Health In Tech, Inc. · NASDAQ:HIT
Health In Tech — IPO Roadshow (October 2024)
32 slides from Health In Tech's IPO roadshow presentation, Oct 15, 2024
Slide 1: Health In Tech: Power on Your Health Plan – Investor Presentation
“healthi in tech POWER ON YOUR HEALTH PLAN. Investor Presentation
Slide 2: Free Writing Prospectus
This free writing prospectus relates to the proposed initial public offering of shares of Class A common stock of Health in Tech, Inc . (the “ Company ” ), which are being registered on a registration statement and should be read together with the preliminary prospectus included in the registration
Slide 3: Disclaimer
Disclaimer 3 This Presentation has been prepared by the Company solely for informational purposes . The information included herein in this presentation has not been independently verified . No representations, warranties or undertakings, express or implied, are made by the Company or any of it’ s a
Slide 4: Offering Summary
O ffering Summary 4 Health In Tech, Inc. Issuer NASDAQ/ HIT Exchange/Ticker Initial Public Offering Offering Type 2,300,000 Shares of Class A Common Stock Shares Offered 15% Over - Allotment Option $4.00 - $5.00 per share Filing Range System enhancements, service offerings expansion , sales and dist
Slide 5: Health In Tech is Changing Healthcare through Digital Innovation
Health In Tech is Changing Healthcare through Digital Innovation 5
Slide 6: Our Mission
Our Mission Mission To change the nontransparent US $4. 5 T healthcare industry with innovation that removes friction and complexities with vertical integration, process simplification, automation, and digitalization. 6
Slide 7: Company Snapshot
Company Snapshot • An insurance technology platform company which offers a marketplace that aims to improve process in the healthcare industry through vertical integration , process simplification, and automation. • AI backed sales platform produces self - funded insurance health plans for small bus
Slide 8: Today's Healthcare Market Challenges for Small Business are Trends for Innovation
Today’s Healthcare Market Challenges for Small Business are Trends for Innovation Innovating for tomorrow INACCESSIBILITY COMPLICATED LACK OF TRANSPARENCY Small business are under - represented due to a lack of insurance product solutions and lack of competition. Traditional manual transaction proce
Slide 9: Integrated Business Platform
Integrated business platform 2006 2008 2017 9 International Captive Exchange (ICE) 2013 an MGU specializing in underwriting and providing administrative functions on behalf of stop loss carriers. 2014 Launched Stone Mountain Risk (SMR) Create programs, select network and manage critical vendors 2017
Slide 10: Key Investment Highlights
1 Massive and Growing TAM An estimated of $189 billion* of annual medical insurance premium is generated by small business in 2023 2 Marketplace Innovator and Leader Integrated sales marketplace and end - to - end solution systems provides self - funded health plan for small businesses 4 Unique Dist
Slide 11: Snapshot of Massive and Growing Market Opportunities of Small Businesses in the U.S.
Source: US Small Business Administration(SBA), U.S. Bureau of Economic Analysis, Frost & Sullivan Account for 99.9% of all U.S. firms 61.7 million employees in the U.S. Account for 46.4% of total employs Total Employees of Small Businesses (as of the end of 2022) $11.5 trillion GDP Account for 45% o
Slide 12: Overview of Small Business Self-funded Medical Plan Market in the U.S.
Overview of Small Business Self - funded Medical Plan Market in the U.S. Annual Medical Insurance Premium of Small Businesses Source: Frost & Sullivan Forecasted Annual Medical Insurance Premium of Small Businesses USD Billion, 2018 - 2027E 145.5 156.7 164.4 173.3 179.2 188.8 198.9 210.0 222.5 236.5
Slide 13: The Industry's Smart Platform with End-to-End Solution Ecosystem
MGUs Patients Insurers Providers The Industry’s Smart Platform with End - to End Solution Ecosystem 13
Slide 14: Stone Mountain Risk - SMR
14 Stone Mountain Risk - SMR SMR is a program manager specializing in customized self - funded benefits plans for small businesses . Creates Health Plans Selects Networks Manages Vendors Sets Up Benefits Plans self - funded benefits plan Reference - based Pricing Group Insurance Captive s Community
Slide 15: Underwrite Modeling and Risk Management
15 Underwrite Modeling and Risk Management Develop and maintain underwriting model Design risk criteria Assess the risk Underwrite policy Monitor claims activities Provide reinsurance reporting Provide monthly reinsurance filings Provide Risk - Mitigating and Stop - Loss Solutions Contractual Relati
Slide 16: Typical Quoting Procedure
16 Typical Quoting Procedure The typical manual quoting time from beginning to end is 12 - 14 Days Brokers gather health application Brokers create insurance package Underwriters produce manual quotes Nurses review health applications Underwriters finalize quote proposal Brokers present bindable pro
Slide 17: Proprietary eDIYBS
17 Proprietary eDIYBS The typical quoting time in eDIYBS from beginning to end is about 2 Minutes 4 Tiers SMR Risk - Mitigating and Stop - Loss Solutions AI backed technology and process simplification that saves sales time 12 P lans yw0
Slide 18: Health Intelligence Card (HI Card): Power on Integration
Health Intelligence Card (HI Card): Power on Integration HI Card provides a single, standardized transaction platform for providers, payers, and patients alike. With HI Card, every party in the healthcare transaction has secure real - time access to the same vital patient information – from medical
Slide 19: HI-Performance Network: Power on Savings
HI - Performance Network: Power on Savings Health in Tech’s HI - Performance Network, powered by HI Card, is a series of hospital facilities and providers that delivers Medicare - based reimbursement pricing. 19 50 States 10 , 235 Hospitals Provider Locations 1,59 3 , 202
Slide 20: Unique Distribution Channels
Unique Distribution Channels Leverage advanced quoting tools and HI Card to add strategic relationships with large insurance brokerage firms HIT coordinates all aspects of programs 20 Registered on o ur p latforms and s elling o ur s ervices 17 Third - Party Administrators (TPAs) 192 brokers 118 add
Slide 21: Dedicated Management Team
21 Dedicated Management Team GLENN HILLYER CGO Over 25 years of experience in largest TPA, stop loss insurance. Prior to joining the company, Mr. Hillyer was the Chief Marketing Officer at Free Market Administrators and worked in HealthSmart , Lucent Health DEL LOCKETT COO Over 20 years of experienc
Slide 22: Robust Growth Potential with Continued Innovation
Robust Growth Potential with Continued Innovation 22 C ontinue investing and scaling to address the needs of small - and medium - sized businesses. Introduce ancillary products that expand our offerings F urther monetize our platforms through success fee - based service arrangements for products tha
Slide 23: Revenue Composition and Key Growth Driver
23 Revenue Composition and Key Growth Driver Revenue Composition Revenues from underwriting modelling Revenues from fees HI Card: consistent monthly fee per employee SMR : charge a set fee per employee per month ICE: % of premiums received as the carrier Key Growth Driver The number of enrolled empl
Slide 24: Significant Growth in Client Base
19,101 1H23 1H24 YoY: - 5.1 % Number of total enrolled employees billed for first half year Significant Growth in Client Base 24 Number of total enrolled employees billed by Year 11,725 21,213 FY22 FY23 YoY: 80.9% 20,123
Slide 25: Accelerating Revenue Growth
Accelerating Revenue Growth 25 5.8 19.2 FY22 FY23 Revenues from underwriting modeling Revenues from fees 46.7% 53.3% YoY: 231.9% Revenues by Year ($ in millions) 43.0% 57.0% 8.7 10.1 1H23 1H24 Revenues from underwriting modeling Revenues from fees 53.0% 47.0% 33.8% 66.2% YoY: 16.5% Revenues for firs
Slide 26: Gross Profit
Gross Profit 26 8.20 8.16 1H23 1H24 Gross Profit for first half year ($ in millions) YoY: - 0.5% Gross Margin (%) 94.3% 80.6% 5.4 16.8 FY22 FY23 Gross Profit by Year ($ in millions) YoY: 211.1% 94.2% 88.0% Gross Margin (%)
Slide 27: Income from Continuing Operations
Income from Continuing Operations 27 Income from continuing operations, net of income taxes by Year ($ in millions) 0.1 FY22 FY23 YoY: 2400% 2.5 Income from continuing operations, net of income taxes for first half year ($ in millions) 1.1 0.4 1H23 1H24 YoY: - 59.1%
Slide 28: Optimizing Operational Efficiency With Growing Profitability
Optimizing Operational Efficiency With Growing Profitability 28 Operating Expenses (% of Revenue) Sales & marketing expenses 20.2% 17.7% FY22 FY23 General & administrative expenses 56.7% 42.2% FY22 FY23 Research & development expenses 13.8% 10.5% FY22 FY23 0.1 FY22 FY23 YoY: 2400% Income from contin
Slide 29: Adjusted EBITDA
Adjusted EBITDA 29 1.3 4.8 FY22 FY23 YoY: 269.2% For the Years Ended December 31, 2022 2023 $ 79,742 $ 2,476,660 Income from continuing operations, net of income taxes 4,572 (38,805) Interest (income) expenses - 339,300 Depreciation and amortization 121,268 945,236 Income tax expense 566,038 - Stock
Slide 30: Financial Results for 2Q'24 and FY23
Financial Results for 2Q’24 and FY23 For the Years Ended December 31, 2022 2023 $ 5,769,781 $ 19,151,502 Total revenue s 3,076,162 8,226,852 Revenues from underwriting modeling 2,693,619 10,924,650 Revenues from fees 334,188 2,303,911 Cost of revenues $ 5,435,593 $ 16,847,591 Gross profit 79,742 2,4
Slide 31: Certain Terms and Definitions
Certain Terms and Definitions hi a + “Broker” or “insurance broker” is an intermediary who sells, solicits or negotiates insurance policies on behalf of a client for compensation. A broker typically acts on behalf of a client by negotiating with multiple insurers + “Carrier” refers to an insurance c
Slide 32: Thank You
hit health in tech POWER ON YOUR HEALTH PLAN. Py " THANK YOU