GoHealth, Inc.

Welcome to the Go Health Q1 2022 earnings conference call. My name is Darrell and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. During the question and answer session, if you have a question, please press 01 on your touchtone phone. As a reminder, this conference is being recorded. I will now turn the call over to Brian Farley. Brian, you may begin.

Thank you and good afternoon, everyone. Thanks for joining Go Health's first quarter 2022 earnings call. Joining me today are Clint Jones, co-founder and chief executive officer, and Travis Matteson, interim chief financial officer. 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 first quarter of 2022. We have posted the release on the GoHealth website under the investor relations tab. We have also posted on our website the presentation materials that Clint and Travis will walk through voluntarily. In the press release, we have listed a number of risk factors that you should consider in conjunction with our forward-looking statements. Other risk factors are described in our Form 10-K and Form 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 reconciled to the most directly comparable GAAP financial measure. And the reconciliations are set forth in the press release and investor presentation. And with that, I'd like to turn the call over to Quinn.

Thank you, Brian. And thank you all for joining us to review our first quarter 2022 results. As Brian mentioned, we have posted a slide deck to our investor relations website that we will walk through before opening up to Q&A. Starting on slide four, we had a strong first quarter. with revenues of $271 million and adjusted EBITDA of $11 million, which does not include the impact of our cost actions taken to date. We grew submission volume by 62% year over year, leveraging the investments we made in our agent force last year and continued technology enhancements. Our strategy this year is to deliberately slow down and focus on operational efficiencies that will position the company for sustainable long-term success. We continue to focus on serving the Medicare market with the best consumer experience while delivering high quality member growth for our carrier partners. As more and more plan options are available for consumers that have evolving needs, our end-to-end platform aims to be the industry leader in choice, transparency, and customer experience. By reducing our growth rates in 2022 relative to previous years, we can maintain attractive margins and accelerate our path to positive operating cash flow while continuing to be a reliable partner to our members and carriers. During the first quarter, we have seen this strategy begin to play out. We have been strategic with our advertising, maximizing the return on each dollar spent. Leveraging our technology, our team has worked hard to achieve reductions to our marketing and advertising spend per submission, resulting in a 10% decline year-over-year in the last month of the quarter. We have also been hard at work improving our quality of enrollments, and we observed a decline in CTMs of 20% compared to last year, with a very promising agent retention rate. We are optimistic about these trends and will impact several of our operational initiatives on our next slide. Through the first quarter, we remain on track to deliver on our annual guidance, and in particular, cash flow breakeven by the first half of 2023 as we generated $54 million in cash flow from operations in the first quarter, which was up 75% from last year, reflecting significant growth in our membership volumes that continues to generate cash commissions. To ensure we achieve our target of positive operating cash flow by the first half of 2023 on a trailing 12-month basis, we have taken certain cost actions and continue to focus on cost and cash efficiencies. As we turn to slide five, I'd like to provide an update on our progress on the key priorities we outlined on our last earnings call. So far in the year, we are seeing success across each of these priorities. On the marketing front, we are leveraging our technology to be more efficient targeting consumers and match them with specialized agents. We have also been more selective with our marketing spend to maximize efficiency while focusing on quality. Together, these initiatives have helped us control marketing costs per submission despite strong Medicare enrollment growth. We entered 2022 with several initiatives to improve agent retention and maximize the return on the large investments we made in 2021 in agent hiring and development. These investments resulted in a large, tenured, and more efficient agent workforce that drove strong submission growth in the first quarter. We are pleased to see agent attrition fall well below the levels we observed last year. Our training and development initiatives have also boosted agent productivity and quality scores. These trends reduce our hiring needs in 2022, which we expect to have a positive impact on enrollment quality and growth, operational efficiency, cash flow, and margins. Our technology enhancements continue to drive more efficient operations across our integrated marketplace, helping secure lower marketing cost per submission through targeted marketing strategies and call routing tools to ensure every call is answered quickly by the right, specialized agent. Our guided selling platform aims to improve customer retention rates and lower denial rates, leveraging data on millions of enrollments and member retention patterns. Lastly, our slower growth and narrow focus this year has enabled our team and resources to focus on quality and results. which we are seeing come across in our operating metrics and financials. We continue to invest in our Encompass platform to expand customer and carrier customized offerings. Members that we engage through our Encompass platform see higher satisfaction, retention, and profitability. Over the course of this year, we will unpack more on our Encompass strategy and results, as we believe this will be an important growth driver and improve the cash flow profile of our business while helping drive quality member growth for our carrier partners. Lastly, on slide six, we have taken steps to improve our profitability and cash flow by becoming more efficient across our business. We expect these changes to result in cost savings of $200 million in 2022, as we discussed last quarter, most of which we will see in the back half of the year. We have already executed on several cost actions that will fully materialize later in the year. Before I hand it off to Travis, I want to highlight our first quarter financial results. In Q1, we had revenues of $271 million, up 33% since last year, and adjusted EBITDA of $11 million. In addition, we saw a 75% increase in cash flow from operations compared to prior year periods. With these results, we are reaffirming our full-year guidance range with revenues between $900 million and $1.1 billion and adjusted EBITDA between $110 million and $150 million, all with the goal of achieving positive operating cash flow on a trailing 12-month basis by the first half of 2023. I'd now like to turn it over to Travis to discuss our financials in detail. Travis? Thanks, Clint.