Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'EHTH | ' |
Entity Registrant Name | 'eHealth, Inc. | ' |
Entity Central Index Key | '0001333493 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 18,621,347 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Current Assets: | ' | ' | ||
Cash and cash equivalents | $97,751 | $140,849 | ||
Accounts receivable | 6,599 | 4,468 | ||
Deferred income taxes | 7,115 | 4,098 | ||
Prepaid expenses and other current assets | 6,720 | 6,643 | ||
Total current assets | 118,185 | 156,058 | ||
Property and equipment, net | 10,677 | 6,185 | ||
Deferred income taxes | 4,198 | 2,928 | ||
Other assets | 6,082 | 8,123 | ||
Intangible assets, net | 7,850 | 8,911 | ||
Goodwill | 14,096 | 14,096 | ||
Total assets | 161,088 | 196,301 | ||
Current Liabilities: | ' | ' | ||
Accounts payable | 4,230 | 6,123 | ||
Accrued compensation and benefits | 10,764 | 8,244 | ||
Accrued marketing expenses | 3,746 | 3,941 | ||
Deferred revenue | 4,353 | 926 | ||
Other current liabilities | 2,969 | 1,575 | ||
Total current liabilities | 26,062 | 20,809 | ||
Non-current liabilities | 6,222 | 4,625 | ||
Stockholders' equity: | ' | ' | ||
Common stock | 28 | 27 | ||
Additional paid-in capital | 246,190 | 232,903 | ||
Treasury stock, at cost | -149,998 | [1] | -90,991 | [1] |
Retained earnings | 32,424 | 28,743 | ||
Accumulated other comprehensive income | 160 | 185 | ||
Total stockholders' equity | 128,804 | 170,867 | ||
Total liabilities and stockholders' equity | $161,088 | $196,301 | ||
[1] | Cumulative balances at December 31, 2012 and September 30, 2013 consist of shares repurchased in connection with our stock repurchase program announced on September 10, 2012, as well as previous stock repurchase plans announced in 2011, 2010 and 2008. |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenue | ' | ' | ' | ' |
Commission | $36,000 | $31,291 | $109,193 | $93,358 |
Other | 6,008 | 6,295 | 15,822 | 16,810 |
Total revenue | 42,008 | 37,586 | 125,015 | 110,168 |
Operating costs and expenses: | ' | ' | ' | ' |
Cost of revenue | 806 | 1,099 | 4,441 | 3,538 |
Marketing and advertising | 14,852 | 13,988 | 43,448 | 39,142 |
Customer care and enrollment | 8,936 | 8,823 | 23,914 | 21,152 |
Technology and content | 9,117 | 5,503 | 23,585 | 16,018 |
General and administrative | 7,540 | 6,744 | 22,191 | 19,938 |
Amortization of intangible assets | 354 | 354 | 1,061 | 1,261 |
Total operating costs and expenses | 41,605 | 36,511 | 118,640 | 101,049 |
Income from operations | 403 | 1,075 | 6,375 | 9,119 |
Other income (expense), net | -22 | 4 | -68 | 41 |
Income before provision for income taxes | 381 | 1,079 | 6,307 | 9,160 |
Provision for income taxes | 207 | 874 | 2,626 | 4,525 |
Net income | 174 | 205 | 3,681 | 4,635 |
Net Income Per Share: | ' | ' | ' | ' |
Basic | $0.01 | $0.01 | $0.19 | $0.24 |
Diluted | $0.01 | $0.01 | $0.18 | $0.23 |
Weighted-average number of shares used in per share amounts: | ' | ' | ' | ' |
Basic | 18,436 | 19,970 | 19,310 | 19,711 |
Diluted | 19,096 | 20,750 | 19,912 | 20,563 |
Comprehensive income: | ' | ' | ' | ' |
Foreign currency translation adjustment | -7 | 3 | -25 | 1 |
Comprehensive income | $167 | $208 | $3,656 | $4,636 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements Of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating activities | ' | ' |
Net income | $3,681 | $4,635 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Deferred income taxes | -3,951 | 15 |
Depreciation and amortization | 2,290 | 1,740 |
Amortization of book-of-business consideration | 2,822 | 1,990 |
Amortization of intangible assets | 1,061 | 1,261 |
Stock-based compensation expense | 5,361 | 4,326 |
Deferred rent and other | 917 | 51 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -2,131 | 4,799 |
Prepaid expenses and other assets | -852 | -656 |
Accounts payable | -1,895 | 2,180 |
Accrued compensation and benefits | 2,504 | 913 |
Accrued marketing expenses | -196 | -2,332 |
Deferred revenue | 3,794 | 390 |
Other current liabilities | 1,370 | 341 |
Net cash provided by operating activities | 14,775 | 19,653 |
Investing activities | ' | ' |
Purchases of property and equipment | -6,735 | -3,128 |
Consideration paid in connection with book-of-business transfers | ' | -6,243 |
Net cash used in investing activities | -6,735 | -9,371 |
Financing activities | ' | ' |
Proceeds from exercise of common stock options | 4,650 | 4,014 |
Cash used to net-share settle equity awards | -940 | -991 |
Excess tax benefits from stock-based compensation | 4,217 | 2,358 |
Repurchase of common stock | -59,007 | -8,441 |
Principal payments in connection with capital leases | -41 | -31 |
Net cash used in financing activities | -51,121 | -3,091 |
Effect of exchange rate changes on cash and cash equivalents | -17 | 2 |
Net decrease in cash and cash equivalents | -43,098 | 7,193 |
Cash and cash equivalents at beginning of period | 140,849 | 123,607 |
Cash and cash equivalents at end of period | $97,751 | $130,800 |
Summary_Of_Business_And_Signif
Summary Of Business And Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Summary Of Business And Significant Accounting Policies [Abstract] | ' |
Summary Of Business And Significant Accounting Policies | ' |
Note 1 - Summary of Business and Significant Accounting Policies | |
Description of Business—eHealth, Inc. (the “Company,” “eHealth,” “we” or “us”) is the leading online source of health insurance for individuals, families and small businesses in the United States. Through our website addresses (www.eHealth.com, www.eHealthInsurance.com, www.eHealthMedicare.com and www.PlanPrescriber.com), consumers can get quotes from leading health insurance carriers, compare plans side-by-side, and apply for and purchase individual and family, Medicare-related, small business and ancillary health insurance plans. We actively market the availability of Medicare-related insurance plans and offer Medicare plan comparison tools and educational materials for Medicare-related insurance plans, including Medicare Advantage, Medicare Supplement and Medicare Part D prescription drug plans. Our ecommerce technology also enables us to deliver consumers’ health insurance applications electronically to health insurance carriers. As a result, we simplify and streamline the complex and traditionally paper-intensive health insurance sales and purchasing process. We are licensed to market and sell health insurance in all 50 states and the District of Columbia. | |
Basis of Presentation—The accompanying condensed consolidated balance sheet as of September 30, 2013, the condensed consolidated statements of comprehensive income for the three and nine months ended September 30, 2012 and 2013 and the condensed consolidated statements of cash flows for the nine months ended September 30, 2012 and 2013, respectively, are unaudited. The condensed consolidated balance sheet data as of December 31, 2012 was derived from the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2012, which was filed with the Securities and Exchange Commission on March 13, 2013. The accompanying statements should be read in conjunction with the audited consolidated financial statements and related notes contained in our Annual Report on Form 10-K. | |
The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, for interim financial information. Accordingly, they do not include all of the financial information and footnotes required by U.S. GAAP for complete financial statements. The unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2012, and include all adjustments necessary for the fair presentation of eHealth’s statement of financial position as of September 30, 2013, its results of operations for the three and nine months ended September 30, 2012 and 2013 and its cash flows for the nine months ended September 30, 2012 and 2013. All adjustments are of a normal recurring nature. The results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for any subsequent period or for the fiscal year ending December 31, 2013. | |
Seasonality—The number of individual and family health insurance applications submitted through our ecommerce platform has generally increased in our first quarter compared to our fourth quarter and in our third quarter compared to our second quarter. Conversely, we have generally experienced a decline or flattening of individual and family submitted applications in our second quarter compared to our first quarter and in our fourth quarter compared to our third quarter. This seasonality could change in the fourth quarter of 2013 as a result of the initial open enrollment period under the federal Patient Protection and Affordable Care Act and related amendments in the Health Care and Education Reconciliation Act, which began on October 1, 2013 and is scheduled to run through March 31, 2014. | |
The majority of Medicare plans are sold in our fourth quarter during the Medicare annual enrollment period, when Medicare-eligible individuals are permitted to change their Medicare Advantage and Medicare Part D prescription drug coverage for the following year. As a result, we generate a significant amount of Medicare plan-related revenue in the fourth quarter of the year resulting from the sale of new Medicare plans. Additionally, we recognize a majority of our renewal Medicare Advantage and Medicare Part D prescription drug plan commission revenue in the first quarter of each year as the majority of policies sold during the annual enrollment period typically renew on January 1 of each year. | |
Since a significant portion of our marketing and advertising expenses are driven by the number of health insurance applications submitted on our ecommerce platform, those expenses are influenced by these patterns. As a result, marketing and advertising expenses related to individual and family health insurance plans have been highest in our first and third quarters, while marketing and advertising expenses related to Medicare-related plans have been highest in our third and fourth quarters. However, the historical trend of marketing and advertising expenses related to individual and family health insurance plans could be impacted by the initial open enrollment period for individual and family plans that began on October 1, 2013. | |
Additionally, in preparation for the Medicare annual enrollment period, and to a lesser extent the initial open enrollment period for individual and family plans, we begin ramping up our customer care center staff during our second and third quarters to handle the anticipated increased volume of health insurance transactions during the fourth quarter. Accordingly, our customer care center staffing costs are significantly higher in our third and fourth quarters compared to our first and second quarters. | |
Recently Adopted Accounting Standards—Effective January 1, 2013, we adopted an accounting standards update with new guidance on the presentation of reclassifications from accumulated other comprehensive income to net income. This standard requires an entity to present reclassifications from accumulated other comprehensive income to net income either on the face of the condensed consolidated financial statements or in the notes to the condensed consolidated financial statements. In the nine months ended September 30, 2013 we did not have any reclassifications from accumulated other comprehensive income to net income. | |
Cash_Cash_Equivalents_And_Acco
Cash, Cash Equivalents And Accounts Receivable | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Cash, Cash Equivalents And Accounts Receivable [Abstract] | ' | |||||
Cash, Cash Equivalents And Accounts Receivable | ' | |||||
Note 2 – Cash, Cash Equivalents and Accounts Receivable | ||||||
Cash and Cash Equivalents—As of December 31, 2012 and September 30, 2013, our cash equivalents consisted of money market accounts that invested in U.S. government-sponsored enterprise bonds and discount notes, U.S. government treasury bills and notes and repurchase agreements collateralized by U.S. government obligations. At December 31, 2012 and September 30, 2013, our cash equivalents carried no unrealized gains or losses and we did not realize any significant gains or losses on sales of cash equivalents during the three and nine months ended September 30, 2012 and 2013. | ||||||
As of December 31, 2012 and September 30, 2013, our cash and cash equivalent balances were invested as follows (in thousands): | ||||||
31-Dec-12 | 30-Sep-13 | |||||
Cash | $ | 27,484 | $ | 19,632 | ||
Money market funds | 113,365 | 78,119 | ||||
Total cash and cash equivalents | $ | 140,849 | $ | 97,751 | ||
We used observable prices in active markets in determining the classification of our money market funds as Level 1 as of December 31, 2012 and September 30, 2013. | ||||||
Accounts Receivable—As of December 31, 2012 and September 30, 2013, our accounts receivable consisted of the following (in thousands): | ||||||
31-Dec-12 | 30-Sep-13 | |||||
Accounts receivable - from other revenues | $ | 3,319 | $ | 3,340 | ||
Commissions receivable | 1,149 | 3,259 | ||||
Total accounts receivable | $ | 4,468 | $ | 6,599 | ||
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Stockholders' Equity [Abstract] | ' | |||||||||||
Stockholders' Equity | ' | |||||||||||
Note 3 – Stockholders’ Equity | ||||||||||||
Stock Plans—The following table summarizes activity under our 2006 Equity Incentive Plan, 1998 Stock Plan and 2005 Stock Plan (collectively, the “Stock Plans”) (in thousands): | ||||||||||||
Shares Available for Grant (1) | ||||||||||||
Shares available for grant December 31, 2012 | 3,982 | |||||||||||
Additional shares authorized (2) | 818 | |||||||||||
Restricted stock units granted | -564 | |||||||||||
Options granted | -119 | |||||||||||
Restricted stock units cancelled | 21 | |||||||||||
Options cancelled | 72 | |||||||||||
Shares available for grant September 30, 2013 | 4,210 | |||||||||||
-1 | Shares available for grant do not include treasury stock shares that could also become available for grant if we determined to do so. | |||||||||||
-2 | On January 1, 2013, the number of shares authorized for issuance under the 2006 Equity Incentive Plan was automatically increased pursuant to the terms of the 2006 Equity Incentive Plan. | |||||||||||
The following table summarizes stock option activity under the Stock Plans (in thousands, except per share amounts and weighted average remaining contractual life data): | ||||||||||||
Number of Stock Options | Weighted Average Exercise Price | Weighted-Average Remaining Contractual Life (years) | Aggregate Intrinsic Value (1) | |||||||||
Balance outstanding at December 31, 2012 | 2,956 | $ | 13.41 | 3.91 | $ | 41,642 | ||||||
Granted | 119 | $ | 21.18 | |||||||||
Exercised | -834 | $ | 5.57 | |||||||||
Cancelled | -72 | $ | 18.52 | |||||||||
Balance outstanding at September 30, 2013 | 2,169 | $ | 16.68 | 4.21 | $ | 33,784 | ||||||
Vested and expected to vest at September 30, 2013 | 2,108 | $ | 16.65 | 4.17 | $ | 32,911 | ||||||
Exercisable at September 30, 2013 | 1,389 | $ | 16.14 | 3.48 | $ | 22,389 | ||||||
-1 | The aggregate intrinsic value is calculated as the difference between eHealth’s closing stock price as of December 31, 2012 and September 30, 2013 and the exercise price of in-the-money options as of those dates. | |||||||||||
The total grant date fair value of stock options vested during the three and nine months ended September 30, 2012 was $0.5 million and $1.9 million, respectively. The total grant date fair value of stock options vested during the three and nine months ended September 30, 2013 was $0.7 million and $2.6 million, respectively. | ||||||||||||
The following table summarizes restricted stock unit activity, including performance-based restricted stock unit activity, under the Stock Plans (in thousands, except weighted average remaining contractual life data): | ||||||||||||
Number Outstanding | Weighted-Average Remaining Contractual Life (years) | Aggregate Intrinsic Value (1) | ||||||||||
Balance outstanding as of December 31, 2012 | 381 | 2.22 | $ | 10,464 | ||||||||
Granted | 564 | |||||||||||
Vested | -172 | |||||||||||
Cancelled | -21 | |||||||||||
Balance outstanding as of September 30, 2013 | 752 | 2.55 | $ | 24,248 | ||||||||
-1 | The aggregate intrinsic value is calculated as eHealth’s closing stock price as of December 31, 2012 and September 30, 2013 multiplied by the number of restricted stock units outstanding as of December 31, 2012 and September 30, 2013, respectively. | |||||||||||
The fair value of the restricted stock units is based on eHealth’s stock price on the date of grant, and compensation expense related to these awards is recognized on a straight-line basis over the vesting period. The fair value of performance-based restricted stock units is based on eHealth’s stock price on the date of grant, and compensation expense related to these awards is recognized on an accelerated basis over the vesting period. The total grant date fair value of restricted stock units vested during the nine months ended September 30, 2012 was $3.7 million. The total grant date fair value of restricted stock units vested during the three months ended September 30, 2012 was not material. The total grant date fair value of restricted stock units vested during the three and nine months ended September 30, 2013 was $0.2 million and $3.5 million, respectively. | ||||||||||||
Stock Repurchase Programs—On September 10, 2012, we announced that our board of directors approved a stock repurchase program authorizing us to purchase up to $30 million of our common stock and on March 6, 2013, we announced that our board of directors increased the approved repurchase amount under this program to $60 million. Purchases under this program were made in the open market and complied with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The cost of the repurchased shares was funded from available working capital. | ||||||||||||
For accounting purposes, common stock repurchased under our stock repurchase programs is recorded based upon the settlement date of the applicable trade. Such repurchased shares are held in treasury and are presented using the cost method. | ||||||||||||
Stock repurchase activity under our stock repurchase programs during the nine months ended September 30, 2013 is summarized as follows (dollars in thousands, except share and per share amounts): | ||||||||||||
Total Number of Shares Purchased | Average Price Paid per Share (2) | Amount of Repurchase | ||||||||||
Cumulative balance at December 31, 2012 (1) | 6,397,803 | $ | 14.22 | $ | 90,991 | |||||||
Repurchases of common stock | 2,911,466 | $ | 20.27 | 59,007 | ||||||||
Cumulative balance at September 30, 2013 (1) | 9,309,269 | $ | 16.11 | $ | 149,998 | |||||||
-1 | Cumulative balances at December 31, 2012 and September 30, 2013 consist of shares repurchased in connection with our stock repurchase program announced on September 10, 2012, as well as previous stock repurchase plans announced in 2011, 2010 and 2008. | |||||||||||
(2)Average price paid per share includes commissions. | ||||||||||||
In addition to the shares repurchased under our repurchase programs as of September 30, 2013, we have in treasury 209,925 shares that were previously surrendered by employees to satisfy tax withholdings due in connection with the vesting of certain restricted stock units. As of December 31, 2012 and September 30, 2013, we had a total of 6,556,303 shares and 9,519,194 shares, respectively, held in treasury. | ||||||||||||
Stock-Based Compensation—The fair value of stock options granted to employees for the three and nine months ended September 30, 2012 and 2013 was estimated using the following weighted average assumptions: | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||
Expected term | 4.6 years | 4.3 years | 4.7 years | 4.3 years | ||||||||
Expected volatility | 43.3% | 39.8% | 44.3% | 39.7% | ||||||||
Expected dividend yield | 0% | 0% | 0% | 0% | ||||||||
Risk-free interest rate | 0.61% | 1.13% | 0.90% | 0.79% | ||||||||
Weighted-average fair value | $ | 6.46 | $ | 8.39 | $ | 6.41 | $ | 7.02 | ||||
The following table summarizes stock-based compensation expense recorded during the three and nine months ended September 30, 2012 and 2013 (in thousands): | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||
Common stock options | $ | 717 | $ | 654 | $ | 2,076 | $ | 2,103 | ||||
Restricted stock units | 622 | 1,291 | 2,250 | 3,258 | ||||||||
Total stock-based compensation expense | $ | 1,339 | $ | 1,945 | $ | 4,326 | $ | 5,361 | ||||
The following table summarizes stock-based compensation expense by operating function for the three and nine months ended September 30, 2012 and 2013 (in thousands): | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||
Marketing and advertising | $ | 330 | $ | 517 | $ | 932 | $ | 1,446 | ||||
Customer care and enrollment | 90 | 92 | 243 | 261 | ||||||||
Technology and content | 233 | 425 | 783 | 1,129 | ||||||||
General and administrative | 686 | 911 | 2,368 | 2,525 | ||||||||
Total stock-based compensation expense | $ | 1,339 | $ | 1,945 | $ | 4,326 | $ | 5,361 | ||||
Income_Taxes
Income Taxes | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||||||
Income Taxes | ' | ||||||||||||||||
Note 4 – Income Taxes | |||||||||||||||||
The following table summarizes our provision for income taxes and our effective tax rates for the three and nine months ended September 30, 2012 and 2013 (in thousands, except effective tax rate): | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2012 | 2013 | 2012 | 2013 | ||||||||||||||
Income before provision for income taxes | $ | 1,079 | $ | 381 | $ | 9,160 | $ | 6,307 | |||||||||
Provision for income taxes | $ | 874 | $ | 207 | $ | 4,525 | $ | 2,626 | |||||||||
Effective tax rate | 81.0% | 54.3% | 49.4% | 41.6% | |||||||||||||
Our effective tax rate in the three and nine months ended September 30, 2012 was higher than statutory federal and state tax rates due primarily to non-deductible lobbying expenses and tax shortfalls related to share-based payments. Our effective tax rate in the three and nine months ended September 30, 2013 was higher than statutory federal and state tax rates due primarily to non-deductible lobbying expenses, partially offset by a tax benefit resulting from the recent extension of the federal research tax credit through December 31, 2013. | |||||||||||||||||
During the three and nine months ended September 30, 2012, we utilized excess federal and state tax benefits related to share-based payments, which resulted in increases of $1.2 million and $2.4 million, respectively, in Additional Paid-In Capital in the condensed consolidated balance sheets. During the three and nine months ended September 30, 2013, we utilized excess federal and state tax benefits related to share-based payments, which resulted in increases of $0.3 million and $4.2 million, respectively, in Additional Paid-In Capital in the condensed consolidated balance sheets. These amounts are also classified in the condensed consolidated statements of cash flows as both a reduction to operating cash flows and as a financing cash inflow. | |||||||||||||||||
Net_Income_Per_Share
Net Income Per Share | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Net Income Per Share [Abstract] | ' | |||||||||||
Net Income Per Share | ' | |||||||||||
Note 5 – Net Income Per Share | ||||||||||||
Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding for the period (excluding shares subject to repurchase). Diluted net income per share is computed by dividing the net income for the period by the weighted average number of common and common equivalent shares outstanding during the period. Diluted net income per share is computed giving effect to all potential dilutive common stock equivalent shares, including options, restricted stock and restricted stock units. The dilutive effect of outstanding awards is reflected in diluted net income per share by application of the treasury stock method. | ||||||||||||
The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share amounts): | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||
Basic: | ||||||||||||
Numerator: | ||||||||||||
Net income allocated to common stock | $ | 205 | $ | 174 | $ | 4,635 | $ | 3,681 | ||||
Denominator: | ||||||||||||
Net weighted average number of common stock shares outstanding | 19,970 | 18,436 | 19,711 | 19,310 | ||||||||
Net income per share—basic: | $ | 0.01 | $ | 0.01 | $ | 0.24 | $ | 0.19 | ||||
Diluted: | ||||||||||||
Numerator: | ||||||||||||
Net income allocated to common stock | $ | 205 | $ | 174 | $ | 4,635 | $ | 3,681 | ||||
Denominator: | ||||||||||||
Net weighted average number of common stock shares outstanding | 19,970 | 18,436 | 19,711 | 19,310 | ||||||||
Weighted average number of options | 703 | 528 | 750 | 478 | ||||||||
Weighted average number of restricted stock units | 77 | 132 | 102 | 124 | ||||||||
Total common stock shares used in per share calculation | 20,750 | 19,096 | 20,563 | 19,912 | ||||||||
Net income per share—diluted: | $ | 0.01 | $ | 0.01 | $ | 0.23 | $ | 0.18 | ||||
For each of the three- and nine- month periods ended September 30, 2012 and 2013, we had securities outstanding that could potentially dilute net income per share, but the shares from the assumed exercise of these securities were excluded in the computation of diluted net income per share as their effect would have been anti-dilutive. The number of outstanding weighted average anti-dilutive shares that were excluded from the computation of diluted net income per share consisted of the following (in thousands): | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||
Common stock options | 1,484 | 127 | 1,327 | 439 | ||||||||
Total | 1,484 | 127 | 1,327 | 439 | ||||||||
Geographic_Information_And_Sig
Geographic Information And Significant Customers | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Geographic Information And Significant Customers [Abstract] | ' | |||||||
Geographic Information And Significant Customers | ' | |||||||
Note 6 – Geographic Information and Significant Customers | ||||||||
Geographic Information—As of December 31, 2012 and September 30, 2013, our long-lived assets consisted primarily of property and equipment, goodwill and other indefinite-lived intangible assets and finite-lived intangible assets. Our long-lived assets are attributed to the geographic location in which they are located. Long-lived assets by geographical area were as follows (in thousands): | ||||||||
As of | As of | |||||||
31-Dec-12 | 30-Sep-13 | |||||||
United States | $ | 37,037 | $ | 38,363 | ||||
China | 278 | 342 | ||||||
Total | $ | 37,315 | $ | 38,705 | ||||
Significant Customers—Substantially all revenue for the three and nine months ended September 30, 2012 and 2013 was generated from customers located in the United States. Carriers representing 10% or more of our total revenue in the three and nine months ended September 30, 2012 and 2013 are presented in the table below: | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2012 | 2013 | 2012 | 2013 | |||||
Humana | 19% | 18% | 16% | 20% | ||||
WellPoint (1) | 13% | 12% | 13% | 12% | ||||
UnitedHealthcare (2) | 12% | 11% | 13% | 11% | ||||
Aetna (3) | 7% | 10% | 7% | 9% | ||||
-1 | Wellpoint also includes other carriers owned by Wellpoint. | |||||||
-2 | UnitedHealthcare also includes other carriers owned by UnitedHealthcare. | |||||||
-3 | Aetna also includes other carriers owned by Aetna. | |||||||
Commission revenue attributable to major medical individual and family health insurance plans was approximately 79% and 78% of our commission revenue in the three and nine months ended September 30, 2012, respectively. Commission revenue attributable to major medical individual and family health insurance plans was approximately 74% and 72% of our commission revenue in the three and nine months ended September 30, 2013, respectively. We define our individual and family plan offerings as major medical individual and family health insurance plans, which do not include small business, Medicare-related health insurance plan offerings and other ancillary products such as short-term, stand-alone dental, life, vision, accident and student insurance plan offerings. | ||||||||
As of December 31, 2012, four customers represented 25%, 22%, 14% and 11%, respectively, for a combined total of 72% of our $4.5 million outstanding accounts receivable balance. As of September 30, 2013, two customers represented 43% and 33%, respectively of our $6.6 million outstanding accounts receivable balance. No other customers represented 10% or more of our total accounts receivable at December 31, 2012 and September 30, 2013. We believe the potential for collection issues with any of our customers is minimal as of September 30, 2013. Accordingly, our estimate for uncollectible amounts at September 30, 2013 was not material. | ||||||||
Summary_Of_Business_And_Signif1
Summary Of Business And Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2013 | |
Summary Of Business And Significant Accounting Policies [Abstract] | ' |
Description Of Business | ' |
Description of Business—eHealth, Inc. (the “Company,” “eHealth,” “we” or “us”) is the leading online source of health insurance for individuals, families and small businesses in the United States. Through our website addresses (www.eHealth.com, www.eHealthInsurance.com, www.eHealthMedicare.com and www.PlanPrescriber.com), consumers can get quotes from leading health insurance carriers, compare plans side-by-side, and apply for and purchase individual and family, Medicare-related, small business and ancillary health insurance plans. We actively market the availability of Medicare-related insurance plans and offer Medicare plan comparison tools and educational materials for Medicare-related insurance plans, including Medicare Advantage, Medicare Supplement and Medicare Part D prescription drug plans. Our ecommerce technology also enables us to deliver consumers’ health insurance applications electronically to health insurance carriers. As a result, we simplify and streamline the complex and traditionally paper-intensive health insurance sales and purchasing process. We are licensed to market and sell health insurance in all 50 states and the District of Columbia. | |
Basis Of Presentation | ' |
Basis of Presentation—The accompanying condensed consolidated balance sheet as of September 30, 2013, the condensed consolidated statements of comprehensive income for the three and nine months ended September 30, 2012 and 2013 and the condensed consolidated statements of cash flows for the nine months ended September 30, 2012 and 2013, respectively, are unaudited. The condensed consolidated balance sheet data as of December 31, 2012 was derived from the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2012, which was filed with the Securities and Exchange Commission on March 13, 2013. The accompanying statements should be read in conjunction with the audited consolidated financial statements and related notes contained in our Annual Report on Form 10-K. | |
The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, for interim financial information. Accordingly, they do not include all of the financial information and footnotes required by U.S. GAAP for complete financial statements. The unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2012, and include all adjustments necessary for the fair presentation of eHealth’s statement of financial position as of September 30, 2013, its results of operations for the three and nine months ended September 30, 2012 and 2013 and its cash flows for the nine months ended September 30, 2012 and 2013. All adjustments are of a normal recurring nature. The results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for any subsequent period or for the fiscal year ending December 31, 2013. | |
Seasonality | ' |
Seasonality—The number of individual and family health insurance applications submitted through our ecommerce platform has generally increased in our first quarter compared to our fourth quarter and in our third quarter compared to our second quarter. Conversely, we have generally experienced a decline or flattening of individual and family submitted applications in our second quarter compared to our first quarter and in our fourth quarter compared to our third quarter. This seasonality could change in the fourth quarter of 2013 as a result of the initial open enrollment period under the federal Patient Protection and Affordable Care Act and related amendments in the Health Care and Education Reconciliation Act, which began on October 1, 2013 and is scheduled to run through March 31, 2014. | |
The majority of Medicare plans are sold in our fourth quarter during the Medicare annual enrollment period, when Medicare-eligible individuals are permitted to change their Medicare Advantage and Medicare Part D prescription drug coverage for the following year. As a result, we generate a significant amount of Medicare plan-related revenue in the fourth quarter of the year resulting from the sale of new Medicare plans. Additionally, we recognize a majority of our renewal Medicare Advantage and Medicare Part D prescription drug plan commission revenue in the first quarter of each year as the majority of policies sold during the annual enrollment period typically renew on January 1 of each year. | |
Since a significant portion of our marketing and advertising expenses are driven by the number of health insurance applications submitted on our ecommerce platform, those expenses are influenced by these patterns. As a result, marketing and advertising expenses related to individual and family health insurance plans have been highest in our first and third quarters, while marketing and advertising expenses related to Medicare-related plans have been highest in our third and fourth quarters. However, the historical trend of marketing and advertising expenses related to individual and family health insurance plans could be impacted by the initial open enrollment period for individual and family plans that began on October 1, 2013. | |
Additionally, in preparation for the Medicare annual enrollment period, and to a lesser extent the initial open enrollment period for individual and family plans, we begin ramping up our customer care center staff during our second and third quarters to handle the anticipated increased volume of health insurance transactions during the fourth quarter. Accordingly, our customer care center staffing costs are significantly higher in our third and fourth quarters compared to our first and second quarters. | |
Recently Adopted Accounting Standards | ' |
Recently Adopted Accounting Standards—Effective January 1, 2013, we adopted an accounting standards update with new guidance on the presentation of reclassifications from accumulated other comprehensive income to net income. This standard requires an entity to present reclassifications from accumulated other comprehensive income to net income either on the face of the condensed consolidated financial statements or in the notes to the condensed consolidated financial statements. In the nine months ended September 30, 2013 we did not have any reclassifications from accumulated other comprehensive income to net income. | |
Cash_Cash_Equivalents_And_Acco1
Cash, Cash Equivalents And Accounts Receivable (Tables) | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Cash, Cash Equivalents And Accounts Receivable [Abstract] | ' | |||||
Schedule Of Cash And Cash Equivalents | ' | |||||
31-Dec-12 | 30-Sep-13 | |||||
Cash | $ | 27,484 | $ | 19,632 | ||
Money market funds | 113,365 | 78,119 | ||||
Total cash and cash equivalents | $ | 140,849 | $ | 97,751 | ||
Schedule Of Accounts Receivable | ' | |||||
31-Dec-12 | 30-Sep-13 | |||||
Accounts receivable - from other revenues | $ | 3,319 | $ | 3,340 | ||
Commissions receivable | 1,149 | 3,259 | ||||
Total accounts receivable | $ | 4,468 | $ | 6,599 | ||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Stockholders' Equity [Abstract] | ' | |||||||||||
Schedule Of Shares Available For Grant | ' | |||||||||||
Shares Available for Grant (1) | ||||||||||||
Shares available for grant December 31, 2012 | 3,982 | |||||||||||
Additional shares authorized (2) | 818 | |||||||||||
Restricted stock units granted | -564 | |||||||||||
Options granted | -119 | |||||||||||
Restricted stock units cancelled | 21 | |||||||||||
Options cancelled | 72 | |||||||||||
Shares available for grant September 30, 2013 | 4,210 | |||||||||||
-1 | Shares available for grant do not include treasury stock shares that could also become available for grant if we determined to do so. | |||||||||||
-2 | On January 1, 2013, the number of shares authorized for issuance under the 2006 Equity Incentive Plan was automatically increased pursuant to the terms of the 2006 Equity Incentive Plan. | |||||||||||
Schedule Of Option Activity Under Stock Plans | ' | |||||||||||
Number of Stock Options | Weighted Average Exercise Price | Weighted-Average Remaining Contractual Life (years) | Aggregate Intrinsic Value (1) | |||||||||
Balance outstanding at December 31, 2012 | 2,956 | $ | 13.41 | 3.91 | $ | 41,642 | ||||||
Granted | 119 | $ | 21.18 | |||||||||
Exercised | -834 | $ | 5.57 | |||||||||
Cancelled | -72 | $ | 18.52 | |||||||||
Balance outstanding at September 30, 2013 | 2,169 | $ | 16.68 | 4.21 | $ | 33,784 | ||||||
Vested and expected to vest at September 30, 2013 | 2,108 | $ | 16.65 | 4.17 | $ | 32,911 | ||||||
Exercisable at September 30, 2013 | 1,389 | $ | 16.14 | 3.48 | $ | 22,389 | ||||||
-1 | The aggregate intrinsic value is calculated as the difference between eHealth’s closing stock price as of December 31, 2012 and September 30, 2013 and the exercise price of in-the-money options as of those dates. | |||||||||||
Schedule Of Restricted Stock Unit Activity Under Stock Plans | ' | |||||||||||
Number Outstanding | Weighted-Average Remaining Contractual Life (years) | Aggregate Intrinsic Value (1) | ||||||||||
Balance outstanding as of December 31, 2012 | 381 | 2.22 | $ | 10,464 | ||||||||
Granted | 564 | |||||||||||
Vested | -172 | |||||||||||
Cancelled | -21 | |||||||||||
Balance outstanding as of September 30, 2013 | 752 | 2.55 | $ | 24,248 | ||||||||
-1 | The aggregate intrinsic value is calculated as eHealth’s closing stock price as of December 31, 2012 and September 30, 2013 multiplied by the number of restricted stock units outstanding as of December 31, 2012 and September 30, 2013, respectively. | |||||||||||
Schedule Of Stock Repurchase Activity Under Stock Repurchase Programs | ' | |||||||||||
Total Number of Shares Purchased | Average Price Paid per Share (2) | Amount of Repurchase | ||||||||||
Cumulative balance at December 31, 2012 (1) | 6,397,803 | $ | 14.22 | $ | 90,991 | |||||||
Repurchases of common stock | 2,911,466 | $ | 20.27 | 59,007 | ||||||||
Cumulative balance at September 30, 2013 (1) | 9,309,269 | $ | 16.11 | $ | 149,998 | |||||||
-1 | Cumulative balances at December 31, 2012 and September 30, 2013 consist of shares repurchased in connection with our stock repurchase program announced on September 10, 2012, as well as previous stock repurchase plans announced in 2011, 2010 and 2008. | |||||||||||
(2)Average price paid per share includes commissions. | ||||||||||||
Schedule Of Fair Value Of Stock Options, Valuation Assumptions | ' | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||
Expected term | 4.6 years | 4.3 years | 4.7 years | 4.3 years | ||||||||
Expected volatility | 43.3% | 39.8% | 44.3% | 39.7% | ||||||||
Expected dividend yield | 0% | 0% | 0% | 0% | ||||||||
Risk-free interest rate | 0.61% | 1.13% | 0.90% | 0.79% | ||||||||
Weighted-average fair value | $ | 6.46 | $ | 8.39 | $ | 6.41 | $ | 7.02 | ||||
Schedule Of Stock-Based Compensation Expense | ' | |||||||||||
The following table summarizes stock-based compensation expense recorded during the three and nine months ended September 30, 2012 and 2013 (in thousands): | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||
Common stock options | $ | 717 | $ | 654 | $ | 2,076 | $ | 2,103 | ||||
Restricted stock units | 622 | 1,291 | 2,250 | 3,258 | ||||||||
Total stock-based compensation expense | $ | 1,339 | $ | 1,945 | $ | 4,326 | $ | 5,361 | ||||
The following table summarizes stock-based compensation expense by operating function for the three and nine months ended September 30, 2012 and 2013 (in thousands): | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||
Marketing and advertising | $ | 330 | $ | 517 | $ | 932 | $ | 1,446 | ||||
Customer care and enrollment | 90 | 92 | 243 | 261 | ||||||||
Technology and content | 233 | 425 | 783 | 1,129 | ||||||||
General and administrative | 686 | 911 | 2,368 | 2,525 | ||||||||
Total stock-based compensation expense | $ | 1,339 | $ | 1,945 | $ | 4,326 | $ | 5,361 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||||||
Summary Of Provision For Income Taxes And Effective Tax Rates | ' | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2012 | 2013 | 2012 | 2013 | ||||||||||||||
Income before provision for income taxes | $ | 1,079 | $ | 381 | $ | 9,160 | $ | 6,307 | |||||||||
Provision for income taxes | $ | 874 | $ | 207 | $ | 4,525 | $ | 2,626 | |||||||||
Effective tax rate | 81.0% | 54.3% | 49.4% | 41.6% | |||||||||||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Net Income Per Share [Abstract] | ' | |||||||||||
Schedule Of Computation Of Basic And Diluted Net Income Per Share | ' | |||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||
Basic: | ||||||||||||
Numerator: | ||||||||||||
Net income allocated to common stock | $ | 205 | $ | 174 | $ | 4,635 | $ | 3,681 | ||||
Denominator: | ||||||||||||
Net weighted average number of common stock shares outstanding | 19,970 | 18,436 | 19,711 | 19,310 | ||||||||
Net income per share—basic: | $ | 0.01 | $ | 0.01 | $ | 0.24 | $ | 0.19 | ||||
Diluted: | ||||||||||||
Numerator: | ||||||||||||
Net income allocated to common stock | $ | 205 | $ | 174 | $ | 4,635 | $ | 3,681 | ||||
Denominator: | ||||||||||||
Net weighted average number of common stock shares outstanding | 19,970 | 18,436 | 19,711 | 19,310 | ||||||||
Weighted average number of options | 703 | 528 | 750 | 478 | ||||||||
Weighted average number of restricted stock units | 77 | 132 | 102 | 124 | ||||||||
Total common stock shares used in per share calculation | 20,750 | 19,096 | 20,563 | 19,912 | ||||||||
Net income per share—diluted: | $ | 0.01 | $ | 0.01 | $ | 0.23 | $ | 0.18 | ||||
Schedule Of Anti-dilutive Shares Excluded From Computation Of Net Income Per Share | ' | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||
Common stock options | 1,484 | 127 | 1,327 | 439 | ||||||||
Total | 1,484 | 127 | 1,327 | 439 | ||||||||
Geographic_Information_And_Sig1
Geographic Information And Significant Customers (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Geographic Information And Significant Customers [Abstract] | ' | |||||||
Schedule Of Long Lived Assets By Geographical Areas | ' | |||||||
As of | As of | |||||||
31-Dec-12 | 30-Sep-13 | |||||||
United States | $ | 37,037 | $ | 38,363 | ||||
China | 278 | 342 | ||||||
Total | $ | 37,315 | $ | 38,705 | ||||
Schedule of Revenue by Major Customers | ' | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2012 | 2013 | 2012 | 2013 | |||||
Humana | 19% | 18% | 16% | 20% | ||||
WellPoint (1) | 13% | 12% | 13% | 12% | ||||
UnitedHealthcare (2) | 12% | 11% | 13% | 11% | ||||
Aetna (3) | 7% | 10% | 7% | 9% | ||||
-1 | Wellpoint also includes other carriers owned by Wellpoint. | |||||||
-2 | UnitedHealthcare also includes other carriers owned by UnitedHealthcare. | |||||||
-3 | Aetna also includes other carriers owned by Aetna. | |||||||
Summary_Of_Business_And_Signif2
Summary Of Business And Significant Accounting Policies (Details) | Sep. 30, 2013 |
state | |
Summary Of Business And Significant Accounting Policies [Abstract] | ' |
Number of states in which the Company is licensed to market and sell health insurance | 50 |
Cash_Cash_Equivalents_And_Acco2
Cash, Cash Equivalents And Accounts Receivable (Schedule Of Cash And Cash Equivalents) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Cash, Cash Equivalents And Accounts Receivable [Abstract] | ' | ' | ' | ' |
Cash | $19,632 | $27,484 | ' | ' |
Money market funds | 78,119 | 113,365 | ' | ' |
Total cash and cash equivalents | $97,751 | $140,849 | $130,800 | $123,607 |
Cash_Cash_Equivalents_And_Acco3
Cash, Cash Equivalents And Accounts Receivable (Schedule Of Accounts Receivable) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Cash, Cash Equivalents And Accounts Receivable [Abstract] | ' | ' |
Accounts receivable - from other revenues | $3,340 | $3,319 |
Commissions receivable | 3,259 | 1,149 |
Total accounts receivable | $6,599 | $4,468 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Sep. 10, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Stockholders' Equity [Abstract] | ' | ' | ' | ' | ' | ' |
Total grant date fair value of stock options vested | ' | $0.70 | $0.50 | $2.60 | $1.90 | ' |
Total grant date fair value of restricted stock units vested | ' | 0.2 | ' | 3.5 | 3.7 | ' |
Stock repurchase program, authorized amount | $30 | ' | ' | $60 | ' | ' |
Shares surrendered by employees to satisfy tax withholdings | ' | 209,925 | ' | 209,925 | ' | ' |
Treasury stock, number of shares held | ' | 9,519,194 | ' | 9,519,194 | ' | 6,556,303 |
Stockholders_Equity_Schedule_O
Stockholders' Equity (Schedule Of Equity Activity) (Details) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | |
Stockholders' Equity [Abstract] | ' | |
Shares available for grant December 31, 2012 | 3,982 | [1] |
Additional shares authorized | 818 | [1],[2] |
Restricted stock units granted | -564 | [1] |
Options granted | -119 | [1] |
Restricted stock units cancelled | 21 | [1] |
Options cancelled | 72 | [1] |
Shares available for grant September 30, 2013 | 4,210 | [1] |
[1] | Shares available for grant do not include treasury stock shares that could also become available for grant if we determined to do so. | |
[2] | On JanuaryB 1, 2013, the number of shares authorized for issuance under the 2006 Equity Incentive Plan was automatically increased pursuant to the terms of the 2006 Equity Incentive Plan. |
Stockholders_Equity_Schedule_O1
Stockholders' Equity (Schedule Of Option Activity Under Stock Plans) (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Stockholders' Equity [Abstract] | ' | ' | ||
Number of Stock Options, Balance outstanding at December 31, 2012 | 2,956 | ' | ||
Number of Stock Options, Granted | 119 | [1] | ' | |
Number of Stock Options, Exercised | -834 | ' | ||
Number of Stock Options, Cancelled | -72 | [1] | ' | |
Number of Stock Options, Balance outstanding at September 30, 2013 | 2,169 | 2,956 | ||
Number of Stock Options, Vested and expected to vest at September 30, 2013 | 2,108 | ' | ||
Number of Stock Options, Exercisable at September 30, 2013 | 1,389 | ' | ||
Weighted Average Exercise Price, Balance outstanding at December 31, 2012 | $13.41 | ' | ||
Weighted Average Exercise Price, Granted | $21.18 | ' | ||
Weighted Average Exercise Price, Exercised | $5.57 | ' | ||
Weighted Average Exercise Price, Cancelled | $18.52 | ' | ||
Weighted Average Exercise Price, Balance outstanding at September 30, 2013 | $16.68 | $13.41 | ||
Weighted Average Exercise Price, Vested and expected to vest at September 30, 2013 | $16.65 | ' | ||
Weighted Average Exercise Price, Exercisable at September 30, 2013 | $16.14 | ' | ||
Weighted-Average Remaining Contractual Life (years), Balance outstanding at December 31, 2012 | '4 years 2 months 16 days | '3 years 10 months 28 days | ||
Weighted-Average Remaining Contractual Life (years), Balance outstanding at September 30, 2013 | '4 years 2 months 16 days | '3 years 10 months 28 days | ||
Weighted-Average Remaining Contractual Life (years), Vested and expected to vest at September 30, 2013 | '4 years 2 months 1 day | ' | ||
Weighted-Average Remaining Contractual Life (years), Exercisable at September 30, 2013 | '3 years 5 months 23 days | ' | ||
Aggregate Intrinsic Value, Balance outstanding at December 31, 2012 | $41,642 | [2] | ' | |
Aggregate Intrinsic Value, Balance outstanding at September 30, 2013 | 33,784 | [2] | 41,642 | [2] |
Aggregate Intrinsic Value, Vested and expected to vest at September 30, 2013 | 32,911 | [2] | ' | |
Aggregate Intrinsic Value, Exercisable at September 30, 2013 | $22,389 | [2] | ' | |
[1] | Shares available for grant do not include treasury stock shares that could also become available for grant if we determined to do so. | |||
[2] | The aggregate intrinsic value is calculated as the difference between eHealthbs closing stock price as of December 31, 2012 and September 30, 2013 and the exercise price of in-the-money options as of those dates. |
Stockholders_Equity_Schedule_O2
Stockholders' Equity (Schedule Of Restricted Stock Unit Activity Under Stock Plans) (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Stockholders' Equity [Abstract] | ' | ' | ||
Number Outstanding, Balance outstanding at December 31, 2012 | 381 | ' | ||
Number Outstanding, Granted | 564 | [1] | ' | |
Number Outstanding, Vested | -172 | ' | ||
Number Outstanding, Cancelled | -21 | [1] | ' | |
Number Outstanding, Balance outstanding at September 30, 2013 | 752 | 381 | ||
Weighted-Average Remaining Contractual Life (years), Balance outstanding at December 31, 2012 | '2 years 6 months 18 days | '2 years 2 months 19 days | ||
Weighted-Average Remaining Contractual Life (years), Balance outstanding at September 30, 2013 | '2 years 6 months 18 days | '2 years 2 months 19 days | ||
Aggregate Intrinsic Value, Balance outstanding at December 31, 2012 | $10,464 | [2] | ' | |
Aggregate Intrinsic Value, Balance outstanding at September 30, 2013 | $24,248 | [2] | $10,464 | [2] |
[1] | Shares available for grant do not include treasury stock shares that could also become available for grant if we determined to do so. | |||
[2] | The aggregate intrinsic value is calculated as eHealthbs closing stock price as of December 31, 2012 and September 30, 2013 multiplied by the number of restricted stock units outstanding as of December 31, 2012 and September 30, 2013, respectively. |
Stockholders_Equity_Schedule_O3
Stockholders' Equity (Schedule Of Stock Repurchase Activity Under Stock Repurchase Programs) (Details) (USD $) | 9 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | |
Stockholders' Equity [Abstract] | ' | |
Total Number of Shares Purchased, Cumulative balance at December 31, 2012 | 6,397,803 | [1] |
Total Number of Shares Purchased, Repurchases of common stock | 2,911,466 | |
Total Number of Shares Purchased, Cumulative balance at September 30, 2013 | 9,309,269 | [1] |
Average Price Paid per Share, Cumulative balance at December 31, 2012 | $14.22 | [1],[2] |
Average Price Paid per Share, Repurchases of common stock | $20.27 | [2] |
Average Price Paid per Share, Cumulative balance at September 30, 2013 | $16.11 | [1],[2] |
Amount of Repurchase, Cumulative balance at December 31, 2012 | $90,991 | [1] |
Amount of Repurchase, Repurchases of common stock | 59,007 | |
Amount of Repurchase, Cumulative balance at September 30, 2013 | $149,998 | [1] |
[1] | Cumulative balances at December 31, 2012 and September 30, 2013 consist of shares repurchased in connection with our stock repurchase program announced on September 10, 2012, as well as previous stock repurchase plans announced in 2011, 2010 and 2008. | |
[2] | Average price paid per share includes commissions. |
Stockholders_Equity_Schedule_O4
Stockholders' Equity (Schedule Of Fair Value Of Stock Options, Valuation Assumptions) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Stockholders' Equity [Abstract] | ' | ' | ' | ' |
Expected term | '4 years 3 months 18 days | '4 years 7 months 6 days | '4 years 3 months 18 days | '4 years 8 months 12 days |
Expected volatility | 39.80% | 43.30% | 39.70% | 44.30% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 1.13% | 0.61% | 0.79% | 0.90% |
Weighted-average fair value | $8.39 | $6.46 | $7.02 | $6.41 |
Stockholders_Equity_Schedule_O5
Stockholders' Equity (Schedule Of Stock-Based Compensation Expense) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Stockholders' Equity [Abstract] | ' | ' | ' | ' |
Common stock options | $654 | $717 | $2,103 | $2,076 |
Restricted stock units | 1,291 | 622 | 3,258 | 2,250 |
Total stock-based compensation expense | $1,945 | $1,339 | $5,361 | $4,326 |
Stockholders_Equity_Schedule_O6
Stockholders' Equity (Schedule Of Stock-Based Compensation Expense By Operating Function) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | $1,945 | $1,339 | $5,361 | $4,326 |
Marketing and Advertising Expense [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | 517 | 330 | 1,446 | 932 |
Customer Care And Enrollment Expense [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | 92 | 90 | 261 | 243 |
Technology And Content Expense [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | 425 | 233 | 1,129 | 783 |
General and Administrative Expense [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | $911 | $686 | $2,525 | $2,368 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Taxes [Abstract] | ' | ' | ' | ' |
Income before provision for income taxes | $381,000 | $1,079,000 | $6,307,000 | $9,160,000 |
Provision for income taxes | 207,000 | 874,000 | 2,626,000 | 4,525,000 |
Effective income tax rate | 54.30% | 81.00% | 41.60% | 49.40% |
Increase in Additional paid-in capital related to excess federal and state tax benefits | $300,000 | $1,200,000 | $4,200,000 | $2,400,000 |
Net_Income_Per_Share_Schedule_
Net Income Per Share (Schedule Of Computation Of Basic And Diluted Net Income Per Share) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net Income Per Share [Abstract] | ' | ' | ' | ' |
Net income allocated to common stock | $174 | $205 | $3,681 | $4,635 |
Net weighted average number of common stock shares outstanding | 18,436 | 19,970 | 19,310 | 19,711 |
Net income per share-basic: | $0.01 | $0.01 | $0.19 | $0.24 |
Weighted average number of options | 528 | 703 | 478 | 750 |
Weighted average number of restricted stock units | 132 | 77 | 124 | 102 |
Total common stock equivalent shares used in per share calculation | 19,096 | 20,750 | 19,912 | 20,563 |
Net income per share-diluted: | $0.01 | $0.01 | $0.18 | $0.23 |
Net_Income_Per_Share_Schedule_1
Net Income Per Share (Schedule Of Anti-dilutive Shares Excluded From Computation Of Net Income Per Share) (Details) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Total | 127 | 1,484 | 439 | 1,327 |
Common Stock Options [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Total | 127 | 1,484 | 439 | 1,327 |
Geographic_Information_And_Sig2
Geographic Information And Significant Customers (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Commission Revenue [Member] | Commission Revenue [Member] | Commission Revenue [Member] | Commission Revenue [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | ||
Major Medical Individual And Family Insurance Plans [Member] | Major Medical Individual And Family Insurance Plans [Member] | Major Medical Individual And Family Insurance Plans [Member] | Major Medical Individual And Family Insurance Plans [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer One [Member] | Customer One [Member] | Customer Two [Member] | Customer Two [Member] | Customer Three [Member] | Customer Four [Member] | |||
customer | customer | |||||||||||||
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of significant customers | ' | ' | ' | ' | ' | ' | 4 | 2 | ' | ' | ' | ' | ' | ' |
Concentration risk, percentage | ' | ' | 74.00% | 79.00% | 72.00% | 78.00% | 72.00% | ' | 43.00% | 25.00% | 33.00% | 22.00% | 14.00% | 11.00% |
Accounts receivable | $6,599 | $4,468 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Geographic_Information_And_Sig3
Geographic Information And Significant Customers (Schedule Of Long Lived Assets By Geographical Areas) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Geographic Information And Significant Customers [Abstract] | ' | ' |
United States | $38,363 | $37,037 |
China | 342 | 278 |
Total | $38,705 | $37,315 |
Geographic_Information_And_Sig4
Geographic Information And Significant Customers (Schedule Of Revenue By Major Customers) (Details) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |||||
Humana [Member] | ' | ' | ' | ' | ||||
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ||||
Major customer revenue, percentage | 18.00% | 19.00% | 20.00% | 16.00% | ||||
WellPoint [Member] | ' | ' | ' | ' | ||||
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ||||
Major customer revenue, percentage | 12.00% | [1] | 13.00% | [1] | 12.00% | [1] | 13.00% | [1] |
UnitedHealthcare [Member] | ' | ' | ' | ' | ||||
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ||||
Major customer revenue, percentage | 11.00% | [2] | 12.00% | [2] | 11.00% | [2] | 13.00% | [2] |
Aetna [Member] | ' | ' | ' | ' | ||||
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ||||
Major customer revenue, percentage | 10.00% | [3] | 7.00% | [3] | 9.00% | [3] | 7.00% | [3] |
[1] | Wellpoint also includes other carriers owned by Wellpoint. | |||||||
[2] | UnitedHealthcare also includes other carriers owned by UnitedHealthcare. | |||||||
[3] | Aetna also includes other carriers owned by Aetna. |