Good morning, and welcome to the GoHealth Fourth Quarter and Full Year 2024 Earnings Conference Call. My name is Olivia, and I will be your operator for today's call. Currently, all participants are in a listen-only mode. Following the prepared remarks, we will conduct a question-and-answer session. As a reminder, this conference is being recorded. I will now turn the call over to John Shave, Vice President of Investor Relations. John, you may begin.

Thank you, and good morning. Welcome to GoHealth's fourth quarter and full year 2024 results call. Joining me today are Vijay Kotte, Chief Executive Officer; and Brendan Shanahan, Chief Financial Officer. Today's conference call contains forward-looking statements based on our current expectations. Numerous known and unknown risks and uncertainties may cause actual results to differ materially from those anticipated or projected in these statements. Many of the factors that will determine future results are beyond the company's ability to control or predict. You should not place undue reliance on any forward-looking statements, and the company undertakes no obligation to update or revise any of these statements whether due to new information, future events or otherwise. Earlier today, we issued a press release containing our results for the fourth quarter and full year 2024. We have posted the release on the GoHealth website under the Investor Relations tab. In the press release, we have listed a number of risk factors that you should consider in conjunction with our forward-looking statements. We encourage you to consider the other risk factors described in our Form 10-K and Form 10-Q reports filed with the Securities and Exchange Commission for additional information. During this call, we will be discussing certain non-GAAP financial measures. These measures are reconciled to the most directly comparable GAAP financial measure in our press release. You may also refer to the investor presentation posted to the Investor Relations section of our website for reconciliations of non-GAAP measures to the most comparable GAAP measures discussed during this earnings call. I will now turn the call over to GoHealth's CEO, Vijay Kotte.

Thank you, John, and good morning, everyone. Our 2024 results reflect robust financial growth and operational excellence. The success of 2024 is a testament to our continued, unwavering dedication to empowering and engaging Medicare consumers. By simplifying the complexities of Medicare with personalized guidance from a licensed agent using leading technology, we are enabling millions of consumers to make more informed and transparent healthcare decisions. For those new to the GoHealth story, our mission is to provide support, clarity, and ultimately peace of mind to Medicare consumers in a landscape often marked by confusion and uncertainty. The US has over 67 million Medicare-eligible consumers with over half enrolled in Medicare Advantage, or MA. In many geographic regions, consumers face 40-plus plan options in Medicare Advantage, creating confusion and deterring them from exploring better options. GoHealth seeks to simplify these decisions by empowering consumers with unbiased tools and guidance. For example, this past December, Susan, a retiree and Medicare Advantage enrollee, reached out to GoHealth and afterwards left us an unpaid online review. Susan was frustrated by the lack of understanding of her current coverage, steadily increasing out-of-pocket costs, and a suspicion that she may be in the wrong plan. Susan felt uneasy and confused. Overwhelmed by a flurry of calls from various marketers, Susan reached out to GoHealth for a marketplace view of the Medicare Advantage options available to her and her husband. A licensed agent at GoHealth listened to Susan's concerns, gathered her profile and goals and educated her on the plan options with a thorough comparison of coverage and benefits. Susan selected and enrolled in a new plan with GoHealth for her and her husband, and reports that they are now saving more than $500 per month. According to Susan, she left the call with the confidence that she understood her options better than she ever had before and with a sense of relief, saying that 'A weight has been lifted from my shoulders.' Susan goes on to say she plans to come back next year to revisit her situation, review options, and confirm she's in the right plan. At GoHealth, we empower Medicare-eligible consumers with proprietary and unbiased tools used by our highly trained and experienced licensed agents. We have evolved from a traditional Medicare enrollment company to a Medicare engagement company, focusing on building long-term, high-quality relationships with our consumers. We believe this shift allows us to deliver a more integrated and personalized approach to care, reinforcing our unique role in the Medicare landscape. The 2024 Annual Enrollment Period, or AEP, drove exceptional results for GoHealth compared to the prior year. We surpassed expectations across key metrics, which we believe solidifies our market leadership and demonstrates the strength of our strategy and team. We are proud to have supported nearly 3 million consumers in assessing their benefit options in 2024. During Q4, this resulted in over 481,000 submissions, a 67% improvement year-over-year. This achievement reflects the powerful combination of our people, processes, and technology platform, which together drove these improved results. In Q4 2024, we achieved significant year-over-year improvements in both operational efficiency and financial performance. Our submission volume increased in Q4 from the previous year, driven in part by the following factors. First, our captive Medicare team, inclusive of e-TeleQuote, saw submissions increase by approximately 82%, driven by improved conversion rates and improved call efficiency times. And second, GoPartner Solutions, our external agents, also demonstrated a 25% year-over-year increase in submissions, attributed to effective onboarding of eight new agency partners. Our marketing and agent efficiencies have also translated into meaningful cost reductions. Direct operating cost per submission or customer acquisition costs, CAC, decreased by 27% year-over-year in Q4 to $501. Our Q4 2024 revenue increased to $389 million compared to $277 million in Q4 2023, representing a 41% improvement. Q4 2024 adjusted EBITDA grew to $118 million, a 107% year-over-year improvement. Looking ahead, the positive market dynamics we observed in Q4 2024 are expected to remain favorable through at least the first three quarters of 2025, with cautious optimism for similar favorable dynamics for the fourth quarter, which we anticipate could drive continued opportunity. We are immensely proud of the team's achievements this quarter, which we believe showcase not only outstanding performance, but also our ability to lead with agility and innovation in the dynamic and ever-evolving Medicare landscape. As we reflect on our performance in Q4, it's essential to unpack the operational milestones that contributed to these results. In addition to the financial metrics shared earlier, we achieved several operational milestones that provide further context for our success. Let's explore how our strategies translated into meaningful outcomes. There were three primary contributors to our operational success in Q4: agent productivity, our PlanFit technology platform, and our integration of the e-TeleQuote business. A brief word on all of these contributors. First, agent productivity. Through enhanced training programs and the adoption of advanced tools, we reduced average handle time by 8.6% in Q4 2024 compared to Q4 2023. The captive team was significantly more efficient year-over-year when measured by our average handle time alongside the number of consumers we serve and the actual conversion rate. Our team consulted with more consumers per agent per day, while decreasing average handle time even amidst a conversion rate improvement, which usually increases average handle time and decreases capacity to serve more consumers. Second, our Encompass and PlanFit platforms continued to set us apart from our competitors. A cornerstone of our transformation into a Medicare engagement company has been the successful rollout of our PlanFit CheckUp, introduced in Q4 2023. Powered by our AI-driven PlanFit tool, this initiative has significantly enhanced the Medicare Advantage shopping experience for consumers. PlanFit CheckUp offers three key outcomes: one, enrolling in a new plan; two, informing consumers about a better option; or three, reassuring them that their current plan is the right choice. By compensating our agents for each completed checkup regardless of the outcome, we ensure a strong focus on delivering the best possible guidance to our consumers. PlanFit CheckUp grew 72% in Q4 2024 compared to the same period in 2023, reflecting strong consumer engagement. Due to significant disruption caused by health plans, plan exits or benefit degradations, more PlanFit CheckUps resulted in recommendations of new plan enrollment via our PlanFit tool than in previous years. Additionally, we recommended approximately 29,000 consumers remain in their current Medicare Advantage plan during Q4, ensuring they stayed in a plan best suited to their personal needs and long-term value. In 2024, we launched the PlanFit Save initiative, a program where we partnered with select health plans to ensure agents were properly incentivized to prioritize the best interests of the consumer, and we began receiving compensation from those initial participating health plans for driving member retention. Since its initial launch, implementation has been smooth and we are seeing continued interest from health plans looking to integrate this program. As we expand PlanFit Save, we remain focused on growing our partnerships and enhancing the value we deliver to both consumers and health plans. Third, our transformation and acceleration of the e-TeleQuote, or ETQ business. We believe this acquisition demonstrates how strategic integration through the deployment of our proprietary AI-driven tools, automation, training and sales management can drive positive results despite the transaction closing just two weeks prior to the start of AEP. ETQ delivered 54,000 submissions during AEP, an impressive 170% improvement year-over-year and materially higher than ETQ's expectations prior to the close of our transaction. We believe these results reflect the combined impact of our platform's efficiency, enhanced training program, and a relentless focus on execution and partnership with the ETQ team. We focused on three important attributes of success for ETQ prior to AEP. First, operational improvements. We replaced the marketplace technology platform ETQ operated on with GoHealth's proprietary PlanFit tool and marketplace. The deployment of the GoHealth marketplace significantly improved call efficiency and improved agent optimization, enabling ETQ to process more consumers skillfully and compliantly. Second, enhanced training programs. Our operations leaders designed and executed comprehensive training programs, including customized onboarding tracks for new agents and targeted coaching for leaders at all levels. This focus on upskilling contributed to readiness and excellence throughout the AEP period. Finally, inbound lead optimization. Shifting to primarily inbound leads, sourced through digital and mail campaigns, scored and matched to the appropriate agents using GoHealth proprietary AI tools resulted in higher conversion rates and a more efficient sales funnel. Building on the solid foundation of 2024, we intend to capitalize on favorable market conditions that lie ahead. Our outlook for 2025 reflects confidence in our strategies and we are optimistic that the positive market dynamics we witnessed in Q4 2024 will remain favorable throughout the first three quarters of 2025. Rather than issuing specific guidance, we will outline our general expectations across several key financial indicators. For 2025, we anticipate meaningful revenue growth and profit expansion in the first three quarters versus 2024, driven by ongoing refinements to our operating model, enhanced efficiencies, and favorable market dynamics. Reflecting on the unique dynamics of the 2024 annual enrollment period, we identified and capitalized on opportunities that yielded substantial returns. Though 2024 AEP had very unique market dynamics, led by very high consumer disruption, we believe the fourth quarter, or AEP of 2025, will still have positive market dynamics but less disruption than this past year. As a result, we believe the market conditions will be slightly less favorable, though still positive, and thus, our AEP efficiency will be contingent upon both our process and automation progress, as well as the degree to which these market conditions change. As the year progresses, we expect to gain clearer insights into emerging opportunities, enabling us to make informed decisions that align with our strategic and financial objectives. As we stated last year and always expect to be true, regulatory and market factors could influence our performance in the year ahead. First, the CMS final rate notice remains a key determinant of health plan funding and revenue assumptions. This year, CMS is projecting a 4.3% average revenue increase for Medicare Advantage health plans in 2026, inclusive of a 7.7% increase to broker commission, the highest effective growth rate in nearly a decade. This increase may signal a more consumer-friendly and growth-oriented MA market, and we are well positioned to capture additional market share while deepening our relationships with both consumers and health plan partners. Next, we believe that CMS final marketing rules will play a critical role in shaping our marketing effectiveness and outreach strategies. For example, we continue to monitor the implementation of the guidelines in the SEP of 2025 around the Medicare Dual Eligible Special Enrollment Period, eligibility, and access to integrated dual eligible plans. As regulations evolve, we have a proven ability to use our integrated technology and guided sales processes to adapt swiftly and are prepared to maintain engagement efficiency and compliance while continuing to connect consumers with the most suitable plans. Finally, health plan relative competitiveness and thus mix is driven by the dynamic interplay between health plan profitability, consumer switching behavior, and plan affordability on a county-by-county basis. As always, the impact of these factors, whether individually or in combination, will shape our performance throughout 2025. Some of these key variables will become clearer as the year progresses, while others may remain uncertain until the early part of the fourth quarter, leading into and during AEP. As we continue to navigate these industry shifts, our agile approach and strategic investments should ensure that we are well prepared to adapt, capitalize on opportunities, and drive sustained growth. Brendan Shanahan, our CFO, will provide a detailed review of our financial performance for Q4 and the full year.

Thank you, Vijay. As we review our financial performance, let us begin with the fourth quarter of 2024. Fourth quarter revenue totaled $389.1 million, representing a 41% increase compared to Q4 2023. Higher submission volumes drove growth and improved operational efficiency. Adjusted EBITDA for Q4 more than doubled to $117.8 million, a 107% increase from $57 million in Q4 2023. For the full year 2024, revenue was $798.9 million, reflecting a 9% year-over-year increase compared to $734.7 million in 2023. Driven by ongoing operational improvements, we achieved $120.3 million in adjusted EBITDA for the year ended 2024, compared to $75.1 million in 2023, a 60% increase. For full year 2024 resulted in negative cash flow from operations of $21.6 million from $130.7 million in the prior-year period. During AEP, we observed a shift in enrollments from non-agency to agency contracts, a dynamic that is expected to remain fluid year-to-year, influenced by a variety of market factors and dynamics. We recognize the unique opportunity of this AEP season to invest capital in the fourth quarter in both ETQ and our own operations for high returns on cash deployed. Our agent productivity, technology and pivoting e-TeleQuote into a growth business were all good returns on deployed cash. Cost optimization efforts across marketing, agent training and operational infrastructure significantly improved our margins. A key driver of these results was the Q4 2024 reduction in our direct operating cost per submission or customer acquisition cost by 27% from $688 to $501, which we believe is a testament to our targeted marketing strategies and efficient agent performance. As previously announced, we successfully completed the refinancing of our term loan credit facility, a milestone that accentuates confidence in GoHealth's financial stability and strengthens our foundation for long-term growth. The new $475 million term loan facility, set to mature in 2029, offers improved financial terms, including an interest rate of SOFR plus 7.5% with a 25 basis point reduction upon the termination of our current revolver. This refinancing not only extends the maturity of GoHealth's term loans through 2029, but we believe it also provides us the opportunity to continue pursuing strategic growth initiatives and innovation. We are proud of this outcome, which we believe reflects dedicated support from our investors and their confidence in GoHealth's business model and financial health. With extended maturities and improved terms, we are confident that GoHealth is well positioned to capitalize on favorable market dynamics and remain focused on delivering sustainable value for our stakeholders. Importantly, I also want to highlight our commitment to risk management in our calculation of lifetime values, or LTVs. Our approach incorporates comprehensive risk assessment and mitigation strategies, ensuring that our LTV calculations accurately reflect potential uncertainties and align with our strategic financial objectives. We believe this strategy not only supports our current performance, but also provides a solid foundation for scalable and sustainable growth. Our commissions receivable totaled approximately $1.1 billion at December 31, 2024. As we close the discussion of our 2024 financial performance, it is essential to highlight the strong connection between our operational milestones and the exceptional results we've achieved. We believe the year-over-year profitable growth is a testament to the efficiency of our proprietary technology platforms and the dedication of our agents. We are confident the strong operational performance directly translates into tangible financial success, exemplifying the alignment between strategy execution and measurable outcomes. Our focus on cost efficiency further amplifies these results. The Q4 reduction in direct operating cost per submission from $688 to $501 reflects the impact of innovative marketing strategies and streamlined agent training programs, enabling us to achieve a 107% improvement in adjusted EBITDA for the fourth quarter compared to the prior-year period in 2023. We believe these advancements not only strengthen our financial foundation, but also reinforce our ability to allocate resources strategically, ensuring sustainable growth. Moreover, the strong performance of e-TeleQuote delivering 54,000 submissions during AEP highlights how operational integration and innovative tools can transform key acquisitions into growth engines. Additionally, platforms like Encompass and PlanFit have elevated the consumer experience, powering over 90,000 interactions in Q4 2024 alone and driving revenue growth of 41% year-over-year. We believe our achievements extend beyond financial metrics, underscoring GoHealth's leadership in the dynamic Medicare landscape. By aligning strategic investments with innovation and operational efficiency, we believe we have built a resilient business model that prioritizes long-term value creation for all stakeholders. As we move forward, our focus remains on leveraging those strengths to capitalize on future opportunities and striving toward continued success in the years to come. As we conclude this financial review, we are confident that our progress in 2024 has set a solid foundation for sustained growth. I will now hand it back to Vijay for his reflections and closing remarks.

Thank you, Brendan. As we reflect on 2024, we view our achievements as more than just milestones. They are building blocks for a future aligned with GoHealth mission to provide clarity, support and peace of mind to Medicare consumers. Each success this year from accelerating submission growth to the operational efficiencies achieved throughout our Encompass platform represent a step forward in transforming how we engage with and empower our consumers. Our innovations like PlanFit and the Encompass model exemplify our commitment to leveraging technology to simplify the Medicare landscape. We believe these tools don't just drive numbers, they redefine the consumer experience by offering personalized data-driven solutions that inspire trust and long-term loyalty. Our 2024 success enables us to invest in innovation, strengthen partnerships and scale impact. The e-TeleQuote integration and turnaround demonstrates our ability to thrive in a dynamic market, paving the way for sustainable growth in 2025 and beyond. We will now take your questions.

Thank you. Our first question comes from Ben Hendrix with RBC Capital Markets. Your line is now open.

Thank you, and congratulations on a strong quarter. There's clearly a solid margin story here, even with some decrease in revenue per submission. Can you elaborate on your current perspective regarding revenue per submission? What are the factors contributing to the reductions you're observing in customer acquisition costs? Additionally, how much potential do you believe there is for further margin expansion? Thank you.

Good morning, Ben. Thanks for joining. Always great to hear your voice. Just to repeat the question, you were asking about some of the trends we're seeing on the revenue per side as well as the margin expansion dynamics underneath that regarding efficiency and how we're able to continue to drive that. Is that a fair representation of the question?

Yes. Thank you.

Great. So, first on the revenue side, obviously, there's always a mix dynamic, right? So, we're always balancing thinking about agency versus non-agency, thinking about which products are going to be most stable for the consumers as to how we think about agency/non-agency, but there's always a mixed dynamic that will be there. And so, we don't put our thumb on the scale, right? We let the benefits speak for what's the right plan and most suitable plan for the consumer. And so, when we do that, the best hedge for us is to continuously drive our efficiency on our cost that we can control on a day-to-day basis. So, though there may be always some fluctuation on the revenue per sale, it can go up, go down, primarily driven by the mix of product more so than anything else. The cost of the things that we are driving aggressively and have been for the last three years where we've been focused on standardizing our processes through our guided sales process that fits through the PlanFit CheckUp in the Encompass model. You've heard these words time and time again. By reinforcing the standardization, we were able to gain a significant amount of efficiency. By enhancing our marketing analytics to be able to tie supply demand, we've been able to generate a significant amount of efficiency. And then, by automating more of the tools within these standardized processes, we're unlocking more and more automation opportunities. We see more opportunity to come. As we've said from time to time, as we've discussed the efficiencies in the technology platform, we have done more with our agents every year consecutively, meaning we've had the same or fewer agents, yet they are able to interact with and support more consumers in a shorter amount of time each year sequentially. That's a really important dynamic, and we believe there's more of an opportunity there. So, the margin expansion, we expect to continue to be investing in and have, and we're really excited about how we continue to show even this year on a year-over-year basis, I believe the number was 27% improvement on our direct cost per submission. And that is getting us to just around $500 now per submission, which is unseen from our perspective within the industry.

Thank you. That's helpful. Looking ahead, you've mentioned some cautious optimism for the fourth quarter of 2025. It seems your competitors have also expressed caution regarding expectations for AEP. I would like to know more about what you consider the biggest risks and rewards, as well as market dynamics, and how you view GoHealth's competitive position as we move towards the end of the year. Thank you.

No, this is a great question, Ben. You refer to cautious optimism. I think the way I think about the fourth quarter of 2025 as we compare that to last year, we don't expect as many plan exits, right? So that was a major catalyst of a significant disruption in 2024 versus what we're likely going to see in 2025. But we do expect a lot of disruption, right? That disruption is going to come because we still know some health plans have margin challenges and we expect them to degrade some benefits. And we can clearly see from some of the most updated data some certain health plans need to and are interested in growing. If you look geography by geography, around the country, you're going to find markets where one carrier or health plan wants to grow and another wants to decline and vice versa, where they're investing and/or trying to pull back. The uniqueness of our model and what our marketing and sales team is able to do is we're able to be very targeted into those geographies to identify where disruption is happening and optimize for it, so that we can serve as many consumers as possible there, match them with the right agents who have the skills to serve them, and to be able to support that at scale and really tap into the opportunity. So, I don't think it's an overly conservative view on the difference of AEPs. It's going to be a little bit of a different disruption type. And I think we're well poised for it given our tech platform and our marketing capabilities to be very, very laser-like in the way we target consumers who can use our help the most and then match them with the agent. And so, we're excited about that this year.

Thank you. And our next question coming from the line of Pat McCann with Noble Capital Markets. Your line is now open.

Good morning, everyone, and congratulations on the quarter. I have a couple of questions. First, I want to discuss PlanFit Save. I understand that this particular Annual Enrollment Period was marked by disruption, and if you could have chosen differently, you would have preferred to have it operational last year. However, I would like to know if it had a significant impact on revenue. Can you quantify how PlanFit Save contributed to the fourth quarter?

Hi, Pat. It's great to hear from you. We're really excited about PlanFit Save. It aligns perfectly with our goal of doing what's best for consumers, which doesn't always mean changing plans. We're not only compensating our agents for their efforts, which we've been doing for over a year, but we are also being recognized by health plans for promoting member retention and providing peace of mind to consumers. As we entered the fourth quarter, we had agreements in place to be rewarded in this manner, but due to disruptions, there were fewer instances where it applied. In my prepared remarks, I mentioned that there were about 29,000 occasions where we suggested consumers stay on their current plans. The impact on our overall performance for the quarter was minimal and significantly less than it could have been if we had been in 2023 during the AEP, which had more of a push for benefits and substantial disruptions that justified changes for consumers. Moving forward, think of this as just one tool in our toolbox. In a highly disruptive market, we tend to have higher conversions and fewer PlanFit Saves. Conversely, in a more stable benefits environment, we expect to see more PlanFit Save and less conversion. Our aim is to build a responsive model that adapts to the market changes. If we can ensure that we're doing the right thing for consumers and be rewarded for it in any scenario, that's the ideal way to develop our business. Specifically regarding your question, PlanFit Save constituted a very small part of our performance in the fourth quarter because it functioned as intended, with more consumers needing changes, and we supported that.

Great. Thanks for that. And then, I also just wanted to touch on the balance sheet. I think Brendan mentioned the over $1 billion in commission receivables. And I was just wondering, if a securitization of those would potentially be part of your plan for improving the balance sheet. And if so, to what magnitude might you look to go with something like that?

Great question. When I started about three years ago, we focused on optimizing our cash position and managing our debt to ensure we had the best arrangements in place at that time. Since then, we've managed to pay down about 25% of that debt. We also refinanced with three new investors and lenders late last year, which allowed us to restructure our cost structure efficiently, freeing up more funds to invest in the business and our technology. As we evaluate our balance sheet and the opportunities in the marketplace, we continuously assess how to lower our cost of capital to enable more reinvestment in serving consumers. We're keeping all options on the table to monitor and secure the best terms available for us. We're ensuring that our approach is not driven by desperation but rather finding the right situation, arrangements, and parties to invest constructively in the business. So, while I'm not answering directly, I can say that we are considering all alternatives to decrease our cost of capital and reinvest in the business, including different options beyond what you mentioned.

Thank you. And our next question coming from the line of Robert McGuire with Granite Research. Your line is now open.

Good morning, Vijay. Congratulations on the quarter. Can you provide some insights on customer acquisition cost and where you expect it to be by the end of 2025? Additionally, what are your thoughts on its potential trajectory over the next few years?

I am not ready to provide multiyear guidance on our cost structure. However, I can say that we are very focused on cash on cash return. We want to ensure that we are building an operating model that can produce highly efficient volume and serve as many consumers as possible while achieving a year one cash on cash return. The lower our cost structure, the greater the likelihood of reaching that goal. This ties back to our previous discussions about reducing or improving our debt profile and ensuring we can adjust our focus based on market conditions. We aim to simplify market complexities and make it more predictable for us. There is still ample opportunity ahead. We have tackled a lot of the easier challenges and are now approaching the more difficult ones, but there is still much more we can achieve. As demonstrated in the fourth quarter of this past year, we are capable of substantially increasing our performance when the market conditions are favorable, and there remains further efficiency to unlock.

I appreciate that. Just next question, it's exciting just to see the opportunity to invest in the business this year. Can you kind of give us an idea of your free cash flow expectations for 2025? How they might flow through the year? And how much cash you anticipate investing this year?

Thank you for your question. While we will not provide specific guidance, I can share how we approach our operations. Over the last couple of years, we have focused on being prepared and proactive while also adapting quickly to market changes. When opportunities arise, we assess the investment returns on our cash. If the returns from investments exceed the cost of paying down debt, we will prioritize those investments. Conversely, if investing does not yield better returns, we will focus on reducing debt, as it incurs interest costs. Our strategy involves careful consideration of cash deployment, whether that means investing in technology, marketing, or expanding our workforce in response to market opportunities. If opportunities are not present, we may direct funds towards reducing debt or enhancing other capabilities within the organization. Although my response may not fully address your inquiry, it reflects our overall approach. We aim to generate cash while thoughtfully considering how to use it, which makes providing exact cash flow measures challenging. However, our goal remains to be beneficial overall.

Thank you. And our next question coming from the line of Jim Sidoti with Sidoti & Company. Your line is now open.

Hi, good morning. Thanks for taking the questions. This was, I guess, very different AEP period from the prior year, a lot of disruption. But if next year's AEP turns out to be more like the 2024 AEP, how do you differentiate yourself against the competitors in the space and continue to grow?

Good morning, Jim. I think you were saying what if it turns out to be more like the 2023 AEP? Was that what you were saying?

Yeah, I'm sorry, yeah, right, the 2023 AEP going into 2024. How do you maintain share against your competitors in that environment?

I want to clarify that we do not anticipate the scenario of stagnation for the upcoming fourth quarter. While we cannot be certain, the current observations and feedback from various health plans lead us to believe that the conditions in the 2023 Q4, which involved minimal investment in benefits, are not expected to repeat. The recent AEP period has been quite disruptive, with numerous negative benefit changes, causing many consumers to shop around. To navigate this effectively, we plan to employ targeted marketing to identify areas where consumers need assistance. Additionally, we aim to ensure that in markets where we interact with consumers, they are on the right plans so that our efforts are recognized and rewarded. We have been implementing strategies like PlanFit Save to enhance retention and support consumers. By doing this well, we can ensure that we receive appropriate compensation for our efforts rather than relying solely on disruptions or consumer switching to drive growth. Our goal is to lower costs through improved efficiency using technology and standardization, while also developing new initiatives with carriers to serve consumers better, whether by helping them enroll in new plans or confirming they are already on the right plans. We strive to deliver peace of mind to consumers and are actively working with carriers to change broker behaviors to ensure we are compensated for our contributions. This approach helps us mitigate uncertainties and be well-prepared for what lies ahead.

What factors contributed to the 170% increase in AEP submissions for e-TeleQuote? Can those strategies be utilized in your core business?

Actually, I would say it was the opposite. We learned what works in our core business, and because of the strength of our technology, standardization, training, and models we have in place for our agents, we were able to quickly implement those learnings just two weeks before the Annual Enrollment Period. This allowed us to launch capabilities with the e-TeleQuote team, enabling them to perform more closely to our core captive agents. While they may not have reached the average performance of our core team, they are getting closer to it. This situation highlights the strength of our platform and its design to support new agents. Although these e-TeleQuote agents are experienced, they are new to our environment. Our technology boosts their confidence, allowing them to deliver a value-added service to consumers and to provide the necessary details that give consumers peace of mind about the product. We are excited about this outcome, as it reassures us that we are making the right investments in our technology while supporting our core team and other agents. Additionally, we have our GoPartner Solutions, which includes our external agent partners. We are providing them with increasing access to these tools, so they can benefit from the same efficiencies and serve consumers with confidence and quality.

Thank you. And our next question coming from the line of Dave Storms with Stonegate Inc. Your line is now open.

Hey, good morning. Thank you for taking my questions. My first one, I thought you mentioned earlier that you're not expecting as many plan exits this year. Is this leading to any changes in assumptions for your LTV model, just in particular around persistency expectations?

Can you describe that question? Sorry, Dave, can you just say that one more time? I want to make sure I understand what you're saying.

You mentioned earlier that you're not expecting as many plan exits this year. Is this leading to any changes in assumptions for your LTV model, particularly regarding persistency expectations?

I understand what you're saying. So, as we think about our LTV models and Brendan highlighted it, what we try to do is try to anticipate the average behavior of what you're going to see. And of course, when you start to think about disruption, one year renewals are very important. Disruptions of plan exit are very important in how you analyze it. But generally, LTV assumptions are built on a concept that over time, right, over the 10, 15 years that you're making these estimates, what is the average amount of disruption that may or may not happen on a health plan or product basis. And so, we try to factor those into the likelihood of those things happening, not try to be overly reactive to that. But one would intuitively say that, if you were to see that happen, which, again, you can only really base on what we've seen, you can't really try to bake into new booked LTV what you expect to happen when you don't have enough data behind it yet. So, I guess, what I'm saying is what may or may not happen this next AEP is we have some dealings, you don't bake that into your booked LTV until you know more details around it, and that wouldn't happen until much later in the year to be contemplated. So, right now, we're going to hold firm with the data we've got, what we know, and that's what you book again.

Understood. Very helpful. Thank you. And then maybe just a long-term question. Given the tech platform and strength of your agent workforce, are you seeing any opportunities to expand beyond Medicare Advantage?

Dave, we get this question a lot. And one thing that we know for sure is we have differential technology and we have an excellent capability to serve the Medicare consumer. We've proven it time and time again on both those fronts. If we were to expand populations or products or otherwise, we'd have to believe that we have a right to be successful and/or differentially be better than the field to do those things. Not diversification for diversification's sake, not to just sell whatever we can sell. It's got to meet the needs of the consumers that we serve. And if we could find a model that continues to serve new population, identify their needs and match them with those needs, and then be able to diversify in that vein, then we would absolutely do that too. But right now, we've got a lot of opportunities still within the Medicare space, and we're, again, cautiously optimistic of the demand for services like ours in the near-term to mid-term for sure.

Thank you, ladies and gentlemen, for your questions. I will now turn the call back over to Vijay Kotte for any final remarks.

Thank you, Olivia. I truly appreciate everyone taking the time to join us today. As I think back, it has been nearly three years since I joined GoHealth, and a significant part of my goal has been to reshape the perception of brokers and the Medicare marketplace. We have invested in this through technology standardization and higher quality standards, making sure to prioritize what is right for consumers. We focus on the individual consumer being our customer, and initiatives like PlanFit Save and PlanFit CheckUp have been developed, along with compensating our agents for providing peace of mind, which I take great pride in. We have been building a flexible engine to respond to dynamic needs, whether there is disruption or not, and we are preparing for that. While we may not achieve perfection, we will monitor and adapt, and our team has constructed a model to facilitate this. Throughout this process, we have maintained a strong focus on our cash and capital structure, and we will keep looking for ways to optimize it so we can invest more in the business. I am particularly excited about having a dedicated team that makes this all possible, and I am grateful for their efforts. I also appreciate the support of our shareholders, which has allowed us to serve as many consumers as we have and to make tough decisions that align with our values. As we continue to invest in serving more consumers and transforming the industry for those in need, I value your attention, your willingness to listen, and your partnership on this journey. Thank you once again, and we look forward to speaking with you all soon.

This concludes today's conference. Thank you all for your participation, and you may now disconnect.