GoHealth, Inc. (GOCO) Earnings Call Transcript & Summary

All right. We will get started here. Hello, everyone. Good morning, and welcome to day 4 to our Health Care Conference. I'm Jailendra Singh, health care technology and distribution analyst at Crédit Suisse. Thanks, everyone, for joining us. Next up, we have GoHealth management team for a fireside chat conversation. From the company, we have Clint Jones, Co-Founder and CEO; Travis Matthiesen, CFO; Jay Koval, VP of IR. Thanks a lot, everyone, for being with us. I'll begin with some of my prepared questions. But if you want me to ask questions on your behalf, please e-mail them to me at [email protected]. Before we jump into questions, maybe Clint and Travis, I know you guys reported last night. Do you want to provide some quick highlights from the quarter before we talk about the business and other stuff?

Yes. Appreciate it. And thanks, everybody, for attending today. My name is Clint Jones, Co-Founder and CEO of GoHealth. Yesterday, we did report Q3 results. And if you think about our Q3 in the Medicare market, it's one of the smaller quarters from a seasonal standpoint and really one that we get prepared for our, what we call our Super Bowl, which is our AEP, which we're really excited about. So we saw strong growth in our internal Medicare segment in Q3. We're also able to position ourselves to help our insurance carrier partners out in our other Enterprise revenue area that really, really scaled well in Q3. And we were able to beat EBITDA by $10 million, up to $39 million for the quarter. I think one thing that we focused on was really getting our agents prepared for AEP. That's obviously a large driver of our annual revenue and profit. We saw some licensing delays in Q2 from some of the states being shut down with COVID and ultimately decided to take a subset of our agents in Q3 and have them focus on our Enterprise programs, while they got additional training and certification for our 2021 plan, which is our AEP season. That ultimately has manifested strongly in October results, which is the first couple of weeks of AEP, where we saw 83% year-over-year growth, which position us really well for the remainder of AEP. As you know, the election this year was kind of the first week of November, so we had planned on a little bit of noise around that. We still saw really favorable results and are really excited about how we're positioned to execute on the year as we close up AEP. We raised the bottom end of our guidance on our revenue and our EBITDA. We feel really strong about the position we're in. The -- I think one thing that really sets us apart is our Enterprise relationships with our insurance carrier partners. It gave us a huge opportunity in Q3 and ultimately, it's manifested itself in Q4. and we think for years to go. They realize now their distribution models are evolving and changing. They had been over time. But what's really happening now is the field agent model, when you think about COVID, is having to morph, and they're not morphing fast enough. And carriers saw a real opportunity for us to help them out. We now power 12 carrier direct sales and white-label technology solutions. We have 8 marketing programs with carriers. And this year, we also announced our launching of our Encompass Platform, which is really focused on post-sale enrollment engagement with consumers. We assumed we'd have a couple of pilots set up here this year. We actually have now like 6 paying customers. And a lot of the discussions we're having are extremely positive as we think about getting into 2021 and some of the needs carriers have and how we can help them with that platform. So we're really excited about where we sit. Obviously, our year is made over the next several weeks. We feel really confident on where we sit today, and we look forward to hearing and giving those results in early next year for Q4. Travis, anything you want to add?

No, I think that was a great summary. Thanks, Clint.

Yes, great. I might have some follow-up there later, but rather than making this another earnings call, I want to take a step back and share maybe your thoughts around how you see the top line growth over the next few years. Maybe spend some time on the key growth drivers you see for your business. And I mean, any changes to those growth drivers recently you will highlight?

Yes. No, good question. So obviously, we operate in a very large market. Just the Commissionable piece alone in Medicare Advantage is about $28 billion. You've got more and more consumers aging every day to Medicare. You've got more and more consumers leaving original Medicare feature service into Medicare Advantage plans as carriers design better benefits and more unique benefits that target certain populations. So we see that kind of macro element form a tailwind for our business. And then more and more consumers are leveraging the online marketplaces and only over the phone, and the need for education and transparency is huge. I mean there's dozens of Medicare Advantage plans and not to mention Medicare Supplement, PDP, other things to choose from. And so we think from a revenue growth standpoint, we're in very early innings of just that market itself. You add our Enterprise strategy as well, which we're very uniquely positioned. It's not even in that category. We think there's another growth driver there, and we think now the carriers really see that as a very valuable option for them. And carriers have a distribution strategy now that's twofold: one, a direct model. And you think just like the airline industry where like American Airlines will go direct after consumers to use their platform. And then carriers also see the need for this telephonic or digital broker third-party base, back to the airline example, like a KAYAK or Travelocity or what have you. And we're able to power both of those channels. So that gives us a unique leg up. And then the third piece I'll point to is our Encompass strategy, which essentially we feel can add multiple dollars to our LTVs or revenue per member. It's very, very -- it's highly accretive. We've already spent the money to acquire the customer. We've got our TeleCare team in place, and the services we do there will drive additional growth but create ultimately value for the consumer and a lot of value for the carriers as well. So we don't really see any material changes in the strategy, just a lot of additional benefits and add-ons that we can bring to the team.

All right. That's great. You called out the current AEP as your Super Bowl. I mean so when we think about that, we're are a few weeks in, of course, like almost a month into AEP. I was wondering if you can share any early takeaways in terms of -- I mean, you did mention about October submission trends last night. But just curious like how things have been trending there. You talked about election having some impact, maybe elaborate more on that. Any surprises so far, positive or negative?

Yes. Yes, we did talk about the increase in year-over-year in October. During that month, I think not only there was an increase in this policy count, but our efficiencies in our agent base was up as well. So we have mentioned that -- or I mentioned, we took some of those agents and didn't get them certified in the late fall for 2020 plans. We focused on retraining and getting them trained better for 2021 plans so when they hit the phone in October, they'd be more efficient. We're seeing that, where last year we saw less efficient new agents. So if you think about some of the noise we saw with the election, and I think this is an unprecedented year with just the media coverage on the election and some of the ads not being able to clear, especially in the evenings. Our ability to be very efficient with the call volume we got was critical. And that led to us being able to match our supply and demand and convert those policies very, very strongly. So as we look now at November, the election is past, there's obviously still some noise in the market around that. But it's not nearly as strong as it was in the last 2 weeks of October and kind of first part of November. And usually around the third week -- third or fourth week of AEP is when your newer agents really start to hum. That's when they -- they've got a couple of weeks under their belt. They better understood the platform, the products. They're really confident in the platform and how to sell, and we're starting to see some of those trends evolve as well. So we're excited about where we sit. Obviously, the latter half of AEP, kind of post-Thanksgiving and into December is really where the big volume comes in. So we obviously have time to continue to prepare for that. We feel like we're in a really good position and spot from understanding how the media is working on both offline and online, the ability to get some of the lower performers trained up just to where we need to be. So kind of like I said on the call yesterday, excited about where we are, but just being prudent on how we think about things.

Yes. And one other thing I would add is, as you talked about some of the surprises during like the beginning of AEP, one of the things we have seen and again, is a testament to the shift we're seeing in customer behavior to telephonic and digital sales, we've seen higher-than-anticipated inbound call volume. So as Clint mentioned, one thing we've been focusing on and improving week-over-week is really managing that supply and demand by changing our agent schedules, making sure that we're able to handle all of the demand that's coming in because we really are seeing that inflection point of more and more consumers kind of reaching out to our type of distribution, given those higher-than-anticipated inbound call volumes.

Just a couple of follow-up on those. The 83% growth you said, that was Medicare-Internal submission or just Medical Advantage internal submission? I want to make sure we have the right number there.

Yes. Medicare Advantage Internal submissions. That's exactly right.

Got it. And then one of your peers actually last -- I mean, actually yesterday pointed out that because of this election thing, this AEP could be more back-end loaded. How do you feel about that? Do you agree with that? And do you think you have good agent capacity to handle it? Do you indeed see a spike in volume, spike in interest, spike in call volume in the last 2 weeks of AEP? Which actually is always the case, right? AEP is always very back-end loaded but this year might be special.

That's a good question. We didn't really forecast or foresee any different spike in volume than we normally see. That's just traditional AEP trends. So we obviously have planned for that large spike. We've planned for the -- our DIY platform. We saw, especially in the first couple of days, strong DIY enrollments, which we typically do, right? We send out a lot of proposals that people could fill out on their own who we've already talked to. That manifested well. We expect -- and we saw this last year, the last week especially, if we've got long hold times, the ability for consumers to get e-mailed a proposal, where they can fill it out themselves and complete the application, too. So we've got a really nice overflow capacity in how we handle that. One of the things that we specialize in is, during the initial part of the phone call, and based on certain demographics and information we gather, we can determine whether not somebody is technically savvy, right? And you think about somebody that's in their 80s, they may not be able to fill out an application on their own. We're not going to send that person an application, right? We're going to try to handle them and serve them over the phone. But if somebody is in their kind of late 60s, and we asked a few questions, and they say they're technically savvy and they're comfortable filling out something online, we can bifurcate and parse that consumer out to an app so we can serve more customers during that time. It gets another -- power of our platform and how we're able to kind of subset the consumers and meet the needs for everybody.

Yes. That's a fair point. Just on your carrier relationships expansion strategy. You have a very -- you talked about like very different footprint than other 2 competitors. Just walk me through that, why you've taken this approach, why that better positions you over the coming years? And just spend some time on the other services that you offer your insurance company.

Yes. I think the benefit of -- I've been running this business for 20 years and realized early on in our career, when we really didn't have any money to market, the carriers, if we got on the good side of a carrier and really helped them out, they would help us out. And we've kind of -- that DNA stuck with us for years. And when we entered the Medicare market in 2016, we ultimately chose a few carriers to really partner with and go deep with and scale and really help them kind of scale their businesses out, which we're really proud of. And then as we saw the need to add more carriers this year, we've expanded that greatly, but we're not going to -- we're not a shotgun approach-type company. We want to form really deep, integrated-type relationships that are meaningful for both us and our carrier partners. And that's what's kind of rolled out this year. But the way we do it, we also have a lot of other services we can offer carriers to expand our member base from a growth standpoint, and we mentioned kind of the white-label solutions and the direct sales platforms we have. On top of that, we saw a need last year for some of these Encompass services that we're offering. So earlier this year, we started investing in that platform with a though process of like Q3, we would start rolling that out on, like I mentioned before, maybe a pilot-type program. The response was so favorable and the needs were so high, we basically had carriers coming to us and say, how can we do this now? I have a need for my customers to get on this platform now. So we ultimately have -- we have 6 live with strong discussions about getting more live in Q1. So I think that, that approach to our carrier relationships opens the door to other conversation and products and services that we can offer. And again, we approach it from like a really value-add standpoint. And the benefits to both us, the consumer and the carrier, that's really a winning strategy, we think.

Can you -- I mean, because given last night earnings, a lot of guys are focused on what this Enterprise revenue is. We were getting a lot of questions around what exactly this Encompass is. What services they offer? Can you flesh a little bit more what -- a little bit on the value addition you provide for carriers? And how are you strongly positioned there?

Yes, absolutely. So I mentioned before, like the airline industry and how people buy, whether they go direct to a carrier or they buy on kind of an open marketplace with choice. Carriers have the same philosophy in distribution. And if you think about -- right now, our main business and our Commissionable model is choice, right? People can come to us, they can shop by choice and they can understand what benefits are right for them. There's another subset of consumers that are more brand loyal. And maybe they've been -- their group health plan, while they're employed, was with Blue Cross. So when they retired, they had such a good experience with Blue Cross, they just want to buy Blue Cross. A lot of carriers are not really efficient at that direct sales model. So we're able to go in and white label our technology. So if somebody goes to that carrier's website and runs a quote or starts shopping, it's our platform, but white labeled for the carrier. The 800 number or the chat or anything associated with discussions around their benefits or enrollment goes into a team we set up. So it's a white-label team that's leveraging our technology platform to help those consumers enroll. So that's an example of a service model we have. We also have retention programs and engagement programs within that platform. And then on the Encompass side -- so that's kind of what I'll call upstream. And then downstream, on the Encompass side, once you are a consumer, there's a real need. One of the challenges carriers have when they get new members is it may take them 6 months or more to understand who that member is from a health standpoint. And our ability to perform health risk assessments or social -- screen for social determinants of health early on can really help from a risk scoring standpoint, which helps drive revenue for carriers, if we're able to sub -- or segment from a population health standpoint. If we can identify a sicker population, risk orient it, it helps the carriers. But on top of that, if we identify a subset that's unhealthy, and we can help them get in a preventative care model or a value-based care model with a carrier or one of their partner providers, there's an opportunity to reduce the cost of care and impact their MLRs, which saves the carriers money while improving the health outcomes for consumers. So that's kind of how we're looking at the ecosystem. We're obviously early stage in this game, but the results we're seeing from like a digital health care outcome we believe, we're really well positioned to handle. And now that we've got kind of the buy in from the carrier partners in how our platform operates, we see a big opportunity here.

And you feel pretty good about sustainability of this revenue stream going forward?

Yes, because it's almost like a PMPM-type model. You know what I mean? It's very similar to commission. If some of the programs made more -- be additive to LTV, so -- but it's really a member -- kind of a per member-type model. And the revenue model will evolve over time as we add additional services. Right now, we have probably 6 services that are actually generating revenue, but we have another 20 or so that are in the works to be rolled out as well. So if you think about that kind of expansion opportunity -- and the reason we have that is no carrier is the same on their needs. Some carriers outsource some of these things already, and others don't. So that's kind of how we approach the model.

Okay. Switching gears to LTV. I know for year-to-date, your LTVs are up 2%. I think the guidance for this year, full year, is still like flat, I believe, right? You guys have talked about change in mix of consumers and carriers driving that LTV to be flat year-over-year. Spend some time providing more color on that, puts and takes, that has led to this mix shift.

Yes. Good question. So from an LTV standpoint, I think one of the drivers we didn't fully -- it was challenging for us to model out earlier this year as we add new carriers, we don't have a lot of historical data on new carriers. So we're going to take a much more conservative approach of what that looks like. And it's actually turned out to be more positive in the long term than we had thought. We were able to ramp up our carrier partners, the new carrier partners much quicker, especially in Q4 than we had in the past. So when you think about -- we mentioned yesterday that October, we saw 1/3 of our volume in October come from new carriers. That has positioned us to be the leading, if not the leading, one of the leading producers for all of our new carrier partners really, really quickly, which essentially helps us, from a commission standpoint, get to the top end of that range much faster than we had anticipated. So we think as we look at the remainder of this year and next year, that risk is much lower because of the volume we're performing with carriers. And Travis, anything you want to add to that?

Yes. I would just say, Jay pulled up here a slide from the deck we had for last night. And I think there's a couple of things just to kind of talk through to break this down as we think about LTV. So as you think about LTVs going forward, what's occurring? CMS has approved increases in commission rates, and we've seen those increases year-over-year, which are obviously driving a positive impact there. We've mentioned a lot our investment in the TeleCare team and not just our investment in the TeleCare team, but also the addition of our carrier footprint has created more conviction at the point-of-sale that we're seeing an increase in our LTVs. If you go back 1 slide. Thanks, Jay. And then carrier mix here, which we call out. So we've mentioned part of adding to our carrier footprint, we've mentioned this on the Q2 call, is that when we add a new carrier partner, there's kind of 2 things that are occurring when we think about LTVs. The first is while CMS sets a ceiling for how much commissions brokers can be paid. Not all carriers, when you're kind of first writing policies, pay up to that ceiling. This kind of improvement model where they need to write good volume, write -- and both write volume and quality volume. And then the second piece is, is if you think about our LTV modeling, our LTV modeling is all based off of taking what a observed data we have, using that observed data to then forecast the LTVs moving forward. And in the absence of a lot of observed data, which we will not have with new carriers, we take a more conservative approach with modeling those LTVs. So you can see the carrier mix can be a drag on LTVs, but that drag in LTVs is in the short term, right. Because as we write the volume, we'll be able to increase the contract and the rates to get to that ceiling as well as we'll have more data around the LTVs. And then the last piece we've talked about, and you mentioned special needs plans or SNP plans on the last call. Again, our focus, again, is always on LTV to CAC, not just the numerator LTV. And so again, we're going to continue to be thoughtful about which customers we can drive and where there's opportunities. And then to the extent that there's SNP plans where we can acquire at a very attractive price, we will, knowing that they might have a slightly higher churn characteristic, that would drive a slightly lower LTV. So those are the puts and takes and the balance that we have as we go about modeling our LTVs. But year-to-date, we're really excited about the persistency trends we've seen, driven by the TeleCare team and our choice model with more plans, and you can see the impact here on this slide.

That's fair. Let me follow-up on the 2% retention rate or persistency rate you talked about you have seen year-to-date. Can you discuss your experience so far around churn rate, retention rate? There's a lot of -- has been a lot of noise around that. Maybe can you break that down by like the experience you're seeing on year 1 lapse versus like renewals? Just give us some more flavor about the churn rate experience in 2020.

Sure. Can I take that one?

Yes, Travis. Fire away.

Yes. So I think, first and foremost, in the aggregate, we have not seen a change year-over-year when you think about that kind of, what we would call macro churn across all of our plans and all of our members. I think what we have seen, which is really interesting, is that while in the aggregate, there has not been a significant change year-over-year, within unique carriers, within unique states and even by county, you have -- you see very, very different churn metrics. And so as you think about and you've heard the carriers talk, these benefits are getting more and more competitive. There's more and more carriers kind of trying to differentiate themselves in various markets to try to drive volume, obviously, attract members. And so as we've seen this information come in and see how unique it is, not even just by state, but by county, I think, again, it validates really 2 things we're doing and ultimately, our distribution model is that consumers are looking for education, transparency and choice and our ability to use our proprietary technology to compare and analyze these plans for our consumers and help them understand, "Look, yes, there has been 2 new carriers that have entered your market, but based off of these 3 things, this is still the best plan for you," is important. And then even more important, if you think about the short-term churn, creating that conviction at the point-of-sale by giving them these options and helping understand all the unique differentiators in the market is, again, I think, why this market is moving more and more towards channels like us. Because that's what the consumers are craving. And so you're exactly right. We are seeing down to the county level very unique differences in churn with some of our carrier partners. But our ability to understand that and bifurcate that at the point-of-sale is what's really driving our improvements.

Have you tried to explore like where these churning members are ending up? Are they going directly to the insurance company website? Are they going to like Medicare fee-for-service or small mom-and-pop brokers? Just help us understand like where are these members going?

Yes. It's a good question. And there's really no one answer or one size fits all there. Unfortunately, in our market, the word churn, there's such a negative tone to it. In reality, if you have a very efficient market with tons of transparency with all the products, we may have policy churn, but as long as we don't have member churn, you know what I mean, that works for us. Now obviously, we have our carrier partners that have certain characteristics they like to see from a member life cycle. But we have a lot of -- from a recapture rate or save rates, I mean that's something we're focused on as well. In years past, if we had somebody on a Humana plan, and they said, "You know what, United has got a better plan in my market. I want to do go to United." We ultimately didn't have an opportunity for them, right? They left somewhere and went to United. Now we're seeing, okay, maybe they're with Humana and United does have a better plan. Okay, there's not -- we'll help you get to that plan. But let's make sure you understand why you're moving, what benefits are changing, what's making that decision. For us, education is key, right? The more we spend with someone to educate them on the plan and the benefits and what's good or what's not good for them, the higher the lifetime value and better persistency we have. So that's something that we're focused on. And I think that with our carrier expansion and our TeleCare team are 2 key drivers for us as we think about investments, both now and in the future, on creating that marketplace where we start focusing on the lifetime value of a member, not just the lifetime value, but policy. I think unfortunately, in our market with 606 accounting, we're forced on a lifetime value of a policy from an accounting standpoint. But as we think about driving sustained, competitive advantage and real profit for the business over time, there's going to be a focus on the lifetime value of a member and creating that deep relationship with that member. Because that ultimately will not only drive longer revenue streams with that particular member, when we think about our Encompass strategy, that's where that's going to play in as well, especially for the older and maybe more sick population.

That's fair. I think I know you have tried to emphasize this several times that LTV trends -- looking at LTV alone may not give the real picture. That I think LTV or CAC is the right metric to focus on. I think it makes sense. Just curious about -- we spent some time on LTV. Let's spend some on that CAC portion. How do you see those CC&E, marketing and acquisition costs trending over next few years? And just help us understand like where you think LTV or CAC could be long term. What's the real comfort number for you? I know you have been intentionally trying to bring that down so that you can focus on growth and not compromise on the growth rate. But just curious about the long-term number ratio there.

Yes, exactly. So LTV to CAC for us is our kind of North Star. When you think about from a pure unit economics standpoint, really, it drives your profit per policy at this point or profit per member. And we've really focused on that. And we think that CAC over time and the efficiency of gaining members is going to be one of the key strategies for our success long term. And that's where we've been heavily focused, and that's something we can control. So what we've -- and we've modeled out, and there's a couple of components that go into our overall CAC. And one is the cost of the opportunity or the cost of the lead. Now we've modeled out in our planning, that's likely to go up, right, is more people enter the space, the cost of leads will likely go up. But all the efficiencies -- and this is where our winning strategy comes into play. All the efficiencies we have in our funnel, as we convert that opportunity into a submitted policy, that's where we're heavily focused. And that's something that we've seen. As the CPO potentially rise a little bit, our conversion rates and other things we're doing in the funnel can bring that overall cost of acquisition down or hold it flat even if the cost per lead go up. So that's a critical component to what we think about as we drive our business. And as I mentioned yesterday, everything we do from a technology standpoint, to a project standpoint, really stems around does it have something that's going to try to increase our LTV. Or does that technology project or platform or thing have something that's going to ultimately attack the CAC? And that's how we think about the business. And as people come into our investment committee and say, "Hey, I want to build this or do this and what have you," it's got to meet one of those standards or criteria. And that's how we've been just very diligent on, is our technology spending and the things we invest in as we build the business. Because we do think that's going to be the winning strategy long run as we kind of continue to build this out. And Travis, anything else you want to add to the CAC. I know there was a slide you probably want to go over.

Yes. I would just say, if you think about while we are extremely excited about the results we've driven here in 2020, 2020, in many ways, has also been an investment year, as you think about adding to our carrier footprint, adding to our agents. And what our -- the ability of that does is it allows us to market more broadly and in more areas by having more of a national coverage. And having more agents has allowed us to kind of segment and specialize to really make sure we have subject matter experts by geo, by type of marketing, et cetera. And I think what Clint pointed out is really important is that the efficiencies we can get from increased conversion and higher close rates, not only has a big impact at the point-of-sale in terms of driving down that CAC. But if you think about long term, building that relationship, instilling the confidence in that consumer that we've enrolled them in the right plan, drives more return customers when they have a question about their plan or they have a health event that changes maybe what they need. And if you think about the opportunity for the CAC to come down with that kind of flywheel effect of referrals and customers continuing, going, coming back to us to be educated on their plan, that's where we think the real opportunity comes to continue to increase our LTV to CAC while we grow.

That's great. I want to make sure there's no e-mail question here. I want to touch upon the agents. When we compare your model with SelectQuote, to eHealth, eHealth relies on external agents. I mean of course, they are trying to bring down the mix on that. SelectQuote has this flex agent model. One question we always get on your business that you only focus on internal agents, which has been a good -- better strategy so far. How would you describe your strategy in terms of balancing out hiring enough agents to drive growth in AEP, but also keeping in mind that they don't drag your margins in off-peak periods? So help us understand your thought process there, like why that doesn't turn out to be any disadvantage?

Yes. That's a good question. Yes, we do. We've taken an approach that the agents are really the heart of what we do. I mean that's the front line of experts talking to consumers on the phone every single day and helping them with their benefits, their plan choices. So we've -- that's something we ultimately decided early on we need to own. That means being employee agent-based and employee to employee, if you will. So I'll also reference that this year, for the first 9 months of the year, we generated $100 million of EBITDA. So that's actually showing an efficiency model, even with a higher agent base during the first 3 months or first 3 quarters of the year, we're keeping those agents busy and they're generating revenue, right? So we talked about it, obviously, in Q1, you've got your OEP period. But in Q2 and Q3, we're by far the largest enroller of special needs plans in the country. And that's not a fluke. I mean we have a purposeful strategy to go after that market. It's an underserved market. We think there's 12.5 million eligible people in that market, and there's only a couple of million people enrolled in there. So there's a huge opportunity to educate the -- that plan. And if you think about the new administration and maybe improving some of the Medicaid benefits, which will only grow the D-SNP market, which we think is a really exciting opportunity for us, which -- so ultimately, it keeps our employees employed year round. We do have our Enterprise programs, which we think next year will drive additional activity during the off-season with some of these -- so we will keep -- you can call them flex agents, you can call them whatever you want because they might not be selling our internal during the first 3 quarters of the year, but they're Medicare experts, right? They're not going to sell auto insurance or a mortgage protection plan or something like. They are Medicare experts in everything they do, which we think gives us another added value long term.

Okay. That's a fair point. I want to quickly touch upon the focus on online e-commerce platform. Peers have talked about that we're going to see -- they're very bullish on online enrollment penetration. Just curious about your focus there. I know you leverage your e-commerce platform in a very unique way. Help us understand that. That if we indeed see certain spike in online adoption, how well are you placed in that situation?

Yes. We have the capability today. We don't -- we leverage our online capabilities in a couple of unique ways: In the very early part of AEP, we have the ability to send out what we call proposals to people we've talked through -- that were ready to enroll, but it wasn't AEP yet. And then you see kind of -- they're just the eager beavers that want to get enrolled right away. So they will fill it out really on the first day of AEP just to have their application in. So that's a really unique way we use that platform. We also use an agent-assisted strategy where somebody calls in, they probably already know what they want. They want to have a conversation around -- they want to ensure that the provider they go to is in the network. And they want somebody to tell them that and give them that peace of mind. And once they hear that, they're okay, great, I'm ready to enroll. You send me an application. So we leverage our DIY platform that way as well. And then towards, like I mentioned, the end of AEP, probably the last 10 days or so, as we see queues starting to build up and hold time starting to drive, we can deploy that technology out and give consumers the options to enroll that way. We ultimately, with our lead scoring and routing, will open that up more so on the younger demographic. Because we're probably, like I mentioned before, not going to see many people 80-plus of age taking that path. So that's, I think, another piece of our platform that we invested in, is the ability to kind of bifurcate that -- those different consumer bases. Will DIY become more and more needed over time? Sure. I think there'll be a piece of that population that would -- like maybe the third or fourth time they buy a Medicare plan, they're more comfortable. They know what they want. They just want to enroll. So we obviously have the fortitude to think that way. The one thing that I'll note, though, we see different LTV characteristics on consumers that don't talk to agents, right? So we do still prefer somebody going through that pure process and going through a needs analysis and making sure they fully educate their plan type because that ultimately is driving better lifetime value persistency. Now -- so that's just one thing. That's how we've approached the market. Could that change over time? Sure. That's what we're seeing today.

All right. I want to wrap up with the -- your outlook for cash flow. Remind us how much growth can the company fund before a capital infusion is required. I know you guys have talked about in the past that you generate -- you're cash flow positive much sooner than some of your other peers per cohort. Just help us understand about that full capital availability.

Travis, do you want to take that?

Sure. Yes. So I'd say, first and foremost, as you think about kind of the differentiator between our peers, I go back to kind of what Clint mentioned earlier of us being not just a broker relying on the commissions that are paid month over month over month. But we're really a partner with our carriers. And that manifests itself not only in the enterprise revenue that we've generated but also in a lot of our efficiencies as we think about the tech integrations we have with our carriers, some of the overflow campaigns and other ways we're able to really drive meaningful volume at much lower consumer acquisition costs. So first and foremost, that's kind of our differentiator as we think about cash. As we think about moving forward in our strategic plan, we haven't given any multiyear guidance. But what I can say is we have the capital in place to achieve our 5-year strategic plan without any capital infusion. And again, we're excited about the opportunity in front of us to not just continue to grow our commission revenue and continue to tap in the massive and growing Medicare Advantage market, but continue to drive additional value through our Enterprise and Encompass initiatives. We will also drive more cash and continue to increase margins as we're able to monetize our consumers at various points along the way, not just at enrollment.

All right. This was a great conversation, but I guess we're out of time. So we will leave it there. Thanks a lot for participating to our conference. Have a nice rest of the day. Thanks. Take care. Bye-bye.

Thank you.

Thank you.