Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 31, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
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 | 18,341,531 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 67,268 | $ 62,710 |
Accounts receivable | 7,613 | 9,647 |
Prepaid expenses and other current assets | 5,964 | 5,185 |
Total current assets | 80,845 | 77,542 |
Property and equipment, net | 6,104 | 7,364 |
Other assets | 4,348 | 4,697 |
Intangible assets, net | 8,840 | 9,620 |
Goodwill | 14,096 | 14,096 |
Total assets | 114,233 | 113,319 |
Current liabilities: | ||
Accounts payable | 2,332 | 3,012 |
Accrued compensation and benefits | 9,030 | 14,386 |
Accrued marketing expenses | 1,656 | 10,698 |
Deferred revenue | 1,416 | 392 |
Other current liabilities | 3,922 | 3,448 |
Total current liabilities | 18,356 | 31,936 |
Non-current liabilities | 3,275 | 4,962 |
Stockholders’ equity: | ||
Common stock | 29 | 29 |
Additional paid-in capital | 271,070 | 266,699 |
Treasury stock, at cost | (199,998) | (199,998) |
Retained earnings | 21,320 | 9,498 |
Accumulated other comprehensive income | 181 | 193 |
Total stockholders’ equity | 92,602 | 76,421 |
Total liabilities and stockholders’ equity | $ 114,233 | $ 113,319 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenue | ||||
Commission | $ 29,941 | $ 34,942 | $ 133,977 | $ 130,157 |
Other | 2,138 | 3,282 | 9,223 | 9,248 |
Total revenue | 32,079 | 38,224 | 143,200 | 139,405 |
Operating costs and expenses: | ||||
Cost of revenue | 30 | 443 | 2,747 | 3,527 |
Marketing and advertising | 10,206 | 9,349 | 44,024 | 44,086 |
Customer care and enrollment | 11,259 | 9,462 | 31,869 | 28,981 |
Technology and content | 8,257 | 8,036 | 25,053 | 27,400 |
General and administrative | 9,122 | 7,749 | 28,066 | 23,237 |
Restructuring charge (benefit) | (139) | 0 | (297) | 4,541 |
Amortization of intangible assets | 260 | 260 | 780 | 893 |
Total operating costs and expenses | 38,995 | 35,299 | 132,242 | 132,665 |
Income (loss) from operations | (6,916) | 2,925 | 10,958 | 6,740 |
Other income (expense) | 7 | (27) | (25) | (50) |
Income (loss) before benefit for income taxes | (6,909) | 2,898 | 10,933 | 6,690 |
Benefit for income taxes | (1,173) | (737) | (889) | (613) |
Net income (loss) | $ (5,736) | $ 3,635 | $ 11,822 | $ 7,303 |
Net income (loss) per share: | ||||
Basic (in usd per share) | $ (0.31) | $ 0.20 | $ 0.65 | $ 0.41 |
Diluted (in usd per share) | $ (0.31) | $ 0.20 | $ 0.65 | $ 0.40 |
Weighted-average number of shares used in per share amounts: | ||||
Basic (in shares) | 18,329 | 18,093 | 18,247 | 17,969 |
Diluted (in shares) | 18,329 | 18,240 | 18,323 | 18,079 |
Comprehensive income (loss): | ||||
Foreign currency translation adjustment | $ (5) | $ 10 | $ (12) | $ 15 |
Comprehensive income (loss) | $ (5,741) | $ 3,645 | $ 11,810 | $ 7,318 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating activities | ||
Net income | $ 11,822 | $ 7,303 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,749 | 3,122 |
Amortization of internally-developed software | 659 | 449 |
Amortization of book-of-business consideration | 1,608 | 1,998 |
Amortization of intangible assets | 780 | 893 |
Stock-based compensation expense | 5,356 | 5,434 |
Other non-cash items | (90) | 180 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,034 | (618) |
Prepaid expenses and other assets | (1,236) | (1,150) |
Accounts payable | (456) | (3,892) |
Accrued compensation and benefits | (5,356) | 3,037 |
Accrued marketing expenses | (9,042) | (7,411) |
Deferred revenue | 1,024 | 2,650 |
Accrued restructuring charge | (433) | 489 |
Other liabilities | (636) | (12) |
Net cash provided by operating activities | 8,783 | 12,472 |
Investing activities | ||
Purchases of property and equipment and other assets | (3,165) | (2,335) |
Net cash used in investing activities | (3,165) | (2,335) |
Financing activities | ||
Net proceeds from exercise of common stock options | 60 | 1,326 |
Cash used to net-share settle equity awards | (1,044) | (824) |
Principal payments in connection with capital leases | (64) | (57) |
Net cash provided by (used in) financing activities | (1,048) | 445 |
Effect of exchange rate changes on cash and cash equivalents | (12) | 19 |
Net increase in cash and cash equivalents | 4,558 | 10,601 |
Cash and cash equivalents at beginning of period | 62,710 | 51,415 |
Cash and cash equivalents at end of period | $ 67,268 | $ 62,016 |
Summary Of Business And Signifi
Summary Of Business And Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
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 Medicare-related, individual and family, 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. 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, 2016 , the condensed consolidated statements of comprehensive income (loss) for the three and nine months ended September 30, 2015 and 2016 and the condensed consolidated statements of cash flows for the nine months ended September 30, 2015 and 2016 , respectively, are unaudited. The condensed consolidated balance sheet data as of December 31, 2015 was derived from the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2015 , which was filed with the Securities and Exchange Commission on March 14, 2016. 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, 2015 , and include all adjustments necessary for the fair presentation of eHealth’s financial position as of September 30, 2016 , its results of operations for the three and nine months ended September 30, 2015 and 2016 and its cash flows for the nine months ended September 30, 2015 and 2016 . All adjustments are of a normal recurring nature. The results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results to be expected for any subsequent period or for the fiscal year ending December 31, 2016 . In connection with the recent changes in our senior management and a strategic review of our business, we recorded approximately $ 5.5 million of severance, management consulting and legal fees in the nine months ended September 30, 2016 , of which $ 4.8 million is included in general and administrative expenses and $ 0.7 million is included in marketing and advertising expenses in the accompanying condensed consolidated statements of comprehensive income (loss). Seasonality — A greater number of our Medicare-related health insurance 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 of the Medicare Advantage and Medicare Part D prescription drug policies we have sold 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. Our Medicare plan-related commission revenue is highest in our first quarter and is higher in our fourth quarter compared to our second and third quarters. The majority of our individual and family health insurance plans are sold in the annual 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. Individuals and families generally are not able to purchase individual and family health insurance outside of these open enrollment periods, unless they qualify for a special enrollment period as a result of certain qualifying events, such as losing employer-sponsored health insurance or moving to another state. 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 February 2016, the FASB issued ASU No. 2016-02 (ASU 2016-02) "Leases (Topic 842)." ASU 2016-02 requires lessees to put leases on their balance sheets but recognize expenses on their income statements; for lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct finance leases. The guidance also eliminates existing real estate-specific provisions for all entities. The new standard is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted. We are currently in the process of evaluating the impact of the adoption of ASU 2016-02 on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-08 (ASU 2016-08) "Revenue from Contracts with Customers (Topic 606)." ASU 2016-8 requires an entity to determine whether it is a principal or an agent in a transaction in which another party is involved in providing goods or services to a customer by evaluating the nature of its promise to the customer. The new ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. 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 2016-08 on our consolidated financial statements. In April 2016, the FASB issued ASU No. 2016-10 (ASU 2016-10), "Identifying Performance Obligations and Licensing." ASU 2016-10 provides guidance in identifying performance obligations and determining the appropriate accounting for licensing arrangements. The effective date and transition requirements for this ASU are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by ASU 2014-09). We are currently in the process of evaluating the impact of the adoption of ASU 2016-10 on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15 (ASU 2016-15), "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments." ASU 2016-15 provides guidance on how certain cash receipts and cash payments are presented on the statement of cash flows. ASU 2016-15 is effective for annual reporting periods beginning after December 15, 2017. Early adoption is permitted. We are currently in the process of evaluating the impact of the adoption of ASU 2016-15 on our consolidated financial statements. Recently Adopted Accounting Standards — In April 2015, the FASB issued ASU No. 2015-05 (ASU 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 adopted this standard prospectively in the first quarter of 2016. Prior periods were not adjusted. The adoption of this standard did not have a material effect on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09 (ASU 2016-09), "Improvements to Employee Share-Based Payment Accounting (Topic 718)." ASU 2016-09 simplifies various aspects related to how share-based payments are accounted for and presented in the consolidated financial statements. The amendments include income tax consequences, the accounting for forfeitures, the classification of awards as either equity or liabilities and the classification on the statement of cash flows. It is effective for the first interim period beginning after December 15, 2016 and early adoption is permitted. We adopted this standard in the first quarter of 2016. Under ASU 2016-09, eHealth classifies the excess income tax benefits from stock-based compensation arrangements as a discrete item within income tax expense, rather than recognizing such excess income tax benefits in additional paid-in capital. As required by ASU 2016-09, this guidance was applied using a modified retrospective transition method and was effective as of January 1, 2016. The adoption of this guidance did not have a material effect to retained earnings or other components of equity or net assets at the beginning of the period of adoption. Under ASU 2016-09, excess income tax benefits from stock-based compensation arrangements are classified as cash flows from operations rather than as cash flows from financing activities. We elected to apply the cash flow classification guidance of ASU 2016-09 prospectively for the nine-months ended September 30, 2016. Prior periods were not adjusted. Under ASU 2016-09, when shares are withheld from an employee's exercise of stock awards to fund our payment of the employee's taxes, the payment is classified as a financing activity. The adoption of this provision did not have a material effect on the cash flow statements from prior periods. In addition, we have elected to continue to estimate the number of stock-based awards expected to vest, as permitted by ASU 2016-09, rather than electing to account for forfeitures as they occur. |
Balance Sheet Accounts
Balance Sheet Accounts | 9 Months Ended |
Sep. 30, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Accounts | Balance Sheet Accounts Cash and Cash Equivalents— As of December 31, 2015 and September 30, 2016 , 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, 2015 and September 30, 2016 , 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, 2015 and 2016 . As of December 31, 2015 and September 30, 2016 , our cash and cash equivalent balances were invested as follows (in thousands): December 31, 2015 September 30, 2016 Cash $ 8,086 $ 7,591 Money market funds 54,624 59,677 Total cash and cash equivalents $ 62,710 $ 67,268 Our money market funds reflect unadjusted quoted prices in active markets for identical assets and are classified as Level 1 as of December 31, 2015 and September 30, 2016 . Accounts Receivable— As of December 31, 2015 and September 30, 2016 , our accounts receivable consisted of the following (in thousands): December 31, 2015 September 30, 2016 Commission receivable $ 6,136 $ 1,794 Accounts receivable — from other revenues 3,511 431 Commissions receivable — from Medicare renewals — 5,388 Total accounts receivable $ 9,647 $ 7,613 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2016 | |
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, 2015 3,542 Restricted stock units granted (763 ) Options granted (335 ) Restricted stock units cancelled (1) 137 Options cancelled (2) 3 Shares available for grant at September 30, 2016 2,584 (1) Restricted stock units cancelled does not include 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 stock options cancelled under the 2005 Stock Plan and 2006 Equity Incentive Plan, as these plans were 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, 2015 1,275 $ 18.79 2.79 $ — Granted 335 $ 13.22 Exercised (5 ) $ 12.98 Cancelled (605 ) $ 16.63 Balance outstanding at September 30, 2016 1,000 $ 18.25 3.67 $ 45 Vested and expected to vest at September 30, 2016 954 $ 18.47 3.53 $ 40 Exercisable at September 30, 2016 682 $ 20.05 1.81 $ 1 (1) Includes certain stock options with both service and market-based vesting criteria granted to our executive officers. (2) The aggregate intrinsic value is calculated as the difference between eHealth’s closing stock price as of December 31, 2015 and September 30, 2016 and the exercise price of in-the-money options as of those dates. 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, 2015 966 $ 15.62 2.83 $ 9,636 Granted 764 $ 11.39 Vested (280 ) $ 18.78 Cancelled (208 ) $ 10.22 Balance outstanding at September 30, 2016 1,242 $ 13.36 2.77 $ 13,901 (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, 2015 and September 30, 2016 multiplied by the number of restricted stock units outstanding as of December 31, 2015 and September 30, 2016 , respectively. Stock Repurchase Programs— We had no stock repurchase activity during the three and nine months ended September 30, 2016 . In addition to 10,663,888 shares repurchased under our past repurchase programs as of September 30, 2016 , we have in treasury 451,987 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, 2015 and September 30, 2016 , we had a total of 11,025,933 shares and 11,115,875 shares, respectively, held in treasury. The following table summarizes stock-based compensation expense recorded during the three and nine months ended September 30, 2015 and 2016 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2016 2015 2016 Stock options $ 351 $ 191 $ 1,184 $ 825 Restricted stock units 1,225 1,156 4,250 4,531 Total stock-based compensation expense $ 1,576 $ 1,347 $ 5,434 $ 5,356 The following table summarizes stock-based compensation expense by operating function for the three and nine months ended September 30, 2015 and 2016 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2016 2015 2016 Marketing and advertising $ 461 $ 19 $ 1,498 $ 1,038 Customer care and enrollment 110 90 366 360 Technology and content 362 384 1,308 1,293 General and administrative 643 854 2,149 2,665 Restructuring charge — — 113 — Total stock-based compensation expense $ 1,576 $ 1,347 $ 5,434 $ 5,356 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table summarizes our benefit for income taxes and our effective tax rates for the three and nine months ended September 30, 2015 and 2016 (in thousands, except effective tax rate): Three Months Ended September 30, Nine Months Ended September 30, 2015 2016 2015 2016 Income (loss) before benefit for income taxes $ 2,898 $ (6,909 ) $ 6,690 $ 10,933 Benefit for income taxes $ (737 ) $ (1,173 ) $ (613 ) $ (889 ) Effective tax rate (25.4 )% 17.0 % (9.2 )% (8.1 )% In the three and nine months ended September 30, 2016 , we recorded benefit for income taxes of $1.2 million and $0.9 million , respectively, primarily related to a $1.4 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 tax and a foreign tax rate differential. 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, 2016 as we believe it is not more likely than not that the net deferred tax assets will be 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. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding for the period. Diluted net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted-average number of common and common equivalent shares outstanding during the period. Diluted net income (loss) 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 (loss) per share by application of the treasury stock method. The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, 2015 2016 2015 2016 Basic: Numerator: Net income (loss) $ 3,635 $ (5,736 ) $ 7,303 $ 11,822 Denominator: Weighted-average number of common stock shares outstanding 18,093 18,329 17,969 18,247 Net income (loss) per share—basic: $ 0.20 $ (0.31 ) $ 0.41 $ 0.65 Diluted: Numerator: Net income (loss) $ 3,635 $ (5,736 ) $ 7,303 $ 11,822 Denominator: Weighted-average number of common stock shares outstanding 18,093 18,329 17,969 18,247 Weighted-average number of options 42 — 29 22 Weighted-average number of restricted stock units 105 — 81 54 Total common stock shares used in diluted per share calculation (1) 18,240 18,329 18,079 18,323 Net income (loss) per share—diluted: $ 0.20 $ (0.31 ) $ 0.40 $ 0.65 (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, 2016. For each of the three and nine month periods ended September 30, 2015 and 2016 , we had securities outstanding that could potentially dilute net income (loss) per share, but the shares from the assumed exercise of these securities were excluded in the computation of diluted net income (loss) 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 (loss) per share consisted of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2016 2015 2016 Common stock options 1,205 1,443 1,313 1,307 Restricted stock units 218 700 339 271 Total 1,423 2,143 1,652 1,578 |
Geographic Information And Sign
Geographic Information And Significant Customers | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Geographic Information And Significant Customers | Geographic Information and Significant Customers Geographic Information — Our long-lived assets consisted primarily of property and equipment, internally-developed software, 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 as of December 31, 2015 and September 30, 2016 were as follows (in thousands): December 31, 2015 September 30, 2016 United States $ 35,341 $ 32,796 China 436 388 Total $ 35,777 $ 33,184 Significant Customers —Substantially all revenue for the three and nine months ended September 30, 2015 and 2016 was generated from customers located in the United States. Health insurance carriers representing 10% or more of our total revenue in the three and nine months ended September 30, 2015 and 2016 are presented in the table below: Three Months Ended September 30, Nine Months Ended September 30, 2015 2016 2015 2016 Humana 19 % 9 % 24 % 23 % UnitedHealthcare (1) 11 % 15 % 10 % 12 % Aetna (2) 9 % 8 % 9 % 10 % Anthem (3) 10 % 10 % 10 % 8 % (1) UnitedHealthcare includes other carriers owned by UnitedHealthcare. (2) Aetna includes other carriers owned by Aetna. (3) Anthem includes other carriers owned by Anthem. Commission revenue attributable to Medicare-related health insurance plans was approximately 22% and 44% of our commission revenue in the three and nine months ended September 30, 2016 , respectively. Commission revenue attributable to Medicare-related health insurance plans was approximately 19% and 33% of our commission revenue in the three and nine months ended September 30, 2015 , respectively. Commission revenue attributable to major medical individual and family health insurance plans was approximately 62% and 44% of our commission revenue in the three and nine months ended September 30, 2016 , respectively. Commission revenue attributable to major medical individual and family health insurance plans was approximately 62% and 52% of our commission revenue in the three and nine months ended September 30, 2015 . 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 September 30, 2016 , two customers represented 47% and 16% of our $7.6 million outstanding accounts receivable balance. As of December 31, 2015, three customers represented 24% , 18% and 15% , respectively, of our $9.6 million outstanding accounts receivable balance. No other customers represented 10% or more of our total accounts receivable at December 31, 2015 and September 30, 2016 . We believe the potential for collection issues with any of our customers is minimal as of September 30, 2016 . Accordingly, our estimate for uncollectible amounts at September 30, 2016 was not material. |
Restructuring Charge
Restructuring Charge | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charge | Restructuring Charge 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 and $0.6 million for facility and other termination costs. The majority of the restructuring charge was 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. In the three and nine months ended September 30, 2016, we reversed $0.1 million and $0.3 million , respectively, related to facility exit costs as we reoccupied office space we had previously vacated and were also released from a lease for other office space we had previously vacated. The following table summarizes the total cash and non-cash restructuring charge recorded during the three and nine months ended September 30, 2015 and 2016, respectively (in thousands): Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 2015 2016 2015 2016 Employee termination costs $ — $ — $ 3,791 $ — Non-cash employee termination costs - stock-based compensation — — 113 — Facility and other termination costs — (139 ) 637 (297 ) Total restructuring charge (benefit) $ — $ (139 ) $ 4,541 $ (297 ) The following table summarizes the cash-based restructuring charge liability activity during the nine months ended September 30, 2016 (in thousands): Nine Months Ended September 30, 2016 Beginning balance Charges Payments Benefits Ending balance Employee termination costs $ 12 $ — $ (12 ) $ — $ — Facility and other termination costs (benefit) 421 — (124 ) (297 ) — Total restructuring liability $ 433 $ — $ (136 ) $ (297 ) $ — |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings — In May 2016, we received a Notice of Proposed Agency Action and Opportunity for Hearing (the “Notice”) from the Office of the Montana State Auditor, Commissioner of Securities & Insurance (“CSI”). The Notice proposed that the CSI take disciplinary action against a number of parties, including us, for alleged violations of the Montana Insurance Code. Specifically, with respect to us, the Notice alleged that we sold short-term health insurance to at least 211 individuals between January 1, 2012 and April 20, 2015 without being appointed by the relevant health insurance carrier in violation of Montana law. The Notice also alleged that we misrepresented pertinent facts or insurance policy provisions in connection with the sale of short-term health insurance and made certain omissions and/or misrepresentations regarding short-term health insurance. The CSI sought the following relief in the Notice (i) imposition of fines against us not to exceed $ 5,000 per violation; (ii) issuance of a cease and desist order to enjoin us from violations of the Montana Insurance Code; and (iii) suspension or revocation of our license to sell health insurance in Montana. In September 2016, the CSI dismissed us from the action without prejudice. We were not required to pay any amount or suffer any adverse consequence in connection with the dismissal. In the ordinary course of our business, we have received and may continue to receive inquiries from state regulators relating to various matters. We have become, and may in the future become, involved in litigation in the ordinary course of our business. If we are found to have violated laws or regulations in any jurisdiction, we could be subject to various fines and penalties, including revocation of our license to sell insurance in those states, and our business and financial results would be harmed. Revocation of any of our licenses or penalties in one jurisdiction could cause our license to be revoked or for us to face penalties in other jurisdictions. In addition, without a health insurance license in a jurisdiction, carriers would not pay us commissions for the products we sold in that jurisdiction, and we would not be able to sell new health insurance products in that jurisdiction. We could also be harmed to the extent that related publicity damages our reputation as a trusted source of objective information relating to health insurance and its affordability. It could also be costly to defend ourselves regardless of the outcome. At December 31, 2015 and September 30, 2016 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, 2016 | |
Accounting Policies [Abstract] | |
Basis Of Presentation | Basis of Presentation— The accompanying condensed consolidated balance sheet as of September 30, 2016 , the condensed consolidated statements of comprehensive income (loss) for the three and nine months ended September 30, 2015 and 2016 and the condensed consolidated statements of cash flows for the nine months ended September 30, 2015 and 2016 , respectively, are unaudited. The condensed consolidated balance sheet data as of December 31, 2015 was derived from the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2015 , which was filed with the Securities and Exchange Commission on March 14, 2016. 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, 2015 , and include all adjustments necessary for the fair presentation of eHealth’s financial position as of September 30, 2016 , its results of operations for the three and nine months ended September 30, 2015 and 2016 and its cash flows for the nine months ended September 30, 2015 and 2016 . All adjustments are of a normal recurring nature. The results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results to be expected for any subsequent period or for the fiscal year ending December 31, 2016 . |
Seasonality | Seasonality — A greater number of our Medicare-related health insurance 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 of the Medicare Advantage and Medicare Part D prescription drug policies we have sold 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. Our Medicare plan-related commission revenue is highest in our first quarter and is higher in our fourth quarter compared to our second and third quarters. The majority of our individual and family health insurance plans are sold in the annual 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. Individuals and families generally are not able to purchase individual and family health insurance outside of these open enrollment periods, unless they qualify for a special enrollment period as a result of certain qualifying events, such as losing employer-sponsored health insurance or moving to another state. |
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 February 2016, the FASB issued ASU No. 2016-02 (ASU 2016-02) "Leases (Topic 842)." ASU 2016-02 requires lessees to put leases on their balance sheets but recognize expenses on their income statements; for lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct finance leases. The guidance also eliminates existing real estate-specific provisions for all entities. The new standard is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted. We are currently in the process of evaluating the impact of the adoption of ASU 2016-02 on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-08 (ASU 2016-08) "Revenue from Contracts with Customers (Topic 606)." ASU 2016-8 requires an entity to determine whether it is a principal or an agent in a transaction in which another party is involved in providing goods or services to a customer by evaluating the nature of its promise to the customer. The new ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. 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 2016-08 on our consolidated financial statements. In April 2016, the FASB issued ASU No. 2016-10 (ASU 2016-10), "Identifying Performance Obligations and Licensing." ASU 2016-10 provides guidance in identifying performance obligations and determining the appropriate accounting for licensing arrangements. The effective date and transition requirements for this ASU are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by ASU 2014-09). We are currently in the process of evaluating the impact of the adoption of ASU 2016-10 on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15 (ASU 2016-15), "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments." ASU 2016-15 provides guidance on how certain cash receipts and cash payments are presented on the statement of cash flows. ASU 2016-15 is effective for annual reporting periods beginning after December 15, 2017. Early adoption is permitted. We are currently in the process of evaluating the impact of the adoption of ASU 2016-15 on our consolidated financial statements. Recently Adopted Accounting Standards — In April 2015, the FASB issued ASU No. 2015-05 (ASU 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 adopted this standard prospectively in the first quarter of 2016. Prior periods were not adjusted. The adoption of this standard did not have a material effect on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09 (ASU 2016-09), "Improvements to Employee Share-Based Payment Accounting (Topic 718)." ASU 2016-09 simplifies various aspects related to how share-based payments are accounted for and presented in the consolidated financial statements. The amendments include income tax consequences, the accounting for forfeitures, the classification of awards as either equity or liabilities and the classification on the statement of cash flows. It is effective for the first interim period beginning after December 15, 2016 and early adoption is permitted. We adopted this standard in the first quarter of 2016. Under ASU 2016-09, eHealth classifies the excess income tax benefits from stock-based compensation arrangements as a discrete item within income tax expense, rather than recognizing such excess income tax benefits in additional paid-in capital. As required by ASU 2016-09, this guidance was applied using a modified retrospective transition method and was effective as of January 1, 2016. The adoption of this guidance did not have a material effect to retained earnings or other components of equity or net assets at the beginning of the period of adoption. Under ASU 2016-09, excess income tax benefits from stock-based compensation arrangements are classified as cash flows from operations rather than as cash flows from financing activities. We elected to apply the cash flow classification guidance of ASU 2016-09 prospectively for the nine-months ended September 30, 2016. Prior periods were not adjusted. Under ASU 2016-09, when shares are withheld from an employee's exercise of stock awards to fund our payment of the employee's taxes, the payment is classified as a financing activity. The adoption of this provision did not have a material effect on the cash flow statements from prior periods. In addition, we have elected to continue to estimate the number of stock-based awards expected to vest, as permitted by ASU 2016-09, rather than electing to account for forfeitures as they occur. |
Balance Sheet Accounts (Tables)
Balance Sheet Accounts (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule Of Cash And Cash Equivalents | As of December 31, 2015 and September 30, 2016 , our cash and cash equivalent balances were invested as follows (in thousands): December 31, 2015 September 30, 2016 Cash $ 8,086 $ 7,591 Money market funds 54,624 59,677 Total cash and cash equivalents $ 62,710 $ 67,268 |
Schedule Of Accounts Receivable | As of December 31, 2015 and September 30, 2016 , our accounts receivable consisted of the following (in thousands): December 31, 2015 September 30, 2016 Commission receivable $ 6,136 $ 1,794 Accounts receivable — from other revenues 3,511 431 Commissions receivable — from Medicare renewals — 5,388 Total accounts receivable $ 9,647 $ 7,613 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
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, 2015 3,542 Restricted stock units granted (763 ) Options granted (335 ) Restricted stock units cancelled (1) 137 Options cancelled (2) 3 Shares available for grant at September 30, 2016 2,584 (1) Restricted stock units cancelled does not include 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 stock options cancelled under the 2005 Stock Plan and 2006 Equity Incentive Plan, as these plans were terminated with respect to the grant of additional awards. |
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, 2015 1,275 $ 18.79 2.79 $ — Granted 335 $ 13.22 Exercised (5 ) $ 12.98 Cancelled (605 ) $ 16.63 Balance outstanding at September 30, 2016 1,000 $ 18.25 3.67 $ 45 Vested and expected to vest at September 30, 2016 954 $ 18.47 3.53 $ 40 Exercisable at September 30, 2016 682 $ 20.05 1.81 $ 1 (1) Includes certain stock options with both service and market-based vesting criteria granted to our executive officers. (2) The aggregate intrinsic value is calculated as the difference between eHealth’s closing stock price as of December 31, 2015 and September 30, 2016 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, 2015 966 $ 15.62 2.83 $ 9,636 Granted 764 $ 11.39 Vested (280 ) $ 18.78 Cancelled (208 ) $ 10.22 Balance outstanding at September 30, 2016 1,242 $ 13.36 2.77 $ 13,901 (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, 2015 and September 30, 2016 multiplied by the number of restricted stock units outstanding as of December 31, 2015 and September 30, 2016 , respectively. |
Schedule Of Stock-Based Compensation Expense | The following table summarizes stock-based compensation expense recorded during the three and nine months ended September 30, 2015 and 2016 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2016 2015 2016 Stock options $ 351 $ 191 $ 1,184 $ 825 Restricted stock units 1,225 1,156 4,250 4,531 Total stock-based compensation expense $ 1,576 $ 1,347 $ 5,434 $ 5,356 The following table summarizes stock-based compensation expense by operating function for the three and nine months ended September 30, 2015 and 2016 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2016 2015 2016 Marketing and advertising $ 461 $ 19 $ 1,498 $ 1,038 Customer care and enrollment 110 90 366 360 Technology and content 362 384 1,308 1,293 General and administrative 643 854 2,149 2,665 Restructuring charge — — 113 — Total stock-based compensation expense $ 1,576 $ 1,347 $ 5,434 $ 5,356 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Summary Of Provision (Benefit) For Income Taxes And Effective Tax Rate | The following table summarizes our benefit for income taxes and our effective tax rates for the three and nine months ended September 30, 2015 and 2016 (in thousands, except effective tax rate): Three Months Ended September 30, Nine Months Ended September 30, 2015 2016 2015 2016 Income (loss) before benefit for income taxes $ 2,898 $ (6,909 ) $ 6,690 $ 10,933 Benefit for income taxes $ (737 ) $ (1,173 ) $ (613 ) $ (889 ) Effective tax rate (25.4 )% 17.0 % (9.2 )% (8.1 )% |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 (loss) per share (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, 2015 2016 2015 2016 Basic: Numerator: Net income (loss) $ 3,635 $ (5,736 ) $ 7,303 $ 11,822 Denominator: Weighted-average number of common stock shares outstanding 18,093 18,329 17,969 18,247 Net income (loss) per share—basic: $ 0.20 $ (0.31 ) $ 0.41 $ 0.65 Diluted: Numerator: Net income (loss) $ 3,635 $ (5,736 ) $ 7,303 $ 11,822 Denominator: Weighted-average number of common stock shares outstanding 18,093 18,329 17,969 18,247 Weighted-average number of options 42 — 29 22 Weighted-average number of restricted stock units 105 — 81 54 Total common stock shares used in diluted per share calculation (1) 18,240 18,329 18,079 18,323 Net income (loss) per share—diluted: $ 0.20 $ (0.31 ) $ 0.40 $ 0.65 (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, 2016. |
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 (loss) per share consisted of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2016 2015 2016 Common stock options 1,205 1,443 1,313 1,307 Restricted stock units 218 700 339 271 Total 1,423 2,143 1,652 1,578 |
Geographic Information And Si18
Geographic Information And Significant Customers (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule Of Long Lived Assets By Geographical Areas | Long-lived assets by geographical area as of December 31, 2015 and September 30, 2016 were as follows (in thousands): December 31, 2015 September 30, 2016 United States $ 35,341 $ 32,796 China 436 388 Total $ 35,777 $ 33,184 |
Schedule Of Revenue By Major Customers | Health insurance carriers representing 10% or more of our total revenue in the three and nine months ended September 30, 2015 and 2016 are presented in the table below: Three Months Ended September 30, Nine Months Ended September 30, 2015 2016 2015 2016 Humana 19 % 9 % 24 % 23 % UnitedHealthcare (1) 11 % 15 % 10 % 12 % Aetna (2) 9 % 8 % 9 % 10 % Anthem (3) 10 % 10 % 10 % 8 % (1) UnitedHealthcare includes other carriers owned by UnitedHealthcare. (2) Aetna includes other carriers owned by Aetna. (3) Anthem includes other carriers owned by Anthem. |
Restructuring Charge (Tables)
Restructuring Charge (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the total cash and non-cash restructuring charge recorded during the three and nine months ended September 30, 2015 and 2016, respectively (in thousands): Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 2015 2016 2015 2016 Employee termination costs $ — $ — $ 3,791 $ — Non-cash employee termination costs - stock-based compensation — — 113 — Facility and other termination costs — (139 ) 637 (297 ) Total restructuring charge (benefit) $ — $ (139 ) $ 4,541 $ (297 ) |
Schedule of Restructuring and Related Costs | The following table summarizes the cash-based restructuring charge liability activity during the nine months ended September 30, 2016 (in thousands): Nine Months Ended September 30, 2016 Beginning balance Charges Payments Benefits Ending balance Employee termination costs $ 12 $ — $ (12 ) $ — $ — Facility and other termination costs (benefit) 421 — (124 ) (297 ) — Total restructuring liability $ 433 $ — $ (136 ) $ (297 ) $ — |
Summary of Business And Signi20
Summary of Business And Significant Accounting Policies (Narrative) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($)state | |
Accounting Policies [Abstract] | |
Number of states in which the company is licensed to market and sell health insurance | state | 50 |
Operating Expenses | $ 5.5 |
General and administrative | |
Operating Expenses | 4.8 |
Marketing and advertising | |
Operating Expenses | $ 0.7 |
Balance Sheet Accounts (Schedul
Balance Sheet Accounts (Schedule Of Cash And Cash Equivalents) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Balance Sheet Related Disclosures [Abstract] | ||||||
Cash | $ 7,591,000 | $ 7,591,000 | $ 8,086,000 | |||
Money Market Funds, at Carrying Value | 59,677,000 | 59,677,000 | 54,624,000 | |||
Total cash and cash equivalents | 67,268,000 | $ 62,016,000 | 67,268,000 | $ 62,016,000 | 62,710,000 | $ 51,415,000 |
Cash and Cash Equivalents [Line Items] | ||||||
Unrealized gains or losses on cash equivalents | 0 | 0 | $ 0 | |||
Realized gains (losses) on sales of cash equivalents | $ 0 | $ 0 | $ 0 | $ 0 |
Balance Sheet Accounts (Sched22
Balance Sheet Accounts (Schedule Of Accounts Receivable) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | $ 7,613 | $ 9,647 |
Commission receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | 1,794 | 6,136 |
Accounts receivable—from other revenues | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | 431 | 3,511 |
Commissions receivable—from Medicare renewals | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | $ 5,388 | $ 0 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule Of Activity Under The Plans) (Details) - 2016 Equity Incentive Plan [Member] | 9 Months Ended | |
Sep. 30, 2016shares | ||
Shares Available for Grant | ||
Shares available for grant, beginning balance (shares) | 3,542,000 | |
Restricted stock units granted (shares) | (763,000) | |
Options granted (shares) | (335,000) | |
Restricted stock units cancelled (shares) | 137,000 | [1] |
Options cancelled (shares) | 3,000 | [2] |
Shares available for grant, ending balance (shares) | 2,584,000 | |
[1] | Restricted stock units cancelled does not include 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 stock options cancelled under the 2005 Stock Plan and 2006 Equity Incentive Plan, as these plans were terminated with respect to the grant of additional awards. |
Stockholders' Equity (Schedul24
Stockholders' Equity (Schedule Of Option Activity Under Stock Plans) (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | ||
Number of Stock Options | |||
Beginning balance outstanding (shares) | [1] | 1,275,000 | |
Granted (shares) | [1] | 335,000 | |
Exercised (shares) | [1] | (5,000) | |
Cancelled (shares) | [1] | (605,000) | |
Ending balance outstanding (shares) | [1] | 1,000,000 | 1,275,000 |
Number of Stock Options Vested and expected to vest (shares) | [1] | 954,000 | |
Number of Stock Options Exercisable (shares) | [1] | 682,000 | |
Weighted- Average Exercise Price | |||
Weighted-Average Exercise Price, beginning balance outstanding (usd per share) | $ 18.79 | ||
Weighted-Average Exercise Price, Granted (usd per share) | 13.22 | ||
Weighted-Average Exercise Price, Exercised (usd per share) | 12.98 | ||
Weighted-Average Exercise Price, Cancelled (usd per share) | 16.63 | ||
Weighted-Average Exercise Price, ending balance outstanding (usd per share) | 18.25 | $ 18.79 | |
Weighted-Average Exercise Price, Vested and expected to vest (usd per share) | 18.47 | ||
Weighted-Average Exercise Price, Exercisable (usd per share) | $ 20.05 | ||
Weighted-Average Remaining Contractual Life (years) | |||
Weighted-Average Remaining Contractual Life (years), outstanding | 3 years 8 months 1 day | 2 years 9 months 15 days | |
Weighted-Average Remaining Contractual Life (years), Vested and expected to vest | 3 years 6 months 11 days | ||
Weighted-Average Remaining Contractual Life (years), Exercisable | 1 year 9 months 22 days | ||
Aggregate Intrinsic Value | |||
Aggregate Intrinsic Value, beginning balance outstanding | [2] | $ 0 | |
Aggregate Intrinsic Value, ending balance outstanding | [2] | 45 | $ 0 |
Aggregate Intrinsic Value, Vested and expected to vest | [2] | 40 | |
Aggregate Intrinsic Value, Exercisable at | [2] | $ 1 | |
[1] | Includes certain stock options with both service and market-based vesting criteria granted to our executive officers. | ||
[2] | The aggregate intrinsic value is calculated as the difference between eHealth’s closing stock price as of December 31, 2015 and September 30, 2016 and the exercise price of in-the-money options as of those dates. |
Stockholders' Equity (Schedul25
Stockholders' Equity (Schedule Of Restricted Stock Unit Activity Under Stock Plans) (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | ||
Number of Restricted Stock Units | |||
Beginning balance outstanding (shares) | [1] | 966,000 | |
Granted (shares) | [1] | 764,000 | |
Vested (shares) | [1] | (280,000) | |
Cancelled (shares) | [1] | (208,000) | |
Ending balance outstanding (shares) | [1] | 1,242,000 | 966,000 |
Weighted-Average Grant Date Fair Value | |||
Weighted-Average Grant Date Fair Value, beginning balance outstanding (usd per share) | $ 15.62 | ||
Weighted-Average Grant Date Fair Value, Granted (usd per share) | 11.39 | ||
Weighted-Average Grant Date Fair Value, Vested (usd per share) | 18.78 | ||
Weighted-Average Grant Date Fair Value, Cancelled (usd per share) | 10.22 | ||
Weighted-Average Grant Date Fair Value, ending balance outstanding (usd per share) | $ 13.36 | $ 15.62 | |
Weighted-Average Remaining Contractual Life (years) | |||
Weighted-Average Remaining Contractual Life (years), balance outstanding | 2 years 9 months 7 days | 2 years 9 months 28 days | |
Aggregate Intrinsic Value | |||
Aggregate Intrinsic Value, Beginning Outstanding Balance | [2] | $ 9,636 | |
Aggregate Intrinsic Value, Ending Outstanding Balance | [2] | $ 13,901 | $ 9,636 |
[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, 2015 and September 30, 2016 multiplied by the number of restricted stock units outstanding as of December 31, 2015 and September 30, 2016, respectively. |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock repurchased during period (shares) | [1] | 0 | 0 | |
Treasury stock, number of shares held (shares) | 11,115,875 | 11,115,875 | 11,025,933 | |
Treasury shares held to satisfy tax withholdings (shares) | 451,987 | 451,987 | ||
Share Repurchase Programs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Treasury stock, number of shares held (shares) | 10,663,888 | 10,663,888 | ||
[1] | Includes certain restricted stock units with both service and performance-based or market-based vesting criteria granted to our executive officers. |
Stockholders' Equity (Schedul27
Stockholders' Equity (Schedule Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Stock options | $ 191 | $ 351 | $ 825 | $ 1,184 |
Restricted stock units | 1,156 | 1,225 | 4,531 | 4,250 |
Total stock-based compensation expense | $ 1,347 | $ 1,576 | $ 5,356 | $ 5,434 |
Stockholders' Equity (Schedul28
Stockholders' Equity (Schedule Of Stock-Based Compensation Expense By Operating Function) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Component Of Stock Based Compensation Expense [Line Items] | ||||
Total Stock-Based Compensation Expense | $ 1,347 | $ 1,576 | $ 5,356 | $ 5,434 |
Marketing and advertising | ||||
Component Of Stock Based Compensation Expense [Line Items] | ||||
Total Stock-Based Compensation Expense | 19 | 461 | 1,038 | 1,498 |
Customer care and enrollment | ||||
Component Of Stock Based Compensation Expense [Line Items] | ||||
Total Stock-Based Compensation Expense | 90 | 110 | 360 | 366 |
Technology and content | ||||
Component Of Stock Based Compensation Expense [Line Items] | ||||
Total Stock-Based Compensation Expense | 384 | 362 | 1,293 | 1,308 |
General and administrative | ||||
Component Of Stock Based Compensation Expense [Line Items] | ||||
Total Stock-Based Compensation Expense | 854 | 643 | 2,665 | 2,149 |
Restructuring charge | ||||
Component Of Stock Based Compensation Expense [Line Items] | ||||
Total Stock-Based Compensation Expense | $ 0 | $ 0 | $ 0 | $ 113 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Income (loss) before benefit for income taxes | $ (6,909) | $ 2,898 | $ 10,933 | $ 6,690 |
Benefit for income taxes | $ (1,173) | $ (737) | $ (889) | $ (613) |
Effective tax rate | 17.00% | (25.40%) | (8.10%) | (9.20%) |
Unrecognized tax benefits, period increase (decrease) | $ (1,400) | $ (800) |
Net Income (Loss) Per Share (Sc
Net Income (Loss) 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, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ (5,736) | $ 3,635 | $ 11,822 | $ 7,303 |
Weighted-average number of common stock shares outstanding (in shares) | 18,329 | 18,093 | 18,247 | 17,969 |
Net income (loss) per share-basic (usd per share) | $ (0.31) | $ 0.20 | $ 0.65 | $ 0.41 |
Weighted-average number of options (in shares) | 0 | 42 | 22 | 29 |
Weighted-average number of restricted stock units (in shares) | 0 | 105 | 54 | 81 |
Total common stock shares used in diluted per share calculation (in shares) | 18,329 | 18,240 | 18,323 | 18,079 |
Net income (loss) per share—diluted (usd per share) | $ (0.31) | $ 0.20 | $ 0.65 | $ 0.40 |
Net Income (Loss) Per Share (31
Net Income (Loss) Per Share (Schedule Of Anti-Dilutive Shares Excluded From Computation Of Net Income Per Share) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total (in shares) | 2,143 | 1,423 | 1,578 | 1,652 |
Common stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total (in shares) | 1,443 | 1,205 | 1,307 | 1,313 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total (in shares) | 700 | 218 | 271 | 339 |
Geographic Information And Si32
Geographic Information And Significant Customers (Schedule Of Long Lived Assets By Geographical Areas) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Long-lived assets | $ 33,184 | $ 35,777 |
United States | ||
Long-lived assets | 32,796 | 35,341 |
China | ||
Long-lived assets | $ 388 | $ 436 |
Geographic Information And Si33
Geographic Information And Significant Customers (Schedule Of Revenue By Major Customers) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Humana | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 9.00% | 19.00% | 23.00% | 24.00% |
UnitedHealthcare | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 15.00% | 11.00% | 12.00% | 10.00% |
Aetna | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 8.00% | 9.00% | 10.00% | 9.00% |
Anthem | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 10.00% | 10.00% | 8.00% | 10.00% |
Geographic Information And Si34
Geographic Information And Significant Customers (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016USD ($)customer | Sep. 30, 2015 | Sep. 30, 2016USD ($)customer | Sep. 30, 2015 | Dec. 31, 2015USD ($)customer | |
Concentration Risk [Line Items] | |||||
Accounts receivable | $ | $ 7,613 | $ 7,613 | $ 9,647 | ||
Customer Concentration Risk | Accounts Receivable | |||||
Concentration Risk [Line Items] | |||||
Number of significant customers | customer | 2 | 2 | 3 | ||
Customer Concentration Risk | Customer One | Accounts Receivable | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 47.00% | 24.00% | |||
Customer Concentration Risk | Customer Two | Accounts Receivable | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 16.00% | 18.00% | |||
Customer Concentration Risk | Customer Three | Accounts Receivable | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 15.00% | ||||
Customer Concentration Risk | Medicare-related Health Insurance Plans | Commission Revenue | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 22.00% | 19.00% | 44.00% | 33.00% | |
Customer Concentration Risk | Major Medical Individual And Family Insurance Plans | Commission Revenue | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 62.00% | 62.00% | 44.00% | 52.00% |
Restructuring Charge (Narrative
Restructuring Charge (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2015USD ($)position | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Charges | $ 0 | ||||
Restructuring Charges, Net of Accrual Adjustments | $ (139) | $ 0 | (297) | $ 4,541 | |
Employee Termination Benefits and Related Costs [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges | $ 3,900 | ||||
Facility and other termination costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges | $ 600 | 0 | |||
Restructuring Charges, Net of Accrual Adjustments | $ (139) | $ 0 | $ (297) | $ 637 | |
United States | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of positions eliminated | position | 160 | ||||
Number of positions eliminated, period percent | 15.00% |
Restructuring Charge (Restructu
Restructuring Charge (Restructuring Activities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||
Charges | $ (139) | $ 0 | $ (297) | $ 4,541 |
Employee termination costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 0 | 0 | 0 | 3,791 |
Non-cash employee termination costs - stock-based compensation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 0 | 0 | 0 | 113 |
Facility and other termination costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | $ (139) | $ 0 | $ (297) | $ 637 |
Restructuring Charge (Liability
Restructuring Charge (Liability Activities) (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended |
Mar. 30, 2015 | Sep. 30, 2016 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 433 | |
Charges | 0 | |
Payments | (136) | |
Benefits | (297) | |
Ending balance | 0 | |
Employee termination costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 12 | |
Charges | 0 | |
Payments | (12) | |
Benefits | 0 | |
Ending balance | 0 | |
Facility and other termination costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 421 | |
Charges | $ 600 | 0 |
Payments | (124) | |
Benefits | (297) | |
Ending balance | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Sep. 30, 2016USD ($) | May 31, 2016$ / violation | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |||
Damages sought (USD per violation) | $ / violation | 5,000 | ||
Provision for expected and allowed claims | $ | $ 0 | $ 0 |