater far remain riding a more pullback long-term. want with Medicare and on in agent can quarters you to policy over expect hiring, including will return number potential us cash business

For a example us optimize their anticipate X% our for plan marketing of to approach to and and highest agents to unique the to AEP will their for and to needs. reassess targeting expectations we to agents role And ensuring more LTV on training be The LTV. Recall pullback investment group customers going our new we a last we conservatism more the XX%. next into plan season. the to our busy recruiting, advising fully of us the also important forward. pillar, our focus constraint conservative on our significantly will all sources systems producing lead optimize be continue tools than and If We team. from force and take our next more best AEP make allows XXXX move AEP support onboarding agent more quarter, we prepared by to tenured sources to our allows that training pullback our for the the refine the from increased

each we as in volatility our the incorporated while this persistency that confirm of will bottom, cannot LTV point, key accounting. lower a has the been we LTV addition, takeaway forward been into recent is significantly on reduced. going has cohorts expand Raff but believe In

layering our additional are stages the early we retention-focused in indicators improvements of very early from the by efforts. operational While we we're encouraged AEP, following of still seeing some are in

in sets see observable eventually sources aided and quarter our customer in marketing of persistency conversion the long-term. layering we rates refined and and instance, our more in third customers revised these will optimizations For that the data improvements upon targeting based and believe with more we over

before SelectQuote significant competitive customers, I more Lastly, will providers. board of approach the to update noted creation growing the important and of become provide our our to with and should services partners years in we advisory carriers in the customers, SelectRx stickier our ahead. and advantage a healthcare as to to a relationship believe From SelectRx healthcare we broader differentiated create the services on number

the excited quarters growing We to more these share and ahead. in years are about capabilities

to as impact this providing ongoing season let it want of business the me challenging suggest this AEP in especially, recent to key to trends it be differences of our not as OEP a an Lastly, and of to detail be unique season. track in relates context, we're slide the quarter turn especially observed the as some To new one. past strategy. to know give describe our We to X we can trend, between briefly difficult last the clear, instead but

cost decreased in per saw which First, marketing we year-over-year. a our significant improvement approved XX% policy,

benefits realized to some our competition likely from to and less marketing high optimize noted importantly we work policyholders. more target impact, I As return our had but

quarter season, the start we improvements with to and product recruiting We drive labor and interval rates Next onboarding tune confirmed investments between OEP to the conversion and seasons AEP we fine agents OEP our environment recommendation market we strategy regardless our next of conclusion training in these to training. future during a train to plan onboard impacted can to agent a better more we but productivity our tight our conversion demonstrate seasoned AEP earlier provide sales believe saw the of And and feel XXXX and third engine. leveraged that helped. of additional relative Clearly rate season. and the earlier workforce and the

savings as scale continue identified profitability. and drive to Third, I to sustainable our significant optimize before, already highlighted cost we'll we've platform and

we to encouraged are in SelectRx see Lastly, continue initiatives. broader progress most we the our by population health and

by our quarters. forward momentum our play and That comprehensive coming ended the XX,XXX platform health pleased the We are services customer with in members. sharing expectation biggest we as forward active our we in me shareholders said, conviction with while a quarter business and to far SelectRx insurance value evolve greater growing summarize results. strong a of health continue look needs. come range prepared our growth progress over to from my from work call our the a proposition overall our over April Raff company in distributor our the our To remarks, from to in will finished, can far for addressing conclude With to to We have that, that noting, the review value customers more I'll believe including future. let growth benefit continued differentiated we is the the to generate financial care pure Raff? turn demonstrated

Thanks Tim.

and six slide to results. Turning our consolidated

During million. growth the some can $XX a we term on make that premium by discuss our policies while Consolidated somewhat margins driven of third the conversion last was believe close quarter in started by And business, say continued the $XXX early we going business compressed, result been of meaningful which offset our agents COVID and on quarter, especially certainly we benefits, driven to in-force the fewer and pressure will revenue business, a that was marketing of was did this for and consolidated see have we life sold which was impact call, the we Life our rates. there have will policies. positive efficiency Revenue EBITDA in are Senior earnings later, of to lower the reduction distribution forward. business around million changes senior by adjusted

Our Home Auto year-over-year. & was revenue flat

the operating per decrease investment see impacted did we're revenue and approved EBITDA health offset negatively we per specifically, significant making more year-over-year. down That, XX% savings. in population to XX% in improvement the SelectRx, grow policy the expense in our business, unit expenses While plus than adjusted MA year-over-year, senior distribution

During the cut action business. to and quarter, of variable certain costs fixed we took out the

fiscal and for lower expecting these result our will costs expect are $XXX over we lower actions a production we operating than fiscal year. as SelectRx, be overall million XXXX the next of Excluding policy XXXX

With later. We now progress which significant made in that, on results will Senior SelectRx our scaling for quarter. I also the operating touch get me let also into

force term loss increased identified and continued policies close close saw better provisions, was LTVs quarter. of we Turning multiple about initiatives these agents policy our did for address of down the of first of a growth some rates constraints. to implemented end significant we the marketing during during seven, were to relative and less persistency grew higher trends relative XX% driven to total higher improvements year-over-year. we AEP. policies as was year-over-year and result spoke The the this MA year have in MA some flex and persistency, the agent training environment, the done We We've XX%. optimization agent. intra-year of of see lower by policies driven and rates slide factors first the sources, lapse towards our and quarter, we this we competitive AEP. reversal and the rates approved biggest marketing the provision opportunities saw with more to quarter. ,especially sold MA We a continue pressure saw by of pressure trend was the to our last think benefits our approved This We

we a positive of the to can While tell on will actions lapses impact expect early these remainder impact, OEP weigh of the rates believe higher is year. lapse during we for intra-year have the it and too

the in original three, years sold but are year in in and higher our we expectations. beyond, lapses concentrated than seeing improvements overall year-over-year, For and second policies still modest two intra-year

on moving to costs. Now operating

has that operating may significant While apparent it made of be profitability, lower not efficiently. on the we because impact LTV more progress on

quarter, excluding $XXX for the across around down adjustment quarter. SelectRx, about improvement to costs relative that by Our and per much in I funnel formally XX%. some $XXX. marketing respect adjustment per was lower driven driven we year's to majority our fourth don't unit rates, to and were take cohort The that any or business, marketing With for was Health which sale whole XX% calculation this to lead described last cost currently around lower we by number improvement actions of when including of were renewals distribution higher operating year-over-year negative we cost expect the above. the by conversion down this Population more driven the took recalculate the efficient further This

on to eight, the we've we progress me SelectRx our slide Now, turn if business. update significant pharmacy made let provide an growing

ended pharmacy numbers. We high of continue see quarter offer. we the our nearly demand second the to services level with consumer and interest X,XXX We for

now new This any We fiscal entirely with. incremental a without customers our we XX,XXX from end million can forecast the impact base XXXX. incremental over of almost and year in confident predictable $XXX demand remain over XX members acquisition this cost year equate new even our and fiscal started flow overall exceeded the active of net exit with numbers excited of was and rate SelectRx members. As existing XXXX of with company. of the to have we times what generated fiscal April, Medicare business have adding enrollments XX,XXX That revenue over about to number the we would SelectQuote this Advantage run in positive remain low at results on to cash very

our Now, update to provide we if position. slide me move an capital let nine, on

from the second first-tier the commissions. the always for cash have and we all Although marketing during with quarter third collecting of sales expenses biggest costs cash is as in agent activity. start operating use our associated quarter quarter, of AEP the Beginning AEP, we commissions

million operations. approximately generated the For from quarter, $XX we of cash

$X we addition, approximately of In for cash used million CapEx.

XXXX, of $XXX the with million million ended cash debt. $XXX XX, March of As quarter of we and

the quarter accounts term receivable and ended commission’s receivable $X billion long of balances. We with and also short

for our back like to turn operator guidance to your I the for I'd 'XX. fiscal the questions, call on comment our before Finally,

get we have the in positive quarter results expect will noted progress said, meaningfully quarter. your are this with by call. for encouraged trends and the third share be fiscal not our and our specific do initial more We are you As earlier, quarter. made next and we to the we updating point guidance third to we fiscal at the that, plan relative questions. Similarly, XXXX fourth earnings instead on That our not let's the differ to year to on focused With beyond. Operator? quarter's our views 'XX

of question from line [Operator Grosslight the comes with instructions] Your Citi. Daniel first

Hi, because that really stick guys. particularly to Thanks for the income, items want of And I pretty outperformance and you quarter. came this just did on on on question. through. that significantly guidance, senior the taking net reiteration segment, EBITDA in outperform line two those really

benefit can time any kind the for of for reiteration EBITDA of curious, pretty of cadence the EBITDA. was guidance there profitability a And implies walk not XQ third repeat? So quarter I'm just XQ to and that's us to going decline, that you one in through steep senior

Yeah, obviously as much to our performance revised by on for more encouraged the on maybe call. we're fourth to I'll the the fiscal and certainly of focused quite take that expectations. quarter, the which one. plan share We beyond, business we 'XX decided plan the earnings third relative We're leave our developing quarter to unchanged in frankly, guidance

I saw think far not unchanged fourth benefits of sort quarter about in meaningfully clear the quarter so the very the in it's be seeing there important, trends that third different not the guidance very, a the that we're are third in signal quarter though, no leaving that is the than onetime quarter. performance, to what were we and fourth

than wouldn't that I being conservative. So into just read more

Understood.

encouraging very Okay. And in then marketing. trends

agents channels? marketing to a away less your Medicare will Are rules marketing to scripts perhaps are even about And What marketing with and you CMS areas, pretty the for is stock for I how related direct direct speak your leads, and new prescriptive that some next productive shifting for good, you're on language these dig impact more. particularly thinking with new at members, mentioned productivity optimizing to if can marketing other, of TV, you Curious, competition curious, mailers channels? some have also seem certain to might 'XX that the beginning out some point more in little how year. from which call. channels. how that, You was that came but productive those rules of to latter fiscal

relates we is benefit I'd number OEP. take saw had of speak, number and say so agents, a of I'll were to in areas during of the this to it we One, terms Certainly, of fewer that. we so, feed, that delivering. mouse a we as Yeah, kind Bill, in had to marketing,

with look not buying. of Within around, or it cut a Are does really. that our like wide we we opening gives science our kind ability, data sets it saw in We team we marketing We and were as were funnel. channels a buying, these take at goodness that No, would new optimizing team able cutting And us there's amount learning, optimize data in not? what that to job look of what degrees varying more So channel. data we to so really we in of a great remarks, the AEP, funnel. had we marketing what sets and say team I AEP. and during what a unique new were Tim was when right, so within to the to and and a layering to our were mean? And out able lot mentioned very still channels, we layer might those optimize want did question working we we your at

channel be be through good and channel the can funnel. let XX% only good. we let may another we XX% one is is So there the then where and ultimately, through there And that may funnel can we

they to convert which things of Tim a made comment retraining, also regards with material. marketing last along those to that And agents on a to on benefits with able year's our our job things making those about to did the of this really the earlier, again, with think spoke up just sites place. a of And team in in sure layered that did marketing the plans getting some I really data we themselves and the So, lot we benefits, significant being difference speed things. good raw in were

things, in lot for online changes the around As like of the really scripts. of in CMS it in they been to going that and we of within the pertains more you very would prepared best our agnostic plans, the are always well feel And do which always in things we we've see to us to already marketing the a that go terms consumer. the we're things commission terms the order presentations present plan which are for that

no well that that effect and really on there prepared front. we So we're see

guys. Thank Got Appreciate you color. it. the

question with next Garro comes of from the Piper Sandler. Your Jeff line

XXXX. Yeah, magnitude that pullback the the questions. months good morning about in and to the ask influence factors thanks of planned pullback submissions for for FY the of want over signaled? taking will MA that you've are next I What couple the

really the Yeah, of a morning, we're I is and to we made Obviously, yeah Tim. making that on progress optimize. conditions Jeff, pull-back Good in the we're current sense definitely think this think market and bit front. with operational pleased light the it's

this the higher agents. We for a August. We percentage Really work to more lot on moving historically in look from guide get the of next I benefits to drive much going doing think lot think on good that, a retraining. is really flex into forward early the come some good higher are year we We're side us with marketing specifics as we're EBITDA segmentation sales fiscal that what lot done carrier we opposed side. a XXXX we provided prepared there's breakeven a to providing to with agents of a core on tenured doing signs a on with good the and to respect on percentage seeing remarks, work natural cash we're of optimization around in of more that highlighted of forward.

breaks the P&L? line little a for expense different items bit and in more maybe your follow-up little that might $XXX million detail $XXX down more it. the how Got in helpful be Thanks on to for across ask give if could a million reductions us that you

it some sense total. start -- variable we Yeah, just That's biggest and a fiscal economics I run want which flow part of unit marketing the investments I detail. on? also cost Those both rate quarter. about million costs. makes cash really of and are about and driver, savings in fixed million on that fourth SelectRx, to additional we'd necessary generative. as cost focus our sales did fiscal Raff, excluding in Yeah, as this you going think very yeah But going move that pull-back to XXXX early of leads maybe we is attention of mentioned $XXX some We're that our people Raff to total expenses I'll provide anything cash benefits $XXX to notice if you we're our identify $XX will. million double-click start to realize in as

I biggest marketing of side, and so fixed headcount is to of that probably savings the to the Yeah, on going fulfillment cost. the part more reiterate followed two-third guess or then by just be savings agent

Thanks helps. That again. Great.

Jeff. Thanks

Suisse. line Credit the Yong from Jonathan with comes question of next Your

the also thanks Hey, talked sales much spend where pullback MCOs marketing the there to up too question. taking bulking as exceeding concerns the marketing may market pullback have any force? own that may I in share my that are some internal of about you and for their in up be just guess capacity relation about, end actually talking you're

first to speak is Jonathan and ask Bill maybe comment. Tim. I'll then Yeah, this

carrier of scenario, business to policy of continue three-year of north I think XX%. we're CAGR, that's in part distribution. a is to a critical This going growth and very historically any be significant

to pull-back to we industry. player be going it's if the very anyone even in almost So relative a significant

remain I and model. aligned of their there, committed to direct-to-consumer. significant been We're We of no our SelectQuote to see in with momentum with They our to seeing commitment know continue that to changes expand certainly there's continue looking industry not chatter carriers. to strongly frankly about any still amount high-quality pull-back. very compensation, the quite

think shape you'd good in Bob, anything there. comment like I we're on? So very to

looks had good the all that really to to now well said, doing no we overall carriers Right really a that policies of are decline understand in policies, about submissions and of and quality not we it's think the was that really effective a put I with are number conversations the our -- I of that. the persistency with decline what overall a things not the as in the quality, approved there. in like we've of are bolster and could concerned sorry focus about -- think obviously the that on -- simply supportive No, come big XX% of extremely carriers of number of

then And going channels. everyone there the is up talked spend their thus Any CAC. specific to spend to to Okay. thoughts marketing then terms may inflating that in letting everyone marketing concern return have that -- believe just I a of end the specific again, about guess to be and there? optimizing a channel and highest they

we're at not hey, TV more, when kind But not of hey, were what to let if a single the I think like on I'd number narrowing with saying, that tighten us we're really we're because let's okay, through actually eliminating eliminating those. solely other concerned be we're we well-positioned about to be able to expand channel we some or for to deal that source. approach we're the ultimately with our of look top, it funnel. channels you but rely our one is saying, going of we're attitude let's the down

a take. So, a lot, tight and we'll extremely we'll we've algorithms of buy consume about amount. will specific certain what but we've very only what we'll We're on our layered really ultimately in look kind of terms got what now an on at

with remaining a will XX% a we what winning take using of approach. that the the channel certain buy X% on maybe think of only certainly kind decide and kind that's open or be quality of coming kind we'll So, data of depending we by through. in to channel But

Thanks. Great.

Shields [Operator next from of Instructions] comes the line Your with question Meyer KBW.

our guys. here. taking is morning, on questions good McJoynt This for Meyer. Thanks Hey, Tommy for

in is want just is Just meant the third And of terms of is $XX that or to is that it those XX% actioned the in of XX% $XXX on fixed then, million to of implies XX% million, that identified quarter? costs say of are fixed? kind takeout or that and clarify already marketing the variable the

question. Yeah, no great

marketing, expecting the there year XX% as agent corresponding cost that So, piece we're pullback is next variable of and reduction biggest production the is year-over-year then policy and based obviously fulfillment on just that well. but there's for

quarter things the mix variable, biggest on it's side, fix. those starting then, actions piece reflected necessarily savings. in of some drive we quarter. not then the in the this of vast fixed cost And fixed a sorry. marketing of full on those took results, So, the but to quarter third being the yes, majority reflected is start the but And the all They're will

about Great, then for over, And as expected could does continues you how And economics talk increase that. of to that improve SelectRx time? grow? with those in spend scale the benefits the clarifying switching over thanks just

start there. I'll Yeah,

we're think in pleased SelectRx. with I progress the very

think potential becoming more the confident the and I we're of about more business.

we As confident stated, the very very XXXX, ability exceed end our original by period to a paying members of about goal increase short We're members. in XX,XXX the fiscal XX,XXX of time. active of tenfold

potential scale want very really services. healthcare the I business? things to Bob, speak to other of a and you tangible way demonstrates we in have think around the it do metrics

for more dollars some traditional plan delivery right? that I'd like that's SaaS You is growth, business, kind say, just go because growth to a or Yeah, of, have into there that the ahead.

but payback payback I'll and look to what that the quickly business it, speak to customer like? a stable ultimately those do want and look but percentage period then margins comment through of is life still expand to lower those it's cash-efficient to pretty Raff, place. gets got you it pretty it's fast. scaling, when and margins you're as the a then on Raff at margins is, you an what more So, extremely let your point

positive I certainly member year. still be Yeah, to within expect flow new guess cash first we a the

As a customers. we represent new the added new medium-term. margins the over new and are of a in costs and business of the towards smaller of book business drug time weighs obviously onboarding overall membership are or as outside percent scaling on most cost geared overall as that the members grows really-- the short, very of the members base, large But, percent

over the down increase time, percent margins that from as will so, goes And there. new of

margin We to expect as continue also we get to scale business. the scale some benefits drug

taking for the Great. questions. Thanks

line of comes open. Your Jim, next Factset. with your question is from Jim Maseka [ph] the line

business actually for the little business weak Apologies in that in Maybe in XQ? kind that. that there a quarter, just after about then, anything you just that? Life is from Was Elizabeth quarter. on Evercore. was the And in And This EBITDA Anderson particular it the Hi. about Life thinking bit for caused of how a quick that? bit Joe follow-up a are asking then

that Yeah, touch first. maybe I'll on

expectations sort life by, term So business that actually is the is of the business driven consistent part with during predominantly of, which our legacy Life quarter.

The a quarter third quarter is seasonally strong sales. for

So quarter we drive costs in specifically that revenue. fourth third and the have quarter marketing

we second quarter. of quarter of the conversion the Omicron of three-month in-force impacted It of, the third quarter upfront had compounded was our in revenue, that the policy sort terms given rates. And quarter agent impacted third that pressures lag revenue with during between rise hence, continued year-over-year invoice In less quarter. the the selling and COVID and the third profitability early our also by sale

were impacted think and delays. that. carriers processing I -- had had by some issues examiner visits that We staffing So had examiners the those of paramedic also

of see the within third would those we then benefit some the the see season of did improve end Bill fourth of to start that? quarter. quarter seasonal selling the towards the, the that the add to sort And quarter. anything in you'll you pressures So of,

Term fairly ARF carriers exams, our business And were call is when have people's in which you of I'd you I the taking in and delays -- And along basically No, what staffing lot getting has people that of of lots reluctant very you right CRI that just two-fold which to processing some a moving major kind a issues delayed. the was look existed I COVID actually beyond with funnel Life in in labor then would that kind our say tough we mean, the that. had homes significantly. cancellations at of of certainly reemphasize, the impacted say

those what we of seeing back of up the that feel out that the with as like -- where COVID moved can at how of tunnel on pretty funnel. to were We feels kind positive like optimistic with signs are we're decline end light kind and get we very getting are of we the with some traditionally kind of the business through

then follow-up. as within that. strong conversion helpful. just for That's And Senior. maybe a rate quick you the super Obviously Thank was

life I those think the within there in agents some tenured within were try the of some more more Senior different of between had have to divisions within been a kind any tenured those over element to trend dynamics potentially of knowing agents Was maybe flex the business. life happening traditional there period? shifting

the cut tenured no group really was but the kind we're steep really flex percentage not agents. optimizing retraining deliver we question, of agent of more good then the the of about just that a ultimately also. to talking lower way performing And due No, was shifting to flex

look drive more kind cost because pressure you actually of lower-performing the we that our and did for volume productivity of to down some acquisitions with year-over-year that's CPA decline of things lead did which through agents our our in mildly down. given If economic we limit were large like the

So really, that on means true we that results also the in QX. the what that with -- like pleased looks there that had future what on of kind really came paper pleased in with what for as

due strong really about what can we flexing. with was So do but not I that that to feel

the Well, Awesome. on quarter. Congrats thank you.

you. Thank

Danker That concludes now I turn call remarks. the our question-and-answer over session. closing for to will back Tim

really us proud recap. the We're joining all you of thank results Yeah, for strategy the morning update. to of early this again

the the momentum certainly notably sequential seen I have most we've we in improvements SelectRx. think OEP, in

to much. next. about encouraged course the forward taking. very As I Have noted, results we're very But of of you by transition we're thank the year this we'll to We it's over early quarters great more the in progress what sharing ahead our look actions and overall continue day. the like a

This you conference Thank concludes participating. call. today's for

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