GoHealth, Inc. · NASDAQ:GOCO
GoHealth — Cantor Global Healthcare Conference 2020
17 slides from GoHealth's conference presentation, Sep 16, 2020
Slide 1: Cantor Global Healthcare Conference
Cantor Global Healthcare Conference September 16, 2020
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this presentation may be forward-looking statements. Statement
Slide 3: GoHealth Is Well Positioned to Capture Share in the Large and Expanding DTC Medicare Market
GoHealth Is Well Positioned to Capture Share in the Large and Expanding DTC Medicare Market 19-Year Track Record of Innovation and Execution, Driving Consistent Industry-Leading Growth Aging Baby Boomers Driving Growth in Medicare Enrollments3 (~10,000 people turning 65 every day) 76.7 66% 59.9 26.1
Slide 4: Largest DTC Medicare Platform
Largest DTC Medicare Platform Powerful Technology Solution with Highly Trained Agents Lead to Industry Leading Margins Key Differentiators: Convenient access to Efficient customer Consumers Carriers large selection of plans acquisition at scale Omni-Channel Customer Marketing Acquisition Platform Fe
Slide 5: Industry Leading Results
Industry Leading Results Trailing Twelve Months (TTM) June 30, 2020 GoHealth is the Biggest, Fastest Growing, and Most Profitable Amongst Our Peers Revenue Adj. EBITDA ($ in Millions) ($ in Millions) Revenue Adj. EBITDA 124% 83% 58% 31% 24% 29% Growth Margin $664 $208 1 GoHealth Peer A Peer B Source
Slide 6: GoHealth: The Leading, End-to-End Health Insurance Marketplace
GoHealth: The Leading, End-to-End Health Insurance Marketplace GoHealth is the leading DTC Medicare telesales/digital distributor 1H 2019 vs 1H 2020 FY 2019 vs FY 2020 Outlook Revenue ($ in Millions) $890 $268 87% +56% to +65% $144 $840 $540 1H 2019 1H 2020 FY 2019 FY 2020 Adj. EBITDA1 ($ in Million
Slide 7: Laser Focused on Growth Through an LTV/CAC Lens
Laser Focused on Growth Through an LTV/CAC Lens Technology and Data Support Efforts to Increase LTV and Lower CAC, De-Averaging the Market Enhance Expand Carriers / Improve Consumer Carriers Persistency and Products “Fit Score” Conversion + Drive Benefit Provide Broad Usage and Capture Other Encompa
Slide 8: Lead Scoring and Routing to Expert Agents Drives LTV/CAC
Lead Scoring and Routing to Expert Agents Drives LTV/CAC Utilizing Matching Technology to Maximize Conversion and Customer Satisfaction Illustrative Example of Matching Technology Example 2: Cindy’s Jim’s SNP $1,140 $950 LTV LTV Name: Cindy Name: Karen Gender: Female Gender: Female Age: 70 Years Age
Slide 9: LTV Per Approved Submission vs LTV Per Approved Policy/Member
LTV Per Approved Submission vs LTV Per Approved Policy/Member 3 Months ended June 30, 2020 Need to compare LTVs on an apples-to-apples basis based on comparable starting points Lifecycle of Submission 90 Day AEP a consumer: (CAS) Effectuation Retention Renewal ... $1,256 $1,104 $905 $945 LTV per Car
Slide 10: LTV – A Multi Variable Proxy for Future Cash Flow
LTV – A Multi Variable Proxy for Future Cash Flow Cash collections demonstrate accuracy of LTV Modeling Consumer Demographics Plan Type Carrier 1H 2020 LTV Cash 101.5% of Geography Expectations Commission Rates Churn 1H 2020 Cash Collections of $162M (+108% YoY) 10
Slide 11: Driving Higher Persistency in YTD New Business
Driving Higher Persistency in YTD New Business Persistency Improved by 4% in Q2 2020 YoY +4% Jan Feb Mar Apr May Jun 1Note: Represents snapshot of cohort active rate for same period in 2019 and 2020 11
Slide 12: Medicare Cash Payback in Under 12 Months in FY 2019
Medicare Cash Payback in Under 12 Months in FY 2019 265,584 57,744 25,042 CAS(1) 11,925 FY 2016 FY 2017 FY 2018 FY 2019 Year 1 Cost Year 1 Cash Collected Renewals Collected to-date Renewals to-be Collected 1 Medicare Commissionable Approved Submissions from the Medicare-Internal segment. 2016-2017 a
Slide 13: Deep Carrier Relationships Create Additional Revenue Opportunities
Deep Carrier Relationships Create Additional Revenue Opportunities Future diversified revenue focused on driving better health outcomes Value based care Preferred pharmacy enrollment Additional revenue from Social determinants of health technology & distribution $ services Health risk assessments Te
Slide 14: Expanding Carrier Relationships Supports Future Growth
Expanding Carrier Relationships Supports Future Growth Better Policy Fit and Broader Offerings Drives Persistency and Conversion 2019 2020 Covers 1 of the Top 2 Carriers Covers Both of Top 2 Carriers Rifle-shot approach with Broad policy offerings post Humana and Anthem Aetna, United expansion 28% m
Slide 15: Biggest, Fastest Growing, & Most Profitable
Key Investment Takeaways Largest in Massive and Growing TAM Tech and Data Driving Strong Growth with Best Margins Amongst Peers Biggest, Carrier Relationships Drive Unique Revenue Fastest Growing, & Opportunities with Fast Cash Payback Most Profitable The Bigger We Get, the Better We Get Founder-Led
Slide 16: Q&A and Appendix
Q&A and Appendix 16
Slide 17: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Adjustments to EBITDA ($ in thousands) Description of Adjustments 1H 1H 2020 2019 Represents non-cash share-based compensation expense in 1 Net income (loss) (23,804) 20,278 connection with profits interests Interest expense 15,742 109 Income tax expen