Ehealth, Inc. · NASDAQ:EHTH
Ehealth — Q1 2021 Earnings Presentation
20 slides from Ehealth's earnings presentation, Apr 29, 2021
Slide 1: Q1 2021 Financial Results Conference Call Slides
Q1 2021 Financial Results Conference Call Slides April 29, 2021
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the federal securities laws. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this
Slide 3: eHealth Q1 2021 Highlights
eHealth Q1 2021 Highlights Total acquisition costs per approved First quarter revenue Revenue of $134.2M grew 26% Medicare member declined 12% and adjusted EBITDA(2) compared to Q1 2020 with agent cost per approved significantly exceeded member down 24% compared to our expectations. Q1 2020 Enhancem
Slide 4: Q1 2021 Revenue
Q1 2021 Revenue Revenue Q1 revenue growth driven primarily by an increase in approved Medicare Advantage members of 65% in Q1 Revenue ($MM) 2021 compared to Q1 2020 $ 134.2 Positive impact of Medicare enrollment growth was 26% partially offset by a decline in Medicare Advantage $ 106.4 LTVs of 4% an
Slide 5: Q1 2021 Medicare Advantage Approved Members and New Paying Members
Q1 2021 Medicare Advantage Approved Members(1) and New Paying Members(2) Q1 2021 Medicare Medicare Advantage Approved Members Medicare Advantage New Paying Members Advantage approved members grew 65% YoY and Medicare Advantage new paying members grew by 63% YoY (1) Approved members consist of the nu
Slide 6: Our Enrollment Remains a Small Portion of Total Medicare Advantage Annual Opportunity
Our Enrollment Remains a Small Portion of Total Medicare Advantage Annual Opportunity eHealth’s 388k Estimated New to MA (Age-ins + (1) (2) Estimated Switchers Within MA Approved Medicare shifted from traditional Medicare) Advantage Members in FY2020 represented 5% 3.3m 4.0m of total estimated annua
Slide 7: Medicare Major Medical Online Application %
Medicare Major Medical Online Application%(1) Medicare Major Medical Online Application % Medicare Major Medical Online Application % Achieved online penetration for Q1 2021 of 35%, compared to 24% 35.2% for Q1 2020 44% 24.4% Fully unassisted online applications for Medicare major medical products g
Slide 8: Q1 2021 Net Income (Loss) and Adjusted EBITDA
Q1 2021 Net Income (Loss) and Adjusted EBITDA(1) Q1 2021 Net Loss reflects income tax provision of $0.3M compared to tax benefit of $2.0M in Q1 2020. Effective with the first quarter of 2021, we modified the calculation of adjusted EBITDA to exclude the amortization of capitalized software developme
Slide 9: Q1 2021 Medicare Segment Revenue and Profit
Q1 2021 Medicare Segment Revenue and Profit (1) Medicare Segment Medicare Segment Revenue Medicare Segment Profit Revenue grew 26% in Q1 2021 compared to Q1 2020 Medicare Segment Profit grew 6% in Q1 2021 compared to Q1 2020 (1) During the first quarter of 2021, we modified the calculation of segmen
Slide 10: Q1 2021 IFP Segment Revenue and Profit
Q1 2021 IFP Segment Revenue and Profit (1) IFP Segment Revenue IFP Segment Profit (1) During the first quarter of 2021, we modified the calculation of segment profit and adjusted EBITDA to exclude the amortization of capitalized software development cost. Amortization of capitalized software develop
Slide 11: TTM Medicare Segment Commissions Cash Collections
Trailing Twelve Months (“TTM”) Medicare Segment Commissions Cash Collections Q1 21 TTM Medicare Segment commissions TTM Medicare Segment Commissions Cash Collections cash collections ($MM) increased by 39% year-over-year Q1 21 TTM Medicare Segment commissions cash collections per MA equivalent membe
Slide 12: Medicare Advantage Unit Economics – Historical Trend
Medicare Advantage Unit Economics – Historical Trend (2) (3) Constrained LTV LTV / Marketing COA LTV / Adjusted Marketing COA (1) Adjusted Marketing COA was impacted by seasonally lower sponsorship revenue in the first quarter relative historically observed patterns in subsequent quarters (1) Constr
Slide 13: Medicare Advantage Plan Member Turnover Trend Since Q4 2018
Medicare Advantage Plan Member Turnover Trend Since Q4 2018 MA Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 (1) Approved Members 83,376 40,741 36,576 35,171 167,073 64,898 60,477 44,999 217,278 106,884 Estimated Beginning (Paying) Membership(2) 235,268 276,357 280,763 291,171 309,180
Slide 14: Medicare Advantage Plan Member Turnover Trend Since Q4 2018 (cont'd)
Medicare Advantage Plan Member Turnover Trend Since Q4 2018 (cont’d) (1) Approved members consist of the number of individuals on submitted applications that were approved by the relevant insurance carrier for the identified product during the period presented. Approved members may not pay for their
Slide 15: Key Areas of Operational Focus for Q2 2021
Key Areas of Operational Focus for Q2 2021 • Continue to increase effectiveness of our telesales organization as we begin to ramp up for AEP ─ Improve plan matching technology available to our predominately internal workforce ─ Enhance the agent onboarding and training process ─ Expand retention tea
Slide 16: 2021 Guidance
2021 Guidance(1) For the full year ending December 31, 2021, we have increased our adjusted EBITDA and segment profit estimates to account for the change in methodology for calculating these financial metrics. Effective with the first quarter of 2021, we modified the calculation of adjusted EBITDA t
Slide 17: 2021 Guidance (cont'd)
2021 Guidance (cont’d) (1) Guidance excludes the potential impact from the agreement with HIG Capital for a $225 million investment announced on January 29, 2021. (2) Adjusted EBITDA is calculated by excluding the impacts of interest income and expense, income tax expense (benefit), depreciation and
Slide 18: Appendix: Reconciliation of Adjusted Variable Marketing Cost per MA-Equivalent Approved Member
Appendix 1 RECONCILIATION OF ESTIMATED ADJUSTED VARIABLE MARKETING COST PER MA-EQUIVALENT APPROVED MEMBER Three Months Ended March 31, Fiscal Year Ended December 31, 2021 2020 2020 2019 2018 2017 2016 (1) Estimated variable marketing cost per MA-equivalent approved member (2) $ 353 $ 349 $ 384 $ 330
Slide 19: Appendix: Reconciliation of GAAP to Non-GAAP Financial Measures
Appendix 2 (1) RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In thousands, except per share amounts, unaudited) Three Months Ended March 31, 2021 2020 GAAP net income (loss) $ (800) $ 3,452 Stock-based compensation expense 11,402 8,714 Amortization of intangible assets 176 547 Restructuring
Slide 20: Appendix: Reconciliation of Non-GAAP Financial Measures to Guidance
Appendix 3 (1) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GUIDANCE (In millions, except per share amounts, unaudited) Year Ending December 31, 2021 Low High GAAP net income $ 42.0 $ 57.0 Stock-based compensation expense 39.0 37.0 Restructuring charges 2.1 2.1 Amortization of intangible assets