GoHealth (GOCO) 15th Annual Midwest IDEAS Investor Conference summary

Market overview and business model

• Serves the growing Medicare Advantage market, with 65 million eligible consumers and 5-7% annual growth.

• Focuses on unbiased, technology-driven marketplace for Medicare consumers, emphasizing long-term relationships over transactional sales.

• Largest source of new enrollments for major health plans, providing multi-carrier options and leveraging proprietary technology for plan matching.

• Agents are incentivized to recommend the best plan for the consumer, even if it means no switch, supporting trust and retention.

• Revenue comes from health plans, not consumers, with new compensation models rewarding retention as well as new enrollments.

Technology and customer experience

• Proprietary AI-driven PlanFit tool analyzes individual needs, doctors, and prescriptions to recommend optimal plans.

• Customer 360 platform aggregates data from 30 million interactions, enabling personalized, seamless annual checkups.

• Technology integrations streamline prescription verification and reduce average call handle time from 120 to 67 minutes.

• Ongoing investments in AI and Copilot technology enhance agent support and customer experience.

• Focus on post-enrollment activation and annual PlanFit Checkups to ensure ongoing satisfaction and retention.

Financial performance and strategy

• 2023 revenue was $775 million, with $75 million in adjusted EBITDA and $109 million in cash flow from operations.

• Achieved a 10% year-over-year improvement in cost per acquisition, outperforming public peers.

• Shifted from negative cash flow in 2021 to over $100 million positive cash flow in 2023 through operational rigor and innovative contracting.

• Debt reduced from $650 million to $450 million, with ongoing refinancing efforts to improve leverage and support growth.

• Financial results and cash flow depend on health plan mix and contract structures, with a focus on optimizing revenue and reducing acquisition costs.