GoHealth Inc Announces Q2 2024 Earnings Results
Intellectia.AI Updated: 1970-01-01
GoHealth, Inc. Announces Q2 2024 Earnings Results
CHICAGO, August 8, 2024 (GLOBE NEWSWIRE) - GoHealth, Inc. (NASDAQ:GOCO), a leading health insurance marketplace and Medicare-focused digital health company, announced its financial results for the second quarter ending June 30, 2024.
Key Financial Metrics:
| Metric | Q2 2024 | Q2 2023 | Year-over-Year Change | Consensus Estimate | Performance vs. Estimate |
|---|---|---|---|---|---|
| Revenue | $105.9 million | $142.8 million | -25.87% | $141.79 million | Below |
| Earnings per Share (EPS) | $-2.47 | N/A | N/A | $-2.47 | In-line |
| Net Loss | $59.3 million | $70.2 million | 15.56% improvement | N/A | N/A |
| Adjusted EBITDA | $-12.3 million | $0.8 million | -1637.5% | N/A | N/A |
| Cash Flow from Ops. (TTM) | $53.8 million | $85.9 million | -37.41% | N/A | N/A |
Interpretation: GoHealth’s financial performance in the second quarter showed significant declines in revenue and Adjusted EBITDA compared to the prior year. Although the net loss improved year-over-year, the revenue fell short of consensus estimates, indicating headwinds in the company's operations.
Revenue Performance by Segment:
| Segment | Q2 2024 Revenue | Q2 2023 Revenue | Year-over-Year Change | Previous Guidance |
|---|---|---|---|---|
| Internal Captive Agents | N/A | N/A | Increase (explicit %) | N/A |
| External GoPartner Solutions (GPS) Agents | N/A | N/A | Decrease (explicit %) | N/A |
Interpretation: The performance of GoHealth's internal captive agents improved year-over-year, while there was a decline in Submissions generated by the external GPS agents. The overall decline in total Submissions impacted the company's revenue negatively.
Comments from Company Officers: GoHealth’s CEO, Vijay Kotte, acknowledged the decline in net revenues due to a reduction in total Submissions. The company emphasized the strong performance of internal captive agents and their focus on leveraging AI and automation to improve operational efficiencies. Interim CFO, Katie O'Halloran, expressed confidence in the company's strategic initiatives, anticipating growth in Submission volume, revenue, and Adjusted EBITDA in the second half of the year.
Dividends and Share Repurchase Program: No information on dividends or share repurchase programs was provided in the report.
Forward Guidance: The company provided a positive outlook for the remainder of 2024, expecting improved performance in Submission volume, revenue, and Adjusted EBITDA.
Stock Price Movement: Following the earnings release, GoHealth’s stock experienced a -4.31% drop, reflecting market disappointment over the financial results.
In summary, GoHealth’s Q2 2024 earnings report indicated ongoing challenges as evidenced by the decrease in revenue and the in-line EPS. However, the company remains optimistic about the future, focusing on technology and strategic growth initiatives.