eHealth(EHTH) - 2024 Q4 - Annual Results

Revenue Growth - Q4 2024 total revenue reached $315.2 million, a 27% increase from $247.7 million in Q4 2023, primarily driven by Medicare segment growth[5] - FY 2024 total revenue was $532.4 million, an 18% increase from $452.9 million in FY 2023[5] - Total revenue for the three months ended December 31, 2024, was $315,181,000, representing a 27% increase compared to $247,662,000 in the same period of 2023[20] - The consolidated total revenue rose by 27% to $315,181,000 for the three months ended December 31, 2024, from $247,662,000 in the prior year[30] - Non-GAAP total revenue excluding net adjustment revenue for 2024 was $509,675,000, a 26% increase from $404,796,000 in 2023[47] Profitability - Q4 2024 GAAP net income was $97.5 million, an 87% increase compared to $52.2 million in Q4 2023[5] - FY 2024 net income was $10.1 million, a significant turnaround from a net loss of $28.2 million in FY 2023[5] - The company reported a significant increase in net income attributable to common stockholders, reaching $85,687,000 for the three months ended December 31, 2024, compared to $41,691,000 in the same period of 2023[20] - Non-GAAP net income for Q4 2024 was $91,797,000, up from $40,379,000 in Q4 2023[46] - The income before income taxes surged by 89% to $110,473,000 for the three months ended December 31, 2024, compared to $58,469,000 in the same period of 2023[30] Medicare Segment Performance - Total Medicare submissions grew 38% year-over-year in Q4 2024, with Medicare Advantage submissions increasing by 42%[5] - The Medicare segment primarily consists of commissions from Medicare-related health insurance plans, contributing significantly to revenue growth[25] - Total revenue for the Medicare segment increased by 31% to $305,781,000 for the three months ended December 31, 2024, compared to $233,680,000 in the same period of 2023[28] - The gross profit for the Medicare segment increased by 56% to $159,880,000 for the three months ended December 31, 2024, compared to $102,357,000 in 2023[28] - Medicare Advantage approved members increased to 366,160 in 2024 from 290,712 in 2023, a growth of 26%[38] Future Projections - The company expects 2025 total revenue to be in the range of $510.0 million to $550.0 million[12] - 2025 adjusted EBITDA is projected to be between $35.0 million and $60.0 million[12] - The company anticipates an 8% CAGR for revenue from 2023 to 2025, with an implied adjusted EBITDA margin of 9% for 2025[7] - The company expects a GAAP net loss attributable to common stockholders in 2025 to range from $(60.0) million to $(35.0) million[50] Operating Costs and Expenses - Total operating costs and expenses for the three months ended December 31, 2024, were $202,541,000, an 8% increase from $188,294,000 in the same period of 2023[20] - Marketing and advertising expenses for the three months ended December 31, 2024, were $96,197,000, a 9% increase from $87,959,000 in the same period of 2023[20] - Variable marketing and advertising costs for the consolidated segment increased by 11% to $88,002,000 for the three months ended December 31, 2024[30] Membership and Acquisition Metrics - The number of approved Medicare members increased by 33% to 248,440 for the three months ended December 31, 2024, compared to 186,567 in 2023[36] - Total approved members rose to 485,456 in 2024, up 13% from 429,196 in 2023[38] - Estimated Medicare Advantage membership reached 690,874 in 2024, an 11% increase from 622,896 in 2023[39] - The total acquisition cost per Medicare Advantage-equivalent approved member decreased by 23% to $591 for the three months ended December 31, 2024[36] Financial Reporting and Measures - eHealth reported non-GAAP total revenue excluding net adjustment revenue, which provides a clearer view of the company's financial performance[55] - Non-GAAP operating costs and expenses were calculated by excluding stock-based compensation and other charges, reflecting a more accurate operational cost structure[56] - Adjusted EBITDA margin was derived from adjusted EBITDA divided by revenue, offering insights into profitability trends[56] - eHealth continues to emphasize the importance of non-GAAP financial measures to provide investors with a comprehensive view of its operating performance[54]