Ehealth, Inc. · NASDAQ:EHTH
Ehealth — Q1 2020 Earnings Presentation
17 slides from Ehealth's earnings presentation, Apr 23, 2020
Slide 1: Q1 2020 Financial Results Conference Call Slides
Q1 2020 Financial Results Conference Call Slides April 23, 2020
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: COVID-19 Response
COVID-19 Response Working remotely. Shifted No impact to operations. Average agent productivity entire U.S. workforce to a Major undertaking in Q1 increased year over remote model, including all of accomplished seamlessly year customer care agents in days Our mission is more critical than ever. eHea
Slide 4: eHealth Q1 2020 Highlights
eHealth Q1 2020 Highlights Q1 2020 revenue grew 55% compared to Q1 2019, exceeding company’s expectations Medicare segment revenue grew 75% year-over-year, with approved members increasing by 46% year-over-year Medicare segment profit grew 103% year-over-year 24% of Medicare major medical applicatio
Slide 5: Q1 2020 Revenue
Q1 2020 Revenue Revenue Continue to achieve rapid growth in new Medicare enrollments as a result of diversified portfolio approach to Revenue ($MM) demand generation strategy and effective demand conversion through our omni-channel consumer $ 106.4 engagement platform 55% Direct-to-consumer channels
Slide 6: Net Income (Loss) and Adj. EBITDA
Q1 2020 Net Income (Loss) and Adj. EBITDA(1) Net Income (Loss) Adjusted EBITDA Net Income (Loss) ($MM) Adjusted EBITDA ($MM) $ 3.5 $ 11.1 30% $ 8.6 ($ 5.2) Q1-FY19 Q1-FY20 Q1-FY19 Q1-FY20 Exceeded expectations due to significant growth in Medicare enrollments (1) Adjusted EBITDA is calculated by add
Slide 7: Medicare Segment Revenue and Profit
Q1 2020 Medicare Segment Revenue and Profit Medicare Segment Revenue Medicare Segment Profit Medicare Segment Revenue ($MM) Medicare Segment Profit ($MM) $ 22.0 $ 96.2 75% 103% $ 54.9 $ 10.8 Q1-FY19 Q1-FY20 Q1-FY19 Q1-FY20 Our estimated number of revenue generating Medicare members was approximately
Slide 8: Medicare Approved Members and New Paying Members
Q1 2020 Medicare Approved Members(1) and New Paying Members(2) Medicare Approved Members Medicare New Paying Members Medicare Approved Members (000s) Medicare New Paying Members (000s) 85 162 46% 61% 58 100 Q1-FY19 Q1-FY20 Q1-FY19 Q1-FY20 Medicare Advantage enrollment growth continues to significant
Slide 9: Medicare Major Medical Online Application %
Q1 2020 Medicare Major Medical Online Application%(1) Medicare Major Medical Online Application % Medicare Major Medical Online Application % 24% On track to achieve target of 12% 34% online penetration for the full year 2020 Q1-FY19 Q1-FY20 (1) Major Medicare plans include Medicare Advantage and Me
Slide 10: IFP Segment Revenue and Profit
Q1 2020 IFP Segment Revenue and Profit IFP Segment Revenue IFP Segment Profit Individual, Family and Small Business Segment Individual, Family and Small Business Segment Revenue ($MM) Profit ($MM) $ 13.9 $ 6.0 $ 10.3 -26% -57% $ 2.6 Q1-FY19 Q1-FY20 Q1-FY19 Q1-FY20 9
Slide 11: Medicare Advantage Plan Revenue Recognition and Cash Collections
Medicare Advantage Plan Revenue Recognition and Cash Collections • At time of carrier • Cash collected for new Step 1 enrollment approval using Step 2 enrollments and for constrained lifetime value renewals Revenue estimates Cash Recognized • We take an appropriately Collected conservative approach
Slide 12: An Appropriately Conservative Approach
An Appropriately Conservative Approach Cash Flows Validate LTV Models and Processes National Accounting/Financial Experts Validate Revenue Recognition Processes For Medicare Advantage: Analytical and statistical models for determining • 96% of monthly customer cohorts(1) have cash LTVs and constrain
Slide 13: Medicare Advantage Plan Member Turnover Trend Since Q4 2018
Medicare Advantage Plan Member Turnover Trend Since Q4 2018 Q42018 Q12019 Q22019 Q32019 Q42019 Q12020 (1) Approved Members 83,376 40,741 36,576 35,171 167,073 64,898 Estimated Beginning (Paying) Membership (2) 235,269 276,357 280,763 291,171 309,180 404,694 New Paying Members(3) 62,817 49,531 36,122
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: Medicare Advantage Plan Member Turnover Rate by Year
Medicare Advantage Plan Member Turnover Rate(1) by Year Medicare Advantage Plan Member Turnover Rate(1) by Year Member is on the Plan 45% 35% 36% 30% 25% 18% 15% 16% 5% (2) (3) (4) (5) Year 1 Cumulative Years 2-3 Cumulative Years 4-6 Cumulative Years 7+ (1) Based on actual historical and estimated f
Slide 16: Increasing 2020 Guidance
Increasing 2020 Guidance For the full year ending December 31, 2020, we expect: Total revenue in the range of $600.0M - $640.0M, compared to the Corporate(3) shared service expenses, excluding stock-based previous guidance of $580.0M - $620.0M. compensation and depreciation and amortization expense,
Slide 17: Executing Defined Strategy to Achieve Strong Results and Drive Growth
Executing Defined Strategy to Achieve Strong Results and Drive Growth Business fundamentals Omni-channel Addition of work- Updating our 2020 are strong. Executing on customer engagement from-home annual guidance a clear strategy and platform is ideally capabilities for agents to reflect positioned t