Slide 1: Q4 & FY 2023 Financial Results
Q4 & FY 2023 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: Earnings Highlights
Earnings Highlights Q4 2023 total revenue increased 26% year-over-year to $247.7 million, including $15.6 million in positive net adjustment revenue reflective of continued positive trends in beneficiary persistency commissions payments. This compares to positive net adjustment revenue of $11.1 mi
Slide 4: Q4 & FY 2023 Total Revenue Grew Year-over-Year
Q4 & FY 2023 Total Revenue Grew Year-over-Year Q4 ‘23 total revenue Total Revenue ($MM) grew 26% y/y, driven $247.7 by strong $452.9 $15.6 12% performance within $48.1 our Medicare 26% $405.4 segment reflecting $6.4 approved Medicare $196.3 member growth, $11.1 increase in our MA 25% 1% LTVs and pos
Slide 5: Another AEP with Expanded Unit Margins Year-Over-Year
Another AEP with Expanded Unit Margins Year-Over-Year (1) Q4-FY21 Q4-FY22 Q4-FY23 32% 29% 12% MA LTV CC&E per Variable marketing cost Per Unit MA LTV CC&E per Variable Per Unit MA LTV CC&E per Variable Per Unit MA-Equiv. (2) marketing cost marketing cost MA-Equiv. (2) per MA-Equiv.(2) Gross per MA-E
Slide 6: Q4 & FY 2023 Profitability Improved Year-Over-Year
Q4 & FY 2023 Profitability Improved Year-Over-Year On a year-over-year Q4 GAAP Net Income ($MM) FY GAAP Net Loss ($MM) basis, FY 2023 GAAP Net Income improved $52.2 $60.5 million, and adjusted EBITDA(1) $20.7 ($28.2) improved $55.7 ($88.7) million compared to Q4-FY22 Q4-FY23 FY2022 FY2023 FY 2022. (
Slide 7: Q4 Medicare Segment Performance
Q4 Medicare Segment Performance (1) Medicare Segment Revenue ($MM) Medicare Segment Profit ($MM) Q4 ‘23 Medicare Advantage approved $233.7 $80.3 members increased $180.4 30% $53.2 51% 22% year-over-year. Total Q4 ‘23 Medicare approved members grew 16% year-over- Q4-FY22 Q4-FY23 Q4-FY22 Q4-FY23 year,
Slide 8: Q4 Employer & Individual (E&I) Segment Performance
Q4 Employer & Individual (E&I) Segment Performance Employer & Individual Segment Revenue Employer & Individual Segment Profit ($MM) (1) Q4 ‘23 Employer and ($MM) Individual segment results reflect a year- $15.9 $9.2 (22%) over-year decrease in (12%) $14.0 $7.1 enrollment volume, and roughly flat LTV
Slide 9: Local Markets Strategy Showing Strong Results
Local Markets Strategy Showing Strong Results • Born from the idea that “healthcare is local.” Aligned with local provider networks, pharmacies & strategic partners. • Seeing success in several metrics: Local market enrollments convert at higher rates and have a lower early cancelation rate than nat
Slide 10: Cash Flow & Balance Sheet Highlights
Cash Flow & Balance Sheet Highlights Year-over-year growth in ending commissions receivable balance reflects Q4 enrollment growth and the upward revisions to our receivable that flowed through our income statement in the form of tail revenue. Fiscal 2023 operating cash flow improved year-over-year,
Slide 11: Total Cash Collected by Revenue Type
Total Cash Collected by Revenue Type Commission cash collections grew 15% year-over-year in Q4 2023. This reflects the increase in commission payments that we have experienced over the past year in conjunction with improved retention within our Medicare book of business. Cash Collected by Revenue Ty
Slide 12: FY24 Operational Priorities
FY24 Operational Priorities 1 2 3 Advance our local Grow revenue year- market focused, Launch the next omni-channel over-year while phase of our enrollment engine to producing positive drive higher member loyalty & adjusted EBITDA conversions and retention strategy greater margins 4 5 Drive our B2B
Slide 13: FY24 Guidance
FY24 Guidance 2024 guidance includes an estimate for positive net adjustment revenue in the range of $0 to $15 million reflective of potential tail revenue that was previously constrained. 2024 Full Year Guidance Range (in millions) Total Revenue $450 – $475 GAAP Net Income (Loss) ($40) – ($20) Adju
Slide 14: Appendix
Appendix ©2024 eHealthInsurance Services, Inc. 14
Slide 15: GAAP Net Income (Loss) to Adjusted EBITDA Reconciliation
GAAP Net Income (Loss) Attributable to Common Stockholders to Adjusted EBITDA Reconciliation ©2024 eHealthInsurance Services, Inc. 15
Slide 16: Reconciliation of Non-GAAP Financial Measures to Guidance
Reconciliation of Non-GAAP Financial Measures to Guidance ©2024 eHealthInsurance Services, Inc. 16