Ehealth, Inc. · NASDAQ:EHTH
Ehealth — Q1 2024 Earnings Presentation
17 slides from Ehealth's earnings presentation, May 7, 2024
Slide 1: Q1 2024 Financial Results
Q1 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: Q1 2024 Earnings Highlights
Q1 2024 Earnings Highlights eHealth delivered strong first quarter performance underpinned by revenue growth and growth in approved members. We are on track to reach our financial goals for FY 2024. Q1 2024 total revenue of $93.0 million increased 26% compared to Q1 2023 total revenue of $73.7 mil
Slide 4: Medicare Broker Industry Trends
Medicare Broker Industry Trends Old Model New Model Proliferation of distribution platforms, Industry consolidation underway many unprofitable Emphasis on volume production Emphasis on profitability Large marketing budgets deployed Rationalization of marketing spend each AEP across all key channels
Slide 5: Q1 2024 Total Revenue Grew Year-over-Year with Improved Profitability
Q1 2024 Total Revenue Grew Year-over-Year with Improved Profitability Enhanced Total Revenue ($MM) GAAP Net Loss ($MM) profitability metrics reflect strong topline $ 93.0 growth accompanied 26% by fixed cost ($17.0) reductions. $ 73.7 ($19.9) Q1-FY23 Q1-FY24 Q1 2024 GAAP net loss includes one- (1) t
Slide 6: Q1 2024 Medicare Segment Performance
Q1 2024 Medicare Segment Performance Q1 ‘24 Medicare Medicare Segment Revenue ($MM) Medicare Segment Profit (Loss) ($MM) (1) approved members $82.4 $8.3 increased 10% YoY 33% reflecting strong $61.8 execution in both fulfillment models, core Agency and ($0.6) Amplify. Q1-FY23 Q1-FY24 Q1-FY23 Q1-FY24
Slide 7: Recently Launched New Features ePerks and Live Advise
Recently Launched New Features ePerks and Live Advise Live Advise • Launched in early Q2 2024 • Limited launch in early Q2 2024 • Loyalty program that offers our • Offers secure one-way video chat members a seamless start to access capability their plan benefits and services, a • Allows customers to
Slide 8: Cash Flow & Balance Sheet Highlights
Cash Flow & Balance Sheet Highlights Operating cash flow for Q1 ‘24 was $70.8 million, relative to $60.8 million in Q1 ’23. Importantly, our operating cash flow for TTM ended 3/31/24 was positive $3.3 million – up from negative $13.2 million a year ago – and exceeded our goal of breakeven operating
Slide 9: Total Cash Collected by Revenue Type ($, MM)
Total Cash Collected by Revenue Type ($, MM) (1) Q1 2024 total cash collections of $180.5 million grew 13% on a year-over-year basis, driven by an increase in non-commission revenue as well as increased commission payments generated by our existing book of business. $19.8 $6.0 $24.4 $154.4 $7.1 $160
Slide 10: Trailing 12-Month Profitability and Cash Flows
Trailing 12-Month Profitability and Cash Flows Following the implementation of our Business Transformation, we have seen steady improvement in profitability and cash flow performance on a TTM basis. $50 Apr ’22: Business Transformation initiated $- $(50) $(100) $(150) $(200) Q3'21 Q4'21 Q1'22 Q2'22
Slide 11: FY24 Operational Priorities
FY24 Operational Priorities 1 2 3 Advance our local Grow revenue year- market focused, Launch the next omni-channel over-year while phase of our enrollment engine to producing positive drive higher member loyalty & adjusted EBITDA conversions and retention strategy greater margins 4 5 Drive our B2B
Slide 12: Two Distinct Fulfillment Models
Two Distinct Fulfillment Models • Both models capitalize on strong and growing Medicare Advantage market • Can be expanded to other eHealth products Agency (Choice) Amplify (Carrier Dedicated) eHealth Marketing Engine Carrier Demand Generation Efforts Operational Model National & Local Online Market
Slide 13: Amplify vs Agency Financial View
Amplify vs Agency Financial View Q1 ’24 Revenue Breakdown ($, MM) Expected FY 2024 Contribution as Amplify Scales Amplify Revenue and Transitions to BPO Model $7.2 Medicare Revenue eHealth Cash Profile Positive Positive Contributor Contributor Medicare Volume Processed Adj. EBITDA Positive Positive
Slide 14: FY24 Guidance
FY24 Guidance We are reiterating our previously issued guidance ranges for FY 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) To
Slide 15: Appendix
Appendix ©2024 eHealthInsurance Services, Inc. 15
Slide 16: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ©2024 eHealthInsurance Services, Inc. 16
Slide 17: Guidance GAAP Net Loss Attributable to Common Stockholders to Adjusted EBITDA
Guidance GAAP Net Loss Attributable to Common Stockholders to Adjusted EBITDA ©2024 eHealthInsurance Services, Inc. 17