Ehealth, Inc. · NASDAQ:EHTH
Ehealth — Q2 2020 Earnings Presentation
17 slides from Ehealth's earnings presentation, Jul 23, 2020
Slide 1: Q2 2020 Financial Results Conference Call Slides
Q2 2020 Financial Results Conference Call Slides July 23, 2020
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 Q2 2020 Highlights
eHealth Q2 2020 Highlights Delivering strong revenue and Q2 2020 revenue grew 35% Total Medicare estimated cost per Medicare enrollment compared to Q2 2019 approved member decreased 7% growth, while year-over-year reducing acquisition costs Medicare segment revenue grew 30% of Medicare major medical
Slide 4: Revenue
Q2 2020 Revenue Revenue Continue to achieve rapid growth in new Medicare enrollments driven by strong consumer Revenue ($MM) demand on our platform and effective demand conversion through our omni-channel consumer $ 88.8 engagement platform 35% $ 65.8 Direct-to-consumer channels providing customer t
Slide 5: Net Income (Loss) and Adj. EBITDA
Q2 2020 Net Income (Loss) and Adj. EBITDA(1) Net Income (Loss) Adjusted EBITDA Net Income (Loss) ($MM) Adjusted EBITDA ($MM) $ 1.7 96% $ 0.8 ($ 3.4) 41% ($ 5.8) Q2-FY19 Q2-FY20 Q2-FY19 Q2-FY20 Exceeded expectations due to significant growth in Medicare enrollments (1) Adjusted EBITDA is calculated b
Slide 6: Medicare Segment Revenue and Profit
Q2 2020 Medicare Segment Revenue and Profit Our estimated number of revenue Medicare Segment Revenue Medicare Segment Profit generating Medicare Medicare Segment Revenue ($MM) Medicare Segment Profit ($MM) members was approximately $ 80.4 $ 13.4 716,000 at the end 54% 120% of the second $ 52.3 quart
Slide 7: Medicare Approved Members and New Paying Members
Q2 2020 Medicare Approved Members(1) and New Paying Members(2) Strong Medicare Advantage Medicare Approved Members Medicare New Paying Members enrollment growth Medicare Approved Members (000s) Medicare New Paying Members (000s) driven by eHealth’s omni-channel 73 77 engagement model 46% 40% 52 53 Q
Slide 8: Medicare Major Medical Online Application %
Q2 2020 Medicare Major Medical Online Application%(1) Medicare Major Medical Online Application % Medicare Major Medical Online Application % On track to achieve 37% online 30% penetration for FY 2020, ahead of 34% goal 11% Q2-FY19 Q2-FY20 (1) Major Medicare plans include Medicare Advantage and Medi
Slide 9: IFP Segment Revenue and Profit
Q2 2020 IFP Segment Revenue and Profit IFP Segment Revenue IFP Segment Profit Individual, Family and Small Business Segment Individual, Family and Small Business Segment Revenue ($MM) Profit ($MM) $ 13.5 $ 5.3 -38% -51% $ 8.4 $ 2.6 Q2-FY19 Q2-FY20 Q2-FY19 Q2-FY20 8
Slide 10: Trailing Twelve Months ("TTM") Medicare Segment Commissions Cash Collections
Trailing Twelve Months (“TTM”) Medicare Segment Commissions Cash Collections Q2 20 TTM Medicare Segment TTM Medicare Segment Commissions Cash Collections commissions cash ($MM) collections $300 increased by 49% +41% +45% +44% +46% +50% +49% year-over-year, $250 +37% +44% ahead of Q2 +32% +32% +34% +
Slide 11: Medicare Advantage Plan Member Turnover Trend Since Q4 2018
Medicare Advantage Plan Member Turnover Trend Since Q4 2018 Q42018 Q12019 Q22019 Q32019 Q42019 Q12020 Q22020 (1) Approved Members 83,376 40,741 36,576 35,171 167,073 64,898 60,477 Estimated Beginning (Paying) Membership (2) 235,269 276,357 280,763 291,171 309,180 404,694 404,262 New Paying Members(3
Slide 12: 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 13: Increasing 2020 Guidance
Increasing 2020 Guidance For the full year ending December 31, 2020, we expect: Total revenue in the range of $630M - $670M, compared to the Corporate(3) shared service expenses, excluding stock-based previous guidance of $600M - $640M. compensation expense and depreciation and amortization, in the
Slide 14: Long Term Financial Goals – Current Case
Long Term Financial Goals – Current Case Revised 5-year Financial Plan for 2020-2024 Revenue ($MM) Adj. EBITDA ($MM) Operating Cash Flow ($MM) ~$1,500 27% Revenue CAGR $650 (1) ~$570 $464 (1) $91 $148 2019 2020 2021 2022 2023 2024 Positive OCF Adj. EBITDA Margins 20%(1) 23% 38% Medicare Online %(2)
Slide 15: Long Term Financial Goals – High Case
Long Term Financial Goals – High Case Revised 5-year Financial Plan for 2020-2024 Revenue ($MM) Adj. EBITDA ($MM) Operating Cash Flow ($MM) ~$2,050 35% Revenue CAGR ~$850 $670 (1) $464 $91 (1) $155 2019 2020 2021 2022 2023 2024 Positive OCF Adj. EBITDA Margins 20%(1) 23% 41% Medicare Online %(2) 27%
Slide 16: We have significantly raised expectations across both revenue and EBITDA
We have significantly raised expectations across both revenue and EBITDA Base Case High Case ~$1,600MM ~$1,300MM 2023 Revenue $1,000MM $700MM Previous(1) New Previous (1) New ~$640MM 2023 Adj. EBITDA ~$480MM $350MM $225MM Previous (1) New Previous (1) New (1) “Previous” refers to projections eHealth
Slide 17: Medicare Advantage LTV Forecast with Estimated Impact of Near Term Initiatives
Medicare Advantage LTV Forecast with Estimated Impact of Near Term Initiatives Expected rate increases and 2020 Medicare Advantage LTV & Estimated Impact of Near Term Initiatives estimated total impact of near term 250 bps initiatives would 150 bps 100 bps improve FY 2021 MA 200 bps 2019 MA LTV 500