GoHealth (GOCO) Small-Cap Growth Virtual Investor Conference summary

Management and business model

• Leadership team with deep Medicare experience restructured the business in mid-2022 to focus on a tech-enabled, service-driven model for Medicare Advantage consumers.

• Over 30 million shopping experiences delivered to 10+ million unique consumers, leveraging a proprietary data set for efficiency and outcomes.

• 2023 saw $735 million in revenue, $75 million adjusted EBITDA, and $109 million in operating cash flow, a $400 million improvement from 2021.

• Focus on technology, standardized workflows, and best-in-class training to deliver personalized, compliant, and scalable service.

• Largest source of enrollments for major health plans, with a unique ability to serve special needs populations.

Market dynamics and differentiation

• Medicare population is growing 5%-8% annually, with 11,000 new eligibles daily; Medicare Advantage is about 50% penetrated and growing.

• Special needs plans represent 25% of the market, but 42% of enrollments are in this segment, offering higher margins for health plans.

• Multi-payer marketplace model provides consumers with unbiased plan selection and high compliance, building trust and credibility.

• Proprietary PlanFit technology enables agents to match consumers to optimal plans, including advising them to stay on current plans when appropriate.

• Agents are compensated for high-quality service, not just enrollments, supporting long-term relationships and repeat business.

Financial performance and outlook

• Shifted revenue recognition to reduce volatility, using service-based contracts for riskier products and conservative LTV assumptions.

• Free cash flow turned positive in 2023 and is expected to remain positive in 2024, differentiating from peers.

• Cost per acquisition improved by 10%-15% year-over-year, maintaining a 25% industry lead due to technology deployment.

• Ongoing industry disruption allows for recruitment of experienced agents and increased health plan partnerships.

• Anticipates continued growth and stability, supported by a strong balance sheet and proprietary marketing engine.