SelectQuote Inc Reports Fourth Quarter Fiscal Year 2024 Earnings
Intellectia.AI2024-09-13
SelectQuote, Inc. Reports Fourth Quarter Fiscal Year 2024 Earnings
SelectQuote, Inc. (NYSE: SLQT) released its financial results for the fourth quarter of fiscal year 2024, highlighting a notable performance despite facing industry challenges. Below is a concise summary of the company's financial results, segment performance, developments, and outlook.
Key Financial Metrics
| Metric | Q4 2024 | Q4 2023 | YoY Change | Quarter over Consensus | FY 2024 | FY 2023 | YoY Change |
|---|---|---|---|---|---|---|---|
| Total Revenue | $307.2M | $221.8M | +38.5% | Above ($272.95M) | $1.3B | $1.0B | +30.0% |
| Net Loss | $31.0M | $47.8M | Improved | - | $34.1M | $58.5M | Improved |
| Adjusted EBITDA | $14.4M | $(5.8)M | Improved | - | $117.0M | $74.3M | +57.5% |
Interpretation : SelectQuote demonstrated solid revenue growth both quarterly and annually, significantly surpassing Wall Street's expectations. The net loss narrowed, suggesting a positive trajectory towards profitability. The increase in Adjusted EBITDA highlights operational efficiencies and effective cost management.
Segment Revenue Performance
| Segment | Revenue (Q4 2024) | Adjusted EBITDA (Q4 2024) |
|---|---|---|
| Senior | $114.1M | $27.9M |
| Healthcare | $145.2M | $0.9M |
| Life | $42.1M | $7.2M |
| Auto & Home | $7.6M | $2.5M |
Interpretation : The Senior segment continues to be a strong performer, contributing significantly to profitability, while the Healthcare Services segment shows steady growth in revenue, largely driven by SelectRx membership. Despite smaller contributions from Life and Auto & Home segments, these areas remain stable.
Key Developments and Operational Highlights
- Sales of approved Medicare Advantage policies reached 107,272.
- Healthcare Services segment achieved its 5th consecutive profitable quarter.
- SelectRx membership surged by 68% year-over-year.
- Signing of a non-binding letter of intent for an initial commissions receivable securitization valued at approximately $100 million.
Comments from Executives
Tim Danker, CEO of SelectQuote, emphasized the company's consistent outperformance against internal expectations, with a strategic focus on profitability and cash efficiency. The growth in SelectRx memberships and utilization was cited as a critical driver for revenue. Danker also expressed confidence in the company's unique healthcare information platform as an essential industry solution.
Dividends/Share Repurchase Program
The earnings release did not mention any announcements regarding dividends or share repurchase programs.
Forward Guidance
For fiscal year 2025, SelectQuote anticipates revenue between $1.4 billion and $1.5 billion, a net loss in the range of $42 million to $6 million, and Adjusted EBITDA between $90 million and $120 million, reflecting an optimistic outlook.
Stock Price Movement
Following the earnings report, SelectQuote's stock experienced a decline of approximately 2.48%.
In summary, SelectQuote, Inc. has displayed robust operational performance in the fourth quarter of fiscal year 2024, underscoring strong segment results and effective strategies driving revenue growth and narrowing losses, with forward guidance indicating continued momentum.
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