SelectQuote (SLQT) – Tailwinds Appear Underway


Tuesday, November 05, 2024

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Solid FY Q1 results. The company reported fiscal Q1 revenue growth of 26% to $292.3 million, better than our estimate of $275.1 million. Margins were also better than we anticipated; an adj. EBITDA loss of $1.7 million was significantly better than our estimate of a loss of $6.6 million.  

Agents performing well. The company has a high concentration of tenured agents, who performed well in the quarter. A combination of efficient marketing and strong close rates primarily led to the better-than-expected revenue and profitability. Importantly, we believe the demonstrated strength of the company’s tenured agent force and strong consumer engagement this Annual Enrollment Period (AEP) could result in an impressive upcoming fiscal Q2 for the Senior segment.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Release – SelectQuote, Inc. Reports First Quarter of Fiscal Year 2025 Results

Research News and Market Data on SLQT

11/04/2024

First Quarter of Fiscal Year 2025 – Consolidated Earnings Highlights

  • Revenue of $292.3 million
  • Net loss of $44.5 million
  • Adjusted EBITDA* of $(1.7) million

Fiscal Year 2025 Guidance Ranges:

  • Revenue expected in a range of $1.425 billion to $1.525 billion
  • Net income (loss) expected in a range of $(59) million to $3 million
  • Adjusted EBITDA* expected in a range of $100 million to $130 million

First Quarter Fiscal Year 2025 – Segment Highlights

Senior

  • Revenue of $92.9 million
  • Adjusted EBITDA* of $7.7 million
  • Approved Medicare Advantage policies of 91,680

Healthcare Services

  • Revenue of $155.7 million
  • Adjusted EBITDA* of $4.9 million
  • 86,521 SelectRx members

Life

  • Revenue of $39.3 million
  • Adjusted EBITDA* of $6.0 million

OVERLAND PARK, Kan.–(BUSINESS WIRE)– SelectQuote, Inc. (NYSE: SLQT) reported consolidated revenue for the first quarter of fiscal year 2025 of $292.3 million compared to consolidated revenue for the first quarter of fiscal year 2024 of $232.7 million. Consolidated net loss for the first quarter of fiscal year 2025 was $44.5 million compared to consolidated net loss for the first quarter of fiscal year 2024 of $31.1 million. Finally, consolidated Adjusted EBITDA* for the first quarter of fiscal year 2025 was $(1.7) million compared to consolidated Adjusted EBITDA* for the first quarter of fiscal year 2024 of $(11.4) million.

SelectQuote Chief Executive Officer, Tim Danker, remarked, “SelectQuote opened our fiscal 2025 with a strong quarter and our holistic approach to healthcare connectivity between Americans in need of care, and the insurers and caregivers that provide it, has never been more valuable. As reported in the market, benefit coverage for Medicare Advantage plans shifted significantly this season, and we are pleased to say that both seniors and insurance carriers have increasingly turned to SelectQuote’s agent-led, true-choice platform to ensure individual care needs are met with the best plan available. When our customers and carrier partners benefit, so do our performance metrics and shareholders, and we proud of this alignment.”

Mr. Danker continued, “This quarter was also a success for our broadening Healthcare Services platform led by SelectRx. Our bespoke prescription drug service now has over 86 thousand members, which represents growth of over 64% compared to a year ago. Separately, SelectQuote recently announced our initial receivable securitization, which was a critical first step in our ongoing strategy to improve our capital flexibility.”

“We look forward to sharing our AEP results next quarter and are excited by the value our differentiated model continues to provide to a large and growing population of American seniors,” Mr. Danker concluded.

* See “Non-GAAP Financial Measures” below.

Segment Results

We currently have three reportable segments: 1) Senior, 2) Healthcare Services and 3) Life. The performance measures of the segments include total revenue and Adjusted EBITDA.* Costs of commissions and other services revenue, cost of goods sold-pharmacy revenue, marketing and advertising, selling, general, and administrative, and technical development operating expenses that are directly attributable to a segment are reported within the applicable segment. Indirect costs of revenue, marketing and advertising, selling, general, and administrative, and technical development operating expenses are allocated to each segment based on varying metrics such as headcount. Adjusted EBITDA is our segment profit measure to evaluate the operating performance of our business. We define Adjusted EBITDA as net loss plus: (i) interest expense, net; (ii) expense (benefit) for income taxes; (iii) depreciation and amortization; (iv) share-based compensation; (v) goodwill, long-lived asset, and intangible assets impairments; (vi) transaction costs; (vii) loss on disposal of property, equipment and software, net; and (viii) other non-recurring expenses and income. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by revenue.

Earnings Conference Call

SelectQuote, Inc. will host a conference call with the investment community on November 4, 2024, beginning at 8:30 a.m. ET. To register for this conference call, please use this link: https://registrations.events/direct/Q4I1559258472. After registering, a confirmation will be sent via email, including dial-in details and unique conference call codes for entry. Registration is open through the live call, but to ensure you are connected for the full call we suggest registering at least 10 minutes before the start of the call. The event will also be webcasted live via our investor relations website https://ir.selectquote.com/investor-home/default.aspx.

Non-GAAP Financial Measures

This release includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. To supplement our financial statements presented in accordance with GAAP and to provide investors with additional information regarding our GAAP financial results, we have presented in this release Adjusted EBITDA and Adjusted EBITDA Margin, which are non-GAAP financial measures. These non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly titled measures presented by other companies. We define Adjusted EBITDA as net income (loss) before interest expense, income tax expense (benefit), depreciation and amortization, and certain add-backs for non-cash or non-recurring expenses, including restructuring and share-based compensation expenses. The most directly comparable GAAP measure is net income (loss). We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue. The most directly comparable GAAP measure is net income margin. We monitor and have presented in this release Adjusted EBITDA and Adjusted EBITDA Margin because they are key measures used by our management and Board of Directors to understand and evaluate our operating performance, to establish budgets, and to develop operational goals for managing our business. In particular, we believe that excluding the impact of these expenses in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core operating performance. We believe that these non-GAAP financial measures help identify underlying trends in our business that could otherwise be masked by the effect of the expenses that we exclude in the calculations of these non-GAAP financial measures. Accordingly, we believe that these financial measures provide useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects. Reconciliations of net income (loss) to Adjusted EBITDA are presented below beginning on page 13.

Forward Looking Statements

This release contains forward-looking statements. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.

There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: impacts of the COVID-19 pandemic and any other significant public health events; our reliance on a limited number of insurance carrier partners and any potential termination of those relationships or failure to develop new relationships; existing and future laws and regulations affecting the health insurance market; changes in health insurance products offered by our insurance carrier partners and the health insurance market generally; insurance carriers offering products and services directly to consumers; changes to commissions paid by insurance carriers and underwriting practices; competition with brokers, exclusively online brokers and carriers who opt to sell policies directly to consumers; competition from government-run health insurance exchanges; developments in the U.S. health insurance system; our dependence on revenue from carriers in our senior segment and downturns in the senior health as well as life, automotive and home insurance industries; our ability to develop new offerings and penetrate new vertical markets; risks from third-party products; failure to enroll individuals during the Medicare annual enrollment period; our ability to attract, integrate and retain qualified personnel; our dependence on lead providers and ability to compete for leads; failure to obtain and/or convert sales leads to actual sales of insurance policies; access to data from consumers and insurance carriers; accuracy of information provided from and to consumers during the insurance shopping process; cost-effective advertisement through internet search engines; ability to contact consumers and market products by telephone; global economic conditions, including inflation; disruption to operations as a result of future acquisitions; significant estimates and assumptions in the preparation of our financial statements; impairment of goodwill; our ability to regain and maintain compliance with NYSE listing standards; potential litigation and other legal proceedings or inquiries; our existing and future indebtedness; our ability to maintain compliance with our debt covenants; access to additional capital; failure to protect our intellectual property and our brand; fluctuations in our financial results caused by seasonality; accuracy and timeliness of commissions reports from insurance carriers; timing of insurance carriers’ approval and payment practices; factors that impact our estimate of the constrained lifetime value of commissions per policyholder; changes in accounting rules, tax legislation and other legislation; disruptions or failures of our technological infrastructure and platform; failure to maintain relationships with third-party service providers; cybersecurity breaches or other attacks involving our systems or those of our insurance carrier partners or third-party service providers; our ability to protect consumer information and other data; failure to market and sell Medicare plans effectively or in compliance with laws; and other factors related to our pharmacy business, including manufacturing or supply chain disruptions, access to and demand for prescription drugs, and regulatory changes or other industry developments that may affect our pharmacy operations. For a further discussion of these and other risk factors that could impact our future results and performance, see the section entitled “Risk Factors” in the most recent Annual Report on Form 10-K (the “Annual Report”) and subsequent periodic reports filed by us with the Securities and Exchange Commission. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as otherwise required by law, we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

About SelectQuote:

Founded in 1985, SelectQuote (NYSE: SLQT) provides solutions that help consumers protect their most valuable assets: their families, health, and property. The company pioneered the model of providing unbiased comparisons from multiple, highly-rated insurance companies allowing consumers to choose the policy and terms that best meet their unique needs. Two foundational pillars underpin SelectQuote’s success: a strong force of highly-trained and skilled agents who provide a consultative needs analysis for every consumer, and proprietary technology that sources and routes high-quality leads.

With an ecosystem offering high touchpoints for consumers across Insurance, Medicare, Pharmacy, and Value-Based Care, the company now has four core business lines: SelectQuote Senior, SelectQuote Healthcare Services, SelectQuote Life, and SelectQuote Auto and Home. SelectQuote Senior serves the needs of a demographic that sees around 10,000 people turn 65 each day with a range of Medicare Advantage and Medicare Supplement plans. SelectQuote Healthcare Services is comprised of the SelectRx Pharmacy, a specialized medication management pharmacy, and Population Health which proactively connects its members with best-in-class healthcare services that fit each member’s unique healthcare needs. The platform improves health outcomes and lowers healthcare costs through proactive engagement and access to high-value healthcare solutions.

Source: SelectQuote, Inc.

View the full release HERE.

Investor Relations:
Sloan Bohlen
877-678-4083
investorrelations@selectquote.com

Media:
Matt Gunter
913-286-4931
matt.gunter@selectquote.com

Source: SelectQuote, Inc.

Release – SelectQuote to Release Fiscal First Quarter 2025 Earnings on November 4

Research News and Market Data on SLQT

10/22/2024

OVERLAND PARK, Kan.–(BUSINESS WIRE)– SelectQuote, Inc. (NYSE: SLQT), a leading distributor of Medicare insurance policies and owner of a rapidly growing Healthcare Services platform, today announced it will release its first quarter 2025 financial results before market open on Monday, November 4, 2024. Chief Executive Officer, Tim Danker, and Chief Financial Officer, Ryan Clement, will host a conference call on the day of the release (November 4, 2024) at 8:30 am ET to discuss the results.

To register for this conference call, please use this link: https://registrations.events/direct/Q4I1559258472

After registering, a confirmation will be sent via email, including dial in details and unique conference call codes for entry. Registration is open through the live call, but to ensure you are connected for the full call, we suggest registering a day in advance or at minimum 10 minutes before the start of the call. The event will also be webcasted live via our investor relations website https://ir.selectquote.com/investor-home/default.aspx or via this link.

About SelectQuote:

Founded in 1985, SelectQuote (NYSE: SLQT) provides solutions that help consumers protect their most valuable assets: their families, health, and property. The company pioneered the model of providing unbiased comparisons from multiple, highly-rated insurance companies allowing consumers to choose the policy and terms that best meet their unique needs. Two foundational pillars underpin SelectQuote’s success: a strong force of highly-trained and skilled agents who provide a consultative needs analysis for every consumer, and proprietary technology that sources and routes high-quality leads.

With an ecosystem offering high touchpoints for consumers across insurance, medicare, pharmacy, and value-based care, the company now has four core business lines: SelectQuote Senior, SelectQuote Healthcare Services, SelectQuote Life, and SelectQuote Auto and Home. SelectQuote Senior serves the needs of a demographic that sees around 10,000 people turn 65 each day with a range of Medicare Advantage and Medicare Supplement plans. SelectQuote Healthcare Services is comprised of the SelectRx Pharmacy, a Patient-Centered Pharmacy Home™ (PCPH) accredited pharmacy, and Healthcare Select which proactively connects consumers with a wide breadth of healthcare services supporting their needs.

Investor Relations:
Sloan Bohlen
877-678-4083
investorrelations@selectquote.com

Media:
Matt Gunter
913-286-4931
matt.gunter@selectquote.com

Source: SelectQuote, Inc.

SelectQuote (SLQT) – Debt Reduction Strategy Becomes Tangible


Friday, October 18, 2024

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

De-levering effort takes a step forward. On October 15, the company completed its previously announced securitization of a portion of its commission receivables, resulting in $100 million of newly issued securitized notes. With the proceeds, the company is paying down $100 million of its existing term loans. Importantly, the company also extended the maturities of the balance of its term loans to late 2027 (previously maturing in early 2025).

Attractive financing option. The average effective interest rate on the newly issued securitized loans is roughly 8.5%, significantly better than the company’s term loan effective rate (nearly 15%). Moreover, the newly created asset backed securities are investment grade and the company could offer the product to third-party asset managers in the future. Given that it has roughly $1 billion in commission receivables, we believe securitization is a powerful debt reduction tool for the company


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Release – SelectQuote Completes First Phase of Recapitalization with $100 Million Securitization

Research News and Market Data on SLQT

10/16/2024

OVERLAND PARK, Kan.–(BUSINESS WIRE)– SelectQuote, Inc. (NYSE: SLQT), a leading distributor of Medicare insurance policies and owner of a rapidly-growing Healthcare Services platform, today announced the completion of a $100 million securitization transaction on October 15, 2024.

Securitization provides advanced financing against the Company’s expected collections for policies previously sold. The Company’s receivables totaled approximately $1 billion as of June 30, 2024, and only a portion of the total receivables balance was securitized in this transaction. The Company will use the proceeds from this first securitization to pay down a portion of its outstanding term debt. The new securitized debt offers a materially lower cost of capital than the Company’s term debt.

The transaction also includes a meaningful maturity extension for the remainder of SelectQuote’s term debt from September 15, 2025 to September 30, 2027, and provides a path to an additional extension to September 30, 2028 upon completion of agreed upon payment milestones. While the Company believes future securitization deals remain the most attractive solution to a permanent recapitalization, it has hired an investment bank to conduct a strategic review of all available options to meet the Company’s payment milestones, strengthen the balance sheet, and fund continued investment in core business lines.

SelectQuote CEO Tim Danker commented, “This securitization marks an important milestone for SelectQuote. This innovative approach to financing our business comes at a significant improvement to the Company’s current cost of capital. This transaction marks a critical first step toward our ultimate goal of significantly improving our capital structure and unlocking value for shareholders.”

About SelectQuote:

Founded in 1985, SelectQuote (NYSE: SLQT) provides solutions that help consumers protect their most valuable assets: their families, health, and property. The Company pioneered the model of providing unbiased comparisons from multiple, highly-rated insurance companies allowing consumers to choose the policy and terms that best meet their unique needs. Two foundational pillars underpin SelectQuote’s success: a strong force of highly-trained and skilled agents who provide a consultative needs analysis for every consumer, and proprietary technology that sources and routes high-quality leads.

With an ecosystem offering high touchpoints for consumers across insurance, medicare, pharmacy, and value-based care, the Company now has four core business lines: SelectQuote Senior, SelectQuote Healthcare Services, SelectQuote Life, and SelectQuote Auto and Home. SelectQuote Senior serves the needs of a demographic that sees around 10,000 people turn 65 each day with a range of Medicare Advantage and Medicare Supplement plans. SelectQuote Healthcare Services is comprised of the SelectRx Pharmacy, a Patient-Centered Pharmacy Home™ (PCPH) accredited pharmacy, and Healthcare Select which proactively connects consumers with a wide breadth of healthcare services supporting their needs.

Investor Relations:
Sloan Bohlen
877-678-4083
investorrelations@selectquote.com

Media:
Matt Gunter
913-286-4931
matt.gunter@selectquote.com

Source: SelectQuote, Inc.

SelectQuote (SLQT) – Taking Steps for the Long Term


Monday, September 16, 2024

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Strong fiscal Q4. SelectQuote’s fiscal Q4 revenue of $307.2 million and adj. EBITDA of $14.4 million exceeded our estimates of $271.3 million and a loss of $2.2 million, respectively.  In our view, the strong performance demonstrated the power of the company’s synergistic business model, which serves consumers’ needs both for insurance policies and pharmacy services. 

Pharmacy momentum. Total revenue grew an impressive 38% over the prior year period, driven largely by the company’s Healthcare Services segment, which is comprised primarily of SelectRx (home-direct pharmacy business). Healthcare Services revenue was up roughly 75%, year-over-year with SelectRx membership growing to approximately 82,000, up from roughly 75,000 at the end of fiscal Q3. 


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Release – SelectQuote, Inc. Reports Fourth Quarter of Fiscal Year 2024 Results

Research News and Market Data on SLQT09/13/2024

Download(opens in new window)

Fourth Quarter of Fiscal Year 2024 – Consolidated Earnings Highlights

  • Revenue of $307.2 million
  • Net loss of $31.0 million
  • Adjusted EBITDA* of $14.4 million

Fiscal Year 2025 Guidance Ranges:

  • Revenue expected in a range of $1.4 billion to $1.5 billion
  • Net loss expected in a range of $42 million to $6 million
  • Adjusted EBITDA* expected in a range of $90 million to $120 million

Fourth Quarter Fiscal Year 2024 – Segment Highlights

Senior

  • Revenue of $114.1 million
  • Adjusted EBITDA* of $27.9 million
  • Approved Medicare Advantage policies of 107,272

Healthcare Services

  • Revenue of $145.2 million
  • Adjusted EBITDA* of $0.9 million
  • Approximately 82,000 SelectRx members

Life

  • Revenue of $42.1 million
  • Adjusted EBITDA* of $7.2 million

Auto & Home

  • Revenue of $7.6 million
  • Adjusted EBITDA* of $2.5 million

OVERLAND PARK, Kan.–(BUSINESS WIRE)– SelectQuote, Inc. (NYSE: SLQT) reported consolidated revenue for the fourth quarter of fiscal year 2024 of $307.2 million compared to consolidated revenue for the fourth quarter of fiscal year 2023 of $221.8 million. Consolidated net loss for the fourth quarter of fiscal year 2024 was $31.0 million compared to consolidated net loss for the fourth quarter of fiscal year 2023 of $47.8 million. Finally, consolidated Adjusted EBITDA* for the fourth quarter of fiscal year 2024 was $14.4 million compared to consolidated Adjusted EBITDA* for the fourth quarter of fiscal year 2023 of $(5.8) million.

Consolidated revenue for the fiscal year ended June 30, 2024, was $1.3 billion compared to consolidated revenue for the fiscal year ended June 30, 2023, of $1.0 billion. Consolidated net loss for the fiscal year ended June 30, 2024, was $34.1 million compared to consolidated net loss for the fiscal year ended June 30, 2023, of $58.5 million. Finally, consolidated Adjusted EBITDA* for the fiscal year ended June 30, 2024, was $117.0 million compared to consolidated Adjusted EBITDA* of $74.3 million for the fiscal year ended June 30, 2023.

SelectQuote Chief Executive Officer, Tim Danker, commented, “2024 was another successful and strong year for SelectQuote across both Senior Medicare Advantage distribution and our Healthcare Services business, driven by SelectRx. On a consolidated basis our fiscal year revenue and Adjusted EBITDA outperformed the midpoint of our original forecast by 17% and 26%, respectively. This marks the 10th consecutive quarter of outperformance versus our internal expectations, reaffirming our strategy to prioritize profitability and cash efficiency over volume growth. Revenue growth was driven primarily by 68% growth in SelectRx members and increasing utilization. Our profitability was driven by another strong year of execution in Senior, which achieved a 25% Adjusted EBITDA margin, similar to a very strong fiscal 2023. Additionally, our Healthcare Services segment achieved its 5th straight quarter of profitability ending the year with Adjusted EBITDA of $7.8 million, which compares to an Adjusted EBITDA loss of $22.8 million in fiscal 2023. Lastly, SelectQuote has signed a non-binding letter of intent to complete an initial commissions receivable securitization of approximately $100 million with certain of our term lenders. Provided this deal closes in the coming weeks, we believe this will be an important first step in our strategic imperative to optimizing our balance sheet capacity, lowering our funding costs, and extending our debt maturities.”

Mr. Danker continued, “SelectQuote’s unique healthcare information platform remains best positioned as a value creation conduit, efficiently connecting a large and growing population of Americans in need of coverage and care with the best providers, based on each of their distinct personal needs.”

Segment Results

We currently report on four segments: 1) Senior, 2) Healthcare Services, 3) Life, and 4) Auto & Home. The performance measures of the segments include total revenue and Adjusted EBITDA*. Costs of commissions and other services revenue, cost of goods sold-pharmacy revenue, marketing and advertising, selling, general, and administrative, and technical development operating expenses that are directly attributable to a segment are reported within the applicable segment. Indirect costs of revenue, marketing and advertising, selling, general, and administrative, and technical development operating expenses are allocated to each segment based on varying metrics such as headcount. Adjusted EBITDA is our segment profit measure to evaluate the operating performance of our business. We define Adjusted EBITDA as net loss plus: (i) interest expense, net; (ii) benefit for income taxes; (iii) depreciation and amortization; (iv) share-based compensation; (v) goodwill, long-lived asset, and intangible assets impairments; (vi) transaction costs; (vii) loss on disposal of property, equipment and software, net; and (viii) other non-recurring expenses and income. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by revenue.

Senior

Financial Results

Operating Metrics

Submitted Policies

Approved Policies

Lifetime Value of Commissions per Approved Policy

Healthcare Services

Financial Results

Operating Metrics

Members

Combined Senior and Healthcare Services – Consumer Per Unit Economics

The opportunity to leverage our existing database and distribution model to improve access to healthcare services for our consumers has created a need for us to review our key metrics related to our per unit economics. As we think about the revenue and expenses for Healthcare Services, we note that they are derived from the marketing acquisition costs associated with the sale of an MA or MS policy, some of which costs are allocated directly to Healthcare Services, and therefore determined that our per unit economics measure should include components from both Senior and Healthcare Services. See details of revenue and expense items included in the calculation below.

Combined Senior and Healthcare Services consumer per unit economics represents total MA and MS commissions; other product commissions; other revenues, including revenues from Healthcare Services; and operating expenses associated with Senior and Healthcare Services, each shown per number of approved MA and MS policies over a given time period. Management assesses the business on a per-unit basis to help ensure that the revenue opportunity associated with a successful policy sale is attractive relative to the marketing acquisition cost. Because not all acquired leads result in a successful policy sale, all per-policy metrics are based on approved policies, which is the measure that triggers revenue recognition.

The MA and MS commission per MA/MS policy represents the LTV for policies sold in the period. Other commission per MA/MS policy represents the LTV for other products sold in the period, including DVH prescription drug plan, and other products, which management views as additional commission revenue on our agents’ core function of MA/MS policy sales. Pharmacy revenue per MA/MS policy represents revenue from SelectRx, and other revenue per MA/MS policy represents revenue from Population Health, production bonuses, marketing development funds, lead generation revenue, and adjustments from the Company’s reassessment of its cohorts’ transaction prices. Total operating expenses per MA/MS policy represents all of the operating expenses within Senior and Healthcare Services. The revenue to customer acquisition cost (“CAC”) multiple represents total revenue as a multiple of total marketing acquisition cost, which represents the direct costs of acquiring leads. These costs are included in marketing and advertising expense within the total operating expenses per MA/MS policy.

The following table shows combined Senior and Healthcare Services consumer per unit economics for the periods presented. Based on the seasonality of Senior and the fluctuations between quarters, we believe that the most relevant view of per unit economics is on a rolling 12-month basis. All per MA/MS policy metrics below are based on the sum of approved MA/MS policies, as both products have similar commission profiles.

Total revenue per MA/MS policy increased 25% for the twelve months ended June 30, 2024, compared to the twelve months ended June 30, 2023, primarily due to the increase in pharmacy revenue. Total operating expenses per MA/MS policy increased 25% for the twelve months ended June 30, 2024, compared to the twelve months ended June 30, 2023, driven by an increase in cost of goods sold-pharmacy revenue for Healthcare Services due to the growth of the business, offset by a decrease in our marketing and advertising costs.

Life

Financial Results

The following table provides the financial results for the Life segment for the periods presented:

Operating Metrics

Life premium represents the total premium value for all policies that were approved by the relevant insurance carrier partner and for which the policy document was sent to the policyholder and payment information was received by the relevant insurance carrier partner during the indicated period. Because our commissions are earned based on a percentage of total premium, total premium volume for a given period is the key driver of revenue for our Life segment.

Auto & Home

Financial Results

Operating Metrics

Auto & Home premium represents the total premium value of all new policies that were approved by our insurance carrier partners during the indicated period. Because our commissions are earned based on a percentage of total premium, total premium volume for a given period is the key driver of revenue for our Auto & Home segment.

Earnings Conference Call

SelectQuote, Inc. will host a conference call with the investment community on September 13, 2024, beginning at 8:30 a.m. ET. To register for this conference call, please use this link: https://www.netroadshow.com/events/login?show=7297aa9f&confId=70516 . After registering, a confirmation will be sent via email, including dial-in details and unique conference call codes for entry. Registration is open through the live call, but to ensure you are connected for the full call we suggest registering at least 10 minutes before the start of the call. The event will also be webcasted live via our investor relations website https://ir.selectquote.com/investor-home/default.aspx .

Non-GAAP Financial Measures

This release includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. To supplement our financial statements presented in accordance with GAAP and to provide investors with additional information regarding our GAAP financial results, we have presented in this release Adjusted EBITDA and Adjusted EBITDA Margin, which are non-GAAP financial measures. These non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly titled measures presented by other companies. We define Adjusted EBITDA as net income (loss) before interest expense, income tax expense (benefit), depreciation and amortization, and certain add-backs for non-cash or non-recurring expenses, including restructuring and share-based compensation expenses. The most directly comparable GAAP measure is net income (loss). We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue. The most directly comparable GAAP measure is net income margin. We monitor and have presented in this release Adjusted EBITDA and Adjusted EBITDA Margin because they are key measures used by our management and Board of Directors to understand and evaluate our operating performance, to establish budgets, and to develop operational goals for managing our business. In particular, we believe that excluding the impact of these expenses in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core operating performance. We believe that these non-GAAP financial measures help identify underlying trends in our business that could otherwise be masked by the effect of the expenses that we exclude in the calculations of these non-GAAP financial measures. Accordingly, we believe that these financial measures provide useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects. Reconciliations of net income (loss) to Adjusted EBITDA are presented below beginning on page 13.

Forward Looking Statements

This release contains forward-looking statements. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.

There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: impacts of the COVID-19 pandemic and any other significant public health events; our reliance on a limited number of insurance carrier partners and any potential termination of those relationships or failure to develop new relationships; existing and future laws and regulations affecting the health insurance market; changes in health insurance products offered by our insurance carrier partners and the health insurance market generally; insurance carriers offering products and services directly to consumers; changes to commissions paid by insurance carriers and underwriting practices; competition with brokers, exclusively online brokers and carriers who opt to sell policies directly to consumers; competition from government-run health insurance exchanges; developments in the U.S. health insurance system; our dependence on revenue from carriers in our senior segment and downturns in the senior health as well as life, automotive and home insurance industries; our ability to develop new offerings and penetrate new vertical markets; risks from third-party products; failure to enroll individuals during the Medicare annual enrollment period; our ability to attract, integrate and retain qualified personnel; our dependence on lead providers and ability to compete for leads; failure to obtain and/or convert sales leads to actual sales of insurance policies; access to data from consumers and insurance carriers; accuracy of information provided from and to consumers during the insurance shopping process; cost-effective advertisement through internet search engines; ability to contact consumers and market products by telephone; global economic conditions, including inflation; disruption to operations as a result of future acquisitions; significant estimates and assumptions in the preparation of our financial statements; impairment of goodwill; our ability to regain and maintain compliance with NYSE listing standards; potential litigation and other legal proceedings or inquiries; our existing and future indebtedness; our ability to maintain compliance with our debt covenants; access to additional capital; failure to protect our intellectual property and our brand; fluctuations in our financial results caused by seasonality; accuracy and timeliness of commissions reports from insurance carriers; timing of insurance carriers’ approval and payment practices; factors that impact our estimate of the constrained lifetime value of commissions per policyholder; changes in accounting rules, tax legislation and other legislation; disruptions or failures of our technological infrastructure and platform; failure to maintain relationships with third-party service providers; cybersecurity breaches or other attacks involving our systems or those of our insurance carrier partners or third-party service providers; our ability to protect consumer information and other data; failure to market and sell Medicare plans effectively or in compliance with laws; and other factors related to our pharmacy business, including manufacturing or supply chain disruptions, access to and demand for prescription drugs, and regulatory changes or other industry developments that may affect our pharmacy operations. For a further discussion of these and other risk factors that could impact our future results and performance, see the section entitled “Risk Factors” in the most recent Annual Report on Form 10-K (the “Annual Report”) and subsequent periodic reports filed by us with the Securities and Exchange Commission. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as otherwise required by law, we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

About SelectQuote:

Founded in 1985, SelectQuote (NYSE: SLQT) provides solutions that help consumers protect their most valuable assets: their families, health, and property. The company pioneered the model of providing unbiased comparisons from multiple, highly-rated insurance companies allowing consumers to choose the policy and terms that best meet their unique needs. Two foundational pillars underpin SelectQuote’s success: a strong force of highly-trained and skilled agents who provide a consultative needs analysis for every consumer, and proprietary technology that sources and routes high-quality leads.

With an ecosystem offering high touchpoints for consumers across Insurance, Medicare, Pharmacy, and Value-Based Care, the company now has four core business lines: SelectQuote Senior, SelectQuote Healthcare Services, SelectQuote Life, and SelectQuote Auto and Home. SelectQuote Senior serves the needs of a demographic that sees around 10,000 people turn 65 each day with a range of Medicare Advantage and Medicare Supplement plans. SelectQuote Healthcare Services is comprised of the SelectRx Pharmacy, a specialized medication management pharmacy, and Population Health which proactively connects its members with best-in-class healthcare services that fit each member’s unique healthcare needs. The platform improves health outcomes and lowers healthcare costs through proactive engagement and access to high-value healthcare solutions.

View The Full Release Here.

Investor Relations:
Sloan Bohlen
877-678-4083
investorrelations@selectquote.com

Media:
Matt Gunter
913-286-4931
matt.gunter@selectquote.com

Source: SelectQuote, Inc.

Release – SelectQuote to Release Fiscal Fourth Quarter and Full Year 2024 Earnings on September 13

Research News and Market Data on SLQT

09/09/2024

OVERLAND PARK, Kan.–(BUSINESS WIRE)– SelectQuote, Inc. (NYSE: SLQT), a leading distributor of Medicare insurance policies and owner of an emerging Healthcare Services platform, today announced it will release its fourth quarter and full year 2024 financial results before market open on Friday, September 13, 2024. Chief Executive Officer, Tim Danker, and Chief Financial Officer, Ryan Clement, will host a conference call on the day of the release (September 13, 2024) at 8:30 am ET to discuss the results.

To register for this conference call, please use this link: https://www.netroadshow.com/events/login?show=7297aa9f&confId=70516

After registering, a confirmation will be sent via email, including dial in details and unique conference call codes for entry. Registration is open through the live call, but to ensure you are connected for the full call, we suggest registering a day in advance or at minimum 10 minutes before the start of the call. The event will also be webcasted live via our investor relations website https://ir.selectquote.com/investor-home/default.aspx or via this link .

About SelectQuote:

Founded in 1985, SelectQuote (NYSE: SLQT) provides solutions that help consumers protect their most valuable assets: their families, health, and property. The company pioneered the model of providing unbiased comparisons from multiple, highly-rated insurance companies allowing consumers to choose the policy and terms that best meet their unique needs. Two foundational pillars underpin SelectQuote’s success: a strong force of highly-trained and skilled agents who provide a consultative needs analysis for every consumer, and proprietary technology that sources and routes high-quality leads.

With an ecosystem offering high touchpoints for consumers across insurance, medicare, pharmacy, and value-based care, the company now has four core business lines: SelectQuote Senior, SelectQuote Healthcare Services, SelectQuote Life, and SelectQuote Auto and Home. SelectQuote Senior serves the needs of a demographic that sees around 10,000 people turn 65 each day with a range of Medicare Advantage and Medicare Supplement plans. SelectQuote Healthcare Services is comprised of the SelectRx Pharmacy, a Patient-Centered Pharmacy Home™ (PCPH) accredited pharmacy, and Healthcare Select which proactively connects consumers with a wide breadth of healthcare services supporting their needs.

Investor Relations:
Sloan Bohlen
877-678-4083
investorrelations@selectquote.com

Media:
Matt Gunter
913-653-4375
matt.gunter@selectquote.com

Source: SelectQuote, Inc.

Release – SelectQuote’s SelectRx Pharmacy to Open a State-of-the-Art Third Fulfillment Center in Olathe, Kansas, to Support Rapid Growth

Research News and Market Data on SLQT

09/04/2024

OVERLAND PARK, Kan.–(BUSINESS WIRE)– SelectQuote, Inc. (NYSE: SLQT) today announced that SelectRx, the company’s full-service medication management pharmacy that serves all 50 states, will open a third fulfillment facility in Olathe, Kansas, to serve its rapidly expanding customer base, alongside its existing facilities in Monaca, Pennsylvania, and Indianapolis, Indiana.

SelectQuote launched the SelectRx business in 2021 as part of its Healthcare Services Division after acquiring two smaller pharmacy operations. In just over three years, SelectRx has grown its membership from under 5,000 to over 75,000 members who receive regular prescription shipments in adherence-friendly packaging. The new 54,000 square foot state-of-the-art facility at 404 W. Frontier Lane in Olathe, Kansas, is expected to open during the first half of calendar 2025 and should significantly expand the pharmacy’s capacity.

SelectQuote plans to add over 50 new positions at the location and is seeking experienced pharmacists, pharmacy fulfillment technicians (to assist in filling, processing, and shipping prescriptions), and various leadership and support roles such as shipping and inventory management, facilities management and information technology.

In 2023, SelectRx was recognized as a Patient-Centered Pharmacy Home (PCPH) by The Compliance Team. PCPH is based on TCT’s CMS-recognized Patient-Centered Medical Home program, which puts special emphasis on health maintenance, preventative screening, medication management, multi-specialty medical services, patient experience reporting, and benchmarking for chronically-ill patients.

SelectQuote CEO Tim Danker commented, “We are thrilled with the rapid growth of our SelectRx business over the past three years. With this new facility, we will be able to extend this highly convenient and adherence-friendly pharmacy solution to many more Seniors who can benefit from it. We are also thrilled to build out this beautiful new facility in our home market of Kansas City.”

About SelectQuote:

Founded in 1985, SelectQuote (NYSE: SLQT) provides solutions that help consumers protect their most valuable assets: their families, health, and property. The company pioneered the model of providing unbiased comparisons from multiple, highly-rated insurance companies allowing consumers to choose the policy and terms that best meet their unique needs. Two foundational pillars underpin SelectQuote’s success: a strong force of highly-trained and skilled agents who provide a consultative needs analysis for every consumer, and proprietary technology that sources and routes high-quality leads.

With an ecosystem offering high touchpoints for consumers across Insurance, Medicare, Pharmacy, and Value-Based Care, the company now has four core business lines: SelectQuote Senior, SelectQuote Healthcare Services, SelectQuote Life, and SelectQuote Auto and Home. SelectQuote Senior serves the needs of a demographic that sees around 10,000 people turn 65 each day with a range of Medicare Advantage and Medicare Supplement plans. SelectQuote Healthcare Services is comprised of the SelectRx Pharmacy, a specialized medication management pharmacy, and Healthcare Select which proactively connects its members with best-in-class healthcare services that fit each member’s unique healthcare needs. The platform improves health outcomes and lowers healthcare costs through proactive engagement and access to high-value healthcare solutions.

Investor Relations:
Sloan Bohlen
877-678-4083
investorrelations@selectquote.com

Media:
Matt Gunter
913-286-4931
matt.gunter@selectquote.com

Source: SelectQuote, Inc.

SelectQuote (SLQT) – Fiscal Q3 Beat; Strategic Initiatives Paying Off


Friday, May 10, 2024

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Impressive results. The company reported fiscal Q3 revenue of $376.4 million, beating our estimate of $341.8 million. Adj. EBITDA in the quarter was $46.6 million, also beating our estimate, which was $40.3 million. The robust 26% revenue growth was driven primarily by Pharmacy revenue, which grew 80% over the prior year period.

Strong OEP. Revenue from the Senior segment was 20% better than our estimate, indicating a favorable Medicare Advantage Open Enrollment Period for the company. Notably, Senior segment adj. EBITDA margins were 30% in the quarter.   


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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Release – SelectQuote, Inc. Reports Third Quarter 2024 Results

Research News and Market Data on SLQT

05/09/2024

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Third Quarter of Fiscal Year 2024 – Consolidated Earnings Highlights

  • Revenue of $376.4 million
  • Net income of $8.6 million
  • Adjusted EBITDA* of $46.6 million

Raising Fiscal Year 2024 Guidance Ranges:

  • Revenue expected in a range of $1.25 billion to $1.3 billion vs prior range of $1.23 billion to $1.3 billion
  • Net loss expected in a range of $34 million to $21 million vs prior range of $45 million to $22 million
  • Adjusted EBITDA* expected in a range of $100 million to $110 million vs prior range of $90 million to $105 million

Third Quarter of Fiscal Year 2024 – Segment Highlights

Senior

  • Revenue of $204.3 million
  • Adjusted EBITDA* of $61.5 million
  • Approved Medicare Advantage policies of 185,716

Healthcare Services

  • Revenue of $124.2 million
  • Adjusted EBITDA* of $1.6 million
  • Over 75,000 SelectRx members

Life

  • Revenue of $40.7 million
  • Adjusted EBITDA* of $3.1 million

Auto & Home

  • Revenue of $9.1 million
  • Adjusted EBITDA* of $3.6 million

OVERLAND PARK, Kan.–(BUSINESS WIRE)– SelectQuote, Inc. (NYSE: SLQT) reported consolidated revenue for the third quarter of fiscal year 2024 of $376.4 million, compared to consolidated revenue for the third quarter of fiscal year 2023 of $299.4 million. Consolidated net income for the third quarter of fiscal year 2024 was $8.6 million, compared to consolidated net income for the third quarter of fiscal year 2023 of $9.3 million. Finally, consolidated Adjusted EBITDA* for the third quarter of fiscal year 2024 was $46.6 million, compared to consolidated Adjusted EBITDA* for the third quarter of fiscal year 2023 of $44.0 million.

Chief Executive Officer Tim Danker commented, “SelectQuote outperformed our own expectations for the 9th consecutive quarter, and the company has never been better positioned to drive shareholder value. We firmly believe SelectQuote can amplify the strong operating results achieved over the past two years since our foundational strategic redesign.”

“Our Senior business completed another highly successful Medicare Advantage busy season in the quarter, which produced stable and attractive economics across both policy growth, LTV expansion, and operating efficiency. The segment’s core tenured agents helped over 185,000 Americans find the right Medicare Advantage policy and did so with strong overall cost per policy and efficient close rates, which drove a Senior Adjusted EBITDA margin above 30% in one of our highest open enrollment period (OEP) quarters for revenue in company history. The success in our Senior business also enhanced the continued expansion of our Healthcare Services business, which saw SelectRx grow by over 12,000 members, significantly exceeding our original outlook. Overall, our holistic healthcare platform created new customers at a highly efficient revenue to customer acquisition cost of over 4x, which will drive significant Adjusted EBITDA contribution as Healthcare Services continues to scale.”

Mr. Danker concluded, “The teams at SelectQuote and our leadership are energized about the successes experienced year-to-date. We have conviction that 2024 will prove to be an inflection point in our company’s history, and SelectQuote is poised to leverage our unique healthcare platform to drive attractive returns for our shareholders in the quarters and years ahead.”

Segment Results

We currently report on four segments: 1) Senior, 2) Healthcare Services, 3) Life, and 4) Auto & Home. The performance measures of the segments include total revenue, Adjusted EBITDA,* and Adjusted EBITDA Margin.* Costs of revenue, cost of goods sold-pharmacy revenue, marketing and advertising, selling, general, and administrative, and technical development operating expenses that are directly attributable to a segment are reported within the applicable segment. Indirect costs of revenue, marketing and advertising, selling, general, and administrative, and technical development operating expenses are allocated to each segment based on varying metrics such as headcount. Adjusted EBITDA is calculated as total revenue for the applicable segment less direct and allocated costs of revenue, cost of goods sold, marketing and advertising, technical development, and selling, general, and administrative operating costs and expenses, excluding depreciation and amortization expense; gain or loss on disposal of property, equipment, and software; share-based compensation expense; and non-recurring expenses such as severance payments and transaction costs.

Senior

Financial Results

The following table provides the financial results for the Senior segment for the periods presented:

 Three Months Ended March 31,   Nine Months Ended March 31,  
(in thousands)2024 2023 % Change 2024 2023 % Change
Revenue$204,259  $185,200  10% $541,705  $486,541  11%
Adjusted EBITDA* 61,494   59,166  4%  138,871   138,933  %
Adjusted EBITDA Margin* 30%  32%    26%  29%  

Operating Metrics

Submitted Policies

Submitted policies are counted when an individual completes an application with our licensed agent and provides authorization to the agent to submit the application to the insurance carrier partner. The applicant may have additional actions to take before the application will be reviewed by the insurance carrier.

The following table shows the number of submitted policies for the periods presented:

 Three Months Ended March 31,   Nine Months Ended March 31,  
 2024 2023 % Change 2024 2023 % Change
Medicare Advantage226,692 196,372 15% 602,936 538,247 12%
Medicare Supplement650 675 (4)% 2,334 2,905 (20)%
Dental, Vision and Hearing16,588 21,175 (22)% 48,892 59,513 (18)%
Prescription Drug Plan665 416 60% 2,696 2,082 29%
Other774 1,864 (58)% 3,724 5,402 (31)%
Total245,369 220,502 11% 660,582 608,149 9%
*See “Non-GAAP Financial Measures” below.

Approved Policies

Approved policies represents the number of submitted policies that were approved by our insurance carrier partners for the identified product during the indicated period. Not all approved policies will go in force.

The following table shows the number of approved policies for the periods presented:

 Three Months Ended March 31,   Nine Months Ended March 31,  
 2024 2023 % Change 2024 2023 % Change
Medicare Advantage185,716 165,530 12% 517,973 467,540 11%
Medicare Supplement445 557 (20)% 1,578 2,184 (28)%
Dental, Vision and Hearing14,042 16,968 (17)% 41,474 47,940 (13)%
Prescription Drug Plan1,114 521 114% 2,684 1,794 50%
Other789 1,029 (23)% 2,834 3,932 (28)%
Total202,106 184,605 9% 566,543 523,390 8%

Lifetime Value of Commissions per Approved Policy

Lifetime value of commissions per approved policy represents commissions estimated to be collected over the estimated life of an approved policy based on multiple factors, including but not limited to, contracted commission rates, carrier mix and expected policy persistency with applied constraints. The lifetime value of commissions per approved policy is equal to the sum of the commission revenue due upon the initial sale of a policy, and when applicable, an estimate of future renewal commissions.

The following table shows the lifetime value of commissions per approved policy for the periods presented:

 Three Months Ended March 31,   Nine Months Ended March 31,  
(dollars per policy):2024 2023 % Change 2024 2023 % Change
Medicare Advantage$995 $965 3% $923  $888 4%
Medicare Supplement 1,271  871 46%  1,108   994 11%
Dental, Vision and Hearing 101  91 11%  100   95 5%
Prescription Drug Plan 237  194 22%  237   211 12%
Other 36  123 (71)%  (3)  100 (103)%

Healthcare Services

Financial Results

The following table provides the financial results for the Healthcare Services segment for the periods presented:

 Three Months Ended March 31,   Nine Months Ended March 31,  
(in thousands)2024 2023 % Change 2024 2023 % Change
Revenue$124,207  $70,725  76% $333,284  $169,270  97%
Adjusted EBITDA* 1,609   (3,366) 148%  6,911   (24,456) 128%
Adjusted EBITDA Margin* 1%  (5)%    2%  (14)%  
*See “Non-GAAP Financial Measures” below.

Operating Metrics

Total Members

The total number of SelectRx members represents the amount of customers to which an order has been shipped, as this is the primary key driver of revenue for Healthcare Services.

The following table shows the total number of SelectRx members for the date presented:

  March 31, 2024 March 31, 2023
Total SelectRx Members 75,074 44,993

Prescriptions Per Day

Prescriptions per day represents the total average prescriptions shipped per business day, as this is a primary key driver of revenue for Healthcare Services.

The following table shows the prescriptions shipped per day for the periods presented:

  Three Months Ended March 31, Nine Months Ended March 31,
  2024 2023 2024 2023
Prescriptions Per Day 20,216 11,737 17,582 9,753

Combined Senior and Healthcare Services – Consumer Per Unit Economics

The opportunity to leverage our existing database and distribution model to improve access to healthcare services for our consumers has created a need for us to review our key metrics related to our per unit economics. As we think about the revenue and expenses for Healthcare Services, we note that they are derived from the marketing acquisition costs associated with the sale of an MA or MS policy, some of which costs are allocated directly to Healthcare Services, and therefore determined that our per unit economics measure should include components from both Senior and Healthcare Services. See details of revenue and expense items included in the calculation below.

Combined Senior and Healthcare Services consumer per unit economics represents total MA and MS commissions; other product commissions; other revenues, including revenues from Healthcare Services; and operating expenses associated with Senior and Healthcare Services, each shown per number of approved MA and MS policies over a given time period. Management assesses the business on a per-unit basis to help ensure that the revenue opportunity associated with a successful policy sale is attractive relative to the marketing acquisition cost. Because not all acquired leads result in a successful policy sale, all per-policy metrics are based on approved policies, which is the measure that triggers revenue recognition.

The MA and MS commission per MA/MS policy represents the LTV for policies sold in the period. Other commission per MA/MS policy represents the LTV for other products sold in the period, including DVH prescription drug plan, and other products, which management views as additional commission revenue on our agents’ core function of MA/MS policy sales. Pharmacy revenue per MA/MS policy represents revenue from SelectRx, and other revenue per MA/MS policy represents revenue from Population Health, production bonuses, marketing development funds, lead generation revenue, and adjustments from the Company’s reassessment of its cohorts’ transaction prices. Total operating expenses per MA/MS policy represents all of the operating expenses within Senior and Healthcare Services. The revenue to customer acquisition cost (“CAC”) multiple represents total revenue as a multiple of total marketing acquisition costs, which represents the direct costs of acquiring leads. These costs are included in marketing and advertising expense within the total operating expenses per MA/MS policy.

The following table shows combined Senior and Healthcare Services consumer per unit economics for the periods presented. Based on the seasonality of Senior and the fluctuations between quarters, we believe that the most relevant view of per unit economics is on a rolling 12-month basis. All per MA/MS policy metrics below are based on the sum of approved MA/MS policies, as both products have similar commission profiles.

 Twelve Months Ended March 31,
(dollars per approved policy):2024 2023
Medicare Advantage and Medicare Supplement approved policies 630,013   586,238 
Medicare Advantage and Medicare Supplement commission per MA/MS policy$907  $886 
Other commission per MA/MS policy 10   15 
Pharmacy revenue per MA/MS policy 641   320 
Other revenue per MA/MS policy 126   66 
Total revenue per MA/MS policy 1,684   1,287 
Total operating expenses per MA/MS policy (1,425)  (1,167)
Adjusted EBITDA per MA/MS policy (1)$259  $120 
Adjusted EBITDA Margin per MA/MS policy (1) 15%  9%
Revenue/CAC multiple4.2X 3.5X
(1) These financial measures are not calculated in accordance with GAAP. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures” in the Company’s Quarterly Report on Form 10-Q for information regarding our use of these non-GAAP financial measures and a reconciliation of such measures to their nearest comparable financial measures calculated and presented in accordance with GAAP.

Total revenue per MA/MS policy increased 31% for the twelve months ended March 31, 2024, compared to the twelve months ended March 31, 2023, primarily due to the increase in pharmacy revenue. Total operating expenses per MA/MS policy increased 22% for the twelve months ended March 31, 2024, compared to the twelve months ended March 31, 2023, primarily driven by increase in cost of goods sold-pharmacy revenue for SelectRx due to the growth of the business.

Life

Financial Results

The following table provides the financial results for the Life segment for the periods presented:

 Three Months Ended March 31,   Nine Months Ended March 31,  
(in thousands)2024 2023 % Change 2024 2023 % Change
Revenue$40,686  $36,950  10% $115,855  $107,780  7%
Adjusted EBITDA* 3,138   5,303  (41)%  12,945   16,371  (21)%
Adjusted EBITDA Margin* 8%  14%    11%  15%  

Operating Metrics

Life premium represents the total premium value for all policies that were approved by the relevant insurance carrier partner and for which the policy document was sent to the policyholder and payment information was received by the relevant insurance carrier partner during the indicated period. Because our commissions are earned based on a percentage of total premium, total premium volume for a given period is the key driver of revenue for our Life segment.

*See “Non-GAAP Financial Measures” below.

The following table shows term and final expense premiums for the periods presented:

 Three Months Ended March 31,   Nine Months Ended March 31,  
(in thousands)2024 2023 % Change 2024 2023 % Change
Term Premiums$16,788 $17,512 (4)% $52,376 $48,433 8%
Final Expense Premiums 23,724  19,308 23%  62,811  58,766 7%
Total$40,512 $36,820 10%  115,187  107,199 7%

Auto & Home

Financial Results

The following table provides the financial results for the Auto & Home segment for the periods presented:

 Three Months Ended March 31,   Nine Months Ended March 31,  
(in thousands)2024 2023 % Change 2024 2023 % Change
Revenue$9,134  $8,238  11% $28,649  $23,128  24%
Adjusted EBITDA* 3,609   2,591  39%  11,654   7,315  59%
Adjusted EBITDA Margin* 40%  31%    41%  32%  

Operating Metrics

Auto & Home premium represents the total premium value of all new policies that were approved by our insurance carrier partners during the indicated period. Because our commissions are earned based on a percentage of total premium, total premium volume for a given period is the key driver of revenue for our Auto & Home segment.

The following table shows premiums for the periods presented:

 Three Months Ended March 31,   Nine Months Ended March 31,  
(in thousands):2024 2023 % Change 2024 2023 % Change
Premiums$14,180 $12,828 11% $42,746 $36,456 17%

Amendment to Credit Agreement

On May 8, 2024, the Company and its lenders agreed to amend the Company’s credit agreement to extend the maturity date with respect to $683.8 million of extended term loans from February 15, 2025 to May 15, 2025. The amendment also provides for a minimum asset coverage ratio and minimum liquidity requirements for the extension period. Additional information regarding the amendment will be included in the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2024.

Earnings Conference Call

SelectQuote, Inc. will host a conference call with the investment community today, Thursday, May 9, 2024, beginning at 9:00 a.m. ET. To register for this conference call, please use this link: https://www.netroadshow.com/events/login?show=2a79382d&confId=63927. After registering, a confirmation will be sent via email, including dial-in details and unique conference call codes for entry. Registration is open through the live call, but to ensure you are connected for the full call we suggest registering at least 10 minutes before the start of the call. The event will also be webcasted live via our investor relations website https://ir.selectquote.com/investor-home/default.aspx.

*See “Non-GAAP Financial Measures” below.

Non-GAAP Financial Measures

This release includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. To supplement our financial statements presented in accordance with GAAP and to provide investors with additional information regarding our GAAP financial results, we have presented in this release Adjusted EBITDA and Adjusted EBITDA Margin, which are non-GAAP financial measures. These non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly titled measures presented by other companies. We define Adjusted EBITDA as income (loss) before interest expense, income tax expense (benefit), depreciation and amortization, and certain add-backs for non-cash or non-recurring expenses, including restructuring and share-based compensation expenses. The most directly comparable GAAP measure is net income (loss). We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue. The most directly comparable GAAP measure is net income margin. We monitor and have presented in this release Adjusted EBITDA and Adjusted EBITDA Margin because they are key measures used by our management and Board of Directors to understand and evaluate our operating performance, to establish budgets and to develop operational goals for managing our business. In particular, we believe that excluding the impact of these expenses in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core operating performance.

We believe that these non-GAAP financial measures help identify underlying trends in our business that could otherwise be masked by the effect of the expenses that we exclude in the calculations of these non-GAAP financial measures. Accordingly, we believe these financial measures provide useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects. Reconciliations of the differences between the non-GAAP financial measures included herein and their most directly comparable GAAP financial measures are set forth below beginning on page 12.

Forward Looking Statements

This release contains forward-looking statements. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates, and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.

There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: the impacts of the COVID-19 pandemic and any other public health events, our reliance on a limited number of insurance carrier partners and any potential termination of those relationships or failure to develop new relationships; existing and future laws and regulations affecting the health insurance market; changes in health insurance products offered by our insurance carrier partners and the health insurance market generally; insurance carriers offering products and services directly to consumers; changes to commissions paid by insurance carriers and underwriting practices; competition with brokers, including exclusively online brokers and carriers who opt to sell policies directly to consumers; competition from government-run health insurance exchanges; developments in the U.S. health insurance system; our dependence on revenue from carriers in our senior segment and downturns in the senior health as well as life, automotive and home insurance industries; our ability to develop new offerings and penetrate new vertical markets; risks from third-party products; failure to enroll individuals during the Medicare annual enrollment period; our ability to attract, integrate and retain qualified personnel; our dependence on lead providers and ability to compete for leads; failure to obtain and/or convert sales leads to actual sales of insurance policies; access to data from consumers and insurance carriers; accuracy of information provided from and to consumers during the insurance shopping process; cost-effective advertisement through internet search engines; ability to contact consumers and market products by telephone; global economic conditions, including inflation; disruption to operations as a result of future acquisitions; significant estimates and assumptions in the preparation of our financial statements; impairment of goodwill; potential litigation and other legal proceedings or inquiries; our existing and future indebtedness; our ability to maintain compliance with our debt covenants and meet our scheduled repayment obligations under our debt arrangements; our ability to access additional capital on acceptable terms; failure to protect our intellectual property and our brand; fluctuations in our financial results caused by seasonality; accuracy and timeliness of commissions reports from insurance carriers; timing of insurance carriers’ approval and payment practices; factors that impact our estimate of the constrained lifetime value of commissions per policyholder; changes in accounting rules, tax legislation and other legislation; disruptions or failures of our technological infrastructure and platform; failure to maintain relationships with third-party service providers; cybersecurity breaches or other attacks involving our systems or those of our insurance carrier partners or third-party service providers; our ability to protect consumer information and other data; failure to market and sell Medicare plans effectively or in compliance with laws; and other factors related to our pharmacy business, including manufacturing or supply chain disruptions, access to and demand for prescription drugs, and regulatory changes or other industry developments that may affect our pharmacy operations. For a further discussion of these and other risk factors that could impact our future results and performance, see the section entitled “Risk Factors” in the most recent Annual Report on Form 10-K and subsequent periodic reports filed by us with the Securities and Exchange Commission. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as otherwise required by law, we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

About SelectQuote:

Founded in 1985, SelectQuote (NYSE: SLQT) provides solutions that help consumers protect their most valuable assets: their families, health, and property. The company pioneered the model of providing unbiased comparisons from multiple, highly-rated insurance companies allowing consumers to choose the policy and terms that best meet their unique needs. Two foundational pillars underpin SelectQuote’s success: a strong force of highly-trained and skilled agents who provide a consultative needs analysis for every consumer, and proprietary technology that sources and routes high-quality leads.

With an ecosystem offering high touchpoints for consumers across insurance, medicare, pharmacy, and value-based care, the company now has four core business lines: SelectQuote Senior, SelectQuote Healthcare Services, SelectQuote Life, and SelectQuote Auto and Home. SelectQuote Senior serves the needs of a demographic that sees around 10,000 people turn 65 each day with a range of Medicare Advantage and Medicare Supplement plans. SelectQuote Healthcare Services is comprised of the SelectRx Pharmacy, a Patient-Centered Pharmacy Home™ (PCPH) accredited pharmacy, and Population Health, which proactively connects consumers with a wide breadth of healthcare services supporting their needs..

 
SELECTQUOTE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands)
 
 March 31, 2024 June 30, 2023
ASSETS   
CURRENT ASSETS:   
Cash and cash equivalents$37,808  $83,156 
Accounts receivable, net of allowances of $6.5 million and $2.7 million, respectively 253,083   154,565 
Commissions receivable-current 69,165   111,148 
Other current assets 24,115   14,355 
Total current assets 384,171   363,224 
COMMISSIONS RECEIVABLE—Net 763,958   729,350 
PROPERTY AND EQUIPMENT—Net 22,536   27,452 
SOFTWARE—Net 13,952   14,740 
OPERATING LEASE RIGHT-OF-USE ASSETS 19,341   23,563 
INTANGIBLE ASSETS—Net 7,926   10,200 
GOODWILL 29,136   29,136 
OTHER ASSETS 4,119   21,586 
TOTAL ASSETS$1,245,139  $1,219,251 
    
LIABILITIES AND SHAREHOLDERS’ EQUITY   
CURRENT LIABILITIES:   
Accounts payable$61,168  $27,577 
Accrued expenses 21,058   16,993 
Accrued compensation and benefits 57,483   49,966 
Operating lease liabilities—current 4,663   5,175 
Current portion of long-term debt 37,717   33,883 
Contract liabilities 3,655   1,691 
Other current liabilities 4,227   1,972 
Total current liabilities 189,971  137,257 
LONG-TERM DEBT, NET—less current portion 648,331   664,625 
DEFERRED INCOME TAXES 35,057   39,581 
OPERATING LEASE LIABILITIES 22,326   27,892 
OTHER LIABILITIES 2,649   2,926 
Total liabilities 898,334   872,281 
    
COMMITMENTS AND CONTINGENCIES   
    
SHAREHOLDERS’ EQUITY:   
Common stock, $0.01 par value 1,692   1,669 
Additional paid-in capital 577,389   567,266 
Accumulated deficit (238,752)  (235,644)
Accumulated other comprehensive income 6,476   13,679 
Total shareholders’ equity 346,805   346,970 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$1,245,139  $1,219,251 
SELECTQUOTE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) (In thousands)
 
 Three Months Ended March 31, Nine Months Ended March 31,
 2024 2023 2024 2023
REVENUE:       
Commission$230,763  $197,258  $611,744   533,627 
Pharmacy 120,282   66,948   323,865   159,641 
Other 25,355   35,192   78,958   87,802 
Total revenue 376,400   299,398   1,014,567   781,070 
        
OPERATING COSTS AND EXPENSES:       
Cost of revenue 84,315   79,186   254,250   235,827 
Cost of goods sold—pharmacy revenue 106,172   62,302   284,360   154,753 
Marketing and advertising 109,276   90,205   288,676   237,724 
Selling, general, and administrative 34,971   27,544   97,049   86,662 
Technical development 8,604   6,434   24,291   18,860 
Total operating costs and expenses 343,338   265,671   948,626   733,826 
        
INCOME FROM OPERATIONS 33,062   33,727   65,941   47,244 
        
INTEREST EXPENSE, NET (24,330)  (21,105)  (70,141)  (58,885)
OTHER INCOME (EXPENSE,) NET (12)  (206)  (51)  (118)
INCOME (LOSS) BEFORE INCOME TAX EXPENSE (BENEFIT) 8,720   12,416   (4,251)  (11,759)
INCOME TAX EXPENSE (BENEFIT) 169   3,152   (1,143)  (1,053)
        
NET INCOME (LOSS)$8,551  $9,264  $(3,108)  (10,706)
        
NET INCOME (LOSS) PER SHARE:       
Basic$0.05  $0.06  $(0.02) $(0.06)
Diluted$0.05  $0.06  $(0.02) $(0.06)
        
WEIGHTED-AVERAGE COMMON STOCK OUTSTANDING USED IN PER SHARE AMOUNTS:       
Basic 169,070   166,543   168,291   165,951 
Diluted 170,956   167,905   168,291   165,951 
        
OTHER COMPREHENSIVE INCOME (LOSS) NET OF TAX:       
Gain (loss) on cash flow hedge (1,771)  (2,661)  (7,203)  1,358 
OTHER COMPREHENSIVE INCOME (LOSS) (1,771)  (2,661)  (7,203)  1,358 
COMPREHENSIVE INCOME (LOSS)$6,780  $6,603  $(10,311) $(9,348)
SELECTQUOTE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands)
 
 Nine Months Ended March 31,
 2024 2023
CASH FLOWS FROM OPERATING ACTIVITIES:   
Net loss$(3,108) $(10,706)
Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities:   
Depreciation and amortization 18,591   21,087 
Loss on disposal of property, equipment, and software 13   390 
Share-based compensation expense 10,512   8,525 
Deferred income taxes (2,151)  (1,416)
Amortization of debt issuance costs and debt discount 4,863   6,250 
Write-off of debt issuance costs 293   710 
Accrued interest payable in kind 14,323   8,450 
Non-cash lease expense 1,945   3,115 
Changes in operating assets and liabilities:   
Accounts receivable, net (98,519)  (62,738)
Commissions receivable 7,375   17,092 
Other assets (2,620)  3,166 
Accounts payable and accrued expenses 36,073   6,440 
Operating lease liabilities (3,802)  (4,331)
Other liabilities 11,453   (8,869)
Net cash used in operating activities (4,759)  (12,835)
CASH FLOWS FROM INVESTING ACTIVITIES:   
Purchases of property and equipment (3,114)  (1,056)
Proceeds from sales of property and equipment 253    
Purchases of software and capitalized software development costs (6,065)  (5,804)
Net cash used in investing activities (8,926)  (6,860)
CASH FLOWS FROM FINANCING ACTIVITIES:   
Payments on Term Loans (30,412)  (17,833)
Payments on other debt (112)  (123)
Proceeds from common stock options exercised and employee stock purchase plan 8   1,187 
Payments of tax withholdings related to net share settlement of equity awards (374)  (40)
Payments of debt issuance costs (773)  (10,110)
Payment of acquisition holdback    (2,335)
Net cash used in financing activities (31,663)  (29,254)
NET DECREASE IN CASH AND CASH EQUIVALENTS (45,348)  (48,949)
CASH AND CASH EQUIVALENTS—Beginning of period 83,156   140,997 
CASH AND CASH EQUIVALENTS—End of period$37,808  $92,048 
SELECTQUOTE, INC. AND SUBSIDIARIES Net Income (Loss) to Adjusted EBITDA Reconciliation (Unaudited)
 
 Three Months Ended March 31, 2024
(in thousands)Senior Healthcare Services Life Auto & Home Corp & Elims Consolidated
Revenue$204,259  $124,207  $40,686  $9,134  $(1,886) $376,400 
Operating expenses (142,765)  (122,598)  (37,548)  (5,524)  (21,355)  (329,790)
Other income (expense), net          (1)  (11)  (12)
Adjusted EBITDA$61,494  $1,609  $3,138  $3,609  $(23,252) $46,598 
Share-based compensation expense           (3,515)
Transaction costs           (3,325)
Depreciation and amortization           (6,704)
Loss on disposal of property, equipment, and software           (4)
Interest expense, net           (24,330)
Income tax expense           (169)
Net income          $8,551 
 Three Months Ended March 31, 2023
(in thousands)Senior Healthcare Services Life Auto & Home Corp & Elims Consolidated
Revenue$185,200  $70,725  $36,950  $8,238  $(1,715) $299,398 
Operating expenses (126,034)  (74,091)  (31,446)  (5,648)  (17,947)  (255,166)
Other income (expense), net       (201)  1   (6)  (206)
Adjusted EBITDA$59,166  $(3,366) $5,303  $2,591  $(19,668) $44,026 
Share-based compensation expense           (2,959)
Transaction costs           (433)
Depreciation and amortization           (7,098)
Loss on disposal of property, equipment, and software           (15)
Interest expense, net           (21,105)
Income tax expense           (3,152)
Net income          $9,264 
 Nine Months Ended March 31, 2024
(in thousands)Senior Healthcare Services Life Auto & Home Corp & Elims Consolidated
Revenue$541,705  $333,284  $115,855  $28,649  $(4,926) $1,014,567 
Operating expenses (402,834)  (326,373)  (102,910)  (16,994)  (62,770)  (911,881)
Other income (expense), net          (1)  (50)  (51)
Adjusted EBITDA$138,871  $6,911  $12,945  $11,654  $(67,746) $102,635 
Share-based compensation expense           (10,512)
Transaction costs           (7,629)
Depreciation and amortization           (18,591)
Loss on disposal of property, equipment, and software           (13)
Interest expense, net           (70,141)
Income tax benefit           1,143 
Net loss          $(3,108)
 Nine Months Ended March 31, 2023
(in thousands)Senior Healthcare Services Life Auto & Home Corp & Elims Consolidated
Revenue$486,541  $169,270  $107,780  $23,128  $(5,649) $781,070 
Operating expenses (347,608)  (193,726)  (91,409)  (15,812)  (52,270)  (700,825)
Other income (expense), net          (1)  (117)  (118)
Adjusted EBITDA$138,933  $(24,456) $16,371  $7,315  $(58,036) $80,127 
Share-based compensation expense           (8,525)
Transaction costs           (3,003)
Depreciation and amortization           (21,087)
Loss on disposal of property, equipment, and software           (386)
Interest expense, net           (58,885)
Income tax benefit           1,053 
Net loss          $(10,706)
SELECTQUOTE, INC. AND SUBSIDIARIES Net Loss to Adjusted EBITDA Reconciliation (Unaudited) 
 
Guidance net loss to Adjusted EBITDA reconciliation, year ending June 30, 2024:
 
(in thousands)Range
Net loss$(34,000) $(21,000)
Income tax benefit (12,000)  (8,000)
Interest expense, net 96,000   94,000 
Depreciation and amortization 26,000   24,000 
Share-based compensation expense 14,000   13,000 
Non-recurring expenses 10,000   8,000 
Adjusted EBITDA$100,000  $110,000 

Investor Relations:

Sloan Bohlen

877-678-4083

investorrelations@selectquote.com

Media:

Matt Gunter

913-286-4931

matt.gunter@selectquote.com

Source: SelectQuote, Inc.

SelectQuote (SLQT) – Highlights from Noble Virtual Conference; Synergistic Business Model Driving Favorable Growth


Friday, May 03, 2024

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Noble Virtual Conference. On April 17, management presented at Noble’s Virtual Healthcare Equity Conference. Management highlighted several key attributes of the company, such as its strong customer acquisition capabilities, synergistic business model, and long history of serving American consumers, among others.

Understanding the customer. Through its licensed agents, SelectQuote has roughly 30k conversations per day with American seniors, resulting in deep insights into the needs of American consumers, such as Medicare beneficiaries. This allows the company to refine its offerings in ways that add value for customers and lead to return customers.


Get the Full Report

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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Release – SelectQuote to Release Fiscal Third Quarter 2024 Earnings on May 9; Will Present at RBC’s Global Healthcare Conference on May 15

Research News and Market Data on SLQT

05/01/2024

OVERLAND PARK, Kan.–(BUSINESS WIRE)– SelectQuote, Inc. (NYSE: SLQT), a leading distributor of Medicare insurance policies and owner of an emerging Healthcare Services platform, today announced the date for the release of its third quarter financial results and upcoming RBC conference presentation.

Fiscal Third Quarter 2024 Earnings Conference Call

SelectQuote will release its fiscal third quarter 2024 financial results before market open on Thursday, May 9, 2024. Chief Executive Officer, Tim Danker, and Chief Financial Officer, Ryan Clement, will host a conference call on the day of the release (May 9, 2024) at 9:00 am ET to discuss the results.

To register for this conference call, please use this link: https://www.netroadshow.com/events/login?show=2a79382d&confId=63927

After registering, a confirmation will be sent via email, including dial in details and unique conference call codes for entry. Registration is open through the live call, but to ensure you are connected for the full call we suggest registering a day in advance or at minimum 10 minutes before the start of the call. The event will also be webcasted live via our investor relations website https://ir.selectquote.com/investor-home/default.aspx or via this link.

Upcoming Investor Conference Attendance

Tim Danker, Chief Executive Officer, Ryan Clement, Chief Financial Officer, and Bob Grant, President, will participate in a fireside chat at RBC’s Global Healthcare Conference in New York on May 15, 2024, beginning at approximately 9:00 am ET. Management will also be available for one-on-one and small group meetings.

The presentation will be webcasted live. Interested parties can join the webcast at this link or from our Investor Relations website here.

About SelectQuote:

Founded in 1985, SelectQuote (NYSE: SLQT) provides solutions that help consumers protect their most valuable assets: their families, health, and property. The company pioneered the model of providing unbiased comparisons from multiple, highly-rated insurance companies allowing consumers to choose the policy and terms that best meet their unique needs. Two foundational pillars underpin SelectQuote’s success: a strong force of highly-trained and skilled agents who provide a consultative needs analysis for every consumer, and proprietary technology that sources and routes high-quality leads.

With an ecosystem offering high touchpoints for consumers across insurance, medicare, pharmacy, and value-based care, the company now has four core business lines: SelectQuote Senior, SelectQuote Healthcare Services, SelectQuote Life, and SelectQuote Auto and Home. SelectQuote Senior serves the needs of a demographic that sees around 10,000 people turn 65 each day with a range of Medicare Advantage and Medicare Supplement plans. SelectQuote Healthcare Services is comprised of the SelectRx Pharmacy, a Patient-Centered Pharmacy Home™ (PCPH) accredited pharmacy, and Healthcare Select which proactively connects consumers with a wide breadth of healthcare services supporting their needs.

Investor Relations:

Sloan Bohlen

877-678-4083

investorrelations@selectquote.com

Media:

Matt Gunter

913-653-4375

matt.gunter@selectquote.com

Source: SelectQuote, Inc.