GoHealth, Inc.

Ladies and gentlemen, thank you for standing by, and welcome to the Go Health Fourth Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. If you require any further assistance, please press star 0. I would now like to hand the conference to your speaker today, Jay Koval, VP of IR. Please go ahead, sir.

Thank you, Joelle, and good afternoon, everyone. First, I want to apologize for the press release getting out a little late. We had some issues with PR Newswire. But thank you all for taking the time to join us for Go Health's fourth quarter and full year 2020 earnings call. Joining me today are Clint Jones, co-founder and chief executive officer, Travis Matteson, chief financial officer, Shane Cruz, our chief operating officer, and Jake Goodmanson, president of Medicare. This afternoon's conference call contains forward-looking statements based on our current expectations. Numerous risks and uncertainties may cause actual results to differ materially from those anticipated or projected in these statements. Many of the factors that will determine future results are beyond the company's ability to control or predict. You should not place undue reliance on any forward-looking statements, and the company undertakes no obligation to update any of these statements, whether due to new information, future events, or otherwise. After the market closed today, we issued a press release containing our results for the fourth quarter of fiscal 2020, in addition to presentation materials that Clint and Travis will walk through momentarily. Both the release and the slides can be found on GoHealth's website under the Investor Relations tab. In the press release, we've listed a number of the risk factors that you should consider in conjunction with our forward-looking statements. Other significant risk factors are described in our Form 10-K and 10-Q reports filed with the Securities and Exchange Commission. During this call, we will be discussing certain non-GAAP financial measures. These measures are reconciliation to the most directly comparable GAAP financial measures, and the reason management believes they provide useful information to investors regarding the company's financial condition and results of operation are contained in the press release and investor presentation. So with that, I'd like to turn the call over to Clint.

Thanks, Jay, and thanks for joining us to discuss our fourth quarter and full year 2020 results. As Jay mentioned, we have posted a slide deck to our website that we will walk through before opening up the call to Q&A. I'll start with some highlights from the 2020 annual enrollment period, as well as our focus areas in 2021 that will position us to deliver another year of high-quality growth, and then Travis can discuss the financials. But first, let me thank my GoHealth colleagues for their hard work and long hours spent educating and enrolling customers during AEP. This winning team executed well, as evidenced by revenue that came in above our own expectations for the quarter, driving strong four-year revenue growth. These results were a huge accomplishment during what was anything but a normal year, shown on slide four. Our team worked through the challenges associated with the pandemic, an entirely remote working environment for AEP, not to mention a most unusual election cycle. We are particularly proud of the quality results we delivered during the year, with exceptional submission growth and growing LTVs. This is a testament to the strength of our people, process, and technology. The pandemic highlighted the need to help seniors carefully choose their healthcare, and our marketplace platform and agent-assisted model enables us to do that and a Medicare market that is poised to grow rapidly for many years to come. Slide five looks at the key metrics that we use to measure our performance. While our marketplace has been built over 20 years, we only entered the Medicare space in 2016 and quickly became the largest enroller of Medicare plans by a wide margin, helping over 730,000 Medicare consumers enroll in 2020. A 60% increase in agent counts in the year drove a 71% increase in submissions, demonstrating how efficiently we can scale our agent base. We also drove a 3% increase in LTVs, thanks to continued investment in our platform, our telecare team, and our expanding carrier footprint. Our team delivered revenue of $877 million, the largest in our space, with the highest efficiency. Adjusted EBITDA of $271 million equates to industry-leading 31 percent margins. And a two-year adjusted EBITDA growth of an astounding 677 percent. So, in five short years, our leading technology-enabled marketplace is driving the largest and most profitable results with extremely high rates of growth. We know our size and scale offer a sustainable competitive advantage. First, our machine learning and data-driven insights improve with more and more data. Second, as we scale, we will continue to invest behind sustaining this growth in 2021 and beyond. Slide six looks at how our leading marketplace platform has enabled us to become the largest and most profitable, which positions us well to capitalize on a $30 billion addressable market for years to come. We have a data-driven, internal, omni-channel marketing strategy that efficiently delivers consumers into our wide funnel. Our proprietary technology platform utilizes data to score our leads and route consumers to specialized agents. We have built and continue to improve our tech-enabled agent force to provide consumers with education, transparency, and choice as seniors are making an incredibly important healthcare decision. and we have cultivated unique carrier relationships that fuel enterprise revenue, including our Encompass programs. We believe this high-performing platform positions us well to continue delivering rapid growth over the coming years with industry-leading margins and fast cash payback periods. Let's now look at our recent results from AEP, shown on slide seven. Our Medicare dedicated team of agents delivered excellent results, including 75% growth during the fourth quarter and capping off a year up 110%. This growth is on top of prior year's triple-digit gains, demonstrating the scalability of our marketplace. Total revenue grew 55% during AEP to $446 million thanks to strong consumer engagement driven by our marketing team, solid agent performance, and rapidly evolving favorable industry trends. Full-year revenue grew 63% to $877 million, representing an absolute revenue increase of $338 million during the year. Adjusted EBITDA grew 31% in the quarter, and full-year adjusted EBITDA jumped 59%, equating to an absolute EBITDA increase of over $100 million. While our Q4 results came within our range of expectations, let me share some additional insights. First, our agents spent more time per call this AEP helping consumers navigate their plan options in this COVID environment across our expanded carrier footprint while performing a rigorous needs analysis. Consumers needed our platform more than ever, demonstrating the power of our marketplace and consumer demand for education, choice, and transparency. In the short term, this resulted in longer-than-anticipated handle times that limited agent capacity to meet our record customer demand. But our increasing LTVs are proving that the additional time spent with customers is paying dividends and positions GoHealth for long-lasting benefits over the coming years, far in excess of the short-term opportunity cost. And second, we invested incremental marketing dollars to navigate an unusual election cycle. The additional marketing spend delivered abundant opportunities and highlighted the need for additional agent capacity in 2021 to address the opportunities our marketing engine can generate in a fast-growing industry. Simply put, we had more consumer demand on our platform than we could serve. While both of these items dampened our short-term profitability, they create a clear path to delivering strong growth and efficiency gains in 2021 and beyond, shown in slide 8. With our record growth and insights from 2020, we aim to overdeliver by doubling down on our strengths, such as our proven tech-enabled agent-assisted model, while looking to continuously improve our business through lessons learned, such as optimizing the customer journey. From this, we have identified three key areas of focus that we will accelerate investment in 2021 to expand our competitive advantages. First, is to grow our agent base by over 50% earlier in the year to meet continued demand we are seeing in 2021. Agent investments in Telecare and Encompass would help power sustained benefits from the higher retention resulting from customer engagement and additional services. We are also enhancing training and coaching efforts geared towards a work-from-home environment, which should result in more higher-producing, career-oriented agents. Second is to continue to invest thoughtfully in the technology to better support agent efficiency in a period of increased plan options for consumers. Two examples include our next generation plan fit tool to better help consumers find the right plan and speech analytics to continue to improve our sales results. This will help us deliver a greater customer experience and a more efficient sales process while continuing to generate top tier Medicare margins. And third is to continue to build out our Encompass platform and the GoHealth brand as a trusted advisor among seniors through a superior customer journey thanks to our integrated marketing messages, telecare engagement, and Encompass offerings. Our goal is to attract and retain members, and the consumers we serve need to know that GoHealth will be there to help them utilize their benefits and navigate their evolving needs. Technology enhancements and the additional training across our expanded agent force will allow us to grow submissions at a fast rate in 2021 with greater efficiency, not to mention position us well for compounding growth in 2022 and beyond, shown on slide nine. Our superior business model and industry-leading adjusted EBITDA margins create opportunities to continue to drive market share. So we are investing ahead of the curve to extend our leading position in a very large and fast-growing Medicare market, resulting in conditional revenue growth of 42 to 64 percent in 2021, more than $100 million higher than our expectations from the IPO. In total, we expect 2021 revenue of $1.15 to $1.3 billion, equating to growth of 31 to 48 percent. We also expect adjusted EBITDA of $345 to $385 million represent an increase of 27 to 42% from 2020, resulting in EBITDA margins of 30%, five points higher than our closest competitor. Our team is 100% committed to delivering these 2021 results, as we believe that these ranges are both prudent and highly achievable. It is very encouraging to see that we are off to a strong start to the year, including top-line growth, hiring, and efficiency gains tracking well towards full-year goals. This should position us well to meet the growing consumer demand from our internal marketing campaigns. We couldn't be more excited to help enroll and serve more customers. Let me now turn the call over to Travis to review our results and discuss our 2021 operating plan in more detail.