EHTH - Earnings call transcript Q4 2024

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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 year 2024 financial results. [Operator Instructions]

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

Eli Newbrun-Mintz

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

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

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

reminder, will being recorded this our later be Investor available from and replay A is our today. of on section website. call of a webcast the As Relations the call website

SEC are press our the Today's our filings Relations Investor news historical available and releases also site. release, financial our on with

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

today, obligation results undertake except Forward-looking materially. We publicly differ to as and actual any call statements required as on this forward-looking no could or represent address update eHealth's law. statements by of views

making a limited and call we our statements this our are report during most forward-looking described recent those the to, including, to subject release risks, XX-K with today's annual SEC. in will and The subsequent and Form press in uncertainties of but be on number filings not

be these most financial this measures non-GAAP certain Management's definitions included in to call. are measures of We financial directly release. also non-GAAP will reconciliations discussing and GAAP measures on the comparable press today's

to Soistman. call Fran With that, turn over the I'll

Francis Soistman

our delivered platform outstanding the a our of growing and materially of omnichannel success and you revenue performance testament eHealth, us results, thank morning. to benefit AEP agents Eli, transformed our or including the you, the eHealth our joining the to Thank is advisers license enrollment of expectations innovative everyone exceeding This prominence and earnings. brand. volumes, exceptional for this

the and into increased we and revised end guidance earnings early our adjusted morning guidance for results our our earlier this reflect read execution. December, The revenue, published XXXX significantly EBITDA. high earnings AAP of exceed In to upwardly revenue

model by to substantially the amplify Medicare a submissions well XX%, submissions growing compared across improving XX% grew revenue agency while year market. agency this enrollment Medicare margins. our and above grew XX%, growth models our fulfillment quarter Fourth delivered ago. We overall with

the we GAAP the Importantly, XXXX. and basis year full for a on quarter net fourth income were profitable

adjusted Our of ago, expansion. representing a quarter EBITDA grew fourth compared to excess meaningful XX% in a year margin

reflect to In market execution dynamics. of relevant addition made the believe choice more much beneficiaries. value operating unique carrier-agnostic these We results our proposition of these to teams, remarkable the our dynamics platform Medicare

unprecedented faced as market as we changes AEP, exits. changes outright offerings well trends This observed benefit included higher causing plan cancellations to as them well carriers disruption strategies. as MA to regulatory to premium medical cost pressure, and material as plan This their and make

to better a many and opted needs. that demand assess we their As their coverage cases, as for result, plan in suited a elevated beneficiaries saw consumer shop

At time, exits offerings our due the reduced industry stage over for the annual where the same competitive stand past was to was out. Medicare years. to and capacity set X the period primed Matchmaker an This enrollment across downsizing

a plan suppression, to sometimes commission tactic their Additionally, control in observed we carriers enrollments increase across offerings. an use

plans every degree our the some within agency carriers year, strategy able our navigate these successfully was carrier-agnostic to was model. particularly happens selection XXXX. suppressions in This pronounced eHealth with broad certain to of fulfillment and our but given platform on

And for see XX handful months. may result, of brokers carriers. a more challenge the just greater as a supporting competitor next over exits we was It a

guidance the attractive sales the provided demand range generate on margins adjusted margins During to implied to decision investment. exceeded lean operations our in made August. consumer this and we an AEP, high capture. share in us EBITDA by strength strong substantially scale environment invest of end market strategic on and we the of XXXX and in The the return allowed marketing

Through streams evolve base membership their as generating coverage. as that our expect we to return members building long standout will and commission and they new continue if a platform we're for needs even select strong quality, remain brand service on our

members enrollments in engaged also members touch vast our the of new a points. successfully majority the fourth represented of we While variety through existing quarter, our

these to For that beneficiaries, needs. many of are build fits we a they confidence when in their best plan aim still

or to We impacted also carrier are cancellations well experienced identified and exits significant who members those market as and plan benefit reached by premium who changes. as out

with to in membership, successful their help was eHealth these while these maintaining them beneficiaries find new efforts. we we Our largely goal and were plans believe

tools adviser support, live to could members to assess online options. changes their understand Match In monitor we proprietary and as their provided benefit such addition better so that coverage

strategies member period, critical they proactive important this were enrollment any especially retention these While are during AEP.

some our now to operational achievements of that quarter fourth Moving the drove outperformance.

messaging a on Over the X channels marketing targeting compelling has direct eHealth's our building past organization that differentiated as been our audience transparent trusted, adviser. communicates areas, years, including offering and brand focused building, fine-tuned key remarkably through

enrollments increase in unit Enrollment brand a economics. XXX% attractive fourth XX% quarter aided recognition prior enrollments the channels to increasing with -- drove growth metrics our compared Our competitors marketing showed awareness improvement from year the in branded to year. growth resulting in our in compared and channels ago channels total over a outperformed marketing marked direct corresponding these QX outpaced highly direct spend,

The over-index This towards On of our channels persistency. our digital in online drove customers in also significant enrollments. a LTV channels direct results that direct our most are fulfillment our higher converting standout greater unassisted performance applications, increase method. higher average, with scalable

XXXX MA to 'XX. demand percentage LTV grew total a in strong saw audience, compared also higher We application of new to which as volume customers, another from

in XX% ratio from to XXXX, QX from grew X.Xx in XXXX XX% Advantage to QX Medicare unit Our grew Xx for and period. margins same LTV CAC the to

and telesales large our take our inbound Preparedness, key this AEP. to of were advantage benefit organization. to enablement licensed Moving volume ability to advisers execution the call

the benefit tenured also number fulfillment effectiveness resulting in advisers brand of advisers, within of a model. year conversion substantial of year-over-year XX% compared seasoned In new and between greater to the addition ago, rate our gains we gap a to having agency narrowed

that empower with to enhance productivity innovative services. tools differentiate their advisers continue and our We their

Advise, exciting a that For example, larger to during resulting increased we the enrollments new advisers, this in utilize extended Live technology. number of video our one-way for chat QX, conversions capability

Our were digital capabilities AEP also our essential to success.

landing seamless quarters During in the shopping the into XXXX, matching further within we first on customer experience and from ads invested consumer X shopping included of of our funnel the online a flow experience This with tailored personalizing our with platform. intent. goal pages streamlining platform's our more

we the left past and Through visited action our them in returning was for area cross-channel pick targeted to focus platform who Another users visitors. a consumers friction up return points they off. took allowing remove to where by effort, coordinated these

applications During QX XX% ago. fourth online unassisted more submitted XX% to online in increase quarter, them to at the resulting a our and platform drove rate, year in visitors a a we compared converted greater

to also engineering in way on management from AI-driven allow our going generative will We projects which automating will across that our These be including manual peak of our teams, will especially for our by content established efficiency forward. process several enrollment have AI help center benefit driving our the help exciting AI to excellence, works We better, the our of all help to the guide of led serve organization in which season. and plan licensed newly digital increasing AI us initiatives productivity leads beneficiaries screening and the our add believe data can call processes, advisers, platform to the prioritize XXXX. off handing and days

Moving to fulfillment carrier-dedicated Amplify, our model.

favored environment QX, in the choice broad During with selection. below volume Amplify We market carrier came a believe platform expectations.

Additionally, BPO fees were arrangements. more focused which our under Amplify our margin carriers growth protection AEP, than were of the limited paid on success we enrollment

cash the it plan environment competencies, enrollment to model, scaling that agency time, We our At believe benefit our upfront rate lower allowing partners. customers. new this high at the enrollments metrics and and we continue same will rates and investments quality and platform us to drive conversion continue both improving leverages deliver with compared we with BPO Amplify an regulatory to to MA for existing model. core

considerable and favorable Our values, Med quarter a business and up with lifetime had in mix estimated reflecting X% a increase year-over-year Supp carrier retention. strong submissions the

enrollments also and driven by ancillary product dental vision grew products. our We

see attractive economics. at and Medicare operating the financial disruption, navigated eHealth our As scaling our sector you successfully business results, and from taking can market share

We Consumer our a given to us, are strong we competitive demand nimble, scalable that represented a arises. be strong and are confident leveraged trend for position we can on remain ready tailwind and this momentum. when building to financial opportunity continue this the into that for growth in platform lean

belief ready in Medicare will administration. that the expect changes to Looking in more the this environment years It opportunistic is regulatory environment. to over our relative to are be Advantage Medicare next ahead, prior underway the remain market fluid we X the sector improve the with and

the be as will marketing rates indicators early PDP final MA final in second rules the Importantly, quarter. expected and well MA as

pressure continue margin Additionally, to carriers within their MA communicate businesses.

QX. Advantage behavior on improve next ahead will them will dominate it remains dynamics and enrollment decisions their a last impact of Medicare While seen of have plans many of decide be action strategies took what Their consumer carriers year, to offerings to geographic profitability their on direct as season. plan

the XXXX. bottom year, that for it's environment of the the this in demand AEP to predict consumer The hard early line is given this especially uniqueness

taking result, a a As approach outlook. to our we're balanced

are guiding are to relatively year. remarks, that adjusted ago. revenues point a assumptions X-year John corresponding detailed his would revenue like compared in we point, year that to and we operational guidance flat starting against a provided will I the and As the EBITDA to provide we targets out last nicely tracking but

adjusted EBITDA impressive XXXX to the XX% our between margins It the revenue into on demand grow targets we reach Based EBITDA the to to at X% attractive In and of EBITDA midpoints of CAGR expected goal CAGR our growth These XX%. be XX% an leading of XXXX XXXX, X% XXXX. with CAGR XXXX pulled an XX% of X%. environment. XX% the revenue to also is forward and to ranges, some adjusted implied to XXXX implies X% margin by an guidance adjusted included

diversification. with XXXX generative cash a Medicare through priorities and business to in targeted Our profitable strategy our Agency align scale Advantage flow X-year strategic build services sustainably differentiation

as in These presentation. found be can follows and earnings priorities our are

our to core our First, Advantage beyond extend marketing we Medicare products. brand expand and recognition direct brand aim all across channels our

retention plan to transcend individual and lasting specific interactions loyalty products. relationships recognizing strategies, and customer our we enhance that Second,

focus industry-leading tools. career telesales support, brand programs, providing with by organization our on training technological Third, advisers our development and opportunities we'll optimizing

individual base revenue Fourth, to which serve to to finally, delivering critical dedicated in XX expand investments key ancillary ability services. products I'm employees diversify is technology truly care our AI our confident and part be are It and through this and advance Medicare this our of health including strengthen better for Fifth, journey an targeted on to and consumers, we team's Supplement to to under continue carriers. we agency we carrier family, and in eHealth organization, all Sixth choice improving to relationships, and our millions leadership aim plan of and plan while the digital Americans. time goals stakeholders, our carrier employer model. exciting

our I company our teams exceptional extend to culture success invaluable management employees and their want for acknowledge also to to our in XXXX. and my contributions gratitude

to greater guidance detail discuss fiscal for cover turn our over call performance our John I'll now John? in will Dolan, financial XXXX. the who and

John Dolan

the a you, dynamic fourth described, Medicare profitability. volume achieved while quarter that demonstrate I'm exceptional report and market. significant everyone. good morning, and that on in strong pleased our Thank results macro growth Building catalysts enrollment improving Fran we to execution internal Fran,

and fact, in In we quarter any company's of revenue record net high record the generated history. high income

the on our making During to by the stronger-than-expected annual consumer we capitalized pursue targets. growth enrollment strategic enrollment period, demand beyond decision initial

between our While to this investment larger which our begin due receipt enhanced costs of payment than cash earnings and in and necessitated timing of initially and acquisition typically payments, the XXXX decision QX. upfront commission forecasted a revenue the

years We are be that have member to recurring will for come. a generate commission deliver to what cohort confident that this acquired high-quality we we believe substantial will as value strategic choice payments

helped to record $X with noted. a year-over-year I'll XXXX. of growth now drive unless as XXXX million year-over-year highlighted billion metrics Specifically, excess XX, comparisons share $XX all this otherwise commission fourth new cohort in receivables of level quarter December

Fourth high revenue record XX% to million. quarter a $XXX.X increased

quarter or TAL periods, both to income up revenue of grew level XX%. XX% million, net and the $XX.X adjusted XX% adjusted increased XX% million, $XXX.X net adjustment from record revenue the $XX.X Fourth a million. EBITDA GAAP quarter. grew EBITDA was margin Excluding in for to

per submissions of for Submissions revenue agency Medicare Our our higher enhanced XX%, Total in improved customer plan model offerings. platforms reflecting with by and performance Underneath its Medicare broad telephonically increased variable Amplify consumer and grew Medicare Acquisition quality fourth both online driven cost XX% business current XX%, enrollments. Medicare delivered XX%. approved segment significantly XX% market across quarter marketing member conversions, preference approved platform. that, $XXX.X per member enrollment in rose and cost fulfillment cost lead and improved our care best member million XX%. years. and through per Agency approved improved

to Medicare lifetime Advantage ratio segment $X,XXX. increased $XXX.X last million. from target profit Medicare quarter exceeding of was increased gross value and fourth to X.Xx improved to our year. X% LTV X.Xx Xx, CAC in the meaningfully XX%

with down gross $X.X Our profit segment segment million. of XX% revenue was E&I fourth the in quarter $X to million

XX%. Excluding quarter tail revenue, fourth declined revenue segment E&I

to we employer our the resources Medicare toward strategic AEP opportunities Advantage the conviction growth. strong during XX and markets, under maintain decision made we allocate While in in

On fourth total which our of million revenue was to came a quarter The to reflects business, tail constraint. year tail brings including, in $X.X segment. to significant be compared million tail This to our from excess a related not limited basis, recognized initial collections ago. There million, $X.X $XX.X our million unrecognized XXXX consolidated cash book Medicare continues we but positive Medicare original to, estimates. LTV of adjustments continued our $XX.X of

and non-GAAP and excludes operating and considerable and QX, non-GAAP include X% reduced were expenses, stock-based in our X%. we and which and growth achieved which combination technology costs, content increase. restructuring by a Despite quarter marketing advertising impairment non-GAAP and administrative our QX X%, of we increased $XXX.X general by Fourth an million, indicative compensation charges, the increased fixed our force enrollment adviser number year. larger compared larger to for customer enrollment spend revenue and our driven on year. marketing of same care to last notably XX%, of much the compared smaller agents a QX than retention growth screeners and rates and greater non-GAAP period, last much our return

full our of substantial year the indicator of Turning a GAAP to this profitability consolidated has XX%. over to XXXX a on our Annual years. made $XXX.X the X return and revenue basis, million past marked increased financial net income progress highlights. achievement organization

adjusted $XX.X revenue full XXXX year grew revenue adjustment an for net increased million year, margin EBITDA million. was TAL, of net XX% improvement The over the XXXX Excluding $XX.X and million. or year was a EBITDA $XX.X of ago. million, XX% adjusted increase a income $XX.X material X%

X%. $XX.X Excluding non-GAAP increases for in and non-GAAP non-GAAP million and full XXXX decline adjusted included the TAL expenses Full an were revenue, and improved year by advertising marketing costs, fixed operating year. EBITDA CC&E XX% XX% non-GAAP This $XXX.X respectively. million, costs and X% up in

year marketable the equivalents in million $XX.X cash ended and We cash, with securities.

AEP of quarter cycle, year is As QX of expenses. balance a to end cash the the low seasonally reminder, seasonally is the related cash AEP reflecting January. collection commission payments our begin point enrollment in highest our cohorts as

of the sheet meaningful XXXX to December. this cash as relative will end balance first quarter increase of a of expect in yield We the

while sufficient capital we execute structure. continue strategic on liquidity such, we improving plan towards our to work our we to believe As have

Torch, our lender, the discussed reached by call, As pursuit the the best-in-class and of solutions will year strategic quarter. million took quarter's I structure about going financial for terms. of change philosophy will Thinking extend X more flexibility last the capital provide that an maximum on guiding with XXXX. to now a we under our during term capital our effect our is review guidance available slightly agreement approach This forward. favorable broadly, to $XX more fourth clean, maturity financial loan Blue

in million. revenue of the million total range $XXX $XXX to to be expect We

of million. in of net the of loss to range million a GAAP a net net expect income $XX $XX be We income to

range and in We million also $XX million, negative different net is EBITDA adjustment These be $X of expected be million. to to flow operating than expect $XX as past. I like positive additional would range to of provide in contemplate cadence color it to $XX is regarding the cash in in to million adjusted range the quarterly be the of $XX positive revenue ranges to to $XX million. the expected

year, is the in the described trends supported our while propensity of seen post expect reflected This seasonal expected in to This and is currently we in demand larger growth activity our the time, primary the do to volume enrollment our that consumer level call number see enrollment QX remain strong consumer by enrollment shop to same to retain of annual we decision elevated will coming as period. expectations. AEP, XXXX. not advisers the be in expect quarter, nearly a earlier At same

regulatory recent have or D-SNPs QX no portion special changes, longer be their plans eligible change a dual QX and plans represented basis. beneficiaries our Further, quarterly will due permitted of considerable most D-SNPs, a to to volumes. on needs historically on

a our to during we years. past spend reduce these to result, As plan MA-focused marketing quarters relative

summary, AEP approach a when ROI, In exceptional a year, we are XXXX. after scaled we our member measured at attractive in highly more an taking base last

unit in further our will focus we third-party from channels while leads. increasing Specifically, continue economics marketing MA agency contribution reducing our to on investment business, the branded our in

also our incremental in initiatives. investments diversification will We make

as percentage in on is expected carrier this particular, what scales. business, currently in we new matures as expect below to business will it model, The continue margin revenue as improve we channel dedicated Our grow it a of is which XXXX. is the total agency in to a side generate and

QX, we the a through long-term XXXX. costs and quarter team QX reiterate, on in by followed To to increase our revenue to we forecast XXXX, collections to flattish impact a CC&E QX but in compared retention currently cash fourth enrollment plan headcount retention. expect we in quarters to which member positive and same increase Additionally, in grow have declines and

deck. initiatives in profitability, same QX It remains of to underlying lower EBITDA high the single in the currently improvements some summarized to the note decline agency environment our our to important given performance, for relative diversification reflecting improvements be and In is outlier loss specifically, in in XXXX a somewhat QX the investment adjusted digits earnings dollars. In has terms to terms metric EBITDA in and was is market periods quarter this through monumental organization in full in year of operational trajectory millions QX, an our We resulting historic each ago. volume and adjusted of expectations year we while the expect of made. forecasted these strong, that of

to can As showing we financial significant wanted which expect Fran reaching of in as mentioned, adjusted XXXX. into May I tracking to to you which EBITDA XXXX out see, EBITDA X% midpoint, especially are X% we are And the goal call our X% progress, provided guidance our that and to targets at we XXXX. of margin to the ahead year. of of last continue XX% in we margin by adjusted X-year compares

open Operator, please line Q&A. for the

Operator

[Operator Sutton Instructions] Your first Craig-Hallum. question is from from George

George Sutton

Nice results.

a wanted I mentioned had angle. or better the look we would better. we XX-year-olds competitive regulatory at the number a 'XX remain When the aging following competitive of have Fran to scenario, So which in to the expect potential from environment. in. should have we we good as about, I'm scenario macro curious overall And talk expectations but good certainly through exits,

the this process bit in year. terms somber So growing of I'm a a of business curious thought why more there's little

Francis Soistman

I the it question. as characterize wouldn't George, thanks for somber.

the the And change it's President XX new days in term. pragmatic that is there's a given administration. into think his I

forth. the seen cost of and improving efficiency to so So a government, out taking at pace rapid change aimed we've

we satisfied is of supportive and was know Trump MA, that confirmation Medicare term, while learned that administration he is Kennedy we is Secretary member in very the through a plan a the So member. the Advantage know we here, first very of

said, has that We also supportive Oz Dr. know been of it's question priority that a rather of MA timing. -- and

advanced rate because So inauguration. occurred that in the prior the until bear advance to -- greater evidence mind notice the we see in increase the

whether happened reduce during be Biden seen administration or that Trump remains the So that, maintain And improve it the it. to will administration. potentially

bullish as very Medicare the line at look Advantage. see Trump is check-in a April time to important administration that we just So on how

Kate Sidorovich

also the annual look George, you I high. activity enrollment if say wanted was last all-time to that period, at switching it

conversion just rate volume, reports, another already were industry high to it seen If a high, historically with year at you helps in look all margins results. this propensity at A convert It XX%. condition was rates because switching demand able have our platform point, also our the switch. to with ago, year amazing set It was of QX enrollment you've even that in at helps we was we XX%. attractive but about And And record. it certainly. that that that different ago, we operationally

going don't be? yet. next Now somewhere QX, probably hard high. XX%? say. is to Is to it be closer in it going It's looking really is to to know to going be going between? the to into it Is as not be We Where it

And guidance outcomes. of so our range does that reflect range

John Dolan

The George, on is we is our thing your CAGRs with would last that provided. X-year the in question, guidance I line that say

looks map when tracking the our different it's road did outlook, today we first prepared than while consistently. it So

George Sutton

in strategy you iterations if about been Fran, extending there to sure brand curious I'm been Medicare I'm And is make talked want to quite comments, beyond just for time. offerings. that clear obviously Great. -- some I a have that's the prepared your core strategy.

Francis Soistman

of Advantage. Yes, at most evolution part been brand our the aimed Medicare has significant

they're under made to but the health choices. that work help Michelle in can last pages want them navigate to look pages. MA our on similar important team consumers, is Over XX the or progress. brand and We past Med in progress, XX over emphasize looking have of their landing focused we're creating eHealth progress our level. our it kind Supp start program, year, How take feature E&I, going know example, to same very E&I We the next we still year, on and landing whether to insurance her for with work

We increase is lines. side. that all our monumental. for Advantage couldn't in to of I more pleased. awareness mean So the product want The tremendous on XX% Medicare I replicate progress year-over-year be

Operator

is next RBC Capital Markets. Hendrix Your from Ben question from

Benjamin Hendrix

follow commentary. year the outlook D-SNP I of marketing that quarter. wanted on kind of maybe you're you're thinking just in volume appreciate context some Congratulations about the normal about changes in the the your you're wondering that on to -- what on your But thinking these I change based of in would up cadence to rules. through how how into versus D-SNP see XQ changes? that kind prior of quarter kind some fourth cadence and we moving of the of

Francis Soistman

the Ben, would into We question. assumptions likely QX given thanks bake be QX our have did opportunities that that we for QX. for and more don't fourth there those quarter that in opportunities in D-SNP

natural of component going I'm with an to is headcounts, disaster. change other beneficiaries The a the beneficiaries industry in HHS. that better in this a respect are things to We natural light SEP that equipped ability that our of on of CMS' help assist industry's great including think a time in the revisit is they're to going to hopeful associated in with through -- disaster.

QX, QX of in put on combination we baked have a and a So those of bit specifically little but QX. D-SNPs pressure in

Benjamin Hendrix

And follow-up in I kind get the your commentary trough wanted we're too, question, your just just wondering of a to it agent tide believe next? confidence kind of of many kind of that on a gives a of carriers at mean you margins. a that that what I'm you I here. the there the drivers relative appreciate platform. just from pointing Amplify target Amplify reasons to for of multiyear profitability that improves path of change But the maybe are I platform. on are focused And to saw this and year to that weakness in to the

Francis Soistman

that old. start a everyone me Amplify a little year over reminding let is with Well,

its with are So mouth. And delivering And the nicely. word new expectations and we're of us. conversion evolution building our through coming carrier of the compliance a quality for respect very, it's is their customers on and putting partners' We're to business lot sort and more on with that moving pipeline. the of getting very experience and emphasis is eHealth a that

it. that margin we're improve we in will its So confident performance. the early a evolution that at we on we're And to already because our scaling, can very build scale continue with that

Operator

from is next Your question Jonathan UBS. from Yong

Jonathan Yong

Amplify there you back understand this here. to had it need where you year, to is bit that be little a a Just other similar of I do Because that are to business? But go kind year's situation AEP. this situation I of done a fell more think to with think changes behind the unique that last bit. a

I guess, Or So of really scale? about you contemplating so, are carriers is terms progress changes? if any And adding the Amplify? to in other is additional just how going it

Francis Soistman

back to to and close Amplify. great and carrier bullish on there to answer create the We side, calls I'm very partner. sales optionality did us this why I generate to agency specifically the of the our Yes, provide on a gives do for customer. marketing going risk investment. lessen It mean don't opportunity was to place? deploy we to the in their customer first capital leads. the an That's experience responsibility the We're diversify

carriers to but basis, hasn't surprised overnight of to by we on not changed. carrier-by-carrier thesis business think results. the don't and margins. that the think by supply, we're adding So really containing We revenues to grow they're a change going margin and improvement were given the continue Last the will growth, focusing our primarily their grow these do on we carrier year,

to... wants anyone if see me Let

John Dolan

improvement platform think thing I margins. build Amplify be the Dolan. to our continue as to -- we add on and I'd is Jonathan John it's No, infrastructure, continue continue scale to in will The only

Jonathan Yong

in then Great. terms Okay. I of... And guess

Francis Soistman

It of below all it's context. sort mean XX% needs I of the revenue. company's

revenues. small it's component of So eHealth's very, a very

Jonathan Yong

people you just of benefits as best least as terms in people And thus I changed? far, mean, Great. have OEP guess Or their at realized Okay. largely tell, that are I can have during kind still switching actually just And factored into AEP? possible and now on of of outlook this that sidelines in your is period realizing churn? of versus how the terms it doing

Francis Soistman

We question. that seeing what out. of are OEP 'XX, in great given Yes, were anticipating we fourth more play and a occurred quarter active

for the continues today, greater But remainder those exits had So market plan expired with there those we'll who SEPs SEPs and February and that XX. through whether of withdrawals, much is the quarter. activity associated see

that their see notice D nevertheless, there first didn't went time may coverage we them specifically coverage the take in to they they have to But read that annual was were that So many think or a people action. for of begin slow XXXX, didn't catalyst we down. and to for Part until unfortunately the that pharmacy and found out change

in been We to believe measure performance contributing to but it's precisely, able stronger the that haven't the quarter. we

Jonathan Yong

Okay. And just if I could...

Kate Sidorovich

Yes.

So this is Kate.

are initiatives in point we out that specifically place these it's that target I to individuals. diversified think putting important retention

wide all, impacted And of who into were last First had very year. that beneficiary base. reach a we the individuals

Our year-over-year. not or And year. has rate this this of the tripled first has recapture certainly, more quarter into stopped

have actually we the guidance. In of why margin seen is retention a But Amplify slightly been far by year-over-year APAP the see is EBITDA out reasons midpoint full of the favorable. advisers. so larger we've fact from down view driven very at we of has that what team the to is But the one called fact, the it it's And cycle. too early retention into this also

Jonathan Yong

Great. Okay.

more. squeeze could one I if Just in

exchanges, at what you this resources terms the reallocated of and Medicare it I does in guess towards how in or pacing? resources there, think viewpoint during the will future quarter, some towards you on et you your away given least cetera, of the I mentioned E&I. dynamics from allocate the on change will happen

Francis Soistman

part we're company, think an And who going care in our to what, know important of several cost years. our next we think employers be tied to will very is over role medical cost, a for to that we bullish towel. an challenge some still we're evolve it's the in of that likely ICRA opportunities a be The short the E&I. nation. growing continue on play decide, think the will of future to Jonathan, throwing answer, number you continues We the to the major We're there ICRA. health going route inflation go in

in individual siphon and our a allow plan personal meets best their provide markets needs. to going that We're shop to employees the for

E&I still healthy experience to it's but we've and influence important for require some to going an gap. an versus XX, There's last and to changes roll a the more we capability, individual that's to XX continuing believe gap we're that viable, So a even to between year. compare shop narrow regulatory that but experience our very made over under make have

customer one whether and over under and XX. the journey same, So or are our the XX technology it's

continue individual. continue we So different investments and a add? very to want side, approach make the is the on those to development Anything how we you business will strategy employer our to than which develop capabilities

Kate Sidorovich

about earlier terms said are building out capability, out, of you brand diversification that continuing well. it audiences. telephonic channels. is yes, experience, higher have we BXB go core employer side conversion, the conversion sales online across to And think have hand-in-hand, Those we're they and Fran improvement. experience broker focus to areas tailor said, which marketing then, different into to and on the of And Medicare tailored of this and business be And sort to to that marketing the driving new which in ensuring talked I right, and really really what very we of and on build that efficiencies then both drive improvements in which the so that capitalizing, right? for each those and sales into side audiences. Really, development as done well of bringing same even

Operator

next Bank. Hill from Deutsche . [Operator Instructions] question Your is George from

George Hill

end talk to X of specific not pay with XXXX is, you, ones for love just second, one, eHealth? be your of picture Fran, big I into open you how that a willing to we does looking hear commissions to with have clients on rate you if which think if 'XX And how for interested kind talk how that products. wouldn't mind liking environment. of trend be then saw at that I'd a going impact about number kind eHealth? kind carriers how impact you'd I'd the And how about of you impacts the

'XX. about had the favorable You comments notice advanced for

do a better Just would with hear background, generally kind kind talk the impacting products through which the love a rate makes assume of has but flows to the about the how and little of for for that business. puts see bit. you you to takes rate MA attractive, the more it environment I

Francis Soistman

when me -- The environment Well, Thanks, can start question when hear it's first. let with second to George. it and rate shopping Good when goes the the experience good. affect very you. bad it's

what may observed. we've So but be that's counterintuitive, it's -- that

was to disruptive to saw that's is year a last proposition we as things, plan It ago, very environment rate shopping. continued years environment. tough withdrawals ago, including X rate value the required drastic and do carriers the improve. increased That pretty So exits some X market good, to when beneficiaries. years Similarly, the

eventful of but people there is come both AEPs Medicare and more from more extreme original Medicare in The more So eventful between perhaps ends where continuum. it's of an of the Advantage. AEP, end shoppers from the into were that moving

said commission, carriers' on agency than greater model, offer. my XX-plus suppress to have perhaps that behavior plans it Advantage more suppress of last to I an was With can either our well expanded in carrier respect And choice year side. creates but agnostic portfolio, pronounced, much choice our competitors as we relationships remarks, Medicare our over or many

incredibly I that think navigated that the we well So under circumstances.

distribution. In see of as to well, shared friction it between AEPs, we going because like think just but I terms it's forward, less in create it's many before, card how play it can carriers don't I've pronounced. that utilized

the -- memories are agent than suffered agents And this would the an generally do only say field consequences greater far more X work than on X with of I because with organizations, on fact, industry. organization. probably or that may long we in street who to distribution telebroker street and work the the

recurring mindset do growth carrier to X for took given quite just distribution opportunities We the spent want a do they my their I and them. a does well So or to it very part on this lightly, if side, career commission, circumstances. the it future. action basis they their all want navigated understand the I of suppress on it don't to emphasize, the X don't threaten was big and to detrimental having or it and

and So balances place. checks some in I think there's

Operator

questions proceed. this no Please at time. further There are

Francis Soistman

early Well, let sometime me and and again thank out support to forward everyone one-on-one to QX for look later We performance joining certainly look quarter. us second forward this morning. reporting We eHealth. appreciate the our in following your conversations of interest in

much. all So thank you very

Operator

you Thank joining. and you. ended. Ladies has all for now conference Thank the gentlemen,

may all disconnect You lines. your

eHealth (EHTH) 26 Feb 252024 Q4 Earnings call transcript