Exhibit 99.2
EHEALTH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
AS PREVIOUSLY REPORTED AND AS ADJUSTED
FOR THE IMPACT OF ASC 606 ADOPTION
(In thousands, unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | |
| | December 31, 2015 | | December 31, 2016 | | December 31, 2017 |
| | As
Reported | | As
Adjusted | | As
Reported | | As
Adjusted | | As
Reported | | As
Adjusted |
| Assets | | | | | | | | | | | |
| Current assets: | | | | | | | | | | | |
| Cash and cash equivalents | $ | 62,710 |
| | $ | 62,710 |
| | $ | 61,781 |
| | $ | 61,781 |
| | $ | 40,293 |
| | $ | 40,293 |
|
| Accounts receivable | 9,647 |
| | 3,511 |
| | 9,213 |
| | 1,948 |
| | 9,894 |
| | 1,475 |
|
| Commissions receivable - current | — |
| | 109,241 |
| | — |
| | 104,726 |
| | — |
| | 109,666 |
|
| Prepaid expenses and other current assets | 5,185 |
| | 3,667 |
| | 5,148 |
| | 3,857 |
| | 4,845 |
| | 4,305 |
|
| Total current assets | 77,542 |
| | 179,129 |
| | 76,142 |
| | 172,312 |
| | 55,032 |
| | 155,739 |
|
| Commissions receivable - non current | — |
| | 140,505 |
| | — |
| | 153,051 |
| | — |
| | 169,751 |
|
| Property and equipment, net | 7,364 |
| | 7,364 |
| | 5,608 |
| | 5,608 |
| | 4,705 |
| | 4,705 |
|
| Other assets | 4,697 |
| | 2,831 |
| | 4,473 |
| | 3,807 |
| | 7,317 |
| | 7,287 |
|
| Intangible assets, net | 9,620 |
| | 9,620 |
| | 8,580 |
| | 8,580 |
| | 7,540 |
| | 7,540 |
|
| Goodwill | 14,096 |
| | 14,096 |
| | 14,096 |
| | 14,096 |
| | 14,096 |
| | 14,096 |
|
| Total assets | $ | 113,319 |
| | $ | 353,545 |
| | $ | 108,899 |
| | $ | 357,454 |
| | $ | 88,690 |
| | $ | 359,118 |
|
| Liabilities and stockholders’ equity | | | | | | | | | | | |
| Current liabilities: | | | | | | | | | | | |
| Accounts payable | $ | 3,012 |
| | $ | 3,012 |
| | $ | 5,112 |
| | $ | 5,112 |
| | $ | 3,246 |
| | $ | 3,246 |
|
| Accrued compensation and benefits | 14,386 |
| | 14,386 |
| | 10,920 |
| | 10,920 |
| | 15,498 |
| | 15,498 |
|
| Accrued marketing expenses | 10,698 |
| | 11,963 |
| | 7,158 |
| | 8,058 |
| | 4,088 |
| | 4,693 |
|
| Other current liabilities | 3,840 |
| | 1,261 |
| | 4,734 |
| | 1,428 |
| | 3,815 |
| | 2,008 |
|
| Total current liabilities | 31,936 |
| | 30,622 |
| | 27,924 |
| | 25,518 |
| | 26,647 |
| | 25,445 |
|
| Deferred income taxes - non-current | — |
| | 80,491 |
| | — |
| | 75,403 |
| | — |
| | 45,089 |
|
| Other non-current liabilities | 4,962 |
| | 6,257 |
| | 3,374 |
| | 4,253 |
| | 900 |
| | 1,920 |
|
| Stockholders’ equity: | | | | | | | | | | | |
| Common stock | 29 |
| | 29 |
| | 29 |
| | 29 |
| | 30 |
| | 30 |
|
| Additional paid-in capital | 266,699 |
| | 266,699 |
| �� | 272,778 |
| | 272,778 |
| | 281,706 |
| | 281,706 |
|
| Treasury stock, at cost | (199,998 | ) | | (199,998 | ) | | (199,998 | ) | | (199,998 | ) | | (199,998 | ) | | (199,998 | ) |
| Retained earnings (accumulated deficit) | 9,498 |
| | 169,252 |
| | 4,616 |
| | 179,295 |
| | (20,796 | ) | | 204,725 |
|
| Accumulated other comprehensive income | 193 |
| | 193 |
| | 176 |
| | 176 |
| | 201 |
| | 201 |
|
| Total stockholders’ equity | 76,421 |
| | 236,175 |
| | 77,601 |
| | 252,280 |
| | 61,143 |
| | 286,664 |
|
| Total liabilities and stockholders’ equity | $ | 113,319 |
| | $ | 353,545 |
| | $ | 108,899 |
| | $ | 357,454 |
| | $ | 88,690 |
| | $ | 359,118 |
|
EHEALTH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AS PREVIOUSLY REPORTED
(In thousands, except per share amounts, unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the Three Months Ended | | For the Year Ended December 31, |
| | Mar. 31, 2016 | | Jun. 30, 2016 | | Sep. 30, 2016 | | Dec. 31, 2016 | | Mar. 31, 2017 | | Jun. 30, 2017 | | Sep. 30, 2017 | | Dec. 31, 2017 | | 2015 | | 2016 | | 2017 |
| As reported: | | | | | | | | | | | | | | | | | | | | | |
| Revenue | | | | | | | | | | | | | | | | | | | | | |
| Commission | $ | 69,387 |
| | $ | 34,649 |
| | $ | 29,941 |
| | $ | 36,873 |
| | $ | 76,182 |
| | $ | 25,802 |
| | $ | 24,663 |
| | $ | 31,777 |
| | $ | 171,257 |
| | $ | 170,850 |
| | $ | 158,424 |
|
| Other | 4,457 |
| | 2,628 |
| | 2,138 |
| | 6,887 |
| | 2,757 |
| | 2,155 |
| | 1,956 |
| | 7,063 |
| | 18,284 |
| | 16,110 |
| | 13,931 |
|
| Total revenue | 73,844 |
| | 37,277 |
| | 32,079 |
| | 43,760 |
| | 78,939 |
| | 27,957 |
| | 26,619 |
| | 38,840 |
| | 189,541 |
| | 186,960 |
| | 172,355 |
|
| | | | | | | | | | | | | | | | | | | | | | |
| Operating costs and expenses: | | | | | | | | | | | | | | | | | | | | | |
| Cost of revenue | 2,184 |
| | 533 |
| | 30 |
| | 429 |
| | 1,629 |
| | 204 |
| | 176 |
| | 264 |
| | 4,178 |
| | 3,176 |
| | 2,273 |
|
| Marketing and advertising | 20,882 |
| | 12,936 |
| | 10,206 |
| | 28,189 |
| | 15,055 |
| | 14,240 |
| | 13,383 |
| | 23,196 |
| | 75,571 |
| | 72,213 |
| | 65,874 |
|
| Customer care and enrollment | 10,400 |
| | 10,611 |
| | 11,456 |
| | 16,251 |
| | 12,109 |
| | 12,012 |
| | 15,798 |
| | 19,264 |
| | 43,159 |
| | 48,718 |
| | 59,183 |
|
| Technology and content | 8,507 |
| | 8,289 |
| | 8,257 |
| | 7,696 |
| | 8,072 |
| | 7,932 |
| | 8,354 |
| | 8,531 |
| | 36,351 |
| | 32,749 |
| | 32,889 |
|
| General and administrative | 7,928 |
| | 10,615 |
| | 8,925 |
| | 7,748 |
| | 9,992 |
| | 10,534 |
| | 9,353 |
| | 10,090 |
| | 30,239 |
| | 35,216 |
| | 39,969 |
|
| Restructuring charges (benefit) | — |
| | (158 | ) | | (139 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | 4,541 |
| | (297 | ) | | — |
|
| Acquisition costs | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 621 |
| | — |
| | — |
| | 621 |
|
| Amortization of intangible assets | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 1,153 |
| | 1,040 |
| | 1,040 |
|
| Total operating costs and expenses | 50,161 |
| | 43,086 |
| | 38,995 |
| | 60,573 |
| | 47,117 |
| | 45,182 |
| | 47,324 |
| | 62,226 |
| | 195,192 |
| | 192,815 |
| | 201,849 |
|
| Income (loss) from operations | 23,683 |
| | (5,809 | ) | | (6,916 | ) | | (16,813 | ) | | 31,822 |
| | (17,225 | ) | | (20,705 | ) | | (23,386 | ) | | (5,651 | ) | | (5,855 | ) | | (29,494 | ) |
| Other income (expense), net | (11 | ) | | (21 | ) | | 7 |
| | 127 |
| | 26 |
| | 90 |
| | 98 |
| | 113 |
| | 45 |
| | 102 |
| | 327 |
|
| Income (loss) before provision (benefit) for income taxes | 23,672 |
| | (5,830 | ) | | (6,909 | ) | | (16,686 | ) | | 31,848 |
| | (17,135 | ) | | (20,607 | ) | | (23,273 | ) | | (5,606 | ) | | (5,753 | ) | | (29,167 | ) |
| Provision (benefit) for income taxes | 5,638 |
| | (5,354 | ) | | (1,173 | ) | | 18 |
| | (1,573 | ) | | 125 |
| | 9 |
| | (2,315 | ) | | (843 | ) | | (871 | ) | | (3,755 | ) |
| Net income (loss) | $ | 18,034 |
| | $ | (476 | ) | | $ | (5,736 | ) | | $ | (16,704 | ) | | $ | 33,421 |
| | $ | (17,260 | ) | | $ | (20,616 | ) | | $ | (20,958 | ) | | $ | (4,763 | ) | | $ | (4,882 | ) | | $ | (25,412 | ) |
| Net income (loss) per share: | | | | | | | | | | | | | | | | | | | | | |
| Basic | $ | 0.99 |
| | $ | (0.03 | ) | | $ | (0.31 | ) | | $ | (0.91 | ) | | $ | 1.82 |
| | $ | (0.93 | ) | | $ | (1.11 | ) | | $ | (1.12 | ) | | $ | (0.26 | ) | | $ | (0.27 | ) | | $ | (1.37 | ) |
| Diluted | $ | 0.99 |
| | $ | (0.03 | ) | | $ | (0.31 | ) | | $ | (0.91 | ) | | $ | 1.80 |
| | $ | (0.93 | ) | | $ | (1.11 | ) | | $ | (1.12 | ) | | $ | (0.26 | ) | | $ | (0.27 | ) | | $ | (1.37 | ) |
| Weighted-average number of shares used in per share amounts: | | | | | | | | | | | | | | | | | | | | | |
| Basic | 18,153 |
| | 18,258 |
| | 18,329 |
| | 18,345 |
| | 18,370 |
| | 18,481 |
| | 18,565 |
| | 18,632 |
| | 18,008 |
| | 18,272 |
| | 18,512 |
|
| Diluted | 18,217 |
| | 18,258 |
| | 18,329 |
| | 18,345 |
| | 18,561 |
| | 18,481 |
| | 18,565 |
| | 18,632 |
| | 18,008 |
| | 18,272 |
| | 18,512 |
|
EHEALTH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AS ADJUSTED FOR THE IMPACT OF ASC 606 ADOPTION
(In thousands, except per share amounts, unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the Three Months Ended | | For the Year Ended December 31, |
| | Mar. 31, 2016 | | Jun. 30, 2016 | | Sep. 30, 2016 | | Dec. 31, 2016 | | Mar. 31, 2017 | | Jun. 30, 2017 | | Sep. 30, 2017 | | Dec. 31, 2017 | | 2015 | | 2016 | | 2017 |
| As adjusted: | | | | | | | | | | | | | | | | | | | | | |
| Revenue | | | | | | | | | | | | | | | | | | | | | |
| Commission | $ | 47,133 |
| | $ | 33,412 |
| | $ | 26,154 |
| | $ | 70,535 |
| | $ | 38,837 |
| | $ | 32,451 |
| | $ | 29,539 |
| | $ | 76,056 |
| | $ | 184,933 |
| | $ | 177,234 |
| | $ | 176,883 |
|
| Other | 4,278 |
| | 2,444 |
| | 2,488 |
| | 6,880 |
| | 2,719 |
| | 2,115 |
| | 1,927 |
| | 7,062 |
| | 18,414 |
| | 16,090 |
| | 13,823 |
|
| Total revenue | 51,411 |
| | 35,856 |
| | 28,642 |
| | 77,415 |
| | 41,556 |
| | 34,566 |
| | 31,466 |
| | 83,118 |
| | 203,347 |
| | 193,324 |
| | 190,706 |
|
| | | | | | | | | | | | | | | | | | | | | | |
| Operating costs and expenses: | | | | | | | | | | | | | | | | | | | | | |
| Cost of revenue | 285 |
| | 292 |
| | (245 | ) | | 530 |
| | 181 |
| | 56 |
| | (9 | ) | | 354 |
| | 1,947 |
| | 862 |
| | 582 |
|
| Marketing and advertising | 20,882 |
| | 12,936 |
| | 10,206 |
| | 28,189 |
| | 15,055 |
| | 14,240 |
| | 13,383 |
| | 23,196 |
| | 75,571 |
| | 72,213 |
| | 65,874 |
|
| Customer care and enrollment | 10,400 |
| | 10,611 |
| | 11,456 |
| | 16,251 |
| | 12,109 |
| | 12,012 |
| | 15,798 |
| | 19,264 |
| | 42,540 |
| | 47,930 |
| | 59,183 |
|
| Technology and content | 8,507 |
| | 8,289 |
| | 8,257 |
| | 7,696 |
| | 8,072 |
| | 7,932 |
| | 8,354 |
| | 8,531 |
| | 36,351 |
| | 32,749 |
| | 32,889 |
|
| General and administrative | 7,928 |
| | 10,615 |
| | 8,925 |
| | 7,748 |
| | 9,992 |
| | 10,534 |
| | 9,353 |
| | 10,090 |
| | 30,858 |
| | 36,004 |
| | 39,969 |
|
| Restructuring charges (benefit) | — |
| | (158 | ) | | (139 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | 4,541 |
| | (297 | ) | | — |
|
| Acquisition costs | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 621 |
| | — |
| | — |
| | 621 |
|
| Amortization of intangible assets | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 1,153 |
| | 1,040 |
| | 1,040 |
|
| Total operating costs and expenses | 48,262 |
| | 42,845 |
| | 38,720 |
| | 60,674 |
| | 45,669 |
| | 45,034 |
| | 47,139 |
| | 62,316 |
| | 192,961 |
| | 190,501 |
| | 200,158 |
|
| Income (loss) from operations | 3,149 |
| | (6,989 | ) | | (10,078 | ) | | 16,741 |
| | (4,113 | ) | | (10,468 | ) | | (15,673 | ) | | 20,802 |
| | 10,386 |
| | 2,823 |
| | (9,452 | ) |
| Other income (expense), net | 291 |
| | 148 |
| | 333 |
| | 377 |
| | 277 |
| | 298 |
| | 300 |
| | 307 |
| | 1,285 |
| | 1,149 |
| | 1,182 |
|
| Income (loss) before provision (benefit) for income taxes | 3,440 |
| | (6,841 | ) | | (9,745 | ) | | 17,118 |
| | (3,836 | ) | | (10,170 | ) | | (15,373 | ) | | 21,109 |
| | 11,671 |
| | 3,972 |
| | (8,270 | ) |
| Provision (benefit) for income taxes | 4,235 |
| | (8,336 | ) | | (13,193 | ) | | 20,962 |
| | (4,916 | ) | | (8,664 | ) | | (13,197 | ) | | (6,919 | ) | | 7,707 |
| | 3,668 |
| | (33,696 | ) |
| Net income (loss) | $ | (795 | ) | | $ | 1,495 |
| | $ | 3,448 |
| | $ | (3,844 | ) | | $ | 1,080 |
| | $ | (1,506 | ) | | $ | (2,176 | ) | | $ | 28,028 |
| | $ | 3,964 |
| | $ | 304 |
| | $ | 25,426 |
|
| Net income (loss) per share: | | | | | | | | | | | | | | | | | | | | | |
| Basic | $ | (0.04 | ) | | $ | 0.08 |
| | $ | 0.19 |
| | $ | (0.21 | ) | | $ | 0.06 |
| | $ | (0.08 | ) | | $ | (0.12 | ) | | $ | 1.50 |
| | $ | 0.22 |
| | $ | 0.02 |
| | $ | 1.37 |
|
| Diluted | $ | (0.04 | ) | | $ | 0.08 |
| | $ | 0.19 |
| | $ | (0.21 | ) | | $ | 0.06 |
| | $ | (0.08 | ) | | $ | (0.12 | ) | | $ | 1.47 |
| | $ | 0.22 |
| | $ | 0.02 |
| | $ | 1.34 |
|
| Weighted-average number of shares used in per share amounts: | | | | | | | | | | | | | | | | | | | | | |
| Basic | 18,153 |
| | 18,258 |
| | 18,329 |
| | 18,345 |
| | 18,370 |
| | 18,481 |
| | 18,565 |
| | 18,632 |
| | 18,008 |
| | 18,272 |
| | 18,512 |
|
| Diluted | 18,153 |
| | 18,375 |
| | 18,393 |
| | 18,345 |
| | 18,561 |
| | 18,481 |
| | 18,565 |
| | 19,025 |
| | 18,119 |
| | 18,347 |
| | 18,958 |
|
EHEALTH, INC.
SEGMENT INFORMATION
AS PREVIOUSLY REPORTED
(In thousands, unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the Three Months Ended | | For the Year Ended December 31, |
| | Mar. 31, 2016 | | Jun. 30, 2016 | | Sep. 30, 2016 | | Dec. 31, 2016 | | Mar. 31, 2017 | | Jun. 30, 2017 | | Sep. 30, 2017 | | Dec. 31, 2017 | | 2015 | | 2016 | | 2017 |
| As reported: | | | | | | | | | | | | | | | | | | | | | |
| Revenue | | | | | | | | | | | | | | | | | | | | | |
Medicare (1) | $ | 43,467 |
| | $ | 9,679 |
| | $ | 7,395 |
| | $ | 19,728 |
| | $ | 57,974 |
| | $ | 11,014 |
| | $ | 10,682 |
| | $ | 22,914 |
| | $ | 63,163 |
| | $ | 80,269 |
| | $ | 102,584 |
|
Individual, Family and Small Business (2) | 30,377 |
| | 27,598 |
| | 24,684 |
| | 24,032 |
| | 20,965 |
| | 16,943 |
| | 15,937 |
| | 15,926 |
| | 126,378 |
| | 106,691 |
| | 69,771 |
|
| Total revenue | $ | 73,844 |
| | $ | 37,277 |
| | $ | 32,079 |
| | $ | 43,760 |
| | $ | 78,939 |
| | $ | 27,957 |
| | $ | 26,619 |
| | $ | 38,840 |
| | $ | 189,541 |
| | $ | 186,960 |
| | $ | 172,355 |
|
| | | | | | | | | | | | | | | | | | | | | | |
| Segment profit (loss) | | | | | | | | | | | | | | | | | | | | | |
Medicare segment profit (loss) (3) | $ | 17,891 |
| | $ | (14,131 | ) | | $ | (14,896 | ) | | $ | (22,005 | ) | | $ | 30,695 |
| | $ | (15,107 | ) | | $ | (18,058 | ) | | $ | (16,290 | ) | | $ | (23,284 | ) | | $ | (33,141 | ) | | $ | (18,760 | ) |
Individual, Family and Small Business segment profit (3) | 15,555 |
| | 20,526 |
| | 17,609 |
| | 14,215 |
| | 11,079 |
| | 8,404 |
| | 6,824 |
| | 4,120 |
| | 59,499 |
| | 67,905 |
| | 30,427 |
|
| Total segment profit (loss) | 33,446 |
| | 6,395 |
| | 2,713 |
| | (7,790 | ) | | 41,774 |
| | (6,703 | ) | | (11,234 | ) | | (12,170 | ) | | 36,215 |
| | 34,764 |
| | 11,667 |
|
Corporate (4) | (6,666 | ) | | (8,996 | ) | | (7,346 | ) | | (6,063 | ) | | (6,797 | ) | | (6,942 | ) | | (6,266 | ) | | (6,964 | ) | | (25,135 | ) | | (29,071 | ) | | (26,969 | ) |
| Stock-based compensation expense | (1,832 | ) | | (2,177 | ) | | (1,347 | ) | | (1,910 | ) | | (2,133 | ) | | (2,569 | ) | | (2,246 | ) | | (2,746 | ) | | (6,889 | ) | | (7,266 | ) | | (9,694 | ) |
| Depreciation and amortization | (1,005 | ) | | (929 | ) | | (815 | ) | | (790 | ) | | (762 | ) | | (751 | ) | | (699 | ) | | (625 | ) | | (4,148 | ) | | (3,539 | ) | | (2,837 | ) |
| Restructuring charges (benefit) | — |
| | 158 |
| | 139 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | (4,541 | ) | | 297 |
| | — |
|
| Acquisition costs | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | (621 | ) | | — |
| | — |
| | (621 | ) |
| Amortization of intangible assets | (260 | ) | | (260 | ) | | (260 | ) | | (260 | ) | | (260 | ) | | (260 | ) | | (260 | ) | | (260 | ) | | (1,153 | ) | | (1,040 | ) | | (1,040 | ) |
| Other income (expense), net | (11 | ) | | (21 | ) | | 7 |
| | 127 |
| | 26 |
| | 90 |
| | 98 |
| | 113 |
| | 45 |
| | 102 |
| | 327 |
|
| Income (loss) before provision (benefit) for income taxes | $ | 23,672 |
| | $ | (5,830 | ) | | $ | (6,909 | ) | | $ | (16,686 | ) | | $ | 31,848 |
| | $ | (17,135 | ) | | $ | (20,607 | ) | | $ | (23,273 | ) | | $ | (5,606 | ) | | $ | (5,753 | ) | | $ | (29,167 | ) |
EHEALTH, INC.
SEGMENT INFORMATION
AS ADJUSTED FOR THE IMPACT OF ASC 606 ADOPTION
(In thousands, unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the Three Months Ended | | For the Year Ended December 31, |
| | Mar. 31, 2016 | | Jun. 30, 2016 | | Sep. 30, 2016 | | Dec. 31, 2016 | | Mar. 31, 2017 | | Jun. 30, 2017 | | Sep. 30, 2017 | | Dec. 31, 2017 | | 2015 | | 2016 | | 2017 |
| As adjusted: | | | | | | | | | | | | | | | | | | | | | |
| Revenue | | | | | | | | | | | | | | | | | | | | | |
Medicare (1) | $ | 22,433 |
| | $ | 21,389 |
| | $ | 16,909 |
| | $ | 61,425 |
| | $ | 25,410 |
| | $ | 24,161 |
| | $ | 22,999 |
| | $ | 69,877 |
| | $ | 98,038 |
| | $ | 122,156 |
| | $ | 142,448 |
|
Individual, Family and Small Business (2) | 28,978 |
| | 14,467 |
| | 11,733 |
| | 15,991 |
| | 16,146 |
| | 10,404 |
| | 8,467 |
| | 13,241 |
| | 105,309 |
| | 71,169 |
| | 48,258 |
|
| Total revenue | $ | 51,411 |
| | $ | 35,856 |
| | $ | 28,642 |
| | $ | 77,416 |
| | $ | 41,556 |
| | $ | 34,565 |
| | $ | 31,466 |
| | $ | 83,118 |
| | $ | 203,347 |
| | $ | 193,325 |
| | $ | 190,706 |
|
| | | | | | | | | | | | | | | | | | | | | | |
| Segment profit (loss) | | | | | | | | | | | | | | | | | | | | | |
Medicare segment profit (loss) (3) | $ | (1,547 | ) | | $ | (2,414 | ) | | $ | (5,377 | ) | | $ | 19,732 |
| | $ | (929 | ) | | $ | (2,013 | ) | | $ | (5,796 | ) | | $ | 30,875 |
| | $ | 13,598 |
| | $ | 10,394 |
| | $ | 22,137 |
|
Individual, Family and Small Business segment profit (3) | 14,461 |
| | 7,629 |
| | 4,929 |
| | 6,032 |
| | 6,770 |
| | 2,065 |
| | (404 | ) | | 1,141 |
| | 38,654 |
| | 33,050 |
| | 9,573 |
|
| Total segment profit (loss) | 12,914 |
| | 5,215 |
| | (448 | ) | | 25,764 |
| | 5,841 |
| | 52 |
| | (6,200 | ) | | 32,016 |
| | 52,252 |
| | 43,444 |
| | 31,710 |
|
Corporate (4) | (6,668 | ) | | (8,996 | ) | | (7,347 | ) | | (6,063 | ) | | (6,799 | ) | | (6,940 | ) | | (6,268 | ) | | (6,963 | ) | | (25,135 | ) | | (29,073 | ) | | (26,970 | ) |
| Stock-based compensation expense | (1,832 | ) | | (2,177 | ) | | (1,347 | ) | | (1,910 | ) | | (2,133 | ) | | (2,569 | ) | | (2,246 | ) | | (2,747 | ) | | (6,889 | ) | | (7,266 | ) | | (9,694 | ) |
| Depreciation and amortization | (1,005 | ) | | (929 | ) | | (815 | ) | | (790 | ) | | (762 | ) | | (751 | ) | | (699 | ) | | (623 | ) | | (4,148 | ) | | (3,539 | ) | | (2,837 | ) |
| Restructuring charges (benefit) | — |
| | 158 |
| | 139 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | (4,541 | ) | | 297 |
| | — |
|
| Acquisition costs | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | (621 | ) | | — |
| | — |
| | (621 | ) |
| Amortization of intangible assets | (260 | ) | | (260 | ) | | (260 | ) | | (260 | ) | | (260 | ) | | (260 | ) | | (260 | ) | | (260 | ) | | (1,153 | ) | | (1,040 | ) | | (1,040 | ) |
| Other income (expense), net | 291 |
| | 148 |
| | 333 |
| | 377 |
| | 277 |
| | 298 |
| | 300 |
| | 307 |
| | 1,285 |
| | 1,149 |
| | 1,182 |
|
| Income (loss) before provision (benefit) for income taxes | $ | 3,440 |
| | $ | (6,841 | ) | | $ | (9,745 | ) | | $ | 17,118 |
| | $ | (3,836 | ) | | $ | (10,170 | ) | | $ | (15,373 | ) | | $ | 21,109 |
| | $ | 11,671 |
| | $ | 3,972 |
| | $ | (8,270 | ) |
EHEALTH, INC.
SEGMENT INFORMATION
AS ADJUSTED FOR THE IMPACT OF ASC 606 ADOPTION (Continued)
(In thousands, unaudited)
Segment Information
We evaluate our business performance and manage our operations as two distinct reporting segments:
| |
| • | Individual, Family and Small Business. |
|
| |
| (1) | The Medicare segment consists primarily of amounts 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, vision, life, short term disability and long term disability insurance, 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. |
| (2) | The Individual, Family and Small Business segment consists primarily of amounts 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. |
| (3) | Segment profit (loss) is calculated as revenue for the applicable segment less Marketing and Advertising, Customer Care and Enrollment, Technology and Content and General and Administrative operating expenses, excluding stock-based compensation, depreciation and amortization expense, restructuring benefit and amortization of intangible assets, that are directly attributable to the applicable segment and other indirect Marketing and Advertising, Customer Care and Enrollment and Technology and Content operating expenses, excluding stock-based compensation, depreciation and amortization expense and amortization of intangible assets, allocated to the applicable segment based on usage. |
| (4) | Corporate consists of other indirect General and Administrative operating expenses, excluding stock-based compensation, depreciation and amortization expense, which are managed in a corporate shared services environment and, because they are not the responsibility of segment operating management, are not allocated to the reportable segments. |
EHEALTH, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
AS PREVIOUSLY REPORTED
(In thousands, except per share amounts, unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the Three Months Ended | | For the Year Ended December 31, |
| | Mar. 31, 2016 | | Jun. 30, 2016 | | Sep. 30, 2016 | | Dec. 31, 2016 | | Mar. 31, 2017 | | Jun. 30, 2017 | | Sep. 30, 2017 | | Dec. 31, 2017 | | 2015 | | 2016 | | 2017 |
| As reported: | | | | | | | | | | | | | | | | | | | | | |
| GAAP income (loss) from operations | $ | 23,683 |
| | $ | (5,809 | ) | | $ | (6,916 | ) | | $ | (16,813 | ) | | $ | 31,822 |
| | $ | (17,225 | ) | | $ | (20,705 | ) | | $ | (23,386 | ) | | $ | (5,651 | ) | | $ | (5,855 | ) | | $ | (29,494 | ) |
Stock-based compensation expense (1) | 1,832 |
| | 2,177 |
| | 1,347 |
| | 1,910 |
| | 2,133 |
| | 2,569 |
| | 2,246 |
| | 2,746 |
| | 6,889 |
| | 7,266 |
| | 9,694 |
|
Acquisition costs (2) | — |
| | | | | | — |
| | — |
| | — |
| | — |
| | 621 |
| | — |
| | — |
| | 621 |
|
Restructuring charges (benefit) (3) | — |
| | (158 | ) | | (139 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | 4,541 |
| | (297 | ) | | — |
|
Amortization of intangible assets (4) | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 1,153 |
| | 1,040 |
| | 1,040 |
|
| Non-GAAP income (loss) from operations | $ | 25,775 |
| | $ | (3,530 | ) | | $ | (5,448 | ) | | $ | (14,643 | ) | | $ | 34,215 |
| | $ | (14,396 | ) | | $ | (18,199 | ) | | $ | (19,759 | ) | | $ | 6,932 |
| | $ | 2,154 |
| | $ | (18,139 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| GAAP net income (loss) | $ | 18,034 |
| | $ | (476 | ) | | $ | (5,736 | ) | | $ | (16,704 | ) | | $ | 33,421 |
| | $ | (17,260 | ) | | $ | (20,616 | ) | | $ | (20,958 | ) | | $ | (4,763 | ) | | $ | (4,882 | ) | | $ | (25,412 | ) |
Stock-based compensation expense (1) | 1,832 |
| | 2,177 |
| | 1,347 |
| | 1,910 |
| | 2,133 |
| | 2,569 |
| | 2,246 |
| | 2,746 |
| | 6,889 |
| | 7,266 |
| | 9,694 |
|
Acquisition costs (2) | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 621 |
| | — |
| | — |
| | 621 |
|
Restructuring charges (benefit) (3) | — |
| | (158 | ) | | (139 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | 4,541 |
| | (297 | ) | | — |
|
Amortization of intangible assets (4) | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 1,153 |
| | 1,040 |
| | 1,040 |
|
| Non-GAAP net income (loss) | $ | 20,126 |
| | $ | 1,803 |
| | $ | (4,268 | ) | | $ | (14,534 | ) | | $ | 35,814 |
| | $ | (14,431 | ) | | $ | (18,110 | ) | | $ | (17,331 | ) | | $ | 7,820 |
| | $ | 3,127 |
| | $ | (14,057 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| GAAP net income (loss) per diluted share | $ | 0.99 |
| | $ | (0.03 | ) | | $ | (0.31 | ) | | $ | (0.91 | ) | | $ | 1.80 |
| | $ | (0.93 | ) | | $ | (1.11 | ) | | $ | (1.12 | ) | | $ | (0.26 | ) | | $ | (0.27 | ) | | $ | (1.37 | ) |
Stock-based compensation expense (1) | 0.10 |
| | 0.12 |
| | 0.07 |
| | 0.10 |
| | 0.12 |
| | 0.14 |
| | 0.12 |
| | 0.14 |
| | 0.38 |
| | 0.40 |
| | 0.51 |
|
Acquisition costs (2) | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 0.04 |
| | — |
| | — |
| | 0.04 |
|
Restructuring charges (benefit) (3) | — |
| | (0.01 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 0.25 |
| | (0.02 | ) | | — |
|
Amortization of intangible assets (4) | 0.01 |
| | 0.01 |
| | 0.01 |
| | 0.01 |
| | 0.01 |
| | 0.01 |
| | 0.01 |
| | 0.01 |
| | 0.06 |
| | 0.06 |
| | 0.06 |
|
| Non-GAAP net income (loss) per diluted share | $ | 1.10 |
| | $ | 0.09 |
| | $ | (0.23 | ) | | $ | (0.79 | ) | | $ | 1.93 |
| | $ | (0.78 | ) | | $ | (0.98 | ) | | $ | (0.93 | ) | | $ | 0.43 |
| | $ | 0.17 |
| | $ | (0.76 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| GAAP net income (loss) | $ | 18,034 |
| | $ | (476 | ) | | $ | (5,736 | ) | | $ | (16,704 | ) | | $ | 33,421 |
| | $ | (17,260 | ) | | $ | (20,616 | ) | | $ | (20,958 | ) | | $ | (4,763 | ) | | $ | (4,882 | ) | | $ | (25,412 | ) |
Stock-based compensation expense (1) | 1,832 |
| | 2,177 |
| | 1,347 |
| | 1,910 |
| | 2,133 |
| | 2,569 |
| | 2,246 |
| | 2,746 |
| | 6,889 |
| | 7,266 |
| | 9,694 |
|
Depreciation and amortization (6) | 1,005 |
| | 929 |
| | 815 |
| | 790 |
| | 762 |
| | 751 |
| | 699 |
| | 625 |
| | 4,148 |
| | 3,539 |
| | 2,837 |
|
Acquisition costs (2) | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 621 |
| | — |
| | — |
| | 621 |
|
Restructuring charges (benefit) (3) | — |
| | (158 | ) | | (139 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | 4,541 |
| | (297 | ) | | — |
|
Amortization of intangible assets (4) | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 1,153 |
| | 1,040 |
| | 1,040 |
|
Other (income) expense, net (7) | 11 |
| | 21 |
| | (7 | ) | | (127 | ) | | (26 | ) | | (90 | ) | | (98 | ) | | (113 | ) | | (45 | ) | | (102 | ) | | (327 | ) |
Provision (benefit) for income taxes (5) | 5,638 |
| | (5,354 | ) | | (1,173 | ) | | 18 |
| | (1,573 | ) | | 125 |
| | 9 |
| | (2,315 | ) | | (843 | ) | | (871 | ) | | (3,755 | ) |
| Adjusted EBITDA | $ | 26,780 |
| | $ | (2,601 | ) | | $ | (4,633 | ) | | $ | (13,853 | ) | | $ | 34,977 |
| | $ | (13,645 | ) | | $ | (17,500 | ) | | $ | (19,134 | ) | | $ | 11,080 |
| | $ | 5,693 |
| | $ | (15,302 | ) |
EHEALTH, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
AS ADJUSTED FOR THE IMPACT OF ASC 606 ADOPTION
(In thousands, except per share amounts, unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the Three Months Ended | | For the Year Ended December 31, |
| | Mar. 31, 2016 | | Jun. 30, 2016 | | Sep. 30, 2016 | | Dec. 31, 2016 | | Mar. 31, 2017 | | Jun. 30, 2017 | | Sep. 30, 2017 | | Dec. 31, 2017 | | 2015 | | 2016 | | 2017 |
| As adjusted: | | | | | | | | | | | | | | | | | | | | | |
| GAAP income (loss) from operations | $ | 3,149 |
| | $ | (6,989 | ) | | $ | (10,078 | ) | | $ | 16,741 |
| | $ | (4,113 | ) | | $ | (10,468 | ) | | $ | (15,673 | ) | | $ | 20,802 |
| | $ | 10,386 |
| | $ | 2,823 |
| | $ | (9,452 | ) |
Stock-based compensation expense (1) | 1,832 |
| | 2,177 |
| | 1,347 |
| | 1,910 |
| | 2,133 |
| | 2,569 |
| | 2,246 |
| | 2,746 |
| | 6,889 |
| | 7,266 |
| | 9,694 |
|
Acquisition costs (2) | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 621 |
| | — |
| | — |
| | 621 |
|
Restructuring charges (benefit) (3) | — |
| | (158 | ) | | (139 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | 4,541 |
| | (297 | ) | | — |
|
Amortization of intangible assets (4) | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 1,153 |
| | 1,040 |
| | 1,040 |
|
| Non-GAAP income (loss) from operations | $ | 5,241 |
| | $ | (4,710 | ) | | $ | (8,610 | ) | | $ | 18,911 |
| | $ | (1,720 | ) | | $ | (7,639 | ) | | $ | (13,167 | ) | | $ | 24,429 |
| | $ | 22,969 |
| | $ | 10,832 |
| | $ | 1,903 |
|
| | | | | | | | | | | | | | | | | | | | | | |
| GAAP net income (loss) | $ | (795 | ) | | $ | 1,495 |
| | $ | 3,448 |
| | $ | (3,844 | ) | | $ | 1,080 |
| | $ | (1,506 | ) | | $ | (2,176 | ) | | $ | 28,028 |
| | $ | 3,964 |
| | $ | 304 |
| | $ | 25,426 |
|
Stock-based compensation expense (1) | 1,832 |
| | 2,177 |
| | 1,347 |
| | 1,910 |
| | 2,133 |
| | 2,569 |
| | 2,246 |
| | 2,746 |
| | 6,889 |
| | 7,266 |
| | 9,694 |
|
Acquisition costs (2) | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 621 |
| | — |
| | — |
| | 621 |
|
Restructuring charges (benefit) (3) | — |
| | (158 | ) | | (139 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | 4,541 |
| | (297 | ) | | — |
|
Amortization of intangible assets (4) | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 1,153 |
| | 1,040 |
| | 1,040 |
|
Benefit for income taxes (5) | $ | (853 | ) | | $ | (929 | ) | | $ | (598 | ) | | $ | (884 | ) | | $ | (975 | ) | | $ | (1,153 | ) | | $ | (1,021 | ) | | $ | (1,478 | ) | | $ | (5,129 | ) | | $ | (3,264 | ) | | $ | (4,628 | ) |
| Non-GAAP net income (loss) | $ | 444 |
| | $ | 2,845 |
| | $ | 4,318 |
| | $ | (2,558 | ) | | $ | 2,498 |
| | $ | 170 |
| | $ | (691 | ) | | $ | 30,177 |
| | $ | 11,418 |
| | $ | 5,049 |
| | $ | 32,153 |
|
| | | | | | | | | | | | | | | | | | | | | | |
| GAAP net income (loss) per diluted share | $ | (0.04 | ) | | $ | 0.08 |
| | $ | 0.19 |
| | $ | (0.21 | ) | | $ | 0.06 |
| | $ | (0.08 | ) | | $ | (0.12 | ) | | $ | 1.47 |
| | $ | 0.22 |
| | $ | 0.02 |
| | $ | 1.34 |
|
Stock-based compensation expense (1) | 0.10 |
| | 0.12 |
| | 0.07 |
| | 0.10 |
| | 0.11 |
| | 0.14 |
| | 0.12 |
| | 0.14 |
| | 0.38 |
| | 0.40 |
| | 0.51 |
|
Acquisition costs (2) | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 0.03 |
| | — |
| | — |
| | 0.03 |
|
Restructuring charges (benefit) (3) | — |
| | (0.01 | ) | | (0.01 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | 0.25 |
| | (0.02 | ) | | — |
|
Amortization of intangible assets (4) | 0.01 |
| | 0.01 |
| | 0.01 |
| | 0.01 |
| | 0.01 |
| | 0.01 |
| | 0.01 |
| | 0.01 |
| | 0.06 |
| | 0.06 |
| | 0.05 |
|
Benefit for income taxes (5) | $ | (0.05 | ) | | $ | (0.05 | ) | | $ | (0.03 | ) | | $ | (0.05 | ) | | $ | (0.05 | ) | | $ | (0.06 | ) | | $ | (0.05 | ) | | $ | (0.08 | ) | | $ | (0.28 | ) | | $ | (0.18 | ) | | $ | (0.24 | ) |
| Non-GAAP net income (loss) per diluted share | $ | 0.02 |
| | $ | 0.15 |
| | $ | 0.23 |
| | $ | (0.15 | ) | | $ | 0.13 |
| | $ | 0.01 |
| | $ | (0.04 | ) | | $ | 1.57 |
| | $ | 0.63 |
| | $ | 0.28 |
| | $ | 1.69 |
|
| | | | | | | | | | | | | | | | | | | | | | |
| GAAP net income (loss) | $ | (795 | ) | | $ | 1,495 |
| | $ | 3,448 |
| | $ | (3,844 | ) | | $ | 1,080 |
| | $ | (1,506 | ) | | $ | (2,176 | ) | | $ | 28,028 |
| | $ | 3,964 |
| | $ | 304 |
| | $ | 25,426 |
|
Stock-based compensation expense (1) | 1,832 |
| | 2,177 |
| | 1,347 |
| | 1,910 |
| | 2,133 |
| | 2,569 |
| | 2,246 |
| | 2,746 |
| | 6,889 |
| | 7,266 |
| | 9,694 |
|
Depreciation and amortization (6) | 1,005 |
| | 929 |
| | 815 |
| | 790 |
| | 762 |
| | 751 |
| | 699 |
| | 625 |
| | 4,148 |
| | 3,539 |
| | 2,837 |
|
Acquisition costs (2) | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 621 |
| | — |
| | — |
| | 621 |
|
Restructuring charges (benefit) (3) | — |
| | (158 | ) | | (139 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | 4,541 |
| | (297 | ) | | — |
|
Amortization of intangible assets (4) | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 260 |
| | 1,153 |
| | 1,040 |
| | 1,040 |
|
Other (income) expense, net (7) | (291 | ) | | (148 | ) | | (333 | ) | | (377 | ) | | (277 | ) | | (298 | ) | | (300 | ) | | (307 | ) | | (1,285 | ) | | (1,149 | ) | | (1,182 | ) |
Provision (benefit) for income taxes (5) | 4,235 |
| | (8,336 | ) | | (13,193 | ) | | 20,962 |
| | (4,916 | ) | | (8,664 | ) | | (13,197 | ) | | (6,919 | ) | | 7,707 |
| | 3,668 |
| | (33,696 | ) |
| Adjusted EBITDA | $ | 6,246 |
| | $ | (3,781 | ) | | $ | (7,795 | ) | | $ | 19,701 |
| | $ | (958 | ) | | $ | (6,888 | ) | | $ | (12,468 | ) | | $ | 25,054 |
| | $ | 27,117 |
| | $ | 14,371 |
| | $ | 4,740 |
|
EHEALTH, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
AS ADJUSTED FOR THE IMPACT OF ASC 606 ADOPTION (Continued)
(In thousands, except per share amounts, unaudited)
Explanation of Adjustments
|
| |
| (1) | Non-GAAP income (loss) from operations, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share and Adjusted EBITDA exclude the effect of expensing stock-based compensation related to stock options and restricted stock units. |
| (2) | Non-GAAP income (loss) from operations, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share and Adjusted EBITDA exclude costs related to the acquisition of GoMedigap, which was completed in January 2018. |
| (3) | Non-GAAP income (loss) from operations, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share and Adjusted EBITDA exclude restructuring charges (benefit). |
| (4) | Non-GAAP income (loss) from operations, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share and Adjusted EBITDA exclude amortization of intangible assets. |
| (5) | Non-GAAP net income (loss), Non-GAAP net income (loss) per share and Adjusted EBITDA exclude provision (benefit) for income taxes. |
| (6) | Adjusted EBITDA excludes depreciation and amortization. |
| (7) | Adjusted EBITDA excludes other income (expense), net. |
EHEALTH, INC.
COMMISSION REVENUE BY PRODUCT
AS ADJUSTED FOR THE IMPACT OF ASC 606 ADOPTION
FOR YEARS ENDED DECEMBER 31, 2015, 2016 AND 2017
(In thousands, except per share amounts, unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | Year Ending December 31, |
| | Mar. 31, 2016 | | Jun. 30, 2016 | | Sep. 30, 2016 | | Dec. 31, 2016 | | Mar. 31, 2017 | | Jun. 30, 2017 | | Sep. 30, 2017 | | Dec. 31, 2017 | | 2015 | | 2016 | | 2017 |
| Medicare | | | | | | | | | | | | | | | | | | | | | |
| Medicare Advantage | $ | 18,207 |
| | $ | 17,241 |
| | $ | 12,956 |
| | $ | 47,332 |
| | $ | 19,205 |
| | $ | 18,677 |
| | $ | 17,544 |
| | $ | 52,143 |
| | $ | 75,479 |
| | $ | 95,736 |
| | 107,567 |
|
| Medicare Supplement | 2,414 |
| | 2,295 |
| | 2,048 |
| | 4,804 |
| | 3,914 |
| | 2,886 |
| | 3,442 |
| | 5,193 |
| | 9,271 |
| | 11,561 |
| | 15,435 |
|
| Medicare Part D | 1,276 |
| | 1,214 |
| | 1,113 |
| | 5,197 |
| | 1,378 |
| | 1,203 |
| | 977 |
| | 7,527 |
| | 6,771 |
| | 8,800 |
| | 11,085 |
|
| Total Medicare | 21,897 |
| | 20,750 |
| | 16,117 |
| | 57,333 |
| | 24,497 |
| | 22,766 |
| | 21,963 |
| | 64,863 |
| | 91,521 |
| | 116,097 |
| | 134,087 |
|
| | | | | | | | | | | | | | | | | | | | | | |
Individual and Family (1) | | | | | | | | | | | | | | | | | | | | | |
| Non-Qualified Health Plans | 7,626 |
| | 2,705 |
| | 3,732 |
| | 4,789 |
| | 3,773 |
| | 1,988 |
| | 1,665 |
| | 2,598 |
| | 40,630 |
| | 18,852 |
| | 10,024 |
|
| Qualified Health Plans | 9,116 |
| | 3,551 |
| | 695 |
| | 1,003 |
| | 3,132 |
| | 2,634 |
| | 323 |
| | 966 |
| | 18,790 |
| | 14,365 |
| | 7,055 |
|
| Total IFP | 16,742 |
| | 6,256 |
| | 4,427 |
| | 5,792 |
| | 6,905 |
| | 4,622 |
| | 1,988 |
| | 3,564 |
| | 59,420 |
| | 33,217 |
| | 17,079 |
|
| | | | | | | | | | | | | | | | | | | | | | |
| Ancillaries | | | | | | | | | | | | | | | | | | | | | |
| Short-term | 2,185 |
| | 1,859 |
| | 1,761 |
| | 1,471 |
| | 1,846 |
| | 1,029 |
| | 1,405 |
| | 1,223 |
| | 7,788 |
| | 7,276 |
| | 5,504 |
|
| Dental | 2,846 |
| | 1,338 |
| | 1,077 |
| | 1,707 |
| | 1,847 |
| | 1,003 |
| | 960 |
| | 1,254 |
| | 10,702 |
| | 6,968 |
| | 5,064 |
|
| Vision | 653 |
| | 351 |
| | 330 |
| | 679 |
| | 570 |
| | 282 |
| | 285 |
| | 470 |
| | 2,575 |
| | 2,013 |
| | 1,607 |
|
| Other | 457 |
| | 695 |
| | 536 |
| | 501 |
| | 765 |
| | 762 |
| | 1,040 |
| | 1,305 |
| | 2,326 |
| | 2,189 |
| | 3,871 |
|
| Total Ancillaries | 6,141 |
| | 4,243 |
| | 3,704 |
| | 4,358 |
| | 5,028 |
| | 3,076 |
| | 3,690 |
| | 4,252 |
| | 23,391 |
| | 18,446 |
| | 16,046 |
|
| | | | | | | | | | | | | | | | | | | | | | |
| Small Business | 1,613 |
| | 1,394 |
| | 1,300 |
| | 1,826 |
| | 1,924 |
| | 1,532 |
| | 1,506 |
| | 2,539 |
| | 5,788 |
| | 6,133 |
| | 7,501 |
|
| | | | | | | | | | | | | | | | | | | | | | |
| Commission Bonus | 739 |
| | 769 |
| | 606 |
| | 1,226 |
| | 483 |
| | 455 |
| | 392 |
| | 838 |
| | 4,813 |
| | 3,340 |
| | 2,167 |
|
| | | | | | | | | | | | | | | | | | | | | | |
| Total commission revenue | $ | 47,132 |
| | $ | 33,412 |
| | $ | 26,154 |
| | $ | 70,535 |
| | $ | 38,837 |
| | $ | 32,451 |
| | $ | 29,539 |
| | $ | 76,056 |
| | $ | 184,933 |
| | $ | 177,233 |
| | $ | 176,880 |
|
| | | | | | | | | | | | | | | | | | | | | | |
|
| |
| (1) | We define our Individual and Family Plan offerings as major medical individual and family health insurance plans, which does not include Medicare-related, small business or ancillary plans. Individual and family health insurance plans include both Qualified and Non-Qualified plans. Qualified health plans are individual and family health insurance plans that meet the requirements of the Affordable Care Act and are offered through the government-run health insurance exchange in the relevant jurisdiction. Non-Qualified health plans are individual and family health insurance plans that meet the requirements of the Affordable Care Act and are not offered through the exchange in the relevant jurisdiction. Individuals that purchase Non-Qualified health plans cannot receive a subsidy in connection with the purchase of those plans. |
EHEALTH, INC.
SUBMITTED APPLICATIONS
FOR YEARS ENDED DECEMBER 31, 2015, 2016 AND 2017
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | Year Ending December 31, |
| Mar. 31, 2016 | | Jun. 30, 2016 | | Sep. 30, 2016 | | Dec. 31, 2016 | | Mar. 31, 2017 | | Jun. 30, 2017 | | Sep. 30, 2017 | | Dec. 31, 2017 | | 2015 | | 2016 | | 2017 |
Medicare (1) | | | | | | | | | | | | | | | | | | | | | |
| Medicare Advantage | 23,126 |
| | 24,923 |
| | 17,131 |
| | 55,921 |
| | 21,799 |
| | 23,071 |
| | 21,010 |
| | 60,109 |
| | 96,235 |
| | 121,101 |
| | 125,989 |
|
| Medicare Supplement | 3,431 |
| | 3,390 |
| | 3,037 |
| | 8,118 |
| | 4,540 |
| | 4,157 |
| | 4,578 |
| | 8,126 |
| | 11,543 |
| | 17,976 |
| | 21,401 |
|
| Medicare Part D | 4,375 |
| | 4,405 |
| | 3,894 |
| | 21,239 |
| | 4,938 |
| | 3,938 |
| | 3,338 |
| | 30,591 |
| | 24,514 |
| | 33,913 |
| | 42,805 |
|
| Total Medicare | 30,932 |
| | 32,718 |
| | 24,062 |
| | 85,278 |
| | 31,277 |
| | 31,166 |
| | 28,926 |
| | 98,826 |
| | 132,292 |
| | 172,990 |
| | 190,195 |
|
| | | | | | | | | | | | | | | | | | | | | | |
Individual and Family (2) | | | | | | | | | | | | | | | | | | | | | |
| Non-Qualified Health Plans | 33,193 |
| | 8,369 |
| | 7,823 |
| | 29,437 |
| | 14,264 |
| | 4,098 |
| | 4,041 |
| | 17,871 |
| | 160,576 |
| | 78,822 |
| | 40,274 |
|
| Qualified Health Plans | 41,080 |
| | 1,411 |
| | 1,121 |
| | 15,653 |
| | 7,747 |
| | 1,327 |
| | 1,086 |
| | 16,994 |
| | 140,322 |
| | 59,265 |
| | 27,154 |
|
| Total Individual and Family | 74,273 |
| | 9,780 |
| | 8,944 |
| | 45,090 |
| | 22,011 |
| | 5,425 |
| | 5,127 |
| | 34,865 |
| | 300,898 |
| | 138,087 |
| | 67,428 |
|
| | | | | | | | | | | | | | | | | | | | | | |
Ancillaries (3) | | | | | | | | | | | | | | | | | | | | | |
| Short-term | 42,846 |
| | 27,212 |
| | 27,737 |
| | 23,314 |
| | 24,285 |
| | 22,414 |
| | 26,527 |
| | 20,219 |
| | 145,874 |
| | 121,109 |
| | 93,445 |
|
| Dental | 37,263 |
| | 21,638 |
| | 17,303 |
| | 22,134 |
| | 23,378 |
| | 16,734 |
| | 14,523 |
| | 15,817 |
| | 136,600 |
| | 98,338 |
| | 70,452 |
|
| Vision | 13,087 |
| | 6,668 |
| | 6,061 |
| | 9,943 |
| | 9,857 |
| | 6,204 |
| | 5,937 |
| | 7,470 |
| | 49,424 |
| | 35,759 |
| | 29,468 |
|
| Other | 3,093 |
| | 4,016 |
| | 3,863 |
| | 4,471 |
| | 4,699 |
| | 6,796 |
| | 7,762 |
| | 15,531 |
| | 10,095 |
| | 15,443 |
| | 34,788 |
|
| Total Ancillaries | 96,289 |
| | 59,534 |
| | 54,964 |
| | 59,862 |
| | 62,219 |
| | 52,148 |
| | 54,749 |
| | 59,037 |
| | 341,993 |
| | 270,649 |
| | 228,153 |
|
| | | | | | | | | | | | | | | | | | | | | | |
Small Business (4) | 1,112 |
| | 1,089 |
| | 1,420 |
| | 2,287 |
| | 1,162 |
| | 1,280 |
| | 1,239 |
| | 2,777 |
| | 4,011 |
| | 5,908 |
| | 6,458 |
|
| | | | | | | | | | | | | | | | | | | | | | |
| Total Submitted Applications | 202,606 |
| | 103,121 |
| | 89,390 |
| | 192,517 |
| | 116,669 |
| | 90,019 |
| | 90,041 |
| | 195,505 |
| | 779,194 |
| | 587,634 |
| | 492,234 |
|
EHEALTH, INC.
SUBMITTED APPLICATIONS (Continued)
FOR YEARS ENDED DECEMBER 31, 2015, 2016 AND 2017
Submitted Applications
Applications are counted as submitted when the applicant completes the application and either clicks the submit button on our website or provides verbal authorization to submit the application. The applicant may have additional actions to take before the application will be reviewed by the insurance carrier, such as providing additional information. In addition, an applicant may submit more than one application.
|
| |
| (1) | Medicare-related health insurance applications submitted on our website or through our customer care center during the period, including Medicare Advantage, Medicare Part D prescription drug and Medicare Supplement plans. |
| (2) | Major medical Individual and Family plan ("IFP") health insurance applications submitted on our website during the period. An applicant may submit more than one application. We define our IFP offerings as major medical individual and family health insurance plans, which does not include Medicare-related, small business or ancillary plans. |
| (3) | Ancillary Plans consists primarily of short-term, dental and vision insurance plans submitted on our website during the period. |
| (4) | Applications for small business health insurance applications are counted as submitted when the applicant completes the application, the employees complete their applications, the applicant submits the application to us and we submit the application to the carrier. |
EHEALTH, INC.
APPROVED MEMBERS
FOR YEARS ENDED DECEMBER 31, 2015, 2016 AND 2017
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | Year Ending December 31, |
| Mar. 31, 2016 | | Jun. 30, 2016 | | Sep. 30, 2016 | | Dec. 31, 2016 | | Mar. 31, 2017 | | Jun. 30, 2017 | | Sep. 30, 2017 | | Dec. 31, 2017 | | 2015 | | 2016 | | 2017 |
| Medicare | | | | | | | | | | | | | | | | | | | | | |
| Medicare Advantage | 25,336 |
| | 23,576 |
| | 16,117 |
| | 51,652 |
| | 21,465 |
| | 21,893 |
| | 19,572 |
| | 55,125 |
| | 94,725 |
| | 116,681 |
| | 118,055 |
|
| Medicare Supplement | 2,695 |
| | 2,586 |
| | 2,165 |
| | 4,868 |
| | 4,199 |
| | 3,179 |
| | 3,550 |
| | 5,064 |
| | 8,811 |
| | 12,314 |
| | 15,992 |
|
| Medicare Part D | 4,967 |
| | 4,082 |
| | 3,724 |
| | 20,195 |
| | 5,132 |
| | 4,163 |
| | 3,265 |
| | 29,058 |
| | 25,864 |
| | 32,968 |
| | 41,618 |
|
| Total Medicare | 32,998 |
| | 30,244 |
| | 22,006 |
| | 76,715 |
| | 30,796 |
| | 29,235 |
| | 26,387 |
| | 89,247 |
| | 129,400 |
| | 161,963 |
| | 175,665 |
|
| | | | | | | | | | | | | | | | | | | | | | |
Individual and Family | | | | | | | | | | | | | | | | | | | | | |
| Non-Qualified Health Plans | 51,784 |
| | 8,402 |
| | 7,570 |
| | 30,227 |
| | 24,799 |
| | 4,161 |
| | 3,753 |
| | 17,398 |
| | 205,282 |
| | 97,983 |
| | 50,111 |
|
| Qualified Health Plans | 65,008 |
| | 5,521 |
| | 1,529 |
| | 5,807 |
| | 16,604 |
| | 3,486 |
| | 1,366 |
| | 6,986 |
| | 122,747 |
| | 77,865 |
| | 28,442 |
|
| Total Individual and Family | 116,792 |
| | 13,923 |
| | 9,099 |
| | 36,034 |
| | 41,403 |
| | 7,647 |
| | 5,119 |
| | 24,384 |
| | 328,029 |
| | 175,848 |
| | 78,553 |
|
| | | | | | | | | | | | | | | | | | | | | | |
Ancillaries | | | | | | | | | | | | | | | | | | | | | |
| Short-term | 30,225 |
| | 24,181 |
| | 25,656 |
| | 20,257 |
| | 21,251 |
| | 18,470 |
| | 24,116 |
| | 21,269 |
| | 122,280 |
| | 100,319 |
| | 85,106 |
|
| Dental | 37,783 |
| | 19,610 |
| | 16,429 |
| | 21,315 |
| | 24,734 |
| | 15,679 |
| | 13,640 |
| | 13,871 |
| | 142,927 |
| | 95,137 |
| | 67,924 |
|
| Vision | 14,437 |
| | 6,979 |
| | 6,532 |
| | 10,994 |
| | 10,753 |
| | 6,593 |
| | 6,194 |
| | 7,820 |
| | 58,245 |
| | 38,942 |
| | 31,360 |
|
| Other | 3,577 |
| | 3,414 |
| | 3,841 |
| | 4,590 |
| | 5,028 |
| | 5,604 |
| | 6,872 |
| | 8,980 |
| | 11,658 |
| | 15,422 |
| | 26,484 |
|
| Total Ancillaries | 86,022 |
| | 54,184 |
| | 52,458 |
| | 57,156 |
| | 61,766 |
| | 46,346 |
| | 50,822 |
| | 51,940 |
| | 335,110 |
| | 249,820 |
| | 210,874 |
|
| | | | | | | | | | | | | | | | | | | | | | |
| Small Business | 2,308 |
| | 1,655 |
| | 1,702 |
| | 3,079 |
| | 3,484 |
| | 2,455 |
| | 2,861 |
| | 6,502 |
| | 7,031 |
| | 8,744 |
| | 15,302 |
|
| | | | | | | | | | | | | | | | | | | | | | |
| Total Approved Members | 238,120 |
| | 100,006 |
| | 85,265 |
| | 172,984 |
| | 137,449 |
| | 85,683 |
| | 85,189 |
| | 172,073 |
| | 799,570 |
| | 596,375 |
| | 480,394 |
|
Approved Members
Approved Members represents the number of individuals on submitted applications that were approved by the relevant insurance carrier for the identified product during the relevant period. Approved members may not pay for their plan and become paying members.
EHEALTH, INC.
ESTIMATED MEMBERSHIP
FOR YEARS ENDED DECEMBER 31, 2016 AND 2017
|
| | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| Mar. 31, 2016 | | Jun. 30, 2016 | | Sep. 30, 2016 | | Dec. 31, 2016 | | Mar. 31, 2017 | | Jun. 30, 2017 | | Sep. 30, 2017 | | Dec. 31, 2017 |
Medicare (1) | | | | | | | | | | | | | | | |
| Medicare Advantage | 133,665 |
| | 150,942 |
| | 149,511 |
| | 191,904 |
| | 174,561 |
| | 185,819 |
| | 195,970 |
| | 236,857 |
|
| Medicare Supplement | 18,754 |
| | 21,270 |
| | 20,669 |
| | 23,356 |
| | 24,654 |
| | 26,533 |
| | 29,111 |
| | 33,635 |
|
| Medicare Part D | 67,857 |
| | 70,449 |
| | 72,281 |
| | 89,597 |
| | 85,650 |
| | 88,021 |
| | 89,424 |
| | 114,362 |
|
| Total Medicare | 220,276 |
| | 242,661 |
| | 242,461 |
| | 304,857 |
| | 284,865 |
| | 300,373 |
| | 314,505 |
| | 384,854 |
|
| | | | | | | | | | | | | | | | |
Individual and Family (2) | 522,998 |
| | 481,318 |
| | 390,421 |
| | 360,634 |
| | 265,201 |
| | 244,897 |
| | 227,330 |
| | 224,396 |
|
| | | | | | | | | | | | | | | | |
Ancillaries (3) | | | | | | | | | | | | | | | |
| Short-term | 37,330 |
| | 30,551 |
| | 29,558 |
| | 27,703 |
| | 20,821 |
| | 23,555 |
| | 21,670 |
| | 16,771 |
|
| Dental | 224,087 |
| | 210,130 |
| | 188,879 |
| | 184,073 |
| | 181,422 |
| | 177,818 |
| | 170,948 |
| | 170,078 |
|
| Vision | 98,516 |
| | 91,286 |
| | 86,834 |
| | 85,126 |
| | 86,294 |
| | 84,626 |
| | 83,920 |
| | 80,738 |
|
| Other | 20,847 |
| | 22,292 |
| | 21,776 |
| | 23,271 |
| | 23,361 |
| | 23,361 |
| | 22,701 |
| | 28,356 |
|
| Total Ancillaries | 380,780 |
| | 354,259 |
| | 327,047 |
| | 320,173 |
| | 311,898 |
| | 309,360 |
| | 299,239 |
| | 295,943 |
|
| | | | | | | | | | | | | | | | |
Small Business (4) | 28,851 |
| | 27,659 |
| | 28,375 |
| | 29,542 |
| | 30,743 |
| | 31,172 |
| | 33,029 |
| | 31,702 |
|
| | | | | | | | | | | | | | | | |
| Total Estimated Membership | 1,152,905 |
| | 1,105,897 |
| | 988,304 |
| | 1,015,206 |
| | 892,707 |
| | 885,802 |
| | 874,103 |
| | 936,895 |
|
Estimated Membership
Estimated membership represents the estimated number of members active on health insurance as of the date indicated based on the number of members for whom we have received or applied a commission payment during the month of estimation.
|
| |
| (1) | For Medicare-related health insurance plans, we take the sum of (i) the number of members for whom we have received or applied a commission payment for a month that is up to two months prior to the date of estimation (after reducing that number using historical experience for assumed member cancellations over the period being estimated); and (ii) the number of approved members over that period (after reducing that number using historical experience for an assumed number of members who do not accept their approved policy from the same month of the previous year and for estimated member cancellations through the date of the estimate). To the extent we determine we have received substantially all of the commission payments related to a given month during the period being estimated, we will take the number of members for whom we have received or applied a commission payment during the month of estimation. Estimated number of members active on Medicare-related health insurance as of the date indicated based on the number of members for whom we have received or applied a commission payment during the month of estimation. |
EHEALTH, INC.
ESTIMATED MEMBERSHIP (Continued)
FOR YEARS ENDED DECEMBER 31, 2016 AND 2017
|
| |
| (2) | To determine the estimate on Individual and Family (" IFP") health insurance plans, we take the sum of (i) the number of IFP members for whom we have received or applied a commission payment for a month that is up to six months prior to the date of estimation after reducing that number using historical experience for assumed member cancellations over the period being estimated; and (ii) the number of approved members over that period (after reducing that number by the percentage of members who do not accept their approved policy from the same month of the previous year for estimated member cancellations through the date of the estimate). To the extent we determine we have received substantially all of the commission payments related to a given month during the period being estimated, we will take the number of members for whom we have received or applied a commission payment during the month of estimation. For IFP health insurance plans, a member who purchases and is active on multiple standalone insurance plans will be counted as a member more than once. For example, a member who is active on both an individual and family health insurance plan and a standalone dental plan will be counted as two continuing members. |
| (3) | For ancillary health insurance plans (such as short-term, dental and vision insurance), we take the sum of (i) the number of members for whom we have received or applied a commission payment for a month that is up to three months prior to the date of estimation (after reducing that number using historical experience for assumed member cancellations over the period being estimated); and (ii) the number of approved members over that period (after reducing that number using historical experience for an assumed number of members who do not accept their approved policy from the same month of the previous year and for estimated member cancellations through the date of the estimate). To the extent we determine we have received substantially all of the commission payments related to a given month during the period being estimated, we will take the number of members for whom we have received or applied a commission payment during the month of estimation. The one to three-month period varies by insurance product and is largely dependent upon the timeliness of commission payment and related reporting from the related carriers. |
| (4) | For small business health insurance plans, we estimate the number of members using the number of initial members at the time the group is approved, and we update this number for changes in membership if such changes are reported to us by the group or carrier in the period it is reported. However, groups generally notify the carrier directly of policy cancellations and increases or decreases in group size without informing us. Health insurance carriers often do not communicate policy cancellation information or group size changes to us. We often are made aware of policy cancellations and group size changes at the time of annual renewal and update our membership statistics accordingly in the period they are reported. |
Health insurance carrier’s bill and collect insurance premiums paid by our members. The carriers do not report to us the number of members that we have as of a given date. The majority of our members who terminate their policies do so by discontinuing their premium payments to the carrier and do not inform us of the cancellation. Also, some of our members pay their premiums less frequently than monthly. Given the number of months required to observe non-payment of commissions in order to confirm cancellations, we estimate the number of members who are active on insurance policies as of a specified date.
After we have estimated membership for a period, we may receive information from health insurance carriers that would have impacted the estimate if we had received the information prior to the date of estimation. We may receive commission payments or other information that indicates that a member who was not included in our estimates for a prior period was in fact an active member at that time, or that a member who was included in our estimates was in fact not an active member of ours. For instance, we reconcile information carriers provide to us and may determine that we were not historically paid commissions owed to us, which would cause us to have underestimated membership. Conversely, carriers may require us to return commission payments paid in a prior period due to policy cancellations for members we previously estimated as being active. We do not update our estimated membership numbers reported in previous periods. Instead, we reflect updated information regarding our historical membership in the membership estimate for the current period. As a result of the delay in our receipt of information from insurance carriers, actual trends in our membership are most discernible over periods longer than from one quarter to the next. As a result of the delay we experience in receiving information about our membership, it is difficult for us to determine with any certainty the impact of current conditions on our membership retention. Health care reform and its impacts as well as other factors could cause the assumptions and estimates that we make in connection with estimating our membership to be inaccurate, which would cause our membership estimates to be inaccurate.
EHEALTH, INC.
CONSTRAINED LIFETIME VALUE OF COMMISSIONS PER APROVED MEMBER
FOR YEARS ENDED DECEMBER 31, 2016 AND 2017
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| Mar. 31, 2016 | | Jun. 30, 2016 | | Sep. 30, 2016 | | Dec. 31, 2016 | | Mar. 31, 2017 | | Jun. 30, 2017 | | Sep. 30, 2017 | | Dec. 31, 2017 |
| Medicare | | | | | | | | | | | | | | | |
| Medicare Advantage | $ | 719 |
| | $ | 731 |
| | $ | 804 |
| | $ | 915 |
| | $ | 892 |
| | $ | 851 |
| | $ | 892 |
| | $ | 932 |
|
| Medicare Supplement | $ | 896 |
| | $ | 888 |
| | $ | 946 |
| | $ | 987 |
| | $ | 932 |
| | $ | 908 |
| | $ | 969 |
| | $ | 1,024 |
|
| Medicare Part D | $ | 257 |
| | $ | 297 |
| | $ | 299 |
| | $ | 257 |
| | $ | 268 |
| | $ | 289 |
| | $ | 299 |
| | $ | 259 |
|
| | | | | | | | | | | | | | | | |
| Individual and Family | | | | | | | | | | | | | | | |
| Non-QHP | $ | 135 |
| | $ | 121 |
| | $ | 112 |
| | $ | 142 |
| | $ | 139 |
| | $ | 129 |
| | $ | 115 |
| | $ | 139 |
|
| QHP | $ | 136 |
| | $ | 124 |
| | $ | 100 |
| | $ | 133 |
| | $ | 134 |
| | $ | 121 |
| | $ | 111 |
| | $ | 133 |
|
| | | | | | | | | | | | | | | | |
| Ancillaries | | | | | | | | | | | | | | | |
| Short-term | $ | 72 |
| | $ | 77 |
| | $ | 69 |
| | $ | 73 |
| | $ | 87 |
| | $ | 56 |
| | $ | 58 |
| | $ | 58 |
|
| Dental | $ | 73 |
| | $ | 65 |
| | $ | 61 |
| | $ | 77 |
| | $ | 71 |
| | $ | 58 |
| | $ | 62 |
| | $ | 82 |
|
| Vision | $ | 45 |
| | $ | 50 |
| | $ | 50 |
| | $ | 62 |
| | $ | 53 |
| | $ | 43 |
| | $ | 46 |
| | $ | 60 |
|
| | | | | | | | | | | | | | | | |
| Small Business | $ | 161 |
| | $ | 167 |
| | $ | 161 |
| | $ | 154 |
| | $ | 168 |
| | $ | 163 |
| | $ | 167 |
| | $ | 173 |
|
Constrained Lifetime Value of Commissions Per Approved Member
|
| |
| (1) | Constrained lifetime value (“LTV”) of commissions per approved member represents commissions estimated to be collected over the estimated life of an approved member’s policy after applying constraints in accordance with our revenue recognition policy. The estimate is driven by multiple factors, including but not limited to, contracted commission rates, carrier mix, expected policy churn and applied constraints. These factors may result in varying values from period to period. |
| (2) | For Small Business the amount represents the estimated commissions we expect to collect from the plan over the following 12-months. The estimate is driven by multiple factors, including but not limited to, contracted commission rates, carrier mix, expected policy churn and applied constraints. These factors may result in varying values from period to period. |
EHEALTH, INC.
CONSTRAINTS ON LIFETIME VALUE OF COMMISSIONS PER APPROVED MEMBER
FOR YEARS ENDED DECEMBER 31, 2016 AND 2017
|
| | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| Mar. 31, 2016 | | Jun. 30, 2016 | | Sep. 30, 2016 | | Dec. 31, 2016 | | Mar. 31, 2017 | | Jun. 30, 2017 | | Sep. 30, 2017 | | Dec. 31, 2017 |
| Medicare | | | | | | | | | | | | | | | |
| Medicare Advantage | 7 | % | | 7 | % | | 7 | % | | 7 | % | | 7 | % | | 7 | % | | 7 | % | | 7 | % |
| Medicare Supplement | 5 | % | | 5 | % | | 5 | % | | 5 | % | | 5 | % | | 5 | % | | 5 | % | | 5 | % |
| Medicare Part D | 5 | % | | 5 | % | | 5 | % | | 5 | % | | 5 | % | | 5 | % | | 5 | % | | 5 | % |
| | | | | | | | | | | | | | | | |
| Individual and Family | | | | | | | | | | | | | | | |
| Non-QHP | 15 | % | | 15 | % | | 15 | % | | 15 | % | | 15 | % | | 15 | % | | 15 | % | | 15 | % |
| QHP | 20 | % | | 20 | % | | 20 | % | | 20 | % | | 20 | % | | 20 | % | | 20 | % | | 20 | % |
| | �� | | | | | | | | | | | | | | |
| Ancillaries | 10 | % | | 10 | % | | 10 | % | | 10 | % | | 10 | % | | 10 | % | | 10 | % | | 10 | % |
| | | | | | | | | | | | | | | | |
| Small Business | — | % | | — | % | | — | % | | — | % | | — | % | | — | % | | — | % | | — | % |
Constraints on Lifetime Value of Commissions Per Approved Member
Constraints are applied to derive the constrained lifetime value ("LTV") of commissions per approved member for revenue recognition in accordance with our revenue recognition policy. The constraints are applied to help ensure that commissions estimated to be collected over the estimated life of an approved member’s plan are recognized as revenue only to the extent that is it probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with future commissions receivable from the plan is subsequently resolved. We evaluate constraints on an annual basis for factors affecting our estimate of LTV of commissions per approved member and apply management judgment to determine the constraints based on current trends impacting our business.
EHEALTH, INC.
EXPENSE METRICS PER APPROVED MEMBER
FOR YEARS ENDED DECEMBER 31, 2016 AND 2017
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | Year Ending December 31, |
| | Mar. 31, 2016 | | Jun. 30, 2016 | | Sep. 30, 2016 | | Dec. 31, 2016 | | Mar. 31, 2017 | | Jun. 30, 2017 | | Sep. 30, 2017 | | Dec. 31, 2017 | | 2015 | | 2016 | | 2017 |
| Variable marketing cost per approved member | | | | | | | | | | | | | | | | | | | | | |
Medicare variable marketing cost per approved Medicare Advantage ("MA")-equivalent member (1) | $ | 337 |
| | $ | 343 |
| | $ | 405 |
| | $ | 391 |
| | $ | 408 |
| | $ | 416 |
| | $ | 396 |
| | $ | 254 |
| | $ | 286 |
| | $ | 372 |
| | $ | 337 |
|
Individual and Family Plan ("IFP") variable marketing cost per approved IFP-equivalent member (2) | $ | 63 |
| | $ | 24 |
| | $ | 25 |
| | $ | 62 |
| | $ | 35 |
| | $ | 25 |
| | $ | 31 |
| | $ | 94 |
| | $ | 85 |
| | $ | 55 |
| | $ | 50 |
|
| | | | | | | | | | | | | | | | | | | | | | |
| Customer care and enrollment ("CC&E") expense per approved member | | | | | | | | | | | | | | | | | | | | | |
Medicare CC&E expense per approved MA-equivalent member (3) | $ | 277 |
| | $ | 319 |
| | $ | 483 |
| | $ | 219 |
| | $ | 337 |
| | $ | 358 |
| | $ | 535 |
| | $ | 242 |
| | $ | 297 |
| | $ | 288 |
| | $ | 330 |
|
IFP CC&E expense per approved IFP-equivalent member (4) | $ | 13 |
| | $ | 62 |
| | $ | 87 |
| | $ | 49 |
| | $ | 42 |
| | $ | 131 |
| | $ | 147 |
| | $ | 66 |
| | $ | 23 |
| | $ | 32 |
| | $ | 74 |
|
Expense Metrics Per Approved Member
|
| |
| (1) | Variable marketing cost per approved MA-equivalent member represents direct costs incurred in member acquisition for Medicare Advantage, Medicare Supplement and Medicare Part D plans from our direct, marketing partners and online advertising channels divided by MA-equivalent approved members in a given period. MA-equivalent members is a derived metric and is equal to the sum of Medicare Part D approved members divided by 4, the number of Medicare Advantage approved members and the number of Medicare Supplement approved members in the given period. |
| (2) | Variable marketing cost per approved IFP-equivalent member represents direct costs incurred in member acquisition for IFP plans from our direct, marketing partners and online advertising channels divided by IFP-equivalent approved members in a given period. IFP-equivalent approved members is a derived metric and is equal to the sum of the number of short-term approved members divided by 3 and the IFP approved members in the given period. |
| (3) | Medicare CC&E expense per approved MA-equivalent member is equal to the CC&E expense of our Medicare business included in our operating costs and reported in our condensed consolidated statements of operations divided by MA-equivalent approved members in a given period. MA-equivalent approved members is a derived metric and is equal to the sum of Medicare Part D approved members divided by 4, the number of Medicare Advantage approved members and the number of Medicare Supplement approved members in the given period. |
| (4) | IFP CC&E expense per approved IFP-equivalent member is equal to the CC&E expense of our IFP business included in our operating costs and reported in our condensed consolidated statement of operations divided by IFP-equivalent approved members in a given period. IFP-equivalent approved members is a derived metric and is equal to the sum of the number of short-term approved members divided by 3 and the IFP approved members in the given period.
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