Core Insights - eHealth, Inc. reported strong performance during the Annual Enrollment Period (AEP), driven by significant changes in Medicare Advantage and Part D plan offerings, leading to increased demand for its services [2][3] - The company has revised its fiscal year 2024 guidance, indicating improved revenue and adjusted EBITDA expectations compared to previous estimates [5][6] AEP Performance Highlights - eHealth experienced strong year-over-year growth in submitted Medicare applications, particularly in direct marketing channels [4] - The company achieved an all-time high in AEP submitted application volume in the online unassisted category [4] - Telephonic and online conversion rates exceeded expectations, showing meaningful year-over-year improvement [4] - The LTV-to-CAC ratio improved in the Medicare business, indicating better customer acquisition efficiency [4] - A new comprehensive member retention program successfully encouraged consumers to return to the eHealth platform for coverage reviews and healthcare plan shopping [4] Updated Financial Guidance - Total revenue for fiscal year 2024 is now expected to be between $500 million and $520 million, up from the previous range of $470 million to $495 million [6] - GAAP net income (loss) is projected to range from $(12 million) to $3 million, an improvement from the prior range of $(36.5 million) to $(22 million) [6] - Adjusted EBITDA is expected to be between $40 million and $55 million, significantly higher than the previous range of $7.5 million to $25 million [6] - The updated guidance includes anticipated positive net adjustment revenue of $14 million to $20 million [7] - Operating cash flow is expected to range from $(15 million) to $(5 million), reflecting increased investment in profitable Medicare enrollment growth [7] Management Commentary - The CEO emphasized the company's successful transformation initiatives and AEP preparedness, which contributed to strong consumer demand and enrollment growth [2][3] - The CFO highlighted that the mid-point of the updated guidance suggests substantial margin expansion and attractive cash ROI from the AEP cohort [8]

Core Insights - The average premium for Medicare Part D drug plans has increased by 17% compared to the previous year during the first half of Medicare's Annual Enrollment Period [1] - A significant majority of Medicare beneficiaries express confidence in the future sustainability of Medicare following the presidential election, with 64% feeling more assured [2] - Beneficiaries' top priorities for the incoming administration include lowering drug costs, reducing out-of-pocket expenses, and strengthening Medicare Advantage [2] Enrollment Trends - 79% of Medicare Advantage and Medicare Part D plan enrollees report changes in costs or benefits under their current plans [3] - 88% of beneficiaries have started reviewing their coverage options, with 63% indicating they will enroll in a new Medicare plan for 2025 [3] - 87% of beneficiaries feel more confident in selecting a Medicare plan when assisted by a licensed health insurance agent [3] Research Methodology - The report is based on an analysis of tens of thousands of Medicare plans selected through eHealth from October 15 to November 8, 2024 [4] - Survey findings are derived from a poll of Medicare beneficiaries conducted by a third-party vendor [4]

eHealth, Inc.’s (EHTH) shares lost 6.1% since it reported third-quarter results on Nov. 6, 2024. The quarterly results were hurt by lower commissions and other revenues. However, lower expenses and growth in Medicare application volume across agency and carrier-dedicated platforms partially offset the negatives.EHTH incurred a third-quarter 2024 adjusted loss of $1.86 per share, wider than the Zacks Consensus Estimate of a loss of $1.13 per share and the prior-year quarter’s loss of $1.54 per share. Revenue ...

Core Insights - eHealth, Inc. has been awarded the 2024 Silver Healthcare Marketing Impact Award for its innovative marketing campaign targeting Medicare beneficiaries [1][2] - The campaign emphasizes transparency and consumer empowerment, showcasing real beneficiaries using eHealth's services to compare Medicare plans [3][4] Company Overview - eHealth operates as a leading online private health insurance marketplace, providing access to over 180 health insurers [4] - The company has been in operation for over 25 years, helping millions of Americans find affordable healthcare coverage [4] Marketing Strategy - The rebranding initiative, developed with Shinebox, focuses on real-life testimonials from beneficiaries in unscripted advertisements [3] - The campaign aims to shift the industry narrative from fear-based marketing to a customer-centric approach, enhancing brand awareness and reducing acquisition costs [4]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-33071 _____________________________________________ EHEALTH, INC. (Exact name of registrant as specified in its charter) _____________ ...

Financial Data and Key Metrics Changes - Third quarter revenue excluding net adjustment revenue was $57.2 million, a 9% year-over-year increase driven primarily by strong Medicare enrollments [44] - Including tail revenue, third quarter revenue was $58.4 million, reflecting a 10% decrease year-over-year [45] - Adjusted EBITDA excluding tail revenue was negative $36 million, an improvement of $4.3 million compared to Q3 a year ago [57] Business Line Data and Key Metrics Changes - Medicare segment revenue excluding tail revenue grew 13% year-over-year, while including tail revenue, it generated $53.2 million compared to $55.5 million in Q3 of 2023 [45] - Medicare Advantage submissions grew 26%, while Medicare supplement submitted applications grew 5% year-over-year [50] - Total acquisition costs per approved Medicare member improved 16% year-over-year [51] Market Data and Key Metrics Changes - The company experienced a 22% increase in total Medicare submitted applications, including Med Supp and prescription drug plans [35] - The Medicare supplement market is expected to gain greater adoption in areas where carriers have scaled back their MA benefits [36] Company Strategy and Development Direction - The company is focused on enhancing its capital structure and unlocking shareholder value while preparing for the annual enrollment period (AEP) [83] - A rebranding strategy and integrated marketing campaign titled "Your Medicare Matchmaker" were launched to improve customer engagement [17] - The company is diversifying its offerings by introducing a dedicated Medicare supplement sales team and expanding its carrier partnerships [38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to sustain momentum through the end of the year and into 2025, emphasizing a focus on achieving a successful AEP [82] - The company is well-positioned to take market share in an industry with decreasing competitive capacity, driven by a strong pipeline of appointments for new and existing members [16] Other Important Information - The company achieved HITRUST Certification, enhancing its credibility with carrier partners [32] - The company ended the quarter with $117.8 million in cash and cash equivalents, down from $160.6 million at the end of Q3 2023 [59] Q&A Session Summary Question: Can you quantify the larger pipeline early in the AEP and your ability to convert demand? - Management noted that the pipeline was significantly larger than last year due to proactive outreach efforts targeting beneficiaries affected by plan withdrawals and service area reductions [65][66] Question: How are advertising changes impacting the AEP? - Management indicated that political advertising did not hinder their messaging, and all channels are performing above expectations, leading to lower costs and higher conversion rates [70][73] Question: What is the outlook for tail revenues? - Management expressed confidence in the recent changes made to tail revenue constraints, indicating that they chose a conservative approach and have seen positive tail adjustments historically [76][78]

EHealth (EHTH) came out with a quarterly loss of $1.86 per share versus the Zacks Consensus Estimate of a loss of $1.13. This compares to loss of $1.54 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -64.60%. A quarter ago, it was expected that this provider of internet-based heath insurance agency services would post a loss of $0.71 per share when it actually produced a loss of $1.09, delivering a surprise of -53.52%.Over the ...

Medicare Submissions and Membership - Q3 2024 Medicare submissions grew 22% year-over-year, with Medicare Advantage submissions increasing by 26%[3] - Total Medicare approved members increased by 6% year-over-year, driven by a 14% increase in Medicare Advantage approved members[3] - Total approved members as of September 30, 2024, were 58,266, a slight decrease from 58,467 in 2023, with Medicare members increasing by 6% to 42,871[27] - Medicare Advantage approved members increased to 143,529, a 9% growth from 131,117 in 2023[30] - Total Medicare members decreased by 2% to 1,159,422 in 2024 from 1,184,015 in 2023[31] - Estimated total Medicare membership for 2024 is 873,426, reflecting a 1% increase from 868,333 in 2023[31] Financial Performance - Q3 2024 total revenue was $58.4 million, a decrease of 10% from $64.7 million in Q3 2023, primarily due to lower positive net adjustment revenue[3] - Positive net adjustment revenue for Q3 2024 was $1.2 million, down from $12.2 million in Q3 2023[3] - Non-GAAP total revenue excluding net adjustment revenue increased by 9% year-over-year[3] - Q3 2024 GAAP net loss was $42.5 million, an increase of 15% compared to a net loss of $37.0 million in Q3 2023[3] - Adjusted EBITDA for Q3 2024 was $(34.8) million, compared to $(28.1) million in Q3 2023; adjusted EBITDA excluding net adjustment revenue improved by $4.3 million year-over-year[3] - Full year 2024 total revenue guidance is expected to be between $470.0 million and $495.0 million[5] - GAAP net loss for the full year 2024 is expected to be in the range of $(36.5) million to $(22.0) million[5] - Non-GAAP total revenue excluding net adjustment revenue for Q3 2024 was $57,211, a 9% increase from $52,505 in Q3 2023[37] - GAAP total revenue for Q3 2024 was $58,409, down 10% from $64,718 in Q3 2023[37] - Non-GAAP Medicare segment revenue for Q3 2024 was $52,131, a 13% increase from $46,232 in Q3 2023[38] - GAAP net loss for Q3 2024 was $42,473, compared to a net loss of $37,025 in Q3 2023, representing a 15% increase in losses[36] - Adjusted EBITDA for Q3 2024 was $(36,030), an improvement of 11% from $(40,310) in Q3 2023[36] Revenue Breakdown - Commission revenue decreased by 16% to $48,222 in Q3 2024 from $57,239 in Q3 2023, while other revenue increased by 36% to $10,187[16] - Medicare segment revenue for Q3 2024 was $53,221, a decrease of 4% from $55,523 in Q3 2023, while year-to-date revenue increased by 13% to $194,857 from $172,787[23] - Employer and Individual segment revenue dropped 44% to $5,188 in Q3 2024 from $9,195 in Q3 2023, with a year-to-date decline of 31% to $22,372 from $32,422[23] - The total commission revenue for Q3 2024 was $48,222, a 16% decrease from $57,239 in Q3 2023, while year-to-date commission revenue remained stable at $185,996 compared to $185,428[25] Operating Costs and Expenses - Total operating costs and expenses decreased by 2% to $101,608 in Q3 2024 from $104,114 in Q3 2023[16] - Marketing and advertising expenses increased by 2% to $29,665 in Q3 2024, while general and administrative expenses decreased by 12% to $20,297[16] - Non-GAAP operating costs and expenses for the nine months ended September 30, 2024, were $281,764, compared to $275,910 in 2023[33] - The company expects to incur stock-based compensation expenses of approximately $20.0 million for the full year 2024[41] Cash and Liquidity - Cash, cash equivalents, and marketable securities totaled $117.8 million as of September 30, 2024[3] - Cash, cash equivalents, and restricted cash at the end of the period were $67,122, down from $155,208 at the end of Q3 2023[18] - Net cash used in operating activities was $(29,283) for Q3 2024, compared to $(24,681) in Q3 2023[18] Segment Losses - The Medicare segment reported a segment loss of $17,933 in Q3 2024, compared to a loss of $15,331 in Q3 2023, reflecting a 17% increase in losses[23] - E&I segment profit (loss) for the three months ended September 30, 2024, was $(799) thousand, a decline of $(5,609) thousand or 117% from a profit of $4,810 thousand in 2023[40] - Medicare segment loss excluding net adjustment revenue improved to $(19,023) thousand, a decrease of $5,599 thousand or 23% from $(24,622) thousand in 2023[40] Methodology Changes - Starting Q1 2024, the company modified its expense allocation methodology, no longer allocating facilities-related expenses, which are now reported under "General and administrative"[61] - The reclassification of expenses from marketing, customer care, and technology to general and administrative had no impact on total operating costs, loss from operations, or net loss per share[61] Importance of Non-GAAP Measures - The company emphasizes the importance of non-GAAP financial measures for assessing its operating performance and trends[52] - The company estimates membership for Medicare-related, individual and family, and ancillary health insurance plans based on commission payments received, adjusting for historical cancellation rates[59] - For small business health insurance plans, membership numbers are updated based on notifications from groups or carriers, but cancellations are often communicated directly to carriers without informing the company[60]

Financial Results - eHealth, Inc. announced its financial results for the third quarter ended September 30, 2024 [1] - A webcast and conference call regarding the financial results will be held on November 6, 2024, at 8:30 a.m. Eastern Time [1] Company Overview - eHealth has been operating for over 25 years, assisting millions of Americans in finding affordable healthcare coverage [2] - The company is a leading independent licensed insurance agency, providing access to over 180 health insurers, including both national and regional companies [2]

Core Insights - The Affordable Care Act (ACA) has been fully implemented for ten years, and a recent eHealth report reveals a significant divide in perceptions of its success between enrollees who receive subsidies and those who do not [1][2] Group 1: Subsidy Impact - 66% of enrollees receiving federal subsidies consider the ACA a success, while only 34% of unsubsidized enrollees share this view [2] - Among those receiving subsidies, 81% find their premiums affordable, compared to just 46% of those without subsidies [2] Group 2: Voter Concerns - Healthcare is a major concern for ACA enrollees in the upcoming election, with 67% of likely voters identifying it as a top-three voting issue [2] - 56% of enrollees express a desire for reduced premiums and out-of-pocket costs [2] Group 3: Satisfaction and Opinions - Overall, 68% of ACA plan enrollees report satisfaction with their health insurance plans [3] - A notable 29% of respondents believe that individuals at higher risk should pay more for coverage, with 76% advocating for higher costs for heavy drinkers and 73% for smokers [3] Group 4: Enrollment Period - The ACA's annual open enrollment period is set to begin on November 1 and will continue through January 15, 2025 [4]