eHealth, Inc. Updates Guidance for Fiscal Year 2024 Following Strong AEP Performance

Core Insights - eHealth, Inc. reported strong performance during the Annual Enrollment Period (AEP), driven by significant changes in Medicare Advantage and Part D plan offerings, leading to increased demand for its services [2][3] - The company has revised its fiscal year 2024 guidance, indicating improved revenue and adjusted EBITDA expectations compared to previous estimates [5][6] AEP Performance Highlights - eHealth experienced strong year-over-year growth in submitted Medicare applications, particularly in direct marketing channels [4] - The company achieved an all-time high in AEP submitted application volume in the online unassisted category [4] - Telephonic and online conversion rates exceeded expectations, showing meaningful year-over-year improvement [4] - The LTV-to-CAC ratio improved in the Medicare business, indicating better customer acquisition efficiency [4] - A new comprehensive member retention program successfully encouraged consumers to return to the eHealth platform for coverage reviews and healthcare plan shopping [4] Updated Financial Guidance - Total revenue for fiscal year 2024 is now expected to be between $500 million and$520 million, up from the previous range of $470 million to$495 million [6] - GAAP net income (loss) is projected to range from $(12 million) to$3 million, an improvement from the prior range of $(36.5 million) to$(22 million) [6] - Adjusted EBITDA is expected to be between $40 million and$55 million, significantly higher than the previous range of $7.5 million to$25 million [6] - The updated guidance includes anticipated positive net adjustment revenue of $14 million to$20 million [7] - Operating cash flow is expected to range from $(15 million) to$(5 million), reflecting increased investment in profitable Medicare enrollment growth [7] Management Commentary - The CEO emphasized the company's successful transformation initiatives and AEP preparedness, which contributed to strong consumer demand and enrollment growth [2][3] - The CFO highlighted that the mid-point of the updated guidance suggests substantial margin expansion and attractive cash ROI from the AEP cohort [8]