On this page of StockholderLetter.com we present the latest annual shareholder letter from eHealth, Inc. — ticker symbol EHTH. Reading current and past EHTH letters to shareholders can bring important insights into the investment thesis.
Dear Fellow Stockholders,
In 2023, eHealth continued to deliver a world-class experience to our customers while
making significant strides toward our goal of sustainable profitable growth and positive
operating cash flow generation. Last year marked the completion of our business
transformation program, which launched in April of 2022 and included a company-wide
cost-reduction initiative and reengineering of our sales and marketing organizations. With
the business transformation program underway, we temporarily reduced our marketing
spend and resulting enrollment growth to focus on improving our operational foundation.
I am pleased to share that in the fourth quarter of 2023, we successfully resumed our
Medicare enrollment growth while also delivering a significant improvement in our
profitability and cash flow metrics on a year-over-year basis. In fact, our Medicare
Advantage member growth of 22% year-over-year exceeded the overall market growth in
the fourth quarter of 2023 and demonstrated that the changes we implemented to our
sales and marketing strategies are producing the expected results. Make no mistake, as we
enter the growth phase, we will continue to maintain focus on cost structure and prudent
capital allocation.
Medicare Advantage, our core business driver, represents an exciting growth opportunity.
This is a product that is highly valued by seniors, with over thirty million Americans enrolled
and steady market share gains relative to the traditional Medicare program. In the most
recent Medicare Annual Enrollment Period (AEP), carriers continued to offer robust plan
selection, strong provider networks and attractive benefits. In fact, the average beneficiary
had access to 43 Medicare Advantage plans, the largest number of options ever.
In 2023, we built a leadership position in the Medicare distribution space by leveraging our
differentiated value proposition to beneficiaries. The agnostic nature of our platform,
combined with broad plan selection, allows us to provide an unbiased plan match service
to our customers. Likewise, our omni-channel marketplace that features free access to
data-powered tools and our staff of full-time licensed benefit advisors, allows beneficiaries
to shop and enroll on their terms. The local market focus of our marketing and sales
strategy further enhances our ability to give beneficiaries personalized plan
recommendations through deep understanding of the unique aspects of each market, such
as provider and pharmacy networks.
eHealth, Inc.     Salt Lake City, UT; Austin, TX; Indianapolis, IN     www.ehealth.com
A Refreshed Brand
In 2023, we launched our refreshed, distinct and memorable consumer brand,
spearheaded by our brand ambassador, Eve. This strategic initiative has already
demonstrated its effectiveness in driving user acquisition. We believe that a strong brand
presence will be a critical differentiator in the long run, as most competitors in the health
insurance distribution sector lack brand recognition. By building trust and fostering
consumer connection through Eve, we are focused on establishing a sustainable
competitive advantage and positioning eHealth for continued market share growth.
We believe our branding efforts combined with audience segmentation and targeting
strategies will create a flywheel effect as we scale our Medicare business, and eHealth
increasingly gains recognition nationwide as a trusted Medicare matchmaker.
An Improved Digital Experience
In 2023, we prioritized enhancing the customer experience across our digital and advisor
channels. This strategic focus yielded significant results:
x
Website Optimization: A fresh design and the launch of our upgraded plan
recommendation engine (version 2.0) contributed to a 20% increase in online
conversions during the crucial AEP. This translates to a powerful operating lever,
driving revenue growth.
x
Advisor Enablement: Material improvements to call center technology tools
empowered our benefit advisors, aimed at achieving higher customer satisfaction
and retention, factors closely linked to long-term profitability.
Navigating Government Regulations
In 2023, we navigated a complex regulatory landscape in the Medicare market, impacting
some demand generation activities and carrier dynamics. We anticipate continued
regulatory complexity in 2024 due to new and pending CMS regulations. eHealth has a
proven track record of navigating this complex regulatory landscape, and we are confident
in our ability to continue serving Medicare beneficiaries and other members while fully
adhering to regulations.
2
eHealth, Inc.     Salt Lake City, UT; Austin, TX; Indianapolis, IN     www.ehealth.com
To mitigate the challenges associated with this evolving environment, we are taking
proactive steps and holding conversations with key stakeholders as we navigate this
dynamic and complex regulatory environment. We believe these measures will ensure we
remain compliant while optimizing our operations for long-term success.
Revenue Diversification
To achieve sustainable, profitable growth, improve our cash flow generation, and mitigate
regulatory risks, eHealth is executing a strategic diversification plan. This initiative aims to:
x
x
x
Expand Revenue Streams: We launched Amplify, a carrier-dedicated business
generating inbound Medicare calls to our licensed advisors, effectively extending
carriers' sales reach. This model minimizes marketing spend and boasts attractive
margins, contributing to increased revenue and cash flow generation.
Mitigate Regulatory Risks: Diversification beyond Medicare Advantage lessens
dependence on a single market segment, potentially mitigating regulatory risks.
Unlock New Market Opportunities: We're leveraging our technology, carrier
partnerships, and distribution expertise to explore growth opportunities in areas like
Medicare Supplement, individual and family plans, and employer plans. While these
areas require investments in platform, processes, and teams (following our historical
focus on Medicare Advantage), we believe they hold significant long-term potential.
We began these strategic investments in 2023 and plan to continue throughout 2024.
Strong Focus on Positive Results, Future Plans
We are committed to improving our capital structure and financial flexibility. Despite a
challenging market environment in 2023, we made significant progress by improving our
operating cash flow to ($6.7) million for the year, compared to significantly higher levels of
cash outflow in previous years. We are confident in our ability to achieve positive operating
cash flow for the trailing 12 months ending March 31, 2024, building on this momentum.
This progress, combined with our improving profitability metrics and a strong commission
receivable balance exceeding $900 million as of December 31, 2023, positions eHealth for
further financial strength. These positive developments broaden our options for
strategically reducing our cost of capital in the future. In the meantime, we have ample
liquidity to execute our strategic plan in 2024 and beyond.
eHealth, Inc.     Salt Lake City, UT; Austin, TX; Indianapolis, IN     www.ehealth.com
3
2023 Financial Results Highlights
   Successfully delivered on our 2023 annual guidance for each metric
   2023 annual total revenue of $452.9 million compared to 2022 total revenue of
$405.4 million (or 12% growth)
   2023 annual adjusted EBITDA 1 of $14.1 million compared to ($41.7) million in 2022
   Operating cash flow of ($6.7) million in 2023, improved from ($162.6) million in 2021
and ($26.9) million in 2022
   Fourth quarter 2023 Medicare Advantage approved members grew 22% year-overyear
   Fourth quarter 2023 Medicare Advantage LTV increased 11% to $1,151
   Ended the year with total contract asset receivable value of $918.2 million
   Ended the year with $121.7 million in cash, equivalents, and marketable securities
2023 Operational Results Highlights
Created a new brand strategy
Launched Amplify, our new carrier dedicated fulfillment model
Executed our largest advisor ramp and achieved record new advisor performance
Scaled retention strategy for broader impact while personalizing member journey
with eHealth
   Completed several important enhancements to user experience in our online
marketplace
   Achieved greater employee engagement through career pathing, training
opportunities, transparent communication through Town Halls and All Hands
meetings and ongoing engagement surveys
   Held first Investor and Analyst Day since 2019


2024 Priorities
In 2024 we plan to maintain our focus on our mission, operational excellence, and
shareholder value creation. eHealth addresses a large and growing market opportunity
across its key offering and brings a highly differentiated service to our carrier partners and
1
Please see Exhibit 99.1 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on February
27, 2024 for management   s definition of adjusted EBITDA, a non-GAAP financial measure, and a reconciliation of adjusted
EBITDA to GAAP net income (loss), its most directly comparable GAAP financial measure.
4
eHealth, Inc.     Salt Lake City, UT; Austin, TX; Indianapolis, IN     www.ehealth.com
beneficiaries. Our operational 2024 priorities aim to build on this achievement and continue
the robust performance we delivered in 2023:
1. Grow revenue year-over-year while producing positive adjusted EBITDA.
2. Advance our local market focused, omni-channel enrollment engine to drive
higher conversions and greater margins.
3. Launch the next phase of our member loyalty & retention strategy.
4. Drive our business-to-business strategy and fortify the organizational
foundation that supports our strategic partners and direct-to-employer
opportunities.
5. Enhance our comprehensive product portfolio beyond Medicare Advantage
agency business to drive year-round growth.
When I joined the company in November of 2021, we established a set of important goals
and commitments. Through the successful implementation of our business transformation
and cost reduction programs, we are fulfilling these commitments as evidenced by our 2023
results. I am also proud to share that in 2023 we helped more than 400,000 Americans
enroll in health insurance plans, delivering on Our Mission which is to expertly guide
consumers through their health insurance options, when, where, and how they prefer.
As eHealth continues to build momentum in 2024, I am confident in this organization   s
ability to navigate our dynamic industry and continue solidifying eHealth   s position as a gold
standard for health insurance distribution. With our 2024 objectives and financial guidance,
we are putting forth a new set of commitments to our shareholders, and I am confident in
our ability to again deliver on our promises. Thank you for your continued support.
With gratitude,
Fran Soistman
Chief Executive Officer, eHealth Inc.
eHealth, Inc.     Salt Lake City, UT; Austin, TX; Indianapolis, IN     www.ehealth.com
5
 • shareholder letter icon 4/26/2024 Letter Continued (Full PDF)
 • stockholder letter icon 5/1/2023 EHTH Stockholder Letter
 • stockholder letter icon More "Insurance Brokers" Category Stockholder Letters
 • Benford's Law Stocks icon EHTH Benford's Law Stock Score = 87


EHTH Shareholder/Stockholder Letter Transcript:

Dear Fellow Stockholders,
In 2023, eHealth continued to deliver a world-class experience to our customers while
making significant strides toward our goal of sustainable profitable growth and positive
operating cash flow generation. Last year marked the completion of our business
transformation program, which launched in April of 2022 and included a company-wide
cost-reduction initiative and reengineering of our sales and marketing organizations. With
the business transformation program underway, we temporarily reduced our marketing
spend and resulting enrollment growth to focus on improving our operational foundation.
I am pleased to share that in the fourth quarter of 2023, we successfully resumed our
Medicare enrollment growth while also delivering a significant improvement in our
profitability and cash flow metrics on a year-over-year basis. In fact, our Medicare
Advantage member growth of 22% year-over-year exceeded the overall market growth in
the fourth quarter of 2023 and demonstrated that the changes we implemented to our
sales and marketing strategies are producing the expected results. Make no mistake, as we
enter the growth phase, we will continue to maintain focus on cost structure and prudent
capital allocation.
Medicare Advantage, our core business driver, represents an exciting growth opportunity.
This is a product that is highly valued by seniors, with over thirty million Americans enrolled
and steady market share gains relative to the traditional Medicare program. In the most
recent Medicare Annual Enrollment Period (AEP), carriers continued to offer robust plan
selection, strong provider networks and attractive benefits. In fact, the average beneficiary
had access to 43 Medicare Advantage plans, the largest number of options ever.
In 2023, we built a leadership position in the Medicare distribution space by leveraging our
differentiated value proposition to beneficiaries. The agnostic nature of our platform,
combined with broad plan selection, allows us to provide an unbiased plan match service
to our customers. Likewise, our omni-channel marketplace that features free access to
data-powered tools and our staff of full-time licensed benefit advisors, allows beneficiaries
to shop and enroll on their terms. The local market focus of our marketing and sales
strategy further enhances our ability to give beneficiaries personalized plan
recommendations through deep understanding of the unique aspects of each market, such
as provider and pharmacy networks.
eHealth, Inc.     Salt Lake City, UT; Austin, TX; Indianapolis, IN     www.ehealth.com

A Refreshed Brand
In 2023, we launched our refreshed, distinct and memorable consumer brand,
spearheaded by our brand ambassador, Eve. This strategic initiative has already
demonstrated its effectiveness in driving user acquisition. We believe that a strong brand
presence will be a critical differentiator in the long run, as most competitors in the health
insurance distribution sector lack brand recognition. By building trust and fostering
consumer connection through Eve, we are focused on establishing a sustainable
competitive advantage and positioning eHealth for continued market share growth.
We believe our branding efforts combined with audience segmentation and targeting
strategies will create a flywheel effect as we scale our Medicare business, and eHealth
increasingly gains recognition nationwide as a trusted Medicare matchmaker.
An Improved Digital Experience
In 2023, we prioritized enhancing the customer experience across our digital and advisor
channels. This strategic focus yielded significant results:
x
Website Optimization: A fresh design and the launch of our upgraded plan
recommendation engine (version 2.0) contributed to a 20% increase in online
conversions during the crucial AEP. This translates to a powerful operating lever,
driving revenue growth.
x
Advisor Enablement: Material improvements to call center technology tools
empowered our benefit advisors, aimed at achieving higher customer satisfaction
and retention, factors closely linked to long-term profitability.
Navigating Government Regulations
In 2023, we navigated a complex regulatory landscape in the Medicare market, impacting
some demand generation activities and carrier dynamics. We anticipate continued
regulatory complexity in 2024 due to new and pending CMS regulations. eHealth has a
proven track record of navigating this complex regulatory landscape, and we are confident
in our ability to continue serving Medicare beneficiaries and other members while fully
adhering to regulations.
2
eHealth, Inc.     Salt Lake City, UT; Austin, TX; Indianapolis, IN     www.ehealth.com

To mitigate the challenges associated with this evolving environment, we are taking
proactive steps and holding conversations with key stakeholders as we navigate this
dynamic and complex regulatory environment. We believe these measures will ensure we
remain compliant while optimizing our operations for long-term success.
Revenue Diversification
To achieve sustainable, profitable growth, improve our cash flow generation, and mitigate
regulatory risks, eHealth is executing a strategic diversification plan. This initiative aims to:
x
x
x
Expand Revenue Streams: We launched Amplify, a carrier-dedicated business
generating inbound Medicare calls to our licensed advisors, effectively extending
carriers' sales reach. This model minimizes marketing spend and boasts attractive
margins, contributing to increased revenue and cash flow generation.
Mitigate Regulatory Risks: Diversification beyond Medicare Advantage lessens
dependence on a single market segment, potentially mitigating regulatory risks.
Unlock New Market Opportunities: We're leveraging our technology, carrier
partnerships, and distribution expertise to explore growth opportunities in areas like
Medicare Supplement, individual and family plans, and employer plans. While these
areas require investments in platform, processes, and teams (following our historical
focus on Medicare Advantage), we believe they hold significant long-term potential.
We began these strategic investments in 2023 and plan to continue throughout 2024.
Strong Focus on Positive Results, Future Plans
We are committed to improving our capital structure and financial flexibility. Despite a
challenging market environment in 2023, we made significant progress by improving our
operating cash flow to ($6.7) million for the year, compared to significantly higher levels of
cash outflow in previous years. We are confident in our ability to achieve positive operating
cash flow for the trailing 12 months ending March 31, 2024, building on this momentum.
This progress, combined with our improving profitability metrics and a strong commission
receivable balance exceeding $900 million as of December 31, 2023, positions eHealth for
further financial strength. These positive developments broaden our options for
strategically reducing our cost of capital in the future. In the meantime, we have ample
liquidity to execute our strategic plan in 2024 and beyond.
eHealth, Inc.     Salt Lake City, UT; Austin, TX; Indianapolis, IN     www.ehealth.com
3

2023 Financial Results Highlights
   Successfully delivered on our 2023 annual guidance for each metric
   2023 annual total revenue of $452.9 million compared to 2022 total revenue of
$405.4 million (or 12% growth)
   2023 annual adjusted EBITDA 1 of $14.1 million compared to ($41.7) million in 2022
   Operating cash flow of ($6.7) million in 2023, improved from ($162.6) million in 2021
and ($26.9) million in 2022
   Fourth quarter 2023 Medicare Advantage approved members grew 22% year-overyear
   Fourth quarter 2023 Medicare Advantage LTV increased 11% to $1,151
   Ended the year with total contract asset receivable value of $918.2 million
   Ended the year with $121.7 million in cash, equivalents, and marketable securities
2023 Operational Results Highlights
Created a new brand strategy
Launched Amplify, our new carrier dedicated fulfillment model
Executed our largest advisor ramp and achieved record new advisor performance
Scaled retention strategy for broader impact while personalizing member journey
with eHealth
   Completed several important enhancements to user experience in our online
marketplace
   Achieved greater employee engagement through career pathing, training
opportunities, transparent communication through Town Halls and All Hands
meetings and ongoing engagement surveys
   Held first Investor and Analyst Day since 2019


2024 Priorities
In 2024 we plan to maintain our focus on our mission, operational excellence, and
shareholder value creation. eHealth addresses a large and growing market opportunity
across its key offering and brings a highly differentiated service to our carrier partners and
1
Please see Exhibit 99.1 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on February
27, 2024 for management   s definition of adjusted EBITDA, a non-GAAP financial measure, and a reconciliation of adjusted
EBITDA to GAAP net income (loss), its most directly comparable GAAP financial measure.
4
eHealth, Inc.     Salt Lake City, UT; Austin, TX; Indianapolis, IN     www.ehealth.com

beneficiaries. Our operational 2024 priorities aim to build on this achievement and continue
the robust performance we delivered in 2023:
1. Grow revenue year-over-year while producing positive adjusted EBITDA.
2. Advance our local market focused, omni-channel enrollment engine to drive
higher conversions and greater margins.
3. Launch the next phase of our member loyalty & retention strategy.
4. Drive our business-to-business strategy and fortify the organizational
foundation that supports our strategic partners and direct-to-employer
opportunities.
5. Enhance our comprehensive product portfolio beyond Medicare Advantage
agency business to drive year-round growth.
When I joined the company in November of 2021, we established a set of important goals
and commitments. Through the successful implementation of our business transformation
and cost reduction programs, we are fulfilling these commitments as evidenced by our 2023
results. I am also proud to share that in 2023 we helped more than 400,000 Americans
enroll in health insurance plans, delivering on Our Mission which is to expertly guide
consumers through their health insurance options, when, where, and how they prefer.
As eHealth continues to build momentum in 2024, I am confident in this organization   s
ability to navigate our dynamic industry and continue solidifying eHealth   s position as a gold
standard for health insurance distribution. With our 2024 objectives and financial guidance,
we are putting forth a new set of commitments to our shareholders, and I am confident in
our ability to again deliver on our promises. Thank you for your continued support.
With gratitude,
Fran Soistman
Chief Executive Officer, eHealth Inc.
eHealth, Inc.     Salt Lake City, UT; Austin, TX; Indianapolis, IN     www.ehealth.com
5



shareholder letter icon 4/26/2024 Letter Continued (Full PDF)
 

EHTH Stockholder/Shareholder Letter (eHealth, Inc.) | www.StockholderLetter.com
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