SelectQuote Stock Slides After Mixed Q4 Results

SelectQuote, Inc SLQT reported fourth-quarter FY23 revenue growth of 59% year-on-year to $221.78 million, beating the consensus of $181.41 million.

EPS loss of $(0.29) was in line with the consensus.

Senior segment revenue grew by 51% Y/Y to $103.59 million with an adjusted EBITDA margin of 16%. 

The Healthcare Services segment revenue increased by 176% Y/Y to $82.80 million with an adjusted EBITDA margin of 2%.

Life segment revenue grew by 2% Y/Y to $38.05 million with an adjusted EBITDA margin of 18%.

Consolidated net loss was $(47.8) million compared to $(104.7) million a year ago.

SelectQuote held $83.2 million in cash and equivalents and used $(6.5) million in operating cash flow.

SelectQuote Chief Executive Officer Tim Danker remarked, "Looking toward the future, our teams are excited to leverage our strategic redesign across each of our businesses, and we believe there is significant opportunity in our Healthcare Services segment."

Outlook: SelectQuote expects FY24 revenue of $1.05 billion - $1.20 billion versus consensus of $1.10 billion and net loss of $(50) million - $(22) million.

Price Action: SLQT shares traded lower by 12.5% at $1.1890 on the last check Wednesday.