Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 30, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | EHTH | |
Entity Registrant Name | eHealth, Inc. | |
Entity Central Index Key | 1,333,493 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 18,117,464 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 62,016 | $ 51,415 |
Accounts receivable | 8,832 | 8,200 |
Deferred income taxes | 386 | 386 |
Prepaid expenses and other current assets | 7,265 | 6,474 |
Total current assets | 78,499 | 66,475 |
Property and equipment, net | 8,091 | 9,640 |
Other assets | 4,419 | 5,679 |
Intangible assets, net | 9,880 | 10,774 |
Goodwill | 14,096 | 14,096 |
Total assets | 114,985 | 106,664 |
Current liabilities: | ||
Accounts payable | 2,069 | 5,961 |
Accrued compensation and benefits | 11,243 | 8,204 |
Accrued marketing expenses | 1,296 | 8,707 |
Deferred revenue | 3,684 | 869 |
Accrued restructuring charges | 257 | 0 |
Other current liabilities | 3,846 | 2,996 |
Total current liabilities | 22,395 | 26,737 |
Non-current liabilities | 5,817 | 6,449 |
Stockholders’ equity: | ||
Common stock | 29 | 29 |
Additional paid-in capital | 264,984 | 259,007 |
Treasury stock, at cost | (199,998) | (199,998) |
Retained earnings | 21,564 | 14,261 |
Accumulated other comprehensive income | 194 | 179 |
Total stockholders’ equity | 86,773 | 73,478 |
Total liabilities and stockholders’ equity | $ 114,985 | $ 106,664 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue | ||||
Commission | $ 34,942 | $ 36,164 | $ 130,157 | $ 120,267 |
Other | 3,282 | 5,004 | 9,248 | 14,435 |
Total revenue | 38,224 | 41,168 | 139,405 | 134,702 |
Operating costs and expenses: | ||||
Cost of revenue | 443 | 745 | 3,527 | 3,750 |
Marketing and advertising | 9,349 | 9,228 | 44,086 | 41,946 |
Customer care and enrollment | 9,462 | 9,695 | 28,981 | 28,392 |
Technology and content | 8,036 | 10,303 | 27,400 | 30,320 |
General and administrative | 7,749 | 7,077 | 23,237 | 22,228 |
Restructuring charges | 0 | 0 | 4,541 | 0 |
Amortization of intangible assets | 260 | 354 | 893 | 1,062 |
Total operating costs and expenses | 35,299 | 37,402 | 132,665 | 127,698 |
Income from operations | 2,925 | 3,766 | 6,740 | 7,004 |
Other expense, net | (27) | (13) | (50) | (81) |
Income before provision for income taxes | 2,898 | 3,753 | 6,690 | 6,923 |
Provision (benefit) for income taxes | (737) | 2,229 | (613) | 3,929 |
Net income | 3,635 | 1,524 | 7,303 | 2,994 |
Comprehensive income: | ||||
Foreign currency translation adjustment | 10 | 1 | 15 | 18 |
Comprehensive income | $ 3,645 | $ 1,525 | $ 7,318 | $ 3,012 |
Net income (loss) per share: | ||||
Basic (in usd per share) | $ 0.20 | $ 0.09 | $ 0.41 | $ 0.16 |
Diluted (in usd per share) | $ 0.20 | $ 0.08 | $ 0.40 | $ 0.15 |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | ||||
Basic (in shares) | 18,093 | 17,836 | 17,969 | 18,551 |
Diluted (in shares) | 18,240 | 18,394 | 18,079 | 19,341 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating activities | ||
Net income | $ 7,303 | $ 2,994 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Deferred income taxes | 117 | 1,349 |
Depreciation and amortization | 3,122 | 3,111 |
Amortization of internally-developed software | 449 | 325 |
Amortization of book-of-business consideration | 1,998 | 1,909 |
Amortization of intangible assets | 893 | 1,062 |
Stock-based compensation expense | 5,434 | 6,585 |
Deferred rent and other | 63 | 69 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (618) | (1,292) |
Prepaid expenses and other assets | (1,150) | (1,397) |
Accounts payable | (3,892) | (1,612) |
Accrued compensation and benefits | 3,037 | (2,155) |
Accrued marketing expenses | (7,411) | (5,763) |
Deferred revenue | 2,650 | 420 |
Accrued restructuring charges | 489 | 0 |
Other liabilities | (12) | 254 |
Net cash provided by operating activities | 12,472 | 5,859 |
Investing activities | ||
Purchases of property and equipment and other assets | (2,335) | (3,335) |
Purchase of intangible assets | 0 | (4,500) |
Net cash used in investing activities | (2,335) | (7,835) |
Financing activities | ||
Net proceeds from exercise of common stock options | 1,326 | 3,902 |
Cash used to net-share settle equity awards | (824) | (3,506) |
Excess tax benefits from stock-based compensation | 0 | 2,648 |
Repurchase of common stock | 0 | (50,000) |
Principal payments in connection with capital leases | (57) | (57) |
Net cash (used in) provided by financing activities | 445 | (47,013) |
Effect of exchange rate changes on cash and cash equivalents | 19 | 14 |
Net (decrease) increase in cash and cash equivalents | 10,601 | (48,975) |
Cash and cash equivalents at beginning of period | 51,415 | 107,055 |
Cash and cash equivalents at end of period | $ 62,016 | $ 58,080 |
Summary Of Business And Signifi
Summary Of Business And Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary Of Business And Significant Accounting Policies | Summary of Business and Significant Accounting Policies Description of Business— eHealth, Inc. (the “Company,” “eHealth,” “we” or “us”) is the leading private 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, www.Medicare.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, 2015 , the condensed consolidated statements of comprehensive income for the three and nine months ended September 30, 2014 and 2015 and the condensed consolidated statements of cash flows for the nine months ended September 30, 2014 and 2015 , respectively, are unaudited. The condensed consolidated balance sheet data as of December 31, 2014 was derived from the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the Securities and Exchange Commission on March 16, 2015. 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, 2014 , and include all adjustments necessary for the fair presentation of eHealth’s financial position as of September 30, 2015 , its results of operations for the three and nine months ended September 30, 2014 and 2015 and its cash flows for the nine months ended September 30, 2014 and 2015 . All adjustments are of a normal recurring nature. The results for the three and nine months ended September 30, 2015 are not necessarily indicative of the results to be expected for any subsequent period or for the fiscal year ending December 31, 2015 . Seasonality — The majority of our individual and family plans are sold in the open enrollment period as defined under the federal Patient Protection and Affordable Care Act and related amendments in the Health Care and Education Reconciliation Act. For example, in the second and third quarters of 2015, the number of individual and family applications submitted on our website decreased compared to periods inside the second open enrollment period that began on November 15, 2014 and ended on February 15, 2015. 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. Additionally, substantially all Medicare Advantage and Medicare Part D prescription drug policies renew on January 1 of each year, resulting in our recognizing substantially all renewal Medicare Advantage and Medicare Part D prescription drug plan commission revenue in our first quarter. Accordingly, Medicare plan-related commission revenue is highest in our first quarter, with Medicare plan-related commission revenue being higher in our fourth quarter compared to our second and third quarters. Since a significant portion of our marketing and advertising expenses consists of expenses incurred as a result of payments owed to our marketing partners in connection with health insurance applications submitted through us and other forms of marketing, such as direct mail, email marketing, television, radio and retargeting campaigns, those expenses are influenced by seasonal submitted application patterns. As a result of the second open enrollment period for individual and family health insurance that began on November 15, 2014 and ended on February 15, 2015, marketing and advertising expenses increased during the fourth quarter of 2014 and first quarter of 2015, consistent with the increases in individual and family submitted applications, compared to periods outside the open enrollment period. During the second and third quarters of 2015, marketing and advertising expenses decreased, consistent with the decrease in submitted applications, compared to periods during the open enrollment period. In addition, due to the initial open enrollment period for individual and family health insurance that began in October 2013 and ended on March 31, 2014, marketing and advertising expenses increased significantly in the fourth quarter of 2013 and first quarter of 2014, relative to historical levels, and decreased significantly during the second and third quarters of 2014, consistent with the respective increases and decreases in submitted applications. In the second and third quarters of 2015, we recorded net income in part due to significantly lower marketing and advertising expenses associated with the decrease in the number of individual and family health insurance applications submitted outside of the open enrollment period and lower customer care and enrollment expenses associated with fewer sales and enrollment personnel required to handle the lower volume of submitted applications outside of the open enrollment period. Our customer care and enrollment and technology and content expenses decreased in the second and third quarters of 2015, as a result of an organizational restructuring and cost reduction plan we implemented in the first quarter of 2015, which also contributed to net income during the second and third quarters of 2015. Conversely, in the first quarter of 2015 and the first and fourth quarters of 2014, we incurred a net loss, due in part to higher marketing and advertising expenses associated with individual and family health insurance applications submitted during the open enrollment period and Medicare-related health insurance applications submitted during the Medicare annual enrollment period without a commensurate level of additional revenue resulting from those applicants during the enrollment periods. Recent Accounting Pronouncements —In August 2015, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-14 (ASU 2015-14) "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date" ASU 2015-14 defers the effective date by one year of ASU No. 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)” and requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. In accordance with the deferral, the new standard is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period and can be adopted using either a full retrospective or modified retrospective approach. Early adoption is permitted for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. We are currently in the process of evaluating the impact of the adoption of ASU 2014-09 on our consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05 , "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement." ASU 2015-05 provides guidance to clarify the customer’s accounting for fees paid in a cloud computing arrangement. It is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. We are currently in the process of evaluating the impact of the adoption of ASU 2015-05 on our consolidated financial statements. |
Balance Sheet Accounts
Balance Sheet Accounts | 9 Months Ended |
Sep. 30, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Accounts | Balance Sheet Accounts Cash and Cash Equivalents— As of December 31, 2014 and September 30, 2015 , 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, 2014 and September 30, 2015 , 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, 2014 and 2015 . As of December 31, 2014 and September 30, 2015 , our cash and cash equivalent balances were invested as follows (in thousands): December 31, 2014 September 30, 2015 Cash $ 15,793 $ 17,393 Money market funds 35,622 44,623 Total cash and cash equivalents $ 51,415 $ 62,016 Our money market funds reflect unadjusted quoted prices in active markets for identical assets and are classified as Level 1 as of December 31, 2014 and September 30, 2015 . Accounts Receivable— As of December 31, 2014 and September 30, 2015 , our accounts receivable consisted of the following (in thousands): December 31, 2014 September 30, 2015 Medicare renewal commission receivable $ 355 $ 4,108 Accounts receivable - from other revenues 2,462 4,647 Other commissions receivable 5,383 77 Total accounts receivable $ 8,200 $ 8,832 As a result of a regulation issued by the Centers for Medicare and Medicaid Services, or CMS, which changed the definition of a plan year from being 12-months from the effective date of a policy to January 1 through December 31 of each year, all Medicare Advantage and Medicare Part D prescription drug policies will renew on January 1 of each year, resulting in our recording of substantially all Medicare Advantage and Medicare Part D prescription drug plan renewal commission revenue in the first quarter of each year. We fully implemented this new rule in our first quarter ended March 31, 2015. We recognize a full year of renewal commission revenue at the time a policy is renewed; however, renewal commissions for Medicare Advantage products are paid monthly. As a result, the majority of renewal commissions for that product is collected in quarters subsequent to the first quarter. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Stock Plans— The following table summarizes activity under our 2014 Equity Incentive Plan, 2006 Equity Incentive Plan, 1998 Stock Plan and 2005 Stock Plan (collectively, the “Stock Plans”) (in thousands): Shares Available for Grant Shares available for grant December 31, 2014 4,164 Restricted stock units granted (692 ) Options granted (34 ) Restricted stock units cancelled (1) 122 Options cancelled (2) 15 Shares available for grant September 30, 2015 3,575 (1) Restricted stock units cancelled does not include 66,000 restricted stock units cancelled under the 2006 Equity Incentive Plan, as our 2006 Equity Incentive Plan has been terminated with respect to the grant of additional awards. (2) Options cancelled does not include 272,000 stock options cancelled under the 2006 Equity Incentive Plan, as our 2006 Equity Incentive Plan has been terminated with respect to the grant of additional awards. We maintain our 2006 Equity Incentive Plan, 2005 Stock Plan and 1998 Stock Plan, under which we previously granted options to purchase shares of our common stock and restricted stock units. The 2006 Equity Incentive Plan was terminated with respect to the grant of additional awards on June 12, 2014, upon adoption of our 2014 Equity Incentive Plan. The 2005 Stock Plan and 1998 Stock Plan were terminated with respect to the grant of additional awards upon the effectiveness of the 2006 Equity Incentive Plan. We will continue to issue new shares of common stock upon vesting of restricted stock units and the exercise of stock options previously granted under the 2006 Equity Incentive Plan, 2005 Stock Plan and 1998 Stock 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 (1) Weighted Average Exercise Price Weighted-Average Remaining Contractual Life (years) Aggregate Intrinsic Value (2) Balance outstanding at December 31, 2014 1,724 $ 18.50 3.31 $ 12,884 Granted 34 $ 11.37 Exercised (136 ) $ 9.72 Cancelled (287 ) $ 21.54 Balance outstanding at September 30, 2015 1,335 $ 18.56 2.90 $ 234 Vested and expected to vest at September 30, 2015 1,318 $ 18.53 2.87 $ 229 Exercisable at September 30, 2015 1,076 $ 18.00 2.54 $ 186 (1) There were no options granted during the three months ended September 30, 2015. (2) The aggregate intrinsic value is calculated as the difference between eHealth’s closing stock price as of December 31, 2014 and September 30, 2015 and the exercise price of in-the-money options as of those dates. The total fair value of stock options vested during the three and nine months ended September 30, 2014 was $0.7 million and $1.8 million , respectively. The total fair value of stock options vested during the three and nine months ended September 30, 2015 was $0.3 million and $1.2 million , respectively. The following table summarizes restricted stock unit activity, including performance-based and market-based restricted stock unit activity, under the Stock Plans (in thousands, except per share amounts and weighted average remaining contractual life data): Number of Restricted Stock Units (1) Weighted-Average Grant Date Fair Value Weighted-Average Remaining Contractual Life (years) Aggregate Intrinsic Value (2) Balance outstanding as of December 31, 2014 873 $ 30.86 2.52 $ 21,753 Granted 692 $ 10.59 Vested (211 ) $ 24.20 Cancelled (188 ) $ 24.37 Balance outstanding as of September 30, 2015 1,166 $ 21.08 2.71 $ 14,940 (1) Includes certain restricted stock units with both service and performance-based or market-based vesting criteria granted to our executive officers. There were no restricted stock units granted during the three months ended September 30, 2015. (2) The aggregate intrinsic value is calculated as eHealth’s closing stock price as of December 31, 2014 and September 30, 2015 multiplied by the number of restricted stock units outstanding as of December 31, 2014 and September 30, 2015 , 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 amount of expense recorded for performance-based restricted stock units is based on expected attainment of performance criteria. The total fair value of restricted stock units vested during the three and nine months ended September 30, 2014 was $0.4 million and $10.3 million , respectively. The total fair value of restricted stock units vested during the three and nine months ended September 30, 2015 was $0.2 million and $2.4 million , respectively. Stock Repurchase Programs— We had no stock repurchase activity during the three and nine months ended September 30, 2015 . In addition to the shares repurchased under our past repurchase programs as of September 30, 2015 , we have in treasury 353,985 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, 2014 and September 30, 2015 , we had a total of 10,945,607 shares and 11,018,379 shares, respectively, held in treasury. Stock-Based Compensation— The fair value of stock options granted to employees for the nine months ended September 30, 2014 and 2015 was estimated using the following weighted average assumptions: Nine Months Ended September 30, 2014 2015 Expected term 4.2 years 4.3 years Expected volatility 46.3 % 63.6 % Expected dividend yield — % — % Risk-free interest rate 1.40 % 1.15 % Weighted-average fair value $ 15.50 $ 5.70 In March 2015, we granted market-based stock unit awards to certain members of senior management. Each market-based stock unit award represents a contingent right to receive certain shares of the Company’s common stock upon the attainment of certain stock prices over a four -year performance period. Once a stock price threshold is achieved, the portion of the award related to that threshold will vest on the one-year anniversary of the date of achievement, subject to the employee's continued service through each vesting date. Compensation expense related to these awards is recognized on an accelerated basis over the requisite service period. The weighted-average fair value of the market-based stock unit awards was determined using the Monte Carlo simulation model incorporating the following weighted average assumptions: Expected term 2.6 years Expected volatility 64.7 % Expected dividend yield — % Risk-free interest rate 1.13 % Weighted-average fair value $ 6.69 There were no market-based stock unit awards granted during the three months ended September 30, 2015 and the three and nine months ended September 30, 2014. The following table summarizes stock-based compensation expense recorded during the three and nine months ended September 30, 2014 and 2015 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2014 2015 2014 2015 Stock options $ 523 $ 351 $ 1,729 $ 1,184 Restricted stock units 1,767 1,225 4,856 4,250 Total stock-based compensation expense $ 2,290 $ 1,576 $ 6,585 $ 5,434 The following table summarizes stock-based compensation expense by operating function for the three and nine months ended September 30, 2014 and 2015 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2014 2015 2014 2015 Marketing and advertising $ 721 $ 461 $ 1,957 $ 1,498 Customer care and enrollment 116 110 283 366 Technology and content 559 362 1,550 1,308 General and administrative 894 643 2,795 2,149 Restructuring charges — — — 113 Total stock-based compensation expense $ 2,290 $ 1,576 $ 6,585 $ 5,434 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table summarizes our provision (benefit) for income taxes and our effective tax rates for the three and nine months ended September 30, 2014 and 2015 (in thousands, except effective tax rate): Three Months Ended September 30, Nine Months Ended September 30, 2014 2015 2014 2015 Income before provision for income taxes $ 3,753 $ 2,898 $ 6,923 $ 6,690 Provision (benefit) for income taxes $ 2,229 $ (737 ) $ 3,929 $ (613 ) Effective tax rate 59.4 % (25.4 )% 56.8 % (9.2 )% Our effective tax rate in the three and nine months ended September 30, 2014 was higher than statutory federal and state tax rates due primarily to non-deductible lobbying expenses. We recorded a valuation allowance against the US deferred tax assets at the end of fiscal year 2014 and continue to maintain that full valuation allowance as of September 30, 2015 as the Company believes it is not more likely that not that the net deferred tax assets will be fully realized. In the three and nine months ended September 30, 2015 , we recorded a benefit for income taxes of ($0.7) million and ($0.6) million , respectively, primarily related to a $0.8 million decrease in our liability for unrecognized tax benefits due to the expiration of the related statute of limitations, partially offset by a provision for income taxes related to minimum taxes and a foreign tax rate differential. During the three and nine months ended September 30, 2014 , excess federal and state tax benefits related to share-based payments resulted in increases of $1.0 million and $2.6 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. During the three and nine months ended September 30, 2015 , no excess federal and state tax benefits related to share-based payments were recognized. |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 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. 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 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 September 30, Nine Months Ended September 30, 2014 2015 2014 2015 Basic: Numerator: Net income allocated to common stock $ 1,524 $ 3,635 $ 2,994 $ 7,303 Denominator: Weighted average number of common stock shares outstanding 17,836 18,093 18,551 17,969 Net income per share—basic: $ 0.09 $ 0.20 $ 0.16 $ 0.41 Diluted: Numerator: Net income allocated to common stock $ 1,524 $ 3,635 $ 2,994 $ 7,303 Denominator: Weighted average number of common stock shares outstanding 17,836 18,093 18,551 17,969 Weighted average number of options 445 42 616 29 Weighted average number of restricted stock units 113 105 174 81 Total common stock shares used in diluted per share calculation (1) 18,394 18,240 19,341 18,079 Net income per share—diluted: $ 0.08 $ 0.20 $ 0.15 $ 0.40 (1) Total common stock shares used in the diluted per share calculation excludes market-based stock unit awards for which the related contingency had not been met as of September 30, 2015. For each of the three- and nine -month periods ended September 30, 2014 and 2015 , 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 for the periods presented. 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, 2014 2015 2014 2015 Common stock options 219 1,205 127 1,313 Restricted stock units 669 218 352 339 Total 888 1,423 479 1,652 |
Geographic Information And Sign
Geographic Information And Significant Customers | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Geographic Information And Significant Customers | Geographic Information and Significant Customers Geographic Information —As of December 31, 2014 and September 30, 2015 , 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 December 31, 2014 September 30, 2015 United States $ 39,752 $ 36,051 China 437 435 Total $ 40,189 $ 36,486 Significant Customers —Substantially all revenue for the three and nine months ended September 30, 2014 and 2015 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, 2014 and 2015 are presented in the table below: Three Months Ended September 30, Nine Months Ended September 30, 2014 2015 2014 2015 Humana 23 % 19 % 23 % 24 % Anthem (1) 11 % 10 % 11 % 10 % UnitedHealthcare (2) 10 % 11 % 10 % 10 % Aetna (3) 9 % 9 % 10 % 9 % (1) Anthem also includes other carriers owned by Anthem. (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 64% of our commission revenue in both the three and nine months ended September 30, 2014 . Commission revenue attributable to major medical individual and family health insurance plans was approximately 61% and 52% of our commission revenue in the three and nine months ended September 30, 2015 , 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, and accident insurance plan offerings. As of December 31, 2014, three customers represented 30% , 17% and 14% , respectively, of our $8.2 million outstanding accounts receivable balance. As of September 30, 2015 , one customer represented 66% of our $8.8 million outstanding accounts receivable balance. No other customers represented 10% or more of our total accounts receivable at December 31, 2014 and September 30, 2015 . We believe the potential for collection issues with any of our customers is minimal as of September 30, 2015 . Accordingly, our estimate for uncollectible amounts at September 30, 2015 was not material. |
Restructuring Charges
Restructuring Charges | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges In March 2015, we implemented an organizational restructuring and cost reduction plan designed to rebalance our resources and help reduce our cost structure as a result of lower than expected individual and family health insurance plan membership and revenue. As part of the plan, we eliminated approximately 160 full-time positions in the United States, representing approximately 15% of our workforce primarily in our technology and content and customer care and enrollment groups, and to a lesser extent, in our marketing and advertising and general and administrative groups. We incurred pre-tax restructuring charges of approximately $3.9 million for employee termination benefits and related costs, as well as $0.6 million in other pre-tax restructuring charges, primarily consisting of facility exit costs. The majority of the restructuring charges were recorded in the first quarter of 2015, when the activities comprising the plan were approved and substantially completed. In March 2015, as part of our restructuring activities, we also eliminated certain positions in our China operation. The following table summarizes the total cash and non-cash restructuring charges recorded during the three and nine months ended September 30, 2015 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2014 2015 2014 2015 Employee termination costs $ — $ — $ — $ 3,791 Non-cash employee termination costs - stock-based compensation — — — 113 Facility and other termination costs — — — 637 Total restructuring charges $ — $ — $ — $ 4,541 The following table summarizes the cash-based restructuring charges liability activity during the nine months ended September 30, 2015 (in thousands): Nine Months Ended September 30, 2015 Beginning balance Charges Payments Ending balance Employee termination costs $ — $ 3,791 $ (3,779 ) $ 12 Facility and other termination costs — 637 (160 ) 477 Total restructuring liability $ — $ 4,428 $ (3,939 ) $ 489 Less: non-current restructuring charges associated with facilities (232 ) Restructuring charges liability - current $ 257 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings — O n January 26 and March 10, 2015, two purported class action lawsuits were filed against us, our chairman and chief executive officer, Gary L. Lauer (“Mr. Lauer”), and our senior vice president and chief financial officer, Stuart M. Huizinga (“Mr. Huizinga”), in the United States District Court for the Northern District of California. On May 6, 2015, the Court consolidated the two cases. On June 10, 2015, a consolidated complaint was filed. The consolidated complaint alleges that the defendants made false and misleading statements regarding the Company’s financial performance, guidance and operations during an alleged class period of May 1, 2014 to January 14, 2015. The consolidated complaint alleges that we and Messrs. Lauer and Huizinga violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The consolidated complaint seeks compensatory damages, attorneys’ fees and costs, rescission or a rescissory measure of damages, equitable/injunctive relief and such other relief as the court deems proper. On July 15, 2015, defendants moved to dismiss the consolidated complaint. The court held a hearing on defendants’ motion to dismiss the consolidated complaint on September 30, 2015. In May 2015 an individual plaintiff filed a lawsuit against a health insurance carrier and us in state court in the state of Texas. The complaint alleged that we and the health insurance carrier engaged in certain false, misleading and deceptive acts and/or omissions in violation of the Texas Deceptive Trade Practice - Consumer Protection Act in connection with the plaintiff’s purchase of the health insurance carrier’s health insurance product. The complaint sought economic and actual damages for alleged harm caused to the plaintiff as well as multiple damages, exemplary damages and attorney’s fees and costs. In June 2015, we and the health insurance carrier removed the case to the United States District Court for the Eastern District of Texas, and the court ordered the plaintiff to file an amended complaint. The plaintiff filed the amended complaint in July 2015. The amended complaint purports to be a class action lawsuit on behalf of the purchasers of a certain health insurance product offered by the health insurance carrier. The amended complaint alleges that we and the health insurance carrier engaged in certain false, misleading and deceptive acts and/or omissions in violation of the Texas Deceptive Trade Practice - Consumer Protection Act and the Texas Insurance Code in connection with the sale of the health insurance carrier’s health insurance product. The amended complaint alleges certain other causes of action against the health insurance carrier. The amended complaint seeks economic and actual damages, multiple damages, exemplary damages, interest, attorney’s fees and costs, and specific performance. In August 2015 we and the health insurance carrier moved to dismiss the amended complaint. In the ordinary course of our business, we have received and may continue to receive inquiries from state regulators relating to various matters. At December 31, 2014 and September 30, 2015 we had no material liabilities included in our consolidated balance sheet for outstanding legal claims. |
Summary Of Business And Signi13
Summary Of Business And Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis Of Presentation | Basis of Presentation— The accompanying condensed consolidated balance sheet as of September 30, 2015 , the condensed consolidated statements of comprehensive income for the three and nine months ended September 30, 2014 and 2015 and the condensed consolidated statements of cash flows for the nine months ended September 30, 2014 and 2015 , respectively, are unaudited. The condensed consolidated balance sheet data as of December 31, 2014 was derived from the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the Securities and Exchange Commission on March 16, 2015. 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, 2014 , and include all adjustments necessary for the fair presentation of eHealth’s financial position as of September 30, 2015 , its results of operations for the three and nine months ended September 30, 2014 and 2015 and its cash flows for the nine months ended September 30, 2014 and 2015 . All adjustments are of a normal recurring nature. The results for the three and nine months ended September 30, 2015 are not necessarily indicative of the results to be expected for any subsequent period or for the fiscal year ending December 31, 2015 . |
Seasonality | Seasonality — The majority of our individual and family plans are sold in the open enrollment period as defined under the federal Patient Protection and Affordable Care Act and related amendments in the Health Care and Education Reconciliation Act. For example, in the second and third quarters of 2015, the number of individual and family applications submitted on our website decreased compared to periods inside the second open enrollment period that began on November 15, 2014 and ended on February 15, 2015. 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. Additionally, substantially all Medicare Advantage and Medicare Part D prescription drug policies renew on January 1 of each year, resulting in our recognizing substantially all renewal Medicare Advantage and Medicare Part D prescription drug plan commission revenue in our first quarter. Accordingly, Medicare plan-related commission revenue is highest in our first quarter, with Medicare plan-related commission revenue being higher in our fourth quarter compared to our second and third quarters. Since a significant portion of our marketing and advertising expenses consists of expenses incurred as a result of payments owed to our marketing partners in connection with health insurance applications submitted through us and other forms of marketing, such as direct mail, email marketing, television, radio and retargeting campaigns, those expenses are influenced by seasonal submitted application patterns. As a result of the second open enrollment period for individual and family health insurance that began on November 15, 2014 and ended on February 15, 2015, marketing and advertising expenses increased during the fourth quarter of 2014 and first quarter of 2015, consistent with the increases in individual and family submitted applications, compared to periods outside the open enrollment period. During the second and third quarters of 2015, marketing and advertising expenses decreased, consistent with the decrease in submitted applications, compared to periods during the open enrollment period. In addition, due to the initial open enrollment period for individual and family health insurance that began in October 2013 and ended on March 31, 2014, marketing and advertising expenses increased significantly in the fourth quarter of 2013 and first quarter of 2014, relative to historical levels, and decreased significantly during the second and third quarters of 2014, consistent with the respective increases and decreases in submitted applications. |
Recently Adopted Accounting Standards | Recent Accounting Pronouncements —In August 2015, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-14 (ASU 2015-14) "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date" ASU 2015-14 defers the effective date by one year of ASU No. 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)” and requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. In accordance with the deferral, the new standard is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period and can be adopted using either a full retrospective or modified retrospective approach. Early adoption is permitted for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. We are currently in the process of evaluating the impact of the adoption of ASU 2014-09 on our consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05 , "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement." ASU 2015-05 provides guidance to clarify the customer’s accounting for fees paid in a cloud computing arrangement. It is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. We are currently in the process of evaluating the impact of the adoption of ASU 2015-05 on our consolidated financial statements. |
Balance Sheet Accounts (Tables)
Balance Sheet Accounts (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule Of Cash And Cash Equivalents | As of December 31, 2014 and September 30, 2015 , our cash and cash equivalent balances were invested as follows (in thousands): December 31, 2014 September 30, 2015 Cash $ 15,793 $ 17,393 Money market funds 35,622 44,623 Total cash and cash equivalents $ 51,415 $ 62,016 |
Schedule Of Accounts Receivable | Accounts Receivable— As of December 31, 2014 and September 30, 2015 , our accounts receivable consisted of the following (in thousands): December 31, 2014 September 30, 2015 Medicare renewal commission receivable $ 355 $ 4,108 Accounts receivable - from other revenues 2,462 4,647 Other commissions receivable 5,383 77 Total accounts receivable $ 8,200 $ 8,832 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of share-based payment award (Schedule of Fair Value of Performance Stock Units, Valuation Assumptions) [Table Text Block] | The weighted-average fair value of the market-based stock unit awards was determined using the Monte Carlo simulation model incorporating the following weighted average assumptions: Expected term 2.6 years Expected volatility 64.7 % Expected dividend yield — % Risk-free interest rate 1.13 % Weighted-average fair value $ 6.69 |
Schedule Of Activity Under The Plans | The following table summarizes activity under our 2014 Equity Incentive Plan, 2006 Equity Incentive Plan, 1998 Stock Plan and 2005 Stock Plan (collectively, the “Stock Plans”) (in thousands): Shares Available for Grant Shares available for grant December 31, 2014 4,164 Restricted stock units granted (692 ) Options granted (34 ) Restricted stock units cancelled (1) 122 Options cancelled (2) 15 Shares available for grant September 30, 2015 3,575 (1) Restricted stock units cancelled does not include 66,000 restricted stock units cancelled under the 2006 Equity Incentive Plan, as our 2006 Equity Incentive Plan has been terminated with respect to the grant of additional awards. (2) Options cancelled does not include 272,000 stock options cancelled under the 2006 Equity Incentive Plan |
Schedule Of Stock Option Activity Under Stock Plans | 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 (1) Weighted Average Exercise Price Weighted-Average Remaining Contractual Life (years) Aggregate Intrinsic Value (2) Balance outstanding at December 31, 2014 1,724 $ 18.50 3.31 $ 12,884 Granted 34 $ 11.37 Exercised (136 ) $ 9.72 Cancelled (287 ) $ 21.54 Balance outstanding at September 30, 2015 1,335 $ 18.56 2.90 $ 234 Vested and expected to vest at September 30, 2015 1,318 $ 18.53 2.87 $ 229 Exercisable at September 30, 2015 1,076 $ 18.00 2.54 $ 186 (1) There were no options granted during the three months ended September 30, 2015. (2) The aggregate intrinsic value is calculated as the difference between eHealth’s closing stock price as of December 31, 2014 and September 30, 2015 and the exercise price of in-the-money options as of those dates. |
Schedule Of Restricted Stock Unit Activity Under Stock Plans | The following table summarizes restricted stock unit activity, including performance-based and market-based restricted stock unit activity, under the Stock Plans (in thousands, except per share amounts and weighted average remaining contractual life data): Number of Restricted Stock Units (1) Weighted-Average Grant Date Fair Value Weighted-Average Remaining Contractual Life (years) Aggregate Intrinsic Value (2) Balance outstanding as of December 31, 2014 873 $ 30.86 2.52 $ 21,753 Granted 692 $ 10.59 Vested (211 ) $ 24.20 Cancelled (188 ) $ 24.37 Balance outstanding as of September 30, 2015 1,166 $ 21.08 2.71 $ 14,940 (1) Includes certain restricted stock units with both service and performance-based or market-based vesting criteria granted to our executive officers. There were no restricted stock units granted during the three months ended September 30, 2015. (2) The aggregate intrinsic value is calculated as eHealth’s closing stock price as of December 31, 2014 and September 30, 2015 multiplied by the number of restricted stock units outstanding as of December 31, 2014 and September 30, 2015 , respectively. |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Stock-Based Compensation— The fair value of stock options granted to employees for the nine months ended September 30, 2014 and 2015 was estimated using the following weighted average assumptions: Nine Months Ended September 30, 2014 2015 Expected term 4.2 years 4.3 years Expected volatility 46.3 % 63.6 % Expected dividend yield — % — % Risk-free interest rate 1.40 % 1.15 % Weighted-average fair value $ 15.50 $ 5.70 |
Schedule Of Stock-Based Compensation Expense | The following table summarizes stock-based compensation expense recorded during the three and nine months ended September 30, 2014 and 2015 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2014 2015 2014 2015 Stock options $ 523 $ 351 $ 1,729 $ 1,184 Restricted stock units 1,767 1,225 4,856 4,250 Total stock-based compensation expense $ 2,290 $ 1,576 $ 6,585 $ 5,434 The following table summarizes stock-based compensation expense by operating function for the three and nine months ended September 30, 2014 and 2015 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2014 2015 2014 2015 Marketing and advertising $ 721 $ 461 $ 1,957 $ 1,498 Customer care and enrollment 116 110 283 366 Technology and content 559 362 1,550 1,308 General and administrative 894 643 2,795 2,149 Restructuring charges — — — 113 Total stock-based compensation expense $ 2,290 $ 1,576 $ 6,585 $ 5,434 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Summary Of Provision (Benefit) For Income Taxes And Effective Tax Rate | The following table summarizes our provision (benefit) for income taxes and our effective tax rates for the three and nine months ended September 30, 2014 and 2015 (in thousands, except effective tax rate): Three Months Ended September 30, Nine Months Ended September 30, 2014 2015 2014 2015 Income before provision for income taxes $ 3,753 $ 2,898 $ 6,923 $ 6,690 Provision (benefit) for income taxes $ 2,229 $ (737 ) $ 3,929 $ (613 ) Effective tax rate 59.4 % (25.4 )% 56.8 % (9.2 )% |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule Of Computation Of Basic And Diluted Net Income (Loss) Per Share | The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2014 2015 2014 2015 Basic: Numerator: Net income allocated to common stock $ 1,524 $ 3,635 $ 2,994 $ 7,303 Denominator: Weighted average number of common stock shares outstanding 17,836 18,093 18,551 17,969 Net income per share—basic: $ 0.09 $ 0.20 $ 0.16 $ 0.41 Diluted: Numerator: Net income allocated to common stock $ 1,524 $ 3,635 $ 2,994 $ 7,303 Denominator: Weighted average number of common stock shares outstanding 17,836 18,093 18,551 17,969 Weighted average number of options 445 42 616 29 Weighted average number of restricted stock units 113 105 174 81 Total common stock shares used in diluted per share calculation (1) 18,394 18,240 19,341 18,079 Net income per share—diluted: $ 0.08 $ 0.20 $ 0.15 $ 0.40 |
Schedule Of Anti-dilutive Shares Excluded From Computation Of Net Income (Loss) Per Share | 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, 2014 2015 2014 2015 Common stock options 219 1,205 127 1,313 Restricted stock units 669 218 352 339 Total 888 1,423 479 1,652 |
Geographic Information And Si18
Geographic Information And Significant Customers (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule Of Long Lived Assets By Geographical Areas | Long-lived assets by geographical area were as follows (in thousands): As of As of December 31, 2014 September 30, 2015 United States $ 39,752 $ 36,051 China 437 435 Total $ 40,189 $ 36,486 |
Schedule Of Revenue By Major Customers | Carriers representing 10% or more of our total revenue in the three and nine months ended September 30, 2014 and 2015 are presented in the table below: Three Months Ended September 30, Nine Months Ended September 30, 2014 2015 2014 2015 Humana 23 % 19 % 23 % 24 % Anthem (1) 11 % 10 % 11 % 10 % UnitedHealthcare (2) 10 % 11 % 10 % 10 % Aetna (3) 9 % 9 % 10 % 9 % (1) Anthem also includes other carriers owned by Anthem. (2) UnitedHealthcare also includes other carriers owned by UnitedHealthcare. (3) Aetna also includes other carriers owned by Aetna. |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the total cash and non-cash restructuring charges recorded during the three and nine months ended September 30, 2015 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2014 2015 2014 2015 Employee termination costs $ — $ — $ — $ 3,791 Non-cash employee termination costs - stock-based compensation — — — 113 Facility and other termination costs — — — 637 Total restructuring charges $ — $ — $ — $ 4,541 |
Schedule of Restructuring and Related Costs | The following table summarizes the cash-based restructuring charges liability activity during the nine months ended September 30, 2015 (in thousands): Nine Months Ended September 30, 2015 Beginning balance Charges Payments Ending balance Employee termination costs $ — $ 3,791 $ (3,779 ) $ 12 Facility and other termination costs — 637 (160 ) 477 Total restructuring liability $ — $ 4,428 $ (3,939 ) $ 489 Less: non-current restructuring charges associated with facilities (232 ) Restructuring charges liability - current $ 257 |
Summary of Business And Signi20
Summary of Business And Significant Accounting Policies (Narrative) (Details) | Sep. 30, 2015state |
Accounting Policies [Abstract] | |
Number of states in which the Company is licensed to market and sell health insurance | 50 |
Balance Sheet Accounts (Schedul
Balance Sheet Accounts (Schedule Of Cash And Cash Equivalents) (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |
Cash and Cash Equivalents [Line Items] | ||||
Cash | $ 17,393,000 | $ 15,793,000 | ||
Money market funds | 44,623,000 | 35,622,000 | ||
Total cash and cash equivalents | 62,016,000 | 51,415,000 | $ 58,080,000 | $ 107,055,000 |
Cash Equivalents | ||||
Cash and Cash Equivalents [Line Items] | ||||
Unrealized gains or losses on cash equivalents | $ 0 | $ 0 |
Balance Sheet Accounts (Sched22
Balance Sheet Accounts (Schedule Of Accounts Receivable) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | $ 8,832 | $ 8,200 |
Medicare Renewal Commissions Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | 4,108 | 355 |
Accounts Receivable, Other Revenues [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | 4,647 | 2,462 |
Other Commissions Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | $ 77 | $ 5,383 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2015 | Dec. 31, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total grant date fair value of stock options vested | $ 0.3 | $ 0.7 | $ 1.2 | $ 1.8 | |||
Total fair value of restricted stock units vested | $ 0.2 | $ 0.4 | $ 2.4 | $ 10.3 | |||
Stock repurchased during period (shares) | [1] | 0 | |||||
Treasury shares held to satisfy tax withholdings (shares) | 353,985 | ||||||
Treasury stock number of shares held (shares) | 11,018,379 | 11,018,379 | 10,945,607 | ||||
Senior Management [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 4 years | ||||||
Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (shares) | [1] | 0 | |||||
[1] | Includes certain restricted stock units with both service and performance-based or market-based vesting criteria granted to our executive officers. |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule Of Activity Under The Plans) (Details) | 9 Months Ended | |
Sep. 30, 2015shares | ||
2014 Equity Incentive Plan [Member] | ||
Shares Available for Grant | ||
Shares available for grant, beginning balance (shares) | 4,164,000 | |
Restricted stock units granted (shares) | (692,000) | |
Options granted (shares) | (34,000) | |
Restricted stock units cancelled (shares) | 122,000 | [1] |
Options cancelled (shares) | 15,000 | [2] |
Shares available for grant, ending balance (shares) | 3,575,000 | |
2006 Equity Incentive Plan [Member] | ||
Shares Available for Grant | ||
Options cancelled (shares) | 272,000 | |
2006 Equity Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||
Shares Available for Grant | ||
Restricted stock units cancelled (shares) | 66,000 | |
[1] | Restricted stock units cancelled does not include 66,000 restricted stock units cancelled under the 2006 Equity Incentive Plan, as our 2006 Equity Incentive Plan has been terminated with respect to the grant of additional awards. | |
[2] | Options cancelled does not include 272,000 stock options cancelled under the 2006 Equity Incentive Plan, as our 2006 Equity Incentive Plan has been terminated with respect to the grant of additional awards. |
Stockholders' Equity (Schedul25
Stockholders' Equity (Schedule Of Option Activity Under Stock Plans) (Details) - Common Stock Options [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | ||
Number of Stock Options (1) | ||||
Balance outstanding at December 31, 2014 (shares) | 1,724,000 | |||
Granted (shares) | 0 | 34,000 | ||
Exercised (shares) | (136,000) | |||
Cancelled (shares) | (287,000) | |||
Balance outstanding at September 30, 2015 (shares) | 1,335,000 | 1,335,000 | 1,724,000 | |
Number of Stock Options Vested and expected to vest (shares) | 1,318,000 | 1,318,000 | ||
Number of Stock Options Exercisable (shares) | 1,076,000 | 1,076,000 | ||
Weighted Average Exercise Price | ||||
Weighted-Average Exercise Price, balance outstanding at December 31, 2014 (usd per share) | $ 18.50 | |||
Weighted-Average Exercise Price, Granted (usd per share) | 11.37 | |||
Weighted-Average Exercise Price, Exercised (usd per share) | 9.72 | |||
Weighted-Average Exercise Price, Cancelled (usd per share) | 21.54 | |||
Weighted-Average Exercise Price, Balance outstanding at September 30, 2015 (usd per share) | $ 18.56 | 18.56 | $ 18.50 | |
Weighted-Average Exercise Price, Vested and expected to vest (usd per share) | 18.53 | 18.53 | ||
Weighted-Average Exercise Price, Exercisable (usd per share) | $ 18 | $ 18 | ||
Weighted-Average Remaining Contractual Life (years), Balance outstanding | 2 years 10 months 25 days | 3 years 3 months 22 days | ||
Weighted-Average Remaining Contractual Life (years), Balance outstanding | 2 years 10 months 25 days | 3 years 3 months 22 days | ||
Weighted-Average Remaining Contractual Life (years), Vested and expected to vest | 2 years 10 months 12 days | |||
Weighted-Average Remaining Contractual Life (years), Exercisable | 2 years 6 months 15 days | |||
Aggregate Intrinsic Value, Balance outstanding at December 31, 2014 | [1] | $ 12,884 | ||
Aggregate Intrinsic Value, Balance outstanding | [1] | $ 234 | 234 | $ 12,884 |
Aggregate Intrinsic Value, Vested and expected to vest | [1] | 229 | 229 | |
Aggregate Intrinsic Value, Exercisable at | [1] | $ 186 | $ 186 | |
[1] | The aggregate intrinsic value is calculated as the difference between eHealth’s closing stock price as of December 31, 2014 and September 30, 2015 and the exercise price of in-the-money options as of those dates. |
Stockholders' Equity (Schedul26
Stockholders' Equity (Schedule Of Restricted Stock Unit Activity Under Stock Plans) (Details) - Restricted Stock [Member] - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | ||
Number of Restricted Stock Units | |||
Balance outstanding as of December 31, 2014 (shares) | [1] | 873,000 | |
Granted (shares) | [1] | 692,000 | |
Vested (shares) | [1] | (211,000) | |
Cancelled (shares) | [1] | (188,000) | |
Balance outstanding as of September 30, 2015 (shares) | [1] | 1,166,000 | 873,000 |
Weighted-Average Grant Date Fair Value | |||
Weighted-Average Grant Date Fair Value, Balance outstanding as of December 31, 2014 (usd per share) | $ 30.86 | ||
Weighted-Average Grant Date Fair Value, Granted (usd per share) | 10.59 | ||
Weighted-Average Grant Date Fair Value, Vested (usd per share) | 24.20 | ||
Weighted-Average Grant Date Fair Value, Cancelled (usd per share) | $ 24.37 | ||
Weighted-Average Remaining Contractual Life (years), Balance outstanding as of December 31, 2014 | 2 years 8 months 16 days | 2 years 6 months 6 days | |
Weighted-Average Grant Date Fair Value, Balance outstanding (usd per share) | $ 21.08 | $ 30.86 | |
Weighted-Average Remaining Contractual Life (years), Balance outstanding | 2 years 8 months 16 days | 2 years 6 months 6 days | |
Aggregate Intrinsic Value, Balance outstanding as of December 31, 2014 | [2] | $ 21,753 | |
Aggregate Intrinsic Value, Balance outstanding | [2] | $ 14,940 | $ 21,753 |
[1] | Includes certain restricted stock units with both service and performance-based or market-based vesting criteria granted to our executive officers. | ||
[2] | The aggregate intrinsic value is calculated as eHealth’s closing stock price as of December 31, 2014 and September 30, 2015 multiplied by the number of restricted stock units outstanding as of December 31, 2014 and September 30, 2015, respectively. |
Stockholders' Equity (Schedul27
Stockholders' Equity (Schedule of Fair Value of Stock Options, Valuation Assumptions) (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 4 years 3 months | 4 years 2 months 10 days |
Expected volatility | 63.60% | 46.30% |
Expected dividend yield | 0.00% | 0.00% |
Risk-free interest rate | 1.15% | 1.40% |
Weighted-average fair value | $ 5.70 | $ 15.50 |
Senior Management [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 2 years 7 months 3 days | |
Expected volatility | 64.70% | |
Expected dividend yield | 0.00% | |
Risk-free interest rate | 1.13% | |
Weighted-average fair value | $ 6.69 |
Stockholders' Equity (Schedul28
Stockholders' Equity (Schedule Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Common stock options | $ 351 | $ 523 | $ 1,184 | $ 1,729 |
Restricted stock units | 1,225 | 1,767 | 4,250 | 4,856 |
Total stock-based compensation expense | $ 1,576 | $ 2,290 | $ 5,434 | $ 6,585 |
Stockholders' Equity (Schedul29
Stockholders' Equity (Schedule Of Stock-Based Compensation Expense By Operating Function) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Component Of Stock Based Compensation Expense [Line Items] | ||||
Total Stock-Based Compensation Expense | $ 1,576 | $ 2,290 | $ 5,434 | $ 6,585 |
Marketing and Advertising Expense [Member] | ||||
Component Of Stock Based Compensation Expense [Line Items] | ||||
Total Stock-Based Compensation Expense | 461 | 721 | 1,498 | 1,957 |
Customer Care And Enrollment Expense [Member] | ||||
Component Of Stock Based Compensation Expense [Line Items] | ||||
Total Stock-Based Compensation Expense | 110 | 116 | 366 | 283 |
Technology And Content Expense [Member] | ||||
Component Of Stock Based Compensation Expense [Line Items] | ||||
Total Stock-Based Compensation Expense | 362 | 559 | 1,308 | 1,550 |
General and Administrative Expense [Member] | ||||
Component Of Stock Based Compensation Expense [Line Items] | ||||
Total Stock-Based Compensation Expense | 643 | 894 | 2,149 | 2,795 |
Restructuring Charges [Member] | ||||
Component Of Stock Based Compensation Expense [Line Items] | ||||
Total Stock-Based Compensation Expense | $ 0 | $ 0 | $ 113 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Income before provision for income taxes | $ 2,898 | $ 3,753 | $ 6,690 | $ 6,923 |
Provision (benefit) for income taxes | $ (737) | $ 2,229 | (613) | $ 3,929 |
Unrecognized Tax Benefits, Period Increase (Decrease) | $ 800 | |||
Effective tax rate | (25.40%) | 59.40% | (9.20%) | 56.80% |
Increase in additional paid-in capital related to excess federal and state tax benefits | $ 0 | $ 1,000 | $ 0 | $ 2,600 |
Net Income Per Share (Schedule
Net Income Per Share (Schedule Oof Computation Of Basic And Diluted Net Income (Loss) Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) allocated to common stock | $ 3,635 | $ 1,524 | $ 7,303 | $ 2,994 |
Net weighted average number of common stock shares outstanding (shares) | 18,093 | 17,836 | 17,969 | 18,551 |
Net income (loss) per share-basic (usd per share) | $ 0.20 | $ 0.09 | $ 0.41 | $ 0.16 |
Incremental Common Shares Attributable To Options (shares) | 42 | 445 | 29 | 616 |
Incremental Common Shares Attributable To Restricted Stock Units (shares) | 105 | 113 | 81 | 174 |
Total common stock shares used in diluted per share calculation (shares) | 18,240 | 18,394 | 18,079 | 19,341 |
Net income per share—diluted (usd per share) | $ 0.20 | $ 0.08 | $ 0.40 | $ 0.15 |
Net Income Per Share (Schedul32
Net Income Per Share (Schedule Of Anti-Dilutive Shares Excluded From Computation Of Net Income Per Share) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total | 1,423,000 | 888,000 | 1,652,000 | 479,000 |
Common Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total | 1,205,000 | 219,000 | 1,313,000 | 127,000 |
Restricted Stock Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total | 218,000 | 669,000 | 339,000 | 352,000 |
Geographic Information And Si33
Geographic Information And Significant Customers (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015USD ($)customer | Sep. 30, 2014 | Sep. 30, 2015USD ($)customer | Sep. 30, 2014 | Dec. 31, 2014USD ($)customer | |
Concentration Risk [Line Items] | |||||
Accounts receivable | $ | $ 8,832 | $ 8,832 | $ 8,200 | ||
Commission Revenue [Member] | Major Medical Individual And Family Insurance Plans [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 61.00% | 64.00% | 52.00% | 64.00% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Number of significant customers | 1 | 1 | 3 | ||
Accounts Receivable [Member] | Customer One [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 66.00% | 30.00% | |||
Accounts Receivable [Member] | Customer Two [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 17.00% | ||||
Accounts Receivable [Member] | Customer Three [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 14.00% |
Geographic Information And Si34
Geographic Information And Significant Customers (Schedule Of Long Lived Assets By Geographical Areas) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Long-lived assets | $ 36,486 | $ 40,189 |
UNITED STATES | ||
Long-lived assets | 36,051 | 39,752 |
CHINA | ||
Long-lived assets | $ 435 | $ 437 |
Geographic Information And Si35
Geographic Information And Significant Customers (Schedule Of Revenue By Major Customers) (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Humana [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Concentration risk, percentage | 24.00% | ||||
Anthem [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Concentration risk, percentage | [1] | 10.00% | |||
UnitedHealthcare [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Concentration risk, percentage | [2] | 10.00% | |||
Aetna [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Concentration risk, percentage | [3] | 9.00% | |||
Sales [Member] | Humana [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Concentration risk, percentage | 19.00% | 23.00% | 23.00% | ||
Sales [Member] | Anthem [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Concentration risk, percentage | [1] | 10.00% | 11.00% | 11.00% | |
Sales [Member] | UnitedHealthcare [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Concentration risk, percentage | [2] | 11.00% | 10.00% | 10.00% | |
Sales [Member] | Aetna [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Concentration risk, percentage | [3] | 9.00% | 9.00% | 10.00% | |
Major Medical Individual And Family Insurance Plans [Member] | Commission Revenue [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Concentration risk, percentage | 61.00% | 64.00% | 52.00% | 64.00% | |
[1] | also includes other carriers owned by Anthem. | ||||
[2] | UnitedHealthcare also includes other carriers owned by UnitedHealthcare. | ||||
[3] | Aetna also includes other carriers owned by Aetna. |
Restructuring Charges (Narrativ
Restructuring Charges (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2015USD ($)position | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 0 | $ 0 | $ 4,541 | $ 0 | |
Employee Termination Benefits and Related Costs [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 3,900 | ||||
Facility and Other Termination Costs [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 600 | $ 0 | $ 0 | $ 637 | $ 0 |
UNITED STATES | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of positions eliminated | position | 160 | ||||
Number of positions eliminated, period percent | 15.00% |
Restructuring Charges (Restruct
Restructuring Charges (Restructuring Activities) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 0 | $ 0 | $ 4,541 | $ 0 | |
Employee Termination Costs [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | 0 | 3,791 | 0 | |
Non-cash Employee Termination Costs - Stock-based Compensation [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | 0 | 113 | 0 | |
Facility and Other Termination Costs [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 600 | $ 0 | $ 0 | $ 637 | $ 0 |
Restructuring Charges (Liabilit
Restructuring Charges (Liability Activities) (Details) | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 0 |
Charges | 4,428,000 |
Payments | (3,939,000) |
Ending balance | 489,000 |
Less: non-current restructuring charges associated with facilities | (232,000) |
Restructuring charges liability - current | 257,000 |
Employee Termination Costs [Member] | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 0 |
Charges | 3,791,000 |
Payments | (3,779,000) |
Ending balance | 12,000 |
Facility and Other Termination Costs [Member] | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 0 |
Charges | 637,000 |
Payments | (160,000) |
Ending balance | $ 477,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Sep. 30, 2015USD ($) | Mar. 10, 2015class_action_lawsuit | Dec. 31, 2014USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |||
Number of class action lawsuits filed against Company | 2 | ||
Provision for expected and allowed claims | $ | $ 0 | $ 0 |