EHealth under pressure after Q3 results, Medicare account churn challenging

• EHealth (NASDAQ:EHTH) is down 9% premarket on light volume following the release of Q3 results after the close yesterday. Highlights:
• Revenue: $94.3M (+34.9%), Commissions: $73.5M (+22.9%), Medicare: $70.4M (+23.1%).
• Net loss: ($14.5M) (-31.8%); loss/share: ($0.55) (-17.0%); non-GAAP EBITDA: ($13.3M) (+29.3%).
• Medicare segment loss: ($16.0M) (-45.5%).
• Cash flow ops: $1.4M (+108.8)
  • Staffing completed in telesales group, positions up 120% from a year ago. First cohort of dedicated account retention agents deployed last month.
  • Medicare Advantage churn (CEO comments) was 30K accounts compared to 54K in Q2 and 87K in Q1. Management expects the positive trend to continue.
  • 2020 guidance: Reaffirmed (from July 23): Revenue: $630M - 670M; Medicare revenue: $583M - 619M; Individual, Family and Small Business revenue: $47M - 51M; net income: $79M - 94M; non-GAAP EBITDA: $140M - 155M; cash flow ops: ($95M - 85M); EPS: $2.91 - 3.47; non-GAAP EPS: $3.83 - 4.32.
  • https://seekingalpha.com/news/3625300-ehealth-under-pressure-after-q3-results-medicare-account-churn-challenging