Membership Growth and Retention - For the three months ended March 31, 2024, total approved members grew by 1% to 98,259 compared to 97,576 in the same period of 2023, driven by a 10% increase in Medicare approved members[131]. - The company implemented a retention strategy that includes updating the member onboarding experience and launching a loyalty program aimed at improving member retention[126]. - The company is focused on diversifying revenue streams and enhancing enrollment quality and member retention as part of its fiscal 2024 growth strategy[124]. - The company observed improvements in constrained lifetime values (LTV) across all Medicare-related plans, indicating better retention and conversion rates[125]. - The number of Medicare Advantage approved members increased by 9% to 65,750, while Medicare Supplement approved members rose by 35% to 6,182[131]. Financial Performance - Total revenue for the three months ended March 31, 2024, increased by $19.2 million, or 26%, to $92.964 million compared to $73.723 million in the same period in 2023[149]. - Commission revenue rose by $12.9 million, or 19%, driven by a 10% increase in overall Medicare plan approved members[150]. - Revenue from the Medicare segment increased by $20.6 million, or 33%, to $82.4 million for the three months ended March 31, 2024, compared to $61.8 million in the same period in 2023[173]. - The Medicare segment profit improved to $8.3 million for the three months ended March 31, 2024, compared to a loss of $0.6 million in the same period in 2023[175]. - Revenue from the Employer and Individual segment decreased by $1.3 million, or 11%, to $10.6 million for the three months ended March 31, 2024, compared to $11.9 million in the same period in 2023[176]. Expenses and Costs - Customer care and enrollment expenses increased by $7.8 million, or 31%, primarily due to a $5.8 million rise in personnel costs[157]. - Total acquisition cost per MA-equivalent approved member increased by $89, or 12%, to $834 compared to $745 in the same period in 2023[143]. - CC&E cost per MA-equivalent approved member rose by $70, or 20%, to $419, reflecting higher costs associated with benefit advisors[144]. - Variable marketing cost per IFP-equivalent approved member increased by $18, or 45%, to $58, driven by a decline in approved members[144]. - Marketing and advertising expenses increased by $5.9 million, or 18%, primarily due to a $4.0 million rise in variable advertising costs[155]. Cash Flow and Liquidity - Operating cash flow for the trailing twelve months as of March 31, 2024, was $3.3 million, exceeding the target of break-even cash flow for this period[127]. - The company had cash, cash equivalents, and short-term marketable securities of $188.9 million as of March 31, 2024, with operating cash flow of $70.8 million generated during the three months ended March 31, 2024[178]. - Net cash provided by operating activities was $70.8 million for the three months ended March 31, 2024, compared to $60.8 million for the same period in 2023[188][193]. - Cash and cash equivalents increased to $175.0 million as of March 31, 2024, up from $115.7 million as of December 31, 2023[203]. - Total cash, cash equivalents, short-term marketable securities, and restricted cash reached $192.0 million as of March 31, 2024, compared to $124.7 million at the end of the previous year[203]. Debt and Obligations - The company entered into a $70.0 million secured term loan credit facility, with an interest rate of 13.10% as of March 31, 2024, and incurred interest expenses of $2.3 million for the three months ended March 31, 2024[184][185]. - As of March 31, 2024, short-term obligations were $8.5 million for leases and $4.3 million for service and licensing, while long-term obligations were $29.8 million for leases and $0.6 million for service and licensing[181]. - The company issued 2,250,000 shares of Series A convertible preferred stock for an aggregate purchase price of $225.0 million, receiving $214.0 million in net proceeds[182]. Risk and Compliance - The company is exposed to credit risk from contracts with carriers, but considers this risk to be remote[204]. - Legal proceedings may affect the company's operations and financial condition, particularly regarding compliance with regulations[211]. - The company has not engaged in any foreign currency hedging or derivative transactions to date, despite exposure to foreign currency exchange risk[205]. - The company has not experienced material impacts from foreign currency fluctuations historically, but acknowledges potential future risks[205]. Operational Enhancements - The company has begun piloting updated co-browsing technology to enhance interactions between advisors and beneficiaries, expected to improve enrollment quality and sales efficiency[126]. - The company plans to maintain its internal telesales benefit advisors year-round and expects to increase their utilization by expanding ancillary product offerings[201]. - The company plans to resume enrollment growth in its E&I segment in the fourth quarter after implementing operational enhancements[141]. Tax and Financial Reporting - The effective tax rate decreased to 7.3% for the three months ended March 31, 2024, compared to 15.4% for the same period in 2023, primarily due to fluctuations in stock-based compensation adjustments and non-deductible expenses[167]. - Management believes that disclosure controls and procedures are effective, providing reasonable assurance for timely and accurate reporting[207]. - There were no changes in internal control over financial reporting that materially affected the company during the three months ended March 31, 2024[208].

eHealth, Inc. (NASDAQ:EHTH) Q1 2024 Earnings Call Transcript May 7, 2024 8:30 AM ET Company Participants Eli Newbrun-Mintz - Senior Investor Relations Manager Fran Soistman - Chief Executive Officer John Stelben - Chief Financial Officer Conference Call Participants Operator Good morning, everyone, and welcome to eHealth, Inc. Conference Call to discuss the company's First Quarter 2024 Financial Results. At this time, all participants have been placed in listen only mode. The floor will open for your questi ...

Financial Performance - Q1 2024 total revenue reached $93.0 million, a 26% increase compared to $73.7 million in Q1 2023[8, 66] - Q1 2024 GAAP net loss improved to $17.0 million, a $2.9 million improvement year-over-year[5] - Q1 2024 adjusted EBITDA improved to $(1.7) million, a $11.0 million improvement compared to $(12.7) million in Q1 2023[5] - Operating cash flow for the trailing twelve months ended March 31, 2024, was $3.3 million, up from negative $13.2 million a year ago[11, 67, 86] Medicare Segment - Q1 2024 Medicare Advantage approved members increased 9% to 65,750 compared to 60,451 in Q1 2023[52] - Q1 '24 Medicare approved members increased 10% year-over-year[9] - Q1 '24 Medicare non-commission revenue was $11.6 million, with year-over-year growth of more than 100%[71] - Q1 2024 Medicare Advantage LTV increased 6% to $952 from $901 in Q1 2023[37] Amplify - Amplify annual gross margin target of 30%-35%[17] Guidance - The company reiterates its FY 2024 guidance, including total revenue of $450 million to $475 million, GAAP net loss of ($40) million to ($20) million, and adjusted EBITDA of ($5) million to $20 million[46]

EHealth (EHTH) came out with a quarterly loss of $0.79 per share versus the Zacks Consensus Estimate of a loss of $0.39. This compares to loss of $0.96 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -102.56%. A quarter ago, it was expected that this provider of internet-based heath insurance agency services would post earnings of $1.94 per share when it actually produced earnings of $1.61, delivering a surprise of -17.01%.Ove ...

Financial Performance - Q1 2024 total revenue reached $93.0 million, a 26% increase from $73.7 million in Q1 2023[4] - Q1 2024 GAAP net loss improved to $17.0 million, a $2.9 million reduction from a loss of $19.9 million in Q1 2023[4] - Adjusted EBITDA for Q1 2024 was $(1.7) million, an improvement of $11.0 million from $(12.7) million in Q1 2023[4] - Operating cash flow for Q1 2024 was $70.8 million, a 16% increase from $60.8 million in Q1 2023[4] - Total operating costs and expenses rose by 15% to $110,875,000, compared to $96,617,000 in the prior year[20] - Net loss for the quarter was $16,984,000, a 15% improvement from a net loss of $19,878,000 in the same quarter of 2023[23] - Adjusted EBITDA improved significantly to $(1,652,000), an 87% increase from $(12,655,000) in the prior year[20] - Full year 2024 total revenue guidance is set between $450 million and $475 million[11] - GAAP net loss for 2024 is expected to range from $(40) million to $(20) million[11] - Adjusted EBITDA for 2024 is projected to be between $(5) million and $20 million[11] - Operating cash flow for 2024 is anticipated to be between $(15) million and $(5) million[11] Membership Growth - Medicare Advantage approved members grew by 9% to 65,750 compared to 60,451 in Q1 2023[4] - Total approved members increased by 1% to 98,259 as of March 31, 2024, compared to 97,576 in 2023[35] - Medicare Advantage members rose by 9% to 65,750, while Medicare Supplement members increased by 35% to 6,182[35] - Total Medicare members decreased by 1% to 874,790, with Medicare Part D members declining by 12% to 187,534[37] - Total estimated membership decreased by 5% to 1,180,026 as of March 31, 2024[37] Revenue Segmentation - Medicare segment revenue increased by 33% to $82,388,000, up from $61,834,000, while the Employer and Individual segment revenue decreased by 11% to $10,576,000 from $11,889,000[28] - Commission revenue increased by 19% to $80,927,000, compared to $68,003,000 in the previous year[32] - Medicare Advantage commission revenue rose by 15% to $61,996,000, while Medicare Part D saw a substantial increase of 246% to $2,685,000[32] Cost and Expenses - Customer care and enrollment cost per Medicare Advantage-equivalent approved member increased by 20% to $419[35] - Total acquisition cost per Medicare Advantage-equivalent approved member rose by 12% to $834[35] - The company has modified its expense allocation methodology starting Q1 2024, resulting in a reclassification of certain expenses into general and administrative costs[57] Cash and Securities - Cash, cash equivalents, and marketable securities totaled $188.9 million as of March 31, 2024[4] - Cash, cash equivalents, and restricted cash at the end of the period totaled $178,076,000, down from $183,872,000 at the beginning of the period[23] Shareholder Information - The weighted-average number of shares used in calculating net loss per share increased by 5% to 28,912,000 from 27,648,000[20] - GAAP net loss attributable to common stockholders for Q1 2024 was $(27,711) thousand, compared to $(28,048) thousand in Q1 2023[41] - Full year 2024 guidance for GAAP net loss attributable to common stockholders is projected between $(85.0) million and $(65.0) million[43] Marketing and Acquisition - Marketing initiatives are crucial for revenue growth, with customer care and enrollment (CC&E) expenses and variable marketing costs being key metrics for member acquisition[52] - The company incurs CC&E expenses to assist applicants during the enrollment process, which are factored into member acquisition metrics[52] - The derived metrics for member acquisition include MA-equivalent and IFP-equivalent approved members, which are calculated based on specific weightings[52] Membership Estimation - The company estimates membership based on commission payments received, with a potential lag of up to a few months between approval and payment[53] - The estimated number of Medicare Advantage approved members includes a weighting system, with Medicare Part D members counted as 25% of a Medicare Advantage member[52] - The company does not update historical membership estimates but reflects updated information in current period estimates, which may lead to variances[53] - The company does not report total membership numbers as of a specific date, relying instead on estimates based on commission payments[53] - The company has experienced historical underestimations of membership due to delayed commission payments from health insurance carriers[53]

AUSTIN, Texas, April 30, 2024 /PRNewswire/ -- eHealth, Inc. (Nasdaq: EHTH), a leading private online health insurance marketplace, today announced that Fran Soistman, Chief Executive Officer, will present at the 2024 RBC Capital Markets Global Healthcare Conference on Tuesday, May 14th, 2024 at 2:05 p.m. E.T. Interested investors can access the live audio webcast of the presentation on eHealth's Investor Relations website at https://ir.ehealthinsurance.com. About eHealth, Inc. We're Matchmakers. For over 25 ...

Provides dial-in details for the first quarter 2024 earnings call, to be held on May 7 at 8:30 a.m. Eastern Time AUSTIN, Texas, April 18, 2024 /PRNewswire/ -- eHealth, Inc. (Nasdaq: EHTH), a leading private online health insurance marketplace, today reiterated its previously issued fiscal year 2024 guidance. Following the April 4th release of the final Policy and Technical Changes to the Medicare Advantage Program for Contract Year 2025, eHealth committed to providing clarity with respect to the rule and it ...

AUSTIN, Texas, April 5, 2024 /PRNewswire/ -- eHealth, Inc. (Nasdaq: EHTH), a leading private online health insurance marketplace, commented on the final Contract Year 2025 Policy and Technical Changes to the Medicare Advantage Program, released by the Centers for Medicare & Medicaid Services (CMS) on April 4, 2024. The company is currently in the process of reviewing the rule. As there continue to be areas of ambiguity, eHealth will also be communicating with CMS and the company's carrier partners to obtain ...

Program includes year-round support services, access to a dedicated advocate team, and special offers from eHealth partners AUSTIN, Texas, April 4, 2024 /PRNewswire/ -- As a leading private online health insurance marketplace, eHealth, Inc. (Nasdaq: EHTH) (eHealth.com) believes in building long-term relationships with customers and adding value to their lives beyond the initial point of sale. That's why the company today announced the launch of its new eHealth ePerks rewards program. The company has already ...

Survey of more than 2,100 Medicare Advantage enrollees finds working with a licensed agent corresponds to higher satisfaction and confidence 97% of enrollees want the government to defend access to Medicare Advantage plans AUSTIN, Texas, March 13, 2024 /PRNewswire/ -- In recent years, government regulators have engaged in laudable efforts to weed out bad actors from the Medicare Advantage market. However, recent and proposed rules that risk making it harder for beneficiaries to get effective help from legit ...