eHealth, Inc. (EHTH) Bundle
A Brief History of eHealth, Inc.
eHealth, Inc. has experienced significant developments in its operations and financial performance leading up to 2024. The company operates primarily in the health insurance sector, providing a platform for individuals and families to compare and enroll in health insurance plans.
Financial Performance Overview
As of September 30, 2024, eHealth reported total revenue of $217.2 million, marking a 6% increase from $205.2 million in the same period of 2023. This growth was driven by a strong performance in the Medicare segment, which saw revenue increase to $194.9 million from $172.8 million, a rise of 13%.
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $217.2 million | $205.2 million | 6% |
| Medicare Revenue | $194.9 million | $172.8 million | 13% |
| Employer and Individual Revenue | $22.4 million | $32.4 million | -31% |
Operational Developments
In 2024, eHealth focused on enhancing its marketing and customer care strategies, resulting in an increase in customer care and enrollment expenses, which rose to $100.8 million, a 7% increase from $94.0 million in 2023. The company has also invested in technology enhancements, with technology and content expenses totaling $38.6 million, down from $42.0 million.
Cash Flow and Liquidity
As of September 30, 2024, eHealth reported cash, cash equivalents, and short-term marketable securities amounting to $117.8 million, slightly down from $121.7 million at year-end 2023. The company generated operating cash flow of $9.3 million for the nine months ending September 30, 2024, compared to $26.7 million in the same period in 2023.
| Cash and Investments | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $64.0 million | $115.7 million |
| Short-term Marketable Securities | $53.8 million | $5.9 million |
| Total | $117.8 million | $121.7 million |
Stock Performance and Shareholder Equity
eHealth's stock performance has been under scrutiny, with a net loss recorded of $87.4 million for the nine months ending September 30, 2024, compared to a net loss of $80.4 million in the previous year. The company’s total stockholder equity as of September 30, 2024, was $499.3 million, down from $606.0 million at the start of the year.
| Stockholder Equity | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Stockholder Equity | $499.3 million | $606.0 million |
Future Outlook
Looking ahead, eHealth aims to stabilize its Employer and Individual segment while continuing to capitalize on the growth in its Medicare segment. The company is focused on technological advancements and operational efficiencies to drive future profitability.
A Who Owns eHealth, Inc. (EHTH)
Major Shareholders
As of 2024, the significant ownership stakes in eHealth, Inc. (EHTH) are held by a combination of institutional investors and preferred shareholders. The most notable shareholders include:
- H.I.G. Capital: Holds 2,250,000 shares of Series A convertible preferred stock, representing an investment of $225 million made in 2021. This investment grants H.I.G. significant rights, including the ability to nominate members to the Board of Directors if certain conditions are met.
- BlackRock, Inc.: One of the largest institutional investors in eHealth, managing a substantial number of shares on behalf of its clients.
- Vanguard Group, Inc.: Another major institutional investor with significant holdings in eHealth.
Stock Performance
The stock performance of eHealth, Inc. has been characterized by volatility. As of September 30, 2024, the stock price is approximately $1.83 per share, reflecting a decline compared to the previous year. The stock has fluctuated between $1.50 and $3.00 over the past year.
Financial Overview
eHealth, Inc. reported total revenue of $217.2 million for the nine months ended September 30, 2024, a 6% increase from $205.2 million in the same period of 2023. The revenue breakdown is as follows:
| Segment | Revenue (in thousands) | Change (%) |
|---|---|---|
| Medicare | $194,857 | 13% |
| Employer and Individual | $22,372 | (31%) |
| Total Revenue | $217,229 | 6% |
Net Loss
For the nine months ended September 30, 2024, eHealth reported a net loss of $87.4 million, compared to a net loss of $80.4 million for the same period in 2023. The loss attributable to common stockholders for the same period was $120.6 million, translating to a net loss per share of $4.13.
Cash and Cash Equivalents
As of September 30, 2024, eHealth, Inc. reported cash, cash equivalents, and short-term marketable securities totaling $117.8 million, a slight decrease from $121.7 million at the end of 2023.
| Cash Position (in thousands) | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash | $7,446 | $7,114 |
| Cash Equivalents | $56,586 | $108,608 |
| Total Cash and Cash Equivalents | $64,032 | $115,722 |
| Restricted Cash | $3,090 | $3,090 |
| Total Cash, Cash Equivalents, and Restricted Cash | $67,122 | $118,812 |
Convertible Preferred Stock
The Series A convertible preferred stock issued to H.I.G. Capital as part of the investment agreement has a redemption value that increases annually. As of September 30, 2024, the carrying amount of the convertible preferred stock was $327.1 million, reflecting accrued dividends and changes in redemption value.
Summary of Stockholders' Equity
As of September 30, 2024, eHealth's stockholders' equity was reported as follows:
| Equity Component | Value (in thousands) |
|---|---|
| Common Stock | $43 |
| Additional Paid-in Capital | $812,538 |
| Treasury Stock | $(199,998) |
| Retained Earnings (Accumulated Deficit) | $(113,363) |
| Accumulated Other Comprehensive Income (Loss) | $126 |
| Total Stockholders' Equity | $499,346 |
Key Financial Metrics
The following key financial metrics provide insight into the company's performance:
| Metric | Value |
|---|---|
| Net Loss (nine months ended September 30, 2024) | $(87,425,000) |
| Net Loss per Share | $(4.13) |
| Total Revenue (nine months ended September 30, 2024) | $217,229,000 |
| Total Assets (as of September 30, 2024) | $1,001,991,000 |
| Total Liabilities (as of September 30, 2024) | $175,520,000 |
eHealth, Inc. (EHTH) Mission Statement
Mission Statement Overview
The mission of eHealth, Inc. (EHTH) is to empower individuals and families to make informed decisions about their health by providing a comprehensive platform for health insurance shopping and enrollment. This mission is driven by a commitment to delivering user-friendly technology, personalized support from licensed agents, and a wide selection of health insurance plans.
Financial Performance
As of September 30, 2024, eHealth reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $58,409,000 | $64,718,000 | $217,229,000 | $205,209,000 |
| Net Loss | $(42,473,000) | $(37,025,000) | $(87,425,000) | $(80,404,000) |
| Medicare Revenue | $53,221,000 | $55,523,000 | $194,857,000 | $172,787,000 |
| Employer and Individual Revenue | $5,188,000 | $9,195,000 | $22,372,000 | $32,422,000 |
| Cash and Cash Equivalents | $64,032,000 | $115,722,000 | $64,032,000 | $115,722,000 |
Operational Segments
eHealth operates mainly through two segments: Medicare and Employer & Individual. The performance of each segment for Q3 2024 is as follows:
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | Segment Profit (Loss) (Q3 2024) | Segment Profit (Loss) (Q3 2023) |
|---|---|---|---|---|
| Medicare | $53,221,000 | $55,523,000 | $(17,933,000) | $(15,331,000) |
| Employer and Individual | $5,188,000 | $9,195,000 | $(799,000) | $4,810,000 |
Key Metrics and Statistics
As of September 30, 2024, the following key metrics are relevant to eHealth's mission execution:
- Total approved members: 58,266
- Medicare approved members: 42,871
- Individual and Family approved members: 2,872
- Ancillary approved members: 11,382
- Small Business approved members: 1,141
Customer Engagement
eHealth's customer engagement strategy encompasses various channels, including:
- Personalized support from licensed agents
- Direct marketing and affiliate partnerships
- Enhanced online resources for health insurance education
Financial Outlook and Challenges
For the nine months ended September 30, 2024, eHealth faced challenges in revenue generation, particularly in the Employer and Individual segment, which saw a 31% decline compared to the previous year. Conversely, the Medicare segment experienced a 13% increase in revenue, indicating a stronger performance amidst operational enhancements.
| Financial Outlook | Metric | 2024 Forecast | 2023 Comparison |
|---|---|---|---|
| Total Revenue Growth | Projected Increase | 6% | 5% |
| Net Loss Reduction | Projected Decrease | 10% | 5% |
| Cash Flow from Operations | Operating Cash Flow | $9,296,000 | $26,694,000 |
How eHealth, Inc. (EHTH) Works
Business Model
eHealth, Inc. operates primarily in the health insurance sector, focusing on two main segments: Medicare and Employer & Individual (E&I). The company generates revenue primarily through commissions from health insurance plans and additional service offerings.
Financial Performance Overview
As of September 30, 2024, eHealth reported the following financial results:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $58,409,000 | $64,718,000 | $(6,309,000) | (10)% |
| Medicare Revenue | $53,221,000 | $55,523,000 | $(2,302,000) | (4)% |
| Employer & Individual Revenue | $5,188,000 | $9,195,000 | $(4,007,000) | (44)% |
| Net Loss | $(42,473,000) | $(37,025,000) | $(5,448,000) | (15)% |
Revenue Breakdown
The revenue composition for the nine months ended September 30, 2024 is as follows:
| Segment | Revenue | Percentage of Total Revenue |
|---|---|---|
| Medicare | $194,857,000 | 89.8% |
| Employer & Individual | $22,372,000 | 10.2% |
| Total Revenue | $217,229,000 | 100% |
Operating Costs
Operating costs and expenses for the nine months ended September 30, 2024 were reported as follows:
| Cost Category | Amount | Percentage of Total Revenue |
|---|---|---|
| Marketing and Advertising | $95,185,000 | 43.8% |
| Customer Care and Enrollment | $100,773,000 | 46.3% |
| Technology and Content | $38,613,000 | 17.7% |
| General and Administrative | $62,318,000 | 28.7% |
| Total Operating Costs | $306,298,000 | 140.9% |
Segment Profitability
For the three months ended September 30, 2024, the segment profit (loss) was as follows:
| Segment | Profit (Loss) |
|---|---|
| Medicare | $(17,933,000) |
| Employer & Individual | $(799,000) |
| Total Segment Profit (Loss) | $(18,732,000) |
Cash and Liquidity Position
As of September 30, 2024, eHealth's cash and cash equivalents were reported as follows:
| Cash Component | Amount |
|---|---|
| Cash | $7,446,000 |
| Cash Equivalents | $56,586,000 |
| Total Cash and Cash Equivalents | $64,032,000 |
| Restricted Cash | $3,090,000 |
| Total Cash, Cash Equivalents, and Restricted Cash | $67,122,000 |
Market Trends and Challenges
eHealth faces various challenges, including a decline in individual and family plan approved members, impacting the E&I segment significantly. The company has reported a 31% decrease in commission revenue from this segment due to lower enrollment rates and reduced marketing effectiveness.
Significant Customers
For the three months ended September 30, 2024, significant customers contributing to revenue were:
| Customer | Percentage of Revenue |
|---|---|
| Humana | 29% |
| Aetna | 17% |
| UnitedHealthcare | 19% |
Stockholder Equity
eHealth's stockholder equity as of September 30, 2024, is illustrated below:
| Equity Component | Amount |
|---|---|
| Common Stock | $43,000 |
| Additional Paid-in Capital | $812,538,000 |
| Treasury Stock | $(199,998,000) |
| Retained Earnings (Accumulated Deficit) | $(113,363,000) |
| Accumulated Other Comprehensive Income (Loss) | $126,000 |
| Total Stockholders’ Equity | $499,346,000 |
Future Outlook
Looking ahead, eHealth aims to enhance its operational efficiencies and explore avenues for growth in its Medicare segment while addressing the challenges in its Employer & Individual segment.
How eHealth, Inc. (EHTH) Makes Money
Revenue Streams
eHealth, Inc. primarily generates revenue through two main segments: Medicare and Employer & Individual (E&I). For the three months ended September 30, 2024, the revenue breakdown was as follows:
| Segment | Revenue (in thousands) | Change from 2023 ($) | Change from 2023 (%) |
|---|---|---|---|
| Medicare | $53,221 | $(2,302) | (4%) |
| Employer and Individual | $5,188 | $(4,007) | (44%) |
| Total Revenue | $58,409 | $(6,309) | (10%) |
For the nine months ended September 30, 2024, the total revenue was $217,229, representing a 6% increase compared to $205,209 in the same period of 2023.
Commission Revenue
Commission revenue is a significant portion of eHealth's income. For the three months ended September 30, 2024, commission revenue amounted to $48,222, which accounted for 83% of total revenue. The breakdown by segment was as follows:
| Segment | Commission Revenue (in thousands) |
|---|---|
| Medicare | $43,414 |
| Employer and Individual | $4,808 |
For the nine months ended September 30, 2024, total commission revenue was $185,996.
Other Revenue Sources
Other revenue, which includes sponsorship and advertising, contributed $10,187 for the three months ended September 30, 2024, and $31,233 for the nine months ended September 30, 2024.
Cost Structure
Operating costs for eHealth include marketing, customer care, technology, and general administrative expenses. The total operating costs for the three months ended September 30, 2024, were $101,608, leading to a loss from operations of $43,199.
| Cost Type | Cost (in thousands) | % of Total Revenue |
|---|---|---|
| Marketing and Advertising | $29,665 | 51% |
| Customer Care and Enrollment | $39,321 | 67% |
| Technology and Content | $12,264 | 21% |
| General and Administrative | $20,297 | 35% |
| Total Operating Costs | $101,608 | 174% |
Segment Performance
Segment profit (loss) for the Medicare and E&I segments for the three months ended September 30, 2024, was:
| Segment | Segment Profit (Loss) (in thousands) |
|---|---|
| Medicare | $(17,933) |
| Employer and Individual | $(799) |
For the nine months ended September 30, 2024, the segment profit (loss) was $(8,350) for Medicare and $(4,743) for E&I.
Net Loss
For the three months ended September 30, 2024, eHealth reported a net loss of $42,473, which was a decrease from the $37,025 loss in the same period of 2023.
Cash and Liquidity
As of September 30, 2024, eHealth had cash, cash equivalents, and short-term marketable securities totaling $117.8 million.
Major Customers
Revenue concentration remains high, with a small number of health insurance carriers accounting for a significant portion of total revenue. For the nine months ended September 30, 2024, the following carriers represented more than 10% of total revenue:
| Carrier | % of Total Revenue |
|---|---|
| Humana | 28% |
| Aetna | 20% |
| UnitedHealthcare | 17% |
These figures highlight the dependency on a few key partners for revenue generation.
Investment and Financing
eHealth has financed its operations through a combination of operating cash flow, equity issuances, and debt financing.
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Resources:
- eHealth, Inc. (EHTH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of eHealth, Inc. (EHTH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View eHealth, Inc. (EHTH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.