Ehealth, Inc. · NASDAQ:EHTH
Ehealth — Q3 2021 Earnings Presentation
18 slides from Ehealth's earnings presentation, Nov 8, 2021
Slide 1: Q3 2021 Financial Results
Q3 2021 Financial Results Conference Call Slides November 8, 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 Third Quarter 2021 Overview
eHealth Third Quarter 2021 Overview • Implemented a number of operational changes reflecting our enhanced focus on enrollment quality • Quality initiatives present long-term opportunities for establishing eHealth as industry leader in customer experience and a premium distribution channel for carrie
Slide 4: Q3 2021 Financial Highlights
Q3 2021 Financial Highlights Q3 revenue and earnings reflect the impact of enrollment Q3 2021 revenue declined 32% to Adjusted EBITDA(1) loss of quality initiatives on our $63.9MM compared to Q3 2020; Q3 ($55.2)MM, compared to telephonic conversion 2021 GAAP net loss was $(53.0)MM ($11.2)MM in Q3 20
Slide 5: Revenue
Q3 2021 Revenue Revenue Total revenue declined 32% on a year-over basis due primarily to an $8.8 million decrease in Revenue ($MM) Medicare commission revenue and a $14.6 million decrease in Medicare advertising revenue. $ 94.3 (32%) Decline in approved Medicare members during the quarter was partia
Slide 6: Medicare Approved Members and New Paying Members
Q3 2021 Medicare Approved Members(1) and New Paying Members(2) Total approved Medicare Approved Members Medicare New Paying Members Medicare members declined 22% and Medicare Advantage approved members declined 18% year- over-year Direct TV channel declined to 6% of total MA enrollments offset by a
Slide 7: Major Medicare Online Applications
Q3 2021 Major Medicare Online Applications Major Medicare Online Unassisted Submissions Online business continues to generate Major Medicare Online Unassisted Submissions strong growth. Unassisted online applications for major 7,977 Medicare (1) products grew 58% year-over- 58% year 5,054 17% of maj
Slide 8: Net Loss and Adj. EBITDA
Q3 2021 Net Loss and Adj. EBITDA(1) Third quarter 2021 Net Loss and Adjusted EBITDA reflect a significant investment in our internal telesales capacity ahead of the Annual Enrollment Period, lower telephonic conversion rates due to enrollment quality initiatives and a decline in high-margin Medicare
Slide 9: Medicare Segment Revenue and Loss
Q3 2021 Medicare Segment Revenue and Loss Medicare Segment Revenue Medicare Segment Loss (1) Q3 was an investment quarter as we completed our internal agent ramp and launched initial marketing campaigns in preparation for the AEP Due to telephonic conversion declines, Medicare segment revenue and lo
Slide 10: IFP Segment Revenue and Profit
Q3 2021 IFP Segment Revenue and Profit IFP Revenue and IFP Segment Revenue IFP Segment Profit (1) Segment Profit Individual, Family and Small Business Segment Revenue Individual, Family and Small Business Segment Profit ($MM) ($MM) declined compared to Q3 2020 due to lower $ 18.5 tail revenue of $11
Slide 11: Medicare Advantage Variable Cost and Cash Collection
Medicare Advantage Variable Cost and Cash Collection Cash collections from Medicare Advantage Variable Cost and Cash Collection our MA cohorts enrolled in 2019 and earlier have exceeded upfront acquisitions costs These cohorts are now generating positive cash flow as we continue to collect monthly r
Slide 12: TTM Medicare Segment Commissions Cash Collections
Trailing Twelve Months (“TTM”) Medicare Segment Commissions Cash Collections Q3 2021 TTM Medicare TTM Medicare Segment Commissions Cash Collections Segment commissions cash collections ($MM) increased by 37% year-over-year $350 +39% +37% +45% +44% +50% +49% +47% +48% +41% +46% +39% $300 Cash collect
Slide 13: 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 Q2'10 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 (1) Approved Members 83,376 40,741 36,576 35,171 167,073 64,898 60,477 44,999 217,278 106,884 78,569 36,836 (2) Estimated Beginning (Paying) Membership 235,268 276,3
Slide 14: 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 15: Operational Initiatives
Operational Initiatives Telesales • Successfully pivoted to full-time, internal salesforce with internal agents representing over 95% of total compared to 50% at the beginning of last year’s AEP • Introduced major enrollment quality initiatives including an enrollment verification step for telephoni
Slide 16: 2021 Guidance
2021 Guidance For the full year ending December 31, 2021, we have updated our financial outlook: • Total revenue is expected to be in the range of $535.0 million to $575.0 • Medicare segment revenue is expected to be in the range of $471.0 million million compared to prior guidance range of $660 mil
Slide 17: Appendix
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Slide 18: Appendix
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