Slide 1: Q3 2023 Financial Results
Q3 2023 Financial Results ©2023 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: Q3 2023 Highlights
Q3 2023 Highlights Q3 2023 revenue increased 21% year-over-year to $64.7 million, including $12.2 million in positive net adjustment, or tail, revenue reflective of positive trends in customer retention and commissions. Successfully completed our AEP preparations. Achieved our licensed agent hea
Slide 4: Rebuilt brand identity
Rebuilt brand identity On October 2nd, eHealth launched a rebrand with the goal of striking a new tone in our consumer messaging, emphasizing simplicity, consumer empowerment, and genuine authenticity. Speak with a licensed eHealth insurance agent 1-800-000-0000 TTY:711 Compare all in one Medicare p
Slide 5: Positive Year-over-Year Dynamic in Q3 Revenue & Profitability
Positive Year-over-Year Dynamic in Q3 Revenue & Profitability Q3 2023 revenue increased 21% year- Total Revenue ($MM) Net Loss ($MM) over-year while GAAP $ 64.7 net loss and adjusted 21% EBITDA(1) improved $ 53.4 ($37.0) by $2.1 million and $5.0 million, ($39.1) respectively. Q3-FY22 Q3-FY23 Year-ov
Slide 6: Continued Tail Revenue & Commissions Receivable Strength
Continued Tail Revenue & Commissions Receivable Strength eHealth’s cumulative tail revenue since transitioning to ASC 606 in 2018 is now up to $186 million, after the company recognized an additional $12.2 million in net tail revenue in Q3 2023. Cumulative tail revenue recognized ($, MM) $186 $153 $
Slide 7: Q3 Medicare Segment Performance
Q3 Medicare Segment Performance Q3 2023 Medicare Medicare Segment Revenue ($MM) Medicare Segment Loss(1) ($MM) segment revenue grew 23% YoY as a $55.5 $45.1 23% result of $9.3 million in net adjustment revenue and a 5% increase in MA LTV. ($17.5) ($23.0) Lower Medicare Q3-FY22 Q3-FY23 Q3-FY22 Q3-FY2
Slide 8: Q3 Individual, Family, and Small Business Segment Performance
Q3 Individual, Family, and Small Business Segment Performance Q3 2023 Individual, Individual, Family, and Small Business Individual, Family, and Small Business Family, and Small (1) Segment Revenue ($MM) Segment Profit ($MM) Business segment results reflect a year- $4.6 over-year decrease in $9.2 72
Slide 9: Cash Flow & Liquidity Metrics
Cash Flow & Liquidity Metrics Third quarter operating cash outflow was $24.7 million, an improvement from $29.6 million in Q3 2022. Despite supporting a larger staff than we did a year ago, higher commissions collected, lower marketing & advertising expense, as well as fixed cost discipline drove th
Slide 10: Total Cash Collected by Revenue Type
Total Cash Collected by Revenue Type Despite a 4% year-over-year decline in estimated Medicare membership as of September 30, 2023, total commission cash collected increased by 3% year-over-year. This reflects the increase in commission payments that we have experienced over the past year. $8.1 $14.
Slide 11: FY23 Operational Priorities
FY23 Operational Priorities 1 2 3 4 Build on our Improve Introduce the next Further diversify progress within conversion rates evolution of our eHealth’s revenue eHealth’s across our entire customer retention streams omnichannel enrollment strategy marketing and lead platform generation engine ©2023
Slide 12: FY23 Guidance
FY23 Guidance We are reaffirming our previously issued guidance ranges for the fiscal year ending December 31, 2023: 2023 Full Year Guidance Range (in millions) Total Revenue $439 – $459 GAAP Net Loss $46 – $26 Adjusted EBITDA(1) $(3) – $17 Operating Cash Flow $(30) – $(15) (1) Adjusted EBITDA is ca
Slide 13: Appendix
Appendix ©2023 eHealthInsurance Services, Inc. 13
Slide 14: GAAP Net Loss Attributable to Common Stockholders to Adjusted EBITDA Reconciliation
GAAP Net Loss Attributable to Common Stockholders to Adjusted EBITDA Reconciliation ©2023 eHealthInsurance Services, Inc. 14
Slide 15: Reconciliation of Non-GAAP Financial Measures to Guidance
Reconciliation of Non-GAAP Financial Measures to Guidance ©2023 eHealthInsurance Services, Inc. 15