NASDAQ$EHTH

eHealth Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported strong revenue growth driven by Medicare and Individual, Family and Small Business segments, but experienced a net loss due to increased operating costs and expenses.

eHealth, Inc. announced its third quarter 2020 financial results, with revenue increasing by 35% to $94.3 million compared to the third quarter of 2019. However, the company reported a GAAP net loss of $14.5 million, compared to a net loss of $11.0 million in the same period last year.

  • Revenue for Q3 2020 was $94.3 million, a 35% increase year-over-year.
  • GAAP net loss for Q3 2020 was $14.5 million, compared to a net loss of $11.0 million in Q3 2019.
  • Adjusted EBITDA was $(13.3) million for Q3 2020, compared to $(18.8) million for Q3 2019.
  • Net cash provided by operating activities for Q3 2020 was $1.4 million, compared to net cash used in operating activities of $15.9 million for Q3 2019.

Headline financials

Total Revenue

$94.3M

Previous: $69.9M+34.9%
EPS (adj)

-$0.36

Previous: -$0.43+16.3%
Capital Expenditures

-$6.45M

Previous: -$5.62M-14.9%
Free Cash Flow

-$21M

Previous: -$16.6M-26.0%
Net Income

-$14.5M

Previous: -$11M-31.6%
Operating Income

-$20.8M

Previous: -$20.2M-3.0%
Gross Profit

$93.8M

Previous: $69.5M+35.0%
Cash & Equivalents

$87.8M

Previous: $88.1M-0.3%
Total Assets

$961M

Previous: $581M+65.3%
Stock-Based Comp

$6.33M

Previous: $5.51M+14.9%

Revenue & EPS history

eHealth · Revenue · Quarterly

$94.3M

Q3 2020+34.9%vs Q3 2019
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

eHealth · $94.3M total across 2 segments · Q3 2020

  • Medicare
    $70.4M+23.0%
  • Employer and Individual
    $23.9M+88.0%

Forward guidance

eHealth reaffirmed its full year 2020 guidance provided on July 23, 2020.

Tailwinds

  • Total revenue is expected to be in the range of $630.0 million to $670.0 million.
  • Revenue from the Medicare segment is expected to be in the range of $583.0 million to $619.0 million.
  • Revenue from the Individual, Family and Small Business segment is expected to be in the range of $47.0 million to $51.0 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.

Headwinds

  • Cash used in operations is expected to be in the range of $85.0 million to $95.0 million.
  • Cash used for capital expenditures is expected to be in the range of $23.0 million to $25.0 million.
  • Medicare segment profit is expected to be in the range of $176.0 million to $193.0 million.
  • Individual, Family and Small Business segment profit is expected to be in the range of $17.0 million to $18.0 million.
  • 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.

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 Q3 2020

Historical avgQ3 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%

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