eHealth: Q4 performance reflects significant increase in productivity of eHealth's telesales

 eHealth, Inc. (Nasdaq: EHTH), a leading private online health insurance marketplace, today announced preliminary, unaudited financial results and select operating metrics for the fourth quarter and fiscal year ended December 31, 2022.

"eHealth's fourth quarter results reflect the transformational initiatives that we implemented in 2022 across all key areas of the company. During the fourth quarter Annual Enrollment Period, our company helped thousands of Americans shop for and enroll in healthcare plans that we believe represent an optimal match for them based on their personal preferences, healthcare needs, and budgets. We were able to do so while exceeding our cost reduction goals and significantly improving the efficiency of our sales and marketing organizations by emphasizing our most profitable marketing channels and enhancing agent productivity," said Fran Soistman, chief executive officer of eHealth. "The Medicare market remains strong, reflecting a robust selection of quality plans, significant customer demand, and a more rational approach to enrollment growth by our peers that emphasizes profitability over growth-at-all-costs. eHealth ended 2022 with a strong cash position, and we expect to deliver further meaningful improvements to our operational and financial performance in 2023. We look forward to providing full fourth quarter and fiscal year 2022 results as well as our 2023 guidance on our upcoming fourth quarter earnings call."

Fourth Quarter and Fiscal Year 2022 Preliminary Results

• Revenue for the fourth quarter of 2022 is expected to be in the range of $190 to $200 million. Revenue for the year ended December 31, 2022 is expected to be in the range of $395 to $405 million as compared to the company's guidance of $375 to $395 million.

• GAAP net income for the fourth quarter of 2022 is expected to be in the range of $16 to $21 million. GAAP net loss for the year ended December 31, 2022 is expected to be in the range of $93 to $88 million as compared to the company's guidance of $115 to $92 million.

• Adjusted EBITDA for the fourth quarter of 2022 is expected to be in the range of $40 to $50 million. Adjusted EBITDA for the year ended December 31, 2022 is expected to be in the range of $(50) to $(40) million as compared to the company's guidance of $(73) to $(45) million.

• Total cash outflow for the year ended December 31, 2022 (excluding the impact of our $70 million term loan and associated costs and net securities activities) is expected to be $44 million as compared to the company's guidance of $110 to $90 million.

Select Operating Metrics

• The company exceeded its cost reduction goals for the full year 2022 by delivering over $110 million in net operating cost savings compared to the full year 2021.

• Fourth quarter of 2022 telephonic conversion rates in the company's Medicare business improved by more than 25% compared to the fourth quarter of 2021.

• Medicare Advantage Approved Applications for the fourth quarter of 2022 were 131,235, a decline of 26% year-over-year. Medicare Advantage Approved Applications for the year ended December 31, 2022 were 302,949, a decline of 24% year-over-year. Decline in approved applications reflects a significant reduction in marketing costs in 2022 compared to 2021, which was partially offset by an increase in agent productivity.

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