EHTH - Earnings call transcript Q3 2018

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Operator

Good day, ladies and gentlemen, and welcome to the Q3 2018 eHealth Incorporated Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to introduce your host for today’s conference Kate Sidorovich, Company’s Vice President of Investor Relations. Ma'am, you may begin.

Kate Sidorovich

Thank you. results. you by joining about webcast, third XXXX thank by today, eHealth, and quarter or phone for financial afternoon, all us for either Inc.'s Good a discussion

Scott On the questions. Flanders, Francis, the line Chief and After for Financial Officer; Yung, Operating afternoon, remarks, management call we'll completes eHealth's eHealth's Executive its Officer; this Chief Dave Chief Officer. Derek have we'll open

being replay recorded of a the and from call reminder, As available section A today's the following be our will is website. website the of conference call IR our webcast on call.

be our statements our expectations partnerships, individual plans and our other including making statements We regarding and components call for will expectations, expectations including relating future digital marketing credit our to business forward-looking fee strategic enrollment deliver period, regarding that well regarding include initiative, our as conversion full alternative applications annual XXXX impact enrollment acquisition on our seasonal statements expectations the relating of and and channels, non-ACA membership, of estimated this to growth, our and expectations beliefs business, plan facility, events, family the year as our on Medicare costs, our on our enrollment ability and our sales rates, guidance. to guidance plans regarding reduced business, growth, patterns, of as huge and

views today. eHealth's of call as statements represent this Forward-looking on

undertake future. as information, the rely new not obligation in a or We the should on duty You no events otherwise. of in to representing the future result as whether information views or statements statements forward-looking contained update our

from Securities reports Exchange or which on the of Commission, may and the XX-Q, reports in forward-looking with and materially SEC XX-K access website Investor cause our Form to website. that statements. from We subject and uncertainties those in other the Relations are annual uncertainties risks could through Form you statements these on our filed actual results Forward-looking and described to section quarterly differ our projected risks and

G. on considered presenting call We will SEC that measures certain are financial be this Regulation non-GAAP under

of press About of measure refer our reconciliation call corporate the Relations. release And comparable included found Scott non-GAAP over be at financial Flanders. turn in section GAAP in website can will the under our measure, please to each which directly Us the most For and in the heading to to filings, SEC our point, the information this financial I Investor

Scott Flanders

performance Thank momentum Kate, quarter important everyone. I pleased solid you, as enter am fourth welcome, and with increased season. and selling eHealth’s we the our third quarter

$XX.X The of rate a Company's since basis. growth grew on Third XX% year-over-year quarter strongest XXXX. revenue

was to EBITDA improvement adjusted quarter $X.X a compared a Third negative year quarter same ago. an $X.X million the million

loss net $X million. GAAP was quarter Third

Our we've third year the acceleration quarter the lifetime of financial the in our values compared Medicare performance with new combined to the growth posted one largely enrollment of driven and Medicare plan the in members. was rates Medicare increase Supplement half first an in by the Advantage in

investments direct and value a sponsorship Second leads for revenue third in-house. our our consumer proposition. creating to initiative of by are insurance increase new which And validation not fulfilled market direct a in serves as a significant our optimize that carriers, to marketing from customer

of Medicare This this annual a compared to effectively telesales strategies, this AEP generate overall sense ability our the increase capacity AEP strong consumer in made XXX you digital months strategic to channel, expanding we entered the a attractive of a We strength expanding refining agent direct which in-house convert and consumer to deliver costs quarter, our year XX% marketing our agents selling compares final many XX. our preparation enrollment October and and experience an growth the better ago. enrollment AEP give during Medicare outsourced our to approximately on call improving terms how strengthening between on centers at the customers. I'd to acquisition a ago the demand. for like started year and to of Medicare from we for During have position partner period, season

broader partner much channel and Our more now diversified. is

addressable Just threefold in the compared Medicare hospital million include year vertical to alone last eligible opportunity our grew X.X consumers. to

our higher and we infomercial marking to stronger call addition capabilities strategy In ever center our TV our channel to agents. expect volumes to from revamped to have partner consumers the directly now digital and consumer direct first a web that both properties we drive including

Finally of market compared efforts. competition Advantage and commitments we platform a carrier the driven have carrier increased sponsorship generation for revenues carrier to by importance our and larger Medicare the to year demand ago

driven are confident application in now And In Medicare growth primarily forth across Supplement quarter applications. set on with growth you guidance. in three our our profitability and our let annual submitted growth key in third increasingly execution XX% areas. year information We business a ago objectives our provide compared our at by more to business Medicare XX% me as was

advantage revenues six Sponsorship reach ahead fold marketing Total AEP. and customer of revenue the variable declining our as insurers XX% ago. revenue last Medicare continued compared Our commission eHealth’s XX% Medicare of quarter grew approved carriers year. recognized platform Medicare a looked engagement growth and to potential to per from compared of costs XX% third of to member increased to improve grew year the the take grew market

closely the with During for quarter, selling our worked upcoming strategic we partners to align efforts season. the our

pharmacy to affinity AEP portfolio having across the and partner last strategic addition our having In this benefiting learnings year's our also from more expanded activities effectively. an time implement more to apply we partners of programs are markets from to hospital,

will to in for only investments that customers, for eHealth each the result brand enrollment and leverage growth partners, creates deliver. our our relationships partner's for win-win-win unique can unique scenario customer and significant our platform our expect that We

marketing to We a digital expect significant our volume enrollment in from also see increase efforts.

are program has on social search, the other more media established calls Hannan lever acquisition our positioned largely well a strategies business core cost our our non-factor We've earnings in Tim enrollment shared refining deliver through using believe efficient by prior substantially a was for digital that I paid a strong assembled year CMO and marketing and over digital and and the year to these As that strategies team assets. second effective our ago. we third customer the last channel been growth new quarters

expect our We especially accelerating during marketing partner this in be that Advantage our AEP. and initiatives digital growth enrollments will strategic impactful in Medicare

the driving enrollment third Lastly, year. A applications continues were quarter of digital our Medicare focus compared third XX% increase the our online. to quarter Medicare last growth. to of show on In submitted Advantage activity XX%

were products increase ago. XX% For all plans submitted compared a Medicare year to A including prescription online. XX% drug

enrollment the continue revolutionizing position promise to that portfolio believe channel and great that decision part online We eHealth’s education, unique holds this grow for of well support and market business and to the digital beyond. during the AEP us capabilities of the Medicare

in in individual growth we've solid to continue several years. new the progress driving quarter the negative third we reversing membership trends make market, the During customer observed over past

premium health While same the of at in the market opportunity many maximum The sustained the challenged extension to allowed short-term The the for the the driven and removal demand us alternative and end the plans duration for by consecutive attractive members mandate major importantly of non-ACA allowed market last for of short-term the the medical plans of for states. is quarter. over insurance year medical spikes major individual in quarter number individual growing, our year remains grow second is Obamacare this approved total coverage. the

medical for expect As to major a plans alternative consumers we affordable a substitute and result, see more into market the come coverage. as more these use

approved post in plans. Our quarter to platform and allows us plans XX in of This family to trend the a grew and of members an third relative the approved us the on under short-term last consisting performance individual leverage allowed consumer and XX% sequentially. effective, in market annual growth was year-over-year cost In acceleration total this quarter. XX% XX% to manner. friendly This members short-term

We enrollment of round, insurance can head Small also of the of to terms we during further quarter period. sold expect still At enrollment be Small fourth as year with a the products in our the seasonal insurance. enrollments expanding we leadership of to the strongest business family health role plan bolstered both end increases health see this well individual in and our volumes. short-term though the see our being Business Even these pattern of Seth by head the as third Business unit quarter IFP open Teich

revenue with growth. I the to two momentarily, approved trajectory IFP describe not Seth and in mandate also health the is our strong costs only As in done a Business Small will in has putting business on insurance business start quarters performed as The growth to membership aggressively. we've past managing profit to but the transition while generating well growth business

growing ancillary efforts. revenue grew the groups approved ago. XXXX. Turning small the over year row to to we improved number quarter the traction to period quarter rates growing X% of Conversion Commission a gained XX% business enrollments compared second third same XX% But cross-selling with in of for the market last the as year. over compared the a XX% increased product

enrollments plans strong During customer a growth focus and focus in season. operational our partners. progress experience To attractive with larger strategy quarter bring we business price technology pursuing business the improve center creates key And our quarter, of as we carriers under partners, intensive more health In continue this the platform on critical to to wrap XX and levers integration small eHealth our consumer consumer packages third our for the to shift a points more insurance with fully to goal momentum diversified online and commitments from We've solid with group AEP added continued meet continues we developed directed successfully up, a our non-ACA invest and enter we to enhancing to technology and market. network all has well. perform carrier Medicare selling much call marketing resulted traditionally our in at had short-term insurance quarter across execution top important In for small selling our in a that fourth needs. strong our areas. this business business

and implement that I'll we market As to with the turn platform in disruption over Derek. a And move call growth. that, technology significant to results

Derek Yung

Thank good everyone. afternoon you, and Scott

our quarter prepare the Medicare market important the quarter strategy season. Our results of third reflect for continued investment company's execution and to growth selling fourth in

XXXX. of the quarter increase quarter of Third was an revenue to million, compared XX% third $XX.X

growth the Third reflecting XX% of Medicare and was of third XXX%. non-commissioned compared over XXXX, quarter to a revenue members an segment, third In growth ago. revenue a $XX.X quarter by of approved XX% million to the revenue the $XX.X quarter year Medicare grew in in quarter commission increase third the our compared million, driven

lifetime X% members of year an to Advantage supplement Medicare LTVs saw also and or increase values a member X% and compared We in Medicare our of respectively, ago.

have LTVs direct commission revenue the members a reminder, quarter. impact standard, a under ASC As recognized the during XXX accounting that we on

quarter Medicare the the the have business compared that volume applications in while approved growth Medicare January. XX%. flat. members applications significant Medicare year product ago, acquired was Supplement in reflects Medicare we application while XX%, in a Supplement submitted grew The level, Advantage XX%, Third the increased to third investment made growth At application quarter GoMedigap grew

our business. As well on as Supplement increased Medicare a focus strategic

Medicare well result Advantage enrollment a as strategic accelerate growth as of new plan. Medicare in enroll sales expect application We to in the in annual of take marketing capacity, our when partners full the quarter investments fourth And period effect. considerable population our broader investments marketing to allowing the the as and the

dollar yield to attractive as spent and expect costs the resulting in outside also more investments are We across line marketing business significantly during about substantially both per better the conversions to acquisition. more AEP Medicare AEP Advantage Medicare our Supplement customer enrollments compared for

$X.X was Year-to-date, compared same Third in quarter XXXX. of $X.X profit from of quarter segment $X.X third $X.X XXXX. for was million, to loss Medicare a the million a million segment profits million, compared to for our Medicare loss period our

third estimated estimated of third of of end was the at members number membership of XXX,XXX of Medicare quarter, XX% XXXX. Our quarter compared an the increase the Medicare end to the at

ago. compared X% compared XX% from IFP quarter. improvement was Individual, to million, our a a Small and represents year decline a XXXX quarter reported significant a This in to revenue of $X or Business decline Family the Third second segment

growth. As work line to top establish segment we and returned this eventually at the

a the IFP Individual, major commission a IFP members quarter, Small as by was medical year. offset from third increase a and quarter loss in million from compared Family than in $X.X declined million approved in our the ago, Health XX%. revenue our on of an business compared loss to XX%, and segment Growth small Approved was better members member to Qualified well products of expected sales year declined the $X.X revenue, of and Business applications third on last our while short-term During as retention products, Plans. quarter non-commission decline

challenging addition towards also reflects decline year-over-year market to to our enrollments shift medical marketing spend a our In in the environment, major products. decision non-ACA

individual the end quarter and was membership of a XX% reported at to compared end third ago. XXX,XXX at estimated Our quarter the down year We plan estimated of family third membership. the

had breach a I customers of increase. time. ago. approximately through short-term XX% announced subsidy the years a encountered marketing that security CMS would the members in response, as small have That's note noting that from quarter, taken last government end made CMS the we on members emphasis also third personal actions In HealthCare.gov significant XX,XXX web-based a a to our that decline shift including plan in to at XX% of enroll because of eHealth but further portal entities prohibit that several approximately was products year experienced the has information subsidy-eligible individuals. We the to on worth and the the last enrollments had in number week increase based away compared channel. business annual XX,XXX XX,XXX as and many It exposing is of as

for very any relative CMS expect impact the coming quarter not business new of HealthCare.gov have from meaningful channel And our or fourth to did were during we OEP this forward. expectations business Our the on the going in actions to low.

to our wanted I Before I more color our revenues. get expenses, to on provide non-commission operating

million $X Medicare advertising. from carrier non-commission quarter, third the revenue approximately generated million with coming During in $X.X we

In addition, of lead plan that $X.X and leads we that Medicare individual family represented lost. otherwise have capacity from million sale the and excess generated would been

for that excess sale the the which ability mentioned new As and with year, Medicare to these Scott leads investment in-house. to bolster marketing the the aggressive of call, attractive the to on initiatives. marketing market at partners be initiative of at have cannot more the monetizing we lead by immediately our convert This business beginning created a established rates giving the returns us lead we that on serves

We expected the especially selling the be season. establishment of to during volume this impactful marketplace high

our to operating Turning expenses.

year of operating a value to intangibles revenue grew GAAP and million which a of quarter third a X% cost compared amortization the quarter of ago quarter to cost as $X.X a compensation non-GAAP and million, fair of XX%, Third million, of but through excludes $XX.X and compared liability change year ago. third $XX.X of stock-based operating earn-out declined percentage

a to we Individual, quarter to million group revenue just non-GAAP markets. small cost compensation fourth the Medicare Third a decline segment, business, acquisition in new variable for a our in quarter Business X% ago. invest quarter faster continue growth to marketing despite excludes much short-term we opportunities spend and a spend which year XX% with growing In In row in enrollments. XXXX our advertising third member related stock-based revenue in total was growth in marketing and and expense marketing in Small expense Family XX% of grew double-digit and compared posted approved percentage $X.X the of per a a approximately

non-GAAP by Third to and care $X.X expenses, which XX% quarter customer of of excludes stock-based approximately revenue revenue grew in third and compared million enrollment the represented quarter XX% of XXXX. XXXX compensation

the customer related major platform customer and volumes position quarter, AEP ahead our conversion. products we care the count agents footprint primarily as enrollment focus a to significant year-over-year, of demands the lower our of in-house convert agent company volume to to online we and IFE expect. the increase of During declined outsourced enrollment Medicare spend ramp well Medicare continue to medical enrollment reflecting in for

and earn-out compared income. net quarter non-GAAP compensation amortization acquired fair third was expense compensation costs $XX.X change XXXX. declined and quarter administrative other stock-based EBITDA the negative and restructuring third and which charges, to for our stock-based EBITDA tax adjusted in non-GAAP expense compared XXXX. compensation, third acquisition and million to the including depreciation general the excludes the operating of million, XXXX benefit by value which excludes $X.X intangibles, We by million GAAP for quarter quarter to also combined $X.X negative content of Third technology stock-based costs, amortization of Adjusted income expense of adding calculate income liability, of

EPS is revenue loss diluted diluted net to per diluted despite share of of an loss and loss GAAP quarter recorded XXXX. decline share quarter The $X.XX quarter was to year-over-year third Non-GAAP that for per in the of in Third for $X.XX non-GAAP EBITDA net a $X.XX, XXXX loss share the net due was last share significant a per we per compared quarter to the in of of $X.XX diluted tax compared third benefit year. third improvement XXXX.

quarter third approximately $X.X of third XXXX of $XX.X third million, was $X.X for compared expenditures the were from cash million quarter XXXX Our million. operations negative Capital the in negative flow XXXX. to quarter

balance our was cash $XXX approximately and million. commission quarter-end Our was $XX.X million, receivable balance

update greater previously we This our agreement the of our and credit As allows month to potential XX revenue, on an outstanding with Medicare secured facility announced, reaffirming Royal operational facility Bank the with in year ability currently we to closing, revolver. will growth our of receivables. and we balance the performance. in greater Operator? respect first readiness Medicare Currently share no season, for Scott’s earnings deliver for invest growth our revolving per are up flexibility segment the to adjusted on against nature credit in revenue no full we million our selling to for available, us questions. our commission business last obligation quarter the for seasonal by given a plans open ability information profitability with and strong comment, further now echo our financial Canada call based we and EBITDA, market. guidance signed call. year full the With for the earnings earlier We our that XXXX confident In our and our to to XXXX guidance enrollment are operational undertake the And guidance provided on guidance. generate

Operator

Thank first you. Sutton [Operator George Craig-Hallum. from comes Instructions] with question Our

now is open. line Your

George Sutton

results. and you nice Thank

Scott Flanders

Thank you, George.

George Sutton

CMS just Scott, activity about the the I’m your towards to of curious to the I'm What your you to number assumption talk plans would to that now, perspective people from this would very you is there aggressiveness could more this transact and if right with of Advantage. carrier is my for relative ability doing – because I trying all be Medicare out beneficial sort drive asking carriers? and

Scott Flanders

Right, plan of the last as I EMA strong met in tools this a shopping the of comparison market their mean, they very on market. this Medicare carriers in the year very was and well XX% plays was agenda is very a increase being Economic presence year. at They lot changes our an I that obviously the XX%, our engine Council are their and to compared design into with comparison and money House And for we the as their on will clearly XX% decision agents. think which well forecasted stronger Yes, for it's White with are last week EMA reimbursement There year robust create Advisors support growth with competitive shopping more value bullish of They've put where a team. enrollment XXXX. Advantage. mouth

showing no that next also there's that's that the doesn't strong this in strong think see see up our a we will quarter financials three that QX. through with But at sponsorship well it's So of continuing beyond. least reason why number And regulatory the carry in for definitely continue to MAA we supportive sponsorship that environment years. we

George Sutton

getting ability of Now do but the is quickly? if in of you're you up sort Can proportion direct. number number productivity that for do the these reps of coming to have about a reps enrollment right the the talk of number excess the demand, right a scale very you and applications see or now much you larger and your open much obviously you higher early period you also we're have

Scott Flanders

to going that I'm a punt for Dave minute. to

Dave Francis

George. question, a good Scott, Thanks

that improvements the of far we we in come that earlier saw the with ability were Derek to going nicely significantly us we well side We've and and as that perfect and through the some channel. stay we went for financial obviously through made continue on see over invest channel the we've production demand mentioned productivity investments that increases are that process agents to investments and But in as our improving customers digital So the that thus the total enroll absolutely this we group allow both in to us sales marketing through the channel the of opportunities of year the numbers us make saw we towards come the capacity increase made of enrollment that expect investments growth see to gearing that in to have that of the coming marketing you this larger channel as the up to on and in to see guidance terms Scott digitally that online our for in year. We again remarks. to year. through on that in that sales prepared some will point that

George Sutton

for this that how in your preparations year partner start had year this? a just the last general it to I'm key does and relative your one Now me, it, enrollment some terms season into does different to feel your question you going of issues. had open in curious of last partnerships partners and good

Dave Francis

channel Yes. conscious diversified all channels partner make into with this Great that a year volume channels coming came just to marketing of we question were the year. this but effort not into significantly the we with different and creation we that AEP and sure

well. as we've Scott the presence bolstered significantly partners among with but as different we're that that partner our significantly mentioned, working have diversified So channel

specific volume Hannan as team relying oversized the not had we portion you but in drive Tim to an the generation direct to that with good now the year the of feel about the full marketing well direct a his different get we've of opportunities portfolio if marketing platform on side and after channel the So at having side on partner we're got driving TV, of any look customer that particular very, that all into online mail, the platform. direct channels very be to

no outsized on specific So answer any relying channel. any your question, part of the customer partner specific to or generation specifically

George Sutton

Perfect. Thank you. you Got very much.

Dave Francis

George. Thanks

Scott Flanders

you. Thank

Operator

Jefferies. And next from Dave Styblo Thank comes question our you. with

Your is now line open.

Dave Styblo

Hi gentlemen. the for there, Thanks questions.

understand primarily that the million Just relative the the sponsorship had results, apps to revenue third was million so that Medicare XQ for you of quarter with guys understand gets Is sure had that talked that pretty upside us works? or about us. or so help of the and that even seasonality increase recurring similar. if to into were that's pushed submitted more only revenue the or start the case, sort business? Is revenue out And $X can second reason you the make that how sort $X though just up quarter of about

Scott Flanders

performance around on On which your our to that they with for partners is as as represents in first agreements that they volumes related estimate tend put in per on to the carrier as AEP. The calls partners in remarks. value nature as their street sponsorship well primarily around expectations also versus recurring our by Dave. commission our be for see question to the but volumes is your businesses. discussed the are worked And revenue for in we we revenue driven thanks AEP, revenue. of relative share the well in will these have are had of form really working is the that would providing Yes, believe together what question, you lumpier proposition come second side your as non-commissioned through driving because revenue to a revenue in And our would plans be prepared broker revenue it on sponsorship primarily in

QX see in would like the these previously had and revenues and in QX just year. past you this So we also

Dave Styblo

organic is largely submitted kind that's acquisition which on being I Okay, parse was is driven XX%, that the Medigap, helpful. that's inorganic? then there a guess partially much of driven to by how growth by up out way of apps versus And GoMedigap

Derek Yung

by focus GoMedigap Supplement book increased certainly provided way break but see growth not opportunistic correct we We the have we in as Yes, out made But that we a investment was because bring business acquisition because in Medicare of the in Medicare capabilities you're general quarter that Medicare and and in the both also that a also with the certainly to have we've of didn't in of and Supplement have. driven within investments this application acquisition.

As than the is Medicare ours seen their historically better that lifetime we GoMedigap have for an have their is than eHealth values ability Supplement. what of example, to book because better at retention

commented are Let to Medicare our was application partner switch the as of year. to people AEP. our what Advantage plans of earlier number, the drive invest during can which growth is AEP we tends me the within discussed opportunity not which driver the which happen seeing the is that partners one several doing MAA Dave maybe but the we've also on further comment for really application previously And from and discussed when to there growth we're on looking is are ability channel which comes components period to because add. around Number

we in expect mentioned better a marketing and our do from investments perspective as than higher on because investments The an of return We prepared conversion during in AEP remarks. second dynamic Advantage investment is outside Medicare AEP.

So growth, period than in been plan it more has our AEP during disproportionate growth period. of that drive outside to QX

Dave Styblo

more quarter. to I like confidence like guess year-over-year but year you what on so for XX% going growing together fourth so just channels in that Medicare of to the that it forth. XX% of than did seems guess number? last helpful hasn't lead third is months have second it's all guys progress channels three, sounds we far why towards much were gives going intentional six you partner quarter, relative the focus quarter. really do have more fourth XX% you I is goes is Do initiatives this the partner thinking every from the while really But my or question in confidence those and marketing because it it to the And the it well seems for is like each maybe that Okay, sort the so that been and XX% almost and something and this to a it's question to it been having like call that digital up coming all the you that that. but investments what made more growth with a begs that's ago year-over-year the

Scott Flanders

put for question. getting prepared all answer in we because articulating and it. we good the Yes, yes, period [indiscernible] The are been also have in we hard that have is the work

think we've get your of of first dots back back I the me is together. put to discussed already legs of I question all three let to But three all think the kind stool a them. it connecting here,

the those two mentioned and consumer first to the we being where partnership I the wanted in conversion direct to higher investments an channel devote also The investment, around are AEP.

is of in the earlier stool investments, Dave prepared as commented remarks. did leg his third the and agent well Scott really The

place. We capacity that be service in agent we are to we positioned can with very have well able the all service to calls the

a So, QX. for growth expect of we in sure acceleration would MAA and

Dave Styblo

Okay. Thanks.

Operator

Sommer you. question with our Suntrust. comes next And Thank from Tobey

now is open. line Your

Joseph Thompson

little you. question are are Tobey. a for in the you in question. What My rate that these Thank membership plans. this swing Hi the is plans. the acceleration Thank line talked bit Thompson important for first about short-term Joseph is my short-term taking the on factors some affecting you

Dave Francis

Yeah I'll that one. take

could that is. questions see growth the I expect Let term be factors in if influencing the your you short me around understand

what it's think heard. I I

going suggest also discussed So, is. medical that looking and few in because the evidence read we'll and expect that we results are premiums we There all for for things that today emerged the alternatives a And market to to every the viable that previously and people coverage is forward a to major product certain use no people all affordable a month as healthcare. time of about short-term relative has as increasing coverage. to what opposed as

of major dynamics the Given in increasing medical. premiums

think I that one. So is

that increase but ability to from does is those will able apply non-ACA policies many year a almost the And late There's medical impact very factors change change that I of duration short armed know for as plans. entire news that's to you not major kind to does there the to has that we lastly the kind effective mentioned is are see of for subsidy recent first this become And two been very news all in months but allow it been then policies compliant already to with legislative that year XXXX. potential in Second breaking news. this potential its for allow items three be impact term to states of around to short-term. driving

Scott Flanders

increasing this know more the plans survey medical affordable results are towards survey, premiums taking which identify would more in and willingness are a compliant longer short-term significant ACA lot interest look certainly the that of covered the I that a we than points given extensive the a available now less market. affordable in in you we major to in point to sentiment and consumer relative bit a duration plans marketplace increase that the particularly plans to perhaps feel that little the consumers published morning is options just at

Joseph Thompson

what color you think quarter will part you guys. question quarter the contribution think or what from of fourth revenue is commission – you. fourth or commissions do come the for to My Thanks from revenue Thank next revenue. do

Scott Flanders

Good item. guide our line the question. specifically on to We quarter don't

So, reaffirm the portion as portion to our a guidance relative year. do full what we the business we our is did business the And commission for of predominant company. still our of

all I So, say about that's we question. your that relative to think can specific

Kate Sidorovich

to we ago. into we see expect, compared carrier And this a commitments larger also that said growing as we year AEP

look at the breakdown year. So, can you last

is not provide are to specific a the year-over-year We it step-up but rate going growth

Joseph Thompson

Thanks the now. jump in queue back I'll

Operator

comes And Capital question you. from Chardan our Thank Wardell with Markets. Steven next

Your line is open. now

Steven Wardell

question. for Hey thanks the guys,

sales us is marketing wondering that your markets main the can what main about in market, the you tell you and So, seeing more into. I'm sell

and So, – on how that are what's of going market are people in choosing lives How Advantage what is preferences their the changing. changing. Medicare who growing

Dave Francis

more Medicare Steve Advantage previously is creating packages. are are and in payments an dynamic attractive a dollars quick carriers reimbursements market those the comments. one couple Scott environment being which into the Number to mentioned government in the as put investing benefit relative

of that. Medicare is of to available portfolio of So and in the reimbursements expanded physicians, Advantage drug opportunities terms product networks consumers improving all

U.S. to three the within that spread the that you senior mind the the if about are economic generally other dynamic at is look poverty seniors the of XX% in accumulated in clicks The about of of have line. demographic are aside, incomes keep the putting wealth

So, those there Advantage more plans than more rather into plans. of for drive is move an economic to folks expensive supplement

you is to has them. right mind Medicare the Keep plans private just, for demand group, not we the in market That's that XX% And packages any we attractive say plan more Medicare outside the to of Medicare marketplace. alternative benefit stretch in Advantage now. income improved So about demand sensitive the insurance growing senior shrinking put imagination. for a only by are see that together continue for original insurance fact with of the of Supplement private a Advantage that a

that products This So, so able the to the is and our broader both to year continue big demand of across the side side we've we the growing of provide and into of portfolio see community. supplement across a invested strongly advantage reason be business. entire business senior supplement a to

seeing both we're sides. demand strong So, on

Steven Wardell

thank you. Great

Operator

[Operator Instructions] time question questions in at you. do have from no I see George Pardon Craig-Hallum. from a Thank this further me. We And Sutton queue.

line now Your open. is

George Sutton

disruptive make to small group meant and understood that? platform wanted I had being by You sure to you I your what referred

Scott Flanders

process the in agent and to Well enrollment service benefit the right George and an customer of commissions we're engagement who of two into woefully business is physical business. to that agents putting just online. micro that quantity that this ads enrollment, we disruptive sense after enrollment the served now all And that under attractive, that employees in changes automating don't XX from is entirely paper know by of of based market leads generate. and And all based they of in find research in that terms through anecdotally

is commission It's rates of market. the this now half So, Medicare are big a very market.

code small experience. So, we there's for big cracked user a that disruptive if for business on the us market

George Sutton

you it. Appreciate very Thank Okay. much.

Operator

would session. today's Scott the like turn Flanders concludes Q&A now This I to you. remarks. Thank call CEO back closing to over

Scott Flanders

Thank you.

rapidly basis. at Now experiencing. in is a we managed and what has control share previously the improving to that seeing just tracking the basis. upon on I confidence market On confidence based want Medicare what a metrics never that's eHealth are eHealth’s we it's beginning and daily we optimism that based say been we're at future growth I of increasing operating be with as daily on intensity our a And discussed high a team literally level on and we're conclude monitoring by the is seen the now of business market. multi-year as really The and and will what what growing a believe that we is

support. I conclude just by Together, business. to Thank create saying so you. And I all your fabulously going want appreciate a successful we're to

Operator

This for have the Ladies and all you participating in Everyone great today's thank you may disconnect. conference. program, gentlemen conclude day. does a

eHealth (EHTH) 25 Oct 182018 Q3 Earnings call transcript