Q4 2023 Gohealth Inc Earnings Call

Participants

John Shave; VP of IR; Gohealth Inc

Vijay Kotte; CEO, Director; Gohealth Inc

Jason Schulz; CFO; Gohealth Inc

Ben Hendrix; Analyst; RBC Capital Markets

Pat McCann; Analyst; Noble Capital Market.

Jim Sidoti; Analyst; Sidoti & Co

Sandeep Soorya; Analyst; Delaware Street Capital

Presentation

Operator

Yes, good morning. Welcome to GoHealth Fourth Quarter and Full Year 2023 earnings call. My name is Michelle, and I will be your operator for today's call. (Operator Instructions)As a reminder, this call is being recorded. I would like now to turn the conference over to John Shave, Vice President of Investor Relations. Please go ahead.

John Shave

Thank you and good morning. Welcome to go Health's Fourth Quarter and Full Year Results Call. Joining me today are the Vijay Kotte, Chief Executive Officer; and Jason Schulz, Chief Financial Officer.
Today's conference call contains forward-looking statements based on our current expectations, numerous known and unknown risks and uncertainties may cause actual results to differ materially from those anticipated or projected in these statements. Many of the factors that will determine future results are beyond the Company's ability to control or predict. You should not place any undue reliance on any forward-looking statements, and the Company undertakes no obligation to update or revise any of these statements, whether due to new information future events or otherwise.
Earlier today, we issued a press release containing our results for the fourth quarter and full year 2023. We have posted the release on the GoHealth website under the Investor Relations tab. In the press release, we have listed a number of risk factors that you should consider in conjunction with our forward-looking statements. We encourage you to consider the other risk factors described in our Form 10 K and Form 10 Q reports filed with the Securities and Exchange Commission for additional information during this call, we will be discussing certain non-GAAP financial measures.
These measures are reconciled to the most directly comparable GAAP financial measures and reconciliations are set forth in the press release. You may also refer to the investor presentation posted to the Investor Relations section of our website for reconciliations of non-GAAP measures to the most comparable GAAP measures discussed during this earnings call.
I will now turn the call over to go help CEO.

Vijay Kotte

Thank you, John, and good morning, everyone. I'm pleased to share with you today our 2023 results, which reflects significant year-over-year improvement in revenue. Adjusted EBITDA and operating cash flow shift to the non-agency operating model continues to drive cash generation. Our consumer-centric focus enables our evolution from enrollment to engagement with trust as the foundation, we provide guidance and insight to Medicare consumers in a landscape marked by confusion and uncertainty.
Over 65 million people in the United States are eligible for Medicare and about half of them are on Medicare Advantage. One-third of Medicare beneficiaries limit accounts with more than 50 plans available to choose for navigating these options can be confusing and stressful. We are proud that our team helped over 2 million consumers at their benefit options in 2023, leveraging our proprietary encompass workflow, including our plant that tool and plan fit checks backed by analytics from nearly 30 million consumer touch points and machine learning technology. Our proprietary plan fit tool helps GoHealth licensed agents match consumers to the best plan for them based on their profile and priorities.
During the fourth quarter of 2023, we announced the launch of plan fit, check planted checkup removes distress and enhances the experience for consumers shopping for a Medicare Advantage plan. As we've previously shared, there are three consumer outcomes for plan fit, check a one we enroll a consumer and a new plan because it's the best thing for their needs to tell the consumer about a better plan and they choose not to switch or three, we reassure the consumer that they are in the best plan for their needs and no enrollment takes place.
Importantly, GoHealth agents who complete a plan that checkup are compensated regardless of whether the assessment results in enrollment in the fourth quarter, we performed over 300,000 planted checkups. We enrolled over 200,000 of these consumers into a better plant option for their needs over 100,000 additional consumers were told they were on the bet plan already, and we did not enroll them in a new plan. We provided this peace of mind to the consumer, whether we already had a relationship with them. And more importantly, when we did not have an existing relationship with them, thus building and reinforcing trust in each and every instance during 2020 three's annual enrollment period, we faced the best test of the integrity of the plan fit check. Our marketing initiatives worked as planned.
Our agents showed up worked hard and took more opportunities per day than ever before. However, from a health plan product offering standpoint, AP was different than we have previously seen an analysis from Milliman revealed that for the first time in recent years, benefits for Medicare Advantage plans stayed relatively flat year over year. This led to a market environment with minimal product differentiation, providing fewer incentives for consumers to switch points in traditional enrollment centric broker model might still switch consumers to new plants with similar benefits or even subpar benefit to get a commission.
But we chose to honor the integrity of our plan for checkup process and the investment in trusted relationships with consumers and only recommended a change when there was a justified reason to do so with our high integrity process in 2023, we expanded our market leadership and continue to be a leading producer of Medicare Advantage policies for our primary health plan partners. We believe our Encompass transformation is working as a reminder, we launched the Encompass workflow in 2022. We are now operating at scale with all key partners with over 75% of our employee agents submissions in Q4 flowing through the Encompass workflow, we have observed ad market increase in submission quality as seen by lower complaints and CPM rates.
Our strategic shift has significantly impacted revenue composition over 50% of revenue is now generated from the non agency line, surpassing our traditional agency line or lifetime value, leveraging the Encompass workflow and adjustments to our LTV revenue recognition process has led to a stabilized back book asset value, just under $900 million net of our constrained reserves. This stability is evidenced by the absence of a look-back adjustment for the first time in several years. While we observed positive retention trends in late 2023, we have opted not to adjust LTV positively at this time. Underlying that approach is our expectation that there will be benefit disruptions for the 2025 benefit year, potentially leading to more switch. We're investing in long-term trusted relationships and not just trying to maximize the short-term return of an enrollment.
We believe this is not only the right thing to do, but also the right thing for the business and the right thing for health it is in the best interest of the consumer and 100% in line with what CMS is looking for from brokers. We are excited about the brand and proof points we are establishing and the proprietary tools, tactics and incentives we have built. We recognize that health plans are facing regulatory changes for Medicare Advantage that may impact benefit investments.
There's no question that Medicare Advantage continues to have a strong value proposition for Medicare eligible consumers. We expect to see more staffing and likely more switching as uncertainty on benefits. Stability appears probable in the upcoming AEP more than ever, consumers will need to find a trusted advisor to help them navigate the volume of options and the impact of benefit changes. And we believe GoHealth is that trusted advice.
Instead of providing specific 2024 guidance, we will share our general expectations for several key areas of our financial performance. First, we expect submission volume to grow in line with the overall Medicare market. Second, we expect our revenue to be flat year over year with incremental operating efficiency resulting in modest margin expansion.
Finally, cash flow from operations is expected to be flat to slightly up as we continue our transition into the Encompass model and shift to non-agency revenue. There are a handful of market factors that could influence our performance in the year. First is the final rate notice on commissions impacting 2024 82nd is the final 2025 marketing rules from CMS impacting 2024 AEP. Third is the degree to which there is health plan product and benefit differentiation between 2024 and 2025, which will indicate the amount of switching, we should expect for his marketing efficiency within this election season.
And finally, there's a relative health plan competitiveness and the effect on plan. Any of these factors alone or combined could significantly affect our performance for the full year 2024. We expect these key variables to become clearer throughout the year with some of the most material remaining unknown until the early part of the fourth quarter right before and during AEP. Our strategic and long-term outlook remain resolute, driven by a commitment to transforming the consumer health care journey. I am extremely proud of our team as they navigated through an important and transformative year punctuated by unique AEP. They rose to the occasion and breakpoint fit and delivered peace of mind through our compelling consumer value proposition.
With that, I will turn it over to Jason to detail our financial results.

Jason Schulz

Thank you, BJ. As we review our performance for 2023, I'm pleased to share that GoHealth has demonstrated financial and operational strength. One of our primary goals in 2023 was to continue to improve our operating cash flow. We delivered on this objective with $109 million of cash flow from operations, nearly 80% improvement from the $61 million in 2022. We ended the year with $90 million of cash on hand.
In addition to our strong cash flow, we generate significant improvement in revenue and adjusted EBITDA. Our journey to the year has been marked by substantial improvements across key financial metrics, underline the effectiveness of our strategic initiatives and the resilience of our business. We reported revenues for 2023 of $735 million, an increase of $104 million as compared to $631 million in 2022 a 16% improvement. As a reminder, 2022 revenue included a $276 million look-back adjustment that reduced revenue as a result of an actuarial review of our back book.
As BJ noted, we did not record a look-back adjustment for 2023, the first time since 2020. The work we have done with our Encompass model to de-risk the business from our agency revenue has resulted in higher-quality revenue and a strong balance sheet. Adjusted EBITDA, excluding non encompass BPO, was $73 million for the year, 78% improvement from $42 million before the look-back adjustment in 2022. This increase underscores our operational improvement and our focus on sustainable profitability.
Another way to look at our results is on a cash adjusted EBITDA basis in 2023, we generated $142 million of cash adjusted EBITDA, which is up from $98 million in 2022 and a negative $301 million in 2020. Cash adjusted EBITDA is simply taking our reported as adjusted EBITDA plus a year-over-year change in our net contract asset at the net contract asset has gone down as a result of higher cash collections from our back book. And the inverse is true at the net contract asset has increased year over year.
We believe that cash adjusted EBITDA is a helpful measure of our business as it neutralizes the impact of the LTV estimates related to future years. As I mentioned, 2023 sites achieving a robust cash flow from operations of $109 million, up from $61 million in 2022. This $48 million increase is a testament to our disciplined cash management and our successful execution of our operational strategy.
In the first quarter of 2024, we successfully negotiated an amendment to our debt agreement, adjusting the leverage ratio requirements for the duration of the loan facility. We will focus on refinancing our debt over the next few months as we aim to optimize our debt structure. We believe this amendment provides additional flexibility to support this goal while continuing to invest in the business for future growth.
In addition, we have committed to a $50 million term loan paydown in early Q2 and an additional $25 million paydown in early Q4 of this year, which we plan to fund from our strong balance sheet and liquidity. More information will be available in our 10 K. I will now turn the call back to VJ for closing remarks.

Vijay Kotte

Our confidence in our business and operational model continues to remain resolute. We firmly believe that prioritizing consumer needs and aligning with CMS regulators and health plan standard is a sound long-term strategy for our shareholders. Our focused business transformation efforts bolster our positive outlook. We are well positioned to overcome unique market dynamic and seize opportunities to further enhance shareholder value.
With that, we'll now take your.

Question and Answer Session

Operator

(Operator Instructions)
Ben Hendrix, RBC Capital Markets.

Ben Hendrix

Hey, thanks, guys. Just a quick question on I appreciate the commentary about submission volume kind of in line with Medicare growth, but wanted to kind of just get your thoughts kind of commentary on the overall Encompass platform. Is there been any anything fundamentally changing about your ability to capture the growth opportunity in Medicare going forward. Any anything in your encompass strategy that's changed that we should be aware of? And kind of how do you how do you see that kind of are you at on a competitive footing with your peers who may be still kind of pursuing a C. six oh six strategy, but you know over the longer term.
And that is basically how should we think about the competitive differential between the two platforms kind of given what we've seen this this past?

Vijay Kotte

Yes, thanks for the question. Ben, just that I got the question right effectively, just thinking about are there any material changes to the way we are operating or thinking about our Encompass model in prefunding specifically relative to the 66 versus 65 more like LTV versus the more income, but prefunded model we get operationally, we are still very confident that the Encompass workflow that we put in place is the right thing for consumers and we are committed to that. We want to make sure that we are continuously putting the consumer at the center of everything we do.
And as part of that, we think there are costs to running that business model that we are contemplating and appropriately investing in in the way that we get reimbursed by our health plans for that model. As you think about the overall market landscape, as we indicated, there's a lot of benefit in stability that may be coming up in the upcoming ag season in future.
And when you think about the market landscape in general and when you look two years ago versus a flat 80 versus what we're anticipating the future consumers should likely to shop more, which is what we've said all year. We want them to shop. We expected them to shop. They are. But when it comes to the appropriate time to make switch. It is either because they've got incrementally much better benefits or in-country when they have a lot of change in events, et cetera. And what we saw in the last 80, it was one of the unique 80s where there was some negative, but really not a lot of changes.
And so less and less of a reason for people to make changes. And when you have a high-integrity process like the Encompass workflow, we are going to deliver a result where you're just providing peace of mind as opposed to new enrollment. So just in short, we are staying committed and we believe there's a lot of future viability and excitement about the differentiation of the Encompass workflow.
The quality is better and we're delivering a better experience to play the long run with that relationship with the consumer. And as it relates to the market dynamic, we would expect that as we've said, and what we didn't do on LTVs, we saw some positivity on LTVs or retention in the last latter part of 2023. But in anticipation of some of the disruptions we expect going forward for this of the portion of the business that we still have it on an LTV basis or simplistic basis, as you referred to, we were trying to maintain some conservatism on that as we continue to see the market dynamic.

Ben Hendrix

Right. Thank you very much.

Operator

Pat McCann, Noble Capital Market. Your line is open.

Pat McCann

Hey, guys. Thanks for taking my question. I was I was wondering, given that the number of Medicare Advantage plan options has been growing pretty rapidly. I'm wondering if number one, if you're seeing that trend continue when you look at the carriers, are there more and more options hitting the market? And then I guess sort of a basic question would be, could you talk a little bit about how encompass it gives customers access to to the largest number of plants possible even as those POLICY options are rapidly evolving?

Vijay Kotte

Yes, I think, Pat, for the question just to restate One is how do we think about the plan options increasing, as you know, following the trend that we've seen in previous years and then follow up was how do we make sure that the consumers have access to being able to decipher between all those plants that is that the right way to restate your question?

Pat McCann

Yes.

Vijay Kotte

So on the first one, it's an interesting question, and it's really a health plan by health plan question as to who is going to be introducing or contracting the number of plans available, as I said in the previous responses, offense and defensive reasons why a consumer may want to make a change right and authentically if their benefits in the market that they're in had significant improvement, right? And they might want to stop and potentially make a switch if there's disruption in the marketplace of Healthplan bleeding or degradation to benefit. It also triggered the moment where they should shop and likely make them change that. And so we're anticipating more the latter as we kind of heard some of the things from the health plans, not to say that some might still milestone.
I might still make some investments and benefit, but you're seeing the general landscape of what's hitting that, the challenges of the Medicare Advantage health plan profitability. As I said, there's likely going to be more tweaks and adjustments that require the nuance of our plan, the technology and the trusted and structure are the foundation upon which we operate Encompass. So so we don't know per se, if there's going to be a lot more. I would say my gut is probably not a lot of growth in brand new plans.
But what we do know, we've heard that plans are indicating they will likely be exiting certain geographies causing some of that disruption, but still more to come, as we alluded to in the US that the market dynamics won't really be known until much later in the year. So what's really going to now.
On the second question, you asked about how do we make sure that consumers have access to all those plans. Well, we work with most of the major plans within the health plans in the country. Those health plan options, if they've got [500], [300], they are all in our plan fit. And so ultimately, when our agents go through and do a needs assessment, they understand where the consumer lives, they get their Medicare eligibility to understand if they're eligible for SNIP plans, I mean your special needs plans, chronic special needs plans or just traditional Medicare Advantage plans.
And then we filter through their needs compared to the current plan and then lay out those top three to five options that are available to them based on their specific needs. So we're really filtering down regardless of it there for plans available in that county for them that drilled four or 150 counted eight plants. There are available to them that they're eligible for to drive it down to a handful and then explaining to them what's the unique difference or trade-off between. And so we believe that's how you're one taking that stress and confusion out of the marketplace and enabling the consumer to make an informed decision for them without pushing them down a path, but enabling and empowering them with the data. So hopefully, that's responsive to your question that spread is.

Pat McCann

And then if I if you don't mind. If I could ask just a follow-up questions is something you've spoke about as far as the non the non agency revenue and how it has eclipsed 50%, 60% in Q4. Given that is there, is there any color you could give as to your expectations for how that that number will shift as a percentage of sales? As we look forward into 2024.

Vijay Kotte

I think the way we're obviously going to continue to invest as we've kind of giving you the directional qualitative commentary on what we expect to see in cash flow from operations. We expect to see at that dynamic shift and potentially improve the cash flow from operations based on more movement towards the non-agency model. That is a function of both mix of how growth happens within the marketplace, competitiveness of benefits, et cetera.
But there's no doubt in the way that we approach the business. We are at a strategy continued to shift more to that line. The question is the pace at which that might run. We actually had a significant jump in this year alone, and we'd love to be able to see more of that continue to ship.

Pat McCann

And thanks. And then I was going to ask about on the debt repayments, but but Jason kind of covered that on here just previously. So that's all I've got. Thank you so much, guys.

Operator

One moment for the next question.
Jim Sidoti, Sidoti & Co.

Jim Sidoti

Hi, good morning and thanks for taking the questions, which I know you've made several changes since you arrived in terms of staffing levels and strategies. I'm just curious, are you happy with the progress we've made to date? And should we expect any big adjustments in 2024?

Vijay Kotte

Thank you for the question. You know what we did when we first came here. If you go back in time, and I won't I won't relive all history, but first, we were trying to stabilize the business, right, and really just stabilize things and understand where our strengths were weakest were to invest in the strength and tried to mitigate and control for those weaknesses in whatever market Factive we're playing in what we really doubled down on was that we're playing a long game strategy, right? Part of the issues that we saw in the industry is the missing piece within healthcare, specifically within what we consider the e-broker industry with a lack of trust and consistency now with within all the parties that was from regulators that from health plans but from the consumers, et cetera.
And so we've really invested in the Encompass workflow and the Encompass process to transform that component of who we are to be a leader in proving that we can not just drive appropriate enrollment, but driving trust and credibility with industry forecasts and what we've done with the plant. But Dave, what we've done with plant that checked up and again, to the extent that we're now in conversations with health plans to be able to be compensated for doing the right thing in the plant that Dave is showing that we're really delivering and the opportunity to provide peace of mind to the consumer, which we believe played for that longitudinal relationship that we're building versus where the industry I've been in, where I most companies have been, which is trying to just drive enrollment in the short term period without thinking about and that's supporting a consumer over a 15 to 20 year life.
They are enrolled and eligibility. So I guess my response to that is yes. I'm very proud of where we are. I think we're absolutely I've laid the foundation of resetting where the industry that actually being a value add of not just driving enrollments but driving field empowerment to the consumers to make the decisions for themselves in a very confusing world. And I think you are seeing the diversification away from the LTV volatilities that have been there of moving to the non-agency line has also been something that we're very excited about what we can't always control for. But we've built the model and we continue to find it is how the health plans are performing in any given year to how their financial it translate into their investments.

Jim Sidoti

In debentures and that kind of leads into my next question, have the health plan partners or how what is their attitude towards this shift towards incompetent they accepted this and are they on board? And do you think other players in the industry will make similar changes?

Vijay Kotte

It's I'll answer the last part first. It's hard for me to assess what other players are going to do. I think everybody's got different strategies as to how they address their short-term needs versus thinking about the long term as to who they want to be, et cetera. But as it relates to the health plan to health plan have landed at the end of this, as we indicated in the prepared remarks, we had nearly 75 plus percent of all of our enrollments run through the Encompass work. That is a multi-tiered approach.
It is the high touch, really shopping experience that is truly unparalleled in the industry at this point. And the health plans have found that that is higher quality and resulting in better results. And so they have definitely lean into wanting us to continue that program and supporting us through that process. They wanted us to find ways to expand that program.
As you know, we have downline agency work underneath our umbrella, use our technology as well to expand that as well so that we can improve the quality of those downline, similar to what we've been we've done with our internal agents. So we have definite strong support on it pretty much driven off of the fact that we're delivering better quality while still maintaining pretty high volumes.
And it's clear that the shift is improved. Your ability to predict cash flows and receivables are from collection of receivables, but do you think it's also improved your ability to predict future revenues. It is I think it from the stability of the revenue that we are booking and recognizing in a period, it is absolutely giving us better predictability of that.
And so when you think about cash and you think about the revenue, you book in a period. So we can manage our cash flow in a much better way when you have the Encompass world with our shift to non-agency. And you also have an ability when you book that revenue as you saw in that last period, even with that encompass workflow, we still have six oh six revenue running through the Encompass workflow such that that quality and predictability, the ability of what we write under that is even higher. So we have a higher confidence in what we book on a six-month basis because it will never go to zero, as we've always said. And then you add in even higher confidence of what you booked in revenue for that that runs through the denominator.

Jim Sidoti

And then just back to my initial question, if you have this better or better visibility on revenue, should we expect any major changes on investments and operating expenses in 2024?

Vijay Kotte

We're going to continue to invest and there will be incremental investments in technology that you should expect for us to continue to get standardization, systematic improvements in the experience for the consumer for engagement points as we described, moving from guest enrollment to more of that engagement I-vation and a full support of the consumer through the process. So you'll see some more investment in that as we go into the year. And most of that, we're finding internal opportunities to reallocate our dollars to make those investments within the Company for the future.

Jim Sidoti

Great.

Operator

Sandeep Soorya, Delaware Street Capital.

Sandeep Soorya

Can you guys hear me okay?

Vijay Kotte

Yes. Had some nice value.

Sandeep Soorya

Hi, good. Thanks for taking the question. I have a couple of questions. The first is how should we think about the proposed regulations and how do we think about regulations in general on the Encompass business relative to the agency business.

Vijay Kotte

Great questions. And even I think as we've all learn, I it is really important to wait for two things. When it comes to proposed regulations. As we know, that's an annual event and there is a proposed rule and then there's a final rule. And even after final rule comes out, it's generally not specific enough to get clear guidance from it. You end up going into each individual health plan in our business to understand their interpretation of those rules. So I think it's a little too early as to understanding what it would be, what it could be, et cetera.
What I would say is we are generally in alignment with the concept of protecting the consumers. We want to make sure that there is more access to all the different health plans and information around that. And there are inappropriate incentives to sway that unbiased shopping experience. And so we've always been supportive of that. And I think we've proven in the last period that we're absolutely investing in that experience.
And as we look at what the proposed rule is and what they're controlling for, I think they're really trying to find more and more ways to drive that right to support that experience. And so we believe there's a lot of rate regulation that's already out there today before the proposed rule that could lean into just really focusing on enforcing what's there with all the bad actors that are out there that are causing more than noise in the problem. But that said, again, to your primary question, it's more left to let's see what comes out. Let's see what the interpretations of that are going to be and I'm assuming most of what you're describing is less about operational workflows.
I think we've proven that year over year as there are changes like 48 hours or other thing, we are pretty nimble and being able to accommodate those of changes with CMS and has those the real question is the uncertainty around just like in the commission rates year over year at this same as dynamic, I've known the proposed rule if there could be impact to compensation. But as we think about our Encompass workflow specifically, that was built up on really doing a fair market value delivered services for the activities that we are performing on behalf. And when you think about that, that is a model that has full documentation and background behind it. So we're very excited about how that prepares us for what is to come. But again, we got to see the details of.

Sandeep Soorya

Okay, great. Thank you. And then how do we think about I've got a couple of longer-term questions, and I think like maybe two to four years, three to five years, but how do we think about revenue growth, EBITDA margins and EBITDA growth? And even looking at cash flow, you had a strong cash flow this year. How should we think about cash flow dynamics over the next few years as well?

Vijay Kotte

Yes. I mean, look, I think as we've talked about and we even given in our qualitative comments here today, we believe growing in general with the overall market, that's plenty of market share. Right. As you think about the Medicare consumer group growing on when you think about overall growth, that disruption factor that I described on any if you think about over a long term with Medicare, those of us have been in it for a long time to go through.
Right. And so when you have a lot of excitement and everybody wants to grow, there's a big site. And that's arguably obviously a point at which a business like ours in that industry is going to see when you see that the dynamics are changing right in the market landscape there, those inflection points where people are assessing and then determining what they're going to do with their financial needs.
And so that was what we really saw in the last 80, they were kind of testing the waters specifically on the non special-needs plan. You saw that there was very little investment in aggregate in new products in that year. And then when you move into to be the other part of the cycle is when they pull back on. And actually, even though they're not as focused on growth, the shifting between Medicare Advantage plans for a company like us is also an exciting marketplace for
So when there is a lot of new plans and interest in growing. It's good for our business when there's a lot of disruption in their switch and the benefits up. And even if they're not interested in growing, but there contracting a bit, but there's a lot of switching around. That's also a good market dynamic for us. And that's the market we're expecting to go into still over any, call it, five year period, you're going to see that type of a cycle generally happen in Medicare. It happens a lot. It has over time.
So as we think about how we think about revenue, margin expansion and cash flow, the revenue line. I'm kind of giving you a little bit of the indications of what you could see a process of what market number of growth in aggregate means that there's an opportunity to grow and then the volatility and the benefits will determine how much more or less you're going to play in.
And then as you look at margin expansion, we know that within our control, how efficient can you be? Can you can you continue to demonstrate efficiency and growth with the invested dollar that we and we're going to continue to invest in that, right. And we're pretty pretty solid right now. But again, when you think about the core operations, it's really going to be the effectiveness of your marketing overall. So what I would say is that we expect to continue to deliver some efficiency there over time, but it's not going to be by leaps and bounds versus what we've got to date with the current enrollment business. But as we think about our expanding into being more of an engagement company. There could be some opportunities there would be efficient, have the minutes and the time we're spending with consumers on the phone.
And then finally, in cash flow, I think what we've proven is that we're diligent on making sure that that the member experience and cash are king as we deliver how we're going to grow in it. So we want to make sure that our cash flow is solid and predictable and not to spend money to chase revenue at any. So we're balanced in that approach, and we want to continuously show not just in cash flow from operations and total cash and free cash, et cetera. And the way we think about operating the business that we're consistently delivering results. So as we think about overall growth, growing our capital alongside with our earning, as is the way we would think about is that over.

Sandeep Soorya

Okay, great. That's it for me. Thank you.

Operator

I show no further questions at this time. I would now like to turn the call back to VJ for closing remarks.

Vijay Kotte

Thank you. And again, thank you all for joining today. Lots of really good questions. We are excited about where the business is to play for these long-term relationships. We've made a significant investment in those consumers who need our services them trust and peace of mind in a complex and confusing world is critical.
And that is going to be an important thing, not just today, but especially as we go into this next 18 as we look into the future. So we're excited about the value we can deliver to the consumer to shareholders and all other health plans and regulators involved because we do believe that is the key to the future. And we're very, very thankful to our team as we continue to invest in delivering that consistent experience. So thanks, and we look forward to speaking to you all again soon.

Operator

This concludes today's conference call. Thank you for your participation. You may now disconnect.