Ehealth, Inc. · NASDAQ:EHTH
Ehealth — Q2 2022 Earnings Presentation
20 slides from Ehealth's earnings presentation, Aug 8, 2022
Slide 1: Q2 2022 Financial Results
Q2 2022 Financial Results Conference Call Slides August 8, 2022
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: Q2 2022 Summary
Q2 2022 Summary • Our Medicare and IFP businesses continue to provide significant value to beneficiaries and carriers. • Core operational results exceeded internal expectations driven primarily by better-than-expected Medicare call conversion rates. • At the same time, telephonic conversion rate dec
Slide 4: Cost Savings Initiatives Update
Cost Savings Initiatives Update • We are on track to deliver more than $60 million in cost savings year-over-year. Fixed Costs Variable Costs • Q2 ‘22 Technology & Content and G&A costs • Q2 ‘22 marketing spend was down 33% and call center combined declined $3.6MM year-over-year. costs down 24% year
Slide 5: Financial Highlights
Q2 2022 Financial Highlights Q2 ‘22 results reflect Q2 2022 revenue was $50.4MM; Q2 2022 net loss was ($37.5)MM reduction in variable and Q2 ‘22 adjusted EBITDA(1) was excluding negative tail revenue of marketing and agent-related ($33.3)MM; excluding negative tail $8.7MM, revenue was $59.1MM costs
Slide 6: eHealth MA Membership
eHealth MA Membership 250,000 700,000 Q2 2022 estimated 600,000 ending paying MA 200,000 membership increased by 5% year-over-year. Approved\New Paying Members 500,000 Estimated Membership 150,000 400,000 Paying policies with effective date of Jan 1, 300,000 2022 (last AEP 100,000 enrollments) conti
Slide 7: Total Revenue
Q2 2022 Total Revenue Total Revenue Total revenue declined 48% on a year-over-year basis due primarily to a $28.0 million decrease in in-period Medicare commission revenue. Total Revenue ($MM) $96.6 Q2 ‘22 results were also impacted by the negative tail revenue from prior enrollments. Excluding the
Slide 8: Net Loss and Adj. EBITDA
Q2 2022 Net Loss and Adj. EBITDA(1) Q2 2022 Net Loss and Adjusted EBITDA include the impact of a $8.7 million negative revenue adjustment. Excluding the impact of the adjustment, Q2 2022 Net Loss was ($28.8) million and Adjusted EBITDA was ($24.6) million. Net Loss Adjusted EBITDA Net Loss ($MM) Adj
Slide 9: Major Medicare Online Unassisted Applications
Q2 2022 Major Medicare Online Unassisted Applications Online business Major Medicare Online Unassisted Submissions continues to generate enrollment growth Major Medicare Online Unassisted Submissions despite the reduction in variable marketing 7,356 expense across our lead 12% generation channels. 6
Slide 10: Medicare Segment Revenue and Loss
Q2 2022 Medicare Segment Revenue and Loss Medicare Segment revenue declined due to a Medicare Segment Revenue Medicare Segment Loss (1) reduction in approved Medicare Segment Revenue ($MM) Medicare Segment Loss ($MM) members as we temporarily pulled back on $73.2 variable acquisition spend (44%) in
Slide 11: IFP/SMB Segment Revenue and Profit
Q2 2022 IFP/SMB Segment Revenue and Profit IFP/SMB Revenue and Segment Profit declined IFP/SMB Segment Revenue IFP/SMB Segment Profit (1) compared to Q2 2022 Individual, Family, and Small Business Segment Individual, Family, and Small Business Segment due primarily to lower Revenue ($MM) Profit ($MM
Slide 12: Medicare Advantage Variable Cost and Cash Collection
Medicare Advantage Variable Cost and Cash Collection 2020 MA cohorts have Medicare Advantage Variable Cost and Cash Collection (1) per Medicare Advantage Member achieved break even, i.e., the upfront acquisition To be Collected cost compared to cash Breakeven Variable Cost collections generated by t
Slide 13: TTM Medicare Segment Commissions Cash Collections
Trailing Twelve Months (“TTM”) Medicare Segment Commissions Cash Collections Q2 2022 TTM Medicare TTM Medicare Segment Commissions Cash Collections Segment commissions ($MM) cash collections of $350 70% $323.5 million increased by 1% year- $300 +50% 60% over-year. +49%+47% +48% $250 +45% +44% +46% +
Slide 14: Medicare Advantage Plan Member Turnover Trend Since Q1 2020
Medicare Advantage Plan Member Turnover Trend Since Q1 2020 MA Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 (1) Approved Members 64,898 60,477 44,999 217,278 106,884 78,569 36,836 177,469 82,431 51,506 (2) Estimated Beginning (Paying) Membership 404,694 384,513 407,243 421,237 533,282
Slide 15: Medicare Advantage Plan Member Turnover Trend (cont'd)
Medicare Advantage Plan Member Turnover Trend Since Q1 2020 (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 16: 2022 Operational Priorities
2022 Operational Priorities Through transformative changes, reduce our cost structure while focusing on operational efficiency and excellence; we 1 expect to return to growth in ‘23 on a substantially improved cost and operational foundation. Deploy marketing dollars in a way that will drive better
Slide 17: 2022 Guidance
2022 Guidance For the full year ending December 31, 2022, we are revising our financial guidance: 2022 Full Year Guidance New Range (in millions) Old Range (in millions) Total Revenue $375 - $395 $448 - $470 GAAP Net Loss ($115) – ($92) ($106) – ($83) Adjusted EBITDA(1) ($73) – ($45) ($64) – ($37) T
Slide 18: Appendix
Appendix Confidential and proprietary
Slide 19: Net Loss to Adjusted EBITDA Reconciliation
Net Loss to Adjusted EBITDA Reconciliation The image part with relationship ID rId17 was not found in the file. 18
Slide 20: FY 2022 Guidance Net Loss to Adjusted EBITDA Reconciliation
FY 2022 Guidance Net Loss to Adjusted EBITDA Reconciliation The image part with relationship ID rId17 was not found in the file. 19