GoHealth(US:GOCO)2024-11-07 21:26Financial Performance - Net revenues for Q3 2024 were $118.292 million, a decrease of 10.5% from $132.037 million in Q3 2023[28]. - The company reported a net income of $15.366 million in Q3 2024, compared to a net loss of $56.204 million in Q3 2023[28]. - Comprehensive income attributable to GoHealth, Inc. was $6,784 thousand for the three months ended September 30, 2024, compared to a loss of $23,849 thousand in the same period of the previous year[29]. - GoHealth, Inc. reported a net income of $15,366 thousand for the three months ended September 30, 2024, compared to a net loss of $56,204 thousand for the same period in 2023, marking a significant turnaround[29]. - The net income per share of Class A common stock was $0.58 for Q3 2024, a significant improvement from a loss of $2.61 per share in Q3 2023[28]. - The company reported a comprehensive loss of $65,326 thousand for the nine months ended September 30, 2024, compared to a loss of $148,787 thousand for the same period in 2023[29]. - GoHealth reported a net loss of $65.294 million for the nine months ended September 30, 2024, compared to a net loss of $148.976 million for the same period in 2023, indicating a significant improvement[35]. Revenue and Expenses - Total operating expenses for Q3 2024 were $160.964 million, down from $170.013 million in Q3 2023, reflecting a reduction of 5.9%[28]. - The company experienced a significant reduction in revenue share expenses, which were $19.683 million in Q3 2024 compared to $35.992 million in Q3 2023, a decrease of 45%[28]. - Marketing and advertising expenses increased to $45.270 million in Q3 2024 from $39.416 million in Q3 2023, representing a rise of 14.7%[28]. - The company experienced a share-based compensation expense of $6.534 million for the nine months ended September 30, 2024, down from $15.298 million in the prior year[35]. - General and administrative expenses for the three months ended September 30, 2024, were $17.1 million, an increase of $4.2 million or 32.2% compared to the prior year[167]. - Interest expense for the three months ended September 30, 2024, was $19.1 million, an increase of $1.5 million or 8.7% year-over-year[170]. Assets and Liabilities - Total current assets decreased to $334,043 thousand as of September 30, 2024, down from $476,440 thousand at the end of 2023, primarily due to a reduction in cash and cash equivalents[30]. - The company’s total assets decreased to $1,341,153 thousand as of September 30, 2024, compared to $1,499,570 thousand at December 31, 2023, reflecting a decline of approximately 10.6%[30]. - Cash and cash equivalents significantly decreased to $35,527 thousand as of September 30, 2024, from $90,809 thousand at December 31, 2023, indicating a liquidity challenge[30]. - The company’s accumulated deficit increased to $448,717 thousand as of September 30, 2024, compared to $420,280 thousand at the end of 2023, reflecting ongoing financial pressures[30]. - Total stockholders' equity attributable to GoHealth, Inc. decreased to $212,040 thousand as of September 30, 2024, from $231,014 thousand at the end of 2023, a decline of approximately 8.2%[30]. Debt and Financing - As of September 30, 2024, total long-term debt amounted to $416.3 million, down from $422.7 million as of December 31, 2023[61]. - The effective interest rate on Term Loan Facilities was 13.4% as of September 30, 2024, compared to 13.0% as of December 31, 2023[63]. - Future maturities of debt include $25.0 million due in the fourth quarter of 2024 and $40.0 million due in 2025[61]. - The principal amount outstanding under Term Loan Facilities was $99.5 million, $266.8 million, and $86.5 million for different loan categories as of September 30, 2024[203]. - The Company had $40.0 million outstanding under the Revolving Credit Facilities as of September 30, 2024, with a remaining capacity of $48.5 million[205]. Operational Metrics - Adjusted EBITDA margin is a key performance measure, calculated as Adjusted EBITDA divided by net revenues, providing insights into operational efficiency[19]. - Direct Operating Cost per Submission for the period is a critical metric for evaluating submission performance, reflecting the average cost associated with submissions generated[24]. - The number of Submissions for the nine months ended September 30, 2024, was 166,195, an increase of 2.9% from 161,550 in 2023[181]. - Sales per Submission for the three months ended September 30, 2024, decreased to $702, down 13.7% from $813 in the same period of 2023[188]. - Direct Operating Cost of Submission decreased to $110.2 million for the three months ended September 30, 2024, from $120.4 million in the prior year[193]. Market and Strategic Initiatives - The company aims to simplify the health insurance enrollment process for Medicare-eligible consumers through its technology-driven marketplace and licensed agents[36]. - The introduction of PlanFit CheckUp utilizes analytics from nearly 30 million consumer touchpoints to match consumers with suitable Medicare plans[150]. - The company is focusing on streamlining processes and improving call handle times through the launch of Encompass Express[152]. - The acquisition of e-TeleQuote Insurance, Inc. was completed on September 30, 2024, expanding agent capacity without the need for further hiring[155]. - The Company recognized a gain on bargain purchase of $77.4 million from the acquisition of e-TeleQuote Insurance, Inc., which is included in the Condensed Consolidated Statements of Operations[138].