GoHealth(US:GOCO)2024-11-07 12:34Financial Performance - Third quarter 2024 net revenues were $118.3 million, a decrease of $13.7 million compared to $132.0 million in the prior year period[3]. - Third quarter 2024 net income improved to $15.4 million, a $71.6 million increase from a net loss of $56.2 million in the prior year period[3]. - Adjusted EBITDA for the third quarter 2024 was negative $12.1 million, a decrease of $0.6 million compared to negative $11.5 million in the prior year period[3]. - The company reported a net income of $15,366 for the three months ended September 30, 2023, compared to a net loss of $56,204 in the prior year, representing a significant improvement[24]. - For the nine months ended September 30, 2023, net revenues were $409,762, a decrease of 10.5% from $457,974 in the same period last year[25]. - The adjusted EBITDA for the nine months ended September 30, 2023, was $2,479, a decrease from $18,091 in the prior year[25]. - The company reported an EBITDA of $60,860 for the three months ended September 30, 2024, compared to $(12,482) for the same period in 2023[26]. - The net income margin for the three months ended September 30, 2024, was 13.0%, compared to a net loss margin of (42.6)% for the same period in 2023[26]. Operational Metrics - Third quarter 2024 submissions increased by 2.9% to 166,195 from 161,550 in the prior year period, driven by internal captive agents[3]. - Direct Operating Cost per Submission improved by 11.0% in the third quarter 2024 compared to the prior year period, due to advancements in AI and operational efficiencies[3][4]. - Sales per submission decreased from $813 in the three months ended September 30, 2023, to $702 in the same period of 2024, a decline of 13.7%[31]. - Direct operating cost per submission decreased from $745 in the three months ended September 30, 2023, to $663 in the same period of 2024, a reduction of 11.0%[31]. - Direct operating cost of submission for the nine months ended September 30, 2024, was $346,112 thousand, down from $365,612 thousand in the same period of 2023[32]. - Sales/Direct operating cost of submission remained stable at 1.1 for the three months ended September 30, 2024, consistent with the same period in 2023[32]. Cash Flow and Assets - The trailing twelve months positive cash flow from operations was $35.1 million, an increase of $38.3 million compared to TTM negative cash flow of $3.2 million in the prior year period[3]. - Net cash used in operating activities for the nine months ended September 30, 2024, was $(36,211) thousand, compared to $37,840 thousand for the same period in 2023[30]. - Total current assets decreased from $476,440 thousand as of December 31, 2023, to $334,043 thousand as of September 30, 2024, a decline of approximately 29.9%[29]. - Total liabilities decreased from $1,499,570 thousand as of December 31, 2023, to $1,341,153 thousand as of September 30, 2024, a decline of approximately 10.6%[29]. - The accumulated deficit increased from $(420,280) thousand as of December 31, 2023, to $(448,717) thousand as of September 30, 2024[29]. - Total stockholders' equity attributable to GoHealth, Inc. decreased from $231,014 thousand as of December 31, 2023, to $212,040 thousand as of September 30, 2024[29]. Strategic Initiatives - The strategic acquisition of e-TeleQuote added approximately $90.5 million in contract assets and $22.5 million in cash, with a gain on bargain purchase of $77.4 million[3][4]. - GoHealth aims to leverage its expanded agent network and AI-driven technology to address the needs of over two million consumers losing coverage during the Medicare Annual Enrollment Period[4]. - The company appointed Brendan Shanahan as Chief Financial Officer, bringing over 30 years of healthcare and financial strategy expertise[3]. - GoHealth's investments in technology and agent capacity are expected to position the company for sustained growth and profitability amid market changes[4]. Expense Management - Total operating expenses for the three months ended September 30, 2023, decreased by 5.3% to $160,964, down from $170,013 year-over-year[24]. - Operating expenses for the nine months ended September 30, 2023, totaled $497,076, down 10.4% from $554,715 year-over-year[25]. - Marketing and advertising expenses increased by 14.9% to $45,270 for the three months ended September 30, 2023, compared to $39,416 in the same period last year[24]. - Marketing and advertising expenses for the three months ended September 30, 2024, decreased to $75 from $149 in the same period in 2023[28]. - Customer care and enrollment expenses for the three months ended September 30, 2024, were $189, down from $519 in the same period in 2023[28]. - Technology expenses for the three months ended September 30, 2024, were $293, a decrease from $676 in the same period in 2023[28]. - Total share-based compensation expense for the three months ended September 30, 2024, was $2,859, compared to a benefit of $(545) for the same period in 2023[28]. - Interest expense for the three months ended September 30, 2024, was $19,086, an increase from $17,565 in the same period in 2023[26].