NASDAQ$EHTH

eHealth Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported strong revenue and Medicare enrollment growth.

eHealth's Q2 2020 revenue increased by 35% to $88.8 million compared to Q2 2019. The company's GAAP net loss was $3.4 million, an improvement from the $5.8 million net loss in the same quarter last year. Adjusted EBITDA increased to $1.7 million from $0.8 million in Q2 2019.

  • Revenue for the second quarter of 2020 was $88.8 million, a 35% increase compared to $65.8 million for the second quarter of 2019.
  • GAAP net loss for the second quarter of 2020 was $3.4 million compared to net loss of $5.8 million for the second quarter of 2019.
  • Adjusted EBITDA was $1.7 million for the second quarter of 2020 compared to $0.8 million for the second quarter of 2019.
  • Net cash used in operating activities for the second quarter of 2020 was $21.3 million compared to $11.5 million for the second quarter of 2019.

Headline financials

Total Revenue

$88.8M

Previous: $65.8M+35.0%
EPS (adj)

$0.07

Previous: $0.10-30.0%
Capital Expenditures

-$4.66M

Previous: -$3.79M-23.2%
Free Cash Flow

-$8.03M

Previous: -$9.54M+15.8%
Net Income

-$3.37M

Previous: -$5.75M+41.4%
Operating Income

-$6.25M

Previous: -$12.3M+49.2%
Gross Profit

$88.2M

Previous: $65.3M+35.1%
Cash & Equivalents

$76.8M

Previous: $116M-33.7%
Total Assets

$943M

Previous: $583M+61.7%
Stock-Based Comp

$6.68M

Previous: $4.68M+42.7%

Revenue & EPS history

eHealth · Revenue · Quarterly

$88.8M

Q2 2020+35%vs Q2 2019
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

eHealth · $80.4M total across 1 segment · Q2 2020

  • Medicare
    $80.4M+53.7%

Forward guidance

eHealth is updating its guidance for the full year ending December 31, 2020. Total revenue is expected to be in the range of $630.0 million to $670.0 million. GAAP net income is expected to be in the range of $79.0 million to $94.0 million. Adjusted EBITDA is expected to be in the range of $140.0 million to $155.0 million.

Tailwinds

  • Total revenue is expected to be in the range of $630.0 million to $670.0 million, compared to the previous guidance of $600.0 million to $640.0 million.
  • Revenue from the Medicare segment is expected to be in the range of $583.0 million to $619.0 million, compared to the previous guidance of $553.0 million to $589.0 million.
  • GAAP net income is expected to be in the range of $79.0 million to $94.0 million, compared to the previous guidance of $70.0 million to $85.0 million.
  • Adjusted EBITDA is expected to be in the range of $140.0 million to $155.0 million, compared to the previous guidance of $125.0 million to $140.0 million.
  • Medicare segment profit is expected to be in the range of $176.0 million to $193.0 million, compared to the previous guidance of $157.0 million to $174.0 million.

Headwinds

  • Revenue from the Individual, Family and Small Business segment is expected to be in the range of $47.0 million to $51.0 million, consistent with the previous guidance.
  • Individual, Family and Small Business segment profit is expected to be in the range of $17.0 million to $18.0 million, consistent with the previous guidance.
  • Corporate shared service expenses, excluding stock-based compensation and depreciation and amortization, is expected to be in the range of $53.0 million to $56.0 million, compared to the previous guidance of $49.0 million to $52.0 million.
  • Cash used in operations is expected to be in the range of $85.0 million to $95.0 million, compared to the previous guidance of $61.0 million to $64.0 million.
  • Cash used for capital expenditures is expected to be in the range of $23.0 million to $25.0 million, compared to the previous guidance of $18.0 million to $20.0 million.

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 Q2 2020

Historical avgQ2 2020

-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro