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Health In Tech Inc(HIT) - 2025 Q1 - Earnings Call Transcript
HITHealth In Tech Inc(HIT)2025-04-14 21:00

Financial Data and Key Metrics Changes - The company achieved 8millioninrevenue,reflectinga568 million in revenue, reflecting a 56% year-over-year growth [7][21] - Generated 0.7 million in income before income tax, a 257% increase compared to the same period last year [7][20] - Gross profit reached 5.3million,translatingtoagrossmarginof66.85.3 million, translating to a gross margin of 66.8% [23] - Adjusted EBITDA more than doubled to 1.2 million compared to 0.5millioninQ1lastyear[27]BusinessLineDataandKeyMetricsChanges−Revenuefromtheunderwritingmodelgrew31.80.5 million in Q1 last year [27] Business Line Data and Key Metrics Changes - Revenue from the underwriting model grew 31.8% to 2.3 million [21] - Program fee revenue surged 69.5% to 5.7million,indicatingashifttowardshigh−qualitycoverageandenhancedserviceofferings[22]−Thenumberofenrolledemployeesontheplatformsroseto24,307,upfrom20,802inQ12024[7][21]MarketDataandKeyMetricsChanges−Thenumberofactivebrokersontheplatformreached459,morethandoublingfrom192inthesameperiodlastyear[12]−Thecompanyisontrackforafull−scalerolloutofitsAI−backedunderwritingcapabilitiesinQ3,targetingmid−tolarge−sizedbusinesses[10]CompanyStrategyandDevelopmentDirection−Thecompanyisfocusedonexpandingitsmarketreachthroughstrategiccollaborations,suchaswithDialCarefortelehealthservices[11]−Apivottoachanneldistributionmodelisexpectedtoenhancescalabilityandefficiencywithoutacorrespondingriseinmarketingcosts[23]−ThegoalisfortheeDIPSplatformtobecomethego−todestinationforhealthcareinsurance,providingfastandcustomizablesolutions[16]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementacknowledgedthecurrentmicroeconomicchallengesandemphasizedtheneedtohelpemployersmanagehealthcarecosts[15]−Thereisconfidenceinmaintainingstrongsalesmomentumintothesecondquarter,withexpectationsforcontinuedtop−linegrowthandsolidbottom−lineresults[29]OtherImportantInformation−ThecompanywelcomedSanjayShresthatoitsboardofdirectors,bringingexperienceinscalingplatformbusinessesandcapitalmarkets[14]−Thebalancesheetremainssolidwith5.7 million, indicating a shift towards high-quality coverage and enhanced service offerings [22] - The number of enrolled employees on the platforms rose to 24,307, up from 20,802 in Q1 2024 [7][21] Market Data and Key Metrics Changes - The number of active brokers on the platform reached 459, more than doubling from 192 in the same period last year [12] - The company is on track for a full-scale rollout of its AI-backed underwriting capabilities in Q3, targeting mid- to large-sized businesses [10] Company Strategy and Development Direction - The company is focused on expanding its market reach through strategic collaborations, such as with DialCare for telehealth services [11] - A pivot to a channel distribution model is expected to enhance scalability and efficiency without a corresponding rise in marketing costs [23] - The goal is for the eDIPS platform to become the go-to destination for healthcare insurance, providing fast and customizable solutions [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the current microeconomic challenges and emphasized the need to help employers manage healthcare costs [15] - There is confidence in maintaining strong sales momentum into the second quarter, with expectations for continued top-line growth and solid bottom-line results [29] Other Important Information - The company welcomed Sanjay Shrestha to its board of directors, bringing experience in scaling platform businesses and capital markets [14] - The balance sheet remains solid with 7.6 million in cash and cash equivalents at quarter-end [28] Q&A Session Summary Question: Should we think about the growth in enrolled employees in terms of seasonality? - Management noted that January 1 is typically the best month for business due to many groups renewing their health insurance [33] Question: Can you provide more color on market segmentation for larger employers? - The expansion beyond 150 enrolled employees is aimed at improving convenience and efficiency in communication between brokers and underwriters [35][36] Question: What drives the difference between underwriting and program fee revenues? - The company earns revenue as a program manager and underwriter, with employers increasingly focused on program fees for enhanced benefits [42][44] Question: What is the trend in the self-funded market? - Most larger groups are already self-funded, taking advantage of proprietary programs for flexibility [52] Question: Will the AI-powered underwriting platform change pricing? - The new system will improve efficiency without changing pricing, streamlining the data submission process for underwriters [61][62] Question: What does the collaboration with DialCare entail? - The partnership aims to provide on-demand access to licensed healthcare providers, enhancing the company's service offerings [72]