Policy Submissions and Approvals - Total submitted policies decreased by 1% to 118,537 for the three months ended September 30, 2024, compared to 119,452 in the same period of 2023[90] - Total approved policies decreased by 5% to 104,659 for the three months ended September 30, 2024, compared to 109,876 in the same period of 2023[92] - Medicare Advantage plans accounted for 88% of approved Senior policies for the three months ended September 30, 2024[83] Financial Performance - Total revenue for the three months ended September 30, 2024, was $292,263,000, representing a 26% increase from $232,730,000 in the same period of 2023[102] - Revenue from the Senior segment was $92.9 million for the three months ended September 30, 2024, a $3.0 million, or 3%, increase compared to $89.9 million for the same period in 2023[124] - Revenue from Healthcare Services was $155.7 million for the three months ended September 30, 2024, a $58.4 million, or 60%, increase compared to $97.4 million for the same period in 2023[125] - Revenue from the Life segment was $39.3 million for the three months ended September 30, 2024, a $1.5 million, or 4%, increase compared to $37.8 million for the same period in 2023[126] - The company completed a $100.0 million securitization transaction on October 15, 2024, to provide advanced financing against expected collections for previously sold policies[131] - The company expects to remain in compliance with debt covenants for the next 12 months based on financial projections[130] Expenses and Losses - Selling, general, and administrative expenses increased by $7.5 million, or 26%, primarily due to a $5.2 million increase in compensation costs[110] - Marketing and advertising expenses rose by $1.4 million, or 2%, mainly due to a $0.8 million increase in lead costs[108] - Net loss for the three months ended September 30, 2024, was $44,546,000, compared to a net loss of $31,051,000 in the same period of 2023[99] - Interest expense increased by $1.6 million, or 8%, due to higher interest rates during the period[112] - Technical development expenses increased by $1.4 million, or 19%, primarily due to a $1.6 million increase in compensation costs for technology personnel[112] - The net loss for the three months ended September 30, 2024, was $44.5 million, with non-cash adjustments totaling $26.3 million[138] Membership and Operations - Total number of SelectRx members increased by 64% to 86,521 as of September 30, 2024, compared to 52,750 in the same period of 2023[96] - Average prescriptions shipped per day increased to 24,998 for the three months ended September 30, 2024, compared to 15,479 in the same period of 2023[97] - The increase in Healthcare Services revenue was primarily due to a $58.1 million increase in SelectRx pharmacy revenue[125] Cash Flow and Debt - Cash and cash equivalents decreased to $10.4 million as of September 30, 2024, from $42.7 million as of June 30, 2024[134] - Net cash used in operating activities for the three months ended September 30, 2024, was $16.6 million, compared to $23.7 million for the same period in 2023[138][140] - Net cash used in investing activities was $2.6 million for the three months ended September 30, 2024, primarily due to $2.1 million in software purchases[142] - Net cash used in financing activities was $13.1 million for the three months ended September 30, 2024, mainly due to $8.5 million in principal payments on term loans[144] - As of September 30, 2024, total debt obligations amounted to $680.4 million, slightly down from $683.3 million as of June 30, 2024[132] Market and Competitive Position - The company continues to seek opportunities for market expansion through acquisitions and partnerships in healthcare services[82] - The proprietary routing and workflow system is a key competitive advantage that enhances sales and customer retention[81] - The company remains exposed to market risks associated with unfavorable movements in interest rates, with no material changes to its risk policies[147]

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

4 th Quarter Fiscal 2024 | We shop. You save. Earnings Conference Call Presentation September 13, 2024 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. 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," ...

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 March 31, 2024 OR 6800 West 115th Street Suite 2511 66211 Overland Park Kansas (Zip Code) (Address of principal executive offices) ☐ 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. (NYSE:SLQT) Q3 2024 Results Conference Call May 9, 2024 9:00 AM ET Company Participants Matt Gunter - Investor Relations Tim Danker - Chief Executive Officer Ryan Clement - Chief Financial Officer Bob Grant - President Conference Call Participants Ben Hendrix - RBC Pat McCann - Noble Capital Markets Operator Hello, all, and welcome to SelectQuote's Fiscal Third Quarter Earnings Conference Call. [Operator instructions]. It's now my pleasure to introduce Matt Gunter, SelectQuote Investor Re ...

Exhibit 99.1 SelectQuote, Inc. Reports Third Quarter 2024 Results Third Quarter of Fiscal Year 2024 – Consolidated Earnings Highlights Raising Fiscal Year 2024 Guidance Ranges: Third Quarter of Fiscal Year 2024 – Segment Highlights Senior Healthcare Services Life Auto & Home OVERLAND PARK, Kan., May 9, 2024--(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 fisca ...

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 December 31, 2023 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 j ...

Financial Data and Key Metrics Changes - SelectQuote reported consolidated revenue of $405 million, a 27% year-over-year increase, and adjusted EBITDA of $67 million compared to $64 million a year ago [13][28] - Adjusted EBITDA margin declined due to a higher mix of healthcare services revenue, with healthcare services revenue more than doubling year-over-year to $112 million [13][28] - The company expects to approach breakeven free cash flow for fiscal 2024, with cash flow generation anticipated to expand as healthcare services scale [7][12] Business Line Data and Key Metrics Changes - In the Senior segment, revenue grew to $248 million, an 11% increase year-over-year, driven primarily by Medicare Advantage policy growth [36] - The lifetime value (LTV) of policies increased by 7% to $934 per policy, reflecting stable policyholder persistency [9][36] - The Healthcare Services segment surpassed original member growth expectations, reaching nearly 63,000 members, with a sequential growth of 19% compared to the previous quarter [16][29] Market Data and Key Metrics Changes - The company noted a more rational competitive landscape in the industry compared to previous years, with stable agent efficiency despite increased marketing costs due to new CMS marketing rules [9][15] - The average prescription shipped per member grew by 76% year-over-year, indicating significant scale in the distribution business [38] Company Strategy and Development Direction - SelectQuote aims to generate stable and attractive EBITDA margins while focusing on returns to invested capital and growing cash flow [6] - The company is leveraging its existing marketing spend to create new revenue streams, particularly in healthcare services, which is expected to drive future growth [49][74] - The strategic focus includes enhancing automation and improving system architecture to reduce costs while continuing to grow [68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to maintain persistency and stability in policyholder retention, despite increased shopping behavior in the market [23][65] - The company is optimistic about the future, citing strong performance in both the Senior and Healthcare Services divisions, and has increased revenue and adjusted EBITDA outlooks for fiscal 2024 [27][40] Other Important Information - SelectQuote is actively working on restructuring its balance sheet to improve its earnings profile and operating flexibility, with a focus on securitization as a potential solution [20][56] - The company highlighted that it is on track to produce approximately $100 million of unlevered operating cash flow in fiscal 2024 [20] Q&A Session Summary Question: What are the prospects for continued synergies between the pharmacy business and the senior segment? - Management highlighted strong growth in SelectRx, indicating significant synergy with the Medicare Advantage customer base and potential for further adoption [63][64] Question: How does the company view its debt levels as it progresses towards free cash flow generation? - Management acknowledged the meaningful debt balance and emphasized that addressing it is a priority, with ongoing negotiations for a long-term solution [56][70] Question: Can you comment on the lifetime value outlook and the impact of carrier mix? - Management expressed confidence in maintaining persistency and noted that the stabilization observed is a strong foundation for future growth [22][45]

*See "Non-GAAP Financial Measures" above on slide 2. $90 $MM | We shop. You save. MA LTV | We shop. You save. 8 LTM 9/30/22 LTM 9/30/23 9 60,000 $MM | We shop. You save. l | | l $37 $38 $7 $9 Life Auto & Home 1Q23 1Q24 $5 $5 $2 $3 Life Auto & Home 1Q23 1Q24 11 12 | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |------------------------------------------------------------------------------|-------|--------|-------|----------------------|-------|------------|-------------|-------|--------- ...

Financial Data and Key Metrics - The company achieved stable and strong profitability in Q1 2024, marking seven consecutive quarters of improved operating results across all business segments [18] - Consolidated revenue for Q1 2024 was $233 million, with adjusted EBITDA at negative $11 million, representing a year-over-year improvement of over $16 million compared to Q1 2023 [54] - SelectRx surpassed 52,000 members, with healthcare services revenue exceeding senior revenues for the first time in company history [19] - Senior distribution business grew revenue by 16% year-over-year, with MA approved policies increasing by 17% to 98,000 [29][63] - Life and Auto & Home segments combined revenues were $47 million, up nearly 7% year-over-year, with adjusted EBITDA totaling nearly $9 million [47][44] Business Line Performance - SelectRx membership grew by over 60% year-over-year, reaching 52,000 members, driven primarily by Medicare Advantage interactions [67] - Healthcare services revenue grew by 50% year-over-year, driven by the maturation of the membership base and increased full-box utilization [5] - Senior distribution business saw a 22% decline in operating expense per policy, a 30% improvement in marketing expense per policy, and a 25% increase in agent close rates year-over-year [65] - Life business benefited from the adoption of the SwiftTerm Select product, while Auto & Home remained stable despite a challenging P&C insurance market [47] Market Performance - The company is well-positioned to serve all 50 states, with a single pharmacy system that is more efficient and integrated with automated fulfillment and shipping functions [58] - The Medicare Advantage market continues to show strong demand, with over 4 million Americans turning 65 each year, providing a long-term growth opportunity [40] - The company has seen deeper coordination with carriers, improving onboarding experiences and retention behavior [22] Strategic Direction and Industry Competition - The company’s strategy focuses on tenured agents, high-quality leads, and advanced technology tools to drive efficiency and policyholder persistency [20][21] - SelectRx is seen as a key differentiator, with the platform enabling differentiated customer acquisition and engagement, positioning the company at an advantageous intersection in the healthcare ecosystem [59] - The company is exploring additional market opportunities to leverage its platform for delivering value in the healthcare ecosystem [60] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company’s preparation for the AEP and OEP seasons, with early results aligning with expectations [53] - The company expects to achieve attractive EBITDA margins in the low 20s for the senior distribution business in fiscal 2024 [32] - Management highlighted the importance of the healthcare services segment in offsetting seasonal expenses and driving future profitability [28] Other Important Information - The company emphasized its unique value proposition, combining Medicare Advantage distribution with tailored prescription drug delivery to drive higher patient medication adherence [25] - SelectRx’s revenue per member per month is more than 35% higher than the prior business, reflecting improved unit economics [24] - The company’s tenured agent retention remains strong, providing a key strategic advantage in the competitive Medicare Advantage market [55] Q&A Session Summary Question: Impact of regulatory changes on AEP performance - The company noted that regulatory changes, such as the 48-hour rule, had some impact but were in line with expectations, with no significant disruptions observed [34][69] - Management highlighted that the company’s alignment with carriers and focus on high-adherence solutions has been well-received, contributing to positive persistency and adherence metrics [77][71] Question: Growth trajectory and operational readiness for SelectRx - Management expressed confidence in SelectRx’s growth trajectory, expecting membership growth of 25% and healthcare services revenue growth of 50% for the year [5] - The company has scaled operations effectively, with customer satisfaction and NPS scores being strong indicators of operational readiness [70] Question: Outlook on P&C insurance market - The company acknowledged the challenging P&C insurance market but noted that carriers are adjusting underwriting practices, with the business continuing to perform well [80] Question: EBITDA cadence for fiscal 2024 - Management expects the EBITDA cadence to follow historical patterns, with healthcare services projected to achieve low single-digit EBITDA margins, improving as the business scales [74] Question: Plan design and shopping behavior - Management observed that plan features this year are similar to last season, with carriers focusing on maintaining critical consumer benefits, leading to stable shopping behavior [86][92]