Ehealth, Inc. (EHTH) 10-Q Quarterly Report May 2020

eHealth, Inc. (NASDAQ: EHTH), a leading private online health insurance marketplace, announces today its financial results for the first quarter ended March 31, 2020.

Scott Flanders, chief executive officer of eHealth stated, “In this challenging environment shaped by the COVID-19 pandemic, our company mission to connect every person with the highest quality, most affordable health insurance for their life circumstances is more relevant and important than ever. As social distancing measures remain in place around the country, we are glad to be able to continue to meet consumers wherever it is easiest, most convenient, and safest for them to engage - online and by speaking to a licensed insurance agent over the phone.”

Mr. Flanders continued, “Building on our strong momentum of the past two years, and our record performance in 2019, we are pleased to deliver another quarter of outperformance. The fundamentals of our business are strong and we are achieving strong operating metrics across the business by executing on a clear strategy and making targeted investments to drive growth. Our updated 2020 annual guidance reflects our outperformance to-date, but does not include the additional investments we are contemplating and planning for this year’s Annual Enrollment Period. These will be provided in conjunction with our second quarter results.”

GAAP — First Quarter of 2020 Results

Revenue — Revenue for the first quarter of 2020 totaled $106.4 million, a 55% increase compared to $68.8 million for the first quarter of 2019. Commission revenue for the first quarter of 2020 totaled $99.7 million, a 55% increase compared to $64.2 million for the first quarter of 2019. Other revenue for the first quarter of 2020 was $6.7 million, a 48% increase compared to $4.5 million for the first quarter of 2019.

Revenue from our Medicare segment was $96.2 million for the first quarter of 2020, a 75% increase compared to $54.9 million for the first quarter of 2019. Revenue from our Individual, Family and Small Business segment was $10.3 million for the first quarter of 2020, a 26% decrease compared to $13.9 million for the first quarter of 2019.

Income (Loss) from Operations — Income from operations for the first quarter of 2020 was $1.0 million compared to loss from operations of $9.2 million for the first quarter of 2019.

Pre-Tax Income (Loss) — Pre-tax income for the first quarter of 2020 was $1.4 million compared to pre-tax loss of $8.6 million for the first quarter of 2019.

Benefit from Income Taxes — Benefit from income taxes for the first quarter of 2020 was $2.0 million compared to $3.5 million for the first quarter of 2019.

Net Income (Loss) — Net income for the first quarter of 2020 was $3.5 million, or $0.13 net income per diluted share, compared to net loss of $5.2 million, or $0.24 net loss per diluted share, for the first quarter of 2019.

The following information was filed by Ehealth, Inc. (EHTH) on Thursday, April 23, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Ehealth, Inc.'s 10-Q Quarterly Report:

Financial - Expense Highlight
Adjustments for non-cash items primarily consisted of $13.3 million of expense related to the fair value adjustment of our earnout liability, $3.2 million of stock-based compensation expense, $1.3 million of amortization of intangible assets and internally developed software, and $0.7 million of depreciation and amortization, partially offset by a $3.5 million decrease in deferred income taxes and a $1.2 million decrease in other non-cash items.

Other - Other Highlight
The constrained LTV of commissions per qualified health plan and non-qualified health plan for approved members increased 24% and 12%, respectively, during the three months ended March 31, 2020 compared with the same period in 2019, respectively, mostly due to improved plan duration.
Financial - Expense Highlight
37 Amortization of Intangible Assets Our intangible asset amortization expense is summarized as follows (dollars in thousands): Amortization expense related to intangible assets was primarily related to intangible assets purchased through our acquisitions.
Revenue - Product Highlight
The increase in commission revenue from the Medicare segment was driven by a 46% increase in Medicare plan approved members, primarily attributable to a 59% growth in Medicare Advantage plan approved members due to the recent open enrollment and an increase in adjustment revenue.
Financial - Expense Highlight
Our general and administrative expenses are summarized as follows (dollars in thousands): General and administrative expenses increased $8.4 million, or 74%, during the three months ended March 31, 2020 compared to the same period in 2019, primarily due to increases of $3.1 million in personnel and compensation costs, $2.9 million in stock-based compensation expense, $0.7 million in facilities and other operating costs, $0.7 million in consulting expenses, and $0.4 million in legal and professional fees.
Revenue - Product
However, after considering various market...Read more
Other - Other
Recent Accounting Pronouncements See Note...Read more
Other - Other
Medicare-related plan estimated membership as...Read more
Financial - Expense
Our technology and content expenses...Read more
Financial - Earnings
The decrease in profit from...Read more
Financial - Expense
Our marketing and advertising expenses...Read more
Revenue - Product
Revenue from our Individual, Family...Read more
Financial - Expense
Since our marketing and advertising...Read more
Other - Other
To estimate the number of...Read more
Financial - Expense
Investing Activities Our investing activities...Read more
Financial - Expense
The increase in operating expenses...Read more
Other - Other
Medicare Advantage new paying members...Read more
Revenue - Product
39 Our operating segment revenue...Read more
Financial - Income
Other Income, Net Our other...Read more
Other - Other
Medicare total approved members grew...Read more
Financial - Expense
Our customer care and enrollment...Read more
Other - Other
To estimate the number of...Read more
Other - Other
We expect a reduction in...Read more
Financial - Shares
42 Financing Activities Three Months...Read more
Revenue - Product
The increase was primarily due...Read more
M & A - Other
31 Member Acquisition Marketing initiatives...Read more
Other - Other
The following table shows estimated...Read more
Revenue - Product
To a lesser extent, the...Read more
Other - Other
The increase in cash and...Read more
Revenue - Product
The Medicare segment consists primarily...Read more
Other - Other
For small business, the amount...Read more
Financial - Shares
Three Months Ended March 31,...Read more
Revenue - Product
Cash provided by changes in...Read more
Other - Other
The one to three-month period...Read more
Legal - Other
Except as required by applicable...Read more
Revenue - Product
The increase in Medicare segment...Read more
M & A - Other
In periods of membership growth,...Read more
Financial - Expense
IFP CC&E expense per approved...Read more
Other - Other
The constrained LTV of commissions...Read more
Financial - Income
Other income, net decreased $0.2...Read more
Financial - Income
For the three months ended...Read more
Other - Other
We have created a marketplace...Read more
Other - Other
28 The constraints applied to...Read more
Financial - Shares
Common Stock Issuance Pursuant to...Read more
Revenue - Product
The increase in Medicare total...Read more
Revenue - Product
Small business approved members declined...Read more
Revenue - Geography
While our offices in the...Read more
Revenue - Product
The increases were primarily driven...Read more
Revenue - Product
Small business new paying members...Read more
Other - Other
Our LTV estimation models for...Read more
Other - Other
24 Overview We are a...Read more
Other - Other
Our platform integrates proprietary and...Read more
Revenue - Product
The decrease in commission revenue...Read more
Financial - Expense
Cash used from changes in...Read more
Financial - Earnings
Segment Profit Our Medicare segment...Read more
Financial - Expense
Medicare CC&E expense per approved...Read more
Other - Other
The proceeds of the loans...Read more
Financial - Cash Flow
The timing of open enrollment...Read more
Financial - Expense
Customer Care and Enrollment Customer...Read more
Other - Other
Our future capital requirements will...Read more
Revenue - Product
Other revenue increased $2.2 million,...Read more
Other - Other
Our omni-channel consumer engagement platform...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Ehealth, Inc. provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Ticker: EHTH
CIK: 1333493
Form Type: 10-Q Quarterly Report
Accession Number: 0001333493-20-000076
Submitted to the SEC: Fri May 08 2020 9:31:38 PM EST
Accepted by the SEC: Mon May 11 2020
Period: Tuesday, March 31, 2020
Industry: Insurance Agents Brokers And Service