Financial Data and Key Metrics Changes - Revenue for the third quarter reached $8.5 million, representing a 90% year-over-year increase, with nine-month revenue totaling $25.8 million compared to $19.5 million for the full year of 2024 [4][14] - Adjusted EBITDA for the quarter was $1 million, up 49% year-over-year, while for the first nine months, adjusted EBITDA reached $3.8 million, or 167% of the full year 2024 total [14][15] - Pre-tax income for the quarter was $0.6 million, a 48% increase year-over-year, with a total of $2.1 million for the first nine months, or 2.4 times the full year 2024 [15][18] - Total operating expenses for the third quarter were $3.7 million, representing 55% of revenue, down from 68% in the same period last year [15][16] Business Line Data and Key Metrics Changes - The number of brokers, TPAs, and agencies grew to 849 partners, up 57% year-over-year, contributing to the revenue growth [4][6] - The number of billed-enrolled employees reached 25,248, an increase of 7,654 employees year-over-year [4] Market Data and Key Metrics Changes - The company is entering its peak enrollment period, with mixed timing patterns observed due to market uncertainty and rising healthcare costs [6][18] - Anticipated Q4 revenue growth is around 50% year-over-year, with full-year revenue growth expected to reach approximately 70% [18][19] Company Strategy and Development Direction - The company launched a large employer underwriting capability with its enhanced eDIBS platform, allowing brokers to generate fully bindable quotes for groups of 150 or more employees in as little as two weeks [5][6] - A new program offering a three-year rate hold is being tested, aimed at providing predictable pricing for employers [7][19] - The company is focusing on claims processing inefficiencies, with plans to co-develop a blockchain-enabled platform, HitChain, to improve claims workflows [8][9] Management's Comments on Operating Environment and Future Outlook - Management noted that recent market uncertainty has led to a shift in sales volume from Q4 into Q1 2026, but still expects healthy overall growth [6][18] - The company is optimistic about the reception of the three-year rate hold program and believes it will enhance client retention [7][19] - Management emphasized the importance of balancing profitability with reinvestment for long-term growth, given the company's current market share is less than 0.01% of the potential market [19] Other Important Information - The company will host the InsureTech Summit at Davos during the World Economic Forum Week in January 2026, aiming to elevate its visibility among insurers and investors [9][10] - The collaboration with AlphaTon Capital for the HitChain initiative is expected to maximize capital efficiency with minimal cash requirements from the company [17][51] Q&A Session Summary Question: Response to strong growth and large employer market - Management acknowledged strong growth but noted that trends in the large employer market are still developing as brokers get established [22][23] Question: Stickiness of enrolled employees - Management confirmed that the healthcare insurance product is inherently sticky, and the new three-year rate hold program is expected to enhance retention further [26] Question: Blockchain initiative and competition - Management stated that the company will be among the first to launch a large-scale blockchain solution in healthcare, addressing various friction points in the system [27][29] Question: Details on the three-year rate hold program - Management indicated that significant collaboration with financial institutions and underwriters was required to develop the program [36][39] Question: Claims processing customer base - Management clarified that the blockchain initiative will benefit all stakeholders in the healthcare ecosystem, including hospitals, patients, and employers [46][48]
Health In Tech Inc(HIT) - 2025 Q3 - Earnings Call Transcript