eHealth, Inc. Proclaims Preliminary Outcomes for the Fourth Quarter and Fiscal 12 months 2022

–  Fourth quarter efficiency displays important enhance in productiveness of eHealth’s telesales operations

SANTA CLARA, Calif., Jan. 24, 2023 /PRNewswire/ — eHealth, Inc. (Nasdaq: EHTH), a number one personal on-line medical insurance market, right this moment introduced preliminary, unaudited monetary outcomes and choose working metrics for the fourth quarter and monetary yr ended December 31, 2022.

“eHealth’s fourth quarter outcomes replicate the transformational initiatives that we carried out in 2022 throughout all key areas of the corporate. In the course of the fourth quarter Annual Enrollment Interval, our firm helped hundreds of People store for and enroll in healthcare plans that we consider symbolize an optimum match for them based mostly on their private preferences, healthcare wants, and budgets. We had been ready to take action whereas exceeding our value discount objectives and considerably bettering the effectivity of our gross sales and advertising organizations by emphasizing our most worthwhile advertising channels and enhancing agent productiveness,” mentioned Fran Soistman, chief govt officer of eHealth. “The Medicare market stays sturdy, reflecting a sturdy number of high quality plans, important buyer demand, and a extra rational method to enrollment progress by our friends that emphasizes profitability over growth-at-all-costs. eHealth ended 2022 with a powerful money place, and we anticipate to ship additional significant enhancements to our operational and monetary efficiency in 2023. We sit up for offering full fourth quarter and monetary yr 2022 outcomes in addition to our 2023 steerage on our upcoming fourth quarter earnings name.”

Fourth Quarter and Fiscal 12 months 2022 Preliminary Outcomes

• Income for the fourth quarter of 2022 is anticipated to be within the vary of $190 to $200 million. Income for the yr ended December 31, 2022 is anticipated to be within the vary of $395 to $405 million as in comparison with the corporate’s steerage of $375 to $395 million.
• GAAP web earnings for the fourth quarter of 2022 is anticipated to be within the vary of $16 to $21 million. GAAP web loss for the yr ended December 31, 2022 is anticipated to be within the vary of $93 to $88 million as in comparison with the corporate’s steerage of $115 to $92 million.
• Adjusted EBITDA for the fourth quarter of 2022 is anticipated to be within the vary of $40 to $50 million. Adjusted EBITDA for the yr ended December 31, 2022 is anticipated to be within the vary of $(50) to $(40) million as in comparison with the corporate’s steerage of $(73) to $(45) million.
• Whole money outflow for the yr ended December 31, 2022 (excluding the influence of our $70 million time period mortgage and related prices and web securities actions) is anticipated to be $44 million as in comparison with the corporate’s steerage of $110 to $90 million.

Choose Working Metrics

• The corporate exceeded its value discount objectives for the complete yr 2022 by delivering over $110 million in web working value financial savings in comparison with the complete yr 2021.
• Fourth quarter of 2022 telephonic conversion charges within the firm’s Medicare enterprise improved by greater than 25% in comparison with the fourth quarter of 2021.
• Medicare Benefit Accepted Functions for the fourth quarter of 2022 had been 131,235, a decline of 26% year-over-year. Medicare Benefit Accepted Functions for the yr ended December 31, 2022 had been 302,949, a decline of 24% year-over-year. Decline in accredited purposes displays a major discount in advertising prices in 2022 in comparison with 2021, which was partially offset by a rise in agent productiveness.

The preliminary, unaudited monetary outcomes and choose working metrics included on this press launch are based mostly on info obtainable as of January 24, 2023 and administration’s preliminary overview of operations for the fourth quarter and yr ended December 31, 2022. They continue to be topic to vary based mostly on administration’s ongoing overview of the Firm’s fourth-quarter and full yr outcomes and are forward-looking statements. eHealth assumes no obligation to replace these statements. The precise outcomes could also be materially totally different and are affected by the danger elements and uncertainties recognized on this press launch and in eHealth’s annual and quarterly filings with the Securities and Alternate Fee.

About eHealth

For greater than 25 years, eHealth, Inc. (Nasdaq: EHTH) has served American shoppers with modern know-how and licensed agent help to assist them discover medical insurance options that match their private wants. By means of its proprietary medical insurance market at eHealth.com and eHealthMedicare.com, eHealth has linked greater than eight million members with high quality, reasonably priced protection. eHealth presents Medicare Benefit, Medicare Complement, Medicare Half D, particular person, household, small enterprise, and ancillary plans from roughly 200 medical insurance firms nationwide.

Ahead-Wanting Statements

This press launch accommodates statements which can be forward-looking statements as outlined inside the Personal Securities Litigation Reform Act of 1995. These embrace statements concerning elements that impacted our fourth quarter efficiency; our anticipated value financial savings; our anticipated working and monetary efficiency in 2023; our anticipated income, GAAP web earnings (loss), Adjusted EBITDA and complete money outflow for the fourth quarter of 2022 and the yr ended December 31, 2022; our working value financial savings in 2022; our telephonic conversion charges in our Medicare enterprise within the fourth quarter of 2022; and our Medicare Benefit Accepted Functions for the fourth quarter of 2022.

These forward-looking statements are inherently topic to numerous dangers and uncertainties that would trigger precise outcomes to vary materially from the statements made. Particularly, we’re required by Accounting Requirements Codification 606 — Income from Contracts with Prospects to make quite a few assumptions which can be based mostly on historic tendencies and our administration’s judgment. These assumptions might change over time and have a cloth influence on our income recognition, steerage, and outcomes of operations. Please overview the assumptions said on this press launch rigorously.

The dangers and uncertainties that would trigger our outcomes to vary materially from these expressed or implied by such forward-looking statements embrace our potential to retain current members and enroll new members throughout the annual well being care open enrollment interval, the Medicare annual enrollment interval and different particular enrollment intervals; adjustments in legal guidelines, laws and pointers, together with in reference to well being care reform or with respect to the advertising and sale of Medicare plans; competitors, together with competitors from government-run medical insurance exchanges and different sources; the seasonality of our enterprise and the fluctuation of our working outcomes; our potential to precisely estimate membership, lifetime worth of commissions and commissions receivable; adjustments in product choices amongst carriers on our ecommerce platform and the ensuing influence on our fee income; our potential to execute on our progress technique within the Medicare market; the influence of the COVID-19 pandemic and different public well being crises, sickness, epidemics or pandemics on our operations, enterprise, monetary situation and progress prospects, in addition to on the final economic system; adjustments in our administration and key workers; publicity to safety dangers and our potential to safeguard the safety and privateness of confidential information; {our relationships} with medical insurance carriers; the success of our service promoting and sponsorship program; our success in advertising and promoting medical insurance plans and our unit value of acquisition; our potential to rent, practice, retain and make sure the productiveness of licensed medical insurance brokers and different workers; our potential to successfully handle our operations as our enterprise evolves and execute on our transformational plan and different strategic initiatives; the necessity for medical insurance service and regulatory approvals in reference to the advertising of Medicare-related insurance coverage merchandise; adjustments out there for personal medical insurance; shopper satisfaction of our service and actions we take to enhance the standard of enrollments; adjustments in member conversion charges; adjustments in fee charges; our potential to promote certified medical insurance plans to subsidy-eligible people and to enroll subsidy-eligible people via government-run medical insurance exchanges; our potential to take care of and improve our model id; our potential to derive desired advantages from investments in our enterprise, together with membership progress and retention initiatives; reliance on advertising companions; the influence of our direct-to-consumer mail, electronic mail, social media, phone and tv advertising efforts; timing of receipt and accuracy of fee stories; cost practices of medical insurance carriers; dependence on our operations in China; the restrictions in our debt obligations; the restrictions in our funding settlement with H.I.G; our potential to lift further capital; compliance with insurance coverage, privateness and different legal guidelines and laws; the result of litigation by which we’re and will infrequently be concerned; the efficiency, reliability and availability of our info know-how programs, ecommerce platform and underlying community infrastructure; and that our audit results in adjustments within the monetary outcomes and chosen working metrics included on this press launch. Different elements that would trigger working, monetary and different outcomes to vary are described in our most up-to-date Quarterly Report on Type 10-Q or Annual Report on Type 10-Okay filed with the Securities and Alternate Fee and obtainable on the investor relations web page of our web site at http://www.ehealthinsurance.com and on the Securities and Alternate Fee’s web site at www.sec.gov.

All forward-looking statements on this press launch are based mostly on info obtainable to us as of the date hereof, and we don’t assume any obligation to replace the forward-looking statements offered to replicate occasions that happen or circumstances that exist after the date on which they had been made, besides as required by legislation.

Non-GAAP Monetary Info

This press launch consists of Adjusted EBITDA, a monetary measure that isn’t calculated in accordance with typically accepted accounting ideas in the US (GAAP). Adjusted EBITDA is calculated by excluding the influence from most popular inventory, earnings tax expense (profit), depreciation and amortization, stock-based compensation expense, impairment costs, restructuring costs, amortization of intangible belongings, different earnings (expense), web, and different non-recurring costs from GAAP web earnings (loss) attributable to frequent stockholders. Different non-recurring costs to GAAP web earnings (loss) attributable to frequent stockholders might embrace transaction bills in reference to capital elevating transactions (whether or not debt, fairness or equity-linked) and acquisitions, whether or not or not consummated, buy worth changes and the cumulative impact of a change in accounting ideas.

eHealth believes that the presentation of Adjusted EBITDA supplies vital supplemental info to administration and traders concerning monetary and enterprise tendencies regarding eHealth’s monetary situation and outcomes of operations. Administration believes that the usage of Adjusted EBITDA supplies consistency and comparability with eHealth’s previous monetary stories. Administration additionally believes that Adjusted EBITDA supplies an extra measure of eHealth’s working outcomes and facilitates comparisons of eHealth’s core working efficiency in opposition to prior intervals and enterprise mannequin aims. This info is offered to traders with a view to facilitate further analyses of previous, current and future working efficiency and as a supplemental means to judge eHealth’s ongoing operations. eHealth believes that Adjusted EBITDA is beneficial to traders of their evaluation of eHealth’s working efficiency.

Adjusted EBITDA isn’t calculated in accordance with GAAP, and needs to be thought-about supplemental to, and never as an alternative to, or superior to, monetary measures calculated in accordance with GAAP. Adjusted EBITDA has limitations in that it doesn’t replicate the entire income and prices related to the operations of eHealth’s enterprise and doesn’t replicate earnings tax as decided in accordance with GAAP. In consequence, you shouldn’t take into account this measure in isolation or as an alternative to evaluation of eHealth’s outcomes as reported underneath GAAP. eHealth expects to proceed to incur the stock-based compensation prices and depreciation and amortization described above, and exclusion of those prices, and their associated earnings tax advantages, from Adjusted EBITDA shouldn’t be construed as an inference that these prices are uncommon or rare. eHealth compensates for these limitations by prominently disclosing GAAP web earnings (loss) and offering traders with a reconciliation from eHealth’s GAAP web earnings (loss) to Adjusted EBITDA for the related intervals.

The accompanying desk supplies extra particulars on GAAP web earnings (loss), which is probably the most immediately comparable GAAP monetary measure to Adjusted EBITDA, a non-GAAP monetary measure, and the associated reconciliation between these monetary measures.

Non-GAAP Monetary Info Reconciliation

Investor Relations Contact:

Kate Sidorovich, CFA
Senior Vice President, Investor Relations & Technique
[email protected]

SOURCE eHealth, Inc.