Ehealth, Inc. · NASDAQ:EHTH
Ehealth — Q4 2020 Earnings Presentation
16 slides from Ehealth's earnings presentation, Feb 18, 2021
Slide 1: Q4 2020 and FY 2020 Financial Results
Q4 2020 and FY 2020 Financial Results Conference Call Slides February 18, 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: a Strong, Differentiated Growth Engine
eHealth: a Strong, Differentiated Growth Engine Medicare Advantage Approved Members Medicare Approved Members (In Thousands) (In Thousands) 600K 600K 3 Year CAGR: 503 42% 435 3 Year CAGR: 49% 388 400K 400K 280 240 200K 176 200K 118 148 0K 0K 2017 2018 2019 2020 2017 2018 2019 2020 Medicare Segment R
Slide 4: eHealth FY 2020 Highlights
eHealth FY 2020 Highlights FY 2020 results reflect Revenue of $583MM grew 26% Medicare carrier advertising continuing enrollment compared to FY 2019(1) revenue grew 98% year-over-year growth in our Medicare business accompanied by a meaningful Net Income of $45.5M and 37% of Medicare major medical i
Slide 5: Q4 and FY 2020 Revenue
Q4 and FY 2020 Revenue Revenue Q4 and FY Revenue growth driven primarily by an increase in approved Medicare Advantage members Revenue ($MM) of 30% in Q4 and 39% in FY 2020 compared to Q4 13% $ 293.3 and FY 2019 $ 259.4 Medicare carrier advertising revenue grew 107% in Q4 and 98% in FY 2020 compared
Slide 6: Q4 and FY 2020 Net Income and Adjusted EBITDA
Q4 and FY 2020 Net Income and Adjusted EBITDA(1) Net Income Adjusted EBITDA Net Income ($MM) Adjusted EBITDA ($MM) $ 88.8 -33% $ 59.9 $ 100.3 -16% $ 84.2 (2) Q4-FY19 Q4-FY20 Q4-FY19 Q4-FY20 Net Income ($MM) Adjusted EBITDA ($MM) $ 66.9 -32% -8% $ 45.5 $ 90.9 $ 83.7 (2) FY 2019 FY 2020 FY 2019 FY 202
Slide 7: Q4 and FY 2020 Medicare Segment Revenue and Profit
Q4 and FY 2020 Medicare Segment Revenue and Profit Medicare Segment Medicare Segment Revenue Medicare Segment Profit Revenue grew 12% in Q4 and 28% in FY 2020 Medicare Segment Revenue ($MM) Medicare Segment Profit ($MM) compared to 2019(1) $ 269.9 12% $ 107.0 -23% $ 82.6 Medicare Segment $ 240.3 Pro
Slide 8: Q4 and FY 2020 Medicare Advantage Approved Members and New Paying Members
Q4 and FY 2020 Medicare Advantage Approved Members(1) and New Paying Members(2) FY 20 Medicare Medicare Advantage Approved Members Medicare Advantage New Paying Members Advantage approved members Medicare Advantage Approved Members Medicare Advantage New Paying Members grew 39% YoY and (000s) (000s)
Slide 9: Medicare Major Medical Online Application %
Medicare Major Medical Online Application%(1) Medicare Major Medical Online Application % Achieved online 43% penetration for FY 36% 37% 36% 2020 of 37%, compared to 27% 30% 27% for FY 2019 24% 21% 12% 11% Q1 Q2 Q3 Q4 FY FY 19 FY 20 (1) Major Medicare plans include Medicare Advantage and Medicare Su
Slide 10: Trailing Twelve Months Medicare Segment Commissions Cash Collections
Trailing Twelve Months (“TTM”) Medicare Segment Commissions Cash Collections Q4 20 TTM Medicare Segment commissions TTM Medicare Segment Commissions Cash Collections cash collections ($MM) increased by 48% year-over-year $300 +50% +49% +48% +41% +45% +44% +46% +47% $250 Q4 20 TTM Medicare +44% +37%
Slide 11: Q4 and FY 2020 IFP Segment Revenue and Profit
Q4 and FY 2020 IFP Segment Revenue and Profit IFP Segment Revenue IFP Segment Profit Individual, Family and Small Business Segment Individual, Family and Small Business Segment Revenue ($MM) Profit ($MM) $ 15.9 $ 23.4 91% $ 19.1 22% $ 8.3 Q4-FY19 Q4-FY20 Q4-FY19 Q4-FY20 Individual, Family and Small
Slide 12: Medicare Advantage Plan Member Turnover Trend Since Q4 2018
Medicare Advantage Plan Member Turnover Trend Since Q4 2018 MA Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q42020 (1) Approved Members 83,376 40,741 36,576 35,171 167,073 64,898 60,477 44,999 217,278 Estimated Beginning (Paying) Membership (2) 235,269 276,357 280,763 291,171 309,
Slide 13: 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 14: Key Areas of Operational Focus for 2021
Key Areas of Operational Focus for 2021 • Increase effectiveness of our telesales organization ─ Shift to a predominately internal workforce ─ Enhance the agent onboarding and training process ─ Expand retention team • Enhance marketing strategies ─ Emphasize online and strategic partner channels ch
Slide 15: 2021 Guidance
2021 Guidance(1) For the full year ending December 31, 2021, we expect: Total revenue is expected in the range of $660M to $700M Adjusted EBITDA(2) is expected in the range of $100M to $115M. • Medicare segment revenue is expected in the range of • Medicare segment profit(3) is expected in the range
Slide 16: 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