NASDAQ$EHTH

eHealth Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Announced third quarter 2022 results, reflecting cost transformation plan and improved Medicare agent productivity.

eHealth, Inc. reported a total revenue of $53.4 million and a GAAP net loss of $39.1 million for the third quarter ended September 30, 2022. The company's results reflect a reduction in member acquisition spending and an improvement in Medicare agent productivity.

  • Third quarter financial results reflect a reduction in member acquisition spending pursuant to our cost transformation plan combined with a significant improvement in Medicare agent productivity.
  • Third quarter net cash used in operating activities improved to $29.6 million from $71.0 million in the third quarter of 2021.
  • Third quarter Medicare telephonic conversion rates increased over 30% year-over-year reflecting process enhancements in our telesales organization introduced ahead of the AEP.
  • Online unassisted Medicare Advantage submitted applications grew 18% and partially assisted applications grew 39% year-over-year.

Headline financials

Total Revenue

$53.4M

Previous: $63.9M-16.5%
EPS (adj)

-$1.17

Previous: -$1.78+34.3%
Capital Expenditures

-$192K

Previous: -$3.55M+94.6%
Free Cash Flow

-$39.3M

Previous: -$56.6M+30.5%
Net Income

-$39.1M

Previous: -$53M+26.2%
Operating Income

-$48.3M

Previous: -$66M+26.9%
Gross Profit

$52.9M

Previous: $63.9M-17.2%
Cash & Equivalents

$160M

Previous: $158M+1.7%
Total Assets

$1.05B

Previous: $1.16B-9.3%
Stock-Based Comp

$5.14M

Previous: $5.23M-1.7%

Revenue & EPS history

eHealth · Revenue · Quarterly

$53.4M

Q3 2022-16.5%vs Q3 2021
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

eHealth · $45.1M total across 1 segment · Q3 2022

  • Medicare
    $45.1M-2.7%

Forward guidance

eHealth is reiterating guidance for the full year ending December 31, 2022.

Tailwinds

  • Total revenue is expected to be in the range of $375.0 million to $395.0 million.
  • GAAP net loss is expected to be in the range of $115.0 million to $92.0 million.
  • Adjusted EBITDA is expected to be in the range of $(73.0) million to $(45.0) million.
  • Total cash outflow, excluding the impact of our $70.0 million term loan and associated costs and net securities activities, is expected to be in the range of $110.0 million to $90.0 million.
  • Company is on track to deliver more than $90 million in total cost savings in 2022 compared to 2021.

Headwinds

  • Actual results may be materially different and are affected by the risk factors and uncertainties identified in this press release and in eHealth’s annual and quarterly reports filed with the Securities and Exchange Commission.
  • Changes in laws, regulations and guidelines, including in connection with health care reform or with respect to the marketing and sale of Medicare plans.
  • Competition, including competition from government-run health insurance exchanges and other sources.
  • The seasonality of our business and the fluctuation of our operating results.
  • Changes in product offerings among carriers on our ecommerce platform and the resulting impact on our commission revenue.

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 2022

Historical avgQ3 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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