GoHealth Inc (NASDAQ:GOCO) down 45% in a week after announcing its Q2 2021 financial results and issuing revised full-year guidance. In Q2, the company’s net revenue was up 55% YoY to $196.9 million, and year to date, GoHealth’s net revenue is up 50% YoY to $401.1 million.
Medicare-Internal revenue was up 84% to $160.4 million in Q2 2021, while YTD revenue was up 74% to $317.8 million compared to last year. In addition, Medicare Advantage Approved Submissions increased 59% YoY to 152,749 during the quarter and 52% YTD to 323,876. During the second quarter, the company reported a loss of $39.2 million.
CEO Clint Jones said that the company’s impressive Q2 revenue growth was driven by the expansion of LTVs by 5% and the Medicare-Internal segment gaining 84%. He explained that the company’s ramped-up investments in the Encompass Platform resulted in a revenue contribution of $17 million from additional services in the platform besides carriers enrolment. Jones said they have raised and tightened revenue guidance for 2021. Therefore in the coming quarter, GOCO is a stock to watch.
Market Reaction:
On Tuesday, GOCO stock fell 4.83% at $4.73 with more than 5.98 million shares, compared to its average volume of 1.94 million shares. The stock has moved within a range of $ 4.5700 – 5.0000 after opening the trade at $4.90.
