Q4 2024 eHealth Inc Earnings Call

As long as all.

At this time, all participants have been placed in a listen only mode. The.

The floor will open for your questions following their prepared remarks.

year 2024 financial results.

Good morning and thank you all for joining us today. On the call today, Fran Soistman, eHealth's Chief Executive Officer, and John Dolan, Chief Financial Officer, will discuss our fourth quarter and fiscal year 2024 financial results. Following these prepared remarks, we will open the line for a Q&A session with industry analysts.

Ely: I'll now turn the call over to Ely know Brendan.

Your Investor Relations manager please.

Speaker Change: Go ahead.

Speaker Change: Good morning, and thank you all for joining us today on the call today, France, Horstmann, <unk>, Chief Executive Officer, and John Dolan, Chief Financial Officer, who will discuss our fourth quarter and fiscal year 2024 financial results. Following these prepared remarks, we will open the line for a Q&A session.

Rachel Smith: 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.

With industry analysts.

Rachel Smith: Today's press release, our historical financial news releases, and our filings with the SEC are also available on our website. We will open the line for a Q&A session with industry analysts. As a reminder, all of those being recorded and webcast from the Industrial Relations Execution of Colorado State. 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 website later today.

Speaker Change: As a reminder, this call is being recorded and webcast from the Investor Relations section of our website.

Speaker Change: Replay of the call will be available on our website later today.

Speaker Change: Today's press release, our historical financial news releases and our filings with the SEC are also available on our Investor Relations site.

Speaker Change: 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 forward looking statements on this call represent ehealth views as of today and actual results could differ materially we undertake no obligation to.

Speaker Change: We undertake no obligation to publicly address or update any forthcoming statements except as required by the law. The forward-looking statements that we will be making during this call are subject to a number of uncertainties and worries, including but not limited to those described in today's press release and in our most recent annual report to 10K. We undertake no obligation to publicly address or update any forthcoming statements except as required by the law.

Speaker Change: 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.

Speaker Change: Thank you, Eli, and thank you to everyone joining us this morning. eHealth delivered outstanding AEP results, materially exceeding our expectations for enrollment volume, revenue, and earnings. This is a testament to the success of the TRANSFORM eHealth.

Speaker Change: I'll also be discussing certain non-GAAP financial measures on this call managements definitions 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 friends placement.

Speaker Change: Thank you and thank you to everyone joining us this morning.

Speaker Change: Ehealth delivered outstanding AEP results materially exceeding our expectations for enrollment volumes revenue and earnings.

Speaker Change: including the exceptional performance of our licensed agents or benefit advisors, our innovative omni-channel platform, and the growing prominence of our brand.

Speaker Change: This is a testament to the success of the transform the health, including the exceptional performance of our licensed agents or benefit advisors are innovative omnichannel platform and the growing prominence of our brand.

Speaker Change: In December, we increased our 2024 Revenue and Earnings Guidelines to reflect our early read into the perspective of the transformed eHealth. The results published earlier this morning significantly exceed the high-end of our upward-moving revised Guidelines for Platform, Earnings, and adjusted EBITDA.

Speaker Change: In December we increased our 2020 for revenue and earnings guidance to reflect our early read into AEP execution.

Speaker Change: Fourth quarter revenue grew 27% compared to a year ago. Medicare's submissions across agency and amplified fulfillment models grew 38% with our agency model growing submissions by 49%, well above the overall medical market and adjusted EBITDA. We delivered this growth while substantially improving our enrollment margins. Importantly, we were profitable in terms of net income basis in the fourth quarter and the full year.

Speaker Change: The results published earlier this morning significantly exceed the high end of our upwardly revised guidance for revenue earnings and adjusted EBITDA.

Speaker Change: Fourth quarter revenue grew 27% compared to a year ago.

Speaker Change: Medicare submissions across agency and amplify fulfillment models grew 38% with our agency model growing submissions by 49% well above the overall Medicare market.

Speaker Change: We delivered this growth while substantially improving our enrollment margins.

for

Speaker Change: Our fourth quarter adjusted EBITDA for 79%, well above the over a year ago, representing a meaningful margin expansion, in addition to the remarkable execution of our operating team. Importantly, these results reflect unique Medicare market dynamics.

Speaker Change: Importantly, we were profitable on a GAAP net income basis for the fourth quarter and full year 2024.

Speaker Change: Our fourth quarter adjusted EBITDA grew in excess of 70% compared to a year ago, representing a meaningful margin expansion.

Speaker Change: We believe these dynamics made the value proposition of a carrier agnostic choice platform much more relevant compared to a year ago.

Speaker Change: In addition to the remarkable execution of our operating teams. These results reflect unique Medicare market dynamics.

Speaker Change: representing Unmeanful Margin Expansion. In addition to the remarkable execution of our operations, these results reflect unique Medicare market pressures, causing them to make material changes to their strategy. This included benefit and premium changes, as well as outright plan cancellations and market exits. As a result, we saw unprecedented disruption to MA plan offerings as carriers faced higher medical cost trends as well as greater trade pressures.

Speaker Change: We believe these dynamics made the value proposition of our carrier agnostic choice platform much more relevant to beneficiaries.

Speaker Change: This AEP, we observed unprecedented disruption to MA plan offerings as carriers faced higher medical cost trends as well as regulatory pressure, causing them to make material changes to their strategies.

Speaker Change: This included benefit and premium changes as well as outright planned cancellations and market exits.

Rachel Smith: and others who did material changes to their strategy. At the same time, competitive capacity across the industry was reduced due to outright plan cancellation over the past two years.

Speaker Change: As a result.

We saw elevated consumer demand as beneficiaries assess their coverage and in many cases opted to shop for a plan that better suited to their needs.

Rachel Smith: As a result, we saw elevated consumers demand that beneficiaries accept their coverage and, in many cases, opted to shop for a plan that better suits their needs. At the same time, competitive carriers sometimes used to control enrollment due to excess and downsizing over the past few years. This set the stage for an annual enrollment period for certain carriers in 2020 offerings.

Speaker Change: At the same time competitive capacity across the industry was reduced due to exits and downsizing over the past two years.

This set the stage for an annual enrollment period, where our Medicare matchmaker offerings was trying to stand out.

Speaker Change: Additionally, we observed an increase in commission suppression, a tactic carriers, sometimes used to control enrollments across our plan offerings.

Rachel Smith: was primed to stand out. Additionally, we observed an increase in commission suppression. In fact, the carrier agnostic strategy was what our agency for film and modeling offered.

Speaker Change: This happens to some degree every year, but it was particularly pronounced with certain carriers in 2024.

Speaker Change: Ehealth was able to successfully navigate these suppression given the broad selection of plans on our platform and our carrier agnostic strategy within our agency fulfillment model.

Rachel Smith: It was a greater challenge for Berger supporting just a handful of carriers, but as a result, we may see more competitor carriers in some of the next four months.

Rachel Smith: E-Health was able to successfully manage a decision to lean in on the strong consumer demand environment and invest in scale and market share strategy within our agency-strengthening model. It was a greater challenge to generate an attractive return on this investment.

Speaker Change: It was a greater challenge for brokers supporting just a handful of carriers and as a result, we may see more competitor exits over the next 12 months.

Speaker Change: During AEP, we made a strategic decision to lean in on the strong consumer demand environment and invest in scale and market share capture the.

Rachel Smith: and as a result, we've achieved more than we've ever expected. During a pandemic, we've made strategic decisions provided an obvious strong consumer demand environment to our strong brand and sales and market share capture. The strength of our marketing and sales operations continues to allow us to generate an attractive return on investment. Even if there is even a margin of substantially exceeded coverage,

Speaker Change: The strength of our marketing and sales operations allowed us to generate an attractive return on this investment.

Speaker Change: 124, adjusted EBITDA margins substantially exceeded margins implied by the high end of the guidance range. We provided in August.

Speaker Change: Through our strong brand and standout service quality, we are building our membership base that we expect will continue generating commission streams for as long as members remain on our platform, even if their needs evolve and a return to select and coverage.

Rachel Smith: While new members represented the vast majority of our enrollments in the fourth quarter, we also have successfully engaged our existing members through a variety of touchpoints. For many of these beneficiaries, we aim to build confidence when there is still a plan that best fits our new needs of all, and we also identified and reached out to members.

Speaker Change: While new members represented the vast majority of our enrollments in the fourth quarter. We also successfully engaged our existing members through a variety of touch points.

Rachel Smith: who were impacted by planned cancellations and carrier market exits as well as those who experienced significant benefits from premium changes. Our goal with these beneficiaries was to help them find new plans while maintaining their EOF plan that best fits their needs. We also identified and reached out to members who were impacted by planned cancellations and carrier market exits as well as those who experienced significant benefits from premium changes.

Speaker Change: For many of these beneficiaries, we aim to build confidence when they are still in a plan that best fits their needs. We also identified.

Speaker Change: Identified and reached out to members who are impacted by planned cancellations and carrier market exits as well as those who experienced significant benefit for premium changes.

Speaker Change: Our goal with these beneficiaries was to help them find new plans, while maintaining their ehealth membership and we believe we were largely successful in these efforts.

Rachel Smith: While these proactive member retention strategies are critical to our emergency, they were especially important in this AP.

Speaker Change: In addition to live benefit advisor support we provided proprietary online tools such as match monitor so that members can better understand changes to their coverage and assess their options.

Rachel Smith: In addition to the lives and the operational achievements, we provided proprietary online tools, such as Match Monitor, so that members could better understand each other's coverage and assessment. While the proactive member recruiting strategies were critical during fine-tuned audience targeting, they were especially important to the CEP. That communicates our differentiated operational achievement for Markleby Transfer App providers.

Speaker Change: While these proactive member retention strategies are critical during any enrollment period they.

Speaker Change: They were especially important this AEP.

Speaker Change: Moving now to some of the operational achievements that drove our fourth quarter outperformance.

Speaker Change: Over the past two years Ehealth marketing organization has been focused on building our direct channels through key areas, including brand building.

Rachel Smith: Our brand recognition metrics outperformed our competitors and showed a marked improvement compared to a year ago, with total aided awareness increasing 23%, fine-tuned audience targeting, and direct marketing channels drove over 100% growth in the fourth quarter enrollment compared to Q4 enrollment from direct channels the prior year. Our brand recognition metrics outperformed our competitors and showed a marked improvement compared to a year ago, with total aided awareness increasing 23%, fine-tuned audience targeting, and direct marketing channels drove over 100% growth in the fourth quarter enrollment compared to Q4 enrollment from direct channels the prior year.

Speaker Change: Been tuned audience targeting and compelling messaging.

Speaker Change: Communicates our differentiated offering as a trusted remark will be transparent adviser.

Speaker Change: Our brand recognition metrics outperformed our competitors and showed a marked improvement compared to a year ago with total aided awareness increasing 23%.

Speaker Change: Our branded direct marketing channels drove over 100% growth in fourth quarter enrollment compared to Q4 enrollments from direct channels the prior year.

Rachel Smith: Our branded customers respond to best of new content withated system. This results in higher efficiency performance from direct channels to prior users. Enrolling the growth of new channels is a significant increase in our online unassisted application result in an extremely sisticed workflow model.

Speaker Change: Enrollment growth in these channels outpaced the corresponding increase in marketing spend resulting in highly attractive unit economics.

Speaker Change: On average our direct channels over indexed towards customers that are higher converting with greater persistency.

Speaker Change: This results in higher LTV enrollments.

Rachel Smith: We also saw strong demand towards customers who are higher converting to a higher LTV audience, which is through a higher LTV enrollment.

Speaker Change: The standout performance of our direct digital channels also drove a significant increase in our online unassisted applications. Our most scalable fulfillment that's it.

Rachel Smith: The standout performance of our direct digital channel also drove a significant improvement in our online acquisition application, from 1.5x in Q4 2023 to 2x in Q4 2024.

Speaker Change: We also saw strong demand from new to Ma customers.

Speaker Change: Other higher LTV audience, which grew as a percentage of total application volume.

Speaker Change: In 2024 compared to <unk> 23.

Rachel Smith: and unit margins grew from 34% to 50% for the same periods.

Speaker Change: Our Medicare advantage LTV to CAC ratio grew from $1 five X in Q4 of 2023 to two X in Q4 2024.

Rachel Smith: Moving to our tele-sales organization, our Medicare Advantage LTE Accreditation Program, 1.5x, and C4.23, the 2x, and Q4.24.

Speaker Change: And unit margins grew from 34% to 50% for the same periods.

Speaker Change: Moving to our Telesales organization.

Speaker Change: Preparedness license benefit advisors enablement and execution were key to our ability to take advantage of the large inbound call volume. This AEP.

Speaker Change: In addition to having a greater number of tenured benefit advisors compared to a year ago. We also narrowed the gap between the effectiveness of brand new and seasoned advisers, resulting in substantial conversion rate gains of 39% year over year within our agency fulfillment model.

Speaker Change: We continue to empower our advisors with innovative tools that enhance their productivity and differentiate their services.

Rachel Smith: are one way video talk to a large number of advisors year over year with their agency enrollment that utilized exciting new technology. Our digital capabilities were also essential to our agencies success.

Speaker Change: For example, during Q4, we extended lives advise our one way video chat capability to a larger number of advisors, resulting in increased conversions for the enrollments that utilize this exciting new technology.

Speaker Change: Our digital capabilities, we're also essential to our AAP success.

Speaker Change: During the first three quarters of 2024, we invested in further streamlining and personalized consumer experience on our platform.

Speaker Change: This included a more seamless flow from online ads into tailored landing pages within our shopping tunnel with a goal of matching our platform's experience with the customer shopping intent.

Speaker Change: Another focus area with returning visitors through a coordinated cross channel efforts with targeted consumers, who visited our platform in the past and took action to remove friction points. These return users by allowing them to pick up where they left off.

Speaker Change: During the fourth quarter, we drove 37% more visitors to our online platform and converted them at a greater rate, resulting in a 58% increase in Q4 submitted online unassisted applications compared to a year ago.

Speaker Change: We also have several exciting AI driven projects in the works for 2025.

Speaker Change: This will be led by our newly established AI Center of Excellence, which will help guide and prioritize our AI initiatives going forward.

Speaker Change: We believe that generally that AI can help add efficiency across our organization from automating manual processes, including planned data and content management on our digital platform. So increasing the productivity of our engineering teams all the way to driving our call screening process and handing leads off to our licensed benefit advisors.

Which will help allow us to serve beneficiaries better, especially in the peak days of the enrollment season.

Another focus area with returning visitors through a coordinated cross channel efforts with targeted consumers, who visited our platform in the past and took action to remove friction points. These return users by allowing them to pick up where they left off.

Speaker Change: Moving to amplify our carrier dedicated fulfillment model.

Speaker Change: During Q4 amplify volume came in below expectations.

Speaker Change: We believe the market environment favor to choice platform with broad carrier selection. Additionally, our amplify carriers were more focused on margin protection and enrollment growth to say AP, which limited the success fees were paid under a bto arrangements.

During the fourth quarter, we drove 37% more visitors to our online platform and converted them at a greater rate, resulting in a 58% increase in Q4 submitted online unassisted applications compared to a year ago.

Speaker Change: At the same time, we continued to deliver enrollments at high conversion rates and quality metrics for a bto partners.

We also have several exciting AI driven projects in the works for 2025.

This will be led by our newly established AI Center of Excellence, which will help guide and prioritize our AI initiatives going forward.

Speaker Change: <unk> Leverages, our platform and core competencies, allowing us to drive enrollments with lower upfront cash investments compared to the agency model.

We believe that generally that AI can help add efficiency across our organization from automating manual processes, including planned data and content management on our digital platform. So increasing the productivity of our engineering teams all the way to driving our call screening process and handing leads off to our license benefit advisors.

Speaker Change: We believe that an improving MA rate regulatory environment will benefit this model and we plan to continue scaling it with both new and existing customers.

Speaker Change: Our med sup business had a strong quarter with submissions up 9% year over year and a considerable.

Speaker Change: Increase in the estimated lifetime values, reflecting favorable carrier mix and retention.

Which will help allow us to serve beneficiaries better, especially in the peak days of the enrollment season.

Speaker Change: We also grew our ancillary product enrollments driven by dental and vision products.

Moving to amplify our carrier dedicated fulfillment model.

Speaker Change: As you can see from our financial and operating results Ehealth successfully navigated the Medicare sector disruption.

During Q4 amplify volume came in below expectations.

We believe the market environment favorite of choice platform with broad carrier selection. Additionally, our amplify carriers were more focused on margin protection and enrollment growth to say P, which limited the success fees, we were paying under our a bto arrangements.

Speaker Change: Taking market share and scaling our business at attractive economics.

Speaker Change: Consumer demand represented a strong tailwind for us and we were ready to lean into this trend given our nimble scalable platform that can be leveraged for growth when the opportunity arises.

At the same time, we continued to deliver enrollments at high conversion rates and quality metrics for our BPM partners.

Speaker Change: We remain confident that we are in a strong competitive and financial position to continue building on this momentum.

Amplified leverages, our platform and core competencies, allowing us to drive enrollments with lower upfront cash investments compared to the agency model.

Speaker Change: Looking ahead, we expect the Medicare market to remain fluid with more changes underway and are ready to be opportunistic in this environment.

We believe that an improving MA rate regulatory environment will benefit this model and we plan to continue scaling it with both new and existing customers.

Speaker Change: It is our belief that the regulatory environment in the Medicare advantage sector.

Speaker Change: Will improve over the next four years relative to the prior administration.

Our med sup business had a strong quarter with submissions up 9% year over year and a considerable increase in the estimated lifetime values, reflecting favorable carrier mix and retention.

Speaker Change: Importantly, early indicators will be the final Ma rates as well as final MA and PDP marketing rules expected in the second quarter.

Speaker Change: Additionally, carriers continue to communicate margin pressure within their Ma businesses.

We also grew our ancillary product enrollments driven by dental and vision products.

Speaker Change: While many of them took action to improve profitability of our Medicare advantage plans last year.

Speaker Change: It remains to be seen what dynamics will dominate as carriers decide on their plan offerings and geographic strategies ahead of Q4.

Speaker Change: Their decisions will have a direct impact on consumer behavior next enrollment season.

Speaker Change: The bottom line is that it's hard to predict the consumer demand environment for this AEP does this early in the year, especially given the uniqueness of 2024.

As a result, we're taking a balanced approach to our outlook.

Speaker Change: As a starting point, we're guiding to relatively flat revenues compared to a year ago.

Speaker Change: John will provide detailed guidance and a corresponding operational assumptions in his remarks, but I would like to point out that we are tracking nicely against the three year revenue and adjusted EBITDA targets that we provided last year.

Rachel Smith: Will improve over the next four years relative to the prior administration.

Rachel Smith: Importantly, early indicators will be the final Ma rates as well as final MA and PDP marketing rules expected in the second quarter.

Speaker Change: Targets included our goal to grow at an 8% to 10% revenue CAGR between 2023 and 2026 <unk>.

Speaker Change: And to reach 8% to 10% adjusted EBITDA margins by 2026.

Speaker Change: Additionally, carriers continue to communicate margin pressure within their Ma businesses.

Speaker Change: In 2024, we pulled forward some of the growth leaning into the attractive demand environment.

Speaker Change: While many of them took action to improve profitability of our Medicare advantage plans last year.

Speaker Change: Just on the mid points of the 2025 guidance ranges are 23% to 25% revenue CAGR is expected to be 8% with an implied 2025, adjusted EBITDA margin of 9%.

Speaker Change: It remains to be seen what dynamics will dominate as carriers decide on their plan offerings and geographic strategies ahead of Q4.

Speaker Change: Their decisions will have a direct impact on consumer behavior next enrollment season.

It is also implies an impressive adjusted EBIT CAGR of 84%.

Speaker Change: The bottom line is that it's hard to predict the consumer demand environment for this AEP. This early in the year, especially given the uniqueness of 2024.

Speaker Change: Our 2025 strategic priorities align with our three year strategy to build a sustainably profitable cash flow generative business through scale differentiation in Medicare advantage agency services and.

Speaker Change: As a result, we're taking a balanced approach to our outlook.

Speaker Change: As a starting point, we're guiding to relatively flat revenues compared to a year ago.

Speaker Change: Targeted diversification.

Speaker Change: John will provide detailed guidance and a corresponding operational assumptions in his remarks, but I would like to point out that we are tracking nicely against the three year revenue and adjusted EBITDA targets that we provided last year.

Speaker Change: These priorities are as follows and can be found in our earnings presentation.

Speaker Change: We aim to expand our brand recognition across all direct marketing channels and extend our brand beyond our core Medicare advantage products.

Speaker Change: Targets included our goal to grow at an 8% to 10% revenue CAGR between 2023 and 2026 <unk>.

Speaker Change: Second we plan to enhance our retention and customer loyalty strategies, recognizing that lasting relationships transcend individual interactions and specific products.

Speaker Change: And to reach 8% to 10% adjusted EBITDA margins by 2026.

Speaker Change: Third we will focus on optimizing our telesales organization by providing our advisers with industry, leading brand support training programs career development opportunities and technological tools.

Speaker Change: In 2024, we pulled forward some of the growth leaning into the attractive demand environment.

Speaker Change: Just on the mid points of the 2025 guidance ranges are 23% to 25% revenue CAGR is expected to be 8% with an implied 2025, adjusted EBITDA margin of 9%.

Speaker Change: Fourth.

Speaker Change: We plan to advance our AI and digital technology leadership to better serve all key ehealth stakeholders, including consumers employees and carriers.

Speaker Change: It is also implies an impressive adjusted EBIT CAGR of 84%.

Speaker Change: Fifth we aim to strengthen and expand our carrier relationships, which are critical to our agency choice model.

Speaker Change: Our 2025 strategic priorities and align with our three year strategy to build a sustainably profitable cash flow generative business through scale differentiation in Medicare advantage Agency services.

Speaker Change: Fifth and finally, we plan to diversify our revenue base through targeted investments in Medicare supplement under 65 individual and family employer ancillary products and carrier dedicated services.

Speaker Change: Targeted diversification.

Speaker Change: These priorities are as follows and can be found in our earnings presentation.

Speaker Change: First we aim to expand our brand recognition across all direct marketing channels and extend our brand beyond our core Medicare advantage products.

Speaker Change: It is truly an exciting time to be part of this organization and I am confident in this team's ability to continue delivering on our goals, while improving the health care journey for millions of Americans.

Speaker Change: We plan to enhance our retention and customer loyalty strategies, recognizing that lasting relationships transcend individual interactions and specific products.

Speaker Change: I also want to acknowledge our exceptional company culture and extend my gratitude to our employees and management teams for their invaluable contributions to our success in 2024.

Speaker Change: Third we will focus on optimizing our total sales organization by providing our advisers with industry, leading brand support training programs career development opportunities and technological tools.

Speaker Change: I'll now turn the call over to John Dolan, who will cover our financial performance in greater detail and discuss our guidance for fiscal 2025 John.

Rachel Smith: Fourth we plan to advance our AI and digital technology leadership to better serve all key ehealth stakeholders, including consumers employees and carriers.

John Dolan: Thank you Fran and good morning, everyone.

John Dolan: I am pleased to report exceptional fourth quarter results that demonstrate our strong execution in a dynamic market.

John Dolan: On the internal macro catalysts that Fran described we achieved significant Medicare volume growth, while improving enrollment profitability in.

Rachel Smith: Fifth.

Rachel Smith: We aim to strengthen and expand our carrier relationships, which are critical to our agency choice model.

Fifth and finally, we plan to diversify our revenue base through targeted investments in Medicare supplement under 65 individual and family employer ancillary products and carrier dedicated services.

John Dolan: In fact, we generated record high revenue and record high net income of any quarter and we'll talk to restrict.

John Dolan: During the annual enrollment period capitalized on stronger than expected consumer demand, we're making the strategic decision to pursue enrollment growth beyond our initial targets.

Speaker Change: He is truly an exciting time to be part of this organization and I am confident in this team's ability to continue delivering on our goals, while improving the health care journey for millions of Americans.

John Dolan: While this decision enhanced our 2020 core revenue and earnings and necessitated a larger upfront cash investment than initially forecasted due to the timing between the payment of acquisition costs and a receipt of commission payments, which typically begin in Q1.

Rachel Smith: I also want to acknowledge our exceptional company culture and extend my gratitude to our employees and management teams for their invaluable contributions to our success in 2024.

John Dolan: We are confident that this strategic choice will generate substantial value as we have acquired what we believed to be a high quality number cohort that will deliver recurring commission payments for years to come.

Rachel Smith: I'll now turn the call over to John Dolan, who will cover our financial performance in greater detail.

Rachel Smith: And discuss our guidance for fiscal 2025 John.

John Dolan: Specifically this new cohort helped drive year over year commissioned receivables growth in excess of $80 million to a record level of $1 billion as of December 31, 2024.

John Dolan: Thank you Fran and good morning, everyone.

John Dolan: I am pleased to report exceptional fourth quarter results that demonstrate our strong execution in a dynamic market building.

Rachel Smith: Building on the internal and macro catalysts that frame described we achieved significant Medicare volume growth, while improving enrollment profitability in <unk>.

John Dolan: I will now share highlighted fourth quarter 2024 metrics with all comparisons year over year, unless otherwise noted.

John Dolan: Fourth quarter revenue increased 27% to a record high $315 2 million.

Rachel Smith: Fact, we generated record high revenue and record high net income of any quarter in the company's history.

John Dolan: Excluding that adjusted revenue or tail, both periods revenue grew 33%.

Rachel Smith: During the annual enrollment period capitalized on stronger than expected consumer demand, we're making the strategic decision to pursue enrollment growth beyond our initial targets.

John Dolan: GAAP net income increased 87% to a record level $97 5 million up from $52 2 million.

Rachel Smith: This decision enhanced our 2020 for revenue and earnings and necessitated a larger upfront cash investment than initially forecasted due to the timing between the payment of acquisition costs.

John Dolan: Fourth quarter, adjusted EBITDA grew 74% to $121 3 million and the adjusted EBITDA margin was 38% for the quarter.

Rachel Smith: <unk> Commission payments, which typically begin in Q1.

John Dolan: Our Medicare business delivered its best fourth quarter performance in years Mehdi.

Rachel Smith: We are confident that this strategic choice will generate substantial value as we have acquired what we believe to be a high quality number cohort will deliver recurring commission payments for years to come.

John Dolan: Medicare segment revenue of $305 8 million grew 31%.

Speaker Change: Total Medicare submissions increased 38% across agency and amplify enrollments.

Rachel Smith: Typically this new cohort helped drive year over year Commission receivables growth in excess of $80 million to a record level of $1 billion as of December 31, 2024.

Speaker Change: Submissions in our agency fulfillment model rose, 49%, reflecting current consumer market preference for platforms with broad plan offerings.

Speaker Change: Acquisition cost per approved Medicare member improved 23% driven by enhanced lead quality and significantly higher conversions or telephonic Lee and through our online platform.

Rachel Smith: I'll now share highlighted fourth quarter 2024 metrics with all comparisons year over year, unless otherwise noted.

Rachel Smith: Fourth quarter revenue increased 27% to a record high $315 2 million.

Speaker Change: Meet that customer care and enrollment costs per approved member improved 28% in variable marketing costs per approved member improved 19%.

Rachel Smith: Excluding that adjusted revenue or tail, both periods revenue grew 33%.

Rachel Smith: GAAP net income increased 87% to a record level $97 5 million up from $52 2 million.

Speaker Change: Medicare advantage lifetime value increased 2% to $1174.

Speaker Change: LTV to CAC ratio was two <unk> exceeding our target of $1 seven X and improved meaningfully from one buybacks in the fourth quarter last year.

Rachel Smith: Fourth quarter, adjusted EBITDA grew 74% to $121 3 million and the adjusted EBITDA margin was 38% for the quarter.

Speaker Change: Medicare segment gross profit increased 56% to $159 9 million.

Rachel Smith: Our Medicare business delivered its best fourth quarter performance in years medic.

Rachel Smith: Medicare segment revenue of $305 8 million grew 31%.

Speaker Change: Our Eni segment revenue was down 33% to $9 4 million in the fourth quarter with.

Rachel Smith: Total Medicare submissions increased 38% across agency and amplify enrollments.

Speaker Change: Segment gross profit of $4 million.

Speaker Change: Excluding sale revenue fourth quarter segment revenue declined 16%.

Rachel Smith: Submissions in our agency fulfillment model rose, 49%, reflecting current consumer market preference for platforms with broad plan offerings.

Speaker Change: While we maintain strong conviction in our opportunities in the under 65 and employer markets. We made the strategic decision during AEP to allocate resources towards Medicare advantage growth.

Rachel Smith: Acquisition cost per approved Medicare member improved 23% driven by enhanced lead quality and significantly higher conversions or telephonic Lee and through our online platform.

Speaker Change: On a consolidated basis fourth quarter tail revenue was $7 6 million of which $5 nine came from our Medicare segment.

Rachel Smith: Underneath that customer care and enrollment costs per approved member improved 28%.

Speaker Change: This brings total 2020 for tail to $22 7 million compared to $48 1 million a year ago.

Rachel Smith: Variable marketing costs per approved member improved 19%.

Speaker Change: Let's say, we recognize reflects continued cash collections in excess of our original LTV estimates.

Rachel Smith: Medicare advantage lifetime value increased 2% to $1174.

Speaker Change: There continues to be significant unrecognized positive adjustments related to our Medicare book of business, including but not limited to our initial constraint.

LTV to CAC ratio was two <unk> exceeding our target of $1 seven X and improved meaningfully from one buybacks in the fourth quarter last year.

Speaker Change: Fourth quarter, non-GAAP operating expenses, which exclude stock based compensation and impairment and restructuring charges.

Rachel Smith: Medicare segment gross profit increased 56% to $159 9 million.

Rachel Smith: Our Eni segment revenue was down 33% to $9 4 million in the fourth quarter with segment gross profit of $4 million.

Speaker Change: $197 7 million, an 8% increase.

Speaker Change: Despite the considerable growth we achieved in Q4, we reduced our non-GAAP fixed costs, which include a combination of our technology and content and general and administrative by 1%.

Rachel Smith: Excluding sale revenue fourth quarter segment revenue declined 16%.

Rachel Smith: While we maintain strong conviction in our opportunities in the under 65 and employer markets. We made the strategic decision during AEP to allocate resources towards Medicare advantage growth.

Speaker Change: Q4, non-GAAP marketing and advertising increased 9%, notably much smaller than our revenue enrollment growth rates for the same period indicative of much greater return on our marketing spend compared to last year.

Rachel Smith: On a consolidated basis fourth quarter tail revenue was $7 6 million of which $5 nine came from our Medicare segment.

Speaker Change: Q4, non-GAAP customer care and enrollment increased 12% driven by our larger advisor force a larger number of screeners and retention agents compared to last year.

Rachel Smith: This brings total 2020 for sale to $22 7 million compared to $48 1 million a year ago.

Speaker Change: Turning to our consolidated full year financial highlights.

Rachel Smith: The sale, we recognized reflects continued cash collections in excess of our original LTV estimates.

Speaker Change: 2024 marked our return to profitability on a GAAP net income basis, a substantial achievement an indicator of the progress. This organization has made over the past three years.

Rachel Smith: There continues to be significant unrecognized positive adjustments related to our Medicare book of business, including but not limited to our initial constraint.

Speaker Change: Annual revenue of $532 4 million increased 18%.

Rachel Smith: Fourth quarter, non-GAAP operating expenses, which exclude stock based compensation and impairment and restructuring charges.

Speaker Change: Excluding that adjustment revenue or sale full year 2024 revenue grew 26% and net income of $10 1 million increased $38 3 million.

Rachel Smith: $197 7 million, an 8% increase.

Rachel Smith: Despite the considerable growth we achieved in Q4, we reduced our non-GAAP fixed costs, which include a combination of our technology and content and general and administrative by 1%.

Speaker Change: 2024, adjusted EBITDA was $69 3 million, an increase of $55 2 million.

Speaker Change: The adjusted EBITDA margin was 13% for the year, a material improvement over 3% a year ago.

Rachel Smith: Q4, non-GAAP marketing and advertising increased 9%, notably much smaller than our revenue enrollment growth rates for the same period.

Speaker Change: Excluding <unk> revenue adjusted EBITDA improved by $80 6 million for the full year.

Rachel Smith: Indicative of much greater return on our marketing spend compared to last year.

Speaker Change: Full year 2024, non-GAAP operating expenses were $479 5 million up 5%.

Q4, non-GAAP customer care and enrollment increased 12% driven by our larger advisor force and a larger number of screeners and retention of agents compared to last year.

Speaker Change: This included an 8% decline in non-GAAP fixed costs, and 11% and 10% increases in non-GAAP marketing and advertising and non-GAAP <unk> costs, respectively.

Rachel Smith: Turning to our consolidated full year financial highlights.

Rachel Smith: 2024 marked our return to profitability on a GAAP net income basis.

Speaker Change: We ended the year with $82 2 million in cash cash equivalents and marketable securities.

Rachel Smith: Substantial achievement, an indicator of the progress. This organization has made over the past three years.

Speaker Change: A reminder, at the end of the year is a seasonally low point of our cash balance cycle.

Rachel Smith: Annual revenue of $532 4 million increased 18%.

Speaker Change: Reflecting the A&P expenses Q1 is our seasonally highest cash collection quarter as commission payments related to AEP enrollment cohorts begin in January.

Rachel Smith: Excluding that adjustment revenue or sale full year 2024 revenue grew 26% and net income of $10 1 million increased $38 3 million.

Speaker Change: We expect this will yield a meaningful increase in balance sheet cash as of the end of the first quarter of 2025 relative to December.

Rachel Smith: 2024, adjusted EBITDA was $69 3 million, an increase of $55 2 million.

Speaker Change: As such we believe we have sufficient liquidity to execute on our strategic plan, while we continue to work towards improving our capital structure.

Rachel Smith: Adjusted EBITDA margin was 13% for the year and material improvement over 3% a year ago.

Rachel Smith: Excluding <unk> revenue adjusted EBITDA improved by $80 6 million for the full year.

Speaker Change: As discussed on last quarter's call. We reached an agreement with our term lender blue torch to extend the maturity of our $70 million loan by one year under slightly more favorable terms. This change took effect during the fourth quarter.

Rachel Smith: Full year 2024, non-GAAP operating expenses were $479 5 million up 5% and this included an 8% decline in non-GAAP fixed costs, and a 11% and 10% increases in non-GAAP marketing and advertising and non-GAAP <unk> costs, respectively.

Speaker Change: Thinking about our approach to available capital solutions more broadly our guiding philosophy is the pursuit of a claim best in class capital structure that will provide maximum strategic and financial flexibility going forward.

Rachel Smith: We ended the year with $82 2 million in cash cash equivalents and marketable securities.

Speaker Change: I will now review the financial guidance for 2025.

Rachel Smith: As a reminder, at the end of the year is a seasonally low point of our cash balance cycle.

Speaker Change: We expect total revenue to be in the range of 510 million to $550 million.

Rachel Smith: Reflecting the A&P expenses Q1 is our seasonally highest cash collection quarter as commission payments related to AEP enrollment cohorts begin in January.

Speaker Change: We expect GAAP net income to be in the range of a net loss of $10 million.

Speaker Change: So the net income of $15 million.

Speaker Change: We expect adjusted EBITDA to be in the range of 35 million to $60 million.

Rachel Smith: We expect this will yield a meaningful increase in balance sheet cash as of the end of the first quarter of 2020 relative to December.

Speaker Change: And operating cash flow is expected to be in the range of negative $25 million to positive $10 million.

Rachel Smith: As such we believe we have sufficient liquidity to execute on our strategic plan, while we continue to work towards improving our capital structure.

Speaker Change: These ranges contemplate positive net adjusted revenue in the range of zero to $20 million.

Speaker Change: I would also like to provide additional color regarding quarterly cadence as it is expected to be different than in the past.

Rachel Smith: As discussed on last quarter's call. We reached an agreement with our term lender blue torch to extend the maturity of our $70 million loan by one year under slightly more favorable terms. This change took effect during the fourth quarter.

Speaker Change: This year Q1 is expected to be our primary enrollment growth quarter supported by the strong consumer demand trends described earlier in the call and our decision to retain a larger number of seasonal advisors posted annual enrollment period.

Rachel Smith: Thinking about our approach to available capital solutions more broadly.

Rachel Smith: Guiding philosophy is the pursuit of a claim best in class capital structure that will provide maximum strategic and financial flexibility going forward.

Speaker Change: At the same time, we currently expect that while consumer propensity to shop will remain elevated in the coming AEP, we do not expect to see nearly the same level of activity is seen in 2020 for.

Rachel Smith: I will now review the financial guidance for 2025.

Speaker Change: This is reflected in our enrollment volume expectations.

Rachel Smith: We expect total revenue to be in the range of 510 million to $550 million.

Speaker Change: Further due to recent regulatory changes most beneficiaries on dual eligible special needs plans were decent ups will no longer be permitted to change their plans on a quarterly basis.

Rachel Smith: We expect GAAP net income to be in the range of a net loss of $10 million.

Rachel Smith: So the net income of $15 million.

Rachel Smith: We expect adjusted EBITDA to be in the range of 35 million to $60 million.

Speaker Change: These notes have historically represented a considerable portion of our Q2 and Q3 volumes.

Rachel Smith: And operating cash flow is expected to be in the range of negative 25 million to positive $10 million.

As a result, we plan to reduce our MA focused marketing spend during these quarters relative to past years.

Rachel Smith: These ranges contemplate positive net adjusted revenue in the range of zero to $20 million.

Speaker Change: In summary, after an exceptional AEP last year, when we scaled our member base at a highly attractive ROI.

Rachel Smith: I would also like to provide additional color regarding quarterly cadence as it is expected to be different than in the past. This.

Speaker Change: We are taking a more measured approach in 2020.

This year Q1 is expected to be our primary enrollment growth quarter supported by the strong consumer demand trends described earlier in the call.

Speaker Change: Specifically, we will continue to focus on unit economics, and our MAA agency business further increasing the contribution from our branded marketing channels, while reducing our investment in third party leads.

Rachel Smith: Our decision to retain a larger number of seasonal advisors posted annual enrollment period.

Speaker Change: We'll also make incremental investments in our diversification initiatives.

Rachel Smith: At the same time, we currently expect that while consumer propensity to shop will remain elevated in the coming AEP.

Speaker Change: Our dedicated carrier business in particular is expected to grow as a percentage of total revenue in 2025.

Rachel Smith: Do not expect to see nearly the same level of activity is seen in 2024.

Speaker Change: The margin in this channel is currently below what we generate on the agency side does it is it is the new business model, which we expect will continue to improve as it matures and scales.

Rachel Smith: This is reflected in our enrollment volume expectations.

Rachel Smith: Further due to recent regulatory changes most beneficiaries on dual eligible special needs plans were decent ups will no longer be permitted to change their plans on a quarterly basis.

Speaker Change: Additionally, we plan to increase our retention team head count in 2025.

Speaker Change: Which we expect to increased <unk> costs would have a long term positive impact on cash collections to remember retention.

Rachel Smith: These notes have historically represented a considerable portion of our Q2 into Q3 volumes.

Rachel Smith: As a result, we plan to reduce our MAA focused marketing spend during these quarters relative to past years.

Speaker Change: To reiterate we currently forecast enrollment and revenue to grow in Q1, followed.

Speaker Change: Followed by declines in Q2, and Q3, and a flattish fourth quarter compared to the same quarters in 2024.

Rachel Smith: In summary, after an exceptional AEP last year, when we scaled our member base at a highly attractive ROI.

Speaker Change: In terms of profitability, given our investment in diversification initiatives and our lower agency volume expectations in Q2 through Q4.

Rachel Smith: We are taking a more measured approach in 2025.

Rachel Smith: Specifically, we will continue to focus on unit economics, and our MAA agency business further increasing the contribution from our branded marketing channels, while reducing our investment in third party leads.

Speaker Change: <unk> EBITDA is currently forecasted to decline each quarter and for the full year relative to the same periods a year ago.

Rachel Smith: We will also make incremental investments in our diversification initiatives are.

Speaker Change: In Q1, specifically, we expect adjusted EBITDA loss to be in the high single digits millions of dollars.

Rachel Smith: Our dedicated carrier business in particular is expected to grow as a percentage of total revenue in 2025.

Speaker Change: It is important to note that while 2024 was somewhat of an outlier in terms of market environment, and resulting performance our underlying trajectory remains strong.

Rachel Smith: The margin in this channel is currently below what we generate on the agency side. How does it is it is the new business model, which we expect will continue to improve as it matures and scales.

Speaker Change: Selecting the monumental operational improvements this organization has made.

Speaker Change: To summarize some of these historic metric improvements in the earnings deck.

Rachel Smith: Additionally, we plan to increase our retention team head count in 2025, which we expect to increased <unk> costs would have a long term positive impact on cash collections to remember retention.

Speaker Change: As you can see we're showing significant progress, which we expect to continue into 2025.

Speaker Change: And as Fred mentioned, we were tracking ahead of the three year financial targets that we provided in may of last year.

Rachel Smith: To reiterate we currently forecast enrollment and revenue to grow in Q1.

Speaker Change: Got it too, especially call our adjusted EBITDA margin guidance of 9% at the midpoint, which compares to 3% in 2023 into our goal of reaching 8% to 10% adjusted EBIT margin by 2026.

Rachel Smith: Followed by declines in Q2, and Q3, and a flattish fourth quarter compared to the same quarters in 2024.

Rachel Smith: In terms of profitability, given our investment in diversification initiatives and our lower agency volume expectations Q2 through Q4.

Speaker Change: Operator, please open the line for Q&A.

Rachel Smith: Adjusted EBITDA is currently forecasted to decline each quarter and for the full year relative to the same periods a year ago.

Speaker Change: Thank you.

Speaker Change: Ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press the star followed by the one on you touched on filing.

Rachel Smith: In Q1, specifically, we expect adjusted EBITDA loss to be in the high single digits millions of dollars.

Speaker Change: Should you wish to cancel your request. Please press the star followed by the table.

Rachel Smith: It is important to note that while 2024 with somewhat of an outlier in terms of market environment, and resulting performance our underlying trajectory remains strong.

Speaker Change: If you are using a speaker phone please lift the handset before pressing the bank.

Speaker Change: Once again that is star one should you wish to ask a question.

Rachel Smith: Reflecting the monumental operational improvements this organization has made.

Speaker Change: Your first question is from George Sutton from Craig Hallum. Your line is now open.

Rachel Smith: We've summarized some of these historic metric improvements in the earnings deck as.

Rachel Smith: As you can see we're showing significant progress, which we expect to continue into 2025.

George Sutton: Thank you and nice results. So I wanted to talk through 'twenty five expectations.

Rachel Smith: As Fred mentioned, we were tracking ahead of the three year financial targets that we provided in may of last year.

Speaker Change: From the following angle when we look at the overall scenario, we should have a better regulatory environment.

Rachel Smith: I wanted to especially call our adjusted EBITDA margin guidance of 9% at the midpoint, which compares to 3% in 2023 into our goal of reaching 8% to 10% adjusted EBIT margin by 2026.

Speaker Change: Fran had mentioned potential competitive exits, which I'm curious about but we do we would expect the competitive scenario to remain as good or better and.

Speaker Change: Operator, please open the line for Q&A.

Speaker Change: We certainly have a good macro in a number of 65 year olds aging in so I'm curious.

Thank you.

Speaker Change: Ladies and gentlemen, we will now begin the question and answer session.

Speaker Change: Why there is a little bit more of a somber thought process in terms of growing the business. This year.

Speaker Change: Have a question.

Speaker Change: Question is torn follow up item one on your Touchtone phone.

George Sutton: Good morning, George Thanks for the question.

Speaker Change: Should you wish to cancel your request. Please press the star followed by the Taylor.

Wouldn't characterize it as somber.

Speaker Change: Pragmatic.

Speaker Change: Given that there's a change in the administration.

Speaker Change: If you are using a speaker phone please lift the handset before pressing.

Speaker Change: And.

Speaker Change: Once again that is star one should you wish to ask a question.

Speaker Change: President.

Speaker Change: 37 days into the new terms that we've seen.

Speaker Change: Your first question is from George Sutton from Craig Hallum. Your line is now open.

Speaker Change: Our rapid pace of change aimed at taking out costs to the government proving efficiency and so forth so well.

George Sutton: Thank you.

Speaker Change: Well, we know in the first firm.

George Sutton: Nice results. So I wanted to talk through 'twenty five expectations.

Speaker Change: The Trump administration was very supportive of M&A, we know that Secretary Kennedy.

From the following angle when we look at the overall scenario, we should have a better regulatory environment.

Speaker Change: Through the confirmation hearings, we learned that he is a member of a Medicare advantage plan. It is very satisfied remember, we also know that Doctor Oz.

George Sutton: France had mentioned potential competitive exits, which I'm curious about but we do we would expect the competitive scenario to remain as good or better and.

Speaker Change: Has been rather supportive of M&A.

Speaker Change: That said, it's a question of priority and currently.

Speaker Change: So until we see.

George Sutton: We certainly have a good macro in the number of 65 year old age again, so I'm curious.

Speaker Change: Later evidence because.

Speaker Change: Mind that the advance the rate increasingly advanced notice heard prior to the inauguration.

George Sutton: Why there was a little bit more of a somber thought process in terms of growing the business. This year.

Speaker Change: So that happened during the bite administration.

Speaker Change: And it remains to be seen whether the Trump administration will improve that.

George Sutton: Good morning, George Thanks for the question I wouldn't characterize it as somber.

Speaker Change: <unk> maintained or essentially produce it. So we look at that April I'm timeline is a very important check in to see just how.

George Sutton: Pragmatic.

George Sutton: Given that there's a change in the administration.

George Sutton: And.

George Sutton: President.

George Sutton: 37 days into the new terms that we've seen.

Speaker Change: How bullish.

George Sutton: Our rapid pace of change aimed at taking out costs of the government proving efficiency and so forth so well.

Speaker Change: The Trump administration is Medicare advantage.

Speaker Change: I guess I also wanted to just.

Speaker Change: Say that if you look at the switching at keeping your last annual enrollment period it was poor.

George Sutton: While we know in the first firm.

Speaker Change: The Trump administration was very supportive of M&A, we know that Secretary Kennedy.

Speaker Change: <unk> if you look at this time.

Speaker Change: Alright.

Speaker Change: Through the confirmation hearings, we learned that he is a member of a Medicare advantage plan and it is very satisfied remember we also know the Doctor Oz.

Speaker Change: Switching to our fleet.

Speaker Change: A year ago of 16, and even at that one year ago. It was already at historically high but we just set another record.

Speaker Change: Has been rather supportive of MMA.

Speaker Change: That said, it's a question of priority and timing.

Speaker Change: Yeah.

Speaker Change: I'll provide it and certainly it also helps with conversion rates definitely have this high propensity to switch and our platform was in amazing condition operationally.

Speaker Change: So until we see.

Speaker Change: Later evidence because bear in mind that the advance the rate increase with the advanced notice or prior to the inauguration.

Speaker Change: We were able to convert all of that demand.

Speaker Change: So that happened during the buys administration.

Speaker Change: At attractive enrollment margins that you've seen in our Q4 results.

And it remains to be seen whether the Trump administration will improve that.

Speaker Change: Now looking into the next Q4, and it's really hard to say.

Speaker Change: It's probably not going to be if I were isn't going to be they're going to be closer to 23.

Speaker Change: Maintain or potentially reduce it. So we look at that April I'm timeline is a very important check in to see just how.

Speaker Change: They're going to be somewhere in between but we don't know yet and so our guidance range does risk lapped that range of outcomes.

Speaker Change: How bullish.

Speaker Change: The Trump administration is Medicare advantage.

Speaker Change: The last thing I would say on your question George is bad.

Speaker Change: George I also want to just.

Speaker Change: Say that if you look at the switching activity last annual enrollment period.

George Sutton: Our guidance is in line with the three year CAGR that we provided.

Speaker Change: <unk>.

Speaker Change: All time high if you look at different.

George Sutton: Well the roadmap looks different today than it did when we first.

Speaker Change: Alright.

Speaker Change: And the switching.

George Sutton: Prepared our outlook.

Speaker Change: A year ago. It was 16 and even at that one year ago. It was already at historically high but we just had another rapid.

George Sutton: It's tracking consistent.

George Sutton: Great.

Speaker Change: And in your prepared comments, you talked about extending the brand beyond core Medicare offerings I just wanted to make sure I am clear is that's obviously been a strategy for quite some time I'm curious if theyre iterations to that strategy.

Speaker Change: Yeah. It helps provide it certainly it also helps with conversion rates definitely have this high propensity to switch and our platform was in amazing condition operationally that we were able to convert all of that demand.

Speaker Change: And attractive enrollment margins that you've seen in our Q4 is now looking into the next Q4, and it's really hard to say.

George Sutton: Yes.

George Sutton: The.

George Sutton: The most significant part of our brand evolution has been aimed at Medicare advantage.

Speaker Change: It's probably not going to be if I were isn't going to be there's going to be closer to 23 or is there going to be somewhere in between we don't know yet.

George Sutton: Over the past year, Michelle and her team have focused on.

George Sutton: Creating.

George Sutton: Same kind of look what our Eni program for example.

Speaker Change: And so our guidance range does reflect that range of outcomes.

George Sutton: Landing pages start looking very similar too.

Speaker Change: The last thing I would say on your question George is that.

George Sutton: Our MAA landing pages.

George Sutton: We.

Speaker Change: Our guidance is in line with the three year CAGR that we provided.

George Sutton: Emphasize and feature the brand with our med sup.

Speaker Change: So while the roadmap looks different today than it did when we first.

George Sutton: Still work in progress.

George Sutton: Work in progress we.

George Sutton: We made important progress last year.

Speaker Change: Prepared our outlook.

George Sutton: But we're going to take it to the next level, we want we werent consumers, whether they are under 65 or over 65.

Speaker Change: It's tracking consistent.

Speaker Change: Great and.

Brian in your prepared comments, you talked about extending the brand beyond core Medicare offerings.

George Sutton: To know that Ehealth can help.

George Sutton: He's them navigate their health insurance choices.

Speaker Change: I want to make sure I'm clear as well.

George Sutton: So tremendous progress on the Medicare advantage side, I mean, I couldnt be more pleased with 23% increase in awareness.

Speaker Change: That's obviously been a strategy for quite some time I'm curious if there been iterations to that strategy.

George Sutton: Year over year is monumental we want to replicate that for all of our product lines.

Speaker Change: Yes.

Speaker Change: The.

Speaker Change: The most significant part of our brand evolution has been aimed at Medicare advantage.

George Sutton: Got you Okay. Thank you very much I appreciate it.

George Sutton: Thank you George.

George Sutton: Okay.

Speaker Change: Over the past year, Michelle and her team have focused on.

Speaker Change: Thank you. Our next question is from Ben Hendrix from RBC capital markets. Your line is now open.

Speaker Change: Creating.

Speaker Change: I'm kind of look what our Eni program for example.

Speaker Change: Great. Thanks, guys and congratulations on the quarter I wanted to follow up on some of your cadence commentary I appreciate the change in marketing outlook through the year based on changes in D. SNP rules, but just wondering what your how you're thinking about for Q in the context, maybe of some of that D. SNP volume moving into the fourth quarter.

Speaker Change: Landing pages start looking very similar to <unk>.

Speaker Change: Our MAA landing pages.

Speaker Change: We.

Speaker Change: Emphasize and feature the brand with our med sup.

Speaker Change: Still work in progress.

Speaker Change: Work in progress.

Speaker Change: We made important progress last year.

Speaker Change: And kind of how youre thinking about that versus versus your kind of normal cadence that we would see kind of prior to these changes.

Speaker Change: But we're going to take it to the next level.

Speaker Change: We want we werent consumers, whether they are under 65 or over 65.

Speaker Change: To know that Ehealth can help.

Speaker Change: Good morning, Ben Thanks for the question, we did bake that into our assumptions for fourth quarter that there would be.

Speaker Change: Them navigate their health insurance choices.

Speaker Change: So tremendous progress on the Medicare advantage side, I mean, I couldnt be more pleased with 23% increase in awareness.

Speaker Change: Likely more eastern if opportunities in Q4, given that we don't have those opportunities in Q2 and Q3.

Speaker Change: Year over year.

Speaker Change: Monumental we want to replicate that for all of our product lines.

Speaker Change: The other component of this is.

Speaker Change: CMS has changed.

Speaker Change: Gotcha, Okay. Thank you very much I appreciate it.

Speaker Change: Change in or the industry's ability to.

George Sutton: Thank you George.

Speaker Change: Assist beneficiary through an SCP associated with.

Speaker Change: Okay.

Speaker Change: Thank you. Our next question is from Ben <unk> from RBC capital markets. Your line is now open.

Speaker Change: A natural disaster.

Speaker Change: I'm hopeful that they're going to revisit that in light of.

Speaker Change: Things that are going on with respect to head count, including the HHS.

Speaker Change: Great. Thanks, guys and congratulations on the quarter I wanted to follow up on some of your cadence commentary I appreciate the change in marketing outlook through the year based on changes in D. SNP rules, but just wondering what your how you're thinking about for Q in the context, maybe of some of that D. SNP volume moving into the fourth quarter.

Speaker Change: We think the industry is better equipped to help beneficiaries at a time.

Speaker Change: Great.

Speaker Change: And the natural disaster, so combination of those.

Speaker Change: Hum.

Speaker Change: But a little bit of pressure on Q2, and Q3, but we baked in the system.

Speaker Change: And kind of how youre thinking about that versus versus your kind of normal cadence that we would see kind of prior to these changes.

Speaker Change: Typically in Q4.

Speaker Change: Thank you and just a follow up question too on the amplify platform I appreciate the commentary of the drivers of the of the weakness that.

Speaker Change: Good morning, Ben Thanks for the question, we did bake that into our assumptions for fourth quarter that there would be.

Speaker Change: You saw relative to your agent platform, but I just wanted to get your reasons to believe that we're kind of maybe at a trough that it improves from here I mean, many of the carriers that are focused on profitability or are pointing to a multi year path to target margins and I'm. Just wondering kind of what gives you confidence in in kind of that are in it.

Speaker Change: Likely more east Nip opportunities in Q4, given that we don't have those opportunities in Q2 and Q3.

Speaker Change: <unk>.

Speaker Change: The other component of this is <unk>.

CMS is.

Speaker Change: Change in or the industry's ability to.

Speaker Change: Change of tied there and amplify for this year and next.

Speaker Change: Assist beneficiaries through an SVP associated with a natural disaster.

Speaker Change: Sure.

Speaker Change: Well, let me start with reminding everyone that amplify is a little over a year old.

Speaker Change: I'm I'm hopeful that they're going to revisit that in light of.

Speaker Change: Things that are going on with respect to head count, including the HHS.

Speaker Change: So it's a new business for Ehealth and its evolution is moving very very nicely.

Speaker Change: Think of the industry is better equipped to help beneficiaries at the time of.

Speaker Change: And we're putting more emphasis on building the pipeline.

Speaker Change: Great.

Speaker Change: The natural disaster, so combination of those.

Speaker Change: And a lot of that is coming through sort of word of mouth.

Speaker Change: Hum.

Speaker Change: We're delivering on.

Speaker Change: But a little bit of pressure on Q2, and Q3, but we baked in the Sip specifically in Q4.

On our carrier partners expectations with respect to conversion and the quality and compliance.

Speaker Change: The experience that their customers are getting with us so.

Speaker Change: Thank you and just a follow up question too on the amplify platform I appreciate the commentary of the drivers of the of the weakness that.

Speaker Change: We're confident that because we're already out of.

Speaker Change: Very early in its evolution that we can continue to build on that scale, it and with the scaling will improve our margin performance.

Speaker Change: You saw relative to your agent platform, but but I just wanted to get your reasons to believe that we're kind of maybe at a trough that it improves from here I mean, many of the carriers that are focused on profitability or are pointing to a multi year path to target margins and I'm. Just wondering kind of what gives you confidence and in kind of that are in it.

Speaker Change: Okay.

Speaker Change: Thank you.

Speaker Change: Thank you. Our next question is from Jonathan Yang from UBS. Your line is now open.

Speaker Change: Change of tied there and in amplify for this year and next.

Jonathan Yang: Hi, Thanks for taking the question guys just to go back to amplify here.

Speaker Change: Sure.

Jonathan Yang: You know I understand that this is a bit more of a unique situation with this year's AEP, but do you think that there are other changes that need to be done to the business because I think last year, you had a similar situation where it kind of.

Speaker Change: Well, let me start with reminding everyone that amplify.

A little over a year old.

Speaker Change: So it's a new business for Ehealth.

Speaker Change: And its evolution is moving very very nicely.

Jonathan Yang: Fell behind a little bit so I guess, how are you contemplating any other changes or is it really just about scale and if so.

Speaker Change: And we're putting more emphasis on building the pipeline.

Jonathan Yang: How has the progress going in terms of adding additional carriers to amplify.

Speaker Change: And a lot of that is coming through sort of word of mouth.

Speaker Change: We're delivering on our carrier partners expectations with respect to conversion and the quality and compliance.

Jonathan Yang: Good morning, Jonathan.

Speaker Change: Yeah, I'm I'm I'm very bullish with amplified.

Speaker Change: Going back to what why did we do this in the first place it was to create optionality.

Speaker Change: The experience of their customers are getting with us so well.

Speaker Change: It gives us an opportunity to diversify to lessen the risk on the agency side, specifically the marketing investment.

We're confident that because we're already out of it.

Speaker Change: Very early in its evolution that we can continue to build on that scale, it and with the scaling will improve our margin performance.

Speaker Change: We don't deploy capital to generate lead responsibility of our carrier partner.

Speaker Change: Okay.

Speaker Change: We're there to answer the policy and closed sales.

Thank you.

Speaker Change: It provide a great customer experience for for.

Speaker Change: Thank you. Our next question is from Jonathan Yong from UBS. Your line is now open.

Speaker Change: For their customer.

Speaker Change: No.

Speaker Change: The <unk>.

Speaker Change: The thesis of the business Hasnt changed.

Jonathan Yong: Hi, Thanks for taking the question guys just to go back to amplify here you know I understand that this is a bit more of a unique situation with this year's AEP, but can.

Speaker Change: Last year.

Speaker Change: Yeah.

Speaker Change: Given that carriers, we're focusing primarily on margin improvement and containing their growth.

Jonathan Yong: Do you think that there are other changes that need to be done to the business because I think last year, you had a similar situation where it kind of.

Speaker Change: We're not really surprised by these results.

Jonathan Yong: Fell behind a little bit. So I guess are you contemplating any other changes or is it really just about scale and if so.

Speaker Change: We don't think theyre going to change overnight.

Speaker Change: Broda carrier by carrier basis, but we do think by adding to our carrier supply.

Jonathan Yong: How is the progress going in terms of adding additional carriers to amplify.

Speaker Change: We will continue to grow the revenues and.

Jonathan Yong: Good morning, Jonathan.

Speaker Change: Grow the margins, let me see if anyone wants to.

Jonathan Yong: Yeah, I'm I'm I'm very bullish on amplify.

Speaker Change: No I think hi, Jonathan Standalone and the only thing I'd add is as we continue to scale.

Jonathan Yong: Going back to what why did we do this in the first place it was to create optionality.

Speaker Change: They need to build out our infrastructure.

Jonathan Yong: It gives us an opportunity to diversify to lessen the risk on the agency side, specifically the marketing investment.

Speaker Change: <unk> platform continues to be an improvement in margin.

Speaker Change: Okay great.

Jonathan Yong: We don't deploy capital to generate lease extra responsibility of our carrier partner.

Speaker Change: And then I guess.

Speaker Change: Yeah.

Speaker Change: You know.

Jonathan Yong: We're there to answer the call and close sales.

Speaker Change: It all needs sort of context I mean, it's.

Speaker Change: It's it's below 10% company's revenue so it's a very very small component of.

Jonathan Yong: It provide a great customer experience for them for their customer so.

Speaker Change: Ehealth revenues.

Jonathan Yong: The thesis of the business Hasnt changed last year.

Speaker Change: Okay, Great and I guess, just just in terms of OE piece, thus far I mean at least as best as you can tell are or have people largely realized that their benefits have change or people still on the sidelines in terms of just realizing now and actually doing switching this period.

Jonathan Yong:

Jonathan Yong: Given that carriers, we're focusing primarily on margin improvement and containing their growth we're.

Jonathan Yong: Not really surprised by these results.

Jonathan Yong: We don't think theyre going to change overnight.

Speaker Change: As you know during AEP and kind of how is that factored into your outlook of possible churn. Thanks.

Jonathan Yong: Florida carrier by carrier basis, but we do think by adding to our carrier supply.

Jonathan Yong: We will continue to grow the revenues and grow the margins.

Speaker Change: Yes, great question.

Speaker Change: We're anticipating a more active OUP.

Jonathan Yong: If anyone wants to.

Speaker Change: Kevin what occurred in the fourth quarter of 'twenty, four and we're seeing that play out so there is.

John Dolan: No I think Jonathan John Don the only thing I'd add is.

Speaker Change: We continue to scale.

John Dolan: We continue to build out our infrastructure.

Speaker Change: Much greater activity.

Speaker Change: Amplify platform continues to be improvement in margin.

Speaker Change: Through today.

Speaker Change: And we'll see whether that continues through the quarter, but those who had sep's associated with market exits and plan withdrawals.

Speaker Change: Okay, Great and then I guess just with us.

Speaker Change: Yeah.

But you know.

Speaker Change: It all needs.

Speaker Change: The context I mean, it's.

Speaker Change: Please expired.

Speaker Change: It's it's below 10% the company's revenue so it's a very very small component.

Speaker Change: February 15th.

Speaker Change: No.

Speaker Change: We may see that begin to slow down, but nevertheless, we think that there were many people that didn't read there and you'll notice a change.

Speaker Change: Ehealth revenues.

Speaker Change: Okay, Great and I guess, just just in terms of OE piece, thus far I mean at least as best as you can tell are or have people largely realized that their benefits have changed or are people still on the sidelines in terms of just realizing it now and actually doing switching this period.

Speaker Change: And unfortunately found out they didn't have coverage or specifically part D coverage.

Speaker Change: Until they went to the pharmacy for the first time in 2025 and that was the catalyst to for them to take action.

Speaker Change: We haven't been able to measure that precisely, but we believe it's contributing to the stronger performance in the quarter.

Speaker Change: And as you know during AEP and kind of how is that factored into your outlook of possible churn. Thanks.

Speaker Change: Okay, Thanks, and just a second.

Speaker Change: Yes, great question.

Speaker Change: Yes.

Speaker Change: We're anticipating a more active OUP.

Speaker Change: On point.

Keith: Yeah. Frank This is Keith I think it's important to point out that we are putting in place.

Speaker Change: Given what occurred in fourth quarter of 'twenty, four and we're seeing that play out so there is.

Speaker Change: Does that provide a retention initiatives, it's hard to specifically decent divisional so you know first.

Speaker Change: Much greater activity.

Through today.

Speaker Change: First of all the individual brands have done last year, and we had a very wide reach into that.

Speaker Change: And we'll see whether that continues major of the quarter, but those who had SVP.

Speaker Change: With market exits and plan withdrawals.

Speaker Change: We need a recapturing.

Speaker Change: <unk> has expired.

Speaker Change: Slide 15.

Speaker Change: Triple.

Speaker Change: So we.

Speaker Change: Or more year over year and certainly this has not stopped into the first quarter of this year.

Speaker Change: We may see that.

Speaker Change: <unk> slow down, but nevertheless, we think that there were many people that didn't read there and youll notice a change.

Speaker Change: That were called out by one of the reasons why the EBITDA margin is slightly down year over year at the midpoint of the guidance, but it is also driven by the fact that we have.

Speaker Change: And unfortunately found out they didn't have coverage or specifically part D coverage.

Speaker Change: Until they went to the pharmacy for the first time in 2025 and that was the catalyst.

Speaker Change: Larger team or retention adviser.

Speaker Change: For them to take action.

Speaker Change: And it's too early.

Speaker Change: We haven't been able to measure that precisely, but we believe it's contributing to the stronger performance for the quarter.

Speaker Change: To see the full view insurance fashion from this <unk> cycle, but what we're seeing so far has actually been very favorable.

Speaker Change: Okay, Thanks, and just as exciting.

Speaker Change: Uh huh.

Speaker Change: Yes, I think at some point.

Speaker Change: Okay, great. Thanks, just if I could squeeze in one more I think you've mentioned during the quarter, we reallocated resources towards Medicare away from Eni I guess.

Speaker Change: Yeah, Hi, this is Keith I think it's important to point out that we are putting in place.

Speaker Change: Fifth item retention initiatives.

Speaker Change: Kevin what will happen on the exchanges et cetera, and some of the dynamics there.

Speaker Change: This is typically a decent divisional.

Speaker Change: First of all the individual claims have been lost and.

Speaker Change: Does this change your viewpoint on how you will allocate resources towards it in the future or at least in terms of pacing.

Speaker Change: And we had a very mild reach into that.

Speaker Change: We need a recapture rate.

Speaker Change: The short answer Jonathan is we're still very bullish on Eni.

Speaker Change: Triple or.

Speaker Change: One more year over year and certainly this has not stopped into the first quarter of this year and SAP.

Speaker Change: We think it's going to play an important role in the future of our company.

Speaker Change: Tight in some part to the aircraft opportunities that we think will continue to.

Speaker Change: Called out by one of the reasons why the EBITDA margin is slightly down year over year at the midpoint of the guidance, but it is also driven by the fact that we have a large hit him or retention adviser.

Speaker Change: Evolve over the next several years.

Speaker Change: Medical cost health care cost inflation continues to be.

Speaker Change: A major challenge.

Speaker Change: It's too early.

Speaker Change: For our nation, and we think that there will likely be a growing number of employers who.

Speaker Change: To see the full view insurance fashion from this <unk> cycle, but what looks good so far has actually been very favorable.

Speaker Change: Decide you know what.

Speaker Change: We're thrown in the towel we're gonna go the route of the need for ever going to provide a safe and allow our employees to two.

Speaker Change: Okay, great. Thanks, just if I could squeeze in one more I think you mentioned during the quarter, we reallocated resources towards Medicare away from Eni I guess.

Speaker Change: Shop in the individual markets for <unk>.

Speaker Change: That best meets their personal needs.

Speaker Change: No.

Speaker Change: That's going to require some regulatory.

Speaker Change: Given what will happen on the exchanges et cetera, and some of the dynamics. There does this change your viewpoint on how you will allocate more resources towards it in the future or at least in terms of pacing.

Speaker Change: <unk> influence to make that even more viable but we.

Speaker Change: We believe it's very important.

Speaker Change: Have a healthy.

Speaker Change: <unk> capability and we've made changes to our shop comparator all experienced last year.

Speaker Change: Yeah.

Jonathan Yong: The short answer Jonathan is we're still very bullish on Eni.

Speaker Change: We know there's still a gap between the experience for an individual under 65 versus an over 65%.

Jonathan Yong: We think it's going to play an important role in the future of our company.

Speaker Change: Narrow that going up so our technology and the customer journey.

Jonathan Yong: Tied in some part to the aircraft opportunities that we think will continue to.

Speaker Change: <unk> are one and the same whether it's under 65 or over 65. So we will continue to make those investments.

Jonathan Yong: Over the next several years.

Jonathan Yong: Medical cost health care cost inflation continues to be a.

Speaker Change: And continue to develop our.

Speaker Change: Business development capabilities on the employer side, which is a very different.

Jonathan Yong: A major challenge.

Jonathan Yong: For our nation, and we think that there will likely be a growing number of employers who.

Speaker Change: <unk> strategy, then how we approach the individual.

Jonathan Yong: Decide you know what were thrown in the towel. We're gonna go the route of a new program to provide a safe and allow our employees to.

Speaker Change: So anything you want to add.

Speaker Change: I think he said it very well really that or areas that are continuing to build out which we talked about earlier in terms of.

Jonathan Yong: To shop in their individual markets or plan that best meets their personal needs.

Speaker Change: Brand and diversified.

Jonathan Yong: No.

Speaker Change: Marketing channel.

Jonathan Yong: That's going to require some regulatory.

Speaker Change: No go hand in hand, right and they have to be alert for those different audiences.

Jonathan Yong: Influence to make that even more viable, but we believe it's very important to have a healthy.

Speaker Change: And driving improvement in conversion rate.

Jonathan Yong: Capability and we've made changes to our shop comparator all experienced last year.

Speaker Change: It can be experience online and even the telephonic and really capitalizing as brand side and what we have done so well on the Medicare side and ensuring that we're bringing that same start up.

Jonathan Yong: We know there's still a gap between the experience for an individual under 65 versus an over 65 are you going to narrow that going up so our technology and the customer journey.

Speaker Change: Marion's efficiency.

Speaker Change: Into that to drive higher conversion improvement and then building out this new business development capability, which is across sales and marketing side really tailored to either be broker and employer audiences.

Jonathan Yong: Are one and the same whether it's under 65 or over 65. So we will continue to make those investments.

Jonathan Yong: And continue to develop our.

Jonathan Yong: Business development capabilities on the employer side, which is a very different.

Speaker Change: Great. Thanks.

Jonathan Yong: Strategy, then how we approach the individual.

Speaker Change: Thank you once again, please press star one should you wish to ask a question.

Jonathan Yong: The only thing.

George Hill: Your next question is from George Hill from Deutsche Bank. Your line is now open.

Jonathan Yong: I think he said it very well and really that or areas that are continuing to build out which we talked about earlier in terms of.

George Hill: Hey, good morning, guys and thanks for taking the question Fran I just kind of have two big picture. One for you which is number one a trend that we saw at the end of 'twenty four going into 2025 with carriers looking to not pay commissions on specific products I'd be interested if you'd.

Jonathan Yong: Brand and diversified.

Jonathan Yong: The marketing channels.

No go hand in hand, right and they have to be alert for those different audiences and then driving improvements in conversion rate.

George Hill: I'd be willing to talk about how that impacts the ehealth and kind of how does that impact how your clients impact with Ehealth and then if you wouldn't mind kind of open Viking for a second I'd love to hear how you talk about how you think the rate environment you had favorable comments about the advanced notice for 26, just generally how you see the rate environment for M&A.

Jonathan Yong: It can be online and even that's a telephonic and really capitalizing as brand side and what we have done so well on the Medicare side and ensuring that we're bringing that same start up.

Jonathan Yong: Variants efficient ease into that to drive higher conversion improvement and then building out this new business development capability, which is across sales and marketing side to really tailor to either be broker and employer audiences.

George Hill: <unk> the business.

George Hill: It has to do with a better rate makes the products more attractive, which which are kind of flows through the background, but kind of love to hear you talk about the puts and takes for that a little bit. Thank you.

Speaker Change: Thanks, George good to hear you.

Jonathan Yong: Great. Thanks.

George Hill: Let me start with the second question first.

Jonathan Yong: Thank you once again, please press star one should you wish to ask a question.

Speaker Change: The rate environment.

Speaker Change: And effect.

Speaker Change: The shopping experience when it goes when it's bad and it is very good.

Speaker Change: Your next question is from George Hill from Deutsche Bank. Your line is now open.

Speaker Change: So as you know.

George Hill: Hey, good morning, guys and thanks for taking the question, Brian I, just kind of have two big picture ones for you, which is number one a trend that we saw at the end of 'twenty four going into 2025 with carriers looking to not pay commissions on specific products.

Speaker Change: That may be counterintuitive, but that's what we've observed so last year was a tough rate environment.

Speaker Change: Wired carriers to do some pretty drastic things, including market exits and plan withdrawals, that's very disruptive to beneficiaries that increase the shopping.

Speaker Change: I'd be interested if you'd.

Speaker Change: People want to talk about how that impacts ehealth and kind of how does that impact how your clients impact with Ehealth and then if you wouldn't mind kind of open Viking for a second I'd love to hear how you talk about how you think the rate environment you had favorable comments about the advanced notice for 26, just generally how you see the rate environment for MMA and PA.

Speaker Change: Similarly, when the rate environment is as good as we saw six years ago five years ago.

Speaker Change: The value proposition continue to improve.

Speaker Change: So there were more shoppers and more people moving from original Medicare into Medicare advantage.

Speaker Change: The in between is where.

Speaker Change: Perhaps it's more of the.

Speaker Change: <unk> the business.

Speaker Change: Uneventful AEP, but the eventful aep's come from both ends of that can extremism continuum.

Speaker Change: It has to do with a better rate makes the products more attractive, which which are kind of closer to the background, but kind of love to hear you talk about the puts and takes for that a little bit. Thank you.

Speaker Change: With respect to.

George Sutton: Thanks, George good to hear you.

Speaker Change: Carriers.

Speaker Change: Behavior last year to either suppress plans are suppressed commission as I said in my remarks, it was more pronounced but our expanded carrier portfolio, we have an agnostic choice.

George Sutton: Let me start with the second question first.

George Sutton: The rate environment.

George Sutton: And effect.

George Sutton: The shopping experience when it goes when it's bad and it was very good.

Speaker Change: Choice model.

George Sutton: So as you know.

Speaker Change: Well over 40 plus.

George Sutton: That may be counterintuitive, but that's what we've observed so last year was a tough rate environment. It required carriers to do some pretty drastic things, including market exits and plan withdrawals, that's very disruptive beneficiaries.

Speaker Change: Medicare advantage relationships with our agency side.

Speaker Change: And that creates much greater choice than than perhaps many of our competitors can offer.

George Sutton: That increase the shopping center.

Speaker Change: I think that we navigated that incredibly well.

George Sutton: Only when the rate environment is as good as we saw six years ago five years ago.

Speaker Change: Under the circumstances.

In terms of how it's utilized going forward well as I've shared before we see it in many AEP.

George Sutton: The value proposition continued to improve so there were more shoppers and more people moving from original Medicare into Medicare advantage.

Speaker Change: But it's just less pronounced.

George Sutton: In between is where.

Speaker Change: I don't think carriers like to play that card because it can create friction between distribution.

George Sutton: Perhaps it's more of the.

George Sutton: Uneventful AEP, but eventually piece come from both ends of that extremism continuum.

Speaker Change: And.

Speaker Change: Memories are long.

George Sutton: With respect to <unk>.

Speaker Change: And in fact, I would I would say that.

George Sutton: Carriers.

Speaker Change: Field distribution.

George Sutton: Behavior last year or two either suppress plans are suppressed commission as I said in my remarks, it was more pronounced but our expanded carrier portfolio, we have an agnostic.

Speaker Change: Distribution organizations agents on the street, probably suffered greater consequences to this then.

Speaker Change: The teller broker industry.

Speaker Change: We do generally work with far more than an agent on the street, who may only work with two or three.

George Sutton: Choice model, well over 40, plus Medicare advantage relationships on our agency side.

Speaker Change: Of the organization. So we're two or all three took actions to suppress commission was very detrimental to them, we navigated it quite well.

George Sutton: And that creates much greater choice than perhaps many of our competitors can offer.

Speaker Change: Given the circumstances.

Speaker Change: Just want to emphasize having spent a big part of my career on the carrier side.

George Sutton: I think that we navigated that incredibly well.

Speaker Change: I understand the mindset and.

George Sutton: Under the circumstances in terms of how it's utilized going forward well as I've shared before we see it in many.

Speaker Change: They don't do this lightly and they don't want to do it on a recurring basis or it does threaten their distribution and the growth opportunities for the future. So I think theres, some checks and balances in place.

George Sutton: But it's just less pronounced.

George Sutton: I don't think carriers like to play that card because it can create friction between distribution.

Helpful. Thank you.

George Sutton: And.

George Sutton: Memories are long.

Speaker Change: Thank you.

Speaker Change: There are no further questions at this time. Please proceed.

George Sutton: And in fact, I would I would say that.

George Sutton: Bill.

George Sutton: Distribution organizations agents on the street, probably suffered greater consequences to this then.

Speaker Change: Well, let me again, thank everyone for joining us. This morning, we appreciate your interest in following and support of Ehealth. We look forward to our one on one conversations and certainly look forward to reporting out Q1 performance sometime later in the early second quarter.

George Sutton: The teller broker industry.

George Sutton: We do generally work with far more than an agent on the street, who may only work with two or three.

George Sutton: Of the organization. So we're two or all three took actions to suppress commission that it was very detrimental to them, we navigated it quite well.

Speaker Change: So thank you all very much.

Speaker Change: Thank you.

George Sutton: Given the circumstances.

Speaker Change: Ladies and gentlemen, the conference has now ended thank you all for joining you may all disconnect your lines.

Speaker Change: Just want to emphasize having spent a big part of my career on the carrier side.

George Sutton: I understand the mindset and.

George Sutton: They don't do this lightly and they don't want to do it on a recurring basis or it does threaten their distribution and the growth opportunities for the future. So I think theres, some checks and balances in place.

George Sutton: Helpful. Thank you.

Thank you.

There are no further questions at this time. Please proceed.

Speaker Change: Well, let me again, thank everyone for joining us. This morning, we appreciate your interest in following and support of Ehealth. We look forward to our one on one conversations and certainly look forward to reporting out Q1 performance sometime later in the early second quarter.

George Sutton: So thank you all very much.

George Sutton: Thank you.

George Sutton: Ladies and gentlemen, the conference has now ended thank you all for joining you may all disconnect your lines.

George Sutton: Goodbye.