Q1 2024 eHealth Inc Earnings Call
Operator: Good morning everyone, and welcome to eHealth Inc.'s conference call to discuss the company's first quarter 2024 financial results. At this time, all participants have been placed in listen-only mode. The floor will open for your questions following the prepared remarks. I will turn the floor over to Eli Newbrun-Mitt, Senior Investor Relations Manager. Please go ahead.
Good morning, everyone and welcome to Ehealth, Inc Conference call to discuss the company's first quarter 'twenty 'twenty four financial results.
At this time all participants have been placed in listen only mode before will open for your questions. Following the prepared remarks, I will turn the floor over to Ely, New Brian Mitts Senior Investor Relations manager. Please go ahead.
Eli Newbrun: Good morning, and thank you all for joining us today. On the call today, Fran 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.
Ely: Good morning, and thank you all for joining us today on the call today, France placement Ehealth, Chief Executive Officer, and John Seldon, 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.
Ely: As a reminder, this call is being recorded and webcast from the Investor Relations section of our website.
Ely: Replay of the call will be available on our website later today.
Ely: Today's press release, our historical financial news releases and our filings with that D. C are also available on our Investor Relations site.
Eli Newbrun: 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 management's current beliefs and expectations relating to future events impacting the company and our future financial or operating performance. Such forward-looking statements on this call represent eHealth's views as of today, and actual results could differ materially.
Ely: We will be making forward looking statements on this call about certain matters that are based upon management's current beliefs and expectations relating to future events impacting the company and our future financial or operating performance.
Ely: I was looking statements on this call represent <unk> views as of today and actual results could differ materially.
Eli Newbrun: We undertake no obligation to publicly address or update any forward-looking statements except as required by law. The forward-looking statements we will be making during this call are subject to a number of uncertainties and risks, including, but not limited to, those described in today's press release and in our most recent annual report on Form 10-K and our subsequent filings with the SEC. We will also be discussing certain non-GAAP financial measures on this call. Management's definitions of these non-GAAP measures and reconciliations to the most directly comparable GAAP financial measures are included in today's press release. With that, I'll turn the call over to Fran Soistman.
Ely: We undertake no obligation to publicly address or update any forward looking statements, except as required by law.
Ely: The forward looking statements, we will be making during this call are subject to a number of uncertainties and risks, including but not limited to those described in today's press release and in our most recent annual report on Form 10-K, and our subsequent filings with the SEC. We will also be discussing certain non-GAAP financial measures on this call managements definite.
Ely: Of these non-GAAP measures and reconciliation to the most directly comparable GAAP financial measures are included in today's press release with that I'll turn the call over to franchise.
Francis Samuel Soistman: Thank you, Eli, and good morning, everyone. Today we plan to review key operational and financial highlights of the quarter and address important recent developments in our industry and how they may impact our company's strategic positioning and outlook for the year. Ehealth delivered another quarter of strong execution in our Medicare business. In Q1, Ehealth maintained the momentum we gained during the annual enrollment period, generating double-digit growth in approved Medicare members. This was driven primarily by our enhanced marketing strategies and strong execution in both our fulfillment models, agency, our choice model, and Amplify, our carrier-dedicated model.
Franchise: Thank you Elaine and good morning, everyone.
Franchise: Today, we plan to review key operational and financial highlights for the quarter and address important recent developments in our industry and how they may impact, our company's strategic positioning and outlook for the year.
Franchise: He helped deliver another quarter of strong execution in our Medicare business.
Franchise: Q1, Ehealth maintain the momentum we gained during the annual enrollment period generating double digit growth in approved Medicare members.
Franchise: This was driven primarily by our enhanced marketing strategy and strong execution in both our fulfillment model agency, our choice model and amplify our carrier dedicated model.
Francis Samuel Soistman: Importantly, our Q1 Medicare Advantage enrollment growth of 9% year-over-year was accompanied by another year-over-year increase in lifetime value. Combined with our fixed-cost reduction efforts, this allowed us to post a significant year-over-year improvement in first-quarter adjusted EBITDA. I'm also pleased to report that eHealth achieved positive operating cash flow of $3.3 million for the trailing 12 months ended March 31, 2024, exceeding our target of break-even operating cash flow for this period. This is an important achievement for our organization and a true testament to the early success of the business transformation plan that we completed in 2023. In comparison, our operating cash outflow was in excess of $150 million for the trailing 12 months ended 3-31-22 at the onset of our business transformation.
Franchise: Importantly, our Q1 Medicare advantage enrollment growth of 9% year over year was accompanied by another year over year increase in lifetime values.
Franchise: Combined with our fixed cost reduction efforts. This allowed us to post a significant year over year improvement in first quarter adjusted EBITDA.
Franchise: I'm also pleased to report that Ehealth achieved positive operating cash flow of $3 3 million in the trailing 12 months ended March 31 2024.
Franchise: Exceeding our target of breakeven operating cash flow for this period.
Franchise: This is an important achievement for our organization and a true Testament to the early success of the business transformation plan that we completed in 2023.
Franchise: In comparison, our operating cash outflow was in excess of $115 million for the trailing 12 months ended 331 22 at the onset of our business transformation.
Francis Samuel Soistman: We believe we can continue to build on these accomplishments and towards sustainable, profitable growth and cash flow generation. I will review our Q1 operational highlights momentarily, but first, let me share my thoughts about some important industry developments. Throughout the past two years, there have been many changes in our sector, and we shared our views last year that the sector was rapidly approaching an inflection point. Specifically, we expected to see a shift toward market consolidation and rationalization. That inflection point has now arrived.
Franchise: We believe we can continue to build on these accomplishments and towards a sustainable profitable growth and cash flow generation.
Speaker Change: I will review, our Q1 operational highlights momentarily, but first let me share my thoughts about some important industry developments.
Francis Samuel Soistman: Medicare brokers are making pivotal changes to their sales and marketing strategies to focus on enrollment quality, profitability, and building long-term member relationships. Those who haven't, or cannot adjust, are gradually leaving the market. We've seen several exits and transactions over the past 12 months, including one announced last week, and believe there may be more coming. As this consolidation trend continues, we believe marketing spend will be further rationalized, providing for an increasingly favorable competitive environment for us.
Speaker Change: Throughout the past two years, there have been many changes in our sector and we shared our views last year that the sector was rapidly approaching an inflection point.
Franchise: Specifically, we expected to see a shift towards market consolidation and rationalization.
Franchise: That inflection point has now arrived.
Franchise: Medicare brokers are making pivotal changes to their sales and marketing strategies to focus on enrollment quality profitability and building long term member relationships.
Franchise: Those who haven't or cannot adjust are gradually leaving the market. We've seen several exits and transactions over the past 12 months, including one announced last week.
Franchise: I believe there may be more coming.
Franchise: As this consolidation trend continues we believe marketing spend will be further rationalized, providing for an increasingly favorable competitive environment for us.
Francis Samuel Soistman: With respect to recent managed care industry trends, carriers have publicly commented on several sources of financial pressures, which include increased medical utilization within their Medicare books, a tightening regulatory environment, STARS methodology changes, the Inflation Reduction Act, and lower than expected 2025 reimbursement rates from CMS, to name a few. Commentary from several large carriers suggests that during the upcoming AUP, Medicare plans will emphasize margin preservation over enrollment growth. In practice, this means that we expect to see a widespread reduction in certain plan benefits and geographical market exits from some carriers.
Franchise: With respect to recent managed care industry trends carriers have publicly commented on several sources of financial pressures, which include increased medical utilization within your Medicare books.
Franchise: The regulatory environment.
Franchise: <unk> methodology changes the inflation production act and lower than expected 'twenty twenty-five reimbursement rates from CMS to name a few.
Franchise: Commentary from several large carriers suggested during the upcoming AEP Medicare plans will emphasize margin preservation over enrollment growth at.
Franchise: In practice. This means that we expect to see widespread reduction in certain planned benefits and geographical market exits from some carriers.
Francis Samuel Soistman: These developments make the eHealth consumer value proposition more important than ever. Medicare beneficiaries can receive assistance navigating market complexity, including changes to their benefits, through eHealth's unbiased choice model, free of charge, by accessing our plan comparison tools and expert recommendations from our licensed benefit advisors. In the face of uncertainty, we're committed to being a trusted source of advice, empowering our customers to make good decisions when it comes to their health coverage options.
Franchise: These developments make the ehealth consumer value proposition more important than ever.
Franchise: Medicare beneficiaries can receive assistance navigating market complexity, including changes to their benefits or <unk>.
Franchise: Unbiased choice model free of charge.
Franchise: Setting our plan comparison tools and expert recommendations from our license benefit advisors.
Franchise: In the face of uncertainty, we're committed to being a trusted source of advice empowering our customers to make good decisions when it comes to their health coverage options.
Francis Samuel Soistman: In another important development for the sector, on April 4th, CMS published its final policy and technical changes to the Medicare Advantage program for contract year 2025. As we expected, there were quite a few areas of ambiguity in the final rule.
Franchise: And another important development for the sector on April 4th CMS published its final policy technical changes to the Medicare advantage program for contract year 2025.
Franchise: As we expected there were quite a few areas of ambiguity in the final rule.
Francis Samuel Soistman: We've had extensive discussions with our carrier partners to obtain their views on the practical implications of the rule for the industry. Based on the information available to us at this time, it appears that MA distribution companies with hourly employees, such as Ehealth, are largely excluded from some of the key provisions related to broker compensation. We will continue our dialogue with carriers and other industry players ahead of the AEP and are confident in our ability to continue navigating the regulatory complexity in this industry while executing on the 2024 plan we shared on the last earnings call.
Franchise: Had extensive discussions with our carrier partners to obtain their views on the practical implications of the rule for the industry.
Franchise: Based on the information available to us at this time it appears that the MAA distribution companies with hourly employees such as Ehealth are largely excluded from some of the key provisions related to broker compensation.
Franchise: We will continue our dialogue with carriers and other industry players ahead of the AAP and are confident in our ability to continue navigating the regulatory complexity in this industry, while executing on the 2024 plan we shared on the last earnings call.
Francis Samuel Soistman: As such, we are reiterating our 2024 annual guidance. Our strong track record of compliance and ability to react to annual changes in a fast and efficient manner represents a significant competitive advantage for eHealth in the highly regulated MA industry. Moving on to our first quarter execution, our marketing organization drove strong demand for our choice platform, resulting in 10% total Medicare approved enrollment growth. We remain flexible and opportunistic in allocating marketing budgets to channels and campaigns, which is a key driver of success in our dynamic industry.
Franchise: As such we are reiterating our 2020 for annual guidance.
Franchise: Our strong track record of compliance and ability to react to annual changes in a fast and efficient manner represents a significant competitive advantage for ehealth in a highly regulated industry.
Franchise: Moving on to our first quarter execution, our marketing organization drove strong demand to our choice platform, resulting in 10% total Medicare approved enrollment growth.
Franchise: We remain flexible and opportunistic in allocating marketing budgets to channels and campaigns, which is a key driver of success in our dynamic industry.
Francis Samuel Soistman: The open enrollment period brings a different audience to the market compared to the AEP, which also means a shift in relative performance of our marketing channels. For example, during the quarter, we saw strength in direct mail, including our in-house and affiliate partner mail campaign. At the same time, we pulled back on direct-response TV, which performed well for us in Q4 2023.
Franchise: The open enrollment period.
Franchise: A different audience to the market compared to the AEP, which also means a shift in relative performance of our marketing channels.
Franchise: For example, during the quarter, we saw strength in direct mail, including our in house and affiliate partner Mail campaigns.
Franchise: At the same time, we pulled back on direct response, TV, which performed well for us in Q4 of 2023.
Franchise: We'll be investing in this channel again ahead of and into the 2020 for AEP, including our plan to create additional innovative brand driven television ads.
Francis Samuel Soistman: We'll be investing in this channel again ahead of and into the 2024 AP, including our plan to create additional innovative brand-driven TV ads. Within our digital marketing channels, paid search investment outperformed our expectations. We're gradually shifting emphasis and investment towards in-house efforts, especially within digital channels, which include paid search and search engine optimization. It will take time to fully scale a rebranded presence in these channels.
Franchise: Within our digital marketing channels.
Franchise: Search investment outperformed our expectations.
Franchise: We're gradually shifting emphasis in investment towards in house efforts, especially within digital channels, which include paid search and search engine optimization.
Franchise: Will take time to fully scale, our rebranded presence in these channels.
Francis Samuel Soistman: In the meantime, we continue to work with digital affiliate partners. Given the omni-channel nature of eHealth's platform, digital marketing is an essential component of our overall demand generation strategy. We believe that over time, we can gain a meaningful lift from a comprehensive, rebranded digital response marketing program, similar to the strong initial brand impact that we saw with our direct TV advertising last AEP. Overall, Medicare member acquisition costs were in line with our expectations, while MALTV grew again on a year-over-year basis. John will discuss our unit metrics in greater detail.
Franchise: And in the meantime, we continue to work with digital affiliate partners.
Franchise: Given the Omnichannel nature of Ehealth platform digital marketing is an essential component of our overall demand generation strategy.
Franchise: We believe that over time, we can gain a meaningful lift from our comprehensive rebranded digital response marketing program.
Franchise: The strong initial brand impact that we saw with our direct TV advertising last AEP.
Franchise: Overall Medicare member acquisition costs were in line with our expectations, while EMEA LTV grew again on a year over year basis.
Franchise: John will discuss our unit metrics in greater detail.
Francis Samuel Soistman: Moving now to our Amplify carrier dedicated platform, which generated just over $7 million in revenue in Q1. We saw continued traction with existing carrier customers performing at or above our expectations for both call volumes and call conversion rates. We are also receiving positive feedback on the quality and efficiency of our sales operation and are building out a pipeline of new dedicated business ahead of the AEP. In addition to MA enrollment, Amplify drove strong Medicare supplemental sales, exceeding our expectations for the quarter.
John Joseph Stelben: Moving now to our amplify carrier dedicated platform, which generated just over $7 million in revenue in Q1.
John Joseph Stelben: We saw continued traction with existing carrier customers performing at or above our expectations for both call volumes and call conversion rates.
John Joseph Stelben: We're also receiving positive feedback on the quality and efficiency of our sales operation and are building out our pipeline of new dedicated business ahead of the AEP.
John Joseph Stelben: In addition to that May enrollments amplified drove strong Medicare supplemental sales exceeding our expectations for the quarter.
Francis Samuel Soistman: Total Q1 mixed enrollments across both fulfillment models grew 35% year over year, and Amplify contributed meaningfully. Our Amplify offering remains an essential component of Ehealth's diversification strategy, as it allows us to scale revenue without a corresponding investment in the variable market. Building scale is critical to achieving sustainable profitability for our business. Additionally, our largest Amplify customers will be moving to a non-broker of record fee-based BPO compensation model starting in Q2 of this year, which has the benefit of favorable cash flow timing compared to the traditional commission-based compensation model.
John Joseph Stelben: Total Q1 next up enrollments across both fulfillment models grew 35% year over year and amplify contributed meaningfully.
John Joseph Stelben: Our amplify offering remains an essential component of Ehealth diversification strategy as it allows us to scale revenue without a corresponding investment in variable marketing bill.
John Joseph Stelben: Building scale is critical to achieving sustainable profitability for our business. Additionally.
John Joseph Stelben: Additionally, our largest amplify customers will be moving to our non broker of record fee based P. P O compensation model starting in Q2 of this year.
Franchise: Which has the benefit of favorable cash flow timing compared to the traditional commission based compensation model.
Francis Samuel Soistman: Given our emphasis on profitability and cash flow generation, we continue to allocate capital thoughtfully and intentionally to support our core product, programs, and diversification initiatives. While expanding our presence outside of our core MA broker of record business is an important objective for this team, we will be doing so in a measured way that allows us to diversify while at the same time continuing to expand margins in our employer and individual business. This means focusing on rebuilding the foundation and certain key processes before returning to enrollment growth.
Franchise: Given our emphasis on profitability and cash flow generation, we continue to allocate capital thoughtfully and intentionally to support our core product programs and diversification initiatives.
Franchise: While expanding our presence outside of our core MA broker of record business is an important objective for this team we.
Franchise: We will be doing so in a measured way that allows us to diversify while at the same time continuing to expand margins.
Franchise: In our employer <unk> individual business.
Franchise: This means focusing on rebuilding the foundation and certainty processes before returning to enrollment growth.
Francis Samuel Soistman: As you recall, we took a similar approach last year within our core Medicare Advantage business, pausing growth as we enhanced our Medicare sales, marketing, and technology organizations before returning to strong growth at the end of 2023. On the technology side, following the close of Q1, we successfully piloted our new enrollment feature, Live Advice. This video chat capability provides an even greater level of transparency within the shopping, education, and enrollment process and builds an instant connection between the benefit advisor and beneficiary.
Franchise: Recall, we took a similar approach last year within our core Medicare advantage business pausing growth as we enhanced our Medicare sales marketing and technology organizations.
Franchise: For returning to strong growth at the end of 2023.
Franchise: On the technology side following the close of Q1, we successfully piloted our new enrollment feature live advice.
Franchise: This video chat capability provides an even greater level of transparency within the shopping education and enrollment process and built instant connection between the benefit advisor and beneficiary.
Francis Samuel Soistman: We believe this new capability has the potential to drive higher conversion rates and elevate retention as members feel more confident in the enrollment process and their plan selection. Additionally, over time, it could also empower beneficiaries to return to our platform to enroll through online transactions with minimal or no agent assistance. We continue to fine-tune our online platform, reducing friction points and streamlining the customer experience. In Q1, these efforts, combined with greater lead quality, helped drive a 20% year-over-year increase in online unassisted conversion rates and Important Operational Leverage.
Franchise: We believe this new capability has the potential to drive higher conversion rates and elevate retention as members feel more confident in the enrollment process and their plan selection.
Franchise: Over time it could also in tower beneficiaries to return to our platform to enroll through online transactions with minimal or no agent assistance.
Franchise: We continue to fine tune, our online platform, reducing friction points and streamlining the customer experience.
Franchise: In Q1 these efforts combined with greater lead quality helped drive a 20% year over year increase in online unassisted conversion rate.
Franchise: An important operational lever.
Franchise: Okay.
Francis Samuel Soistman: Within our marketing organization, we launched the ePerks program. EPerX offers participants a suite of tools and rewards meant to increase engagement and create a lasting member relationship. This includes Seamless Start, a service that helps beneficiaries set up their initial PCP appointment, mail order drugs, and annual wellness visits as needed. EPERX users also gain access to dedicated advisors who can answer questions and conduct periodic checkups to make sure that the beneficiaries are still on the optimal plan for them.
Franchise: Within our marketing organization, we launched the <unk> program.
Franchise: <unk> offers participants a suite of tools and rewards met to increase engagement and create a lasting member relationship.
Franchise: This includes seamless start a service that helps beneficiary set up their initial P. C. P appointment mail order drugs and annual wellness visits as needed.
Franchise: He perks users also gain access to a dedicated advisors, who can answer questions and conduct periodic checkups to make sure that the beneficiaries are still in the optimal plan for them.
Francis Samuel Soistman: Finally, ePerks includes special offers from our partners. The first of these partner offerings comes from Retireable, an organization that provides access to holistic retirement and financial planning services. We are excited about the potential of this new program and the favorable impact that we anticipate on our retention and customer affinity. Since its launch last month, we have already enrolled more than 200,000 existing eHealth Medicare customers in ePERC.
Franchise: Finally, he parks include special offers from our partners. The first of these partner offerings comes from Retiral in organization that provides access to holistic retirement and financial planning services.
Franchise: We are excited about the potential of this new program and the favorable impact that we anticipate on a retention and customer affinity.
Franchise: Since its launched last month, we have already enrolled more than 200000 existing ehealth Medicare customers any parks.
Francis Samuel Soistman: Additionally, Ehealth continues to place a strong emphasis on our existing retention initiatives. These include our rebuilt approach to the customer journey that we discussed on last quarter's call, tracking all channels and interactions with our platform, including lead nurturing, service, support, and value-added programs. The goal is to provide an increasingly personalized experience to each of our members depending on their unique situations and needs.
Franchise: Additionally, ehealth continues to place a strong emphasis on our existing retention initiatives.
Franchise: These include our rebuilt approach to the customer journey that we discussed on last quarter's call tracking all channels and interactions with our platform, including lead nurturing service support and value added programs.
Franchise: Our goal is to provide an increasingly personalized experience to each of our members depending on their unique situations and needs.
Francis Samuel Soistman: Trailing 12-month turnover in our Medicare Advantage Book of Business improved both sequentially and on a year-over-year basis. In conclusion, we had a strong start to the year and are well positioned to deliver on our growth and profitability goals. We are reiterating our 2024 annual guidance and are looking forward to updating you on our execution milestones in the coming quarters. Additionally, having achieved positive operating cash flow for the trailing 12 months ended March 31, we are focused on achieving the important goal of free cash flow generation.
Franchise: Trailing 12 month turnover in our Medicare advantage book of business improved both sequentially and on a year over year basis.
Franchise: In conclusion, we had a strong start to the year and are well positioned to deliver on our growth and profitability goals.
Franchise: We are reiterating our 2024 annual guidance and are looking forward to updating you on our execution milestones in the coming quarters. Additionally.
Franchise: Additionally, having achieved positive operating cash flow for the trailing 12 month ended March 31.
Franchise: We are focused on achieving the important goal of free cash flow generation.
Francis Samuel Soistman: Ehealth ended the quarter with a significant cash balance of $845.3 million in contract asset receivable value, which continues to be validated through positive adjustments, including another $2.5 million in net adjustment or tail revenue booked in Q1.
Franchise: Ehealth ended the quarter with a significant cash balance and $845 3 million in contract asset receivable value, which continues to be validated through positive adjustments, including another $2 5 million and net adjustment or tail revenue booked in Q1.
Francis Samuel Soistman: Our Blue Torch Credit Facility matures on February 25. We have begun exploring multiple avenues to improve our capital structure, including monetizing a portion of our contract receivable asset with a goal of lowering interest costs and providing additional liquidity for growth initiatives. Finally, our latest investor presentation will be posted on our website next week. It reflects important enhancements as well as feedback from many of you on our previous presentation. We look forward to discussing this further in New York City. John will now provide additional details of our financial performance and key metrics for the quarter. John?
Franchise: Our blue towards credit facility matures in February 25.
Franchise: We haven't got exploring multiple avenues to improve our capital structure, including monetizing a portion of our contract receivable asset with a goal of lowering interest cost and providing additional liquidity for growth initiatives.
Franchise: Finally, our latest investor presentation will be posted on our website next week. It reflects important enhancements as well as feedback from many of you on our previous presentations, we look forward to discussing it further in New York City.
Franchise: John will now provide additional details of our financial performance and key metrics for the quarter John.
John Joseph Stelben: Thank you Fran.
John Joseph Stelben: Our first quarter results were driven by strong revenue growth in our Medicare business, coupled with fixed cost savings across our organization, resulting in significantly improved adjusted EBITDA and operating cash flow compared to a year ago. Revenue of $93 million grew 26% year-over-year, driven primarily by our Medicare segment. First quarter Medicare segment revenue was $82.4 million, up 33% year-over-year, with growth in approved members, increased MALTVs, and higher non-commissioned revenue as compared to Q1 of 2023. First Quarter Medicare Advantage Broker of Record, or BOR, approved members grew 9%. Medicare Supplement BOR-approved members grew 35%, and total Medicare BOR-approved members grew 10% compared to Q1 a year ago.
John Joseph Stelben: Our first quarter results were driven by strong revenue growth in our Medicare business, coupled with fixed cost savings across our organization, resulting in significantly improved adjusted EBITDA and operating cash flow compared to a year ago.
John Joseph Stelben: Revenue of $93 million grew 26% year over year, driven primarily by our Medicare segment.
John Joseph Stelben: First quarter Medicare segment revenue was $82 4 million up 33% year over year with growth in approved members increased MAA Ltvs and higher non commission revenue as compared to Q1 of 'twenty three.
Franchise: First quarter Medicare advantage broker of record or.
Franchise: Our approved members grew 9% Medicare supplement.
Franchise: Our approved members grew 35% and total Medicare <unk> members grew 10% compared to Q1 a year ago.
Franchise: These results include enrollments from our core agency choice model as well as our carrier dedicated amplify enrollment model that we launched in 2023 and are scaling this year.
John Joseph Stelben: These results include enrollments from our core agency choice model, as well as our carrier-dedicated Amplify enrollment model that we launched in 2023 and are scaling this year. Since the Amplify launch last year and through the end of Q1 of 24, virtually all our sales on that platform have been BOR enrollments, where eHealth collects ongoing commissions in the same manner as our core agency business. Starting with Q2, we are transitioning our largest Amplify deals to BPO arrangements where eHealth has paid a one-time enrollment fee, as well as payments to cover certain call center costs, as opposed to receiving recurring commission payments. New enrollments generated under these BPO payment models will not flow through our reported approved member or estimated membership metric.
John Joseph Stelben: Since the amplify launched last year and through the end of Q1 of 'twenty for virtually all of our sales on that platform has been DLR enrollments were ehealth collect ongoing commissions in the same manner as our core agency business.
John Joseph Stelben: Starting with Q2, we are transitioning our largest amplify deals to BPL arrangements, where ehealth has paid a onetime enrollment fee as well as payments to cover certain call center costs as opposed to receiving recurring commission payments.
John Joseph Stelben: New enrollments generated under these bto payment models will not flow through our reported approved member or estimated membership metrics.
John Joseph Stelben: Slide 12, and 13 in our Q1 'twenty four earnings deck outlining the key operating and financial differences between our agency and amplify models.
John Joseph Stelben: Slides 12 and 13 in our Q124 Earnings Deck outline the key operating and financial differences between our agency and Amplify. In the first quarter of 24, Amplify generated approximately $7.2 million in Medicare revenue and approximately 13% of the approved Medicare BOR members in the quarter. To be clear, the large retail arrangement we announced last year related to an existing carrier has remained BOR up until March 31 of this year. This arrangement will move to a fee-based arrangement in Q2.
John Joseph Stelben: In the first quarter of 'twenty for amplify generated approximately $7 2 million in Medicare revenue and approximately 13% of the approved Medicare.
John Joseph Stelben: Members in the quarter.
John Joseph Stelben: To be clear the large PPL arrangement, we announced last year related to an existing carrier has remained or up until 331 of this year.
John Joseph Stelben: This arrangement will move to a fee based arrangement in Q2.
John Joseph Stelben: In addition, we picked up a new carrier BPO arrangement that was BOR in Q1 and will be moving to fee-based in Q2 as well. The majority of first-quarter Amplify revenue is from existing carriers, and we expect to grow these relationships as well as add new carriers to the platform. Customer Acquisition Costs per Medicare Advantage Equivalent Approved Member, which is comprised of Customer Care and Enrollment, or CC&E costs, and variable marketing costs, was $834, up 12% year over year.
John Joseph Stelben: In addition, we picked up a new carrier <unk> arrangement that was <unk> in Q1, and we will be moving to fee based in Q2 as well.
John Joseph Stelben: The majority of first quarter amplify revenue is from existing carriers and we expect to grow these relationships as well as add new carriers to the platform.
John Joseph Stelben: Customer acquisition cost per Medicare advantage equivalent approved member, which is comprised of customer care, new bromine or see any cost.
John Joseph Stelben: And variable marketing cost was $834 up 12% year over year.
John Joseph Stelben: First quarter CC&E per MA equivalent approved member grew 20% year over year, reflecting a higher number of advisors, including those advisors supporting our dedicated amplified fulfillment model, as well as retention staff who drive member engagement activities. While retention agents don't typically generate application volume, their services are expected to result in improved LTVs over time, as well as non-commissioned revenues such as HRAs. Additionally, this year we intentionally retained a larger percentage of our tenured advisors post-AEP in order to support first quarter OEP enrollment growth, as well as to increase average tenure and productivity within our sales team in advance of AEP. Variable marketing per MA equivalent approved member increased 5% year-over-year, driven primarily by channel management. Our telephonic conversion rate was flat with Q1 of last year.
John Joseph Stelben: First quarter CCNA per <unk> equivalent approved member grew 20% year over year, reflecting a higher number of advisors, including those advisers supporting our dedicated amplify fulfillment model.
John Joseph Stelben: As well as retention staff, who drive member engagement activities.
John Joseph Stelben: While retention agents don't typically generate application volume their services are expected to result in improved ltvs overtime as well as non commission revenue such as HRS.
John Joseph Stelben: Additionally, this year, we intentionally retained a larger percentage of our tenured advisors post AEP in order to support first quarter, Oh EP enrollment growth.
John Joseph Stelben: As well as to increase average tenure and productivity within our sales team.
John Joseph Stelben: In advance of AEP.
John Joseph Stelben: Variable marketing per Mcf equivalent approved member increased 5% year over year, driven primarily by channel mix.
John Joseph Stelben: Our telephonic conversion rate was flat with Q1 of last year.
John Joseph Stelben: Total non-GAAP customer care and enrollment cost of $32.4 million increased 32% year-over-year, and total non-GAAP marketing cost of $38.1 million increased 18% year-over-year. On a per-Medicare equivalent approved member basis, these increases were 20% and 5%, reflecting efficiency gains as the per-unit increases are lower than the absolute dollar increases. Recall that in Q1 2023, we were still in our MA transformation process, and Q1 2024 reflects Ehealth's return to profitable growth mode, hence the increased variable cost. First quarter Medicare Advantage LTVs increased 6% year-over-year to $952, reflecting favorable carrier and contract demand.
John Joseph Stelben: Total non-GAAP customer care and enrollment cost of $32 4 million increased 32% year over year, and total non-GAAP marketing cost of $38 1 million increased 18% year over year.
John Joseph Stelben: On a per Medicare equivalent approved member basis. These increases were 20% and 5% reflecting efficiency gains as the per unit increases are lower than the absolute dollar increases.
John Joseph Stelben: Recall that in Q1 2023, we were scaling our MAA transformation process in Q1, 'twenty four reflects ehealth returned to profitable growth mode, Hence the increased variable cost.
John Joseph Stelben: First quarter Medicare advantage, Ltvs increased 6% year over year to $952, reflecting favorable carrier and contract mix.
John Joseph Stelben: Total non-commissioned revenue was $12 million, compared to $5.7 million in Q1 of 2023, driven primarily by carrier sponsorship programs for Medicare business. Medicare segment profit was $8.3 million compared to a segment loss of $0.6 million in Q1 of 2023. This improvement is attributable to a year-over-year increase in non-commissioned revenue as well as greater scale in our Medicare segment as we return to enrollment growth year-over-year. I'll now move to our Employer and Individual, or E&I, sector.
John Joseph Stelben: Total non commission revenue was $12 million compared to $5 7 million in Q1 of 'twenty, three driven primarily by carrier sponsorship programs for our Medicare business.
John Joseph Stelben: Medicare segment profit was $8 3 million compared to a segment loss of <unk> 6 million Q1 of 'twenty three.
John Joseph Stelben: This improvement was attributable to the year over year increase in non commission revenue as well as greater scale in our Medicare segment, as we return to enrollment growth year over year.
John Joseph Stelben: I'll now move to our employer and individual or Eni.
John Joseph Stelben: This high-potential business is currently undergoing a transformation process similar to the transformation that we successfully completed within our Medicare segment. E&I continues to generate strong profit margins and positive net adjustment revenue, driven primarily by favorable retention trends on our existing book of IFP enrollments. First quarter E&I segment revenue was $10.6 million compared to $11.9 million in Q1 of 2023. Segment profit was $4.7 million compared to $7.7 million last year. These results reflect a 29% reduction in individual and family plan enrollment, a 16% reduction in ancillary enrollment, and a 15% reduction in small business group enrollment.
John Joseph Stelben: This high potential business is currently undergoing a transformation process similar to the transformation that we successfully completed within our Medicare segment.
John Joseph Stelben: Eni continues to generate strong profit margins.
John Joseph Stelben: Positive net adjustment revenue driven primarily by favorable retention trends.
John Joseph Stelben: Existing book of ISP enrollments.
John Joseph Stelben: First quarter Eni segment revenue was $10 6 million compared to $11 9 million in Q1 of 'twenty three.
John Joseph Stelben: Segment profit was $4 7 million compared to $7 7 million last year.
John Joseph Stelben: These results reflect a 29% reduction in the individual and family plan enrollments.
John Joseph Stelben: 16% reduction in ancillary Enrolments and a 15% reduction in small business group enrollments.
John Joseph Stelben: Similar to the cadence of our Medicare transformation last year, we expect to return to growth in E&I in the fourth quarter on an improved operational and cost foundation. Q1 results reflect $2.5 million in net adjustment or tail revenue across our business, including approximately $1 million from our Medicare business. Non-GAAP fixed costs, which we define as the combination of technology and content, and general and administrative, declined by 18%, or $6.2 million, primarily for compensation, benefits, and external vendor costs.
John Joseph Stelben: Similar to the cadence of her Medicare transformation last year, we expect to return to growth in Eni in the fourth quarter on an improved operational and cost Foundation.
John Joseph Stelben: Q1 results reflect $2 5 million in net adjustment our channel revenue across our business, including approximately $1 million from our Medicare business.
John Joseph Stelben: non-GAAP fixed cost, which we defined as the combination of technology and content and general and administrative declined by 18% or $6 2 million, primarily for compensation benefits and external vendor costs.
John Joseph Stelben: As we discussed on our last earnings call, we identified fixed cost reduction opportunities as part of our 2024 planning process and began realizing them in Q1, with additional reductions expected throughout the remainder of the year. On a consolidated basis, the net loss for the first quarter was $17 million compared to a net loss of $19.9 million last year. In Q1, we recognized 6.3 million in impairment and restructuring charges, largely related to our leased office locations as we continue to reduce our physical footprint to align with our remote first model. It also includes $800,000 in severance costs.
John Joseph Stelben: As we discussed on our last earnings call, we identified fixed cost reduction opportunity as part of our 2020 for planning process and began realizing them in Q1 with additional reductions expected throughout the remainder of the year.
John Joseph Stelben: On a consolidated basis net loss for the first quarter was $17 million compared to a net loss of $19 9 million last year.
John Joseph Stelben: In Q1, we recognized $6 3 million of impairment and restructuring charges.
John Joseph Stelben: Largely related to our leased office locations as we continue to reduce our physical footprint to align with our remote first model.
John Joseph Stelben: It also includes $800000 in severance costs.
John Joseph Stelben: We did not have any impairment or restructuring charges in the prior year quarter. Excluding these costs, net loss would have been $12.2 million as compared to net loss of $19.9 million a year ago. Adjusted EBITDA for Q1 was negative 1.7 million compared to negative 12.7 million a year ago. As we continue to reduce our physical footprint, we have consolidated all of our facilities-related costs under the GNA line item.
John Joseph Stelben: We did not have any impairment or restructuring charges in the prior year quarter.
John Joseph Stelben: Excluding these costs net loss would have been $12 2 million as compared to net loss of $19 9 million a year ago.
John Joseph Stelben: Adjusted EBITDA for Q1 was negative $1 7 million compared to a negative $12 7 million a year ago.
John Joseph Stelben: As we continue to reduce our physical footprint, we've consolidated all of our facilities related costs under the G&A line item.
John Joseph Stelben: Previously some facilities costs were allocated to the <unk>.
John Joseph Stelben: Previously, some facilities' costs were allocated to the CC&E, TNC, and M&A line items before our change in Q1 of 2024. These changes have been reflected in our Q1 of 2024 financials and applied retroactively to our historical statement. Operating cash flow for the first quarter was $70.8 million versus $60.8 million in Q1 of 23. Trailing 12-month cash flow from operations at March 31 was positive $3.3 million, up from negative $13.2 million a year ago and exceeded our goal of breaking even operating cash flow for this period.
John Joseph Stelben: TNC and M&A line items before our change in Q1 of 'twenty four.
John Joseph Stelben: These changes have been reflected in Q1, 'twenty for financials and applied retroactively to our historical statements.
John Joseph Stelben: Operating cash flow for the first quarter was $70 8 million versus $60 8 million in Q1 'twenty three.
John Joseph Stelben: Trailing 12 month cash flow from operation at March 31 was positive $3 3 million.
John Joseph Stelben: Up from negative $13 2 million, a year ago and exceeded our goal of breakeven operating cash flow for this period.
John Joseph Stelben: We ended the quarter with $188 9 million in cash cash equivalents and marketable securities on our balance sheet.
John Joseph Stelben: We ended the quarter with $188.9 million in cash, cash equivalents, and marketable securities on our balance sheet, which we believe is more than enough liquidity to satisfy our operational and strategic needs for the foreseeable future. The ending position of our combined short and long-term contract asset receivable was $845.3 million. As Fran mentioned during his remarks, we are reiterating our annual guidance ranges for fiscal year 2024. While there is still ambiguity in the potential interpretation of the CMS Final Medicare Advantage Rules, our decision is based on the information we have collected through extensive conversations with our carrier partners and industry subject matter experts. Navigating regulatory change is a core competency of eHealth, and we have done it successfully for many years, and I am confident in our ability to continue to do so with respect to this rule.
John Joseph Stelben: Which we believe is more than enough liquidity to satisfy our operational and strategic needs for the foreseeable future.
John Joseph Stelben: The ending position of our combined short and long term contract accurate receivable was $845 3 million.
John Joseph Stelben: As Fran mentioned during his remarks, we are reiterating our annual guidance ranges for fiscal year 2024.
John Joseph Stelben: While there is still ambiguity in the potential interpretation of CMS final Medicare advantage rule.
John Joseph Stelben: Our decision is based on the information we've collected.
John Joseph Stelben: Tensive conversations with our carrier partners and industry subject matter experts.
John Joseph Stelben: Navigating regulatory change is a core competency of Ehealth and we've done it successfully for many years and I am confident in our ability to continue to do so with respect to this rule.
John Joseph Stelben: Looking ahead to the second quarter, we expect revenue growth of about 10% year-over-year on an X-tail basis. For context, we recognized just under $19 million in TAIL revenue across our business in Q2 last year. We expect our profitability to be roughly in line with Q2 of last year, excluding tail revenue. This reflects greater revenue and greater CC&E year over year, largely driven by an increase in agent headcount as we strive for higher contribution from tenured advisors this AEP. With that, I will turn the call over to the operator to open up Q&A.
John Joseph Stelben: Looking ahead to the second quarter, we expect revenue growth of about 10% year over year on an ex <unk> basis.
John Joseph Stelben: For context, we recognized just under $19 million in tail revenue across our business in Q2 last year.
John Joseph Stelben: We expect our profitability to be roughly in line with Q2 of last year, excluding channel revenue.
John Joseph Stelben: This reflects greater revenue and greater see any year over year, largely driven by an increase in agent head count as we strive for higher contribution from tenured advisors. This AEP.
John Joseph Stelben: With that I will turn the call over to the operator to open up Q&A.
John Joseph Stelben: Okay.
Operator: At this time, if you would like to ask a question, please press the star and 1 on your telephone keypad. You may remove yourself from the queue at any time by pressing star 2.
John Joseph Stelben: At this time, if you would like to ask a question. Please press the star and one on your telephone keypad.
Operator: You may remove yourself from the queue at any time by pressing star two.
Operator: Once again, that is star and one to ask a question. We will pause for a moment to allow questions to queue, and we'll take our first question from George Sutton with Craig Hallam. Your line is open.
Operator: Once again that is star one.
George Frederick Sutton: To ask a question.
George Frederick Sutton: We'll pause for a moment to allow questions to queue.
Operator: And we'll take our first question from George Sutton with Craig Hallum. Your line is open.
James: Hey guys, this is James on for George. Thanks for taking my questions and for the nice results this morning. Do you talk about the scenarios you see potentially playing out in this AEP given the CMS final rule and the challenges we're hearing from payers? Sort of how are you managing or positioning the business to isolate yourself from those challenges?
Operator: Hey, guys. This is James on for George Thanks for taking my questions and actually results. This morning.
James: Can you talk about the scenarios you see potentially playing out this AEP given the CMS final rule and the challenges. We are hearing from payers sort of how are you managing are positioning the business to isolate yourself from those challenges.
Francis Samuel Soistman: Good morning, James. It's Fran.
Speaker Change: Yeah, Good morning, James itself brand.
Francis Samuel Soistman: Yes.
Francis Samuel Soistman: Yes. We've been working on strategies really for the past several months now, and we'll continue to refine those strategies, but we expect this upcoming AEP to be one of those situations where it best demonstrates the value proposition of eHealth in respect to what we anticipate will be a fair amount of disruption because of the pressures that Take care. Take care.
Fran: Where we've been working on strategies.
Francis Samuel Soistman: Really for the past several months now.
Francis Samuel Soistman: And we will continue to refine their strategy, but we expect this upcoming AEP to be.
Francis Samuel Soistman: One of those situations where.
Francis Samuel Soistman: Best demonstrates the value proposition of Ehealth in respect to what.
Francis Samuel Soistman: We anticipate the a fair amount of disruption.
Francis Samuel Soistman: Because of the pressures that.
Francis Samuel Soistman: Medicare advantage.
Francis Samuel Soistman: Health plans and carriers are experiencing all the items that I mentioned in my prepared remarks. Part of this is offense, of course, right? There's going to be, we anticipate a lot more beneficiaries who are accustomed to a certain level of supplemental benefits and other benefits that they value that may see changes and potentially significant changes. I think the pressure is on the Part D side, and the standalone parties are also going to be a source of shopping. And then, of course.
Francis Samuel Soistman: Health plans and carriers are experiencing through all the items that I mentioned in my prepared remarks.
Francis Samuel Soistman: Part of this is offensive horse right, there's going to be.
Francis Samuel Soistman: Dissipate a lot more beneficiaries, who are accustomed to a certain level of supplemental benefits.
Francis Samuel Soistman: And other benefits that they value that may see changes.
Francis Samuel Soistman: Potentially.
Francis Samuel Soistman: Significant changes I think the pressures on the part D side.
Francis Samuel Soistman: Both on the MA PD and Standalone part D are also going to be a source of shopping and then of course.
Francis Samuel Soistman: We expect, as some of the national carriers have already said publicly, basically everything's on the table for them, including geographic market exits and some of the other pressures they're going to feel through the limitations imposed by CMS, through the Total Beneficiary Cost to TBC, where they may end up having to phase out a product and introduce a new product in that market, which doesn't allow them to convert those beneficiaries automatically; they have to resell And that's where we come in to help with that process.
Francis Samuel Soistman: We expect has.
Francis Samuel Soistman: The national carriers have already said publicly.
Francis Samuel Soistman: Basically everything's on the table for them, including geographic market exits.
Francis Samuel Soistman: And some of the other pressures, they're going to scale for the limitations imposed by CMS or.
Francis Samuel Soistman: So I think it's going to be one of the more challenging pieces for the industry, meaning the carrier industry, than they've experienced in many years. But it's an opportunity for us to demonstrate the value that we bring to beneficiaries through our services.
Francis Samuel Soistman: The total beneficiaries passed the GBC.
Francis Samuel Soistman: Where they may end up having to phase out of product and introduce a new product in that market.
Francis Samuel Soistman: Which.
Francis Samuel Soistman: It doesn't allow them to convert those beneficiaries automatically if they have to resell them and thats, where we come in place to help with that process. So.
Francis Samuel Soistman: I think it's going to be one of the more challenging a piece for the industry, meaning the carrier industry.
Francis Samuel Soistman: Then they've experienced in many years, but it's an opportunity for our industry to demonstrate the value that we bring the beneficiaries.
Francis Samuel Soistman: Through our services.
Francis Samuel Soistman: Gotcha. And then with sort of higher switching or higher shopping activity expected, I guess, what strategy do you have in place to sort of improve your capture rate of those shoppers? Yeah, sure.
Francis Samuel Soistman: Gotcha, and then sort of higher switching or higher shopping activity expected I.
Francis Samuel Soistman: I guess what strategy do you have in place to sort of improve.
Francis Samuel Soistman: Your recapture rate of those shoppers.
Francis Samuel Soistman: Sure.
Francis Samuel Soistman: Sure. We continue to put tremendous effort and emphasis on the importance of retention and persistency in our book of business, our customer relationships, which is why we've done so much already in terms of increasing the value proposition through ePerks, as an example. We know that there's going to be a lot of activity, further complicated by the fact that this is an election year cycle. And often, as we've seen in the past, beneficiaries won't get the message as clearly as they do in off years because election advertising consumes so much of our time. So that results in pent-up demand following the election.
Francis Samuel Soistman: We continue to put tremendous effort and emphasis on the importance of retention persistency in our book of business, our customer relationships, which is why we've done so much already.
Francis Samuel Soistman: In terms of increasing the value proposition through E perks as an example.
Francis Samuel Soistman: We know that.
Francis Samuel Soistman: Hum.
Francis Samuel Soistman: There is going to be a lot of activity further complicated by the fact that this is an election year cycle and oftentimes we've seen in the past.
Francis Samuel Soistman: Beneficiaries bulk get the message as clearly as they do in off years, because the election advertising consume so much airtime.
Francis Samuel Soistman: So that results in.
Francis Samuel Soistman: Demand following the election.
Francis Samuel Soistman: So we're preparing for that. We're doing everything we can to alert our customers where they will likely experience the greatest disruption. The areas that you can focus on more intently are where there's going to be a geographic exit and knowing that you're going to need to intervene and move those beneficiaries into an alternative product if that carrier has exited, the current carrier. So it's, as I said, it's a combination of defending the books, and you do that proactively. And through our analytics, we'll do it with great precision. And then we'll also need to go on offense in terms of taking advantage of, perhaps, the volatility in the greater marketplace to capture more share.
Francis Samuel Soistman: So we're preparing for that we're preparing for.
Francis Samuel Soistman: Everything we can to alert our customers, where they will likely experienced the greatest disruption.
Francis Samuel Soistman:
Francis Samuel Soistman: Yes.
Speaker Change: Hey, Bob.
Francis Samuel Soistman: The.
Francis Samuel Soistman: The areas that you can focus on more intently is where there's going to be geographic exits and knowing that youre going to need to intervene and moved those beneficiaries into an alternative product that that carriers exited their current carrier. So it's.
Francis Samuel Soistman: As I said, it's a combination of defending the bumps and you do that proactively and through our analytics.
Francis Samuel Soistman: We'll do it with great precision and then.
Francis Samuel Soistman: We will also need to go on offense in terms of.
Francis Samuel Soistman: Taking advantage of perhaps the volatility and the greater marketplace to capture new to capture more share.
Francis Samuel Soistman: Gotcha. Last one for me, and I'll hop back in the queue.
Speaker Change: Got you.
Speaker Change: Last one for me and I'll hop back in the queue, but within the full year revenue guide what contribution are you assuming from direct to carrier relationships versus <unk> side of the business and what do you think that mix could look like in the next few years. Thanks guys.
James: But within the full-year revenue guide, what contribution are you assuming from direct carrier relationships versus the POR side of the business? And what do you think that mix could look like in the next few years? Thanks, guys. Hey, James, it's John. I think that when you think about the amplified business,
John Joseph Stelben: Hey, James, it's John. I think that when you think about the Amplify business, it will be called in the high single digits to 10% ish of the revenue based on what we have in the hopper today. And we continue to look for new opportunities. I think over the next several years, we expect to expand that Amplify business, especially as carriers are looking to look for different distribution models going forward, but over time, we would amplify to become a larger percentage of the overall revenue.
John: Hey, James It's John.
John Joseph Stelben: I think that when you think about the amplifier business.
John Joseph Stelben: It will be call it the high single digits to 10% ish.
John Joseph Stelben: The revenue based on what we have.
John Joseph Stelben: In the Hopper today, and we continue to look for new <unk>.
John Joseph Stelben: <unk> I think over the next several years, we expect to expand that amplify business.
John Joseph Stelben: Especially as carriers are looking to.
John Joseph Stelben: Looking for different distribution distribution models going forward, but.
John Joseph Stelben: Over time, we really amplify to become a larger percentage of the overall.
Speaker Change: Revenue I really can't sort of I don't want to guess at what it could be but.
John Joseph Stelben: If you were able to add.
John Joseph Stelben: I really can't sort of, I don't want to guess at what it could be, but If you were able to add... Similar-sized BPO deals to our recent ones, you could, over the next several years, approach 20%, 25% of total revenue.
John Joseph Stelben: Similar sized deals to our recent ones you could over the next several years.
John Joseph Stelben: Approached 20%, 25% of the total revenues.
Speaker Change: Thank you.
Operator: Thank you. If you would like to ask a question, please press star 1 at this time. Again, that is star and one to ask a question. We'll pause for another moment to allow questions to queue. And it appears that we have no further questions at this time. I will now turn the program back over to our presenters for any additional or closing remarks.
Operator: If you'd like to ask a question. Please press star one at this time.
Operator: Again that is star one.
Operator: To ask a question, we'll pause for another moment to allow questions to queue.
Operator: Hi.
Operator: And it appears that we have no further questions. At this time I will now turn the program back over to our presenters for any additional or closing remarks.
Francis Samuel Soistman: Thank you, operator. And thank you to everyone that dialed in for this morning's call. eHealth continues to make important progress towards our goal of steady, profitable growth. Our results this quarter are a key indicator of eHealth's strong strategic, operational, and financial foundation, made possible by the important work of our management team and all of our employees.
Speaker Change: Thank you operator, and thank you to everyone that dialed in for this morning's call.
Operator: So, we appreciate your continued support and look forward to meeting with our investors in the coming weeks. Thank you. That concludes today's teleconference. Thank you for your participation. You may now disconnect. Goodbye.
Francis Samuel Soistman: <unk> continues to make important progress towards our goal of steady profitable growth.
Operator: Our results this quarter are a key indicator of Ehow strong strategic operational and financial Foundation.
Operator: Made possible by the important work of our management team and all of our employees. So we appreciate your continued support and look forward to meeting with our investors in the coming weeks. Thank you.
Operator: That concludes today's teleconference. Thank you for your participation. You may now disconnect. Goodbye.
Operator: That concludes today's teleconference. Thank you for your participation you may now disconnect.
Operator: Goodbye.
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