SelectQuote (SLQT) 13 Sep 232023 Q4 Earnings call transcript

Hello, and welcome to SelectQuote’s Fiscal Fourth Quarter and Full Year 2023 Earnings Call. My name is Elliot and I'll be coordinating your call today. [Operator Instructions] It is now my pleasure to introduce Matt Gunter, SelectQuote Investor Relations. Mr. Gunter, you may begin the conference.

morning, good and you everyone. Thank fiscal Welcome XXXX and year quarter call. to SelectQuote's earnings full fourth

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

Joining Tim Financial Chief Clement. Danker, the Officer, I our have company, from and me Chief Officer, Executive Ryan

Ryan's comments today, we a have session. and will question-and-answer Tim Following

we on will measures comparable the discussing financial of Slide financial X, release The referenced measures non-GAAP reconciliation are call, measures. this As our website. earnings non-GAAP be and during a financial GAAP in and between some presentation most investor GAAP our available the directly differences and on

certain be not including concerning beliefs involve and reminder today made a made uncertainties are statements number a company forward-looking risks, those These events upon finally, management's but expectations may based of therefore limited impacting to, the And that described current in XX-K expressed statements. future could and statements our June for of Therefore, statements. or company our condition actual filings from other materially results the on in the the with financial Form report XXXX, and ended of XX, the period or operations release, implied differ those annual earnings forward-looking SEC. and

Tim? with turn like our the Danker. to Officer, that, Tim I'd Chief And call over Executive to

very to consistent years quarters our conviction in strong flow more we but caps Medicare ways all profit a today. Today, yet demonstrate redesign our and market-leading the has which us We're share joining and quarter, Thank that that diversified a will for solidified cash very to, built in for our detail competitive you we strong Advantage, pleased position SelectQuote ahead. a drive has will platform SelectQuote. year strategic again, the importantly,

accomplished in We'll This rapidly over now a revenue, a was review $XXX impressive time. business totaling million. over with have SelectRx, we two grown years' incredible where with trajectory our success also profitable annual little

unique the adds create our Beyond businesses even stakeholders healthcare we're SelectQuote's full and value ability to this ecosystem. platform to review and healthcare how the the to in results of additional spectrum comprehensive given financial within business, information advantage more excited services,

to turn the X, recap quarter. we let If me Slide

outperformed improved As of again. million great negative and to given high of results This SelectQuote profitability by a The our what consecutive reduce each internal noted, produced strategy and quarter given quarter. slower callout outperformance, sixth year. $X revenue driven seasonally volatility quarter yet of EBITDA our investment Fourth stated of represents forecast the the adjusted result the important execution $XXX an businesses. here million is our a our is in across of is throughout

year over which to been really in positions for Additionally, early, the us XXXX. as the well XXXX invest us upcoming season, able we've well the strength for worked

agents similar the our year, and higher Specifically, past new agents. tenured already are we to hired are mix ramping, a and of expect

XQ. Healthcare Services performed well in also

the and year. planned, we accomplished to have SelectRx exiting EBITDA slowed to we're our drive profitability, proud positive member accelerate As purposely growth goal contribution a to

of was to in flow and case Lastly, point certainly our priority is drive XQ. a in cash XXXX again the pride

well Specifically, year, we've the we ramp the investments made million for as of ahead season, includes EBITDA SelectRx. generated which upcoming $XX of for as cash the

fiscal have fact, SelectRx, cash XXXX. driven positive SelectQuote would In the ramp excluding in operating for flow

We for costs lower given the also of policy. operating our materially improved business, the efficiency significantly cash

SelectQuote to LTVs. done season despite everyone like be lower yet, to ahead. years over to MA proud We work prior MA of We hard Our very strong that on a compares ‘XX as about payback the period policy in success. board just XXXX. a in confident delivered fiscal in the start and aren't the periods a drove Overall, feel cash look lot new to favorably position our two for XXXX. I'd across of personally certainly the thank but we organization clearly

outperformance Slide revenue of of just and like the to ‘XX scale flip company million. which X $XX Let's where I'd billion in of context on over to $X give generated adjusted fiscal SelectQuote’s briefly EBITDA the

During our for we'd business XXXX four how beyond. fiscal operate call, year-end earnings presented the guiding we during and ‘XX principles

First, disciplined cash on policy flow. margins production with and a focus

leverage. operating reduced Second,

fiscal and we of volatility finally, Third, proud executed leveraging the these say Healthcare on on principles reduced resulted the scale each the you results. see in strong to page. financial of during We're SelectRx And XXXX, our which of results Services.

of goal which is The approved well expectation our Senior Beginning improved you for of to which decline. on original business. declined in driven XX% the a including specific to quality policy. carried the XXXX, the year-over-year, will production per with for outperformance important MA the marketing XX% financial volume ahead agent policy and costs left, KPIs, most it's a remember operating our rates, that slowed recall In across improve growth we reason XX% by efficiency core to close important our to policy was our

Senior aggregate, focused driven targeting, which policy effective full-year In and XXXX improvement margin by XX%, policyholder EBITDA and overall an broad-based OEP adjusted AEP in was our and for strong is season. more throughput,

sake. range paired we is growing revenue information continue advantage in durable, our performance will build of The As leverage to how than and Medicare apart year and SelectRx, to believe XX%-plus as generate our for a is core model also to is volume other we we we believe margins durability the Senior well build EBITDA SelectQuote and platform our growth's believe a wide Ryan with seasons. our model technology sets can has critical information. and that to Advantage Services' the operational underscores SelectQuote XXXX in our of and outlook, detail the unique yet, agent partner tenured rather distribution high-quality positioned Better Healthcare of our we Ultimately, simply drive streams. SelectQuote power improvement

SelectRx approaching all our strategy as members more SelectRx 'XX and In XX,XXX few and the from fiscal insurance lines of to came by nearly next various our members. of membership incremental the business. marketing expense minimal grew exited slides. healthcare incurred power on our services This XXXX, of nearly SelectRx the of funnel growth I'll members marketing speak XX,XXX

Lastly, of metric relative the sixth a grow. to expectations is determined we're execution consecutive quarters to

challenging the but that you is and due redesign, continue the know, success performance. to confidence through XXXX to will year, a us in SelectQuote consistency As our earn strategic credibility gives market

in me guide time in last context results. our the full-year we Now, The show actual our In if original outperformance the year. magnitude our XXXX bars our show contrast, shift when we of to let this provide in XXXX. bars gray full-year expectations right, to provided orange the

exceeded original to by our Our of midpoint over year. production revenue the XX% guide end the

These generated the to well $XX in high deliver Additionally, conviction continue in an EBITDA our operating that on adjusted as margin surpassed cash-efficient expectation breakeven of a overall into the working significantly and which the of was represents increasingly we've all year are company model model. million give adjusted X%, us delivered an to the EBITDA, attractive through to level made cash-generative changes our returns future. to results and position SelectQuote

X. Flipping to Slide

investors. about as the evolution additional the me from we're asked increasingly SelectRx to context give business our of Let

over wide In Today, in we what of Here, and smaller time we've operations to trajectory membership two see of XX platform better proposition approximately nearly achieve time. a our use patient value built prescriptions. as XXXX, pharmacy and doubled X,XXX revenue members is past for is sophisticated a SelectRx range adherence. seniors cases and the can short have with very to with just and acquired member you importantly, to nearly growth The easy-to-use year. save quarters just of XX,XXX a period members and, the medication clear grown in the

the has talking Xx. accreditation, our the we and expect to Best ultimately, to years Given XXXX, uniquely for the to rapidly efficient an bottom-line majority more growing improved the upon recently the come. can with from come year. both Senior onboarding Patient-Centered hit and top business, year with well-positioned today impact importantly, has this of the over quality Medicare member the of our all, customers, alongside increasingly level about Home does service recognized have America's at Pharmacy a vast our is which critical you powerful has ratio, brought business and we become finished endorsement but had been growth revenue membership see growth which our of Most past existing We the over mass, business seniors to significantly this leverage drive we look forward to to model. to platform business bear in CAC

approach give for quick capitalize home. a Slide we our SelectQuote on how when Healthcare market refresh positioned two turn this key drive to is If takeaways Services are to opportunity. from There uniquely on and let this X, page to me to

seniors where it's tremendously the United each First, larger the of that are larger a a market in percentage and States population large becoming is day. healthcare obvious

that care, in favor way are seniors of we've services rapidly carrier to American level providers provide and of the At information level, to outcomes. treated healthcare for a high the our us facilitator of to between model stakeholders. SelectQuote's and amount technology, unique the for made with businesses, the a afford of tissue each or that that tailored shifting that health managed individual. in Additionally, to providing substantial that organizations means these agent-led required. across investments underwrite are order In be a of is by caretaker combined is the each connective care service ability

of amount of that about As provides the connection value the of in there's tremendous SelectQuote participants a each we've in these brokering within healthcare. talked past,

the the of about higher already value what We our Healthcare can SelectRx. know What will these we million match provide and better we Senior Services a a market do we'll future, but the create our will than Put is profitability not businesses seniors healthcare fit. reflection drive provide of exist. at we consistent business and of are to core to to and in plan create The on stick our additional Americans instead, to leveraging for to we is markets more and how deliver to the and scale. markets, best XX. broad bespoke of solutions cash we've expect carrier value for intend flow. knowing platform the less-efficient the stakeholders. needs in services share that platform that services when an existing to another leverage Our a demand strategies share policyholder the today given built we we by the differentiated create similar capitalize aim over way, built value SelectRx XX opportunity example In is age we for both

takeaway quality we if just the at one second ecosystem. value party scale or because each comments our our healthcare the wins within only service. belief SelectQuote in deliver that each core is to Services The business, to Senior approach benefits participant about, Similar we our the is to more we services we that foundational something in any it's business the other Clearly, provide to other. on opposed future. provide SelectQuote the Healthcare sharing firm look opportunity of every value my as in to and healthcare we this the about excited And to pursue and forward we're

to X, remarks strides to value cash regard turn Slide we've now I'd we If creation. the like with and long-term made end to my efficiency on

talked main about, two in prioritized strategic we've SelectQuote's As redesign improvement categories. flow cash in

First, conversion. each Life, improved significant turn our of to cash made & from businesses operating Home efficiency, core in Auto which improvements and in have our Senior, has

policy our in and core significant with tenured set cash our targets decision benefit in agents in to of to refined more lead in a has instance, EBITDA, driven slow our XXXX. line For shift generation Senior, a

As the were page, materially the and you better adjusted of EBITDA EBITDA cash see year-over-year. our at both can top

about, XX% agent in by XX% was our improvements cost own close more compared strong spoken Similarly, but execution. per our XXXX, policy was metrics approved our higher down ago. were a season, year a by we've these than XXXX. in As so to rate aided In marketing

XXXX, LTV don't two that Lastly, year in while practice, we perspectives. note we forecast increases contextualize improvement a fiscal and the LTV would stabilized as we from can over

starting we own First, policyholder improved have a undertook result, And our early in underwriting. as significantly our persistency. a rigorous overhaul of observed XXXX, we

quality as past seasons the partners has to a carrier existed our in volume, quality like result, partners exhibit a more flight have and as competitive that become carriers their of pressure and eased SelectQuote. discerning Second,

mix the way The as second well as through with we partner the our way is carriers. businesses we're improving cash flow that of

These revenue, benefit Healthcare believe their seasonality business our additional and cash of also upfront Services & become dampen the SelectRx business and Medicare the of profit Advantage we nature our conversion, that cash but businesses. Life terms streams opportunities given compared the flow to business. of business, has in and generates strong and SelectQuote year-round First, a more given our Auto Home mix,

Second, year policy continues in focused up revenues of one This to was distribution on percentage high-quality XXXX, as the in XX% received where year partners Medicare can volume. prior. Advantage working evolve the evident with that XX%, carriers are from increased generate

carriers Advantage is may on In like share lead improve best move seasons to very structures, which to market partners Medicare distribution the SelectQuote ahead, and partners overall we towards believe to well commission both take better better we high-quality SelectQuote will LTVs. or In without to timing believe taking expect the positioned risk. continue cases, marginal earn

With that, let Ryan? to over turn the Ryan strong our results. detail call me to financial

Tim. let's our results. a consolidated and take Thanks, turn at If fourth fiscal X, year look we Slide to quarter XXXX

a the for result is and efficiency in Senior successful on in SelectRx, better-than-expected as a year. business. result quarter Tim As by Year-over-year, of but growth respectively. strategic execution also very year, our a XX% and core revenues strong great This summarized, the XX% had increased our driven we quarter and by redesign,

improvement More made importantly, a in significant we profitability.

EBITDA mentioned, full our expectations, materially within year As Senior. driven improvement the cost by $XX efficiency Tim original above our ended adjusted million our in predominantly of

results, approached as strong was our encouraging Equally breakeven. adjusted where improvement EBITDA fourth in quarter the

our historically As a our for seasonally and year-round quarter quarter been light overarching fourth business, but business. of ramp SelectQuote the you know, made the more strategy has have a SelectRx

review we wrote compared ago. distribution indicators XXX,XXX business. our was X% performance let's quarter, a If which down Advantage senior policies, to In to key Slide the Medicare move X, year the we for

mix compared total of a to original Again, our XXXX. materially strategy (ph) XX% better expectation and Medicare Tim For decline, efficiency tenured our this the as than mentioned, cost XX% fiscal of XXX,XXX] and production the was to by was policy our lower to XX% up of [account higher year, better agents leads. we target Advantage employ picked driven through gains a to

make in to down the page, lifetime for stabilization to trends the seeing X% LTVs continued the Moving just and clearly Medicare stabilize, to right we of the LTVs but for that the improvements quarter speak values. are that these the in minute, a I'll up factors Advantage policies build year. and up

by another $XXX our our better of largely full in fact, our In expectation. LTV look original driven the year-over-year the were methodology. than way, declines was year three-year Put back

XX. Turning to Slide

Let for me efficiency speak to business realized XXXX. we in our core the fiscal gains Senior

profitability. each unit our platform of key As picked up we improvement have make Medicare reported components our significant all that Advantage year, the up in economics and

drove also agent lion's close tenured the was close our both targeting and season. the our expense agent primarily approved these First, at per more by we on looking remember declined our per by driven policy while the of dropped marketing invested marketing employed lead one-third. to overall by XX% see it you efficiency. our improvement reduction XX%, the in rates two count, improvement rates policy, The in right significant operating the aided is in past refined by expense marketing this see on which important you metrics, When that can share

a all our representation strategy new great together, Put of these in metrics action. are

set fewer write paramount with XXXX. serve policies us gains sacrificing and we strategy efficiency to our significantly fiscal echo congratulations I'd out cash-efficient growth. drive our Medicare to agents leads, allowed higher well and how we Advantage we to quality profitable goal in the for simply realized customers teams more our While to executed Tim's originally without

like of I'd expand metrics to segment our the LTVs. underlying results, Before turn to our I financial on some

stabilization improvements we also the of persistency we noted, saw but certainly customers. As mix I policyholder over and in saw XXXX,

our mix improve compared The lead XX-day due ago. gains persistency, of which higher the for targeting agents. tenured a to and and rates, our were continued active policyholder up these of change majority indicator were in to are to Our primary year

we of highly has which as last For efficiency. mix instance, well would persistency declined meaningfully our overall better compared consider to customers transactional what season, drove increased as

our result, season XXXX a over year in As the ago. a were rates approval up

results to in turn now see can very Let's segment. how XX, strong Slide improvements to led efficiency these where all the Senior you

grew year, XX% and respectively. revenue quarter for XX% the Our and

of did fiscal year-over-year in to we taken have written. policies year, improvement in in The our a we given cohort which despite adjustment the de-risk XXXX, taken the was grew XXXX sizable the the primary steps For recur decline not year-over-year receivables. driver

most results regard. in are strong, While on we profitability were the successful that was and very focused revenue XXXX

adjusted well XX% expectations we As quarter investment delivered the which the margin. highest strong the Tim quarter, million by our mentioned, This which EBITDA a is consolidated year. above for $XX for EBITDA fourth quarter fourth of of was produced Senior, at driven

we million drove a fiscal of cohort full million in accounting for year EBITDA adjusted a $XXX year margin about year, in On on adjustments XX%, the basis of Senior better $XXX 'XX. when at

all of Senior of and how margins margins range the these have selling a XX% is in also detailed future have current believe Medicare importantly, improvements Most environments. durable our industry. we strategy We EBITDA for drove in drive that XXXX can season operational firmly the noted Advantage strong above a

If business. can that flip to XX, growth about scale Tim we for see and SelectRx talked the our strong Slide you

membership quarter, the with. which began approached of year double is the XX,XXX of we Our as end the what effectively

were by time. For on we has XXX%, growth revenues as year-over-year, effect mature impact driving compounding up membership members to quarter, on fiscal fiscal XX% The the year when a is perspective which while total demonstrates membership pronounced grew as looking more XXX% full even revenue the over of compared XXXX growth revenue XXXX.

member just At half profitability look we at quarter, which count fourth by year. in the grew as look we to in of design as by that the overall we positive slower If scale generated continue prioritized and back the our to we our delivered XXXX. you X%, the fourth we was contributed which profitability quarter, as goal EBITDA can see to right, on will

is shortly, just that would our iceberg seniors here to point to like is were costs speak to for via tip of Medicare a our on the XX,XXX members It's associated of outlook acquisition basis. also members supplement one all today, nearly but to with a generated significant market speak the Advantage emphasize we we that Medicare daily of reiterate and important SelectRx policies. nearly selling I'll

provide opportunity have lead business the economics the avenues lead we'll there. Medicare to surface for vast our and and favorable market There beyond Given platform, introductions many SelectRx. we we see, to scratched XXXX our distribution are only begin in SelectRx testing high-quality

attractive. spend While future marketing expect the membership on growth this profile highly may incremental we incur spend, be will return

within And evolution lastly, hub additional as provide opportunities Tim discussed, and connector central healthcare to us in revenue we advantages the a SelectQuote's as believe similar SelectRx.

for with of not any our to current outlook these in Our initiatives what a we similar contemplate achieving XXXX SelectRx. does for but were parameters new these roadmap initiatives, would scale follow

and carriers it seniors coverage with All these and results further SelectQuote aligned cash point, drive to our means and in This improving valuable are but rewarding seasonality stakeholders. to and growth flow, these Tim's avenues of coordination just make is our better they more convenient for reiterate are lives. all to also caregivers. more that and dampen to like potential not better very To care goals see financial insurance knowing profitable partners of to

Now profitability pleased our move strategic Life our to if quarter, see drive impacts division. we in improving were to to Slide continue of we XX. the Similar last to redesign

our to in businesses, fund as that make both well are provide SelectQuote our Auto overall as cash strong and supplement Life, ability invest These flow While smaller to also our year-round segments Home business. goals important a more business. are & to

million created life with the easier In quarter which during SwiftTerm efficiencies specifically, year Life an benefit delivered continue the XX% we experience. in customer from offers insurance strong adjusted our at division a product, Our Select ongoing with EBITDA $XX to profitability fourth margin.

been with the for the same scalable. we that we have we believe Advantage expense and the product final encouraging, strategy Additionally, results our Medicare and had applied

Slide Auto Home in strong XX. business this Turning The our to core & remained very quarter. results

million with Our interest in believe change partnership, in strong estimate The were reflects financial separate in We've best seen will revenue estimate commissions place other and our mutual a in we XXXX EBITDA a results we the the of book as is that portion to change interest the carriers. the a impacted which carrier outstanding and agreement customers. with to related by of $XX in with recognize carriers. our renewal that book

In EBITDA change both estimate, the and primarily quarter, increasing discipline. year-over-year adjusted to excluding expanded in due premiums expense revenue and the onetime

increase million, we Excluding ahead adjusted the million, in Auto Similar EBITDA core of in estimate, XXXX. plan our increase Senior year-over-year. and as business, year-over-year XXX% strategy $X was Home, with of our & to change look was an revenue renewed XX% to $X to continue we an

Lastly, let Slide we if XX, to for me with guidance our conclude XXXX. turn

range approximately our division growth This midpoint. $XXX We of to roughly million, year-over-year $X.XX as assuming expected margins represents We billion, $X.X of Healthcare Services from ramp. on consolidated revenue expect Senior range billion fiscal year of anticipate in our a core it Healthcare pattern low Adjusted XX.X% around consolidated contemplates growth EBITDA $XX to in revenue a to growth Services adjusted follow membership at and margins of which segment XX% continues the XX% is in XXXX. to million business seasonal in to XX%. single-digit our similar to EBITDA

volume. to Turning

expect We LTVs, approximately two things. decrease Senior policy explicitly On MA we to XX%. while to to LTV, don't like note to I'd volume guide XX% core

the XQ commissions a XQ drop and repeat reason where booked of for are higher in will in First, are initial the shorter lowest prorated year in and we that investors pattern analysts for in and LTVs remind XQ XQ and The being seasonal key XXXX, historical that duration. LTV XQ XQ.

for guide consistent a our fiscal LTV we've policyholder year-over-year Second, observed which XXXX, and volume revenue what increase persistency. in in with implies is

efficiency, flow Finally, our year as to on goal positive consolidated on basis. cash a fiscal is XXXX, cash operating we approaching finish the start

questions. your concludes That turn remarks. And that, our back me operator our to with call the for let

comes Instructions] Credit First Suisse. Yong Jonathan with question Thank you. from [Operator today

open. Your is line

the here. Thanks congrats and results guys, on question, Hey. the for

on your seeing kind plans, thoughts just of there? you And look Just to it expectations? your the on any to tracks if you're have describes relative there? at from curious perspective that how color on as is any there what you carrier And got anything

yeah, ahead, Bob Bob. -- go ask to I'll Grant

a Yeah, question. really sorry. good That's

the with plan that about really consumers excited design. deal It fits are most. we the We

think and folks I different duals D-SNPs to are before can so counties, talked really a more with we've income a making and lower concerted and expand that those that we senior competitive carriers the about make given work our get to on good lot will plans those plans of been really, and effort more mix stability over plans. we a that where And geared those that, towards maybe has our about the year little Medicare especially others than really are more have that normal kind last see in more feel book bit We Advantage plans. them.

So we're really excited AEP. about upcoming

think really benefits And carrier is gives focused on think I competitive us that advantage. are that big to I people. the important a

That's the quarter. positive helpful. EBITDA turned services And then turning this business. to

Select. go You're you investments as Or to think single-digit line I if build contribution? And guiding the out lines needed? Thanks. of margin to how be think will about EBITDA incremental you positive do we EBITDA out, much to kind expect service additional negative? building low should that service guess as services lines, would -- you maintain EBITDA to that were those

Jonathan, Yeah, great question. excited with about we're really built what we've SelectRx. And

about capabilities immediate which member also speed we to consumer our think We're and you I a look achieved profitability, proof that's the point drive what again to healthcare. leveraging the the do. at really think in engagement rapid if at can value critical growth, we we acquisition core market

a be to to consumer. our Star as for terms years. in other XX That's of categories, to like significant first the I got value it's North So and been opportunities, mean, foremost,

out We to there's efficient higher can be think our I a way. platform advantage tech more leverage services business deploy profitability. of the would say, we think Bob? in as pleased very consumer, create and think capital and the given far to, And we can As got lot the where with that's I'd our margins. infrastructure continue we to approach, information opportunistic. We're those capabilities existing we'll really type a a and at that which we there

extremely that's Yeah. done not convenience In eight revenue you spaces population looking or perspective. same that's a like at working D-SNPs. designed system is, or what convenience obviously, earned value-based that is cash really high SelectRx, we'd adherence we on financial all drugs bring positive, really at just from But repeat, looking, what that of a growth. supports it's being Clearly, if in look well. more and to flow lots that We where at lower it to to if space, really it north we've that's play income, we're the typically in of that, creative. tricky are kind And folks of the average is other that look

kind hyper that's areas So is say than I and it pharmacy lot there's monitoring what than we're areas But patient it's just those around are as life built because of consumers, efficient we and that cash their of in of with express at its said, in. really remote really, try flow that high hold a the of a lot really specialized easier. the make adherence And home so a we're bring margins. that. interaction. reason kind consumers more remote just to of most thankfully, The care, do people differently looking convenience on can kind interest to getting Tim patient specialty focused Really, our because that the infrastructure to a those to to we've our we plays, believe that our

Yeah. incremental cost to Bob's this we advantages That is I great of to connectivity of we has customers. MA mean great have our last that point been level points. add the story one One to referenced materials able at that do were There's low today. the in marketing things can very we that but we there, SelectRx. prepared other do the with of

that's a do that can very more we do Xx. over the there's really year in Our think can lot compelling. capital-efficient We full manner. rev-to-CAC and for think We a we at there, that

Thanks. Great.

Our Daniel Grosslight next question comes Citigroup. with from

line Your open. is

taking quarter another congrats on for here. question thanks the Hi, and strong

the pretty range and would not a for the unusual and bottom thoughts in is On takes this of to some all top just to hear guys 'XX on puts you the at know your But which the I'd given on I bottom and drive wide the guidance, volatility fiscal it's guidance? of lines both that market. you point, top-end love the the

this Thanks Daniel. joining question, Great morning. Yeah. for

well. we're like the demonstrate, nimble results. such really we'll and that we it's First, designs speaking, should our out. strategic reflects the and 'XX we there operational adapt to 'XX. that feel 'XX released. situation gives that's with in model, those itself. as our get think in range I that sense Broadly like about played We to the one redesign properly But overall pleased be really we financial 'XX, plan playbook we think showed And one variables worked how results a that real-time yet how attractive evaluate, built up can have capture factor in the run We that same to the hopefully, efficiencies. That's visibility continue in 'XX felt think MA really plan that more to be to. guide. a as we we're But very able we did of presents thinking We guidance you

you think more around and -- in that Yeah. for just play particular, do as Got is it. think core Senior we we'll and squeeze 'XX efficiency juice marketing onerous marketing productivity AEP? to revenue-to-CAC thinking, about Or see will that of about should ratio, some stabilize the And 'XX think really revenue 'XX, into in upcoming rules how there the per I'm And more productivity, given there? this we in segment? come

add and Yeah, sure. comment to Bob it. ask I'll Great on to question.

as perspective, good agent indicated an we the feel from we think call, there. on I really

all summer. done earlier hiring this our have of We

business a made that. onboarding, our prior mode. more as We've running we're and force, I core in are good year-round agent agent these attrition. earnings Our about we the and training feel our fashion. low agents indicated very like ramping on kind releases, in of we've had tenured And two investments very

good feel very And we front. so on that

marketing it's lap. small a On a perspective, like again, very victory

of some to costs you policy Our out, marketing were rule. the through the segmentation $XXX up picked that year-over-year a came refined I down CMS to with rules contributed expense on maybe nearly and on continue we expect play think, down, year. of and last comment around costs XX% path for the think, very We're respect made about in the operating of two-thirds that leverage disciplined going XX-hour marketing, and of the we to, I most that notably to the about per would

we really business the very material dialogue with with others. and that carrier that We in partners, haven't we last from spoke see our viewpoints don't to time Our close impact with forward. you the a we're changed feel moving

comments Senior any business? the other Bob, on fiscal for levers as think 'XX about other we

rates those really through our up and that even gives retention. really we going good we've into year down I'm the good, on things, to about especially statements Tim's This this is I been double Yeah. past higher, What gives even core huge X that strategic last than close be really, us just gone redesign. we open Level ever a a on the we and leg percentage record having higher-level strategic and coming that agents, redesign. agents, through think we've been especially the predictability our had where had is it it's feel year ever most has of tenured we've of kind which more Level retention will are. Not agents the why AEP us on the agents been only And highest in agents. of had, really X,

think I We really huge gives AEP a good really about for coming it in. win feel that. us

flow. hear. of that one hear going flow you're to on Good breakeven approaching for fiscal 'XX. to to for cash last just Good be operating cash Yeah. on And kind me,

the deployment. curious you're thinking about how really debt. Just you're And about how capital thinking

-- going year debt, a coverage the X.X the the until than times left assuming next commissions how on by year imply around there, curious the up then would see receivable. on but you're of end don't asset asset that which you of comfortable billion just And 'XX, to down a you potential by more about -- with need thinking of would fiscal coverage $X.X ratio bumps that refinancing? covenant? debt you got fiscal You've of around to end you're maturity pay Are bunch

$XX have beat basis XXXX. investment out operating to it's setting respect We XXXX, great of breakeven, obviously, year million. focus for on really aside positive a been Yeah. in With would Services have been significantly a -- flow, Services with kind in positive Healthcare had carrier cash full organization. actually, the cash That's a set that Healthcare the EBITDA question. fantastic And would

towards -- impending mentioned, cost flow you total opportunity is the operating it With to capital what we're an the term cash managing improve expect key respect next in As the business. XXXX. debt. maturity, -- It overall we're and the recognize structure our be approaching breakeven to in to milestone big to is for with dialogue regular We lenders. absolutely

foremost, look have with is And when and working very you that and priority. really lenders. cost. do set We option respect think and there at with lower broadens that's -- path first our something certainly, been I believe facilitates steady, balance the It's we're has discussions results strong. it's Business on. to with position a a receivable a to existing cash our paired remained that commission refinancing it So

term respect I covenant help certainly with that. XXXX, cause. worked and of amendment think on in bode those to So, the lenders well With the QX we've our with yeah, recently on an

on do plan. our runway So we fiscal XXXX have clear

liquidity against And to and perspective, that's where been cash compliance relative about in adequate a we have to We good the feel execute it. amendment place. sit we put from

Got for it. color. the Thanks

comes Our Ben with question Hendrix from RBC. next

Your line open. is

you. thank Hey,

slowed in year. Just XX% your quick In question expectations. expected I Senior, growth a said growth you And guidance. think on this XX%

there the to of industry wanted you growth? forward? which to we about this kind rate Just going extent expect and Should you And of of for being kind run and year the how carriers run go a XX% Or from shopping thinking that about your the to expectation how increased you're influence we've moderate heard the go-forward sense thinking rate of as from for there year. are this forward? get is guys we

we We carrier returns. And to volume and have through we're second to 'XX. first the that one. at flow certainly attractive Yeah, high-quality felt extra did large prioritize if partners, the focused bigger I'll of talk be our might even efficiency profitability happy model. and take and any really line about like the in cash your fall for to a driving the business bottom ultimately, really to that Bob we're we an going healthcare, market. you question delivering maybe answer in operate Ben, on look market. And here, Certainly,

a the I think pullback last year, only to XX% we with XX% and being to up XX%. guided pullback ended

you is that market what's think equal. Also, note possible when I a shows that in model. share growth, all So growth not make the you in think about created

at perspective, look we you margins. what from a XX% we did If had Senior

Healthcare point Ben's think kind at low marketing the tack coupled combination power Senior underscores question? And of on need business, of right, enterprise also collective growth. kind to of of the to of perspective that and additional on kind a benefit the very I costs. doing came that model, SelectRx really You a growth. with to that, market we on Services our our second It's and our what we're Bob, of

I'd to good has Yeah. a of be. bring to sticky sorry. carriers very, kind on, windfall what balanced We the should AEP shopping, tailwind, close has attracted increased given for of us the that it's the guy And And have been be what year, a the and on point our we've coming focus or we to increased on. try on which, shopping made been I us expectations historically, for say, believe say, again, rates demographic this really we customer will the measured a that

if far especially get eligible group that that on on and the more, one see steps see, plan those As what as a we if these they're special needs do one. kind -- we not shape today especially to they're of take and shops

I done, plays demographics the are some So we've towards But especially that if what being at look we approach our very when what to tailwinds the expect. measured are carriers you we towards be there could what on think out saying we attract.

changes from are targeting year? alluded for if kind expect lead evolve I'm informing you remarks, XXXX of prepared XXXX your there's just in lessons learned strategies, strategies. to And how that and in to lead generation we any your you. wondering targeting Thank next

be just question, has kind to Great marketing of great backdrop. continued to Ben. a entire industry past we market Broadly, partners quality big the very environment the of marketing we've kudos operational in sure. But segmentation, seen think has Yeah, find created higher [Technical I favorable with job two market. in do over to demand importantly, a Difficulty] the the respect and market, with has it's a terms rationalization think but done years most and that target our the favorable, team our to

spot. And that so finding we sweet really we're feel like

So, the by to large, we're we that and with going continue 'XX. approach in had

we over broadly we're consumers that business. we to eye as that's for of the an thinking side for Xx. have economics profitability the Services got margins get to at the Senior, think benefit target on And look delivered we we to of we our will and highlighted that, the that. expect That's more powerful we pull-through should, also demand, investors way us. And and on Healthcare how business. us about healthcare certainly solid respect to increasingly, kind and it very -- way unit deliver rev-to-CAC to the equation. the But we'll think continue with in also we I the platform our We marketing

I moving will to marketing starting some our to that think you're approach to that. continue forward. And see So visibility inform

Thank you.

Ben. you, Thank

our Tim CEO, for Q&A. I'll closing to concludes This Danker, now remarks. back hand

is more than see as morning. see us what for not you by this our clear maybe to as we Thank what business. SelectQuote's standalone carriers is really all our the see clear again perceived is and Clearly, Medicare valuable think, I'll diversified Yeah. us, that, underscoring market. that. to but we joining much that, really close a distribution undoubtedly, platform policyholders

and you Senior Services very delivered, our a hub opportunity We information time. accelerant future of be realize to we're but as So plan Healthcare that this is not we for value and We covered. about broader you our unrecognized with to represents in for more are our core value, there your look for emphatically prove again the to business, uniquely what Thank believe change, for and significant to administered SelectQuote facilitator company. priority to positioned just shareholders talking is on our forward calls. how

and Ladies has today's you We'd to your call for concluded. thank like participation. now gentlemen,

lines. You may now disconnect your