Why did SLQT's EPS outperform forecasts in 2024?

SelectQuote's EPS outperformed forecasts in 2024 due to several key factors:

1. **Revenue Growth**: SelectQuote experienced significant revenue growth, with a 26% increase in the third quarter of 2024 compared to the previous year. This growth was driven by strong performance in their Senior Medicare Advantage distribution and Healthcare Services business, particularly in SelectRx. The full-year revenue expanded by 32% to $1.3 billion, indicating a robust business expansion.
2. **SelectRx Membership Growth**: The SelectRx membership grew by 68% year-over-year, ending the year with 82,000 members. This substantial increase in membership contributed to the growth in EPS as it directly impacts the revenue generation capacity of the company.
3. **Operational Efficiency**: SelectQuote's focus on operational efficiency and strategic initiatives, such as a successful securitization of receivables, have improved financial health and enhanced capital flexibility. These efforts likely led to better cost management and profitability, resulting in higher EPS.
4. **Market Position**: SelectQuote's strong market position in the Senior Medicare Advantage distribution and Healthcare Services segments has allowed them to capitalize on market opportunities effectively. This strategic positioning has enabled the company to outperform internal expectations for the 10th consecutive quarter.

In conclusion, SelectQuote's EPS outperformance in 2024 can be attributed to strong revenue growth, significant membership increases, operational efficiency, and a solid market position. These factors combined to exceed EPS forecasts, reflecting the company's successful strategic initiatives and market execution.