Ehealth, Inc. · NASDAQ:EHTH
Ehealth — Q1 2022 Earnings Presentation
18 slides from Ehealth's earnings presentation, May 3, 2022
Slide 1: Q1 2022 Financial Results
Q1 2022 Financial Results Conference Call Slides May 3, 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: Our Enrollment Remains a Small Portion of our Total Medicare Advantage Annual Opportunity
Our Enrollment Remains a Small Portion of our Total Medicare Advantage Annual Opportunity eHealth’s 400k Estimated New to MA (Age-ins + (1) (2) Estimated Switchers Within MA Medicare Advantage shifted from traditional Medicare) Approved Members in FY2021 represented 4.2m 3.8m 5% of total estimated a
Slide 4: Q1 2022 Financial Highlights
Q1 2022 Financial Highlights Q1 enrollments and revenue declined YoY Q1 2022 revenue declined 22% Adjusted EBITDA(1) loss of reflecting lower year-over-year to $105.3MM; Q1 ($24.8)MM, compared to $17.3MM telephonic conversions 2022 GAAP net loss was $(32.7)MM in Q1 2021 and our decision to reduce in
Slide 5: eHealth MA Membership Growth
eHealth MA Membership Growth 250,000 700,000 Paying policies with 600,000 policy effective date Jan 200,000 1, 2022 (last AEP enrollments) Approved\New Paying Members 500,000 demonstrated Estimated Membership 150,000 400,000 persistency through the first three active months 300,000 more than 10% hig
Slide 6: Total Revenue
Q1 2022 Total Revenue Total Revenue Total revenue declined 22% on a year-over-year basis due primarily to a $27.8 million decrease in Total Revenue ($MM) Medicare commission revenue. $ 134.2 In the remainder of 2022, we plan to back on our (22%) $ 105.3 investment in telephonic enrollments to reduce
Slide 7: Major Medicare Online Applications
Q1 2022 Major Medicare Online Applications Online business Major Medicare Online Unassisted Submissions continues to generate strong growth. Major Medicare Online Unassisted Submissions Unassisted online applications for major 11,567 Medicare(1) products grew 47% year-over- 47% year 7,853 11.5% of m
Slide 8: Net Loss and Adj. EBITDA
Q1 2022 Net Loss and Adj. EBITDA(1) Q1 2022 Net Loss and Adjusted EBITDA reflect the impact of lower telephonic conversion rates and the early stages of the implementation of our cost transformation initiatives. Net Loss Adjusted EBITDA Net Loss ($MM) Adjusted EBITDA ($MM) $17.3 ($0.8) ($32.7) ($24.
Slide 9: Medicare Segment Revenue and Loss
Q1 2022 Medicare Segment Revenue and Loss Q1 2022 Medicare segment revenue and Medicare Segment Revenue Medicare Segment Profit (Loss) (1) earnings declined on a Medicare Segment Revenue ($MM) Medicare Segment Profit (Loss) ($MM) year-over-year basis. $121.0 $24.5 Medicare commission (21%) revenue d
Slide 10: IFP/SMB Segment Revenue and Profit
Q1 2022 IFP/SMB Segment Revenue and Profit IFP/SMB Revenue and Segment Profit IFP/SMB Segment Revenue IFP/SMB Segment Profit (1) declined compared to Individual, Family, and Small Business Segment Individual, Family, and Small Business Segment Q1 2022 due to lower Revenue ($MM) Profit ($MM) IFP/SMB
Slide 11: Medicare Advantage Variable Cost and Cash Collection
Medicare Advantage Variable Cost and Cash Collection Medicare Advantage Variable Cost and Cash Collection (1) 2020 MA cohorts have per Medicare Advantage Member now achieved break To be Collected even, i.e., the variable acquisition cost Breakeven compared to cash Variable Cost (2) collections gener
Slide 12: Trailing Twelve Months Medicare Segment Commissions Cash Collections
Trailing Twelve Months (“TTM”) Medicare Segment Commissions Cash Collections Q1 2022 TTM Medicare TTM Medicare Segment Commissions Cash Collections Segment commissions ($MM) cash collections $350 100% increased by 8% year- 90% over-year $300 80% $250 70% Cash collections continue to outpace $200 +50
Slide 13: Medicare Advantage Plan Member Turnover Trend Since Q4 2019
Medicare Advantage Plan Member Turnover Trend Since Q4 2019 MA Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 (1) Approved Members 167,073 64,898 60,477 44,999 217,278 106,884 78,569 36,836 177,469 82,431 Estimated Beginning (Paying) Membership(2) 309,180 404,694 384,513 407,243 421,237
Slide 14: Medicare Advantage Plan Member Turnover Trend Since Q4 2019 (cont'd)
Medicare Advantage Plan Member Turnover Trend Since Q4 2019 (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: 2022 Guidance
2022 Guidance For the full year ending December 31, 2022, we are reaffirming the following guidance ranges: 2022 Full Year Guidance Range (in millions) Total Revenue $448 - $470 GAAP Net Loss $(106) - $(83) Adjusted EBITDA(1) $(64) - $(37) Total cash outflow, excluding the impact of our $70 million
Slide 16: Appendix
Appendix Confidential and proprietary
Slide 17: Net Loss to Adjusted EBITDA Reconciliation
Net Loss to Adjusted EBITDA Reconciliation (In thousands) Three Months Ended March 31, 2022 2021 Net loss attributable to common stockholders: (39,961) (800) Paid-in-kind dividends for preferred stock 4,717 — Change in preferred stock redemption value 2,502 — GAAP net income (loss) (32,742) (800) St
Slide 18: FY 2022 Guidance Net Loss to Adjusted EBITDA Reconciliation
FY 2022 Guidance Net Loss to Adjusted EBITDA Reconciliation (In millions) Full Year 2022 Guidance Low High GAAP net loss attributable to common stockholders ($137) ($114) Impact from preferred stock 31 31 GAAP net loss (106) (83) Stock-based compensation expense 31 31 Depreciation and amortization 1