• Fourth Quarter Revenue: Increased 27% to $315.2 million.
• Medicare Submissions Growth: Increased 38%, with agency model submissions up 49%.
• Adjusted EBITDA: Grew 74% to $121.3 million, with a margin of 38%.
• GAAP Net Income: Increased 87% to $97.5 million.
• Medicare Segment Revenue: Grew 31% to $305.8 million.
• Medicare Advantage LTV to CAC Ratio: Improved from 1.5X to 2X.
• Full Year Revenue: Increased 18% to $532.4 million.
• Full Year Adjusted EBITDA: Increased to $69.3 million, with a margin of 13%.
• Cash Equivalents and Marketable Securities: Ended the year with $82.2 million.
• 2025 Revenue Guidance: Expected to be in the range of $510 million to $550 million.
• 2025 Adjusted EBITDA Guidance: Expected to be in the range of $35 million to $60 million.

• Warning! GuruFocus has detected 2 Warning Signs with EHTH.

Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• eHealth Inc (NASDAQ:EHTH) delivered outstanding AEP results, exceeding expectations for enrollment volumes, revenue, and earnings.
• Fourth quarter revenue grew 27% year-over-year, with Medicare submissions increasing by 38%.
• The company achieved profitability on a GAAP net income basis for both the fourth quarter and the full year 2024.
• Adjusted EBITDA for the fourth quarter grew over 70% compared to the previous year, indicating significant margin expansion.
• eHealth Inc (NASDAQ:EHTH) successfully navigated Medicare sector disruptions, taking market share and scaling the business at attractive economics.

Negative Points

• Amplify volume came in below expectations due to market conditions favoring a choice platform with broad carrier selection.
• The company anticipates a more measured approach in 2025, with expected declines in adjusted EBITDA compared to 2024.
• Recent regulatory changes are expected to impact enrollment volumes, particularly in Q2 and Q3.
• The company expects a relatively flat revenue outlook for 2025 compared to the previous year.
• eHealth Inc (NASDAQ:EHTH) faces challenges with commission suppression tactics used by carriers, which were particularly pronounced in 2024.

Q & A Highlights

Q: Why is there a cautious outlook for 2025 despite a favorable regulatory environment and demographic trends? A: Francis Soistman, CEO, explained that the outlook is pragmatic due to the change in administration and the uncertainty surrounding regulatory priorities. While there is optimism about the regulatory environment, the company is cautious until more evidence is available, particularly regarding Medicare Advantage rates and marketing rules expected in the second quarter.

Q: How is eHealth planning to extend its brand beyond core Medicare offerings? A: Francis Soistman, CEO, stated that significant progress has been made in Medicare Advantage branding, with a 23% increase in awareness. The company aims to replicate this success across all product lines, including ENI and Med Supp, to ensure consumers recognize eHealth as a comprehensive health insurance navigator.

Q: What are the expectations for Q4 2025 in light of changes in D-SNP rules and marketing outlook? A: John Dolan, CFO, noted that the company anticipates more opportunities in Q4 due to the absence of D-SNP opportunities in Q2 and Q3. The company has adjusted its assumptions to reflect these changes and expects increased activity in Q4.

Q: What is the outlook for the Amplify platform given its recent performance? A: Francis Soistman, CEO, expressed confidence in Amplify's potential, emphasizing its role in diversifying revenue and reducing risk. The platform is still in its early stages, and the company plans to scale it by adding more carrier partners, which should improve margins over time.

Q: How does the current rate environment impact eHealth's business and client interactions? A: Francis Soistman, CEO, explained that both favorable and unfavorable rate environments can drive shopping activity. The company's broad carrier portfolio and agnostic choice model allow it to navigate commission suppressions effectively, providing a competitive advantage over smaller agents with limited carrier options.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.