Shares of GoHealth (GOCO 4.63%) plummeted today and were down by 16% as of 12:15 p.m. EST after the company reported third-quarter earnings. The results missed expectations, in part due to accelerated vesting of equity awards.
Revenue in the third quarter came in at $163.4 million, which was shy of the $169.5 million that analysts were expecting. That resulted in a net loss of $206.5 million, or $0.65 per share, while the consensus estimate had called for just $0.01 per share in red ink. The bottom line result included $209.3 million in costs associated with the accelerated vesting of equity awards due to the health insurance company's recent IPO.
"GoHealth's third-quarter adjusted EBITDA growth of 142% was powered by 52% revenue growth and strong operating leverage as we continue to efficiently scale the business," CEO Clint Jones said in a statement. "These excellent results marked a continuation of year-to-date trends as consumers increasingly turn to GoHealth's leading [direct-to-consumer] platform to find the best Medicare policies to meet their unique needs."
GoHealth modestly boosted the low end of its revenue guidance for the year, citing strong Medicare enrollments. Revenue for 2020 is now expected to be in the range of $850 million to $890 million, a slight improvement compared to the previous forecast of $840 million to $890 million. Adjusted EBITDA for this year should be $270 million to $290 million, up from the prior outlook of $265 million to $290 million.