Ehealth ( (EHTH) ) has released its Q3 earnings. Here is a breakdown of the information Ehealth presented to its investors.
eHealth, Inc., a prominent online health insurance marketplace, operates primarily in the insurance sector, offering access to a wide array of health insurers. In its latest earnings report, eHealth highlighted its robust performance in the Medicare segment, despite a decrease in overall revenue. The company reported a 22% increase in Medicare submissions and a 6% rise in total Medicare approved members compared to the previous year. However, total revenue for the third quarter of 2024 decreased by 10% year-over-year, primarily due to a decline in positive net adjustment revenue.
Key financial metrics revealed that while eHealth’s total revenue excluding net adjustment revenue grew by 9%, the GAAP net loss increased by 15% to $42.5 million. The company made strategic advancements, including extending its term loan at improved rates and successfully gearing up for the Annual Enrollment Period (AEP) with a strong agent workforce and enhanced online platform capabilities.
The decline in acquisition costs per Medicare Advantage approved member by 16% signals efficient cost management. Additionally, eHealth’s adjusted EBITDA, excluding net adjustment revenue, showed a positive trend, improving by $4.3 million year-over-year. Despite the challenges, the company maintains a solid cash position with $117.8 million in cash, cash equivalents, and marketable securities.
Looking ahead, eHealth, Inc. remains optimistic about future growth, maintaining its full-year guidance with expectations of 15% growth in non-GAAP total revenue, excluding net adjustment revenue. The company is poised to leverage its strategic initiatives to enhance profitability and expand its member base in the forthcoming enrollment periods.
