Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 30, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
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 | 18,431,224 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 68,228 | $ 61,781 |
Accounts receivable | 27,902 | 9,213 |
Prepaid expenses and other current assets | 4,452 | 5,148 |
Total current assets | 100,582 | 76,142 |
Property and equipment, net | 5,703 | 5,608 |
Other assets | 4,416 | 4,473 |
Intangible assets, net | 8,320 | 8,580 |
Goodwill | 14,096 | 14,096 |
Total assets | 133,117 | 108,899 |
Current liabilities: | ||
Accounts payable | 1,699 | 5,112 |
Accrued compensation and benefits | 7,897 | 10,920 |
Accrued marketing expenses | 3,246 | 7,158 |
Deferred revenue | 730 | 959 |
Other current liabilities | 5,259 | 3,775 |
Total current liabilities | 18,831 | 27,924 |
Non-current liabilities | 1,425 | 3,374 |
Stockholders’ equity: | ||
Common stock | 29 | 29 |
Additional paid-in capital | 274,611 | 272,778 |
Treasury stock, at cost | (199,998) | (199,998) |
Retained earnings | 38,037 | 4,616 |
Accumulated other comprehensive income | 182 | 176 |
Total stockholders’ equity | 112,861 | 77,601 |
Total liabilities and stockholders’ equity | $ 133,117 | $ 108,899 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue | ||
Commission | $ 76,182 | $ 69,387 |
Other | 2,757 | 4,457 |
Total revenue | 78,939 | 73,844 |
Operating costs and expenses: | ||
Cost of revenue | 1,629 | 2,184 |
Marketing and advertising | 15,055 | 20,882 |
Customer care and enrollment | 12,109 | 10,400 |
Technology and content | 8,072 | 8,507 |
General and administrative | 9,992 | 7,928 |
Amortization of intangible assets | 260 | 260 |
Total operating costs and expenses | 47,117 | 50,161 |
Income from operations | 31,822 | 23,683 |
Other income (expense), net | 26 | (11) |
Income before provision (benefit) for income taxes | 31,848 | 23,672 |
Provision (benefit) for income taxes | (1,573) | 5,638 |
Net income | $ 33,421 | $ 18,034 |
Net income per share: | ||
Basic (in usd per share) | $ 1.82 | $ 0.99 |
Diluted (in usd per share) | $ 1.80 | $ 0.99 |
Weighted-average number of shares used in per share amounts: | ||
Basic (in shares) | 18,370 | 18,153 |
Diluted (in shares) | 18,561 | 18,217 |
Foreign currency translation adjustment, net of taxes | $ 6 | $ (14) |
Comprehensive income | $ 33,427 | $ 18,020 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating activities | ||
Net Income (Loss) | $ 33,421 | $ 18,034 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 762 | 1,005 |
Amortization of internally developed software | 291 | 214 |
Amortization of book-of-business consideration | 1,157 | 1,597 |
Amortization of intangible assets | 260 | 260 |
Stock-based compensation expense | 2,133 | 1,832 |
Other non-cash items | (59) | (31) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (18,689) | (9,978) |
Prepaid expenses and other assets | 107 | (153) |
Accounts payable | (3,417) | (1,265) |
Accrued compensation and benefits | (3,023) | (5,835) |
Accrued marketing expenses | (3,912) | (7,732) |
Deferred revenue | (229) | (60) |
Other liabilities | (374) | 6,809 |
Net cash provided by operating activities | 8,428 | 4,697 |
Investing activities | ||
Purchases of property and equipment and other assets | (1,664) | (411) |
Net cash used in investing activities | (1,664) | (411) |
Financing activities | ||
Cash used to net-share settle equity awards | (300) | (276) |
Principal payments in connection with capital leases | (32) | (20) |
Net cash used in financing activities | (332) | (296) |
Effect of exchange rate changes on cash and cash equivalents | 15 | (11) |
Net increase in cash and cash equivalents | 6,447 | 3,979 |
Cash and cash equivalents at beginning of period | 61,781 | 62,710 |
Cash and cash equivalents at end of period | $ 68,228 | $ 66,689 |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
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 a leading private health insurance exchange 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 sheets as of December 31, 2016 and March 31, 2017, the condensed consolidated statements of comprehensive income for the three months ended March 31, 2016 and 2017 and the condensed consolidated statements of cash flows for the three months ended March 31, 2016 and 2017, respectively, are unaudited. The condensed consolidated balance sheet data as of December 31, 2016 was derived from the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016, which was filed with the Securities and Exchange Commission on March 16, 2017. 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, 2016, and include all adjustments necessary for the fair presentation of eHealth’s financial position as of March 31, 2017, our results of operations for the three months ended March 31, 2016 and 2017 and our cash flows for the three months ended March 31, 2016 and 2017. All adjustments are of a normal recurring nature. The results for the three months ended March 31, 2017 are not necessarily indicative of the results to be expected for any subsequent period or for the fiscal year ending December 31, 2017. Principles of Consolidation— The condensed consolidated financial statements include the accounts of eHealth, Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). 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 life events, such as losing employer-sponsored health insurance or moving to another state. Operating Segments— We report segment information based on how our chief executive officer, who is our chief operating decision maker ("CODM"), regularly reviews our operating results, allocates resources and makes decisions regarding our business operations. The performance measures of our segments include total revenue and profit (loss). During the fourth quarter of 2016, we implemented a new operating structure to focus on our growth opportunities and objectives, while operating the business more efficiently. The new business structure is comprised of two operating segments, Medicare and Individual, Family and Small Business. These operating segments reflect the way our CODM views and evaluates our business performance and manages operations as well as allocates resources. The Medicare segment consists primarily of commissions earned from our sale of Medicare-related health insurance plans, including Medicare Advantage, Medicare Supplement and Medicare Part D prescription drug plans, and to a lesser extent, ancillary products sold to our Medicare-eligible customers, including but not limited to, dental and vision insurance, as well as our advertising program that allows Medicare-related carriers to purchase advertising on a separate website developed, hosted and maintained by us and our delivery and sale to third parties of Medicare-related health insurance leads generated by our ecommerce platforms and our marketing activities. The Individual, Family and Small Business segment consists primarily of commissions earned from our sale of individual and family and small business health insurance plans and ancillary products sold to our non-Medicare-eligible customers, including but not limited to, dental, vision, life, short term disability and long term disability insurance. To a lesser extent, the Individual, Family and Small Business segment consists of amounts earned from our online sponsorship program that allows carriers to purchase advertising space in specific markets in a sponsorship area on our website, our licensing to third parties the use of our health insurance ecommerce technology and our delivery and sale to third parties of individual and family health insurance leads generated by our ecommerce platforms and our marketing activities. Marketing and advertising, customer care and enrollment, technology and content and general and administrative operating expenses that are directly attributable to a segment are reported within the applicable segment. Indirect marketing and advertising, customer care and enrollment and technology and content operating expenses are allocated to each segment based on usage. Other indirect general and administrative operating expenses are managed in a corporate shared services environment and, since they are not the responsibility of segment operating management, are not allocated to the two operating segments and are presented as a reconciling item to our consolidated financial results. Segment profit (loss) is calculated as total revenue for the applicable segment less direct and allocated marketing and advertising, customer care and enrollment, technology and content and general and administrative operating expenses, excluding stock-based compensation, depreciation and amortization expense and amortization of intangible assets. Reclassifications For presentation purposes, certain prior period amounts have been reclassified to conform to the reporting in the current period financial statements. Specifically, we reclassified $0.2 million of operating expenses related to our licensing department for the three months ended March 31, 2016, previously reported as general and administrative expense, to customer care and enrollment expense. This reclassification did not affect previously reported net income, cash flows or stockholders' equity. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09 Revenue from Contracts with Customers (Topic 606) , requiring 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. ASU 2014-09 will supersede nearly all existing revenue recognition guidance under U.S. GAAP when it becomes effective. ASU 2014-09 may be adopted retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). We will adopt this new accounting standard on January 1, 2018, and we anticipate to use the full retrospective method to restate each prior reporting period presented. We anticipate the adoption of this new standard will have a material impact on our consolidated financial statements. Under the new standard, we currently expect to recognize Medicare-related, individual and family and ancillary health insurance plan commission revenue at the time the policy is sold equal to the estimated commissions to be earned by us over the initial and estimated renewal periods as opposed to our current treatment of recognizing revenue over the life of the policy. ASU 2014-09 will require us to make significant estimates, including, but not limited to, the estimated consideration to be paid to us over the estimated life of policies sold for which we are the broker of record. In February 2016, the FASB issued ASU No. 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 April 2016, the FASB issued ASU No. 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 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. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which clarifies guidance on the classification and presentation of restricted cash in the statement of cash flows. Under the ASU, changes in restricted cash and restricted cash equivalents would be included along with those of cash and cash equivalents in the statement of cash flows. As a result, entities would no longer present transfers between cash/equivalents and restricted cash/equivalents in the statement of cash flows. In addition, a reconciliation between the balance sheet and the statement of cash flows would be disclosed when the balance sheet includes more than one line item for cash/equivalents and restricted cash/equivalents. ASU 2016-18 will be effective for us beginning on January 1, 2018 and will be applied on a retrospective basis. Early adoption is permitted. We do not expect ASU 2016-18 to have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment . Under the new standard, goodwill impairment would be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. This ASU eliminates existing guidance that requires an entity to determine goodwill impairment by calculating the implied fair value of goodwill by hypothetically assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. The new standard is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019 with early adoption permitted for annual goodwill impairment tests performed after January 1, 2017. The standard must be applied prospectively. Upon adoption, the standard will impact how we assess goodwill for impairment. We are currently considering our timing of adoption. |
Balance Sheet Accounts
Balance Sheet Accounts | 3 Months Ended |
Mar. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Accounts | Balance Sheet Accounts Cash and Cash Equivalents— As of December 31, 2016 and March 31, 2017 , 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, 2016 and March 31, 2017 , 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 months ended March 31, 2016 and 2017. As of December 31, 2016 and March 31, 2017 , our cash and cash equivalent balances were invested as follows (in thousands): December 31, 2016 March 31, 2017 Cash $ 4,066 $ 2,792 Money market funds 57,715 65,436 Total cash and cash equivalents $ 61,781 $ 68,228 We used observable prices in active markets in determining the classification of our money market funds as Level 1 as of December 31, 2016 and March 31, 2017 As of December 31, 2016 and March 31, 2017 , our accounts receivable consisted of the following (in thousands): December 31, 2016 March 31, 2017 Commissions receivable $ 7,265 $ 26,671 Accounts receivable – for other revenue 1,948 1,231 Total accounts receivable $ 9,213 $ 27,902 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We define fair value as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques we use to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. We classify the inputs used to measure fair value into the following hierarchy: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities, or Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or Inputs other than quoted prices that are observable for the asset or liability Level 3 Unobservable inputs for the asset or liability Our cash equivalents were invested in money market funds and were classified as Level 1. We endeavor to utilize the best available information in measuring fair value. We used observable prices in active markets in determining the classification of our money market funds as Level 1. The following table is a summary our financial assets measured at fair value on a recurring basis and their classification within the fair value hierarchy (in thousands). December 31, 2016 March 31, 2017 Carrying Value Level 1 Total Carrying Value Level 1 Total Assets Money market funds $ 57,715 $ 57,715 $ 57,715 $ 65,436 $ 65,436 $ 65,436 Total assets measured and recorded at fair value $ 57,715 $ 57,715 $ 57,715 $ 65,436 $ 65,436 $ 65,436 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholder's Equity The following table summarizes activity under our 2014 Equity Incentive Plan (the “2014 Plan”) for the three month ended March 31, 2017 (in thousands): Shares Available for Grant 1 Shares available for grant December 31, 2016 1 2,267 Restricted stock units granted 2 (303 ) Options granted (162 ) Restricted stock units cancelled 3 47 Options cancelled 2 Shares available for grant March 31, 2017 1 1,851 (1) Shares available for grant do not include treasury stock shares that could be granted if we determined to do so. (2) Includes grants of restricted stock units with both service and performance-based vesting criteria. (3) Includes cancelled restricted stock units with both service and performance-based vesting criteria. The following table summarizes stock option activity under the Stock Plans (in thousands, except weighted-average exercise price 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, 2016 975 $ 18.14 3.5 $ 31 Granted 162 $ 12.08 Exercised (2 ) $ 11.37 Cancelled (192 ) $ 18.53 Balance outstanding at March 31, 2017 943 $ 17.03 4.5 $ 30 Vested and expected to vest at March 31, 2017 886 $ 17.28 4.4 $ 87 Exercisable at March 31, 2017 428 $ 21.39 2.3 $ 30 (1) Includes certain stock options with both service and market-based vesting criteria. (2) The aggregate intrinsic value is calculated as the difference between eHealth’s closing stock price as of December 31, 2016 and March 31, 2017 and the exercise price of in-the-money options as of those dates. The following table summarizes restricted stock unit activity under the Stock Plans (in thousands, except weighted-average grant date fair value and weighted-average remaining contractual life data): Number of Restricted Stock Units 1 Weighted-Average Grant Date Fair Value Weighted-Average Remaining Service Period Aggregate Intrinsic Value 2 Unvested as of December 31, 2016 1,523 $ 12.83 2.8 $ 13,901 Granted 303 $ 11.98 Vested (109 ) $ 13.86 Cancelled (48 ) $ 13.90 Unvested as of March 31, 2017 1,669 $ 12.58 2.6 $ 20,073 (1) Includes certain restricted stock units with both service and performance-based or market-based vesting criteria. (2) The aggregate intrinsic value is calculated as eHealth’s closing stock price as of December 31, 2016 and March 31, 2017 multiplied by the number of restricted stock units outstanding as of December 31, 2016 and March 31, 2017, respectively. Stock Repurchase Programs— We had no stock repurchase activity during the three months ended March 31, 2017. In addition to 10,663,888 shares repurchased under our past repurchase programs as of March 31, 2017, we have in treasury 499,250 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, 2016 and March 31, 2017, we had a total of 11,135,590 shares and 11,163,138 shares, respectively, held in treasury. Stock-Based Compensation— The following table summarizes stock-based compensation expense recorded during the three months ended March 31, 2016 and 2017 (in thousands): Three Months Ended 2016 2017 Common stock options $ 326 $ 187 Restricted stock units 1,506 1,946 Total stock-based compensation expense $ 1,832 $ 2,133 The following table summarizes stock-based compensation expense by operating function for the three months ended March 31, 2016 and 2017 (in thousands): Three Months Ended 2016 2017 Marketing and advertising $ 555 $ 215 Customer care and enrollment 123 12 Technology and content 435 394 General and administrative 719 1,512 Total stock-based compensation expense $ 1,832 $ 2,133 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
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 months ended March 31, 2016 and 2017 (in thousands, except effective tax rate): Three Months Ended 2016 2017 Income before provision (benefit) for income taxes $ 23,672 $ 31,848 Provision (benefit) for income taxes 5,638 (1,573 ) Effective tax rate 23.8 % (4.9 )% In the three months ended March 31, 2016, we recorded a provision for income taxes of $5.6 million , which primarily consisted of Federal and state alternative minimum income taxes, foreign income taxes and certain discrete items. In the three months ended March 31, 2017, we recorded a benefit for income taxes of $1.6 million primarily related to a $1.9 million decrease in our liability for unrecognized tax benefits partially offset by Federal and state minimum taxes and foreign taxes. Our effective tax rate in the three months ended March 31, 2017 was lower than the federal statutory rate primarily due to the recording of a valuation allowance against our federal and state deferred tax assets, offset by the reversal of previously recorded unrecognized tax benefits related to federal and state tax credits. We recorded a valuation allowance against the U.S. deferred tax assets in an earlier year and continue to maintain that full valuation allowance as of March 31, 2017 as we believe it is not more likely than not that the net deferred tax assets will be fully realized. The examination of our 2009 and 2010 California income tax returns by the California Franchise Tax Board was completed in the first quarter of 2017. We assessed the impact on our unrecognized tax benefits for all open years and recorded any necessary adjustments in the first quarter of 2017. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2016 2017 Basic: Numerator: Net income $ 18,034 $ 33,421 Denominator: Weighted-average number of common stock shares outstanding 18,153 18,370 Net income per share—basic: $ 0.99 $ 1.82 Diluted: Numerator: Net income $ 18,034 $ 33,421 Denominator: Net weighted average number of common stock shares outstanding 18,153 18,370 Weighted average number of options — 33 Weighted average number of restricted stock units 64 158 Total common stock shares used in per share calculation 18,217 18,561 Net income per share—diluted: $ 0.99 $ 1.80 For each of the three-month periods ended March 31, 2016 and 2017, 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 2016 2017 Common stock options 1,263 960 Restricted stock units 713 207 Total 1,976 1,167 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies Legal Proceedings —On January 26, 2017, a purported class action lawsuit was filed against us in the Superior Court of the State of California, County of Santa Clara. The complaint alleges that we negligently failed to take necessary precautions required to protect from unauthorized disclosure personally identifiable information contained on 2016 Form W-2s for current and former employees. The complaint purports to allege causes of action against us for negligence, violation of Section 17200 et seq. of the California Business & Professions Code, declaratory relief and breach of implied contract. The complaint seeks actual damages, punitive damages, statutory damages, costs, including experts’ fees and attorneys’ fees, pre-judgment and post-judgment interest as prescribed by law and equitable, injunctive and declaratory relief as appropriate. In April 2017, an additional purported class action lawsuit was filed against us in the Superior Court of the State of California, County of Santa Clara, relating to the same circumstances. The second complaint purports to allege causes of action against us for negligence, violation of California Customer Records Act (California Civil Code Section 1798.80 et seq.), violation of the California Confidentiality of Medical Information Act (California Civil Code Section 56 et seq.), invasion of privacy by public disclosure of private facts, breach of confidentiality and violation of the California Unfair Competition Law (California Business & Professions Code Section 17200 et seq.). The second complaint seeks actual damages, statutory damages, restitution, disgorgement, equitable, injunctive and declaratory relief, costs, including experts’ fees and attorneys’ fees and costs of prosecuting the action, and pre-judgment and post-judgment interest as prescribed by law. Because the cases are at a preliminary stage, we cannot estimate the likelihood of liability or the amount of potential damages. 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 of the states, 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 would 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, 2016 and March 31, 2017 , we had no material liabilities for outstanding claims included in our Condensed Consolidated Balance Sheets. |
Operating Segments, Geographic
Operating Segments, Geographic Information and Significant Customers | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Operating Segments, Geographic Information And Significant Customers | Operating Segments, Geographic Information and Significant Customers Operating Segments The following table presents summary results of our operating segments for the three months ended March 31, 2016, and 2017 (in thousands): Three Months Ended 2016 2017 Revenue Medicare $ 43,467 $ 57,974 Individual, Family and Small Business 30,377 20,965 Total revenue $ 73,844 $ 78,939 Segment profit Medicare segment profit $ 17,891 $ 30,695 Individual, Family and Small Business segment profit 15,555 11,079 Total segment profit 33,446 41,774 Corporate (6,666 ) (6,797 ) Stock-based compensation expense (1,832 ) (2,133 ) Depreciation and amortization (1,005 ) (762 ) Amortization of intangible assets (260 ) (260 ) Other income (expense), net (11 ) 26 Income before provision (benefit) for income taxes $ 23,672 $ 31,848 There are no internal revenue transactions between our operating segments. Our CODM does not separately evaluate assets by segment, and therefore assets by segment are not presented. 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, 2016 and March 31, 2017 were as follows (in thousands): December 31, 2016 March 31, 2017 United States $ 32,162 $ 31,918 China 391 414 Total $ 32,553 $ 32,332 Significant Customers Substantially all revenue for the three months ended March 31, 2016 and 2017 was generated from customers located in the United States. Carriers representing 10% or more of our total revenue for the three months ended March 31, 2016 and 2017 are presented in the table below: Three Months Ended 2016 2017 Humana 33 % 25 % UnitedHealthcare 1 10 % 18 % Aetna 2 11 % 10 % (1) UnitedHealthcare also includes other carriers owned by UnitedHealthcare. (2) Aetna also includes other carriers owned by Aetna. As of December 31, 2016, three customers represented 23% , 20% and 11% , respectively, or a combined total of 54% of our $9.2 million outstanding accounts receivable balance. As of March 31, 2017, three customers represented 51% , 15% and 13% , respectively, or a combined total of 79% , of our $27.9 million outstanding accounts receivable balance. No other customers represented 10% or more of our total accounts receivable at December 31, 2016 and March 31, 2017 . We believe the potential for collection issues with any of our customers was minimal as of March 31, 2017. Accordingly, our estimate for uncollectible amounts at March 31, 2017 was not material. |
Summary of Business and Signi13
Summary of Business and Significant Accounting Policies (Policy) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business— eHealth, Inc. (the “Company,” “eHealth,” “we” or “us”) is a leading private health insurance exchange 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 | Basis of Presentation- The accompanying condensed consolidated balance sheets as of December 31, 2016 and March 31, 2017, the condensed consolidated statements of comprehensive income for the three months ended March 31, 2016 and 2017 and the condensed consolidated statements of cash flows for the three months ended March 31, 2016 and 2017, respectively, are unaudited. The condensed consolidated balance sheet data as of December 31, 2016 was derived from the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016, which was filed with the Securities and Exchange Commission on March 16, 2017. 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, 2016, and include all adjustments necessary for the fair presentation of eHealth’s financial position as of March 31, 2017, our results of operations for the three months ended March 31, 2016 and 2017 and our cash flows for the three months ended March 31, 2016 and 2017. All adjustments are of a normal recurring nature. The results for the three months ended March 31, 2017 are not necessarily indicative of the results to be expected for any subsequent period or for the fiscal year ending December 31, 2017. |
Principles of Consolidation | Principles of Consolidation— The condensed consolidated financial statements include the accounts of eHealth, Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). |
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 life events, such as losing employer-sponsored health insurance or moving to another state. |
Operating Segments | Operating Segments— We report segment information based on how our chief executive officer, who is our chief operating decision maker ("CODM"), regularly reviews our operating results, allocates resources and makes decisions regarding our business operations. The performance measures of our segments include total revenue and profit (loss). During the fourth quarter of 2016, we implemented a new operating structure to focus on our growth opportunities and objectives, while operating the business more efficiently. The new business structure is comprised of two operating segments, Medicare and Individual, Family and Small Business. These operating segments reflect the way our CODM views and evaluates our business performance and manages operations as well as allocates resources. The Medicare segment consists primarily of commissions earned from our sale of Medicare-related health insurance plans, including Medicare Advantage, Medicare Supplement and Medicare Part D prescription drug plans, and to a lesser extent, ancillary products sold to our Medicare-eligible customers, including but not limited to, dental and vision insurance, as well as our advertising program that allows Medicare-related carriers to purchase advertising on a separate website developed, hosted and maintained by us and our delivery and sale to third parties of Medicare-related health insurance leads generated by our ecommerce platforms and our marketing activities. The Individual, Family and Small Business segment consists primarily of commissions earned from our sale of individual and family and small business health insurance plans and ancillary products sold to our non-Medicare-eligible customers, including but not limited to, dental, vision, life, short term disability and long term disability insurance. To a lesser extent, the Individual, Family and Small Business segment consists of amounts earned from our online sponsorship program that allows carriers to purchase advertising space in specific markets in a sponsorship area on our website, our licensing to third parties the use of our health insurance ecommerce technology and our delivery and sale to third parties of individual and family health insurance leads generated by our ecommerce platforms and our marketing activities. Marketing and advertising, customer care and enrollment, technology and content and general and administrative operating expenses that are directly attributable to a segment are reported within the applicable segment. Indirect marketing and advertising, customer care and enrollment and technology and content operating expenses are allocated to each segment based on usage. Other indirect general and administrative operating expenses are managed in a corporate shared services environment and, since they are not the responsibility of segment operating management, are not allocated to the two operating segments and are presented as a reconciling item to our consolidated financial results. Segment profit (loss) is calculated as total revenue for the applicable segment less direct and allocated marketing and advertising, customer care and enrollment, technology and content and general and administrative operating expenses, excluding stock-based compensation, depreciation and amortization expense and amortization of intangible assets. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09 Revenue from Contracts with Customers (Topic 606) , requiring 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. ASU 2014-09 will supersede nearly all existing revenue recognition guidance under U.S. GAAP when it becomes effective. ASU 2014-09 may be adopted retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). We will adopt this new accounting standard on January 1, 2018, and we anticipate to use the full retrospective method to restate each prior reporting period presented. We anticipate the adoption of this new standard will have a material impact on our consolidated financial statements. Under the new standard, we currently expect to recognize Medicare-related, individual and family and ancillary health insurance plan commission revenue at the time the policy is sold equal to the estimated commissions to be earned by us over the initial and estimated renewal periods as opposed to our current treatment of recognizing revenue over the life of the policy. ASU 2014-09 will require us to make significant estimates, including, but not limited to, the estimated consideration to be paid to us over the estimated life of policies sold for which we are the broker of record. In February 2016, the FASB issued ASU No. 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 April 2016, the FASB issued ASU No. 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 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. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which clarifies guidance on the classification and presentation of restricted cash in the statement of cash flows. Under the ASU, changes in restricted cash and restricted cash equivalents would be included along with those of cash and cash equivalents in the statement of cash flows. As a result, entities would no longer present transfers between cash/equivalents and restricted cash/equivalents in the statement of cash flows. In addition, a reconciliation between the balance sheet and the statement of cash flows would be disclosed when the balance sheet includes more than one line item for cash/equivalents and restricted cash/equivalents. ASU 2016-18 will be effective for us beginning on January 1, 2018 and will be applied on a retrospective basis. Early adoption is permitted. We do not expect ASU 2016-18 to have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment . Under the new standard, goodwill impairment would be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. This ASU eliminates existing guidance that requires an entity to determine goodwill impairment by calculating the implied fair value of goodwill by hypothetically assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. The new standard is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019 with early adoption permitted for annual goodwill impairment tests performed after January 1, 2017. The standard must be applied prospectively. Upon adoption, the standard will impact how we assess goodwill for impairment. We are currently considering our timing of adoption. |
Balance Sheet Accounts (Tables)
Balance Sheet Accounts (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule Of Cash And Cash Equivalents | As of December 31, 2016 and March 31, 2017 , our cash and cash equivalent balances were invested as follows (in thousands): December 31, 2016 March 31, 2017 Cash $ 4,066 $ 2,792 Money market funds 57,715 65,436 Total cash and cash equivalents $ 61,781 $ 68,228 |
Schedule Of Accounts Receivable | As of December 31, 2016 and March 31, 2017 , our accounts receivable consisted of the following (in thousands): December 31, 2016 March 31, 2017 Commissions receivable $ 7,265 $ 26,671 Accounts receivable – for other revenue 1,948 1,231 Total accounts receivable $ 9,213 $ 27,902 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Classifications of Fair Value Hierarchy | We classify the inputs used to measure fair value into the following hierarchy: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities, or Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or Inputs other than quoted prices that are observable for the asset or liability Level 3 Unobservable inputs for the asset or liability |
Summary of Financial Assets Measured at Fair Value on a Recurring Basis | The following table is a summary our financial assets measured at fair value on a recurring basis and their classification within the fair value hierarchy (in thousands). December 31, 2016 March 31, 2017 Carrying Value Level 1 Total Carrying Value Level 1 Total Assets Money market funds $ 57,715 $ 57,715 $ 57,715 $ 65,436 $ 65,436 $ 65,436 Total assets measured and recorded at fair value $ 57,715 $ 57,715 $ 57,715 $ 65,436 $ 65,436 $ 65,436 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule Of Stock Option Share Activity Under Stock Plans | The following table summarizes activity under our 2014 Equity Incentive Plan (the “2014 Plan”) for the three month ended March 31, 2017 (in thousands): Shares Available for Grant 1 Shares available for grant December 31, 2016 1 2,267 Restricted stock units granted 2 (303 ) Options granted (162 ) Restricted stock units cancelled 3 47 Options cancelled 2 Shares available for grant March 31, 2017 1 1,851 (1) Shares available for grant do not include treasury stock shares that could be granted if we determined to do so. (2) Includes grants of restricted stock units with both service and performance-based vesting criteria. (3) Includes cancelled restricted stock units with both service and performance-based vesting criteria. |
Schedule Of Activity Under Stock Plans | The following table summarizes stock option activity under the Stock Plans (in thousands, except weighted-average exercise price 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, 2016 975 $ 18.14 3.5 $ 31 Granted 162 $ 12.08 Exercised (2 ) $ 11.37 Cancelled (192 ) $ 18.53 Balance outstanding at March 31, 2017 943 $ 17.03 4.5 $ 30 Vested and expected to vest at March 31, 2017 886 $ 17.28 4.4 $ 87 Exercisable at March 31, 2017 428 $ 21.39 2.3 $ 30 (1) Includes certain stock options with both service and market-based vesting criteria. (2) The aggregate intrinsic value is calculated as the difference between eHealth’s closing stock price as of December 31, 2016 and March 31, 2017 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 under the Stock Plans (in thousands, except weighted-average grant date fair value and weighted-average remaining contractual life data): Number of Restricted Stock Units 1 Weighted-Average Grant Date Fair Value Weighted-Average Remaining Service Period Aggregate Intrinsic Value 2 Unvested as of December 31, 2016 1,523 $ 12.83 2.8 $ 13,901 Granted 303 $ 11.98 Vested (109 ) $ 13.86 Cancelled (48 ) $ 13.90 Unvested as of March 31, 2017 1,669 $ 12.58 2.6 $ 20,073 |
Schedule Of Stock-Based Compensation Expense By Award Type | The following table summarizes stock-based compensation expense recorded during the three months ended March 31, 2016 and 2017 (in thousands): Three Months Ended 2016 2017 Common stock options $ 326 $ 187 Restricted stock units 1,506 1,946 Total stock-based compensation expense $ 1,832 $ 2,133 |
Schedule Of Stock-Based Compensation Expense By Operating Function | The following table summarizes stock-based compensation expense by operating function for the three months ended March 31, 2016 and 2017 (in thousands): Three Months Ended 2016 2017 Marketing and advertising $ 555 $ 215 Customer care and enrollment 123 12 Technology and content 435 394 General and administrative 719 1,512 Total stock-based compensation expense $ 1,832 $ 2,133 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Summary Of Provision For Income Taxes And Effective Tax Rate | The following table summarizes our benefit for income taxes and our effective tax rates for the three months ended March 31, 2016 and 2017 (in thousands, except effective tax rate): Three Months Ended 2016 2017 Income before provision (benefit) for income taxes $ 23,672 $ 31,848 Provision (benefit) for income taxes 5,638 (1,573 ) Effective tax rate 23.8 % (4.9 )% |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule Of Computation Of Basic And Diluted Net Income 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 March 31, 2016 2017 Basic: Numerator: Net income $ 18,034 $ 33,421 Denominator: Weighted-average number of common stock shares outstanding 18,153 18,370 Net income per share—basic: $ 0.99 $ 1.82 Diluted: Numerator: Net income $ 18,034 $ 33,421 Denominator: Net weighted average number of common stock shares outstanding 18,153 18,370 Weighted average number of options — 33 Weighted average number of restricted stock units 64 158 Total common stock shares used in per share calculation 18,217 18,561 Net income per share—diluted: $ 0.99 $ 1.80 |
Schedule Of Anti-dilutive Shares Excluded From Computation Of Net Income 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 2016 2017 Common stock options 1,263 960 Restricted stock units 713 207 Total 1,976 1,167 |
Operating Segments, Geographi19
Operating Segments, Geographic Information and Significant Customers (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table presents summary results of our operating segments for the three months ended March 31, 2016, and 2017 (in thousands): Three Months Ended 2016 2017 Revenue Medicare $ 43,467 $ 57,974 Individual, Family and Small Business 30,377 20,965 Total revenue $ 73,844 $ 78,939 Segment profit Medicare segment profit $ 17,891 $ 30,695 Individual, Family and Small Business segment profit 15,555 11,079 Total segment profit 33,446 41,774 Corporate (6,666 ) (6,797 ) Stock-based compensation expense (1,832 ) (2,133 ) Depreciation and amortization (1,005 ) (762 ) Amortization of intangible assets (260 ) (260 ) Other income (expense), net (11 ) 26 Income before provision (benefit) for income taxes $ 23,672 $ 31,848 |
Schedule Of Long Lived Assets By Geographical Areas | Long-lived assets by geographical area as of December 31, 2016 and March 31, 2017 were as follows (in thousands): December 31, 2016 March 31, 2017 United States $ 32,162 $ 31,918 China 391 414 Total $ 32,553 $ 32,332 |
Schedule Of Revenue By Major Customers | Carriers representing 10% or more of our total revenue for the three months ended March 31, 2016 and 2017 are presented in the table below: Three Months Ended 2016 2017 Humana 33 % 25 % UnitedHealthcare 1 10 % 18 % Aetna 2 11 % 10 % (1) UnitedHealthcare also includes other carriers owned by UnitedHealthcare. (2) Aetna also includes other carriers owned by Aetna. |
Summary of Business and Signi20
Summary of Business and Significant Accounting Policies (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($)segmentstate | |
Accounting Policies [Abstract] | |
Number of states in which the Company is licensed to market and sell health insurance | state | 50 |
Number of operating segments | segment | 2 |
Prior period reclassification adjustment | $ | $ 0.2 |
Balance Sheet Accounts (Schedul
Balance Sheet Accounts (Schedule of Cash and Cash Equivalents) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Balance Sheet Related Disclosures [Abstract] | ||||
Cash | $ 2,792 | $ 4,066 | ||
Money market funds | 65,436 | 57,715 | ||
Total cash and cash equivalents | $ 68,228 | $ 61,781 | $ 66,689 | $ 62,710 |
Balance Sheet Accounts (Sched22
Balance Sheet Accounts (Schedule of Accounts Receivable) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | $ 27,902 | $ 9,213 |
Medicare renewal commissions receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | 26,671 | 7,265 |
Accounts receivable - for other revenues [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | $ 1,231 | $ 1,948 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 65,436 | $ 57,715 |
Total assets measured and recorded at fair value | 65,436 | 57,715 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 65,436 | 57,715 |
Total assets measured and recorded at fair value | 65,436 | 57,715 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 65,436 | 57,715 |
Total assets measured and recorded at fair value | $ 65,436 | $ 57,715 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - shares | 36 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares repurchased under share repurchase plan | 10,663,888 | |
Treasury shares that were previously surrendered by employees to satisfy tax withholdings | 499,250 | |
Treasury Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares, Outstanding | 11,163,138 | 11,135,590 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Stock Plan Activity) (Details) - 2014 Equity Incentive Plan [Member] shares in Thousands | 3 Months Ended | |
Mar. 31, 2017shares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Movement in Shares Available for Grant [Roll Forward] | ||
Shares available for grant | 2,267 | [1] |
Restricted stock units granted | (303) | [2] |
Options granted | (162) | |
Restricted stock units cancelled | 47 | [3] |
Options cancelled | 2 | |
Shares available for grant | 1,851 | [1] |
[1] | Shares available for grant do not include treasury stock shares that could be granted if we determined to do so. | |
[2] | Includes grants of restricted stock units with both service and performance-based vesting criteria. | |
[3] | Includes cancelled restricted stock units with both service and performance-based vesting criteria. |
Stockholders' Equity (Schedul26
Stockholders' Equity (Schedule of Option Activity Under Stock Plans) (Details) - Common stock options [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | ||
Number of Stock Options | |||
Stock options issued and outstanding | [1] | 975 | |
Granted | [1] | 162 | |
Exercised | [1] | (2) | |
Cancelled | [1] | (192) | |
Stock options issued and outstanding | [1] | 943 | 975 |
Options vested and expected to vest | [1] | 886 | |
Options exercisable | [1] | 428 | |
Weighted Average Exercise Price | |||
Weighted-average exercise price, balance outstanding | $ 18.14 | ||
Granted | 12.08 | ||
Exercised | 11.37 | ||
Cancelled | 18.53 | ||
Weighted-average exercise price, balance outstanding | 17.03 | $ 18.14 | |
Weighted-average exercise price, vested and expected to vest | 17.28 | ||
Weighted-average exercise price, exercisable | $ 21.39 | ||
Weighted-average remaining contractual life (years), balance outstanding | 4 years 6 months 11 days | 3 years 6 months 6 days | |
Weighted-average remaining contractual life (years), vested and expected to Vest | 4 years 5 months 1 day | ||
Weighted-average remaining contractual life (years), exercisable | 2 years 4 months 2 days | ||
Aggregate intrinsic value, balance outstanding | [2] | $ 30 | $ 31 |
Aggregate intrinsic value, vested and expected to vest | [2] | 87 | |
Aggregate intrinsic value, exercisable | [2] | $ 30 | |
[1] | Includes certain stock options with both service and market-based vesting criteria. | ||
[2] | The aggregate intrinsic value is calculated as the difference between eHealth’s closing stock price as of December 31, 2016 and March 31, 2017 and the exercise price of in-the-money options as of those dates. |
Stockholders' Equity (Schedul27
Stockholders' Equity (Schedule of Restricted Stock Unit Activity Under Stock Plans) (Details) - Restricted Stock Units [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Number of Restricted Stock Units | |||
Restricted Stock Units Issued And Outstanding | [1] | 1,523 | |
Granted | [1] | 303 | |
Vested | [1] | (109) | |
Cancelled | [1] | (48) | |
Restricted Stock Units Issued And Outstanding | [1] | 1,669 | |
Weighted-Average Grant Date Fair Value | |||
Weighted-Average Grant Date Fair Value, Balance | $ 12.83 | ||
Granted | 11.98 | ||
Vested | 13.86 | ||
Cancelled | 13.90 | ||
Weighted-Average Grant Date Fair Value, Balance | $ 12.58 | ||
Weighted-Average Remaining Service Period | 2 years 7 months 24 days | 2 years 9 months 7 days | |
Aggregate Intrinsic Value | [2] | $ 20,073 | $ 13,901 |
[1] | Includes certain restricted stock units with both service and performance-based or market-based vesting criteria. | ||
[2] | The aggregate intrinsic value is calculated as eHealth’s closing stock price as of December 31, 2016 and March 31, 2017 multiplied by the number of restricted stock units outstanding as of December 31, 2016 and March 31, 2017, respectively. |
Stockholders' Equity (Schedul28
Stockholders' Equity (Schedule of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 2,133 | $ 1,832 |
Common stock options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 187 | 326 |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 1,946 | $ 1,506 |
Stockholders' Equity (Schedul29
Stockholders' Equity (Schedule of Stock-Based Compensation Expense By Operating Function) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Component Of Stock Based Compensation Expense [Line Items] | ||
Total stock-based compensation expense | $ 2,133 | $ 1,832 |
Marketing And Advertising [Member] | ||
Component Of Stock Based Compensation Expense [Line Items] | ||
Total stock-based compensation expense | 215 | 555 |
Customer Care And Enrollment [Member] | ||
Component Of Stock Based Compensation Expense [Line Items] | ||
Total stock-based compensation expense | 12 | 123 |
Technology And Content [Member] | ||
Component Of Stock Based Compensation Expense [Line Items] | ||
Total stock-based compensation expense | 394 | 435 |
General And Administrative [Member] | ||
Component Of Stock Based Compensation Expense [Line Items] | ||
Total stock-based compensation expense | $ 1,512 | $ 719 |
Income Taxes Income Taxes (Deta
Income Taxes Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Income before provision (benefit) for income taxes | $ 31,848 | $ 23,672 |
Provision (benefit) for income taxes | $ (1,573) | $ 5,638 |
Effective tax rate | (4.90%) | 23.80% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Provision (benefit) for income taxes | $ (1,573) | $ 5,638 |
Decrease in unrecognized tax benefits | $ 1,900 |
Net Income Per Share (Schedule
Net Income Per Share (Schedule of Computation of Basic and Diluted Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Net income | $ 33,421 | $ 18,034 |
Weighted-average number of common stock shares outstanding | 18,370 | 18,153 |
Net income per share-basic (in usd per share) | $ 1.82 | $ 0.99 |
Weighted average number of options | 33 | 0 |
Weighted average number of restricted stock units | 158 | 64 |
Total common stock shares used in per share calculation | 18,561 | 18,217 |
Net income per share-diluted (in usd per share) | $ 1.80 | $ 0.99 |
Net Income Per Share (Schedul33
Net Income Per Share (Schedule of Anti-Dilutive Shares Excluded from Computation Of Net Income Per Share) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 1,167 | 1,976 |
Common stock options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 960 | 1,263 |
Restricted stock units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 207 | 713 |
Operating Segments, Geographi34
Operating Segments, Geographic Information and Significant Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 78,939 | $ 73,844 |
Stock-based compensation expense | (2,133) | (1,832) |
Depreciation and amortization | (762) | (1,005) |
Amortization of intangible assets | (260) | (260) |
Other income (expense), net | 26 | (11) |
Income before provision (benefit) for income taxes | 31,848 | 23,672 |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 78,939 | 73,844 |
Segment profit | 41,774 | 33,446 |
Operating Segments [Member] | Medicare [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 57,974 | 43,467 |
Segment profit | 30,695 | 17,891 |
Operating Segments [Member] | Individual, Family, And Small Business [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 20,965 | 30,377 |
Segment profit | 11,079 | 15,555 |
Corporate, Non-Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment profit | $ (6,797) | $ (6,666) |
Operating Segments, Geographi35
Operating Segments, Geographic Information and Significant Customers (Schedule Of Long-Lived Assets By Geographical Area) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||
Total | $ 32,332 | $ 32,553 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Total | 31,918 | 32,162 |
China [Member] | ||
Segment Reporting Information [Line Items] | ||
Total | $ 414 | $ 391 |
Operating Segments, Geographi36
Operating Segments, Geographic Information and Significant Customers (Schedule of Revenue by Major Customers) (Details) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Humana | |||
Revenue, Major Customer [Line Items] | |||
Major customer revenue, percentage | 25.00% | 33.00% | |
UnitedHealthcare | |||
Revenue, Major Customer [Line Items] | |||
Major customer revenue, percentage | [1] | 18.00% | 10.00% |
Aetna | |||
Revenue, Major Customer [Line Items] | |||
Major customer revenue, percentage | [2] | 10.00% | 11.00% |
[1] | UnitedHealthcare also includes other carriers owned by UnitedHealthcare. | ||
[2] | Aetna also includes other carriers owned by Aetna. |
Operating Segments, Geographi37
Operating Segments, Geographic Information and Significant Customers (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Accounts receivable | $ 27,902 | $ 9,213 |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration risk, percentage | 79.00% | 54.00% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration risk, percentage | 51.00% | 20.00% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Concentration Risk Customer Two [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration risk, percentage | 15.00% | 23.00% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Three [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration risk, percentage | 13.00% | 11.00% |