GoHealth, Inc. (NASDAQ:GOCO) Q4 2022 Earnings Call Transcript

And what you tend to find on average is the volatility in those values tend to happen as there’s more changes in the first couple of years of those cohorts. And so as you have those fewer populations and enrollment populations or enrollment groups coming in to the pool, that first few years of volatility is getting diffused out into the new model. So I can’t absolutely say that the — if we’re successful in growing the pool of having a lot more enrollment on a percentage basis, it still could be building because we don’t expect 100% ever to go to Encompass, there will always be some on the legacy. But directionally, I think your comment is accurate that we would have less of that volatility as we move more towards Encompass in the current and future years.

Adam Klauber: Okay. Okay. Thank you. And then just thoughts on future use of cash flow. You obviously paid down a good chunk of debt. What are you thinking about for uses of cash flow this year?

Vijay Kotte: Great question. We have a lot of different things that we’ve been looking at that are contemplated in our plan, including some capital expenditures and investments into our platform and technology to ensure that we are delivering this marketplace model that we’ve described to you in our earlier comments. We also have a very thoughtful debt strategy as we think about how we might optimize and really think about the different pressures around interest rates and the headwinds that are naturally going to be there to be able to look at our overall balance sheet and see how we can best deploy the capital. But most importantly, just making sure that we are making the investments into our platform to drive our initiatives that we’ve assumed in our guidance around standardizing both the consumer and the agent experience. But you should not be surprised for us to continue to make some nice steps forward on that debt strategy.

Operator:

Vijay Kotte: I think — there we have — sorry. I think, Michael, I know you said you want to get back in queue. I just wanted to make sure we didn’t miss that. I’m not seeing you in the queue. Well, I think that’s it from the questions. I appreciate everybody’s time today. We are very excited about the future of what we’re developing here. Our team is fully engaged in driving a uniform high-quality experience for beneficiaries as they continue to we put in a very complicated nuanced world and how we can help them optimize the options that are available to them. So we look forward to updating you on our progress down that path and look forward to hearing from you all again in the future. Thanks again.

Operator: This concludes today’s conference call. Thank you all for joining. You may disconnect. Everyone, have a great evening.