EHTH - Earnings call 4 2023

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Operator

Good morning, everyone, and welcome to eHealth, Inc.'s conference call to discuss the company's fourth quarter and fiscal 2023 financial results. [Operator Instructions].

I will now turn the floor over to Eli Newburn-Mintz, Senior Investor Relations Manager. Please go ahead.

Eli Newbrun-Mintz

Good morning, and thank you all for joining us today.

results. Francis Financial Chief fourth Officer, fiscal XXXX today, John Officer; quarter call year Chief Stelban, will financial the Soistman, Executive eHealth's and and On discuss our

up Following the with these analysts. we prepared will industry line a Q&A remarks, for session open

a call being and releases will today. on website the call be webcast site. website. A Today's is of with the available filings also Investor later our our news Relations available and section our this historical press replay reminder, from As are recorded Investor of financial our release, the our SEC on Relations

and will are future performance. operating on based statements this financial expectations making current that management's company matters and beliefs certain events our We upon future be relating or call forward-looking to about the impacting

annual this communications our call no We materially. eHealth's any forward-looking future represent could we statements of statements address update views results. undertake results actual today, or regarding statements and Forward-looking business or on or and The differ forward-looking and obligation making including, publicly to as with filings will risks, a on SEC. of in to number call release described most subject XX-K filings today's are and and our recent this to, Form press not uncertainties in our limited but subsequent during those report the be

in measures I'll included Fran Soistman. We non-GAAP are to to reconciliations and comparable turn certain Management's financial non-GAAP financial the be most measures definitions will the release. discussing over also of press measures on those With call GAAP call. directly today's this that,

Francis Soistman

fourth year results quarter good morning, everyone. fiscal and Thank we XXXX Today, discuss and you, our will Eli, XXXX outlook. and

our preparedness results efforts. company-wide and quarter our program demonstrate transformation Our the success of fourth AEP

XXXX. as enhanced and enrollment accomplished to growth was we foundation. in enrollment primary successfully goals revenue that have Medicare our well operational and growth substantially of I significant this to our a quarter profitability improvement metrics Medicare strong a objective, in of year to pleased am announce as a compared profitable basis to on One return QX this fourth delivering

positioned with and portfolio supported Our for technology marketing wider for reinforcement Amplify, and training, initiatives, XXXX brand-building our year a diversified well telesales channels our business. organization and continuous enhancements more of and in execution more has positive this by a promising in momentum expanded of dedicated us an new productive carrier start

business are excited plan as in to foundation our building growth, enhance continue this further pursue on we We diversification. to drive profitability metrics XXXX and

valued has I current to program. Before be to diving highly and on with the to into over continuous XX Americans thoughts million proven operational some our by share Medicare landscape. Medicare want gains performance, traditional seniors Advantage the industry relative share enrolled

carriers continue plan selection, benefits. AEP, this During offer attractive provider networks robust strong to and

the number options average beneficiary plans, Medicare fact, had ever. to In of the largest XX access Advantage

X.X% XXXX, market it the and January when of and As sequentially grew X.X%, representing individual grew X.X% a X.X% from year-over-year, slight acceleration MA January respectively. last

quarter overall nature and regardless eHealth and MA platform dynamics. advisory This ahead fourth enrollments, in evident market agnostic selection succeed great market was customers share providing grew by The our year-over-year, to our match to of growth. of our which XX% plan of competitive allows

their advisers health proposition insurance power to value data staff best tools to needs. and customer-centric rooted free with agents marketplace full-time access of them find eHealth's that help provides in beneficiaries is benefit our are our that who fits licensed

marketing find to our our further strategy The matches. optimal ability market enhances focus sales increasingly plan and local of

and market, beneficiary plan our the are to we recommendations. pharmacy as of tailored get use networks aspects provider improving such unique Specifically, ability to each

enrollment Moving emphasize growth this into carriers publicly several to XXXX, their national on have over plans year. commented profit

opportunity for planned exits final stage and and creates more changes by carriers. sets our next potential for on platform. agnostic we an filings expect AEP, This choice speculate market structure the carrier eHealth to do in for shopping premature it's and While benefit

are We their or remaining may plan networks change. and options should assist their on involve the This right their coverage to depending needs. beneficiaries their or evaluating different benefits with plan choosing individual in transitioning fully prepared to a

differentiated XXXX by in proposition, value in gaining see what reflected we marketplace our more and expect to rational market a our outlook. Given as grow we share, is

also I for on want comment Medicare the year CMS' technical for proposal and contract XXXX. to changes policy

and are efforts respect and eHealth transparency Medicare raising to foremost, already With to this and have full First are fully concerns. specific yet beneficiaries. questions and including the EL, clear. not important submitted protections seeking Industry clarifications supports scope for and increase practical provide implications proposal, participants, CMS' comments

proposal, of seeing, are uncertain. Given the the of ambiguity and the nature we line implementation is time and the combined with complexity the commentary scope

clarification many issues. As as is on finalized raised, await the compensation other it we implemented be industry have we in will questions plausible not especially of it to that participants and this pertains 'XX, and

share at larger. getting It certain that is consolidation appears market issues CMS carriers least is the solve national X Medicare that trying with to of

the this payments in offerings view, they to are are trend our in strength represents eHealth. to and gaining losing platform or eHealth and agents Brokers may manner on consumers. particular, desired in XX carriers the not bring whether over our approaching CMS' share in result of their carriers choice However, speaks plan to their not and which impact. Medicare

National regional footprints rebates benefits Stars more and potentially for to rich offer carriers, local example, disproportionately comparison have and For health in plan CMS plans. performance allowing larger to yields Stronger carriers customers. attract larger them geographic

assessment. practices. algorithm our the the with changes. effectiveness impact we've network to eHealth's reviewed opportunity impact plans Further, players as have the believe essential to over X before around and provider arrangements. is featuring note assess introducing and of it are is to We their we It's care years their and on the past further attractive payment result, implemented and sales marketing industry greater evaluate regulations regulations value-based give public to demonstrate is Based it prudent a other Similarly, typically existing experience agree that comments more carrier MA the significant that beneficiaries. observed blind to to stability recommendation important

fourth areas, deliver shifts AEP best-performing attractive environment. allowing to in now made many Moving growth what AEP, to at Throughout our we performance. the We as challenging dynamic agility margins characterized a into us execution. emphasize operational quarter our despite resource strong

Specifically, TV, search, great lean efforts we clutter was channels our rebranding our featuring and saw contributor including social through and messaging initiative, AEP. ahead of launched success cut effective results channels, paid to direct A the e-mails. major that strategy media our marketing we marketing into branded to the support of to our an

enrollment combined focus recognition on a new strategies Medicare segmentation a matchmaker. nationwide create in trusted as increasing and had Our audience and can targeting flywheel effect periods particularly as we powerful eHealth's TV We campaigns efforts, branding future believe with our impact. unbiased a

We ramp. that care also our the pleased our serve of advisers is our benefited belief AEP, telesales and more witness our protocol further benefit market model. local to organization local During continued that our and earlier enhanced success training reinforces by This can effectively. health from were hiring needs success specializing, customer

conversion this to year-over-year AEP, telephonic reflecting most were length shift telephonic with down Controlling hired We mix increases initiative quarter a attribute significant success slightly and to to the advisers. increased our adviser for towards year-over-year, University. our impact we enhanced have represent scripts substantial conversions. newly larger the a adviser mix, 'XX, seen to conversion telephonic development with which of implementation professional training total our tenured compared rate last non-tenured of Fourth of rates Sales a ongoing plan though, conversion In expect advisers. called rates tenure we Mastery redesigned advisers percentage program, favorable our for on

tools rate increased unassisted online conversion page and of quarter enhancements our stronger and further audience-driven by landing driven more online between fourth user performance, marketing experience. terms our alignment In year-over-year, XX% than campaigns to

carrier during a revenue broader Amplify. Amplify new new accretive strategy diversification the was AEP core with supplementing Advantage expansion Another important of Agency initiative within development is margin our initiatives. of the our successful business Medicare business, dedicated our

to model, This Amplify profile. carriers dedicated improves advisers. inbound needed to and drive revenue and cash the generate our earnings calls marketing flow investment and variable grow reduces our Within our

our carrier to It is proposition an opportunity value to also expand partners.

business, customer in foundation those outstanding delivered carrier forecast. was volumes we this to set successful reflective below came performance expected partners. we channel and that This AEP partners for While Amplify of in for our this Amplify experience

of advisers our volume model, channels we resources, towards in best-performing in agency opportunistically During some mitigating center our Amplify. quarter, the including shortfall call our shifted

with new carrier away significant for added forecasting for for Amplify came eHealth. contract meaningful we takeaways growing Importantly, and an a already have attractive this remains and diversification XXXX. opportunity business and growth

our Moving now focus to enrollment and our AEP, initiatives. experience. on customer we Through quality retention maintained steadfast

improvements intentional the through greater year's AEP revenue year-round just in reflects to to cover LTVs, in Strategies is onboarding in progress make each included customer existing will last retention and XXXX. renewal be our loyalty to year-over-year continue member metrics net establishment quarter our this impact the journey. a cohort, other under and of positive the onboarding, experience factors. the members. to positive seen John overhauling detail. be The program increasingly we the circumstances, It customer seen can in million among adjustment [indiscernible] year MA fourth the recognized program phases of our of for outreach tailored that introduced to more retention also XX% trends which these We engagement in

of performance are some partners, of our in this are priorities very which each as In we year our performing and positive can our operational I'll Generally, briefly we feedback. enrollment in updated quality time line stable for to our top a them of address indicators trends last for we now. the CTM find cycle, earnings call carrier relative internal of indicator. XXXX. terms you presentation, centers early view In of for with experiencing the terms carrier

our by our market grow Medicare for continuing the in diversification. share year-over-year push First, gaining revenues and

cash reductions We as committed 'XX building identified through and through of last our process. greater achievements. EBITDA increasing on planning opportunities will in year's profitability operational and we accomplished efficiencies also further be adjusted This part to fixed remain cost flow our

ratio engine Second, local market-focused and our to drive LTV enrollment omnichannel CAC greater conversions in higher to Medicare our Choice model. advance

will strategic aimed practices. This we our changes to competitive at lead recent our on our brand, scaling plan direct distinctive enjoys towards best-performing no regulatory given marketing channels a consumer in sector We continue with has partnerships. increasingly become generation awareness. major strong mix working where distributor emphasis Specifically, diversifying important a well as channel as branded continue a advantage building brand industry

with experience of of adoption eHealth's beneficiaries omnichannel the ways online, our goal digital enhancing organization constantly our greater driving tools. of unassisted is and exploring

between Our increasing adviser with pioneers at available to room which that quarter. ultimately industry. co-browsing credibility the our AIR on in-person performance. through the builds were leading efficiency while technology video platform allow in will thrilled we're beneficiaries key plans via is personal capability trust, and the in technology. options in We of use the now of our innovation, and broader to or to the building newest touch look And an objective Establishing plan an pilot as adviser in stronger beneficiary maintain interaction to second announce introducing Adviser navigate to often the their beneficiaries conversion is together. and they to connectivity see to confidence

a continue as competitive the Looking ahead, moat, advancing out technology to position we leader our in plan our building space.

our the next launch retention Third, of member strategy. loyalty and phase

earlier, are covered goals beginning I progress of the to on reap and made LTVs in and retention we As encouraging net that higher progress adjustment our revenue. the of positive form rewards

all full support of nurturing, interactions The includes platform, programs. single a across lead our service, with of their tracking This and involves second and with our developing eHealth. journey value-added the unified retention phase strategy including member view channels

unique initiatives increasingly situation retention making to personalized We member's and needs. our each will be

our Fourth, the on value This services. our partners broader dedicated small BXB of to includes that and and fortify that benefit can a growing strategic audience employer scaling and businesses business, opportunities. Drive for carrier partners legacy direct-to-employer our our our our from proposition organizational our from strategic expanding foundation employers focus offering supports strategy

to The part comprehensive portfolio X focused our core growth. Advantage an of Advantage growth finally, transformation launched we future streams business is primarily and business business. and innovative Medicare Fifth important that enhanced beyond products Medicare revenue our on product years Investing Agency in ago strategy. eHealth's year-round drive new

employer MedSupp, including Medicare to and we ICHRA products and scale plan ancillaries, existing services, individual Specifically, plans. and

insurance was eHealth businesses. marketplace as catering individuals to an age established online XX and the of originally small under

through The shifted employer with landscape our Act. towards our leadership rapidly Care position Medicare is after individual us However, strategy the to segment. evolving, presenting reclaim of business rapidly implementation compelling now opportunity a our and the Affordable

particular few a in are There our lines. conviction that business non-M&A drive our themes

by fueled carriers is from growth product individual first pricing expanded and The trends exchanges, attractive offerings within and Medicaid subsidies. redetermination, leading

and Next, the premiums reimbursement ICHRA we individual health see coverage potential or lifted a arrangements, growing health significant of coverage as care. employer consumerization by for opportunity rising

is in Supplement in pare Medicare that focus and demographics believe as uptick an benefits we additional that their down on in Medicare, diversification for certain may plans Within line. we MA carriers an see demand opportunity these product as margins

when I a effectively successful evidenced goals fulfilled XXXX set Through XXXX, of transformation we have established commitments. the company cost our reduction conclusion, of In we results. the in our these important by November and joined programs, as commitments implementation business of and

As forward, forward reporting priorities are achievements objectives. XXXX we aligned look to we commitments in these move with new I on guidance. strategic our of setting financial our

Additionally, will I contributions detail and greater John, and want made strong our fostered now turn recognize our and I eHealth discuss performance the who here have the management over And to that we XXXX team. John? the culture significant in employees will by financial call to our cover guidance. at

John Stelben

and significant consolidated Medicare improvements income year QX adjusted and results financial ago. quarter Fourth operating compared morning. net our across improved GAAP to good metrics. significantly a and Fran, you, EBITDA profit, critical reflect segment Thank year-over-year all

Importantly, exceeded operating fourth XXXX of in Medicare cash expectations, reflecting business, retention year our and factors. quarter full trends book flow among our other favorable

quarter XX% improved Medicare quarter Fourth member year-over-year million, and segment driven growth, $XXX.X revenue revenue. revenue $XXX.X or Medicare up strong adjustment representing year-over-year, million, performance our our Fourth increase XX% within by LTVs in segment. net reflecting positive growth, MA 'XX was tail was

XX% 'XX. revenue XX% in revenue QX and QX total grew of both segment grew tail revenue Excluding compared 'XX periods, Medicare to

Medicare in XX% market-wide members approximately enrollments Medicare Advantage of away growth and view and XXX,XXX, D applications, Total part to quarter as in increase members approved Medicare XX% a drug continued Part an Fourth year-over-year. Supplement decline approved from Medicare reflecting stand-alone of which we Advantage approximately a were XXX,XXX, grew year-over-year plans. shift

revenue on to XX% persistency MA also increase in of Fourth quarter. The QX drove as improved is mix dynamics the Positive and cohort AEP on quarter reflective as in primarily Medicare with year-over-year favorable our of during existing enrolled carrier value our positive 'XX increased we Advantage retention lifetime X,XXX. along of well contract book business, mix. tail collections cash strong the LTV

moment and GAAP, interdependencies we future U.S. reversals or In values, specifically spend manner with Member like that of lifetime a tail business. between makes our significant net cash now explaining XXX, in accounting our to LTVs revenue record important a the flow. a guideline, in with if adjustment to I'd probable. other the In means accordance factors, actuarial metrics several expect to initial in retention, revenue revenue negative receipts we, generated would models. to the order this our by life of not periods future cash That among constraint that initial we satisfy cohort. are recognize apply X% over Medicare Advantage tail line unconstrained standard estimates,

our are in adjustments could may of that to be process. that either initial there are the basics estimates other or meaning lead revenue While factors future negative, these tail, revenue positive recognition our

and is by that estimated Between on period basis. we what XXXX the revenue an products. over on which approximately a all and have constrained unconstrained XXXX, difference constrained initial million was our $XX revenue recorded between basis across would

And from assuming through a already of in high on prior XXXX its expectations. Some cohort of line likelihood constraints, unconstrained we years. with statements, and my these previous our see based tail has performance recovery future that stemming in come

'XX revenue improving is in given our XXX, manner year tail a process. retention U.S. book $XX.X high we This in 'XX. stable to to tail policy In and and ASC our to GAAP $XX.X $XX.X positive 'XX, with of Positive and speaks a fourth million fiscal QX including in tail revenue commission of base year the recognized in Again, rates accordance outcome asset total testament a accounting of revenue this to our million expected tail $X.X contract of initial constrained an in compares quality in million is quarter. member within given the million of or receivable. under trends

the notion. guidance our operational is of with The outperformance operating performance well flow, discipline, strong an In drove in which cash range of simply combined also business revenue our above our and a continued in of came for accounting book XXXX. trends sum, not business, reflection on tail existing year cash key full cost

quarter member. contributed costs quality and to Strong the increased variable spread the LTV unit and also marketing measured margin, enrollment total CC&E between fourth approved MA as per

earnings can of and built on we 'XX see 'XX. presentation, in significant of in improvement our margin QX you in achieved quarter As the expansion that fourth

non-tenured look strategic enrollment year, closer partner from larger larger contribution a equivalent dedicated our including to relative carrier year-over-year. CC&E margins. channels. with and advisers, at Taking anticipated Fourth per quarter coupled MA in This by increased XX% was base last lower approved a volumes than meaningfully adviser driven member our

for XX% in volumes. for staffed QX While higher XX% and even Advantage, grew Medicare our overall year-over-year apps eHealth of Medicare anticipation approved

Medicare This from was and of a costs of per marketing positive rebrand. in leads X% behind marketing of was online approved more and of increase and result greater also more decreased customer a channels, drivers our measured which MA online, member campaigns believe by high-quality our which than an X indicative AEP spend variable between direct equivalent the our we saw year-over-year. impact the of experience, conversions. to a coordination approach This unassisted is the XX%

fourth member enrollment X% $XXX an compared 'XX. per MA in and to QX quarter QX approved XX% acquisition in increase margin 'XX QX of XX% equivalent was total of 'XX Overall, XX% year-over-year. cost of was

our metric million which cost contributed savings We going compared expect expansion forward. was fourth year-over-year and Medicare million quarter $XX.X profit, improvements to million margin make of a 'XX. $XX.X further in $XX.X of revenue A in QX tail enrollment to segment this in combination fixed increase to

E&I our to move now I'll segment.

$XX generate scope. Fourth this are discussed, in foundation as the $X.X of flat a quarter XX% Fran retention IFP did by business to and we LTVs. segment revenue and investing a decrease its The are our trends of area continue observing on we in was revenue reset million, medical decline tail year-over-year, As year-over-year million enrollments our broadening in major primarily favorable segment products. roughly driven legacy

profit compared relative that $X.X Despite its to smaller going we continues Medicare, believe million contribution our to attractive million to this segment segment quarter was be margins $X.X to revenue Fourth overall year ago. a scaled forward. generate can

our define and million, increase expense, restructuring Moving fourth was 'XX. profitability marketing of QX operating roughly XX% compensation and a and metrics, fixed to which costs, impairment technology combination which and fixed non-GAAP stock-based consolidated we content, quarter charges general $XXX.X compared and administrative. to a excludes and flat as total expenses reflects This operating of

the reflecting side, demand enrollment growth was we investments growth, was EBITDA count within ago. cost reflecting QX as our increase year our variable a our adviser XX% CC&E increase XX%, advertising on and fourth compared in agency $XX.X And dedicated and from On segment. increase and of adviser return businesses. demand in income in basis, MA $XX.X GAAP a of enrollment head quarter QX grew Fourth increase was million our an our in Total million, effectiveness million year-over-year $XX.X than generation non-GAAP smaller to non-GAAP to strategies. $XX.X quarter net The million, greater in generation an Medicare compensation expense 'XX. in in our consolidated marketing QX carrier expense of adjusted

$XXX.X X% full representing XX% or XXX,XXX, XXXX, decrease Medicare a of X% revenue X%. total the or Total Medicare-approved members increase a XXXX XXX,XXX, year year-over-year approved of decrease and representing increase million, Advantage members For [indiscernible]. total XXXX and a was

much demand of pulling and entered our on of transformation run spend XXXX temporarily a significant year. while 'XX in we execution This terms lower cost and generation the plan count prior in back growth. implemented April adviser versus is business that reflective head rate focus Recall our our reductions on on of

adjusted million, declines the the quarters fiscal $XX.X GAAP income on net enrollment GAAP $XX.X excluding fiscal profitability with income a and $XX.X to or net both million, result, $XX.X year basis, $XX.X million basis. year-over-year million and EBITDA As GAAP year loss to when improvements an and EBITDA respectively, compared $XX.X show net a improved revenue. a combined On of 'XX first tail year-over-year improved million to year adjusted of of 'XX improved million

ahead 'XX our range cash 'XX negative guidance improvement year to was operating flow. $XX.X cash a of cash relative million. of significant flow the negative million of end well Fiscal high fiscal flow a and Moving to $X.X operating

is the expectations. cash a I LTV at understand earlier, recognition increases to and critical it direct tail or estimates As are collecting of result constrained mentioned revenue above of in our

$XX.X cash negative $XX.X quarter was flow a in of QX Fourth negative versus million 'XX. operating million

policies financial ended believe our our a sufficient We We investment operational we QX. commission delivering As AEP-related the year marketable come have during of objectives. liquidity equivalents and reflects these quarter with reminder, than enrollment while majority in fourth $XXX.X and initial more cash, growth, payments cash securities. in million on the continue in from to

contract and in form The ago. from QX of $XXX through This and short- contract our combined million reflects a revisions income was ending long-term position that the the asset asset year $XXX enrollment upward of flowed statement receivable our million up to revenue. growth tail

I'll financial our guidance now XXXX. review for

$XX We the million revenue of million. million the of range $XXX be in $XX net to to loss range to expect to [indiscernible] $XXX total GAAP in be

growing EBITDA our expect in Operating expected $X positive million. be to of agency the Medicare ranges the range $XX We to $X million million flow our based million. to continue on negative dedicated platforms. in across These to enrollments negative of cash plans range and adjusted negative be are $XX is to carrier

towards reflects with first percentage eHealth. Our mix cohort positive 'XX year of tenured the enters the a shift in of advisers impact adviser their year second also greater advisers as large guidance from hired we

also This speaks adjustment ultimately, the and of for constrained. the to expecting brand marketing our tail cohorts that stability our our was an reflective again to estimate member of traction positive the revenue quality are $X range million of strategy. of impact million our positive of and potential revenue from $XX previously enrollments. net XXXX the revenue ranges continued guidance expansion channels We in a best-performing of include

revenue midpoint adjusted of fourth growth that the our to expect in income EBITDA EBITDA. the years, Medicare in the will approximately be positive last and of in tail reflecting year, and quarter the business. Excluding generated Similar a we net seasonality the improvement of 'XX, XX% impact all both our XXXX adjusted of year-over-year GAAP guidance substantial reflects

business Fiscal year enrollment in diversification. XXXX cash and Medicare flow guidance growth reflects our investment

We be This to positive compares for $XX.X XXXX negative breakeven million reported ending operating we expect ended of March months to months XX the months trailing operating and XX XXXX. to flow for trailing the cash ended cash for trailing flow around March generate 'XX. XX March the

Looking of ahead on [indiscernible] revenue enrollment we to QX an in 'XX, basis, larger quarter relative the to to of first reflecting 'XX, our expect the and volume. teens increase benefit adviser count

We Operator, slight open also expect Q&A. a for year-over-year in line please the improvement profitability.

Operator

from [Operator with Instructions] Our George come first question Sutton will Craig-Hallum.

George Sutton

to appreciate I CMS the interesting we some you let's interesting a letter some from lot CMS. the other of of Fran, to on what had evaluate And you just and details of curious these sort a they thought changes. to And that all actually be other ideas. if any, wrote to chance carriers got make both relative give able call. from And I'm if changes very the response work before you a a open

Just got. curious response the you

Francis Soistman

Carriers surgery. received unintended consequences there more outcome. think from for and an addressing before regulatory previous haven't number of time CMS. for before were that secondly, concerns expensive. year new support major then the a to -- anything disruptive, changes a the the their and AEP that didn't be really were environment year very in affect sort media about in it's beneficiary confusion. put after less good expect process. supported being for more to follow it year because the well, and It's nevertheless, to And in largely surgery, overwhelming have surgery use of I one, year -- the invasive regulatory place Thanks the hear of the the to those really as terms end, I they face lot George, And question That it challenges but was a it's got of to. letter same attention of through question. we or tends usually social op you. is in ed

of things now, that's clear we it. doesn't like about up, and some it I the muddies world actually more. [indiscernible] right think disclaimers, not So minutes right the but They water, it's in But mean beneficiaries the out gate. of [indiscernible] live very customer-friendly. don't

senior. am I a

same I of I know their and lot experiences. who about think And friends you age talked I my them band. have a frequently that, with

expect do by mine. And [indiscernible] just fairly so I Advisory Council, pended it's my we follow governors [indiscernible] think But shift Policy didn't that Council, [indiscernible] widespread. at been former Public opinion, to carriers. it's it well they that X and let have know has but will [indiscernible] Advisory not I I our initially, will goal received X have person's you

before lockstep So that would regulations X out in Republican one highly they're governors, to but new respected this on representing And policy, be coming follow. democratic likely week. regulatory this affect environment. representing ones these former absolutely policy, are one And giving a chance

question. see answers me let your if So that

George Sutton

about. that I'll comment worth. from candidate would about clear a obviously And something presidential about be you talk here they've -- U.S. been just relatively to to did for young think I'm I is I which profitability want enrollment that's tell your great. for That's carriers, you the over what

read as see it money larger as could you positive try effectively as more a after therefore, you. the to are the be I were saying? increase suggesting moving Is the for spend around. wouldn't exciting shopping to not go less the to which and beneficiaries that amount would for quality can you're because options what of necessarily of planning that I You believe carriers audience, that

Francis Soistman

it where how I of the itself very the I career sort of side, is they on play I out largely, spent And and George. grow. occur. likely grow they're most will that again, they it think know playbook I and carrier my you've situations captured that and think when disciplined these about

I rates get think get So pressured. when margins tough, that

and X.X%, the to in an X%, that benefits going that will grown X.X%, still supplemental plant changes You there. where preserves should beneficiaries opportunity create alternative to see let's if closer to rich are consider there's going versus over benefit years. last they've [indiscernible] the a accustomed they That's few more see that see [indiscernible] volatility some say, you're to than markets with to

that very previously. there national changed. the see share the where and [indiscernible] think they cost focus will to favorability because dynamics unit have and that be carriers the have be it can They have could -- provider strategic may growth. I had they don't

we'll that exits. will I to costs. that premium the at the introducing I And be preservation a do be would continue So sales I eliminates [indiscernible] think and all avoid product some paramount. [indiscernible] that to very market think monthly It premium to disruptive. barrier will see someone premium think of carriers

Operator

come RBC will from Capital. Hendrix Ben question next Our with

Michael Murray

Michael This Murray on for is Ben.

So you lower I'm if just increasing And in if head count but anticipate agent saw members year? declines you're do I approved guys MA sorry you headcount. missed this, this giving

Francis Soistman

actually we quarter. in year-over-year the Michael, fourth grew

that's [indiscernible]. transformation So our marketing were full the with of -- effect when new leader place. in We of the bringing on reengineering started went area a -- because by of last was marketing, 'XX, and in November design it

her So team, nicely very, fourth implementing new quarter. saw in that rebuilding strategies, the very we play out

with progress. So that I'm of thrilled great demonstration

little than it's business. be to going a different 'XX Amplify because in 'XX [indiscernible], our The of

will customer. because But more So be agent a we're on be new business, resources the we'll flat. bringing our nice on be growing agency we side will for Amplify relatively

agents. a a influx have larger experience me point had also better. And where new with to base agents let -- we other than a flat what much to in tenured the will more modest while our large Michael, In be of of we had XXXX. words, proportion out, be relatively that increase, new [indiscernible] we agent And will we'll relationship

AEP. let's believe conversion and it, help to going So deliver with the performance that's upcoming at we

Unknown Executive

Michael. Yes,

we year is So the carrier the that very bar. choice, which and between that expect revenue how this provided break in be again our growth midpoint but roll agency in of will the We the spread enrollments don't Amplify, and be guidance. will this probably growth of out to to sort the unit overall similar dedicated grow

Michael Murray

then Okay. the That's really X quick on cost side. a helpful. And just

throughout customer see increased Regarding that should those the -- XXXX? we enrollment, for year. to and that thinking care about costs how wanted be increased I

Unknown Executive

year-over-year. absolute again, The due will as growth the earlier, a mentioned up is XXXX side, the Amplify business agent in bit counts predominantly would guidance, In the while Fran some customer what be agency the say to saw little 'XX. Yes. year-over-year, on in other terms in that I 'XX the absolute in and [indiscernible] over you less dynamics be will new contract there. in increase the than

to MA should do LTV going of expect you see CAC quarter expect just we expansion to in was to 'XX. on quarter of our continued I -- fourth versus fourth say, 'XX in

Operator

with questions, further I'd no closing turn additional to any Soistman for back or Fran remarks. And the Instructions] call like to [Operator

Francis Soistman

operator. you, again call. thank for I want joining our thank Well, to everyone Well, earnings

throughout the am confident a with continue to to our everything As momentum new we year. organization's to courage we this make I in industry and navigate XXXX, battle-tested brings do the in to ability seize changes dynamic that necessary. opportunities discipline build This team when is

innovate growth, very you steady forward will needs We foundation coming on As look we much. in beneficiaries of carrier our eHealth to and builds you to profitable on quarters. continue of the Thank our updating to reflect the partners. our progress

Operator

you and participation, your for you Thank disconnect. [indiscernible]. today's conclude may now will that And

eHealth (EHTH) 27 Feb 242023 Q4 Earnings call transcript