SelectQuote Inc

Previous wording

Senior was launched in 2010 and provides unbiased comparison shopping for Medicare Advantage (“MA”) and Medicare Supplement (“MS”) insurance plans as well as prescription drug and dental, vision, and hearing (“DVH”) plans, and critical illness products. We represent approximately 25 leading, nationally-recognized insurance carrier partners, including UnitedHealthcare, (“UHC”), Humana, and Wellcare. MA and MS plans accounted for 92% and 91% of our approved Senior policies for the three months ended December 31, 2023 and 2022, respectively, and 91% and 90% for the six months ended December 31, 2023, and 2022, respectively, with other ancillary type policies accounting for the remainder.

Current wording

Senior was launched in 2010 and provides unbiased comparison shopping for Medicare Advantage (“MA”) and Medicare Supplement (“MS”) insurance plans as well as prescription drug and dental, vision, and hearing (“DVH”) plans, and critical illness products. We represent approximately 25 leading, nationally-recognized insurance carrier partners, including UnitedHealthcare, (“UHC”), Humana, and Wellcare. MA and MS plans accounted for 92% and 90% of our approved Senior policies for the three months ended March 31, 2024 and 2023, respectively, and 92% and 90% for the nine months ended March 31, 2024, and 2023, respectively, with other ancillary type policies accounting for the remainder.

Previous wording

Life is one of the country’s largest and most established DTC insurance distributors for term life insurance, having sold over 2.2 million policies nationwide since our founding in 1985. Our platform provides unbiased comparison shopping for life insurance products such as term life, final expense, and other ancillary products like critical illness, accidental death, and juvenile insurance. We represent approximately 20 leading, nationally-recognized insurance carrier partners, with many of these relationships exceeding 15 years. Term life policies accounted for 47% and 48% of new premium within Life for the three months ended December 31, 2023 and 2022, respectively, with final expense policies accounting for 53% and 52% for the three months ended December 31, 2023 and 2022, respectively. For the six months ended December 31, 2023 and 2022, term life policies accounted for 48% and 44% of new premium within Life, respectively, with final expense policies accounting for 52% and 56%, respectively.

Current wording

Life is one of the country’s largest and most established DTC insurance distributors for term life insurance, having sold over 2.2 million policies nationwide since our founding in 1985. Our platform provides unbiased comparison shopping for life insurance products such as term life, final expense, and other ancillary products like critical illness, accidental death, and juvenile insurance. We represent approximately 20 leading, nationally-recognized insurance carrier partners, with many of these relationships exceeding 15 years. Term life policies accounted for 41% and 48% of new premium within Life for the three months ended March 31, 2024 and 2023, respectively, with final expense policies accounting for 59% and 52% for the three months ended March 31, 2024 and 2023, respectively. For the nine months ended March 31, 2024 and 2023, term life policies accounted for 45% and 45% of new premium within Life, respectively, with final expense policies accounting for 55% and 55%, respectively.

Previous wording

Auto & Home was launched in 2011 as an unbiased comparison shopping platform for auto, home, and specialty insurance lines. Our platform provides unbiased comparison shopping for insurance products such as homeowners, auto, dwelling fire, and other ancillary insurance products underwritten by approximately 25 leading, nationally-recognized insurance carrier partners. Homeowners and 12-month auto products accounted for 77% and 73% of new premium within Auto & Home for the three months ended December 31, 2023 and 2022, respectively, and 77% and 74% for the six months ended December 31, 2023 and 2022, respectively, with six-month auto, dwelling fire, and other products accounting for a majority of the remainder.

Current wording

Auto & Home was launched in 2011 as an unbiased comparison shopping platform for auto, home, and specialty insurance lines. Our platform provides unbiased comparison shopping for insurance products such as homeowners, auto, dwelling fire, and other ancillary insurance products underwritten by approximately 25 leading, nationally-recognized insurance carrier partners. Homeowners and 12-month auto products accounted for 71% and 73% of new premium within Auto & Home for the three months ended March 31, 2024 and 2023, respectively, and 75% and 74% for the nine months ended March 31, 2024 and 2023, respectively, with six-month auto, dwelling fire, and other products accounting for a majority of the remainder.

Previous wording

The three and six months ended December 31 referenced throughout the commentary below refers to the second quarter and fiscal year-to-date performance of our fiscal years ending on June 30, 2024 and 2023.

Current wording

The three and nine months ended March 31 referenced throughout the commentary below refers to the third quarter and fiscal year-to-date performance of our fiscal years ending on June 30, 2024 and 2023.

Previous wording

Total submitted policies for all products increased 7% for the six months ended December 31, 2023, compared to the six months ended December 31, 2022. This was driven by increases in overall close rates (10%), the number of average productive agents (7%), and productivity per agent (6%).

Current wording

Total submitted policies for all products increased 11% for the three months ended March 31, 2024, compared to the three months ended March 31, 2023. This was driven by increases in overall close rates (18%), the number of average productive agents (7%), and productivity per agent (13%).

Previous wording

Total submitted policies for all products increased 6% for the three months ended December 31, 2023, compared to the three months ended December 31, 2022. This was driven by an 8% increase in the number of average productive agents and a 5% increase in productivity per agent. Close rates remained flat for the three months ended December 31, 2023, compared to the three months ended December 31, 2022.

Current wording

Total submitted policies for all products increased 9% for the nine months ended March 31, 2024, compared to the nine months ended March 31, 2023. This was driven by increases in overall close rates (12%), the number of average productive agents (9%), and productivity per agent (7%).

Previous wording

Total approved policies for all products increased 8% for the six months ended December 31, 2023, compared to the six months ended December 31, 2022. Fluctuations in approved policies are normally in direct correlation to submitted policies; however, due to enhanced agent training and development and a higher mix of tenured agents, we experienced a slight improvement in the submitted-to-approved conversion rates for the six months ended December 31, 2023, compared to the six months ended December 31, 2022.

Current wording

Total approved policies for all products increased 8% for the nine months ended March 31, 2024, compared to the nine months ended March 31, 2023. Fluctuations in approved policies are normally in direct correlation to submitted policies; however, primarily due to carrier mix, we experienced a slight decrease in the submitted-to-approved conversion rates for the nine months ended March 31, 2024, compared to the nine months ended March 31, 2023.

Previous wording

The LTV per MA approved policy increased 7% for the three months ended December 31, 2023, compared to the three months ended December 31, 2022, primarily due to carrier mix.

Current wording

The LTV per MA approved policy increased 3% for the three months ended March 31, 2024, compared to the three months ended March 31, 2023, primarily due to carrier mix.

Previous wording

The LTV per MA approved policy increased 4% for the six months ended December 31, 2023, compared to the six months ended December 31, 2022, primarily due to carrier mix.

Current wording

The LTV per MA approved policy increased 4% for the nine months ended March 31, 2024, compared to the nine months ended March 31, 2023, primarily due to carrier mix.

Previous wording

The total number of SelectRx members increased 59% for the three months ended December 31, 2023, compared to the three months ended December 31, 2022, due to our operating strategy to grow SelectRx.

Current wording

The total number of SelectRx members increased 67% as of March 31, 2024, compared to March 31, 2023, due to our operating strategy to grow SelectRx.

Previous wording

Prescriptions per day represents the total prescriptions shipped per business day, as this is a primary key driver of revenue for Healthcare Services.

Current wording

Prescriptions per day represents the total average prescriptions shipped per business day, as this is a primary key driver of revenue for Healthcare Services.

Previous wording

Total revenue per MA/MS policy increased 37% for the twelve months ended December 31, 2023, compared to the twelve months ended December 31, 2022, primarily due to the increase in pharmacy revenue. Total operating expenses per MA/MS policy increased 23% for the twelve months ended December 31, 2023, compared to the twelve months ended December 31, 2022, driven by a 100% increase in operating expenses related to SelectRx due to the growth of the business, offset by a 3% decrease in other operating expenses driven by a decrease in marketing and advertising costs for the second half of fiscal year 2023 compared to the second half of fiscal year 2022.

Current wording

Total revenue per MA/MS policy increased 31% for the twelve months ended March 31, 2024, compared to the twelve months ended March 31, 2023, primarily due to the increase in pharmacy revenue. Total operating expenses per MA/MS policy increased 22% for the twelve months ended March 31, 2024, compared to the twelve months ended March 31, 2023, primarily driven by increase in cost of goods sold-pharmacy revenue for SelectRx due to the growth of the business.

Previous wording

Total term premiums increased 10% for the three months ended December 31, 2023, compared to the three months ended December 31, 2022, due to a 10% increase in the number of policies sold. Final expense premiums increased 13% for the three months ended December 31, 2023, compared to the three months ended December 31, 2022, due to a 3% increase in the average premium per policy sold and a 10% increase in the number of policies sold.

Current wording

Total term premiums decreased 4% for the three months ended March 31, 2024, compared to the three months ended March 31, 2023, due to an 11% decrease in the number of policies sold offset by an 8% increase in the average premium per policy sold. Final expense premiums increased 23% for the three months ended March 31, 2024, compared to the three months ended March 31, 2023, due to a 4% increase in the average premium per policy sold and a 18% increase in the number of policies sold.

Previous wording

Total term premiums increased 15% for the six months ended December 31, 2023, compared to the six months ended December 31, 2022, due to a 3% increase in the average premium per policy sold and a 12% increase in the number of policies sold. Final expense premiums remained flat for the six months ended December 31, 2023, compared to the six months ended December 31, 2022. The number of policies sold declined 4% driven by a lower average productive agent headcount, which was somewhat offset by a 3% increase in the average premium per policy sold.

Current wording

Total term premiums increased 8% for the nine months ended March 31, 2024, compared to the nine months ended March 31, 2023, due to a 5% increase in the average premium per policy sold and a 3% increase in the number of policies sold. Final expense premiums increased 7% for the nine months ended March 31, 2024, compared to the nine months ended March 31, 2023 due to a 4% increase in the average premium per policy sold and a 3% increase in the number of policies sold.

Previous wording

Total premiums increased 22% for the three months ended December 31, 2023, compared to the three months ended December 31, 2022, due to a 19% increase in the average premium per policy sold and a 2% increase in the number of policies sold.

Current wording

Total premiums increased 17% for the nine months ended March 31, 2024, compared to the nine months ended March 31, 2023, due to a 15% increase in the average premium per policy sold and a 2% increase in the number of policies sold.

Previous wording

(1) These expenses primarily consist of financing transaction costs.

Current wording

(1) These expenses primarily consist of financing transaction costs and non-restructuring severance expenses.

Previous wording

(1) These expenses primarily consist of financing transaction costs.

Current wording

(1)These expenses primarily consist of financing transaction costs and non-restructuring severance expenses.

Previous wording

Three Months Ended December 31, 2023 and 2022–Commission revenue increased $33.2 million, or 14%, for the three months ended December 31, 2023, and included increases in Senior, Life, and Auto & Home commission revenue of $26.8 million, $3.1 million, and $2.9 million respectively. For Senior, this was driven by a 6% increase in approved policies and an 8% increase in LTV’s. Life’s revenue increase was primarily driven by a $1.8 million increase in term revenue and a $1.3 million increase in final expense revenue. The $57.2 million increase in pharmacy revenue was due to the increase in members due to the expansion of the SelectRx business. The $4.1 million decrease in other revenue was driven by a $2.6 million decrease in production bonus revenue.

Current wording

Three Months Ended March 31, 2024 and 2023–Commission revenue increased $33.5 million, or 17%, for the three months ended March 31, 2024, and included increases in Senior, Life, and Auto & Home commission revenue of $29.0 million, $3.8 million, and $0.9 million respectively. For Senior, this was driven by a 9% increase in approved policies and a 5% increase in LTV’s. Life’s revenue increase was driven by a $0.1 million increase in term revenue and a $3.7 million increase in final expense revenue. The $53.3 million increase in pharmacy revenue was due to the increase in members due to the expansion of the SelectRx business. The $9.8 million decrease in other revenue was driven by a $9.0 million decrease in production bonus revenue.

Previous wording

Six Months Ended December 31, 2023 and 2022–Commission revenue increased $44.6 million, or 13%, for the six months ended December 31, 2023, and included increases in Senior, Life, and Auto & Home commission revenue of $35.4 million, $3.6 million, and $5.0 million respectively. For Senior, this was driven by an 8% increase in approved policies and a 6% increase in LTV’s. Life’s revenue increase was primarily driven by a $5.5 million increase in term revenue, partially offset by a $2.0 million decrease in final expense revenue. The $110.9 million increase in pharmacy revenue was due to the increase in members due to the expansion of the SelectRx business. The $1.0 million increase in other revenue was driven by a $2.5 million increase in production bonus revenue.

Current wording

Nine Months Ended March 31, 2024 and 2023–Commission revenue increased $78.1 million, or 15%, for the nine months ended March 31, 2024, and included increases in Senior, Life, and Auto & Home commission revenue of $64.4 million, $7.4 million, and $5.9 million respectively. For Senior, this was driven by an 8% increase in approved policies and a 6% increase in LTV’s. Life’s revenue increase was driven by a $5.6 million increase in term revenue and a $1.8 million increase in final expense revenue. The $164.2 million increase in pharmacy revenue was due to the increase in members due to the expansion of the SelectRx business. The $8.8 million decrease in other revenue was driven by a $6.5 million decrease in production bonus revenue and a $2.0 million decrease in lead sales revenue.

Previous wording

Three Months Ended December 31, 2023 and 2022–Cost of revenue increased $5.9 million, or 7%, for the three months ended December 31, 2023, primarily due to a $5.8 million increase in compensation costs mostly from our Senior segment.

Current wording

Three Months Ended March 31, 2024 and 2023–Cost of revenue increased $5.1 million, or 6%, for the three months ended March 31, 2024, primarily due to a $5.0 million increase in compensation costs mostly from our Senior segment.

Previous wording

Six Months Ended December 31, 2023 and 2022–Cost of revenue increased $13.3 million, or 8%, for the six months ended December 31, 2023, primarily due to a $13.0 million increase in compensation costs mostly from our Senior segment.

Current wording

Nine Months Ended March 31, 2024 and 2023–Cost of revenue increased $18.4 million, or 8%, for the nine months ended March 31, 2024, primarily due to a $18.0 million increase in compensation costs mostly from our Senior segment.

Previous wording

Three Months Ended December 31, 2023 and 2022–Cost of goods sold-pharmacy revenue increased $44.1 million, or 88%, for the three months ended December 31, 2023, primarily due to a $40.2 million increase in medication costs as the number of SelectRx members increased 59% over the prior year.

Current wording

Three Months Ended March 31, 2024 and 2023–Cost of goods sold-pharmacy revenue increased $43.9 million, or 70%, for the three months ended March 31, 2024, primarily due to a $37.0 million increase in medication costs as the number of SelectRx members increased 67% over the prior year.

Previous wording

Six Months Ended December 31, 2023 and 2022–Cost of goods sold-pharmacy revenue increased $85.7 million, or 93%, for the six months ended December 31, 2023, primarily due to an $80.8 million increase in medication costs as the number of SelectRx members increased 59% over the prior year.

Current wording

Nine Months Ended March 31, 2024 and 2023–Cost of goods sold-pharmacy revenue increased $129.6 million, or 84%, for the nine months ended March 31, 2024, primarily due to an $117.7 million increase in medication costs as the number of SelectRx members increased 67% over the prior year.

Previous wording

Three Months Ended December 31, 2023 and 2022–Marketing and advertising expenses increased $27.2 million, or 30%, for the three months ended December 31, 2023, primarily due to a $24.1 million increase in lead costs. This increase can be attributed to the increase in MA submitted policies and an increase in customer acquisition costs on a per policy basis.

Current wording

Three Months Ended March 31, 2024 and 2023–Marketing and advertising expenses increased $19.1 million, or 21%, for the three months ended March 31, 2024, primarily due to a $17.2 million increase in lead costs. This increase can be attributed to the increase in MA submitted policies and an increase in customer acquisition costs on a per policy basis.

Previous wording

Six Months Ended December 31, 2023 and 2022–Marketing and advertising expenses increased $31.9 million, or 22%, for the six months ended December 31, 2023, primarily due to a $28.4 million increase in lead costs. This increase can be attributed to the increase in MA submitted policies and an increase in customer acquisition costs on a per policy basis.

Current wording

Nine Months Ended March 31, 2024 and 2023–Marketing and advertising expenses increased $51.0 million, or 21%, for the nine months ended March 31, 2024, primarily due to a $45.6 million increase in lead costs. This increase can be attributed to the increase in MA submitted policies and an increase in customer acquisition costs on a per policy basis.

Previous wording

Three Months Ended December 31, 2023 and 2022–Selling, general, and administrative expenses increased $5.0 million, or 18%, for the three months ended December 31, 2023, primarily due to increases in compensation costs of $3.8 million and corporate development costs of $1.9 million.

Current wording

Three Months Ended March 31, 2024 and 2023–Selling, general, and administrative expenses increased $7.4 million, or 27%, for the three months ended March 31, 2024, primarily due to increases in compensation costs of $5.0 million and corporate development costs of $2.7 million.

Previous wording

Six Months Ended December 31, 2023 and 2022–Selling, general, and administrative expenses increased $3.0 million, or 5%, for the six months ended December 31, 2023, primarily due to an increase in compensation costs of $3.1 million.

Current wording

Nine Months Ended March 31, 2024 and 2023–Selling, general, and administrative expenses increased $10.4 million, or 12%, for the nine months ended March 31, 2024, primarily due to an increase in compensation costs of $8.1 million.

Previous wording

Three Months Ended December 31, 2023 and 2022–Technical development expenses increased $1.8 million, or 29%, for the three months ended December 31, 2023, primarily due to a $2.0 million increase in compensation costs.

Current wording

Three Months Ended March 31, 2024 and 2023–Technical development expenses increased $2.2 million, or 34%, for the three months ended March 31, 2024, primarily due to a $2.1 million increase in compensation costs.

Previous wording

Six Months Ended December 31, 2023 and 2022–Technical development expenses increased $3.3 million, or 26%, for the six months ended December 31, 2023, primarily due to a $3.3 million increase in compensation costs.

Current wording

Nine Months Ended March 31, 2024 and 2023–Technical development expenses increased $5.4 million, or 29%, for the nine months ended March 31, 2024, primarily due to a $5.3 million increase in compensation costs.

Previous wording

Six Months Ended December 31, 2023 and 2022–Interest expense increased $8.0 million, or 21%, as a result of higher interest rates during the period. The increase was partially offset by interest income received from the interest rate swap and our money market account.

Current wording

Three Months Ended March 31, 2024 and 2023–Interest expense increased $3.2 million, or 15%, as a result of higher interest rates during the period. The increase was partially offset by interest income received from the interest rate swap.

Previous wording

Three Months Ended December 31, 2023 and 2022–Interest expense increased $3.4 million, or 16%, as a result of higher interest rates during the period. The increase was partially offset by interest income received from the interest rate swap and our money market account.

Current wording

Nine Months Ended March 31, 2024 and 2023–Interest expense increased $11.3 million, or 19%, as a result of higher interest rates during the period. The increase was partially offset by interest income received from the interest rate swap and our money market account.

Previous wording

Three Months Ended December 31, 2023 and 2022–For the three months ended December 31, 2023 and 2022, we recognized income tax expense of $11.5 million and $9.4 million, respectively, representing effective tax rates of 37.2% and 29.5%, respectively. The differences from the federal statutory tax rate to the effective tax rates for the three months ended December 31, 2023, were primarily related to state income taxes and the recording of a valuation allowance for federal tax attributes that the Company does not expect to utilize prior to expiration.. The differences from our federal statutory tax rate to the effective tax rate for the three months ended December 31, 2022, were primarily related to state income taxes, RSU vestings, and the recording of a valuation allowance for state tax attributes that the Company does not expect to utilize prior to expiration.

Current wording

Three Months Ended March 31, 2024 and 2023–For the three months ended March 31, 2024 and 2023, we recognized income tax expense of $0.2 million and $3.2 million, respectively, representing effective tax rates of 1.9% and 25.4%, respectively. The differences from the federal statutory tax rate to the effective tax rates for the three months ended March 31, 2024, were primarily related to state income taxes and the recording of a valuation allowance for federal tax attributes that the Company does not expect to utilize prior to expiration. The differences from our federal statutory tax rate to the effective tax rate for the three months ended March 31, 2023, were primarily related to state income taxes, RSU vestings, and the recording of a valuation allowance for state tax attributes that the Company does not expect to utilize prior to expiration.

Previous wording

Six Months Ended December 31, 2023 and 2022–For the six months ended December 31, 2023 and 2022, we recognized income tax benefit of $1.3 million and $4.2 million, respectively, representing effective tax rates of 10.1% and 17.4%, respectively. The differences from the federal statutory tax rate to the effective tax rate for the six months ended December 31, 2023, were primarily related to state income taxes and the recording of a valuation allowance for federal tax attributes that the Company does not expect to utilize prior to expiration. The differences from the federal statutory tax rate to the effective tax rate for the six months ended December 31, 2022, were primarily related to state income taxes, RSU vestings, and the recording of a valuation allowance for state tax attributes that the Company does not expect to utilize prior to expiration.

Current wording

Nine Months Ended March 31, 2024 and 2023–For the nine months ended March 31, 2024 and 2023, we recognized income tax benefit of $1.1 million and $1.1 million, respectively, representing effective tax rates of 26.9% and 8.9%, respectively. The differences from the federal statutory tax rate to the effective tax rate for the nine months ended March 31, 2024, were primarily related to state income taxes and the recording of a valuation allowance for federal tax attributes that the Company does not expect to utilize prior to expiration. The differences from the federal statutory tax rate to the effective tax rate for the nine months ended March 31, 2023, were primarily related to state income taxes, RSU vestings, and the recording of a valuation allowance for state tax attributes that the Company does not expect to utilize prior to expiration.

Previous wording

(2) Operating expenses in the Corp & Elims division primarily include $12.2 million in salaries and benefits for certain general, administrative, and IT related departments and $4.6 million in professional services fees.

Current wording

(2) Operating expenses in the Corp & Elims division primarily include $12.6 million in salaries and benefits for certain general, administrative, and IT related departments and $4.6 million in professional services fees.

Previous wording

Three Months Ended December 31, 2023 and 2022–Revenue from Senior was $247.5 million for the three months ended December 31, 2023, a $23.7 million, or 11%, increase compared to revenue of $223.8 million for the three months ended December 31, 2022. The increase was primarily due to a $26.8 million, or 14%, increase in commission revenue offset by a $2.6 million decrease in production bonus revenue.

Current wording

Three Months Ended March 31, 2024 and 2023–Revenue from Senior was $204.3 million for the three months ended March 31, 2024, a $19.1 million, or 10%, increase compared to revenue of $185.2 million for the three months ended March 31, 2023. The increase was primarily due to a $29.0 million, or 18%, increase in commission revenue offset by a $9.0 million decrease in production bonus revenue.

Previous wording

Revenue from Healthcare Services was $111.7 million for the three months ended December 31, 2023, a $56.2 million, or 101%, increase compared to revenue of $55.5 million for the three months ended December 31, 2022, primarily due to a $57.2 million increase in SelectRx pharmacy revenue.

Current wording

Revenue from Healthcare Services was $124.2 million for the three months ended March 31, 2024, a $53.5 million, or 76%, increase compared to revenue of $70.7 million for the three months ended March 31, 2023, primarily due to a $53.3 million increase in SelectRx pharmacy revenue.

Previous wording

Revenue from Life was $37.4 million for the three months ended December 31, 2023, a $3.4 million, or 10%, increase compared to revenue of $34.0 million for the three months ended December 31, 2022, primarily due to a $3.1 million increase in commission revenue.

Current wording

Revenue from Life was $40.7 million for the three months ended March 31, 2024, a $3.7 million, or 10%, increase compared to revenue of $37.0 million for the three months ended March 31, 2023, primarily due to a $3.8 million increase in commission revenue.

Previous wording

Six Months Ended December 31, 2023 and 2022–Revenue from Senior was $337.4 million for the six months ended December 31, 2023, a $36.1 million, or 12%, increase compared to revenue of $301.3 million for the six months ended December 31, 2022. The increase was due to a $35.4 million, or 14%, increase in commission revenue and a $2.2 million increase in production bonus revenue.

Current wording

Nine Months Ended March 31, 2024 and 2023–Revenue from Senior was $541.7 million for the nine months ended March 31, 2024, a $55.2 million, or 11%, increase compared to revenue of $486.5 million for the nine months ended March 31, 2023. The increase was due to a $64.4 million, or 15%, increase in commission revenue offset by a $6.8 million decrease in production bonus revenue.

Previous wording

Revenue from Healthcare Services was $209.1 million for the six months ended December 31, 2023, a $110.5 million, or 112%, increase compared to revenue of $98.5 million for the six months ended December 31, 2022, primarily due to a $110.9 million increase in SelectRx pharmacy revenue.

Current wording

Revenue from Healthcare Services was $333.3 million for the nine months ended March 31, 2024, a $164.0 million, or 97%, increase compared to revenue of $169.3 million for the nine months ended March 31, 2023, primarily due to a $164.2 million increase in SelectRx pharmacy revenue.

Previous wording

Adjusted EBITDA from Healthcare Services was $3.0 million for the three months ended December 31, 2023, a $12.3 million increase compared to Adjusted EBITDA of $(9.3) million for the three months ended December 31, 2022. The increase in Adjusted EBITDA was due to a $56.2 million increase in revenue as discussed above, offset a $43.9 million increase in operating costs and expenses primarily as a result of a $40.2 million increase in medication costs and a $1.7 million increase in compensation costs in support of the growth of SelectRx.

Current wording

Adjusted EBITDA from Healthcare Services was $1.6 million for the three months ended March 31, 2024, a $5.0 million increase compared to Adjusted EBITDA of $(3.4) million for the three months ended March 31, 2023. The increase in Adjusted EBITDA was due to a $53.5 million increase in revenue as discussed above, offset a $48.5 million increase in operating costs and expenses primarily as a result of a $37.0 million increase in medication costs and a $7.9 million increase in compensation costs in support of the growth of SelectRx.