Ehealth, Inc. · NASDAQ:EHTH
Ehealth — Q2 2024 Earnings Presentation
20 slides from Ehealth's earnings presentation, Aug 7, 2024
Slide 1: Q2 2024 Financial Results
Q2 2024 Financial Results ©2024 eHealthInsurance Services, Inc. 1
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 2024 Earnings Highlights
Q2 2024 Earnings Highlights Second quarter performance was driven by strong results in our Medicare segment. We are increasing our financial outlook for FY 2024. Q2 ‘24 total revenue of $65.9 million decreased 1% compared to Q2 a year ago; Q2 ‘24 non-GAAP total revenue excluding net adjustment rev
Slide 4: Q2 2024 Revenue Performance was Driven by Strong Medicare Segment Execution
Q2 2024 Revenue Performance was Driven by Strong Medicare Segment Execution Total revenue in Q2 ‘24 declined 1% as a result of Total Revenue ($MM) lower positive net adjustment (tail) revenue, $66.8 (1%) $65.9 mostly offset by our Medicare business $11.5 outperformance $18.7 compared to Q2 '23. Non-
Slide 5: Q2 2024 Profitability Improved YoY Excluding Tail Revenue
Q2 2024 Profitability Improved YoY Excluding Tail Revenue (1) Q2 ‘24 GAAP net loss GAAP Net Loss ($MM) Non-GAAP Net Loss ($MM) of $28.0M widened compared to GAAP net loss of $23.5M in ($23.5) ($34.3) Q2 ‘23. Q2’24 non- ($28.0) ($37.7) GAAP net loss(1), which excludes the post-tax impact of net adjus
Slide 6: Q2 2024 Medicare Segment Performance
Q2 2024 Medicare Segment Performance Q2 ‘24 Medicare (1) submissions grew 16% Medicare Segment Revenue ($MM) Medicare Segment Profit (Loss) ($MM) driven by strong agency and Amplify performance. 7% $1.3 Q2 ‘24 Medicare segment revenue increased 7% $59.2 ($2.1) driven by YoY growth in $55.4 submissio
Slide 7: Agency & Amplify: Complementary Fulfillment Models
Agency & Amplify: Complementary Fulfillment Models AGENCY AMPLIFY Target Market Beneficiaries who value choice Beneficiaries with carrier loyalty Quality volume at scale from Carrier Value Prop Augments carrier fulfillment orgs in audience that is harder for carriers an efficient and compliant manne
Slide 8: Agency & Amplify: Revenue & Cash Illustration
Agency & Amplify: Revenue & Cash Illustration AGENCY BOR Example • Commission revenue booked using Adjustment/tail revenue estimated LTVs • Commissions Receivable created • Enrollment flows through approved Cash payments over the full life of the policy members and ending membership Enrollment Appro
Slide 9: Highlighted Member Retention Initiatives: MatchMonitor
Highlighted Member Retention Initiatives: MatchMonitorTM • MatchMonitorTM helps beneficiaries understand the implications of changes to their plans, delivered in the Annual Notice of Changes (ANOC) • Offers beneficiaries a clear comparison between their current plan and how that plan will change in
Slide 10: Highlighted Member Retention Initiatives: Application Tracker
Highlighted Member Retention Initiatives: Application Tracker • eHealth knows the plan approval process can be opaque and a source of anxiety for beneficiaries, so we introduced the Application Tracker • Application Tracker shows beneficiaries the real-time status of their application as it is being
Slide 11: Medicare Submitted Apps Growth
Medicare Submitted Apps Growth Total Broker-of-Record Total Submissions Submissions Product Q2-2023 Q2-2024 y/y Q2-2023 Q2-2024 y/y Medicare Advantage 37,450 43,836 17.1% 37,450 42,043 12.3% Medicare Supplement** 3,346 4,169 24.6% 3,346 1,887 (43.6%) Medicare Part D 2,451 2,330 (4.9%) 2,451 1,537 (3
Slide 12: Cash Flow & Balance Sheet Highlights
Cash Flow & Balance Sheet Highlights Operating cash flow for the TTM ended 6/30/2024 declined year-over-year as a result of higher Q2 2024 operating cash outflows. This was driven primarily by increased payouts of previously accrued performance bonus. Ending Commissions Receivable (Current & Non-Cur
Slide 13: FY24 Operational Priorities
FY24 Operational Priorities 1 2 3 Advance our local Grow revenue market focused, Launch the next year-over-year omni-channel phase of our while producing enrollment engine to drive higher member loyalty & positive adjusted conversions and retention strategy EBITDA greater margins 4 5 Drive our B2B s
Slide 14: FY24 Guidance
FY24 Guidance We are updating our previously issued guidance ranges for FY 2024. Guidance includes an updated estimate for positive net adjustment revenue in the range of $14 to $20 million. 2024 Full Year Original Range (in millions) Updated Range (in millions) Guidance Total Revenue $450 – $475 $4
Slide 15: Appendix
Appendix ©2024 eHealthInsurance Services, Inc. 15
Slide 16: Non-GAAP Financial Measure Definitions
Non-GAAP Financial Measure Definitions Non-GAAP financial measures within this presentation are defined as follows: • Non-GAAP total revenue excluding net adjustment revenue is calculated by excluding the effect of net commission revenue from members approved in prior periods (“net adjustment revenu
Slide 17: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures (1) See slide 16 for the definition of non-GAAP financial measures. ©2024 eHealthInsurance Services, Inc. 17
Slide 18: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures (1) See slide 16 for the definition of non-GAAP financial measures. ©2024 eHealthInsurance Services, Inc. 18
Slide 19: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures (1) See slide 16 for the definition of non-GAAP financial measures. ©2024 eHealthInsurance Services, Inc. 19
Slide 20: Reconciliation of Guidance GAAP to Non-GAAP Financial Measures
Reconciliation of Guidance GAAP to Non-GAAP Financial Measures (1) See slide 16 for the definition of non-GAAP financial measures. ©2024 eHealthInsurance Services, Inc. 20