Q1 2024 eHealth Inc Earnings Call Transcript
Key Points
- eHealth Inc (EHTH) reported a 26% year-over-year revenue growth in Q1 2024, driven primarily by its Medicare segment.
- The company achieved positive operating cash flow of $3.3 million for the trailing 12 months ended March 31, 2024, marking a significant improvement from a cash outflow of over $150 million in the previous period.
- Medicare Advantage enrollment grew by 9% year-over-year, and Medicare Supplement enrollments increased by 35%, demonstrating strong growth in core areas.
- eHealth Inc (EHTH) has successfully transitioned to a more favorable competitive environment due to market consolidation and rationalization within the industry.
- The company's Amplify carrier dedicated platform generated over $7 million in revenue in Q1, with positive feedback on the quality and efficiency of sales operations.
- Despite overall growth, the Employer & Individual (E&I) segment revenue declined from $11.9 million in Q1 2023 to $10.6 million in Q1 2024, reflecting a reduction in enrollments.
- The company reported a net loss of $17 million for the first quarter, although this was an improvement from a net loss of $19.9 million in the previous year.
- Customer acquisition costs per Medicare Advantage equivalent approved member increased by 12% year-over-year, indicating higher expenses associated with growth.
- There is ongoing ambiguity and potential challenges due to the CMS final Medicare Advantage rule, which could impact future operations and regulatory compliance.
- The company is undergoing a transformation process in its Employer & Individual segment, which has yet to return to growth and is currently impacting overall segment performance.
Good morning, everyone, and welcome to eHealth Inc conference call to discuss the company's first quarter 2024 financial results. (Operator Instructions) I will turn the floor over to Eli Newbrun Mintz, Senior Investor Relations Manager. Please go ahead.
Good morning and thank you all for joining us today. On the call today, Francis Soistman, eHealth's Chief Executive Officer; and John Stelben, Chief Financial Officer, will discuss our first quarter 2024 financial results. Following these prepared remarks, we will open up the line for a Q&A session with industry analysts. As a reminder, this call is being recorded and webcast from the Investor Relations section of our website. A replay of the call will be available on our website later today.
Today's press release, our historical financial news releases and our filings with the SEC are also available on our Investor Relations site. We will be making forward-looking statements on this call about certain matters that are based upon
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