On September 13, 2024, SelectQuote Inc (SLQT, Financial) released its 8-K filing for the fourth quarter of fiscal year 2024. SelectQuote Inc is a Direct-to-consumer (DTC) distribution platform that facilitates consumers to shop for health, life, and auto & home insurance policies online. The company generates its revenues by selling insurance products on behalf of insurance carrier partners in the form of commissions. It operates through three lines: SelectQuote Senior, SelectQuote Life, and SelectQuote Auto & Home.
Q4 FY 2024 Financial Performance
SelectQuote Inc reported consolidated revenue of $307.2 million for Q4 FY 2024, a significant increase from $221.8 million in Q4 FY 2023. The net loss for the quarter narrowed to $31.0 million from $47.8 million in the same period last year. Adjusted EBITDA* for Q4 FY 2024 was $14.4 million, a notable improvement from $(5.8) million in Q4 FY 2023.
Annual Financial Performance
For the fiscal year ended June 30, 2024, SelectQuote Inc reported consolidated revenue of $1.3 billion, up from $1.0 billion in the previous fiscal year. The net loss for the fiscal year was $34.1 million, compared to $58.5 million in the prior year. Adjusted EBITDA* for the fiscal year was $117.0 million, up from $74.3 million in FY 2023.
Segment Highlights
The company operates through four segments: Senior, Healthcare Services, Life, and Auto & Home. Below are the key financial results for each segment:
| Segment | Revenue (Q4 FY 2024) | Adjusted EBITDA* (Q4 FY 2024) |
|---|---|---|
| Senior | $114.1 million | $27.9 million |
| Healthcare Services | $145.2 million | $0.9 million |
| Life | $42.1 million | $7.2 million |
| Auto & Home | $7.6 million | $2.5 million |
Future Guidance
SelectQuote Inc provided guidance for fiscal year 2025, expecting revenue in the range of $1.4 billion to $1.5 billion. The net loss is projected to be between $42 million and $6 million, while Adjusted EBITDA* is anticipated to range from $90 million to $120 million.
Commentary
"2024 was another successful and strong year for SelectQuote across both Senior Medicare Advantage distribution and our Healthcare Services business, driven by SelectRx. On a consolidated basis, our fiscal year revenue and Adjusted EBITDA outperformed the midpoint of our original forecast by 17% and 26%, respectively," said SelectQuote Chief Executive Officer, Tim Danker.
Analysis
SelectQuote Inc's performance in Q4 FY 2024 and the entire fiscal year demonstrates significant revenue growth and a narrowing net loss, indicating improved operational efficiency. The company's diversified revenue streams across its four segments have contributed to its robust financial performance. The future guidance suggests continued growth, although the projected net loss indicates ongoing challenges in achieving profitability.
For more detailed insights and to access the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from SelectQuote Inc for further details.
