SelectQuote, Inc. (NYSE:SLQT) Q1 2025 Earnings Conference Call November 4, 2024 8:30 AM ET Company Participants Matt Gunter - Investor Relations Tim Danker - Chief Executive Officer Ryan Clement - Chief Financial Officer Bob Grant - President Bill Grant - Chief Operating Officer Conference Call Participants Ben Hendrix - RBC Capital Markets George Sutton - Craig-Hallum Pat McCann - NOBLE Capital Markets Operator Welcome to SelectQuote's First Quarter Earnings [Technical Difficulty]. All lines have been plac ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to 001-39295 (Commission File Number) SelectQuote, Inc. (Exact name of registrant as specified in its charter) Delaware 94-3339273 (State or other ...

| --- | --- | --- | --- | --- | --- | |-------|--------------------------------------------------------|-------|-------|-------|-------| | 1 st | Quarter Fiscal 2025 | | | | | | | Earnings Conference Call Presentation November 4, 2024 | | | | | | | | | | | | | We shop. You save. Disclaimer Forward-Looking Statements This presentation contains forward-looking statements. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance ...

Exhibit 99.1 SelectQuote, Inc. Reports First Quarter of Fiscal Year 2025 Results 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 2 ...

It might be surprising for some to hear that 2024 has been a great year for stocks in the insurance industry. In fact, every single large-cap insurance stock in the United States and Canada trading region has a positive return this year. Additionally, the iShares U.S. Insurance ETF NYSEARCA: IAK has provided a total return of nearly 29%. Some stocks, like Progressive NYSE: PGR, are up more than 50%. SelectQuote NYSE: SLQT is no exception to the success of this industry. Shares are up 54% this year. However, ...

On my morning commute, I tend to drive in silence and take an occasional sip of coffee, but driving home in the afternoons I'll sometimes have my radio tuned to the local station that is my source for getting a Major League My professional background is in church work, but I left that vocation in 2012. In 2015, I earned an MBA from the Aix-Marseille University, located in in Aix-en-Provence in southern France. I currently live and work in the midwest with my spouse, children, and a cat who seems to like me ...

Policy Performance and Trends - Total submitted policies for all products increased 7% for the year ended June 30, 2024, compared to the year ended June 30, 2023, driven by increases in overall close rates (11%), the number of average productive agents (7%), and productivity per agent (9%)[261] - Total submitted policies for all products decreased 25% for the year ended June 30, 2023, compared to the year ended June 30, 2022, due to a strategic shift to reduce the Senior distribution business and focus on Healthcare Services[262] - Total approved policies for all products increased by 6% for the year ended June 30, 2024, compared to the year ended June 30, 2023, with fluctuations primarily due to carrier mix[265] - Total approved policies for all products decreased by 20% for the year ended June 30, 2023, compared to the year ended June 30, 2022[266] - Submitted-to-approved conversion rates improved by 6% for the year ended June 30, 2023, compared to the year ended June 30, 2022[266] Medicare Advantage and Senior Policies - Medicare Advantage plans accounted for 91%, 89%, and 82% of approved Senior policies for the years ended June 30, 2024, 2023, and 2022, respectively[249] - Medicare Advantage enrollment as a share of the eligible Medicare population grew from 19% in 2007 to 51% in 2023 and is projected to grow to 62% by 2033[254] - Senior segment revenue increased by $65.7 million (11%) to $655.8 million in 2024 compared to 2023, driven by a $71.7 million (14%) increase in commissions revenue[309] - Senior segment Medicare Advantage commissions grew by $69.1 million (14%) to $569.6 million in 2024[308] - The Senior segment's revenue is highest in the second and third quarters due to Medicare annual enrollment periods[379] Life Insurance Segment - Term life policies accounted for 45%, 47%, and 36% of new premium within the Life segment for the years ended June 30, 2024, 2023, and 2022, respectively[251] - Life segment revenue grew by $12.1 million (8%) to $157.9 million in 2024, mainly due to an $11.5 million increase in commissions revenue[309] - Adjusted EBITDA from the Life segment decreased by $2.9 million (13%) to $20.2 million for the year ended June 30, 2024, primarily due to a $15.0 million increase in operating costs[315] Auto & Home Segment - Homeowners and 12-month auto products accounted for 74% of new premium within the Auto & Home segment for the years ended June 30, 2024 and 2023, and 76% for the year ended June 30, 2022[252] - Auto & Home segment revenue rose by $14.4 million (66%) to $36.2 million in 2024, driven by a $14.8 million increase in commissions revenue[310] - Adjusted EBITDA from the Auto & Home segment increased by $14.0 million to $14.1 million for the year ended June 30, 2024, driven by a $14.4 million increase in revenue[315] - The company will realign its reportable segments effective July 1, 2024, removing Auto & Home as a separate segment due to reduced revenue growth and resource allocation challenges[300] Healthcare Services and Pharmacy Revenue - Total SelectRx members increased by 68% as of June 30, 2024, compared to June 30, 2023[271] - Average prescriptions shipped per day increased to 18,935 in 2024 from 10,657 in 2023[272] - Pharmacy revenue increased $225.3 million, or 94%, for the year ended June 30, 2024, compared to the year ended June 30, 2023[279] - Healthcare Services segment revenue surged by $226.4 million (90%) to $478.5 million in 2024, primarily due to a $225.3 million increase in SelectRx pharmacy revenue[309] - Healthcare Services pharmacy revenue surged by $225.3 million (94%) to $464.9 million in 2024[308] - SelectRx members increased by 68% in 2024 compared to 2023, contributing to higher medication and compensation costs[284] Revenue and Financial Performance - Total consolidated revenue increased by $318.9 million (32%) to $1,321.8 million in 2024 compared to 2023[308] - Total revenue for the year ended June 2024 was $1,321.8 million, a 31.8% increase from $1,002.8 million in 2023[372] - Net loss for the year ended June 2024 was $34.1 million, compared to a net loss of $58.5 million in 2023[372] - Commissions and other services revenue increased by 12.3% to $856.9 million in 2024 from $763.3 million in 2023[372] - Pharmacy revenue surged by 94.1% to $464.9 million in 2024 from $239.5 million in 2023[372] - Net loss for the fiscal year 2024 was $34.1 million, compared to $58.5 million in 2023 and $297.5 million in 2022[376] Expenses and Costs - Cost of commissions and other services revenue increased by $17.3 million (6%) in 2024 compared to 2023, driven by higher compensation costs[283] - Cost of goods sold-pharmacy revenue surged by $179.0 million (79%) in 2024 compared to 2023, primarily due to a $158.9 million increase in medication costs and a 68% growth in SelectRx members[284] - Marketing and advertising expenses rose by $57.6 million (19%) in 2024 compared to 2023, attributed to a $50.7 million increase in lead costs and higher customer acquisition costs[287] - Selling, general, and administrative expenses increased by $4.5 million (3%) in 2024 compared to 2023, mainly due to an $11.2 million rise in compensation costs related to SelectRx growth[289] - Technical development expenses grew by $7.5 million (29%) in 2024 compared to 2023, driven by a $7.3 million increase in compensation costs for technology personnel[292] - Interest expense, net increased by $12.9 million (16%) in 2024 compared to 2023, due to higher interest rates[293] - Income tax expense increased by $15.7 million (148%) in 2024 compared to 2023, with an effective tax rate of 17.4%[295] - Marketing and advertising expenses increased by 19.1% to $358.9 million in 2024 from $301.2 million in 2023[372] - Technical development expenses rose by 28.9% to $33.5 million in 2024 from $26.0 million in 2023[372] Cash Flow and Financial Position - Net cash provided by operating activities was $15.2 million for the year ended June 30, 2024, compared to $(19.4) million in 2023 and $(338.3) million in 2022[321] - Net cash used in investing activities was $14.8 million for the year ended June 30, 2024, primarily due to $8.3 million in software purchases and $3.4 million in property and equipment purchases[329] - Net cash used in financing activities was $40.9 million for the year ended June 30, 2024, primarily due to $38.9 million of principal payments on Term Loans[333] - The company's cash and cash equivalents totaled $42.7 million as of June 30, 2024, compared to $83.2 million as of June 30, 2023[320] - Cash and cash equivalents decreased to $42.69 million in 2024 from $83.16 million in 2023, with a significant drop in money market funds from $31.93 million to $0.31 million[437] - Net cash provided by operating activities improved to $15.2 million in 2024 from a net cash used of $19.4 million in 2023 and $338.3 million in 2022[376] Market and Industry Trends - The total addressable market for the insurance products distributed by the company is estimated to be greater than $180 billion[253] - The U.S. life insurance market has experienced annual premium growth of 2.9% since 2013, driven by population growth, economic growth, and individual wealth accumulation[255] - The auto insurance industry grew at an annual rate of 5.3% from 2013 to 2021, with 2021 written premium totaling $261 billion[255] Segment Performance and Adjusted EBITDA - Senior segment Adjusted EBITDA increased by $11.7 million (8%) to $166.7 million in 2024, driven by higher revenue offset by increased operating costs[314] - Healthcare Services segment Adjusted EBITDA improved by $30.6 million to $7.8 million in 2024, due to revenue growth offset by higher operating costs[314] - Adjusted EBITDA from the Senior segment increased by $316.8 million (196%) to $155.1 million for the year ended June 30, 2023, due to a $62.2 million increase in revenue and a $254.6 million decrease in operating costs[316] - Adjusted EBITDA from Healthcare Services increased by $9.3 million to $(22.8) million for the year ended June 30, 2023, driven by a $182.0 million increase in revenue, offset by a $172.7 million increase in operating costs[316] Acquisitions and Investments - The company acquired a chronic care management platform for $4.0 million on April 2, 2024, resulting in $0.3 million of goodwill and $3.3 million of intangibles[332] - The company acquired Express Med Pharmaceuticals (now SelectRx) for up to $24.0 million, with $17.5 million paid at closing and additional payments made in 2023[421] - Simple Meds was acquired for $7.0 million in cash, with goodwill allocated to the Healthcare Services reporting unit[422] Financial Instruments and Fair Value - The company uses a combination of historical experience, insurance carrier data, and industry trends to estimate renewal commission revenue[341] - The company recognizes a significant deferred tax liability due to the timing of revenue recognition for tax purposes[343] - The company uses the Black-Scholes-Merton pricing model to determine the fair value of stock options[344] - The company's financial instruments exposed to credit risk primarily consist of accounts and commissions receivable[349] - The company's fair value estimation for reporting units involves significant unobservable inputs and judgmental assumptions[347] Assets and Liabilities - Total current assets decreased by 8.3% to $332.9 million in 2024 from $363.2 million in 2023[370] - Long-term debt, net of current portion, decreased by 4.1% to $637.5 million in 2024 from $664.6 million in 2023[370] - Total shareholders' equity declined by 8.7% to $316.8 million in 2024 from $347.0 million in 2023[370] - Total shareholders' equity decreased from $391.1 million in 2022 to $316.8 million in 2024[375] - The company's total assets decreased to $580.8 million in 2024 from $567.3 million in 2023 and $554.8 million in 2022[375] Leases and Intangible Assets - Total rental payments for leases are expected to be $3.6 million over the initial ten-year term plus a five-year extension[427] - New lease liabilities of $0.7 million and $4.5 million were incurred in 2024 due to lease amendments and additional office facilities in Overland Park, KS[428] - Operating lease right-of-use assets totaled $23.44 million in 2024, slightly down from $23.56 million in 2023[430] - Total net lease costs decreased to $4.38 million in 2024 from $6.66 million in 2023, with sublease income of $2.29 million in 2024[432] - Intangible assets' net carrying value decreased from $10,200 thousand in 2023 to $10,194 thousand in 2024[441] - The company recorded $3.3 million in intangible assets related to proprietary software from the acquisition of a chronic care management platform in 2024[442] - Impairment charges of $15.1 million and $0.5 million were recorded for vendor relationships and non-compete agreements, respectively, in 2023 due to terminated relationships[443] - Customer relationships' net carrying amount decreased from $8,875 thousand in 2023 to $6,556 thousand in 2024[441] - Trade name's net carrying amount decreased from $983 thousand in 2023 to $447 thousand in 2024[441] - Proprietary software's net carrying amount increased from $284 thousand in 2023 to $3,153 thousand in 2024[441] - Non-compete agreements' net carrying amount decreased from $58 thousand in 2023 to $38 thousand in 2024[441] - Vendor relationships' net carrying amount was fully impaired, decreasing from $5,289 thousand in 2023 to $0 in 2024[441] Revenue Recognition and Accounting Policies - The company has two revenue streams: commissions and other services revenue, and pharmacy revenue, recognized when control of goods or services is transferred to the customer[393] - Commission revenue includes first-year commissions and renewal commissions, with renewal commission revenue estimated using a portfolio approach grouped by segment, carrier, product type, and quarter[397] - The company estimates renewal commission revenue using assumptions based on historical experience, carrier data, and industry trends, with persistency being the most sensitive assumption[399] - Production bonus revenue is recognized proportionally as policies are sold, based on agreed-upon targets in customer contracts[405] - Population Health revenue is recognized when performance obligations are met, such as HRA completion or transfers to health-related partners, with transaction prices based on volume and contractual terms[407] - SelectRx pharmaceutical sales revenue is recognized upon shipment to customers, with no future revenue streams or variable consideration as the transaction price is fixed at shipment[408] Credit Losses and Allowances - The company recorded an allowance for credit losses of $8.2 million as of June 30, 2024, compared to $2.7 million in 2023, with write-offs of $1.4 million in 2024[410] Advertising and Marketing - Advertising expenses were $294.7 million for the year ended June 30, 2024, compared to $242.5 million in 2023 and $418.0 million in 2022[415] - Marketing efficiency improved in 2023 compared to 2022, with a decrease in customer acquisition cost (CAC) per approved policy due to enhanced agent training and development[288] Property, Equipment, and Software - Property and equipment net value was $18.973 million as of June 30, 2024, compared to $27.452 million in 2023, with depreciation expenses of $12.8 million in 2024[424] - Work in progress as of June 30, 2024, primarily represents equipment for SelectRx operations not yet in service, with depreciation expenses of $12.8 million for the year[425] - Software—net decreased to $13.98 million in 2024 from $14.74 million in 2023, with capitalized internal-use software costs of $8.4 million in 2024 and $7.8 million in 2023[426] - The company recorded an impairment charge of $1.0 million in 2023 for software no longer utilized in the Healthcare Services segment[426] Other Financial Metrics - Total term premiums increased 2% for the year ended June 30, 2024, compared to the year ended June 30, 2023[272] - Final expense premiums increased 11% for the year ended June 30, 2024, compared to the year ended June 30, 2023[272] - Total premiums for Auto & Home increased 11% for the year ended June 30, 2024, compared to the year ended June 30, 2023[274] - LTV per MA approved policy increased 4% for the year ended June 30, 2024, compared to the year ended June 30, 2023[268] - The company increased the product-specific constraint for Medicare Advantage from 6% to 15% for policies sold after December 31, 2021[341] - The estimated duration of expected renewals used in the calculation of LTV is ten years[340] - Two insurance carrier customers accounted for 32% and 23% of total accounts and commissions receivable as of June 30, 2024[350] - The company recorded $44.6 million in goodwill impairment for the year ended June 30, 2022[348] - The company had $42.4 million in non-interest bearing accounts and $0.3 million in a money market account as of June 30, 2024[351] - The company capitalizes costs related to internal-use software development, with amortization generally over 3-5 years[386] - The company recognizes a right-of-use asset and lease liability at lease commencement, using the incremental borrowing rate to determine the present value of future lease payments[389] - Goodwill is tested for impairment annually and whenever events indicate potential impairment, with the annual test performed as of April 1[392] - Share-based compensation expense increased to $13.8 million in 2024 from $11.3 million in 2023 and $7.1 million in 2022[376] - Depreciation and amortization expenses were $25.0 million in 2024, $27.9 million in 2023, and $24.7 million in 2022[376] - Cash and cash equivalents include money market accounts invested in cash, U.S. Government securities, and fully collateralized repurchase agreements, classified as Level 1 fair value measurements[383] - Two insurance carrier customers accounted for 32% and 23% of total accounts and commissions receivable as of June 30, 2024[384] - For the year

SelectQuote reported earnings for its fourth fiscal quarter of 2024 earlier today. Shares of insurance company SelectQuote (SLQT -36.83%) crashed after the company on Friday morning reported earnings for the fourth quarter of fiscal year 2024 ending June 30. The stock was down 37% at noon. SelectQuote reported a net loss of $31 million, which missed the analyst estimate by roughly 31%, according to Visible Alpha. However, keep in mind there was only one analyst with estimates. Earnings miss the estimate Des ...

SelectQuote, Inc. (NYSE:SLQT) Q4 2024 Earnings Conference Call September 13, 2024 8:30 AM ET Company Participants Matt Gunter - IR Tim Danker - CEO Ryan Clement - CFO Bob Grant - President Bill Grant - COO Conference Call Participants Ben Hendrix - RBC Capital Markets Patrick McCann - Noble Capital Markets Operator Hello, and welcome to SelectQuote's Fourth Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a quest ...

SelectQuote, Inc. (NYSE:SLQT) Q4 2024 Earnings Conference Call September 13, 2024 8:30 AM ET Company Participants Matt Gunter - IR Tim Danker - CEO Ryan Clement - CFO Bob Grant - President Bill Grant - COO Conference Call Participants Ben Hendrix - RBC Capital Markets Patrick McCann - Noble Capital Markets Operator Hello, and welcome to SelectQuote's Fourth Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a quest ...