Ehealth, Inc. · NASDAQ:EHTH
Ehealth — Q4 2021 Earnings Presentation
20 slides from Ehealth's earnings presentation, Mar 1, 2022
Slide 1: Q4 & FY 2021 Financial Results
Q4 & FY 2021 Financial Results Conference Call Slides March 1, 2022
Slide 2: Correction and Safe Harbor Statement
/CORRECTION – eHealth, Inc./ eHealth, Inc. is correcting misstatements regarding guidance for GAAP net loss for the full year ending December 31, 2022 in the financial results conference call slides for the fourth quarter and year ended December 31, 2021 that were posted to eHealth’s investor relati
Slide 3: Medicare Advantage Market Opportunity Remains Attractive; Strong Tailwinds Intact
Medicare Advantage Market Opportunity Remains Attractive; Strong Tailwinds Intact • Increasing market penetration of MA private plans, from 31% of Medicare beneficiaries in 2016 to 51% in 2030(1) • Medicare Advantage plan enrollment expected to grow 70% market-wide between 2020 and 2030(2) (1) Medic
Slide 4: FY 2021 Financial Highlights
FY 2021 Financial Highlights The decline in FY 2021 revenue and profitability was driven FY 2021 revenue declined 8% to FY 2021 Adjusted EBITDA(1) of primarily by lower $538.2MM compared to FY 2020; ($22.7)MM declined from positive telephonic conversion FY 2021 GAAP net loss was $91.4 MM in FY 2020
Slide 5: eHealth MA Membership Growth
eHealth MA Membership Growth 250,000 700,000 Medicare Advantage enrollment continues to 600,000 grow as the population Approved / New Paying MA Members 200,000 of eligible beneficiaries increases. Ending Estimated MA Membership 500,000 150,000 estimated MA 400,000 membership grew 19% y/y in 2021. 30
Slide 6: Cash Collections Continue to Scale
Cash Collections Continue to Scale MA Paying Membership and Cash Medicare Paying Membership and Cash Medicare estimated Collected Per Member Collected Per Medicare Member membership 700,000 $500.00 1,200,000 $400.00 exceeded 950K, with 600,000 $450.00 $350.00 Medicare Paying Membership 1,000,000 ove
Slide 7: Cash Indicators Growing; Positive Tail Revenue in Each of the Last Three Years
Cash Indicators Growing; Positive Tail Revenue in Each of the Last Three Years Estimated Paying 533,282 632,574 25% 404,694 Sustained growth in MA Membership CAGR membership base, FY2019 FY2020 FY2021 generating increasing cash per member. $348 Cash Collections $242 $292 20% per Medicare CAGR Positi
Slide 8: Medicare Advantage Variable Cost and Cash Collection
Medicare Advantage Variable Cost and Cash Collection Variable Cost and Cash Collection (1) 2019 MA cohorts have per Medicare Advantage Member achieved break even, To be Collected i.e., the upfront Breakeven variable acquisition cost compared to Variable Cost Variable Cost (2) cash collections Receiv
Slide 9: Q4 & FY 2021 Revenue
Q4 & FY 2021 Revenue Total Revenue Total revenue declined 8% on a year-over-year basis in FY 2021 due primarily to a $17.1 million decrease in Medicare commission revenue and a Total Revenue ($MM) $27.5 million decrease in Medicare advertising $ 293.3 revenue. (17%) $ 243.5 Decline in approved Medic
Slide 10: Q4 & FY 2021 Net Loss and Adj. EBITDA
Q4 & FY 2021 Net Loss and Adj. EBITDA(1) Q4 & FY 2021 net loss was impacted by impairments to our goodwill and intangible assets, combining to $46.3 million and reflecting eHealth’s market capitalization dropping below our Shareholders Equity. These charges were excluded for the purpose of calculati
Slide 11: Q4 & FY 2021 Major Medicare Online Applications
Q4 & FY 2021 Major Medicare Online Applications Online business Major Medicare Online Unassisted Submissions continues to generate strong growth. Major Medicare Online Unassisted Major Medicare Online Unassisted Unassisted online Submissions Submissions applications for major Medicare(1) products 75
Slide 12: Q4 & FY 2021 Medicare Segment Revenue and Profit (Loss)
Q4 & FY 2021 Medicare Segment Revenue and Profit (Loss) Q4 and FY 2021 Medicare Segment Revenue Medicare Segment Profit (Loss) (1) Medicare segment results were impacted Medicare Segment Revenue ($MM) Medicare Segment Profit (Loss) ($MM) by lower telephonic $269.9 $84.8 conversion rates as (15%) $23
Slide 13: Q4 & FY 2021 IFP Segment Revenue and Profit
Q4 & FY 2021 IFP Segment Revenue and Profit IFP Segment Revenue IFP Segment Revenue IFP Segment Profit (1) and Profit increased in FY 2021 on a y/y Individual, Family, and Small Business Segment Revenue ($MM) Individual, Family, and Small Business Segment Profit ($MM) basis. $16.2 $23.4 (55%) (45%)
Slide 14: 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 Q2'21 Q3'21 Q4'21 Approved Members (1) 83,376 40,741 36,576 35,171 167,073 64,898 60,477 44,999 217,278 106,884 78,569 36,836 177,469 Estimated Beginning (Paying) Membership(2)
Slide 15: 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 16: FY 2022 Priorities
FY 2022 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 economics
Slide 17: 2022 Guidance
2022 Guidance 2022 Full Year Guidance Range (in millions) Total Revenue $448 - $470 GAAP Net Loss $(106) - $(83) Adjusted EBITDA(1) $(64) - $(37) Total cash flow, excluding the impact of our $(140) - $(120) $70 million term loan and associated costs The image part with relationship ID rId17 was not
Slide 18: Appendix
Appendix Confidential and proprietary
Slide 19: Net Income (Loss) to Adjusted EBITDA Reconciliation
Net Income (Loss) to Adjusted EBITDA Reconciliation (In thousands) Three Months Ended December 31, Year Ended December 31, 2021 2020 2021 2020 Net income (loss) attributable to common stockholders ($39,306) $59,873 ($122,942) $45,450 Paid-in-kind dividends for preferred stock 4,563 — 12,206 — Change
Slide 20: 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