Earning Date, Transcript Summary & Report

Exceptional AEP Performance: eHealth delivered outstanding AEP results, materially exceeding expectations for enrollment volumes, revenue, and earnings.

Quarterly Revenue Increase: Fourth quarter revenue grew 27% compared to a year ago, with Medicare submissions across agency and amplified fulfillment models growing 38%.

Agency Model Submission Growth: The agency model saw submissions grow by 49%, well above the overall Medicare market.

GAAP Net Income Profitability: The company was profitable on a GAAP net income basis for both the fourth quarter and the full year 2024.

EBITDA Growth and Margin Expansion: Fourth quarter adjusted EBITDA grew in excess of 70% compared to a year ago, representing meaningful margin expansion.

MA Plan Disruption Impact: The company observed unprecedented disruption to MA plan offerings, leading to elevated consumer demand as beneficiaries sought better coverage options.

Commission Suppression Strategy: eHealth successfully navigated commission suppression challenges due to its broad selection of plans and carrier agnostic strategy.

Direct Channel Enrollment Growth: The marketing organization achieved over 100% growth in fourth quarter enrollments from direct channels compared to the previous year.

Medicare Advantage LTV Improvement: The Medicare Advantage LTV to CAC ratio improved from 1.5x in Q4 2023 to 2x in Q4 2024, indicating better unit economics.

Record Revenue and Net Income: The company reported record-high revenue and net income for any quarter in its history, with fourth quarter revenue reaching $315.2 million and net income increasing 87% to $97.5 million.

Medicare Revenue Growth: The Medicare segment revenue grew 31%, with total Medicare submissions increasing 38% across agency and Amplify enrollments.

Medicare Acquisition Cost Improvement: Acquisition costs per approved Medicare member improved by 23%, driven by enhanced lead quality and higher conversions.

Strong Liquidity Position: The company ended the year with $82.2 million in cash, cash equivalents, and marketable securities, indicating strong liquidity.

Revenue and EBITDA Targets: eHealth is tracking nicely against its three-year revenue and adjusted EBITDA targets, with a goal to grow at an 8% to 10% revenue CAGR between 2023 and 2026.

Volume Performance Concerns: Amplify volume came in below expectations, indicating a potential weakness in the carrier-dedicated fulfillment model.

Medicare Advantage Market Uncertainty: The Medicare Advantage market is expected to remain fluid, making it difficult to predict consumer demand for the upcoming AEP, which could impact future revenues.

Flat Revenue Outlook: The company anticipates a relatively flat revenue outlook compared to the previous year, suggesting a lack of growth momentum.

Enrollment Volume Decline: Due to recent regulatory changes, the company expects a decline in enrollment volume in Q2 and Q3, which could negatively affect overall performance during those periods.

EBITDA Decline Forecast: The forecast for adjusted EBITDA is expected to decline at each quarter relative to the same periods a year ago, indicating potential profitability challenges ahead.