Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 02, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-33071 | |
Entity Registrant Name | EHEALTH, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 56-2357876 | |
Entity Address, Address Line One | 13620 RANCH ROAD 620 N, SUITE A250 | |
Entity Address, City or Town | AUSTIN | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 78717 | |
City Area Code | 737 | |
Local Phone Number | 248-2340 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | EHTH | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 29,405,418 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001333493 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 126,344 | $ 115,722 |
Short-term marketable securities | 24,721 | 5,930 |
Accounts receivable | 1,183 | 3,993 |
Contract assets – commissions receivable – current | 194,306 | 244,663 |
Prepaid expenses and other current assets | 9,298 | 12,044 |
Total current assets | 355,852 | 382,352 |
Contract assets – commissions receivable – non-current | 637,568 | 673,514 |
Property and equipment, net | 4,355 | 4,864 |
Operating lease right-of-use assets | 13,435 | 22,767 |
Restricted cash | 3,090 | 3,090 |
Other assets | 24,315 | 26,758 |
Total assets | 1,038,615 | 1,113,345 |
Current liabilities: | ||
Accounts payable | 4,957 | 7,197 |
Accrued compensation and benefits | 20,012 | 40,800 |
Accrued marketing expenses | 7,842 | 20,340 |
Short term debt | 68,662 | 0 |
Lease liabilities – current | 7,360 | 7,070 |
Other current liabilities | 7,463 | 3,131 |
Total current liabilities | 116,296 | 78,538 |
Long-term debt | 0 | 67,754 |
Deferred income taxes – non-current | 27,057 | 29,687 |
Lease liabilities – non-current | 24,380 | 28,333 |
Other non-current liabilities | 4,970 | 4,949 |
Total liabilities | 172,703 | 209,261 |
Commitments and contingencies (Note 8) | ||
Convertible preferred stock | 317,060 | 298,053 |
Stockholders’ equity: | ||
Common stock | 42 | 41 |
Additional paid-in capital | 808,314 | 798,786 |
Treasury stock, at cost | (199,998) | (199,998) |
Retained earnings (accumulated deficit) | (59,415) | 7,284 |
Accumulated other comprehensive loss | (91) | (82) |
Total stockholders’ equity | 548,852 | 606,031 |
Total liabilities, convertible preferred stock and stockholders’ equity | $ 1,038,615 | $ 1,113,345 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue: | ||||
Total revenue | $ 65,856 | $ 66,768 | $ 158,820 | $ 140,491 |
Operating costs and expenses: | ||||
Marketing and advertising | 26,783 | 23,439 | 65,520 | 56,308 |
Customer care and enrollment | 28,551 | 29,979 | 61,452 | 55,050 |
Technology and content | 13,044 | 14,453 | 26,349 | 28,806 |
General and administrative | 22,402 | 25,049 | 42,021 | 49,373 |
Impairment, restructuring and other charges | 3,035 | 0 | 9,348 | 0 |
Total operating costs and expenses | 93,815 | 92,920 | 204,690 | 189,537 |
Loss from operations | (27,959) | (26,152) | (45,870) | (49,046) |
Interest expense | (2,849) | (2,720) | (5,658) | (5,300) |
Other income, net | 2,335 | 2,828 | 4,726 | 4,816 |
Loss before income taxes | (28,473) | (26,044) | (46,802) | (49,530) |
Benefit from income taxes | (505) | (2,543) | (1,850) | (6,151) |
Net loss | (27,968) | (23,501) | (44,952) | (43,379) |
Preferred stock dividends | (5,480) | (5,223) | (10,960) | (10,324) |
Change in preferred stock redemption value | (5,540) | (4,191) | (10,787) | (7,260) |
Net loss attributable to common stockholders | $ (38,988) | $ (32,915) | $ (66,699) | $ (60,963) |
Net loss per share attributable to common stockholders: | ||||
Basic (in dollars per share) | $ (1.33) | $ (1.18) | $ (2.29) | $ (2.20) |
Diluted (in dollars per share) | $ (1.33) | $ (1.18) | $ (2.29) | $ (2.20) |
Weighted-average number of shares used in per share amounts: | ||||
Basic (in shares) | 29,233 | 27,822 | 29,072 | 27,735 |
Diluted (in shares) | 29,233 | 27,822 | 29,072 | 27,735 |
Comprehensive loss: | ||||
Net loss | $ (27,968) | $ (23,501) | $ (44,952) | $ (43,379) |
Unrealized holding gain (loss) on available for sale debt securities, net of tax | 2 | 7 | (21) | 20 |
Foreign currency translation adjustments | (33) | (248) | 12 | (138) |
Comprehensive loss | (27,999) | (23,742) | (44,961) | (43,497) |
Commission | ||||
Revenue: | ||||
Total revenue | 56,847 | 60,186 | 137,774 | 128,189 |
Other | ||||
Revenue: | ||||
Total revenue | $ 9,009 | $ 6,582 | $ 21,046 | $ 12,302 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Dec. 31, 2022 | 39,977 | |||||
Beginning balance at Dec. 31, 2022 | $ 650,955 | $ 40 | $ 777,187 | $ (199,998) | $ 73,799 | $ (73) |
Beginning balance (in shares) at Dec. 31, 2022 | 12,415 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock in connection with equity incentive plans (in shares) | 160 | |||||
Repurchase of shares to satisfy employee tax withholding obligations | (428) | (428) | ||||
Repurchase of shares to satisfy employee tax withholding obligations (in shares) | 57 | |||||
Dividends and accretion related to convertible preferred stock | (8,170) | (8,170) | ||||
Stock-based compensation | 5,306 | 5,306 | ||||
Other comprehensive income (loss), net of tax | 123 | 123 | ||||
Net loss | (19,878) | (19,878) | ||||
Ending balance (in shares) at Mar. 31, 2023 | 40,137 | |||||
Ending balance at Mar. 31, 2023 | 627,908 | $ 40 | 782,065 | $ (199,998) | 45,751 | 50 |
Ending balance (in shares) at Mar. 31, 2023 | 12,472 | |||||
Beginning balance (in shares) at Dec. 31, 2022 | 39,977 | |||||
Beginning balance at Dec. 31, 2022 | 650,955 | $ 40 | 777,187 | $ (199,998) | 73,799 | (73) |
Beginning balance (in shares) at Dec. 31, 2022 | 12,415 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (43,379) | |||||
Ending balance (in shares) at Jun. 30, 2023 | 40,533 | |||||
Ending balance at Jun. 30, 2023 | $ 600,909 | $ 40 | 788,222 | $ (199,998) | 12,836 | (191) |
Ending balance (in shares) at Jun. 30, 2023 | 12,500 | 12,542 | ||||
Beginning balance (in shares) at Mar. 31, 2023 | 40,137 | |||||
Beginning balance at Mar. 31, 2023 | $ 627,908 | $ 40 | 782,065 | $ (199,998) | 45,751 | 50 |
Beginning balance (in shares) at Mar. 31, 2023 | 12,472 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock in connection with equity incentive plans (in shares) | 320 | |||||
Repurchase of shares to satisfy employee tax withholding obligations | (623) | (623) | ||||
Repurchase of shares to satisfy employee tax withholding obligations (in shares) | 70 | |||||
Dividends and accretion related to convertible preferred stock | (9,414) | (9,414) | ||||
Issuance of common stock for employee stock purchase program (in shares) | 76 | |||||
Issuance of common stock for employee stock purchase program | 262 | 262 | ||||
Stock-based compensation | 6,518 | 6,518 | ||||
Other comprehensive income (loss), net of tax | (241) | (241) | ||||
Net loss | (23,501) | (23,501) | ||||
Ending balance (in shares) at Jun. 30, 2023 | 40,533 | |||||
Ending balance at Jun. 30, 2023 | $ 600,909 | $ 40 | 788,222 | $ (199,998) | 12,836 | (191) |
Ending balance (in shares) at Jun. 30, 2023 | 12,500 | 12,542 | ||||
Beginning balance (in shares) at Dec. 31, 2023 | 41,457 | |||||
Beginning balance at Dec. 31, 2023 | $ 606,031 | $ 41 | 798,786 | $ (199,998) | 7,284 | (82) |
Beginning balance (in shares) at Dec. 31, 2023 | 12,828 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock in connection with equity incentive plans (in shares) | 545 | |||||
Issuance of common stock in connection with equity incentive plans | 1 | $ 1 | ||||
Repurchase of shares to satisfy employee tax withholding obligations | (1,256) | (1,256) | ||||
Repurchase of shares to satisfy employee tax withholding obligations (in shares) | 172 | |||||
Dividends and accretion related to convertible preferred stock | (10,727) | (10,727) | ||||
Stock-based compensation | 5,718 | 5,718 | ||||
Other comprehensive income (loss), net of tax | 22 | 22 | ||||
Net loss | (16,984) | (16,984) | ||||
Ending balance (in shares) at Mar. 31, 2024 | 42,002 | |||||
Ending balance at Mar. 31, 2024 | 582,805 | $ 42 | 803,248 | $ (199,998) | (20,427) | (60) |
Ending balance (in shares) at Mar. 31, 2024 | 13,000 | |||||
Beginning balance (in shares) at Dec. 31, 2023 | 41,457 | |||||
Beginning balance at Dec. 31, 2023 | 606,031 | $ 41 | 798,786 | $ (199,998) | 7,284 | (82) |
Beginning balance (in shares) at Dec. 31, 2023 | 12,828 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (44,952) | |||||
Ending balance (in shares) at Jun. 30, 2024 | 42,415 | |||||
Ending balance at Jun. 30, 2024 | $ 548,852 | $ 42 | 808,314 | $ (199,998) | (59,415) | (91) |
Ending balance (in shares) at Jun. 30, 2024 | 13,100 | 13,115 | ||||
Beginning balance (in shares) at Mar. 31, 2024 | 42,002 | |||||
Beginning balance at Mar. 31, 2024 | $ 582,805 | $ 42 | 803,248 | $ (199,998) | (20,427) | (60) |
Beginning balance (in shares) at Mar. 31, 2024 | 13,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock in connection with equity incentive plans (in shares) | 333 | |||||
Repurchase of shares to satisfy employee tax withholding obligations | (596) | (596) | ||||
Repurchase of shares to satisfy employee tax withholding obligations (in shares) | 115 | |||||
Dividends and accretion related to convertible preferred stock | (11,020) | (11,020) | ||||
Issuance of common stock for employee stock purchase program (in shares) | 80 | |||||
Issuance of common stock for employee stock purchase program | 354 | 354 | ||||
Stock-based compensation | 5,308 | 5,308 | ||||
Other comprehensive income (loss), net of tax | (31) | (31) | ||||
Net loss | (27,968) | (27,968) | ||||
Ending balance (in shares) at Jun. 30, 2024 | 42,415 | |||||
Ending balance at Jun. 30, 2024 | $ 548,852 | $ 42 | $ 808,314 | $ (199,998) | $ (59,415) | $ (91) |
Ending balance (in shares) at Jun. 30, 2024 | 13,100 | 13,115 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Operating activities: | ||
Net loss | $ (44,952) | $ (43,379) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 1,008 | 1,294 |
Amortization of internally developed software | 7,676 | 9,102 |
Stock-based compensation expense | 10,646 | 11,187 |
Deferred income taxes | (2,631) | (6,700) |
Impairment charges | 7,413 | 0 |
Other non-cash items | (117) | (101) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,810 | 1,989 |
Contract assets – commissions receivable | 86,697 | 95,012 |
Prepaid expenses and other assets | 1,431 | (124) |
Accounts payable | (2,474) | (621) |
Accrued compensation and benefits | (20,788) | 279 |
Accrued marketing expenses | (12,498) | (17,336) |
Deferred revenue | 2,034 | 283 |
Accrued expenses and other liabilities | 2,324 | 490 |
Net cash provided by operating activities | 38,579 | 51,375 |
Investing activities: | ||
Capitalized internal-use software and website development costs | (4,879) | (4,202) |
Purchases of property and equipment and other assets | (465) | (373) |
Purchases of marketable securities | (37,391) | (48,602) |
Proceeds from redemption and maturities of marketable securities | 19,000 | 12,400 |
Net cash used in investing activities | (23,735) | (40,777) |
Financing activities: | ||
Net proceeds from exercise of common stock options and employee stock purchases | 354 | 262 |
Repurchase of shares to satisfy employee tax withholding obligations | (1,851) | (1,051) |
Principal payments in connection with leases | (4) | (25) |
Payments of preferred stock dividends | (2,740) | (873) |
Net cash used in financing activities | (4,241) | (1,687) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 19 | (127) |
Net increase in cash, cash equivalents and restricted cash | 10,622 | 8,784 |
Cash, cash equivalents and restricted cash at beginning of period | 118,812 | 147,640 |
Cash, cash equivalents and restricted cash at end of period | $ 129,434 | $ 156,424 |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Business and Significant Accounting Policies | Summary of Business and Significant Accounting Policies Description of Business – eHealth, Inc., a Delaware corporation, and its consolidated subsidiaries (collectively, “eHealth”) is a leading private online health insurance marketplace with a technology and service platform that provides consumer engagement, education and health insurance enrollment solutions. Our mission is to expertly guide consumers through their health insurance enrollment and related options, when, where and how they prefer. Our platform leverages technology to solve a critical problem in a large and growing market by aiding consumers in what has traditionally been a complex, confusing, and opaque health insurance purchasing process. Our omnichannel consumer engagement platform differentiates our offering from other brokers and enables consumers to use our services online, by telephone with a licensed insurance agent, or benefit advisor, or through a hybrid online assisted interaction that includes live agent chat and co-browsing capabilities. We have created a consumer-centric marketplace that offers consumers a broad choice of insurance products that includes thousands of Medicare Advantage, Medicare Supplement, Medicare Part D prescription drug, individual, family, small business and other ancillary health insurance products from over 180 health insurance carriers nationwide. Our plan recommendation tool curates this broad plan selection by analyzing customer health-related information against plan data for insurance coverage fit. This tool is supported by a unified data platform and is available to our ecommerce customers and our benefit advisors. We strive to be the most trusted partner to the consumer in their life’s journey through the health insurance market. Unless otherwise specified or required by the context, references in this Quarterly Report on Form 10-Q to “eHealth,” “the Company,” “we,” “us” or “our” mean eHealth, Inc. and its consolidated direct and indirect wholly-owned subsidiaries. Basis of Presentation – The accompanying Condensed Consolidated Balance Sheet as of June 30, 2024 and other condensed consolidated financial statements for the three and six months ended June 30, 2024 and 2023 are unaudited. The Condensed Consolidated Balance Sheet as of December 31, 2023 was derived from the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the Securities and Exchange Commission on February 29, 2024. The accompanying financial statements and related notes should be read in conjunction with the audited consolidated financial statements and related notes included 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 (“U.S. GAAP”) for interim financial information and reflect all normal recurring adjustments that are necessary to present fairly the results for the interim periods presented. The condensed consolidated financial statements include the accounts of eHealth, Inc. and its direct and indirect wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted in accordance with those rules and regulations. Certain prior period amounts have been reclassified to conform with our current period presentation. 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, 2023 and include all adjustments necessary for the fair presentation of our financial position as of June 30, 2024 and December 31, 2023 and our results of operations for the periods presented. The results for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for any subsequent period or for the year ending December 31, 2024 and therefore, should not be relied upon as an indicator of future results. Beginning in the first quarter of 2024, primarily as a result of vacating excess office space, we modified our methodology used in allocating certain expenses for the purpose of evaluating financial and segment performance and resource allocation. Specifically, we no longer allocate our facilities-related expenses, and as a result, these costs are now reported within the “General and administrative” line in our Condensed Consolidated Statements of Comprehensive Loss and within Corporate for our segment profit (loss). We have recast the Condensed Consolidated Statements of Comprehensive Loss and our segment profit (loss) for the prior periods presented to conform to our current methodology. This resulted in a classification change of expenses from marketing and advertising, customer care and enrollment, and technology and content into general and administrative. Additionally, our segment profit (loss) no longer includes our facilities allocation to each of our segments and instead, these costs are included within Corporate. There was no impact to total operating costs and expenses, loss from operations, net loss or net loss per share attributable to common stockholders on our Condensed Consolidated Statements of Comprehensive Loss. Significant Accounting Policies, Estimates and Judgments – The preparation of condensed consolidated financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying notes. On an ongoing basis, we evaluate our estimates, including those related to, but not limited to, the fair value of investments, the commissions we expect to collect for each approved member cohort, valuation allowance for deferred income taxes, provision for (benefit from) income taxes and the assumptions used in determining stock-based compensation. We base our estimates of the carrying value of certain assets and liabilities on historical experience and on various other assumptions that we believe to be reasonable. Actual results may differ from these estimates. There have been no material changes for the six months ended June 30, 2024 to our significant accounting policies discussed in our Annual Report on Form 10-K for the year ended December 31, 2023. Recently Adopted Accounting Pronouncements We did not adopt any new accounting pronouncements during the six months ended June 30, 2024. Recently Issued Accounting Pronouncements Not Yet Adopted Segment Reporting (Topic 280) — In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of a segment’s profit or loss. The ASU is effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024. Adoption of the ASU should be applied retrospectively to all prior periods presented in the financial statements and early adoption is permitted. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and related disclosures. Income Taxes (Topic 740) — In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as additional disclosure on income taxes paid. The ASU is effective on a prospective basis for fiscal years beginning after December 15, 2024 for public entities and early adoption is permitted. We are currently evaluating the impact of adopting of this ASU on our consolidated financial statements and related disclosures. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue – The table below depicts the disaggregation of revenue by product and is consistent with how we evaluate our financial performance (in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Medicare Medicare Advantage $ 42,168 $ 45,389 $ 104,164 $ 99,510 Medicare Supplement 4,045 1,091 9,523 5,156 Medicare Part D 2,710 1,863 5,395 2,640 Total Medicare 48,923 48,343 119,082 107,306 Individual and Family (1) Non-Qualified Health Plans 388 2,989 2,033 5,344 Qualified Health Plans 710 1,752 2,756 3,403 Total Individual and Family 1,098 4,741 4,789 8,747 Ancillary Short-term 1,043 572 1,431 1,556 Dental 524 958 1,401 1,668 Vision 302 276 991 486 Other 686 715 1,420 1,233 Total Ancillary 2,555 2,521 5,243 4,943 Small Business 2,563 3,800 6,179 8,673 Commission Bonus and Other 1,708 781 2,481 (1,480) Total Commission Revenue 56,847 60,186 137,774 128,189 Other Revenue Sponsorship and Advertising Revenue 5,478 5,554 15,667 9,574 Other 3,531 1,028 5,379 2,728 Total Other Revenue 9,009 6,582 21,046 12,302 Total Revenue $ 65,856 $ 66,768 $ 158,820 $ 140,491 _____________ (1) We define our individual and family plan offerings as major medical individual and family health insurance plans, which do 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 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 do not meet the requirements of the Affordable Care Act and are not offered through the government-run health insurance exchange in the relevant jurisdiction. Individuals that purchase non-qualified health plans cannot receive a subsidy in connection with the purchase of non-qualified plans. Commission revenue by segment is presented in the table below (in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Medicare Commission revenue from members approved during the period $ 39,941 $ 36,006 $ 109,693 $ 92,623 Net commission revenue from members approved in prior periods (1) 10,681 13,403 11,683 13,455 Total Medicare segment commission revenue $ 50,622 $ 49,409 $ 121,376 $ 106,078 Employer and Individual Commission revenue from members approved during the period $ 3,265 $ 3,298 $ 8,942 $ 10,006 Commission revenue from renewals of small business members during the period 2,142 2,158 5,170 5,271 Net commission revenue from members approved in prior periods (1) 818 5,321 2,286 6,834 Total Employer and Individual segment commission revenue $ 6,225 $ 10,777 $ 16,398 $ 22,111 Total commission revenue from members approved during the period $ 43,206 $ 39,304 $ 118,635 $ 102,629 Commission revenue from renewals of small business members during the period 2,142 2,158 5,170 5,271 Total net commission revenue from members approved in prior periods (1)(2) 11,499 18,724 13,969 20,289 Total commission revenue $ 56,847 $ 60,186 $ 137,774 $ 128,189 _____________ (1) These amounts reflect our revised estimates of cash collections for certain members approved prior to the relevant reporting period that are recognized as adjustments to revenue within the relevant reporting period. The net commission revenue from members approved in prior periods, or the net adjustment revenue, includes both increases as well as reductions in revenue for certain prior period cohorts. (2) The after-tax impact of total net commission revenue from members approved in prior periods for the three months ended June 30, 2024 and 2023 was $0.30 and $0.51 per basic and diluted share, respectively. The after-tax impact of total net commission revenue from members approved in prior periods for the six months ended June 30, 2024 and 2023 was $0.36 and $0.56 per basic and diluted share, respectively. The total reductions to revenue from members approved in prior periods were $3.1 million and $2.9 million for the three months ended June 30, 2024 and 2023, respectively, and $3.6 million and $2.9 million for the six months ended June 30, 2024 and 2023, respectively. These reductions to revenue primarily relate to the Medicare segment. |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 6 Months Ended |
Jun. 30, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Financial Statement Information | Supplemental Financial Statement Information Cash, Cash Equivalents and Restricted Cash We consider all investments with an original maturity of 90 days or less from the date of purchase to be cash equivalents. Cash and cash equivalents are stated at fair value. We also invest in marketable securities that are measured and recorded at fair value. See Note 4 – Fair Value Measurements for further discussion about our marketable securities. Our cash, cash equivalents and restricted cash balances are summarized as follows (in thousands): June 30, 2024 December 31, 2023 Cash $ 9,994 $ 7,114 Cash equivalents 116,350 108,608 Cash and cash equivalents 126,344 115,722 Restricted cash 3,090 3,090 Total cash, cash equivalents and restricted cash $ 129,434 $ 118,812 As of June 30, 2024 and December 31, 2023, we had $3.1 million of restricted cash which was classified as a non-current asset on our Condensed Consolidated Balance Sheets. This amount collateralizes letters of credit related to certain lease commitments. Contract Assets and Accounts Receivable We estimate an allowance for credit losses using relevant available information from internal and external sources, related to past events, current conditions and reasonable and supportable forecasts. Specifically, for the purpose of measuring the probability of default parameters, we utilize Capital IQ’s, Standard & Poor’s and Moody’s analytics. Our estimates of loss given default are determined by using our historical collections data as well as historical information obtained through our research and review of other insurance related companies. Our estimated exposure at default is determined by applying these internal and external data sources to our commissions receivable balances. As such, we apply an immediate reversion method and revert to historical loss information when computing our credit loss exposure. Credit loss expenses are assessed quarterly and included in the “General and administrative” line in our Condensed Consolidated Statements of Comprehensive Loss. There wer e no write-offs during the six months ended June 30, 2024 or for the year ended December 31, 2023. The change in the allowance for credit losses is summarized as follows (in thousands): June 30, 2024 December 31, 2023 Beginning balance $ 2,118 $ 2,398 Change in allowance (393) (280) Ending balance $ 1,725 $ 2,118 Our contract assets – commissions receivable activities, net of credit loss allowances, are summarized as follows (in thousands): Medicare Segment E&I Segment Total Beginning balance at December 31, 2023 $ 847,332 $ 70,845 $ 918,177 Commission revenue from members approved during the period 109,693 8,942 118,635 Commission revenue from renewals of small business members during the period — 5,170 5,170 Net commission revenue from members approved in prior periods 11,683 2,286 13,969 Cash receipts (204,533) (19,937) (224,470) Net change in credit loss allowance 361 32 393 Ending balance at June 30, 2024 $ 764,536 $ 67,338 $ 831,874 Credit Risk Our financial instruments that are exposed to concentrations of credit risk principally consist of cash, cash equivalents, marketable securities, contract assets – commissions receivable and accounts receivable. We invest our cash and cash equivalents with major banks and financial institutions and, at times, such investments are in excess of federally insured limits. We also have deposits with major banks in China that are denominated in both U.S. dollars and Chinese Yuan Renminbi and are not insured by the U.S. federal government. The deposits in China were $2.8 million as of June 30, 2024. See Note 4 – Fair Value Measurements for additional information regarding our marketable securities. We do not require collateral or other security for either our contract assets or accounts receivable. Carriers that represented 10% or more of our total contract assets – commissions receivable and accounts receivable balances are summarized as follows: June 30, 2024 December 31, 2023 Humana 29 % 27 % UnitedHealthcare (1) 27 % 26 % Aetna (1) 17 % 16 % _____________ (1) Percentages include the carriers’ subsidiaries. Prepaid Expenses and Other Current Assets – Our prepaid expenses and other current assets are summarized as follows (in thousands): June 30, 2024 December 31, 2023 Prepaid software and maintenance contracts $ 4,251 $ 5,328 Prepaid expenses 2,230 1,808 Prepaid licenses 1,609 2,739 Prepaid insurance 415 1,436 Other current assets 793 733 Prepaid expenses and other current assets $ 9,298 $ 12,044 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
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; unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability. Level 3 Unobservable inputs for the asset or liability. Our financial assets measured at fair value on a recurring basis are summarized below by their classification within the fair value hierarchy as follows (in thousands): June 30, 2024 Carrying Value Level 1 Level 2 Level 3 Total Assets Cash equivalents Money market funds $ 10,656 $ 10,656 $ — $ — $ 10,656 Commercial paper 94,706 — 94,706 — 94,706 Agency bonds 10,988 — 10,988 — 10,988 Short-term marketable securities Commercial paper 12,822 — 12,822 — 12,822 Agency bonds 11,899 — 11,899 — 11,899 Total assets measured at fair value $ 141,071 $ 10,656 $ 130,415 $ — $ 141,071 December 31, 2023 Carrying Value Level 1 Level 2 Level 3 Total Assets Cash equivalents Money market funds $ 11,576 $ 11,576 $ — $ — $ 11,576 Commercial paper 86,090 — 86,090 — 86,090 Agency bonds 10,942 — 10,942 — 10,942 Short-term marketable securities Agency bonds 5,930 — 5,930 — 5,930 Total assets measured at fair value $ 114,538 $ 11,576 $ 102,962 $ — $ 114,538 We endeavor to utilize the best available information in measuring fair value. Our money market funds are measured at fair value based on quoted prices in active markets and are classified as Level 1 within the fair value hierarchy. Our available for sale marketable securities, which include commercial paper and agency bonds with maturities of less than one year, are measured at fair value using quoted market prices to the extent available or alternative pricing sources and models utilizing market observable inputs and are classified as Level 2 within the fair value hierarchy. There were no transfers between the hierarchy levels during either of the six months ended June 30, 2024 or the year ended December 31, 2023. The following table summarizes our cash equivalents and available for sale debt securities by contractual maturity (in thousands): As of June 30, 2024 As of December 31, 2023 Amortized Cost Fair Value Amortized Cost Fair Value Due in 1 year $ 141,132 $ 141,071 $ 114,577 $ 114,538 Unrealized gains and losses on available for sale debt securities that are not credit related are included in accumulated other comprehensive loss and summarized as follows (in thousands): June 30, 2024 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents Money market funds $ 10,656 $ — $ — $ 10,656 Commercial paper 94,755 — (49) 94,706 Agency bonds 10,988 — — 10,988 Short-term marketable securities Commercial paper 12,834 — (12) 12,822 Agency bonds 11,899 — — 11,899 Total $ 141,132 $ — $ (61) $ 141,071 December 31, 2023 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents Money market funds $ 11,576 $ — $ — $ 11,576 Commercial paper 86,132 — (42) 86,090 Agency bonds 10,940 2 — 10,942 Short-term marketable securities Agency bonds 5,929 1 — 5,930 Total $ 114,577 $ 3 $ (42) $ 114,538 As of June 30, 2024 and December 31, 2023, we had 28 and 20 securities, respectively, in a net unrealized loss position that were immaterial individually and in aggregate. We did not record any credit losses regarding our available for sale debt securities during the six months ended June 30, 2024 or the year ended December 31, 2023. We do not intend to sell these securities, and it is more likely than not that we will not be required to sell these securities before the recovery of their amortized cost basis. We recognized interest income of $2.1 million and $2.3 million for the three months ended June 30, 2024 and 2023, respectively, and $4.3 million and $4.2 million for the six months ended June 30, 2024 and 2023, respectively. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity 2021 Inducement Plan – On September 22, 2021, the Company adopted an inducement plan (the “2021 Inducement Plan”), pursuant to which the Company reserved 0.4 million shares of its common stock (subject to customary adjustments in the event of a change in capital structure of the Company) to be used exclusively for grants of awards to individuals who were not previously employees or directors of the Company, other than following a bona fide period of non-employment, as an inducement material to the individual’s entry into employment with the Company within the meaning of Rule 5635(c)(4) of the Nasdaq Listing Rules (“Nasdaq Rules”). In March 2022 and September 2022, the Company amended and restated its 2021 Inducement Plan to reserve an additional 0.5 million and 1.5 million shares of its common stock, respectively (as amended and restated, the “A&R 2021 Inducement Plan”). The 2021 Inducement Plan and its amendments were approved by our Board of Directors without stockholder approval pursuant to Rule 5635(c)(4) of the Nasdaq Rules, and the terms and conditions of the A&R 2021 Inducement Plan and awards to be granted thereunder are substantially similar to our stockholder-approved Amended and Restated 2014 Equity Incentive Plan. As of June 30, 2024, 2.0 million shares were issued under the A&R 2021 Inducement Plan. Stock Repurchase Programs – We had no stock repurchase activity during the three and six months ended June 30, 2024 or 2023 except for the repurchase of shares to satisfy employee tax withholding obligations. As of June 30, 2024 and 2023, we had a total o f 13.1 million and 12.5 million shares, respectively, held in treasury. As of June 30, 2024 and 2023, we had 2.4 million and 1.8 million shares, respectively, in treasury that were previously surrendered by employees to satisfy tax withholding due in connection with the vesting of certain restricted stock units as well as 10.7 million shares previously repurchased under our past repurchase programs. For accounting purposes, common stock repurchased under our stock repurchase programs is recorded based upon the settlement date of the applicable trade. Such repurchased shares are held in treasury and are presented using the cost method. Stock-Based Compensation Expense – Our stock-based compensation expense is summarized as follows by award types for the periods presented below (in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Restricted stock units $ 4,296 $ 4,934 $ 8,932 $ 9,007 Performance-based stock units 467 850 874 1,454 Common stock options 343 312 743 566 Employee stock purchase program — 97 97 160 Total stock-based compensation expense $ 5,106 $ 6,193 $ 10,646 $ 11,187 Related tax benefit recognized $ 1,255 $ 1,452 $ 2,612 $ 2,619 The following table summarizes stock-based compensation expense by operating function for the periods presented below (in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Marketing and advertising $ 711 $ 538 $ 1,355 $ 993 Customer care and enrollment 511 788 1,035 1,393 Technology and content 779 1,173 1,753 2,078 General and administrative 3,105 3,694 6,503 6,723 Total stock-based compensation expense $ 5,106 $ 6,193 $ 10,646 $ 11,187 Amount capitalized for internal-use software 202 325 380 637 Total stock-based compensation $ 5,308 $ 6,518 $ 11,026 $ 11,824 |
Convertible Preferred Stock
Convertible Preferred Stock | 6 Months Ended |
Jun. 30, 2024 | |
Temporary Equity Disclosure [Abstract] | |
Convertible Preferred Stock | Convertible Preferred Stock Pursuant to an investment agreement dated February 17, 2021 with Echelon Health SPV, LP (“H.I.G.”), an investment vehicle of H.I.G. Capital (the “H.I.G. Investment Agreement”), we issued and sold to H.I.G., in a private placement, 2,250,000 shares of Series A convertible preferred stock (the “Series A Preferred Stock”), par value $0.001 per share, at an aggregate purchase price of $225.0 million on April 30, 2021 (the “Closing Date”). We received $214.0 million in net proceeds from the private placement with H.I.G., net of sales commissions and certain transaction fees totaling $11.0 million. Our Series A Preferred Stock is considered temporary equity in our Condensed Consolidated Balance Sheets and we have determined there are no material embedded features that require recognition as a derivative asset or liability. The Series A Preferred Stock ranks senior to all other equity securities of the Company with respect to dividend rights and rights on the distribution of assets on any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Company. Dividends – Dividends initially accrued on the Series A Preferred Stock daily at 8% per annum on the stated value of $100 per share (the “Stated Value”), and were payable in kind (“PIK”) beginning on June 30, 2021 through the second anniversary of the Closing Date. Subsequent to the second anniversary of the Closing Date, dividends continue to accrue at 8% per annum, with 6% PIK and 2% payable in cash in arrears beginning on June 30, 2023. Dividends compound semiannually and are PIK and payable in cash in arrears, as applicable, on June 30 and December 31 of each year (each a “Dividend Payment Date”). PIK dividends are cumulative and are added to the Accrued Value. “Accrued Value” means, as of any date, with respect to any share of Series A Preferred Stock, the sum of the Stated Value per share plus, on each Dividend Payment Date, on a cumulative basis, all PIK dividends that have accrued on such share but that have not previously been added to the Accrued Value. During the second quarter of 2024 we made a cash dividend payment of $2.7 million. T he Series A Preferred Stock participates, on an as-converted basis, in all dividends paid to the holders of our common stock. Conversion Rights – The Series A Preferred Stock is convertible at any time into common stock at a conversion rate equal to (i) the Accrued Value plus accrued PIK dividends that have not yet been added to the Accrued Value, (ii) divided by the conversion price as of the applicable conversion date (the “Conversion Price”). As of June 30, 2024, the Conversion Price is equal to $79.5861 per share. This Conversion Price is subject to further adjustment and the number of shares of common stock issuable upon conversion of the Series A Preferred Stock is subject to certain limitations, each as set forth in the Certificate of Designations of Series A Preferred Stock, as filed with the Secretary of State of the State of Delaware on April 30, 2021 (the “Certificate of Designations”). Redemption Put Right – At any time on or after the sixth anniversary of the Closing Date, holders of the Series A Preferred Stock will have the right to cause the Company to redeem all or any portion of the Series A Preferred Stock in cash at an amount equal to the greater of (i) 135% of the Accrued Value per share as of the redemption date, plus accrued PIK dividends that have not yet been added to the Accrued Value and (ii) the amount per share that would be payable on an as-converted basis on such Series A Preferred Stock at the then-current Accrued Value, plus accrued PIK dividends that have not yet been added to the Accrued Value, and in either case of (i) or (ii) plus any unpaid cash dividends that would have otherwise been settled in cash in connection with such conversion (the greater of (i) and (ii), the “Redemption Price”). Redemption Call Right – At any time on or after the sixth anniversary of the Closing Date, the Company will have the right (but not the obligation) to redeem out of legally available funds and for cash consideration all (but not less than all) of the Series A Preferred Stock upon at least 30 days prior written notice at an amount equal to the Redemption Price. Board Nomination Rights – H.I.G. is entitled to nominate one individual for election to our Board of Directors so long as it continues to own at least 30% of the common stock issuable or issued upon conversion of the Series A Preferred Stock originally issued to it in the private placement. Under certain circumstances, H.I.G. also has the right to nominate an additional individual to our Board of Directors if we fail to maintain certain levels of commissions receivable or liquidity as further discussed below. Voting Rights – The Series A Preferred Stock will vote together with the common stock as a single class on all matters submitted to a vote of the holders of the common stock (subject to certain voting limitations set forth in, and the terms and conditions of, the Certificate of Designations). Each holder of Series A Preferred Stock shall be entitled to the number of votes, rounded down to the nearest whole number, equal to the product of (i) the aggregate Accrued Value of the issued and outstanding shares of Series A Preferred Stock divided by $69.684, which is the “Minimum Price” computed in accordance with the Certificate of Designations (as further described below), multiplied by (ii) a fraction, the numerator of which is the number of shares of Series A Preferred Stock held by such holder and the denominator of which is the aggregate number of issued and outstanding shares of Series A Preferred Stock. “Minimum Price” means the lower of: (i) the Nasdaq Official Closing Price per share of common stock on the Closing Date; or (ii) the average Nasdaq Official Closing Price per share of common stock for the five trading days immediately prior to the Closing Date. Holders of Series A Preferred Stock will have one vote per share on any matter on which the holders of the Series A Preferred Stock are entitled to vote separately as a class (subject to certain voting limitations set forth in the Certificate of Designations). Mandatory Conversion of the Series A Preferred Stock – At any time on or after the third anniversary of the Closing Date, if the volume-weighted average price per share of our common stock is greater than 167.5% of the then-current Conversion Price for 20 consecutive trading days in a 30-day trading day period, the Company will have the right to convert all, but not less than all, of the Series A Preferred Stock into common stock at a conversion rate with respect to each share of Series A Preferred Stock of (i) the Accrued Value plus accrued PIK dividends that have not yet been added to the Accrued Value, (ii) divided by the then applicable Conversion Price. Covenants and Liquidity Requirements – As long as H.I.G. continues to own at least 30% of the Series A Preferred Stock originally issued to it in the private placement, the consent of H.I.G. will be required for the Company to incur certain indebtedness and to take certain other corporate actions as set forth in the H.I.G. Investment Agreement. In addition, the Company is required to maintain an Asset Coverage Ratio (as defined in the H.I.G. Investment Agreement) of at least 2.0x (the “Minimum Asset Coverage Ratio”), which increased to 2.5x in August of 2023. The first measurement date of the 2.5x Minimum Asset Coverage Ratio was September 30, 2023. Additionally, the H.I.G. Investment Agreement requires the Company to maintain a Minimum Liquidity Amount (as defined in the H.I.G. Investment Agreement) for certain periods that ranges from $65.0 million to $125.0 million. Failure to maintain the Minimum Asset Coverage Ratio or the Minimum Liquidity Amount as of the date or for the time period required by the H.I.G. Investment Agreement, for as long as H.I.G. continues to own at least 30% of the Series A Preferred Stock originally issued to it in the private placement, entitles H.I.G., subject to conditions and restrictions specified therein, to additional rights, including the right to nominate one additional member to the Company’s Board of Directors, the right to approve the Company’s annual budget, the right to approve hiring or termination of certain key executives and the right to approve the incurrence of certain indebtedness. As of September 30, 2023, we failed to maintain the Minimum Asset Coverage Ratio, which entitles H.I.G to the additional rights set forth above. On March 13, 2024, the Nominating and Corporate Governance Committee of our Board of Directors approved the appointment of a board observer designated by H.I.G. As of June 30, 2024, we were in compliance with the Minimum Liquidity Amount. As of June 30, 2024, the estimated Series A Preferred Stock redemption value equals 135% of the Accrued Value per share as of the redemption date, plus accrued PIK dividends that have not yet been added to the Accrued Value, which is significantly in excess of the fair value of the common stock into which the Series A Preferred Stock is convertible as of June 30, 2024. We have elected to apply the accretion method to adjust the carrying value of the Series A Preferred Stock to its redemption value at the earliest date of redemption, April 30, 2027. Amounts recognized to accrete the Series A Preferred Stock to its estimated redemption value are treated as a deemed dividend and are recorded as a reduction to retained earnings. The estimated redemption value will vary in subsequent periods due to the redemption put right described above and we have elected to recognize such changes prospectively. No shares of Series A Preferred Stock have been converted, and the Series A Preferred Stock was convertible into 3.5 million shares of common stock as of June 30, 2024. The following table summarizes the proceeds and changes to our Series A Preferred Stock (in thousands): Gross proceeds $ 225,000 Less: issuance costs (10,975) Net proceeds $ 214,025 Balance as of December 31, 2023 $ 298,053 Accrued paid-in-kind dividends 8,220 Change in preferred stock redemption value 10,787 Balance as of June 30, 2024 $ 317,060 |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share Attributable to Common Stockholders Our Series A Preferred Stock is considered a participating security which requires the use of the two-class method for the computation of basic and diluted per share amounts. Under the two-class method, earnings available to common stockholders for the period are allocated between common stockholders and participating securities according to dividends accumulated and participation rights in undistributed earnings. Net loss attributable to common stockholders is not allocated to the convertible preferred stock as the holder of the Series A Preferred Stock does not have a contractual obligation to share in losses. Basic net loss attributable to common stockholders per share is computed by dividing net loss available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted net loss attributable to common stockholders per share is computed by dividing the net loss available to common stockholders for the period by the weighted average number of common and common equivalent shares outstanding during the period. Diluted net loss attributable to common stockholders per share reflects all potential dilutive common stock equivalent shares, including conversion of preferred stock, stock options, restricted stock units and shares to be issued under our employee stock purchase program. The following table sets forth the computation of basic and diluted net loss attributable to common stockholders per share (in thousands, except per share amounts): Three Months Ended Six Months Ended 2024 2023 2024 2023 Numerator: Net loss attributable to common stockholders $ (38,988) $ (32,915) $ (66,699) $ (60,963) Denominator: Shares used in per share calculation – basic 29,233 27,822 29,072 27,735 Dilutive effect of common stock — — — — Shares used in per share calculation – diluted 29,233 27,822 29,072 27,735 Net loss attributable to common stockholders per share – basic and diluted $ (1.33) $ (1.18) $ (2.29) $ (2.20) For each of the three and six months ended June 30, 2024 and 2023, we had securities outstanding that could potentially dilute net loss per share, but the shares from the assumed conversion or exercise of these securities were excluded in the computation of diluted net loss per share as their effect would have been anti-dilutive. The number of weighted-average outstanding anti-dilutive shares that were excluded from the computation of diluted net loss per share consisted of the following (in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Convertible preferred stock 3,521 3,318 3,495 3,288 Restricted stock units 1,910 3,129 2,138 2,369 Performance-based stock units 74 126 106 112 Common stock options 217 222 217 224 Employee stock purchase program 4 61 11 51 Total 5,726 6,856 5,967 6,044 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Service and Licensing Obligations We have entered into service and licensing agreements with third party vendors to provide various services, including network access, equipment maintenance and software licensing. As the benefits of these agreements are experienced uniformly over the applicable contractual periods, we record the related service and licensing expenses on a straight-line basis, although actual cash payment obligations under certain of these agreements fluctuate over the terms of the agreements. Our future minimum payments under non-cancellable contractual service and licensing obligations as of June 30, 2024 were as follows (in thousands): Year ending December 31, 2024 (remainder) $ 1,999 2025 1,141 2026 — 2027 — 2028 — Thereafter — Total $ 3,140 Operating Leases Refer to Note 10 – Leases for commitments related to our operating leases. Self-Insurance We provide comprehensive major medical benefits to our employees. Effective January 1, 2023, we began maintaining a substantial portion of our U.S. employee health insurance benefits on a self-insured basis with up to $0.3 million per individual per year and the current maximum claim liability as of June 30, 2024 is $22.5 million. As a result, we record a self-insurance liability based on claims filed and an estimate of claims incurred but not yet reported. As of June 30, 2024 and December 31, 2023, we had a self-insurance liability balance of $2.0 million and $2.5 million, respectively, in the “Accrued compensation and benefits” line on our Condensed Consolidated Balance Sheets. Contingencies From time to time, we receive inquiries from governmental bodies and also may be subject to various legal proceedings and claims arising in the ordinary course of business. We assess contingencies to determine the degree of probability and range of possible loss for potential accrual in our condensed consolidated financial statements. An estimated loss contingency is accrued in the condensed consolidated financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Legal proceedings or other contingencies could result in material costs, even if we ultimately prevail, and we may from time to time enter into settlements to resolve such litigation. Legal costs incurred in connection with the resolution of claims, lawsuits and other contingencies generally are expensed as incurred. There were no material litigation-related accruals recorded during the three and six months ended June 30, 2024 or 2023. |
Segment and Geographic Informat
Segment and Geographic Information | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information Operating Segments We report segment information based on how our chief executive officer, who is our CODM, regularly reviews our operating results, allocates resources and makes decisions regarding our business operations. We evaluate our business performance and manage our operations as two distinct operating segments: Medicare, and Employer and Individual. The performance measures of our segments include revenue and segment profit (loss). Please refer to Note 1 – Summary of Business and Significant Accounting Policies of the Notes to Consolidated Financial Statements in Part II, Item 8 of the Annual Report on Form 10-K for the year ended December 31, 2023 for our accounting policies relating to operating segments. Additionally, as indicated in Note 1 of this report, our results below reflect our updated methodology used in allocating certain expenses beginning in the first quarter of fiscal 2024, and results from the prior period presented have been recast to conform with the current period presentation. The results of our operating segments are summarized for the periods presented below (in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Revenue: Medicare $ 59,248 $ 55,430 $ 141,636 $ 117,264 Employer and Individual 6,608 11,338 17,184 23,227 Total revenue $ 65,856 $ 66,768 $ 158,820 $ 140,491 Segment profit (loss): Medicare $ 1,274 $ (2,062) $ 9,583 $ (2,648) Employer and Individual 890 6,888 5,542 14,562 Segment profit 2,164 4,826 15,125 11,914 Corporate (17,704) (19,634) (32,317) (39,377) Stock-based compensation expense (5,106) (6,193) (10,646) (11,187) Depreciation and amortization (4,278) (5,151) (8,684) (10,396) Impairment, restructuring and other charges (3,035) — (9,348) — Interest expense (2,849) (2,720) (5,658) (5,300) Other income, net 2,335 2,828 4,726 4,816 Loss before income taxes $ (28,473) $ (26,044) $ (46,802) $ (49,530) There were no inter-segment revenue transactions for the periods presented. With the exception of contract assets – commissions receivable, which is presented by segment in Note 3 – Supplemental Financial Statement Information , our CODM does not separately evaluate assets by segment, and therefore, assets by segment are not presented. Geographic Information Our long-lived assets primarily consist of property and equipment, net and internally developed software. Our long-lived assets are attributed to the geographic location in which they are located. Long-lived assets by geographical area are summarized as follows (in thousands): June 30, 2024 December 31, 2023 United States $ 26,515 $ 29,419 China 233 281 Total $ 26,748 $ 29,700 Significant Customers Substantially all revenue for the three and six months ended June 30, 2024 and 2023 was generated from customers located in the United States. Carriers representing 10% or more of our total revenue are summarized as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 Humana 29 % 28 % 27 % 27 % Aetna (1) 18 % 8 % 21 % 7 % UnitedHealthcare (1) 18 % 23 % 16 % 22 % ____________ (1) Percentages include the carriers’ subsidiaries. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | Leases Our lease portfolio primarily consists of operating leases for office space and our leases have remaining lease terms of less than 2 years to 6 years . Certain of these leases have free or escalating rent payment provisions. We recognize lease expense on a straight-line basis over the terms of the leases, although actual cash payment obligations under certain of these agreements fluctuate over the terms of the agreements. Most leases include options to renew, and the exercise of these options is at our discretion. Subsequent to becoming a remote first workplace in the third quarter of 2022, we executed several subleases of our office space in the United States. The subleases run through the remaining term of the primary leases. As of June 30, 2024, we expect to generate a total of $12.4 million in future sublease income through January 31, 2030. Sublease income is recorded on a straight-line basis as a reduction of lease expense in our Condensed Consolidated Statements of Comprehensive Loss. We test right-of-use assets when impairment indicators are present in accordance with the asset impairment provisions of Accounting Standards Codification 360, Property, Plant and Equipment. As part of our fiscal 2024 cost savings initiatives, we reassessed our occupied leased office space to identify excess space to vacate and potentially sublease. We also reassessed current market conditions in our previously vacated leased office spaces which have not yet been subleased. As a result, we determined impairment indicators were present and we performed impairment testing of our right-of-use assets. We utilized an income approach to value the asset groups by performing a discounted cash flow analysis and determined that the net carrying values exceeded the estimated discounted future cash flows expected to be derived from the properties based on Level 3 inputs, including current sublease market rent, future sublease market conditions and the discount rate. This resulted in $1.9 million and $7.4 million of impairment charges related to our operating lease right-of-use assets and property, plant and equipment, which was reflected in the “Impairment, restructuring and other charges” line in our Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2024, respectively. See Note 11 – Impairment, Restructuring and Other Charges for further discussion about our asset impairment charges. The components of operating lease costs for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Operating lease expense $ 1,434 $ 1,835 $ 3,170 $ 3,690 Operating sublease income (638) (577) (1,214) (1,153) Total operating lease cost $ 796 $ 1,258 $ 1,956 $ 2,537 Supplemental information related to our leases are as follows (dollars in thousands): Six Months Ended 2024 2023 Cash paid for amounts included in the measurement of operating lease liabilities $ 4,444 $ 4,369 June 30, 2024 December 31, 2023 Weighted-average remaining lease term (in years) of operating leases 4.4 4.8 Weighted-average discount rate used to recognize operating lease right-of-use-assets 5.7 % 5.7 % As of June 30, 2024, maturities of our operating lease liabilities are as follows (in thousands): Year ending December 31, 2024 (remainder) $ 4,448 2025 9,096 2026 7,591 2027 6,773 2028 4,998 Thereafter 3,204 Total lease payments (1) $ 36,110 Less imputed interest (4,370) Total $ 31,740 ____________ (1) Non-cancellable sublease proceeds for the remainder of 2024 and the years ending December 31, 2025, 2026, 2027, 2028 and thereafter of $1.2 million, $2.6 million, $2.7 million, $2.8 million, $2.8 million, and $1.0 million, respectively, are not included in the table above. |
Impairment, Restructuring and O
Impairment, Restructuring and Other Charges | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Impairment, Restructuring and Other Charges | Impairment, Restructuring and Other Charges The following table details impairment, restructuring and other charges for each of the periods presented (in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Asset impairment charges $ 1,921 $ — $ 7,413 $ — Restructuring and reorganization charges 1,114 — 1,935 — Impairment, restructuring and other charges $ 3,035 $ — $ 9,348 $ — Asset Impairment For the three and six months ended June 30, 2024, we recognized non-cash, pre-tax asset impairment charges of $1.9 million and $7.4 million, respectively, related to several of our leased office spaces in the “Impairment, restructuring and other charges” line in our Condensed Consolidated Statements of Comprehensive Loss. These charges were comprised of $1.8 million and $6.9 million of operating lease right-of-use asset impairments and $0.1 million and $0.5 million of property and equipment impairment for the three and six months ended June 30, 2024, respectively. Refer to Note 10 – Leases for additional information related to our lease impairment charges. Restructuring Our restructuring and reorganization costs and liabilities consist primarily of severance, transition and other related costs. The following table summarizes the cash-based restructuring and reorganization related liabilities (in thousands): Balance at December 31, 2023 $ — Restructuring and reorganization charges 1,935 Payments (1,785) Balance at June 30, 2024 $ 150 During the three and six months ended June 30, 2024, we recognized $1.1 million and $1.9 million of pre-tax restructuring charges in the “Impairment, restructuring and other charges” line in our Condensed Consolidated Statements of Comprehensive Loss, primarily related to employee termination benefits as a result of our cost-reduction efforts. Substantially all of the restructuring charges are expected to be settled in cash and no equity awards were modified. As of June 30, 2024, we had a $0.2 million restructuring accrual on our Condensed Consolidated Balance Sheet. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt On February 28, 2022, we entered into a term loan credit agreement with Blue Torch Finance LLC, as administrative agent and collateral agent, and other lenders party thereto (the “Original Credit Agreement”). On August 16, 2022, we entered into an amendment (the “Amendment”) to the Original Credit Agreement (as amended by the Amendment, the “Credit Agreement”). The Amendment replaced the LIBOR-based Adjusted Euro currency Rate (as defined in the Original Credit Agreement) with Adjusted Term SOFR (as defined in the Amendment) as a reference rate for loans under the Credit Agreement. The proceeds of the loans under the Credit Agreement may be used for working capital and general corporate purposes, to refinance our credit agreement with Royal Bank of Canada (“RBC”) and to pay fees and expenses in connection with the entry into the Credit Agreement. The Credit Agreement provides for a $70.0 million secured term loan credit facility. We incurred closing costs totaling $5.1 million, which were recorded as a direct deduction from the face amount of the loan on our Condensed Consolidated Balance Sheets. Total amortization of closing costs, or debt issuance costs, was $0.5 million and $0.9 million for the three and six months ended June 30, 2024, respectively, and $0.4 million and $0.8 million for the three and six months ended June 30, 2023, respectively, and is recorded in the “Interest expense” line in our Condensed Consolidated Statements of Comprehensive Loss. There were $1.3 million of unamortized issuance costs as of June 30, 2024. The carrying value of the term loan approximates the fair value, based on Level 2 inputs (observable market prices in less than active markets), as the interest rate is variable over the selected interest period and is similar to current rates at which we can borrow funds. The carrying value of the loan was $68.7 million as of June 30, 2024. The Original Credit Agreement bore interest, at our option, at either a rate based on the LIBOR for the applicable interest period or a base rate, in each case plus a margin. The base rate was the highest of the prime rate, the federal funds rates plus 0.50% and one month adjusted LIBOR plus 1.00%. The margin was 7.50% for LIBOR loans and 6.50% for base rate loans. After the Amendment, the loans under the Credit Agreement bear interest, at our option, at either a rate based on the Adjusted Term SOFR or a base rate, in each case plus a margin. The base rate is the highest of the prime rate, the federal funds rate plus 0.50% and three-month Adjusted Term SOFR plus 1.00%. The margin is 7.50% for Adjusted Term SOFR loans and 6.50% for base rate loans. As of June 30, 2024, the interest rate was 13.11% . For the three and six months ended June 30, 2024 we incurred interest expense of $2.3 million and $4.6 million, respectively. For the three and six months ended June 30, 2023 we incurred interest expense of $2.2 million and $4.4 million , respectively. Furthermore, as part of the Credit Agreement, we incur a $0.3 million fee per annum, payable annually. The outstanding obligations under the Credit Agreement are payable in full on the maturity date. The Credit Agreement matures in February 2025. We have the right to prepay the loans under the Credit Agreement in whole or in part at any time, subject, in the case of certain mandatory prepayments or any voluntary prepayment of the loans under the Credit Agreement after February 28, 2023, to an exit fee, which right we did not exercise. Our obligations under the Credit Agreement are guaranteed by certain of our material domestic subsidiaries and substantially all of our assets and the assets of such guarantors, in each case, subject to customary exclusion. Financial covenants in the Credit Agreement require that we maintain Liquidity (as defined in the Credit Agreement) at or above $25.0 million as of the last calendar day of any month. The Credit Agreement also requires that the outstanding amount as of the last calendar day of any month be less than 50% of our total contract assets - commissions receivable (i.e., both current and non-current commissions receivable). As of June 30, 2024, we were in compliance with our loan covenants. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table summarizes our benefit from income taxes and our effective tax rates for the periods presented below (in thousands, except effective tax rate): Three Months Ended Six Months Ended 2024 2023 2024 2023 Loss before income taxes $ (28,473) $ (26,044) $ (46,802) $ (49,530) Benefit from income taxes (505) (2,543) (1,850) (6,151) Effective tax rate 1.8 % 9.8 % 4.0 % 12.4 % Our provision for income taxes during interim reporting periods has historically been calculated by applying an estimate of the annual effective tax rate to income (loss) before income taxes for the reporting period. Although we believe the use of the annual effective tax rate method to be appropriate for prior interim reporting periods, for the three and six months ended June 30, 2024, we applied the actual effective tax rate, which reflects the actual taxes attributable to year-to-date losses, as allowed by ASC 740-270 “Income Taxes, Interim Reporting.” We determined that since minor changes in estimated income or loss for fiscal 2024 would result in significant changes in the estimated annual effective tax rate, the actual effective tax rate method would provide a more reliable estimate for the three and six months ended June 30, 2024. For the three and six months ended June 30, 2024, we recognized a benefit from income taxes of $0.5 million and $1.9 million, respectively, representing an effective tax rate of 1.8% and 4.0%, respectively, which was lower than the statutory federal tax rate primarily due to stock-based compensation adjustments, non-deductible lobbying expenses, and changes in our valuation allowance, partially offset by research and development credits and state taxes. For the three and six months ended June 30, 2023, we recognized a benefit from income taxes of $2.5 million and $6.2 million, respectively, representing an effective tax rate of 9.8% and 12.4%, respectively, which was lower than the statutory federal tax rate primarily due to stock-based compensation adjustments and non-deductible lobbying expenses, partially offset by research and development credits and state taxes. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||||
Net loss | $ (27,968) | $ (16,984) | $ (23,501) | $ (19,878) | $ (44,952) | $ (43,379) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Business and Signi_2
Summary of Business and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business – eHealth, Inc., a Delaware corporation, and its consolidated subsidiaries (collectively, “eHealth”) is a leading private online health insurance marketplace with a technology and service platform that provides consumer engagement, education and health insurance enrollment solutions. Our mission is to expertly guide consumers through their health insurance enrollment and related options, when, where and how they prefer. Our platform leverages technology to solve a critical problem in a large and growing market by aiding consumers in what has traditionally been a complex, confusing, and opaque health insurance purchasing process. Our omnichannel consumer engagement platform differentiates our offering from other brokers and enables consumers to use our services online, by telephone with a licensed insurance agent, or benefit advisor, or through a hybrid online assisted interaction that includes live agent chat and co-browsing capabilities. We have created a consumer-centric marketplace that offers consumers a broad choice of insurance products that includes thousands of Medicare Advantage, Medicare Supplement, Medicare Part D prescription drug, individual, family, small business and other ancillary health insurance products from over 180 health insurance carriers nationwide. Our plan recommendation tool curates this broad plan selection by analyzing customer health-related information against plan data for insurance coverage fit. This tool is supported by a unified data platform and is available to our ecommerce customers and our benefit advisors. We strive to be the most trusted partner to the consumer in their life’s journey through the health insurance market. |
Basis of Presentation | Basis of Presentation – The accompanying Condensed Consolidated Balance Sheet as of June 30, 2024 and other condensed consolidated financial statements for the three and six months ended June 30, 2024 and 2023 are unaudited. The Condensed Consolidated Balance Sheet as of December 31, 2023 was derived from the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the Securities and Exchange Commission on February 29, 2024. The accompanying financial statements and related notes should be read in conjunction with the audited consolidated financial statements and related notes included 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 (“U.S. GAAP”) for interim financial information and reflect all normal recurring adjustments that are necessary to present fairly the results for the interim periods presented. The condensed consolidated financial statements include the accounts of eHealth, Inc. and its direct and indirect wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted in accordance with those rules and regulations. Certain prior period amounts have been reclassified to conform with our current period presentation. 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, 2023 and include all adjustments necessary for the fair presentation of our financial position as of June 30, 2024 and December 31, 2023 and our results of operations for the periods presented. The results for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for any subsequent period or for the year ending December 31, 2024 and therefore, should not be relied upon as an indicator of future results. Beginning in the first quarter of 2024, primarily as a result of vacating excess office space, we modified our methodology used in allocating certain expenses for the purpose of evaluating financial and segment performance and resource allocation. Specifically, we no longer allocate our facilities-related expenses, and as a result, these costs are now reported within the “General and administrative” line in our Condensed Consolidated Statements of Comprehensive Loss and within Corporate for our segment profit (loss). We have recast the Condensed Consolidated Statements of Comprehensive Loss and our segment profit (loss) for the prior periods presented to conform to our current methodology. This resulted in a classification change of expenses from marketing and advertising, customer care and enrollment, and technology and content into general and administrative. Additionally, our segment profit (loss) no longer includes our facilities allocation to each of our segments and instead, these costs are included within Corporate. There was no impact to total operating costs and expenses, loss from operations, net loss or net loss per share attributable to common stockholders on our Condensed Consolidated Statements of Comprehensive Loss. |
Significant Accounting Policies, Estimates and Judgments | Significant Accounting Policies, Estimates and Judgments – |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements We did not adopt any new accounting pronouncements during the six months ended June 30, 2024. Recently Issued Accounting Pronouncements Not Yet Adopted Segment Reporting (Topic 280) — In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of a segment’s profit or loss. The ASU is effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024. Adoption of the ASU should be applied retrospectively to all prior periods presented in the financial statements and early adoption is permitted. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and related disclosures. Income Taxes (Topic 740) — In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as additional disclosure on income taxes paid. The ASU is effective on a prospective basis for fiscal years beginning after December 15, 2024 for public entities and early adoption is permitted. We are currently evaluating the impact of adopting of this ASU on our consolidated financial statements and related disclosures. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue by Segment | The table below depicts the disaggregation of revenue by product and is consistent with how we evaluate our financial performance (in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Medicare Medicare Advantage $ 42,168 $ 45,389 $ 104,164 $ 99,510 Medicare Supplement 4,045 1,091 9,523 5,156 Medicare Part D 2,710 1,863 5,395 2,640 Total Medicare 48,923 48,343 119,082 107,306 Individual and Family (1) Non-Qualified Health Plans 388 2,989 2,033 5,344 Qualified Health Plans 710 1,752 2,756 3,403 Total Individual and Family 1,098 4,741 4,789 8,747 Ancillary Short-term 1,043 572 1,431 1,556 Dental 524 958 1,401 1,668 Vision 302 276 991 486 Other 686 715 1,420 1,233 Total Ancillary 2,555 2,521 5,243 4,943 Small Business 2,563 3,800 6,179 8,673 Commission Bonus and Other 1,708 781 2,481 (1,480) Total Commission Revenue 56,847 60,186 137,774 128,189 Other Revenue Sponsorship and Advertising Revenue 5,478 5,554 15,667 9,574 Other 3,531 1,028 5,379 2,728 Total Other Revenue 9,009 6,582 21,046 12,302 Total Revenue $ 65,856 $ 66,768 $ 158,820 $ 140,491 _____________ (1) We define our individual and family plan offerings as major medical individual and family health insurance plans, which do 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 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 do not meet the requirements of the Affordable Care Act and are not offered through the government-run health insurance exchange in the relevant jurisdiction. Individuals that purchase non-qualified health plans cannot receive a subsidy in connection with the purchase of non-qualified plans. Commission revenue by segment is presented in the table below (in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Medicare Commission revenue from members approved during the period $ 39,941 $ 36,006 $ 109,693 $ 92,623 Net commission revenue from members approved in prior periods (1) 10,681 13,403 11,683 13,455 Total Medicare segment commission revenue $ 50,622 $ 49,409 $ 121,376 $ 106,078 Employer and Individual Commission revenue from members approved during the period $ 3,265 $ 3,298 $ 8,942 $ 10,006 Commission revenue from renewals of small business members during the period 2,142 2,158 5,170 5,271 Net commission revenue from members approved in prior periods (1) 818 5,321 2,286 6,834 Total Employer and Individual segment commission revenue $ 6,225 $ 10,777 $ 16,398 $ 22,111 Total commission revenue from members approved during the period $ 43,206 $ 39,304 $ 118,635 $ 102,629 Commission revenue from renewals of small business members during the period 2,142 2,158 5,170 5,271 Total net commission revenue from members approved in prior periods (1)(2) 11,499 18,724 13,969 20,289 Total commission revenue $ 56,847 $ 60,186 $ 137,774 $ 128,189 _____________ (1) These amounts reflect our revised estimates of cash collections for certain members approved prior to the relevant reporting period that are recognized as adjustments to revenue within the relevant reporting period. The net commission revenue from members approved in prior periods, or the net adjustment revenue, includes both increases as well as reductions in revenue for certain prior period cohorts. (2) The after-tax impact of total net commission revenue from members approved in prior periods for the three months ended June 30, 2024 and 2023 was $0.30 and $0.51 per basic and diluted share, respectively. The after-tax impact of total net commission revenue from members approved in prior periods for the six months ended June 30, 2024 and 2023 was $0.36 and $0.56 per basic and diluted share, respectively. The total reductions to revenue from members approved in prior periods were $3.1 million and $2.9 million for the three months ended June 30, 2024 and 2023, respectively, and $3.6 million and $2.9 million for the six months ended June 30, 2024 and 2023, respectively. These reductions to revenue primarily relate to the Medicare segment. |
Supplemental Financial Statem_2
Supplemental Financial Statement Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Cash and Cash Equivalents | Our cash, cash equivalents and restricted cash balances are summarized as follows (in thousands): June 30, 2024 December 31, 2023 Cash $ 9,994 $ 7,114 Cash equivalents 116,350 108,608 Cash and cash equivalents 126,344 115,722 Restricted cash 3,090 3,090 Total cash, cash equivalents and restricted cash $ 129,434 $ 118,812 |
Schedule of Restricted Cash | Our cash, cash equivalents and restricted cash balances are summarized as follows (in thousands): June 30, 2024 December 31, 2023 Cash $ 9,994 $ 7,114 Cash equivalents 116,350 108,608 Cash and cash equivalents 126,344 115,722 Restricted cash 3,090 3,090 Total cash, cash equivalents and restricted cash $ 129,434 $ 118,812 |
Schedule of Change in Allowance for Credit Loss | The change in the allowance for credit losses is summarized as follows (in thousands): June 30, 2024 December 31, 2023 Beginning balance $ 2,118 $ 2,398 Change in allowance (393) (280) Ending balance $ 1,725 $ 2,118 |
Schedule of Contract Assets - Commissions Receivable | Our contract assets – commissions receivable activities, net of credit loss allowances, are summarized as follows (in thousands): Medicare Segment E&I Segment Total Beginning balance at December 31, 2023 $ 847,332 $ 70,845 $ 918,177 Commission revenue from members approved during the period 109,693 8,942 118,635 Commission revenue from renewals of small business members during the period — 5,170 5,170 Net commission revenue from members approved in prior periods 11,683 2,286 13,969 Cash receipts (204,533) (19,937) (224,470) Net change in credit loss allowance 361 32 393 Ending balance at June 30, 2024 $ 764,536 $ 67,338 $ 831,874 |
Schedule of Credit Risk | Carriers that represented 10% or more of our total contract assets – commissions receivable and accounts receivable balances are summarized as follows: June 30, 2024 December 31, 2023 Humana 29 % 27 % UnitedHealthcare (1) 27 % 26 % Aetna (1) 17 % 16 % _____________ (1) Percentages include the carriers’ subsidiaries. |
Schedule of Prepaid Expenses and Other Current Assets | Our prepaid expenses and other current assets are summarized as follows (in thousands): June 30, 2024 December 31, 2023 Prepaid software and maintenance contracts $ 4,251 $ 5,328 Prepaid expenses 2,230 1,808 Prepaid licenses 1,609 2,739 Prepaid insurance 415 1,436 Other current assets 793 733 Prepaid expenses and other current assets $ 9,298 $ 12,044 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of 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; unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability. Level 3 Unobservable inputs for the asset or liability. |
Schedule of Financial Assets Measured at Fair Value on a Recurring Basis | Our financial assets measured at fair value on a recurring basis are summarized below by their classification within the fair value hierarchy as follows (in thousands): June 30, 2024 Carrying Value Level 1 Level 2 Level 3 Total Assets Cash equivalents Money market funds $ 10,656 $ 10,656 $ — $ — $ 10,656 Commercial paper 94,706 — 94,706 — 94,706 Agency bonds 10,988 — 10,988 — 10,988 Short-term marketable securities Commercial paper 12,822 — 12,822 — 12,822 Agency bonds 11,899 — 11,899 — 11,899 Total assets measured at fair value $ 141,071 $ 10,656 $ 130,415 $ — $ 141,071 December 31, 2023 Carrying Value Level 1 Level 2 Level 3 Total Assets Cash equivalents Money market funds $ 11,576 $ 11,576 $ — $ — $ 11,576 Commercial paper 86,090 — 86,090 — 86,090 Agency bonds 10,942 — 10,942 — 10,942 Short-term marketable securities Agency bonds 5,930 — 5,930 — 5,930 Total assets measured at fair value $ 114,538 $ 11,576 $ 102,962 $ — $ 114,538 |
Schedule of Cash Equivalents and Available for Sale Debt Securities by Contractual Maturity | The following table summarizes our cash equivalents and available for sale debt securities by contractual maturity (in thousands): As of June 30, 2024 As of December 31, 2023 Amortized Cost Fair Value Amortized Cost Fair Value Due in 1 year $ 141,132 $ 141,071 $ 114,577 $ 114,538 |
Schedule of Unrealized Gains and Losses on Available for Sale Debt Securities | Unrealized gains and losses on available for sale debt securities that are not credit related are included in accumulated other comprehensive loss and summarized as follows (in thousands): June 30, 2024 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents Money market funds $ 10,656 $ — $ — $ 10,656 Commercial paper 94,755 — (49) 94,706 Agency bonds 10,988 — — 10,988 Short-term marketable securities Commercial paper 12,834 — (12) 12,822 Agency bonds 11,899 — — 11,899 Total $ 141,132 $ — $ (61) $ 141,071 December 31, 2023 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents Money market funds $ 11,576 $ — $ — $ 11,576 Commercial paper 86,132 — (42) 86,090 Agency bonds 10,940 2 — 10,942 Short-term marketable securities Agency bonds 5,929 1 — 5,930 Total $ 114,577 $ 3 $ (42) $ 114,538 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock-Based Compensation Expense by Award Type | Our stock-based compensation expense is summarized as follows by award types for the periods presented below (in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Restricted stock units $ 4,296 $ 4,934 $ 8,932 $ 9,007 Performance-based stock units 467 850 874 1,454 Common stock options 343 312 743 566 Employee stock purchase program — 97 97 160 Total stock-based compensation expense $ 5,106 $ 6,193 $ 10,646 $ 11,187 Related tax benefit recognized $ 1,255 $ 1,452 $ 2,612 $ 2,619 |
Schedule of Stock-Based Compensation Expense by Operating Function | The following table summarizes stock-based compensation expense by operating function for the periods presented below (in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Marketing and advertising $ 711 $ 538 $ 1,355 $ 993 Customer care and enrollment 511 788 1,035 1,393 Technology and content 779 1,173 1,753 2,078 General and administrative 3,105 3,694 6,503 6,723 Total stock-based compensation expense $ 5,106 $ 6,193 $ 10,646 $ 11,187 Amount capitalized for internal-use software 202 325 380 637 Total stock-based compensation $ 5,308 $ 6,518 $ 11,026 $ 11,824 |
Convertible Preferred Stock (Ta
Convertible Preferred Stock (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Temporary Equity Disclosure [Abstract] | |
Schedule of Proceeds and Changes to Preferred Stock | The following table summarizes the proceeds and changes to our Series A Preferred Stock (in thousands): Gross proceeds $ 225,000 Less: issuance costs (10,975) Net proceeds $ 214,025 Balance as of December 31, 2023 $ 298,053 Accrued paid-in-kind dividends 8,220 Change in preferred stock redemption value 10,787 Balance as of June 30, 2024 $ 317,060 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Loss Per Share | The following table sets forth the computation of basic and diluted net loss attributable to common stockholders per share (in thousands, except per share amounts): Three Months Ended Six Months Ended 2024 2023 2024 2023 Numerator: Net loss attributable to common stockholders $ (38,988) $ (32,915) $ (66,699) $ (60,963) Denominator: Shares used in per share calculation – basic 29,233 27,822 29,072 27,735 Dilutive effect of common stock — — — — Shares used in per share calculation – diluted 29,233 27,822 29,072 27,735 Net loss attributable to common stockholders per share – basic and diluted $ (1.33) $ (1.18) $ (2.29) $ (2.20) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The number of weighted-average outstanding anti-dilutive shares that were excluded from the computation of diluted net loss per share consisted of the following (in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Convertible preferred stock 3,521 3,318 3,495 3,288 Restricted stock units 1,910 3,129 2,138 2,369 Performance-based stock units 74 126 106 112 Common stock options 217 222 217 224 Employee stock purchase program 4 61 11 51 Total 5,726 6,856 5,967 6,044 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments Under Non-Cancellable Contractual Service and Licensing Obligations | Our future minimum payments under non-cancellable contractual service and licensing obligations as of June 30, 2024 were as follows (in thousands): Year ending December 31, 2024 (remainder) $ 1,999 2025 1,141 2026 — 2027 — 2028 — Thereafter — Total $ 3,140 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segments | The results of our operating segments are summarized for the periods presented below (in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Revenue: Medicare $ 59,248 $ 55,430 $ 141,636 $ 117,264 Employer and Individual 6,608 11,338 17,184 23,227 Total revenue $ 65,856 $ 66,768 $ 158,820 $ 140,491 Segment profit (loss): Medicare $ 1,274 $ (2,062) $ 9,583 $ (2,648) Employer and Individual 890 6,888 5,542 14,562 Segment profit 2,164 4,826 15,125 11,914 Corporate (17,704) (19,634) (32,317) (39,377) Stock-based compensation expense (5,106) (6,193) (10,646) (11,187) Depreciation and amortization (4,278) (5,151) (8,684) (10,396) Impairment, restructuring and other charges (3,035) — (9,348) — Interest expense (2,849) (2,720) (5,658) (5,300) Other income, net 2,335 2,828 4,726 4,816 Loss before income taxes $ (28,473) $ (26,044) $ (46,802) $ (49,530) |
Schedule of Long-Lived Assets by Geographical Areas | Long-lived assets by geographical area are summarized as follows (in thousands): June 30, 2024 December 31, 2023 United States $ 26,515 $ 29,419 China 233 281 Total $ 26,748 $ 29,700 |
Schedule of Revenue by Major Customers | Carriers representing 10% or more of our total revenue are summarized as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 Humana 29 % 28 % 27 % 27 % Aetna (1) 18 % 8 % 21 % 7 % UnitedHealthcare (1) 18 % 23 % 16 % 22 % ____________ (1) Percentages include the carriers’ subsidiaries. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of Components of Operating Lease Costs and Supplemental Information Related to Operating Leases | The components of operating lease costs for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Operating lease expense $ 1,434 $ 1,835 $ 3,170 $ 3,690 Operating sublease income (638) (577) (1,214) (1,153) Total operating lease cost $ 796 $ 1,258 $ 1,956 $ 2,537 Supplemental information related to our leases are as follows (dollars in thousands): Six Months Ended 2024 2023 Cash paid for amounts included in the measurement of operating lease liabilities $ 4,444 $ 4,369 June 30, 2024 December 31, 2023 Weighted-average remaining lease term (in years) of operating leases 4.4 4.8 Weighted-average discount rate used to recognize operating lease right-of-use-assets 5.7 % 5.7 % |
Schedule of Maturities of Operating Lease Liabilities | As of June 30, 2024, maturities of our operating lease liabilities are as follows (in thousands): Year ending December 31, 2024 (remainder) $ 4,448 2025 9,096 2026 7,591 2027 6,773 2028 4,998 Thereafter 3,204 Total lease payments (1) $ 36,110 Less imputed interest (4,370) Total $ 31,740 ____________ (1) Non-cancellable sublease proceeds for the remainder of 2024 and the years ending December 31, 2025, 2026, 2027, 2028 and thereafter of $1.2 million, $2.6 million, $2.7 million, $2.8 million, $2.8 million, and $1.0 million, respectively, are not included in the table above. |
Impairment, Restructuring and_2
Impairment, Restructuring and Other Charges (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Impairment, Restructuring and Other Charges | The following table details impairment, restructuring and other charges for each of the periods presented (in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Asset impairment charges $ 1,921 $ — $ 7,413 $ — Restructuring and reorganization charges 1,114 — 1,935 — Impairment, restructuring and other charges $ 3,035 $ — $ 9,348 $ — |
Schedule of Cash-Based Restructuring and Reorganization Related Liabilities | The following table summarizes the cash-based restructuring and reorganization related liabilities (in thousands): Balance at December 31, 2023 $ — Restructuring and reorganization charges 1,935 Payments (1,785) Balance at June 30, 2024 $ 150 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Benefit from Income Taxes and Effective Tax Rates | The following table summarizes our benefit from income taxes and our effective tax rates for the periods presented below (in thousands, except effective tax rate): Three Months Ended Six Months Ended 2024 2023 2024 2023 Loss before income taxes $ (28,473) $ (26,044) $ (46,802) $ (49,530) Benefit from income taxes (505) (2,543) (1,850) (6,151) Effective tax rate 1.8 % 9.8 % 4.0 % 12.4 % |
Summary of Business and Signi_3
Summary of Business and Significant Accounting Policies (Details) | Jun. 30, 2024 insurance_carrier |
Accounting Policies [Abstract] | |
Number of health insurance carriers (more than) | 180 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 65,856 | $ 66,768 | $ 158,820 | $ 140,491 |
Medicare | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 48,923 | 48,343 | 119,082 | 107,306 |
Medicare | Medicare Advantage | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 42,168 | 45,389 | 104,164 | 99,510 |
Medicare | Medicare Supplement | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 4,045 | 1,091 | 9,523 | 5,156 |
Medicare | Medicare Part D | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 2,710 | 1,863 | 5,395 | 2,640 |
Individual and Family | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,098 | 4,741 | 4,789 | 8,747 |
Individual and Family | Non-Qualified Health Plans | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 388 | 2,989 | 2,033 | 5,344 |
Individual and Family | Qualified Health Plans | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 710 | 1,752 | 2,756 | 3,403 |
Ancillary | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 2,555 | 2,521 | 5,243 | 4,943 |
Ancillary | Short-term | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,043 | 572 | 1,431 | 1,556 |
Ancillary | Dental | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 524 | 958 | 1,401 | 1,668 |
Ancillary | Vision | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 302 | 276 | 991 | 486 |
Ancillary | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 686 | 715 | 1,420 | 1,233 |
Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 2,563 | 3,800 | 6,179 | 8,673 |
Commission Bonus and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,708 | 781 | 2,481 | (1,480) |
Total Commission Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 56,847 | 60,186 | 137,774 | 128,189 |
Other Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 9,009 | 6,582 | 21,046 | 12,302 |
Other Revenue | Sponsorship and Advertising Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 5,478 | 5,554 | 15,667 | 9,574 |
Other Revenue | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 3,531 | $ 1,028 | $ 5,379 | $ 2,728 |
Revenue - Commission Revenue by
Revenue - Commission Revenue by Segment (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 65,856 | $ 66,768 | $ 158,820 | $ 140,491 |
Basic (in dollars per share) | $ (1.33) | $ (1.18) | $ (2.29) | $ (2.20) |
Diluted (in dollars per share) | $ (1.33) | $ (1.18) | $ (2.29) | $ (2.20) |
Commission | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 56,847 | $ 60,186 | $ 137,774 | $ 128,189 |
Commission revenue from members approved during the period | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 43,206 | 39,304 | 118,635 | 102,629 |
Commission revenue from renewals of small business members during the period | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 2,142 | 2,158 | 5,170 | 5,271 |
Total net commission revenue from members approved in prior periods | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 11,499 | $ 18,724 | $ 13,969 | $ 20,289 |
Basic (in dollars per share) | $ 0.30 | $ 0.51 | $ 0.36 | $ 0.56 |
Diluted (in dollars per share) | $ 0.30 | $ 0.51 | $ 0.36 | $ 0.56 |
Change in revenue | $ (3,100) | $ (2,900) | $ (3,600) | $ (2,900) |
Medicare | Commission | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 50,622 | 49,409 | 121,376 | 106,078 |
Medicare | Commission revenue from members approved during the period | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 39,941 | 36,006 | 109,693 | 92,623 |
Medicare | Commission revenue from renewals of small business members during the period | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | |||
Medicare | Total net commission revenue from members approved in prior periods | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 10,681 | 13,403 | 11,683 | 13,455 |
Employer and Individual | Commission | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 6,225 | 10,777 | 16,398 | 22,111 |
Employer and Individual | Commission revenue from members approved during the period | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 3,265 | 3,298 | 8,942 | 10,006 |
Employer and Individual | Commission revenue from renewals of small business members during the period | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 2,142 | 2,158 | 5,170 | 5,271 |
Employer and Individual | Total net commission revenue from members approved in prior periods | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 818 | $ 5,321 | $ 2,286 | $ 6,834 |
Supplemental Financial Statem_3
Supplemental Financial Statement Information - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Balance Sheet Related Disclosures [Abstract] | ||||
Cash | $ 9,994 | $ 7,114 | ||
Cash equivalents | 116,350 | 108,608 | ||
Cash and cash equivalents | 126,344 | 115,722 | ||
Restricted cash | 3,090 | 3,090 | ||
Total cash, cash equivalents and restricted cash | $ 129,434 | $ 118,812 | $ 156,424 | $ 147,640 |
Supplemental Financial Statem_4
Supplemental Financial Statement Information - Narrative (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Cash and Cash Equivalents [Line Items] | ||
Restricted cash | $ 3,090,000 | $ 3,090,000 |
Write-off | 0 | $ 0 |
China | ||
Cash and Cash Equivalents [Line Items] | ||
Deposits | $ 2,800,000 |
Supplemental Financial Statem_5
Supplemental Financial Statement Information - Schedule of Change in Allowance for Credit Loss (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Contract with Customer, Asset, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 2,118 | $ 2,398 |
Change in allowance | (393) | (280) |
Ending balance | $ 1,725 | $ 2,118 |
Supplemental Financial Statem_6
Supplemental Financial Statement Information - Schedule of Contract Assets - Commissions Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Change in Contract with Customer, Asset [Roll Forward] | ||||
Beginning balance | $ 918,177 | |||
Total revenue | $ 65,856 | $ 66,768 | 158,820 | $ 140,491 |
Cash receipts | (224,470) | |||
Net change in credit loss allowance | 393 | |||
Ending balance | 831,874 | 831,874 | ||
Medicare Segment | ||||
Change in Contract with Customer, Asset [Roll Forward] | ||||
Beginning balance | 847,332 | |||
Cash receipts | (204,533) | |||
Net change in credit loss allowance | 361 | |||
Ending balance | 764,536 | 764,536 | ||
E&I Segment | ||||
Change in Contract with Customer, Asset [Roll Forward] | ||||
Beginning balance | 70,845 | |||
Cash receipts | (19,937) | |||
Net change in credit loss allowance | 32 | |||
Ending balance | 67,338 | 67,338 | ||
Commission revenue from members approved during the period | ||||
Change in Contract with Customer, Asset [Roll Forward] | ||||
Total revenue | 43,206 | 39,304 | 118,635 | 102,629 |
Commission revenue from members approved during the period | Medicare Segment | ||||
Change in Contract with Customer, Asset [Roll Forward] | ||||
Total revenue | 39,941 | 36,006 | 109,693 | 92,623 |
Commission revenue from members approved during the period | E&I Segment | ||||
Change in Contract with Customer, Asset [Roll Forward] | ||||
Total revenue | 3,265 | 3,298 | 8,942 | 10,006 |
Commission revenue from renewals of small business members during the period | ||||
Change in Contract with Customer, Asset [Roll Forward] | ||||
Total revenue | 2,142 | 2,158 | 5,170 | 5,271 |
Commission revenue from renewals of small business members during the period | Medicare Segment | ||||
Change in Contract with Customer, Asset [Roll Forward] | ||||
Total revenue | 0 | |||
Commission revenue from renewals of small business members during the period | E&I Segment | ||||
Change in Contract with Customer, Asset [Roll Forward] | ||||
Total revenue | 2,142 | 2,158 | 5,170 | 5,271 |
Net commission revenue from members approved in prior periods | ||||
Change in Contract with Customer, Asset [Roll Forward] | ||||
Total revenue | 11,499 | 18,724 | 13,969 | 20,289 |
Net commission revenue from members approved in prior periods | Medicare Segment | ||||
Change in Contract with Customer, Asset [Roll Forward] | ||||
Total revenue | 10,681 | 13,403 | 11,683 | 13,455 |
Net commission revenue from members approved in prior periods | E&I Segment | ||||
Change in Contract with Customer, Asset [Roll Forward] | ||||
Total revenue | $ 818 | $ 5,321 | $ 2,286 | $ 6,834 |
Supplemental Financial Statem_7
Supplemental Financial Statement Information - Schedule of Credit Risk (Details) - Customer Concentration Risk - Accounts Receivable | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Humana | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 29% | 27% |
UnitedHealthCare | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 27% | 26% |
Aetna | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 17% | 16% |
Supplemental Financial Statem_8
Supplemental Financial Statement Information - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid software and maintenance contracts | $ 4,251 | $ 5,328 |
Prepaid expenses | 2,230 | 1,808 |
Prepaid licenses | 1,609 | 2,739 |
Prepaid insurance | 415 | 1,436 |
Other current assets | 793 | 733 |
Prepaid expenses and other current assets | $ 9,298 | $ 12,044 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets | ||
Short-term marketable securities | $ 24,721 | $ 5,930 |
Commercial paper | ||
Assets | ||
Short-term marketable securities | 12,822 | |
Agency bonds | ||
Assets | ||
Short-term marketable securities | 11,899 | 5,930 |
Recurring | Level 1 | ||
Assets | ||
Total assets measured at fair value | 10,656 | 11,576 |
Recurring | Level 2 | ||
Assets | ||
Total assets measured at fair value | 130,415 | 102,962 |
Recurring | Level 3 | ||
Assets | ||
Total assets measured at fair value | 0 | 0 |
Recurring | Carrying Value | ||
Assets | ||
Total assets measured at fair value | 141,071 | 114,538 |
Recurring | Fair Value | ||
Assets | ||
Total assets measured at fair value | 141,071 | 114,538 |
Recurring | Commercial paper | Level 1 | ||
Assets | ||
Short-term marketable securities | 0 | |
Recurring | Commercial paper | Level 2 | ||
Assets | ||
Short-term marketable securities | 12,822 | |
Recurring | Commercial paper | Level 3 | ||
Assets | ||
Short-term marketable securities | 0 | |
Recurring | Commercial paper | Carrying Value | ||
Assets | ||
Short-term marketable securities | 12,822 | |
Recurring | Commercial paper | Fair Value | ||
Assets | ||
Short-term marketable securities | 12,822 | |
Recurring | Agency bonds | Level 1 | ||
Assets | ||
Short-term marketable securities | 0 | 0 |
Recurring | Agency bonds | Level 2 | ||
Assets | ||
Short-term marketable securities | 11,899 | 5,930 |
Recurring | Agency bonds | Level 3 | ||
Assets | ||
Short-term marketable securities | 0 | 0 |
Recurring | Agency bonds | Carrying Value | ||
Assets | ||
Short-term marketable securities | 11,899 | 5,930 |
Recurring | Agency bonds | Fair Value | ||
Assets | ||
Short-term marketable securities | 11,899 | 5,930 |
Recurring | Money market funds | Level 1 | ||
Assets | ||
Cash equivalents | 10,656 | 11,576 |
Recurring | Money market funds | Level 2 | ||
Assets | ||
Cash equivalents | 0 | 0 |
Recurring | Money market funds | Level 3 | ||
Assets | ||
Cash equivalents | 0 | 0 |
Recurring | Money market funds | Carrying Value | ||
Assets | ||
Cash equivalents | 10,656 | 11,576 |
Recurring | Money market funds | Fair Value | ||
Assets | ||
Cash equivalents | 10,656 | 11,576 |
Recurring | Commercial paper | Level 1 | ||
Assets | ||
Cash equivalents | 0 | 0 |
Recurring | Commercial paper | Level 2 | ||
Assets | ||
Cash equivalents | 94,706 | 86,090 |
Recurring | Commercial paper | Level 3 | ||
Assets | ||
Cash equivalents | 0 | 0 |
Recurring | Commercial paper | Carrying Value | ||
Assets | ||
Cash equivalents | 94,706 | 86,090 |
Recurring | Commercial paper | Fair Value | ||
Assets | ||
Cash equivalents | 94,706 | 86,090 |
Recurring | Agency bonds | Level 1 | ||
Assets | ||
Cash equivalents | 0 | 0 |
Recurring | Agency bonds | Level 2 | ||
Assets | ||
Cash equivalents | 10,988 | 10,942 |
Recurring | Agency bonds | Level 3 | ||
Assets | ||
Cash equivalents | 0 | 0 |
Recurring | Agency bonds | Carrying Value | ||
Assets | ||
Cash equivalents | 10,988 | 10,942 |
Recurring | Agency bonds | Fair Value | ||
Assets | ||
Cash equivalents | $ 10,988 | $ 10,942 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Cash Equivalents and Available for Sale Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Amortized Cost | ||
Due in 1 year | $ 141,132 | $ 114,577 |
Fair Value | ||
Due in 1 year | $ 141,071 | $ 114,538 |
Fair Value Measurements - Sch_3
Fair Value Measurements - Schedule of Unrealized Gains and Losses on Available for Sale Debt Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Cash equivalents | ||
Fair Value | $ 116,350 | $ 108,608 |
Short-term marketable securities | ||
Fair Value | 24,721 | 5,930 |
Total | 141,132 | 114,577 |
Unrealized Gains | 0 | 3 |
Unrealized Losses | (61) | (42) |
Fair Value | 141,071 | 114,538 |
Commercial paper | ||
Short-term marketable securities | ||
Amortized Cost | 12,834 | |
Unrealized Gains | 0 | |
Unrealized Losses | (12) | |
Fair Value | 12,822 | |
Agency bonds | ||
Short-term marketable securities | ||
Amortized Cost | 11,899 | 5,929 |
Unrealized Gains | 0 | 1 |
Unrealized Losses | 0 | 0 |
Fair Value | 11,899 | 5,930 |
Money market funds | ||
Cash equivalents | ||
Amortized Cost | 10,656 | 11,576 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 10,656 | 11,576 |
Commercial paper | ||
Cash equivalents | ||
Amortized Cost | 94,755 | 86,132 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (49) | (42) |
Fair Value | 94,706 | 86,090 |
Agency bonds | ||
Cash equivalents | ||
Amortized Cost | 10,988 | 10,940 |
Unrealized Gains | 0 | 2 |
Unrealized Losses | 0 | 0 |
Fair Value | $ 10,988 | $ 10,942 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 USD ($) security | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) security | Jun. 30, 2023 USD ($) | Dec. 31, 2023 security | |
Fair Value Disclosures [Abstract] | |||||
Number of securities in net loss positions | security | 28 | 28 | 20 | ||
Interest income | $ | $ 2.1 | $ 2.3 | $ 4.3 | $ 4.2 |
Equity - Narrative (Details)
Equity - Narrative (Details) - shares shares in Millions | 1 Months Ended | 6 Months Ended | |||
Sep. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | Sep. 22, 2021 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Treasury stock (in shares) | 13.1 | 12.5 | |||
Treasury shares that were previously surrendered by employees to satisfy tax withholdings (in shares) | 2.4 | 1.8 | |||
2021 Inducement Plan | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Shares reserved for future issuance (in shares) | 0.4 | ||||
Additional shares reserved (in shares) | 1.5 | 0.5 | |||
Granted (in shares) | 2 | ||||
Previous Share Repurchase Programs | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Number of shares repurchased under share repurchase plan (in shares) | 10.7 |
Equity - Schedule of Stock-Base
Equity - Schedule of Stock-Based Compensation Expense By Award Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 5,106 | $ 6,193 | $ 10,646 | $ 11,187 |
Related tax benefit recognized | 1,255 | 1,452 | 2,612 | 2,619 |
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 4,296 | 4,934 | 8,932 | 9,007 |
Performance-based stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 467 | 850 | 874 | 1,454 |
Common stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 343 | 312 | 743 | 566 |
Employee stock purchase program | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 0 | $ 97 | $ 97 | $ 160 |
Equity - Schedule of Stock-Ba_2
Equity - Schedule of Stock-Based Compensation Expense by Operating Function (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 5,106 | $ 6,193 | $ 10,646 | $ 11,187 |
Amount capitalized for internal-use software | 202 | 325 | 380 | 637 |
Total stock-based compensation | 5,308 | 6,518 | 11,026 | 11,824 |
Marketing and advertising | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 711 | 538 | 1,355 | 993 |
Customer care and enrollment | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 511 | 788 | 1,035 | 1,393 |
Technology and content | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 779 | 1,173 | 1,753 | 2,078 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 3,105 | $ 3,694 | $ 6,503 | $ 6,723 |
Convertible Preferred Stock - N
Convertible Preferred Stock - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||||
Apr. 30, 2024 day | Jun. 30, 2023 | Jun. 30, 2021 $ / shares | Apr. 30, 2021 USD ($) vote state day $ / shares shares | Jun. 30, 2024 USD ($) $ / shares | Jun. 30, 2024 USD ($) $ / shares shares | Apr. 30, 2027 day | Dec. 31, 2023 USD ($) | Sep. 30, 2023 | Aug. 31, 2023 | Feb. 17, 2021 USD ($) member | |
Temporary Equity [Line Items] | |||||||||||
Sale of stock, shares issued (in shares) | shares | 2,250,000 | ||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | ||||||||||
Gross proceeds | $ 225,000 | ||||||||||
Carrying amount | 214,000 | $ 317,060 | $ 317,060 | $ 298,053 | |||||||
Payments of stock issuance costs | $ 10,975 | ||||||||||
Dividend rate | 8% | 8% | |||||||||
Stated value (in dollars per share) | $ / shares | $ 100 | ||||||||||
Dividend rate, payable-in-kind | 6% | ||||||||||
Dividend rate, cash | 2% | ||||||||||
Conversion rate (in dollars per share) | $ / shares | $ 79.5861 | $ 79.5861 | |||||||||
Redemption put right, percentage of accrued value | 135% | 135% | |||||||||
Number of trading days | day | 5 | ||||||||||
Number of votes per share | vote | 1 | ||||||||||
Threshold percentage of conversion price | 167.50% | ||||||||||
Threshold consecutive trading days | day | 20 | ||||||||||
Threshold trading days | day | 30 | ||||||||||
Asset coverage ratio | 250% | 250% | 200% | ||||||||
Shares converted (in shares) | shares | 0 | ||||||||||
Accrued paid-in-kind dividends, common stock equivalent, as-converted (in shares) | shares | 3,500,000 | ||||||||||
Minimum | |||||||||||
Temporary Equity [Line Items] | |||||||||||
Minimum liquidity amount | $ 65,000 | ||||||||||
Maximum | |||||||||||
Temporary Equity [Line Items] | |||||||||||
Minimum liquidity amount | $ 125,000 | ||||||||||
Series A Preferred Stock | |||||||||||
Temporary Equity [Line Items] | |||||||||||
Dividends, cash | $ 2,700 | ||||||||||
Aggregate accrued value divisor (in dollars per share) | $ / shares | $ 69.684 | ||||||||||
H.I.G | |||||||||||
Temporary Equity [Line Items] | |||||||||||
Number of nominations to board of directors | state | 1 | ||||||||||
Minimum common stock ownership percentage needed to nominate individual to board of directors (as a percent) | 30% | ||||||||||
Minimum ownership percentage | 30% | 30% | |||||||||
Convertible preferred stock, number of additional rights to nominate | member | 1 | ||||||||||
Forecast | |||||||||||
Temporary Equity [Line Items] | |||||||||||
Redemption put right, percentage of accrued value | 135% | ||||||||||
Redemption call right, number of days for written notice | day | 30 |
Convertible Preferred Stock - S
Convertible Preferred Stock - Schedule of Proceeds and Changes to Preferred Stock (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 30, 2021 | Jun. 30, 2024 | |
Temporary Equity Disclosure [Abstract] | ||
Gross proceeds | $ 225,000 | |
Less: issuance costs | (10,975) | |
Net proceeds | 214,025 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||
Beginning balance | $ 298,053 | |
Accrued paid-in-kind dividends | 8,220 | |
Change in preferred stock redemption value | 10,787 | |
Ending balance | $ 214,000 | $ 317,060 |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Common Stockholders - Schedule of Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Numerator: | ||||
Net loss attributable to common stockholders, basic | $ (38,988) | $ (32,915) | $ (66,699) | $ (60,963) |
Net loss attributable to common stockholders, diluted | $ (38,988) | $ (32,915) | $ (66,699) | $ (60,963) |
Denominator: | ||||
Shares used in per share calculation - basic (in shares) | 29,233 | 27,822 | 29,072 | 27,735 |
Dilutive effect of common stock (in shares) | 0 | 0 | 0 | 0 |
Shares used in per share calculation - diluted (in shares) | 29,233 | 27,822 | 29,072 | 27,735 |
Net loss attributable to common stockholders per share - basic (in dollars per share) | $ (1.33) | $ (1.18) | $ (2.29) | $ (2.20) |
Net loss attributable to common stockholders per share - diluted (in dollars per share) | $ (1.33) | $ (1.18) | $ (2.29) | $ (2.20) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 5,726 | 6,856 | 5,967 | 6,044 |
Convertible preferred stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 3,521 | 3,318 | 3,495 | 3,288 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 1,910 | 3,129 | 2,138 | 2,369 |
Performance-based stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 74 | 126 | 106 | 112 |
Common stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 217 | 222 | 217 | 224 |
Employee stock purchase program | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 4 | 61 | 11 | 51 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Payments Under Non-Cancellable Contractual Service and Licensing Obligations (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Year ending December 31, | |
2024 (remainder) | $ 1,999 |
2025 | 1,141 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
Total | $ 3,140 |
Commitment and Contingencies -
Commitment and Contingencies - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Commitments and Contingencies Disclosure [Abstract] | ||
Self insurance reserve, maximum benefits per employee | $ 0.3 | |
Self insurance maximum claim liability | 22.5 | |
Self insurance reserve | $ 2 | $ 2.5 |
Segment and Geographic Inform_3
Segment and Geographic Information - Schedule of Operating Segments (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) segment | Jun. 30, 2023 USD ($) | |
Segment Reporting [Abstract] | ||||
Number of operating segments | segment | 2 | |||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 65,856 | $ 66,768 | $ 158,820 | $ 140,491 |
Stock-based compensation expense | (5,106) | (6,193) | (10,646) | (11,187) |
Depreciation and amortization | (4,278) | (5,151) | (8,684) | (10,396) |
Impairment, restructuring and other charges | (3,035) | 0 | (9,348) | 0 |
Interest expense | (2,849) | (2,720) | (5,658) | (5,300) |
Other income, net | 2,335 | 2,828 | 4,726 | 4,816 |
Loss before income taxes | (28,473) | (26,044) | (46,802) | (49,530) |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 65,856 | 66,768 | 158,820 | 140,491 |
Segment profit | 2,164 | 4,826 | 15,125 | 11,914 |
Operating Segments | Medicare | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 59,248 | 55,430 | 141,636 | 117,264 |
Segment profit | 1,274 | (2,062) | 9,583 | (2,648) |
Operating Segments | Employer and Individual | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 6,608 | 11,338 | 17,184 | 23,227 |
Segment profit | 890 | 6,888 | 5,542 | 14,562 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Segment profit | $ (17,704) | $ (19,634) | $ (32,317) | $ (39,377) |
Segment and Geographic Inform_4
Segment and Geographic Information - Schedule of Long-Lived Assets by Geographical Area (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 26,748 | $ 29,700 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 26,515 | 29,419 |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 233 | $ 281 |
Segment and Geographic Inform_5
Segment and Geographic Information - Schedule of Revenue by Major Customers (Details) - Customer Concentration Risk - Revenue | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Humana | ||||
Revenue, Major Customer [Line Items] | ||||
Major customer revenue, percentage | 29% | 28% | 27% | 27% |
Aetna | ||||
Revenue, Major Customer [Line Items] | ||||
Major customer revenue, percentage | 18% | 8% | 21% | 7% |
UnitedHealthCare | ||||
Revenue, Major Customer [Line Items] | ||||
Major customer revenue, percentage | 18% | 23% | 16% | 22% |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 USD ($) | Jun. 30, 2024 USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Future sublease income | $ 12.4 | $ 12.4 |
Impairment charges, excluding capitalized computer software | $ 1.9 | $ 7.4 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 2 years | 2 years |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 6 years | 6 years |
Leases - Schedule of Components
Leases - Schedule of Components of Operating Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||||
Operating lease expense | $ 1,434 | $ 1,835 | $ 3,170 | $ 3,690 |
Operating sublease income | (638) | (577) | (1,214) | (1,153) |
Total operating lease cost | $ 796 | $ 1,258 | $ 1,956 | $ 2,537 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Leases [Abstract] | |||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 4,444 | $ 4,369 | |
Weighted-average remaining lease term (in years) of operating leases | 4 years 4 months 24 days | 4 years 9 months 18 days | |
Weighted-average discount rate used to recognize operating lease right-of-use-assets | 5.70% | 5.70% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Lease Liabilities (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Operating leases | |
2024 (remainder) | $ 4,448 |
2025 | 9,096 |
2026 | 7,591 |
2027 | 6,773 |
2028 | 4,998 |
Thereafter | 3,204 |
Total lease payments | 36,110 |
Less imputed interest | (4,370) |
Total | 31,740 |
Sublease income, remainder of 2024 | 1,200 |
Sublease income, 2025 | 2,600 |
Sublease income, 2026 | 2,700 |
Sublease income, 2027 | 2,800 |
Sublease income, 2028 | 2,800 |
Sublease income, thereafter | $ 1,000 |
Impairment, Restructuring and_3
Impairment, Restructuring and Other Charges - Schedule of Impairment, Restructuring and Other Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | ||||
Asset impairment charges | $ 1,921 | $ 0 | $ 7,413 | $ 0 |
Restructuring and reorganization charges | 1,114 | 0 | 1,935 | 0 |
Impairment, restructuring and other charges | $ 3,035 | $ 0 | $ 9,348 | $ 0 |
Impairment, Restructuring and_4
Impairment, Restructuring and Other Charges - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |||||
Asset impairment charges | $ 1,921 | $ 0 | $ 7,413 | $ 0 | |
Impairment charge | 1,800 | 6,900 | |||
Tangible asset impairment charges | 100 | 500 | |||
Restructuring and reorganization charges | 1,114 | $ 0 | 1,935 | $ 0 | |
Accrued restructuring charges | $ 150 | $ 150 | $ 0 |
Impairment, Restructuring and_5
Impairment, Restructuring and Other Charges - Schedule of Cash-Based Restructuring and Reorganization Related Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 0 | |||
Restructuring and reorganization charges | $ 1,114 | $ 0 | 1,935 | $ 0 |
Payments | (1,785) | |||
Ending balance | $ 150 | $ 150 |
Debt (Details)
Debt (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Aug. 16, 2022 | Feb. 28, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Instrument [Line Items] | ||||||
Interest expense | $ 2,849,000 | $ 2,720,000 | $ 5,658,000 | $ 5,300,000 | ||
Secured Debt | Term Loan Credit Agreement | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 70,000,000 | |||||
Debt issuance costs | 5,100,000 | |||||
Amortization of debt issuance costs | 500,000 | 400,000 | 900,000 | 800,000 | ||
Unamortized issuance costs | 1,300,000 | 1,300,000 | ||||
Carrying value of loan | $ 68,700,000 | $ 68,700,000 | ||||
Interest rate | 13.11% | 13.11% | ||||
Interest expense | $ 2,300,000 | $ 2,200,000 | $ 4,600,000 | $ 4,400,000 | ||
Annual agreement fee | 300,000 | |||||
Minimum liquidity | $ 25,000,000 | |||||
Outstanding amount as a percentage of total contract assets - commissions receivables (less than) | 50% | |||||
Secured Debt | Term Loan Credit Agreement | Line of Credit | Federal Funds Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate | 0.50% | 0.50% | ||||
Secured Debt | Term Loan Credit Agreement | Line of Credit | London Interbank Offered Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate | 1% | |||||
Interest rate | 7.50% | |||||
Secured Debt | Term Loan Credit Agreement | Line of Credit | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 6.50% | 6.50% | ||||
Secured Debt | Term Loan Credit Agreement | Line of Credit | Secured Overnight Financing Rate (SOFR) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate | 1% | |||||
Interest rate | 7.50% |
Income Taxes - Schedule of Bene
Income Taxes - Schedule of Benefit from Income Taxes and Effective Tax Rates (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Loss before income taxes | $ (28,473) | $ (26,044) | $ (46,802) | $ (49,530) |
Benefit from income taxes | $ (505) | $ (2,543) | $ (1,850) | $ (6,151) |
Effective tax rate | 1.80% | 9.80% | 4% | 12.40% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Benefit from income taxes | $ 505 | $ 2,543 | $ 1,850 | $ 6,151 |
Effective tax rate | 1.80% | 9.80% | 4% | 12.40% |