NASDAQ$EHTH

eHealth Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Announced fourth quarter and fiscal year 2020 results, demonstrating progress in building capabilities and positioning for future market opportunities.

eHealth, Inc. reported a decrease in revenue for the fourth quarter of 2020, totaling $293.3 million, a 3% decrease compared to the fourth quarter of 2019. GAAP net income for the quarter was $59.9 million, a 33% decrease compared to the same period in the previous year. The company made investments in its e-commerce platform and implemented a program to improve member retention.

  • Revenue for the fourth quarter of 2020 was $293.3 million, a 3% decrease compared to $301.7 million for the fourth quarter of 2019.
  • GAAP net income for the fourth quarter of 2020 was $59.9 million compared to net income of $88.8 million for the fourth quarter of 2019.
  • Adjusted EBITDA was $84.2 million for the fourth quarter of 2020 compared to $142.6 million for the fourth quarter of 2019.
  • Fourth quarter 2020 approved members for Medicare Advantage products of 217,278, a 30% increase compared to the fourth quarter of 2019.

Headline financials

Total Revenue

$293M

Previous: $302M-2.8%
EPS (adj)

$2.32

Previous: $4.13-43.8%
Capital Expenditures

$1.3M

Previous: $1.03M+26.5%
Free Cash Flow

-$98.2M

Previous: -$57.8M-69.9%
Net Income

$59.9M

Previous: $88.8M-32.5%
Operating Income

$79.4M

Previous: $123M-35.5%
Gross Profit

$291M

Previous: $300M-2.8%
Cash & Equivalents

$43.8M

Previous: $23.5M+86.5%
Total Assets

$1.04B

Previous: $742M+40.2%
Stock-Based Comp

$3.45M

Previous: $9.15M-62.3%

Revenue & EPS history

eHealth · Revenue · Quarterly

$293M

Q4 2020-2.8%vs Q4 2019
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

eHealth · $270M total across 1 segment · Q4 2020

  • Medicare
    $270M-4.5%

Forward guidance

eHealth is providing its guidance for the full year ending December 31, 2021, excluding the potential impact from the agreement with H.I.G. Capital for a $225 million investment announced on January 29, 2021.

Tailwinds

  • Total revenue is expected to be in the range of $660.0 million to $700.0 million.
  • Revenue from the Medicare segment is expected to be in the range of $621.0 million to $659.0 million.
  • Revenue from the Individual, Family and Small Business segment is expected to be in the range of $39.0 million to $41.0 million.
  • GAAP net income is expected to be in the range of $42.0 million to $57.0 million.
  • Adjusted EBITDA is expected to be in the range of $100.0 million to $115.0 million.

Headwinds

  • Medicare segment profit is expected to be in the range of $138.0 million to $155.0 million.
  • Individual, Family and Small Business segment profit is expected to be in the range of $18.0 million to $19.0 million.
  • Corporate shared service expenses, excluding stock-based compensation and depreciation and amortization expense, is expected to be in the range of $56.0 million to $59.0 million.
  • Cash used in operations is expected to be in the range of $85.0 million to $95.0 million, and cash used for capital expenditures is expected to be in the range of $24.0 million to $27.0 million.
  • GAAP net income per diluted share is expected to be in the range of $1.53 to $2.08 per share.

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 Q4 2020

Historical avgQ4 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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