Encompass-led business transformation
drives operating efficiencies resulting in positive cash flow from
operations for FY2022
GoHealth continues to be a leading producer
for health plan partners, with increased conversion and
effectuation rates during 2022 AEP
Company to discuss detailed financial
performance on upcoming earnings call in late March 2023
CHICAGO, Jan. 17,
2023 /PRNewswire/ -- GoHealth, Inc. (Nasdaq: GOCO), a
leading health insurance marketplace and Medicare-focused digital
health company, today announced certain positive preliminary
operating results achieved during the 2022 Annual Enrollment Period
(AEP), for plans effective January 1,
2023, as a result of its Encompass-driven business
transformation. The Company will discuss these results in more
detail, along with its fourth quarter and full-year 2022
performance, on its upcoming earnings call in late March 2023.
The actions taken in the second half of 2022 to focus on quality
and drive marketing and sales efficiencies have streamlined
GoHealth's operating model and led to a strong AEP. Preliminary
operating results for the fourth quarter and full-year 2022 reflect
these improvements:
- Achieved positive cash flow from operations in FY2022,
meaningfully sooner than the Company's target of cash flow
break-even by the first half of 2023 and reflecting a more than
$300M improvement in cash flow from
operations vs. FY2021.
- Matched over 325K beneficiaries
with a Medicare Advantage plan that best fits their unique needs by
combining high-quality agents and proprietary technology—retaining
a leading position with the Company's health plan partners during
AEP.
- Attained approximately 48% penetration through the
Encompass Connect solution this AEP, ahead of the Company's 30%
goal.
- Delivered over 25% improvement in AEP operating efficiency year
over year, well ahead of previously stated expectations of up to
20%.
"While still early in our year-end close process, these positive
preliminary operating results reinforce our confidence that our
business transformation is working," said Vijay Kotte, CEO of GoHealth. "Achieving our
cash flow goal ahead of schedule is an important validation of our
operating rigor and beneficiary enrollment platform. Our
industry-leading technology, top-tier talent, and exceptional
execution led to our strong performance this AEP."
Kotte continued, "We are breaking new ground and shifting an
industry built on transactional encounters to one centered on
trusted relationships. These relationships aren't only measured by
enrollments, but also by the over 600k personalized assessments our agents
performed, simplifying the navigation of the complex Medicare
health plan shopping process. We are proud to establish the
Encompass platform as GoHealth's new standard operating model. The
high-quality enrollments and trusted relationships with
beneficiaries we've achieved this AEP have demonstrated the
positive impact our powerful new solution can have on this industry
and the enhanced value it can create for our shareholders."
The preliminary operating results presented in this press
release are based on current expectations and may be adjusted as a
result of, among other things, completion of customary quarterly
review and audit procedures and other developments that may occur
before the completion of those procedures. Furthermore, this
information is not a comprehensive statement of the Company's
operating results or financial performance for the fourth quarter
of 2022 or fiscal year 2022.
About GoHealth, Inc.
GoHealth is a leading health insurance marketplace and
Medicare-focused digital health company. Enrolling in a health
insurance plan can be confusing for customers, and the seemingly
small differences between plans can lead to significant
out-of-pocket costs or lack of access to critical medicines and
even providers. GoHealth combines cutting-edge technology, data
science and deep industry expertise to build trusted relationships
with consumers and match them with the healthcare policy and
carrier that is right for them. Since its inception, GoHealth has
enrolled millions of people in Medicare plans and individual
and family plans. For more information, visit
https://www.gohealth.com/.
Forward-Looking Statements
This release contains forward-looking statements. These
forward-looking statements are based on our current views with
respect to, among other things, future events and our financial
performance. We intend such forward-looking statements to be
covered by the safe harbor provisions for forward-looking
statements contained in Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended. All statements other than statements of historical
facts contained in this press release may be forward-looking
statements. Statements regarding our preliminary operating
results for fiscal year 2022, our future results of operations and
financial position, business strategy and plans and objectives of
management for future operations, including, among others,
statements regarding our expected growth, level of cash flow,
future capital expenditures and debt service obligations are
forward-looking statements.
In some cases, you can identify forward-looking statements by
terms, such as "may," "will," "should," "expects," "plans,"
"anticipates," "could," "intends," "targets," "projects,"
"contemplates," "believes," "estimates," "predicts," "potential,"
"preliminary," or "continue" or the negative of these terms or
other similar expressions. Accordingly, we caution you that any
such forward-looking statements are not guarantees of future
performance and are subject to risks, assumptions and uncertainties
that are difficult to predict. Although we believe that the
expectations reflected in these forward-looking statements are
reasonable as of the date made, actual results may prove to be
materially different from the results expressed or implied by the
forward-looking statements.
These forward-looking statements speak only as of the date of
this release and are subject to a number of important factors that
could cause actual results to differ materially from those in the
forward-looking statements, including, but not limited to, the
following: the marketing and sale of Medicare plans are subject to
numerous, complex and frequently changing laws, regulations and
guidelines; our business may be harmed if we lose our relationships
with carriers or if our relationships with carriers change; our
failure to grow our customer base or retain our existing customers;
carriers may reduce the commissions paid to us and change their
underwriting practices in ways that reduce the number of, or impact
the renewal or approval rates of, insurance policies sold through
our platform; factors that impact our estimate of LTV (as defined
below) may be adversely impacted; our management and independent
auditors have identified a material weakness in our internal
controls over financial reporting, and we may be unable to develop,
implement and maintain appropriate controls in future periods,
which may lead to errors or omissions in our financial statements;
whether our Encompass solution will achieve anticipated benefits;
our strategic focus on cash flow optimization may lead to decreased
revenue or otherwise adversely affect our business; we currently
depend on a small group of carriers for a substantial portion of
our revenue; information technology system failures could interrupt
our operations; our ability to sell Medicare-related health
insurance plans is largely dependent on our licensed health
insurance agents; operating and growing our business may require
additional capital; we may lose key employees or fail to attract
qualified employees; our operations may be adversely impacted by a
reduction in employee headcount or other similar actions;
volatility in general economic conditions, including inflation,
interest rates, and other commodity prices and exchange rates may
impact our financial position and performance; our ability to
borrow under the Credit Agreement is subject to ongoing compliance
with a number of financial covenants, affirmative covenants, and
other restrictions, which may limit our operations and our ability
to take certain actions; the Founders (as defined in our
Annual Report on Form 10-K for the year ended December 31, 2021 (the "2021 Form 10-K")) and
Centerbridge (as defined in the 2021 Form 10-K) have significant
influence over us, including control over decisions that require
the approval of stockholders; and other important factors described
in the section titled "Risk Factors" in our 2021 Form 10-K, and the
section titled "Management's Discussion and Analysis of Financial
Condition and Results of Operations" in our Quarterly Report on
Form 10-Q for the quarter ended September
30, 2022, and in our other filings with the Securities and
Exchange Commission.
The foregoing factors should not be construed as exhaustive and
should be read together with the other cautionary statements
included in this press release, as well as the cautionary
statements and other risk factors set forth in the 2021 Form 10-K,
Quarterly Report on Form 10-Q for the first quarter ended
March 31, 2022, Quarterly Report on
Form 10-Q for the second quarter ended June
30, 2022, Quarterly Report on Form 10-Q for the third
quarter ended September 30, 2022, and
other SEC filings. If one or more events related to these or other
risks or uncertainties materialize, or our underlying assumptions
prove to be incorrect, actual results may differ materially from
what we anticipate. Many of the important factors that will
determine these results are beyond our ability to control or
predict. Accordingly, you should not place undue reliance on any
such forward-looking statements. Any forward-looking statement
speaks only as of the date on which it is made, and, except as
otherwise required by law, we do not undertake any obligation to
publicly update or review any forward-looking statement, whether as
a result of new information, future developments or otherwise. New
factors emerge from time to time, and it is not possible for us to
predict which will arise. In addition, we cannot assess the impact
of each factor on our business or the extent to which any factor,
or combination of factors, may cause actual results to differ
materially from those contained in any forward-looking
statements.
Contacts
For Investors
IR@gohealth.com
For Media
Kekst CNC
Nick Capuano / Daniel Hoadley
nicholas.capuano@kekstcnc.com / daniel.hoadley@kekstcnc.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/gohealth-announces-strong-preliminary-aep-operating-results-from-efficient-model-and-expanded-encompass-solution-301722923.html
SOURCE GoHealth, Inc.