SelectQuote, Inc. (SLQT) Misses Q3 EPS by 1c, Revenues Beat; Offers FY21 Revenues Mid-Point Below Consensus

SelectQuote, Inc. (NYSE: SLQT) reported Q3 EPS of $0.22, $0.01 worse than the analyst estimate of $0.23. Revenue for the quarter came in at $266.9 million versus the consensus estimate of $261.06 million.

Third Quarter of Fiscal Year 2021 - Consolidated Earnings Highlights

• Revenue of $266.9 million, Up 80% Year-Over-Year
• Net Income of $36.5 million, improvement of $12.8 million Year-Over-Year
• Adjusted EBITDA of $65.2 million, Up 48% Year-Over-Year*
• Updating Full-Year 2021 Revenue, Net Income and Adjusted EBITDA Guidance:
  • Revenue still expected in a range of $920 million to $940 million
  • Net Income expected in a range of $130 million to $138 million
  • Adjusted EBITDA expected in a range of $225 million to $235 million*

Chief Executive Officer Tim Danker commented, “Our Third Quarter results again demonstrated our strong growth potential. The quarter was led by a robust OEP, where our Medicare Advantage approved policies grew by 112% year-over-year driven by a 17% increase in average agent productivity while adding 75% more agents. We are also very excited about the huge opportunity with value-based care and our Population Health platform which we announced last week along with the acquisition of Express Med, which will be rebranded SelectRx. We continue to build our conviction that SelectQuote is designed to execute high quality growth for years to come and with Population Health, our addressable market is now bigger, and our ability to address that market has never been stronger.”

Chief Financial Officer Raffaele Sadun added, “With Senior revenue growth of 101% year-over-year, this was the fifth consecutive quarter of Senior revenue growth in excess of 100%. During the quarter, we also refinanced our credit agreement and secured an additional $292 million of committed capital, $147 million immediately and another $145 million in a committed delayed draw term loan. Lastly, we are reiterating our fiscal year revenue guidance but adjusting our guidance for Adjusted EBITDA due to the incremental dollars we are investing in Population Health and SelectRx.”

GUIDANCE:

SelectQuote, Inc. sees FY2021 revenue of $920-940 million, versus the consensus of $934.91 million.

SelectQuote is updating the guidance provided for the full-year ending June 30, 2021. As a reminder, these expectations are forward-looking statements and actual results may be materially different and are affected by the risk factors and uncertainties identified in this press release and in our annual and quarterly filings with the Securities and Exchange Commission.

SelectQuote is updating guidance for the full-year ending June 30, 2021 as follows:

• Consolidated Revenue is expected to be in the range of $920 million to $940 million
• Consolidated Net Income is expected to be in the range of $130 million to $138 million
• Consolidated Adjusted EBITDA is expected to be in the range of $225 million to $235 million*

For earnings history and earnings-related data on SelectQuote, Inc. (SLQT) click here.

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