NASDAQ$EHTH

eHealth Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

eHealth's first quarter results reflected revenue in-line and adjusted EBITDA ahead of expectations, driven by cost transformation initiatives and a focus on profitable growth through enrollment quality and online business scaling.

eHealth, Inc. reported a total revenue of $105.3 million for Q1 2022, a 22% decrease compared to Q1 2021. The company's GAAP net loss was $(32.7) million, while adjusted EBITDA was $(24.8) million. The company is focusing on profitable growth, with initiatives to improve enrollment quality and scale its online business.

  • Financial results reflected the impact of enrollment quality initiatives on telephonic conversion rates and a deceleration of telephonic enrollment.
  • Enrollment quality initiatives led to substantial improvement in retention rates and quality scores for Q4 2021 Medicare Advantage enrollments.
  • Online business scaled with a 50% year-over-year increase in online unassisted Medicare Advantage enrollments.
  • The company is on track to generate approximately $60 million in annualized cost savings this year.

Headline financials

Total Revenue

$105M

Previous: $134M-21.6%
EPS (adj)

-$0.91

Previous: $0.36-352.8%
Capital Expenditures

-$55K

Previous: -$1.9M+97.1%
Free Cash Flow

-$32.8M

Previous: -$2.7M-1115.2%
Net Income

-$32.7M

Previous: -$800K-3992.8%
Operating Income

-$39.7M

Previous: -$642K-6086.0%
Gross Profit

$105M

Previous: $133M-21.1%
Cash & Equivalents

$221M

Previous: $92.3M+139.1%
Total Assets

$1.16B

Previous: $1.02B+14.3%
Stock-Based Comp

$5.29M

Previous: $11.4M-53.6%

Revenue & EPS history

eHealth · Revenue · Quarterly

$105M

Q1 2022-21.6%vs Q1 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

eHealth · $105M total across 2 segments · Q1 2022

  • Medicare
    $95.1M-21.4%
  • Employer and Individual
    $10.2M

Forward guidance

eHealth reaffirms its full year 2022 guidance, expecting total revenue between $448.0 million and $470.0 million, GAAP net loss between $106.0 million and $83.0 million, and adjusted EBITDA between $(64.0) million and $(37.0) million.

Tailwinds

  • Total revenue is expected to be in the range of $448.0 million to $470.0 million.
  • GAAP net loss is expected to be in the range of $106.0 million to $83.0 million.
  • Adjusted EBITDA is expected to be in the range of $(64.0) million to $(37.0) million.
  • Total cash outflow, excluding the impact of our $70.0 million term loan and associated costs, is expected to be in the range of $140.0 million to $120.0 million.
  • Reaffirming full year 2022 guidance.

Headwinds

  • GAAP net loss is expected to be in the range of $106.0 million to $83.0 million.
  • Adjusted EBITDA is expected to be in the range of $(64.0) million to $(37.0) million.
  • Total cash outflow, excluding the impact of our $70.0 million term loan and associated costs, is expected to be in the range of $140.0 million to $120.0 million.
  • First quarter financial results reflected the impact of our enrollment quality initiatives on telephonic conversion rates.
  • Intentional deceleration of our telephonic enrollment in 2022 as we focus on returning to profitable growth.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-1.0%

Avg return

Earnings day

-1.1%

Avg return

5 days after

+0.6%

Avg return

30 days after

45%

29 / 65 earnings

Positive

+25.2%

Q3 2022

Best reaction

-34.3%

Q2 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.5%-7.1%-12.7%
Q4 2025-30.7%-17.5%-32.3%
Q3 2025-21.8%-16.2%-22.9%
Q1 2025+23.2%+19.2%-8.1%
Q4 2024+3.3%-5.7%-28.2%
Q3 2024+9.2%+3.5%+12.2%
Q2 2024-12.8%-7.7%-18.8%
Q1 2024+12.4%+8.2%+9.4%
Q4 2023-8.2%-7.1%-14.6%
Q3 2023-8.5%-11.7%+2.1%
Q2 2023-0.1%-1.1%-14.2%
Q1 2023+15.1%+8.2%+49.1%
Q4 2022-8.4%+2.5%+5.4%
Q3 2022+25.2%+27.8%+47.4%
Q2 2022-2.7%+16.8%-32.2%
Q1 2022+22.5%+31.1%+31.1%
Q4 2021-16.7%-25.5%-20.1%
Q3 2021-25.8%-30.7%-35.2%
Q2 2021-5.9%-9.3%-28.6%
Q1 2021-0.7%-5.2%-8.4%
Q4 2020+5.9%+6.6%+19.4%
Q3 2020-6.8%-8.2%-8.7%
Q2 2020-31.1%-36.9%-40.3%
Q1 2020-8.1%-7.1%+12.4%
Q4 2019-0.6%-13.7%-22.3%
Q3 2019+0.2%+10.8%+39.3%
Q2 2019+24.8%+21.5%+10.5%
Q1 2019+3.7%-2.0%+4.3%
Q4 2018-3.6%-7.2%-4.9%
Q3 2018+13.2%+15.2%+23.0%
Q2 2018-3.6%-1.2%+24.6%
Q1 2018+17.3%+21.6%+31.9%
Q4 2017-16.2%-4.1%-12.2%
Q3 2017+7.0%+15.3%+3.5%
Q2 2017-5.3%-8.3%+23.3%
Q1 2017+23.2%+39.6%+59.9%
Q4 2016+8.9%+6.3%+2.5%
Q3 2016-31.8%-30.2%-5.6%
Q2 2016-29.4%-32.2%-18.6%
Q1 2016+23.2%
Q4 2015+0.7%
Q3 2015-4.2%
Q2 2015+21.4%
Q1 2015+13.5%
Q4 2014-3.6%
Q3 2014+15.4%
Q2 2014-34.3%
Q1 2014-12.3%
Q4 2013-8.5%
Q3 2013+9.6%
Q2 2013-1.8%
Q1 2013+7.3%
Q4 2012-22.8%
Q3 2012+9.5%
Q4 2011-1.1%
Q2 2012+9.7%
Q1 2011+1.0%
Q1 2012+0.6%
Q4 2009-2.5%
Q3 2010-3.1%
Q3 2011-3.1%
Q4 2010-7.0%
Q2 2011-7.0%
Q2 2010-7.0%
Q1 2010+2.0%

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