GoHealth (GOCO, Financial) reported its first-quarter revenue at $221 million, falling short of the consensus estimate of $225.91 million. CEO Vijay Kotte emphasized the company's progress in key financial areas, such as revenue and Adjusted EBITDA, as well as improved margins and capital efficiency. The company is focused on enhancing its platform and technology to offer consumers a more personalized experience when selecting coverage options. This strategic investment also aims to achieve better business outcomes.
In a move to diversify its offerings, GoHealth recently launched GoHealth Protect, which provides a curated marketplace of coverage options, including guaranteed acceptance life insurance. This expansion is designed to strengthen customer relationships, improve unit economics, and fulfill the company's mission to deliver peace of mind to consumers.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for GoHealth Inc (GOCO, Financial) is $22.25 with a high estimate of $25.00 and a low estimate of $18.00. The average target implies an upside of 173.68% from the current price of $8.13. More detailed estimate data can be found on the GoHealth Inc (GOCO) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, GoHealth Inc's (GOCO, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for GoHealth Inc (GOCO, Financial) in one year is $12.48, suggesting a upside of 53.51% from the current price of $8.13. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the GoHealth Inc (GOCO) Summary page.
GOCO Key Business Developments
Release Date: February 27, 2025
- Q4 2024 Revenue: $389 million, a 41% increase from Q4 2023.
- Q4 2024 Adjusted EBITDA: $118 million, a 107% increase year-over-year.
- Full Year 2024 Revenue: $798.9 million, a 9% increase from 2023.
- Full Year 2024 Adjusted EBITDA: $120.3 million, a 60% increase from 2023.
- Q4 2024 Customer Acquisition Costs: Decreased by 27% to $501 per submission.
- Full Year 2024 Cash Flow from Operations: Negative $21.6 million, compared to $130.7 million in the prior year.
- Commissions Receivable: Approximately $1.1 billion as of December 31, 2024.
- e-TeleQuote Submissions During AEP: 54,000 submissions, a 170% improvement year-over-year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- GoHealth Inc (GOCO, Financial) reported a 41% increase in Q4 2024 revenue compared to Q4 2023, reaching $389 million.
- Adjusted EBITDA for Q4 2024 more than doubled, showing a 107% year-over-year improvement.
- The company achieved a 67% year-over-year increase in submission volume during Q4 2024.
- GoHealth Inc (GOCO) reduced direct operating costs per submission by 27% year-over-year in Q4 2024.
- The integration of e-TeleQuote led to a 170% improvement in submissions during the annual enrollment period (AEP).
Negative Points
- Despite revenue growth, GoHealth Inc (GOCO) experienced negative cash flow from operations for the full year 2024.
- The company anticipates less favorable market conditions for the AEP in Q4 2025 compared to 2024.
- There is cautious optimism for Q4 2025, with expectations of less disruption than the previous year.
- GoHealth Inc (GOCO) faces ongoing challenges in balancing agency versus non-agency dynamics.
- The company remains exposed to regulatory and market factors that could influence performance in 2025.
