eHealth(EHTH) - 2024 Q1 - Quarterly Results

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]