NASDAQ$EHTH

eHealth Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported a decrease in revenue due to reduced marketing spend and lower telephonic conversion rates, but achieved significant cost reductions.

eHealth, Inc. reported a decrease in revenue and a net loss for Q2 2022, impacted by reduced marketing spend and lower telephonic conversion rates. However, the company achieved significant cost reductions and saw growth in its unassisted online Medicare Advantage enrollments.

  • Total revenue for Q2 2022 was $50.4 million, reflecting the impact of $8.7 million in negative revenue adjustment.
  • GAAP net loss for Q2 2022 was $(37.5) million.
  • Adjusted EBITDA for Q2 2022 was $(33.3) million.
  • Online business scaled with a 15% year-over-year increase in unassisted online Medicare Advantage enrollments.

Headline financials

Total Revenue

$50.4M

Previous: $96.6M-47.8%
EPS (adj)

-$1.15

Previous: -$0.45-155.6%
Capital Expenditures

-$227K

Previous: -$2.71M+91.6%
Free Cash Flow

-$37.7M

Previous: -$21.1M-78.7%
Net Income

-$37.5M

Previous: -$18.4M-103.7%
Operating Income

-$45.5M

Previous: -$25.3M-79.5%
Gross Profit

$50M

Previous: $96.3M-48.1%
Cash & Equivalents

$195M

Previous: $229M-15.1%
Total Assets

$1.09B

Previous: $1.21B-9.6%
Stock-Based Comp

$5.51M

Previous: $8.25M-33.2%

Revenue & EPS history

eHealth · Revenue · Quarterly

$50.4M

Q2 2022-47.8%vs Q2 2021
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

eHealth · $50.4M total across 2 segments · Q2 2022

  • Medicare
    $41.1M-43.9%
  • Employer and Individual
    $9.35M-59.9%

Forward guidance

eHealth revised its full-year 2022 guidance, lowering revenue expectations but maintaining adjusted EBITDA and GAAP net loss outlook. The company expects a positive impact on total cash outflow due to operational decisions.

Tailwinds

  • Focusing on optimizing marketing mix to focus on the most profitable and strategically important lead generation channels.
  • Adjusting agent headcount goals for the AEP.
  • Expect a significant positive impact on our 2022 total cash outflow.
  • Revised guidance ranges to reflect the $8.7 million in negative revenue adjustment recognized in the second quarter.
  • Maintaining adjusted EBITDA and GAAP net loss outlook.

Headwinds

  • Lowering overall 2022 enrollment and revenue expectations.
  • Total revenue is expected to be in the range of $375.0 million to $395.0 million compared to our prior guidance range of $448.0 million to $470.0 million.
  • GAAP net loss is expected to be in the range of $115.0 million to $92.0 million compared to our prior guidance range of $106.0 million to $83.0 million.
  • Adjusted EBITDA is expected to be in the range of $(73.0) million to $(45.0) million compared to our prior guidance range of $(64.0) million to $(37.0) million.
  • Made the decision to reduce our variable marketing spend in the second half of the year relative to our original operating plan

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 2022

Historical avgQ2 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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