GoHealth, Inc. (GOCO) Bundle
A Brief History of GoHealth, Inc.
Company Overview
GoHealth, Inc. is a leading health insurance marketplace that connects consumers with various health plan partners. Founded in 2013, the company has expanded significantly, particularly in the Medicare segment.
Recent Financial Performance (2024)
As of September 30, 2024, GoHealth reported net revenues of $118.3 million for the three months ended September 30, 2024, compared to $132.0 million for the same period in 2023, representing a decrease of 10.4%. For the nine months ended September 30, 2024, revenues totaled $409.8 million, down 10.5% from $458.0 million in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Revenues | $118.3 million | $132.0 million | -10.4% |
| Net Income (Loss) | $15.4 million | ($56.2 million) | N/A |
| Adjusted EBITDA | ($12.1 million) | ($11.5 million) | -5.5% |
Operating Expenses
GoHealth's total operating expenses for Q3 2024 were $161.0 million, a decrease from $170.0 million in Q3 2023. Key components included:
| Expense Type | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue Share | $19.7 million | $36.0 million | -45.3% |
| Marketing and Advertising | $45.3 million | $39.4 million | +14.9% |
| General and Administrative | $17.1 million | $13.0 million | +32.2% |
Balance Sheet Highlights
As of September 30, 2024, GoHealth reported total assets of $1.34 billion, down from $1.50 billion at the end of 2023. Current liabilities stood at $282.0 million, and long-term debt was $416.3 million.
| Balance Sheet Item | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $1.34 billion | $1.50 billion |
| Current Liabilities | $282.0 million | $370.0 million |
| Long-Term Debt | $416.3 million | $422.7 million |
Key Business Metrics
For the three months ended September 30, 2024, GoHealth's significant health plan partners included:
| Health Plan Partner | Q3 2024 Revenue Contribution (%) |
|---|---|
| Humana | 31.7% |
| United | 25.9% |
| Elevance Health | 18.2% |
| Centene | 10.0% |
Recent Developments
In 2024, GoHealth recognized a gain on a bargain purchase amounting to $77.4 million related to the acquisition of e-TeleQuote, which significantly impacted its financial results for the year.
Future Outlook
GoHealth continues to focus on enhancing its proprietary technology and expanding its consumer base through targeted marketing strategies. The company aims to improve operational efficiencies and adapt to changes in the health insurance landscape.
A Who Owns GoHealth, Inc. (GOCO)
Ownership Structure
GoHealth, Inc. operates as the sole managing member of GHH, LLC. Although GoHealth has a minority economic interest in GHH, LLC, it retains the sole voting interest and control over the business and affairs of GHH, LLC and its subsidiaries.
Class A and Class B Common Stock Ownership
As of September 30, 2024, the ownership distribution of GoHealth's Class A and Class B common stock is as follows:
| Class of Stock | Shares Outstanding | Ownership Percentage |
|---|---|---|
| Class A Common Stock | 9,823,000 | 43.3% |
| Class B Common Stock | 12,814,000 | 56.7% |
Non-Controlling Interests
For the three and nine months ended September 30, 2024, the weighted average ownership percentages for non-controlling interest holders were 55.9% and 56.3%, respectively. This indicates a slight decrease from the same periods in 2023, where the percentages were 57.5% and 58.5%.
Economic Interests
The non-controlling interests reflect the economic interests held directly or indirectly by the Continuing Equity Owners within GHH, LLC, which significantly impacts GoHealth's financial statements.
Preferred Stock
GoHealth is also subject to obligations related to Series A redeemable convertible preferred stock, which is not included in the common stock ownership percentages.
Financial Performance Indicators
As of September 30, 2024, GoHealth reported the following financial metrics:
| Metric | Value (in thousands) |
|---|---|
| Net Revenues | $118,292 |
| Net Loss | ($65,294) |
| Weighted-Average Shares Outstanding (Basic) | 10,077,000 |
| Weighted-Average Shares Outstanding (Diluted) | 14,580,000 |
Cash Flow Summary
For the nine months ended September 30, 2024, GoHealth's cash flow activities were as follows:
| Cash Flow Activity | Value (in thousands) |
|---|---|
| Net Cash Provided by (Used in) Operating Activities | ($36,211) |
| Net Cash Provided by (Used in) Investing Activities | $6,025 |
| Net Cash Provided by (Used in) Financing Activities | ($25,064) |
Debt Information
As of September 30, 2024, GoHealth's outstanding debt included:
| Debt Facility | Principal Amount Outstanding (in thousands) |
|---|---|
| Incremental Term Loan Facility | $99,500 |
| 2021 Incremental Term Loans | $266,800 |
| 2021-2 Incremental Term Loans | $86,500 |
Recent Acquisitions
GoHealth recognized a gain on bargain purchase of $77.4 million related to the acquisition of e-TeleQuote, emphasizing its strategic growth initiatives.
GoHealth, Inc. (GOCO) Mission Statement
GoHealth, Inc. positions itself as a leading health insurance marketplace focused on creating a seamless experience for consumers navigating their healthcare options. The company aims to empower individuals by providing them with the necessary tools and information, ensuring they can make informed decisions about their health insurance needs.
Financial Overview
As of September 30, 2024, GoHealth reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Revenues | $118,292,000 | $132,037,000 | $(13,745,000) | (10.4%) |
| Operating Expenses | $160,964,000 | $170,013,000 | $(9,049,000) | (5.3%) |
| Net Income (Loss) | $15,366,000 | $(56,204,000) | $71,570,000 | NM |
| Adjusted EBITDA | $(12,106,000) | $(11,475,000) | $(631,000) | (5.5%) |
Operational Metrics
GoHealth's operational performance is also critical to its mission of enhancing consumer experience:
| Metric | Q3 2024 | Q3 2023 | Change | Change (%) |
|---|---|---|---|---|
| Submissions | 166,195 | 161,550 | 4,645 | 2.9% |
| Sales per Submission | $1.1 | $1.1 | 0 | 0% | Direct Operating Cost of Submission | $110,245,000 | $120,362,000 | $(10,117,000) | (8.4%) |
Consumer Engagement Initiatives
GoHealth has implemented various initiatives aimed at increasing consumer engagement and satisfaction:
- Enhanced marketing strategies leading to improved internal agent performance.
- Investment in technology to streamline the consumer decision-making process.
- Focus on Medicare services through the Encompass operating model, promoting high-quality consumer experiences.
Significant Customers
The company's revenue is heavily reliant on a few key health plan partners:
| Customer | Q3 2024 Contribution (%) | Q3 2023 Contribution (%) |
|---|---|---|
| Humana | 31.7% | 44.1% |
| United Health Group | 25.9% | 19.8% |
| Elevance Health | 18.2% | 19.9% |
| Centene | 10.0% | 6.6% |
Market Position and Strategy
GoHealth's strategy revolves around leveraging its digital platform to meet consumer needs in a rapidly evolving healthcare landscape. The company aims to maintain its competitive edge through:
- Continuous investment in technology and marketing.
- Strategic partnerships with key health plan providers.
- Focus on operational efficiency and cost management.
As of September 30, 2024, the company's cash and cash equivalents stood at $35,527,000, reflecting a significant change from the previous period, highlighting the importance of managing liquidity effectively amid fluctuating revenues and operational costs.
How GoHealth, Inc. (GOCO) Works
Business Model
GoHealth, Inc. operates as a health insurance marketplace, primarily focusing on Medicare plans. The company connects consumers with health insurance providers through its proprietary technology platform, Encompass. This platform facilitates the enrollment process for users seeking health insurance coverage.
Financial Performance
For the three months ended September 30, 2024, GoHealth reported net revenues of $118.3 million, a decrease of 10.4% from $132.0 million in the same period of 2023. For the nine months ended September 30, 2024, net revenues were $409.8 million, down 10.5% from $458.0 million in the prior year.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Revenues | $118.3 million | $132.0 million | (10.4%) |
| Net Revenues (9 months) | $409.8 million | $458.0 million | (10.5%) |
Operating Expenses
GoHealth's operating expenses for the three months ended September 30, 2024, totaled $161.0 million, compared to $170.0 million in Q3 2023. The breakdown of major expenses includes:
| Expense Type | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue Share | $19.7 million | $36.0 million | (45.3%) |
| Marketing and Advertising | $45.3 million | $39.4 million | 14.9% |
| Consumer Care and Enrollment | $45.6 million | $46.5 million | (2.0%) |
| General and Administrative | $17.1 million | $13.0 million | 32.2% |
Key Performance Metrics
GoHealth tracks various operational metrics to gauge its business performance. Notably, the number of submissions, which are applications completed by consumers, was:
| Performance Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Submissions | 166,195 | 161,550 | 2.9% |
Liquidity and Capital Resources
As of September 30, 2024, GoHealth had cash and cash equivalents totaling $35.5 million, down from $90.8 million at the end of 2023. The company reported net cash used in operating activities of $36.2 million for the nine months ended September 30, 2024.
| Cash Flow Summary | 9 Months Ended September 30, 2024 | 9 Months Ended September 30, 2023 |
|---|---|---|
| Net Cash from Operating Activities | ($36.2 million) | $37.8 million |
| Net Cash from Investing Activities | $6.0 million | ($8.1 million) |
| Net Cash from Financing Activities | ($25.1 million) | ($20.0 million) |
Debt Obligations
GoHealth has significant debt obligations. As of September 30, 2024, the company reported outstanding principal amounts under its term loan facilities totaling approximately $452.8 million.
| Debt Facility | Outstanding Amount (in millions) |
|---|---|
| Incremental Term Loan Facility | $99.5 |
| 2021 Incremental Term Loans | $266.8 |
| 2021-2 Incremental Term Loans | $86.5 |
Recent Acquisition
GoHealth recognized a gain on bargain purchase of $77.4 million related to the acquisition of e-TeleQuote during the three months ended September 30, 2024. This acquisition is a strategic move to enhance its service offerings and expand market reach.
How GoHealth, Inc. (GOCO) Makes Money
Revenue Streams
GoHealth, Inc. primarily generates revenue through two models: agency revenue and non-agency revenue. As of September 30, 2024, the breakdown of net revenues is as follows:
| Revenue Type | Three Months Ended Sep. 30, 2024 (in thousands) | Three Months Ended Sep. 30, 2023 (in thousands) | Nine Months Ended Sep. 30, 2024 (in thousands) | Nine Months Ended Sep. 30, 2023 (in thousands) |
|---|---|---|---|---|
| Agency Revenue | $92,276 | $97,879 | $276,080 | $333,132 |
| Non-Agency Revenue | $24,377 | $33,510 | $130,723 | $106,586 |
| Total Net Revenues | $118,292 | $132,037 | $409,762 | $457,974 |
Agency Revenue
Agency revenue includes commissions earned from health plan partners when GoHealth agents or external agents enroll consumers in Medicare insurance products. In the three months ended September 30, 2024, agency revenue accounted for approximately 78% of total net revenues.
- Commission Revenue: For the three months ended September 30, 2024, commission revenue was $77,868 thousand, a slight increase from $76,579 thousand in the same period of 2023.
- Partner Marketing Revenue: This revenue was $14,408 thousand for the three months ended September 30, 2024, down from $21,300 thousand in 2023.
Non-Agency Revenue
Non-agency revenue is derived from enrollment and engagement services where cash is collected in advance. For the three months ended September 30, 2024, non-agency revenue was $24,377 thousand, a decrease from $33,510 thousand in the prior year.
Operating Expenses
GoHealth's operating expenses for the three months ended September 30, 2024, totaled $160,964 thousand, compared to $170,013 thousand for the same period in 2023. The major components of operating expenses are:
| Expense Type | Three Months Ended Sep. 30, 2024 (in thousands) | Three Months Ended Sep. 30, 2023 (in thousands) |
|---|---|---|
| Revenue Share | $19,683 | $35,992 |
| Marketing and Advertising | $45,270 | $39,416 |
| Consumer Care and Enrollment | $45,556 | $46,472 |
| Technology | $9,801 | $11,652 |
| General and Administrative | $17,140 | $12,967 |
| Amortization of Intangible Assets | $23,514 | $23,514 |
Net Income (Loss)
For the three months ended September 30, 2024, GoHealth reported a net income of $15,366 thousand, compared to a net loss of $56,204 thousand for the same period in 2023. The net income attributable to GoHealth, Inc. was $6,775 thousand for the three months ended September 30, 2024.
Key Performance Metrics
The following key metrics reflect GoHealth's operational performance:
| Metric | Three Months Ended Sep. 30, 2024 | Three Months Ended Sep. 30, 2023 |
|---|---|---|
| Submissions | 166,195 | 161,550 |
| Sales per Submission | $702 | $813 |
| Direct Operating Cost per Submission | Not Provided | Not Provided |
GoHealth's focus on enhancing marketing efforts and improving technology capabilities has contributed to a slight increase in submissions, despite a decrease in sales per submission due to a shift from non-agency to agency revenue models.
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Resources:
- GoHealth, Inc. (GOCO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of GoHealth, Inc. (GOCO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View GoHealth, Inc. (GOCO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.