Ehealth, Inc. · NASDAQ:EHTH
Ehealth — Q4 2022 Earnings Presentation
16 slides from Ehealth's earnings presentation, 2023
Slide 1: Q4 & FY 2022 Financial Results
Q4 & FY 2022 Financial Results Conference Call Slides 2023 Copyright eHealth Insurance. 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: Q4 and FY 2022 Highlights
Q4 and FY 2022 Highlights Outperformed the high end of our '22 annual guidance ranges on each metric Realized $114 million in net operating cost savings in 2022 compared to 2021 Delivered strong AEP performance significantly increasing profitability of our Medicare business Medicare Advantag
Slide 4: Each 2022 Guidance Metric Outperformed Expectations
Each 2022 Guidance Metric Outperformed Expectations Each of our guidance metrics outperformed the high end of the ranges we gave on our Q2 2022 earnings call: Total Revenue ($MM) Net Loss ($MM) Adjusted EBITDA(1) ($MM) Total Cash Outflow(2) ($MM) $405.4 $395.0 ($43.8) ($88.7) ($41.7) ($92.0) ($90.0)
Slide 5: Enhanced Q4 Medicare Unit Economics
Enhanced Q4 Medicare Unit Economics 29% 12% CC&E per MA- COA per MA- CC&E per MA- Per Unit MA LTV COA per MA- Equivalent(2) Approved Equivalent (2) Approved Per Unit MA LTV Equivalent(2) Approved Equivalent (2) Approved Gross Gross Member Member Member Member Margin Margin (1) Sums may not foot due
Slide 6: Q4 Medicare Segment Performance
Q4 Medicare Segment Performance Q4 '22 Medicare Medicare Segment Revenue ($MM) Medicare Segment Profit(1)($MM) segment revenue $53.2 $230.6 (22%) declined 22% year-over- $180.4 $34.1 56% year due to our intentional decision to pause enrollment volumes as we re- engineered sales & Q4-FY21 Q4-FY22 Q4-
Slide 7: Q4 Individual, Family, and Small Business Segment Performance
Q4 Individual, Family, and Small Business Segment Performance Individual, Family, and Small Business Individual, Family, and Small Business Q4 ‘22 Individual, Segment Revenue ($MM) Segment Profit(1) ($MM) Family, and Small $15.9 $9.2 $12.9 27% Business segment 23% $7.2 revenue and profit grew compar
Slide 8: Significant Improvement in Q4 Profitability
Significant Improvement in Q4 Profitability Q4 '22 Net Income and Total Revenue ($MM) Net Income (Loss) ($MM) adjusted EBITDA increased significantly $20.7 compared to a year ago, $ 243.5 on a lower revenue base. (19%) The increase in Q4 $ 196.3 ($32.2) profitability was driven Q4-FY21 Q4-FY22 by op
Slide 9: Annual Revenue & Profitability
Annual Revenue & Profitability '22 annual results reflect Total Revenue ($MM) Net Loss ($MM) the transitional nature of the first half of the year: $538.2 We entered '22 with an (25%) ($88.7) inflated cost structure; $405.4 15% the $110M+ cost ($104.4) reduction program FY2021 FY2022 was introduced
Slide 10: Cash Flow & Liquidity Metrics
Cash Flow & Liquidity Metrics In FY 2022 we surpassed our cash preservation goals. The ending balance of cash, cash equivalents, and marketable securities provides us with sufficient liquidity to execute on our '23 Operating Plan. Total Cash Flow(1) ($MM) Operating Cash Flow ($MM) Ending Cash, Cash
Slide 11: Total Cash Collected by Revenue Type
Total Cash Collected by Revenue Type FY 2022 total cash collections of $437MM grew 4% on a year-over-year basis. FY 2022 commissions collections of $390MM grew 3% year-over-year indicating the underlying strength of eHealth’s consolidated book of business, and growing commission rates. $8.1 $14.6 $4
Slide 12: FY 2023 Operational Priorities
FY 2023 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 20
Slide 13: FY 2023 Guidance
FY 2023 Guidance The midpoint of guidance return to revenue growth at 6% while significantly improving adjusted EBITDA performance. Operating cash flow guidance represents a year-over-year improvement of $4.4 million at the midpoint reflecting our planned investment in enrollment growth for '23 AEP.
Slide 14: Appendix
Appendix 2023 Copyright eHealth Insurance. 14
Slide 15: Net Income (Loss) to Adjusted EBITDA Reconciliation
Net Income (Loss) to Adjusted EBITDA Reconciliation 2023 Copyright eHealth Insurance. 15
Slide 16: Reconciliation of Non-GAAP Financial Measures to Guidance
Reconciliation of Non-GAAP Financial Measures to Guidance 2023 Copyright eHealth Insurance. 16