eHealth, Inc. Announces First Quarter 2010 Results
MOUNTAIN VIEW, CA, May 03, 2010 (MARKETWIRE via COMTEX) --eHealth, Inc. (NASDAQ: EHTH), the leading online source of health insurance for individuals, families and small businesses, today announced its financial results for the first quarter ended March 31, 2010.
Gary Lauer, chief executive officer of eHealth stated, "The first quarter was a challenging yet strong financial quarter for eHealth. While our applications growth declined on an annual basis, we continued to grow our business organically and produced sound financial results. We also just completed a very important acquisition of PlanPrescriber, Inc., a profitable, fast growing technology-centric company. This acquisition is strategic and expected to be financially accretive to our core business."
First Quarter Results
Revenue -- Revenue totaled $36.0 million for the first quarter of 2010, a 13% increase compared to revenue of $31.9 million for the first quarter of 2009.
Submitted Applications -- Submitted applications for individual and family products decreased 4% in the first quarter of 2010 to 135,600 applications, compared to 141,200 applications in the first quarter of 2009.
Membership -- Estimated membership at March 31, 2010 totaled 755,200 members, an 11% increase over estimated membership of 680,100 at March 31, 2009.
Operating Income -- Operating income increased 6% to $5.9 million for the first quarter of 2010, compared to operating income of $5.6 million for the first quarter of 2009. Operating margins were 16% and 18% in the first quarters of 2010 and 2009, respectively. Non-GAAP operating income increased 16% to $7.6 million for the first quarter of 2010, compared to non-GAAP operating income of $6.5 million for the first quarter of 2009. Non-GAAP operating margins were 21% and 20% in the first quarters of 2010 and 2009, respectively. Non-GAAP operating income and margins in the first quarters of 2010 and 2009 exclude $1.7 million and $0.9 million of stock-based compensation expense, respectively.
Pre-tax Income -- Pre-tax income for the first quarter of 2010 was $5.9 million, a 1% decrease compared to pre-tax income of $6.0 million for the first quarter of 2009. Pre-tax income was unfavorably impacted in the first quarter of 2010 by a decrease in interest income of $0.4 million compared to the first quarter of 2009.
Net Income -- Net income for the first quarter of 2010 was $3.2 million, or $0.13 per diluted share. Net income for the first quarter of 2009 was $3.1 million, or $0.12 per diluted share. Non-GAAP net income for the first quarter of 2010 was $4.4 million, or $0.18 per diluted share, compared to non-GAAP net income for the first quarter of 2009 of $4.0 million, or $0.15 per diluted share. Non-GAAP net income and non-GAAP net income per diluted share in the first quarter of 2010 exclude $1.7 million of stock-based compensation expense, less $0.5 million for related income tax benefit. Non-GAAP net income and non-GAAP net income per diluted share in the first quarter of 2009 exclude $0.9 million of stock-based compensation expense, less $0.1 million for related income tax benefit.
Cash Flow and Cash Balance -- Cash flow from operations for the first quarter of 2010 was $3.1 million, compared to $4.7 million for the first quarter of 2009, representing a decrease of 34%. During the first quarters of 2010 and 2009, we utilized $2.6 million and $1.2 million, respectively, of previously unrecognized excess tax benefits related to share-based payments to reduce our federal and state income taxes payable. These excess tax benefits are shown in the cash flow statement as an increase in cash flow from financing activities.
Cash, cash equivalents and short-term marketable securities as of March 31, 2010 totaled $158.6 million, compared to $153.5 million as of December 31, 2009.
Acquisition of PlanPrescriber, Inc.
As announced in a separate press release earlier today, eHealth, Inc. acquired PlanPrescriber, Inc. (formerly Experion Systems, Inc.). In connection with the acquisition, eHealth paid $28.7 million in cash before giving effect to purchase price deductions, including transaction expenses, certain bonus plan payments and other employee-related deductions. PlanPrescriber, Inc. is now a wholly-owned subsidiary of eHealth.
2010 Guidance
Based on its acquisition of PlanPrescriber, Inc., eHealth is updating its total revenue guidance for the full year ending December 31, 2010 based on information currently available:
-- Total revenue is expected to be in the range of $152 million to $157
million, compared to previous guidance of $148 million to $155 million
eHealth is reaffirming its guidance provided on its last earnings call as follows:
-- Stock-based compensation expense is expected to be in the range of $6
million to $7.5 million
-- GAAP income tax rate is expected to be in the range of 43% to 45%
-- GAAP net income per diluted share is expected to be in the range of
$0.55 to $0.65 per share
Webcast and Conference Call Information A Webcast and conference call will be held today, Monday, May 3, 2010 at 5:00 p.m. EDT / 2:00 p.m. PDT. The Webcast will be available live on the Investor Relations section on eHealth's website at http://ir.ehealthinsurance.com. Individuals interested in listening to the conference call may do so by dialing 866-804-6924 for domestic callers and 857-350-1670 for international callers. The participant passcode is #40206702. A telephone replay will be available two hours following the conclusion of the call for a period of 30 days and can be accessed by dialing 888-286-8010 for domestic callers and 617-801-6888 for international callers. The call ID for the replay is #97247792. The live and archived webcast of the call will also be available on eHealth's website at http://www.ehealthinsurance.com under the Investor Relations section.
About eHealth eHealth, Inc. (NASDAQ: EHTH), the parent company of eHealthInsurance and PlanPrescriber, is the nation's leading online source of health insurance for individuals, families, seniors and small businesses. Through the company's websites (http://www.eHealthInsurance.com, http://www.PlanPrescriber.com and http://eHealthMedicare.com), consumers can get quotes from leading health insurance carriers, compare plans side by side, and apply for and purchase individual and family, Medicare, small group, short-term and ancillary health insurance products. eHealthInsurance is authorized by more than 180 of the nation's leading health insurance companies and offers thousands of health plans. eHealth is licensed to sell health insurance in all 50 states and the District of Columbia, making it the ideal model of a successful, high-functioning health insurance exchange. Through its eCommerce On-Demand solution (eOD), (www.ehealth.com/eOD), eHealth is also a leading provider of on-demand e-commerce software services for health plan providers. eHealth, eHealthInsurance and PlanPrescriber are registered trademarks of the company.
Forward-Looking Statements This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. These include statements regarding the accretiveness of the PlanPrescriber acquisition and eHealth's guidance for total revenue, stock-based compensation expense, GAAP income tax rate, and GAAP net income per diluted share for the year ending December 31, 2010. These forward-looking statements are inherently subject to various risks and uncertainties that could cause actual results to differ materially from the statements made, including risks associated with the impact of healthcare reform; eHealth's rate of growth; costs of acquiring new members; changes in the economy; weak economic conditions and legislative reaction to economic conditions; consumer awareness of the availability and accessibility of affordable health insurance; changes in member conversion rates and factors affecting conversion; eHealth's ability to continue to increase its membership base and retain its members; eHealth's ability to maintain or expand its relationships with health insurance carriers; negative publicity experienced by eHealth's carrier partners; changes in products offered on eHealth's ecommerce platform; changes in commission rates or carrier underwriting practices; maintaining and enhancing eHealth's brand identity and the effectiveness of eHealth's marketing and public relations efforts; system failures, capacity constraints, data loss or online commerce security risks; dependence upon Internet search engines; reliance on marketing partners and factors affecting submitted applications from the marketing partner channel; eHealth's success in marketing and selling Medicare-related health insurance products; timing of receipt and accuracy of commission reports and related impact on estimating membership; payment practices of health insurance carriers; competition; eHealth's operations in China and any expansion into foreign countries; success in the sale of sponsorship advertising and the licensing of the use of eHealth's ecommerce platform; protection of intellectual property and defense of intellectual property rights claims; legal liability, regulatory penalties and negative publicity; ability to attract and retain qualified personnel; management of future growth; seasonality; impact of future acquisitions; the PlanPrescriber acquisition disrupting current plans and operations; anticipated synergies and opportunities with respect to PlanPrescriber are not realized; difficulty or unanticipated expenses in connection with integrating PlanPrescriber; underperformance by PlanPrescriber; implementation of internal enterprise systems and maintenance of proper and effective internal controls; impact of provisions for income taxes; changes in laws and regulations; compliance with insurance and other laws and regulations; exposure to online commerce security risks; and the performance, reliability and availability of eHealth's ecommerce platform and underlying network infrastructure. Other factors that could cause operating, financial and other results to differ are described in eHealth's most recent Quarterly Report on Form 10-Q or Annual Report on Form 10-K filed with the Securities and Exchange Commission and available on the investor relations page of eHealth's website at http://www.ehealthinsurance.com and on the Securities and Exchange Commission's website at www.sec.gov. eHealth does not undertake any obligation to update any forward-looking statement to conform the statement to actual results or changes in expectations.
Non-GAAP Financial Information This press release includes financial measures that are not in accordance with generally accepted accounting principles in the United States ("GAAP"). To supplement eHealth's condensed consolidated financial statements presented in accordance with GAAP, eHealth presents investors with certain non-GAAP financial measures, including non-GAAP operating income, non-GAAP operating margins, non-GAAP pre-tax income, non-GAAP net income and non-GAAP net income per diluted share.
-- Non-GAAP operating income consists of GAAP operating income excluding
the effects of expensing stock-based compensation related to stock
options, restricted stock and restricted stock units in accordance
with FASB ASC Topic 718 beginning in 2006 and amortization of deferred
stock-based compensation expense in accordance with APB 25 for grants
made prior to 2006.
-- Non-GAAP operating margins are calculated by dividing non-GAAP
operating income by GAAP total revenue.
-- Non-GAAP net income consists of GAAP net income excluding stock-based
compensation expense recorded during the period (less related income
tax benefit).
-- Non-GAAP net income per diluted share is calculated by dividing
non-GAAP net income by GAAP weighted average diluted shares
outstanding.
eHealth believes that the presentation of these non-GAAP financial measures provide important supplemental information to management and investors regarding financial and business trends relating to the company's financial condition and results of operations. Management believes that the use of these non-GAAP financial measures provides consistency and comparability with the company's past financial reports. Management also believes that the exclusion of the items described above provides an additional measure of the company's operating results and facilitates comparisons of the company's core operating performance against prior periods and business model objectives. This information is provided to investors in order to facilitate additional analyses of past, present and future operating performance and as a supplemental means to evaluate the company's ongoing operations. Externally, the company believes that these non-GAAP financial measures continue to be useful to investors in their assessment of the company's operating performance.
Non-GAAP operating income, non-GAAP operating margins, non-GAAP net income and non-GAAP net income per diluted share are not calculated in accordance with GAAP, and should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Non-GAAP financial measures used in this press release have limitations in that they do not reflect all of the costs associated with the operations of the company's business and do not reflect all of the income tax as determined in accordance with GAAP. As a result, you should not consider these measures in isolation or as a substitute for analysis of eHealth's results as reported under GAAP. The company expects to continue to incur stock-based compensation costs described above, and exclusion of these costs, and their related income tax impact, from non-GAAP financial measures should not be construed as an inference that these costs are unusual or infrequent. The company compensates for these limitations by prominently disclosing GAAP operating income, GAAP net income and GAAP net income per diluted share and providing investors with reconciliations from the company's GAAP operating results to the non-GAAP financial measures for the relevant periods.
The accompanying tables provide more details on the GAAP financial measures that are most directly comparable to the non-GAAP financial measures and the related reconciliations between these financial measures.
EHEALTH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, March 31,
2009 2010
----------- -----------
Assets (1) (unaudited)
Current assets:
Cash and cash equivalents $ 131,339 $ 154,362
Marketable securities 22,184 4,213
Accounts receivable 2,295 2,237
Deferred income taxes 6,009 6,343
Prepaid expenses and other current assets 2,324 2,282
----------- -----------
Total current assets 164,151 169,437
Property and equipment, net 3,775 3,719
Deferred income taxes 919 928
Other assets 863 829
----------- -----------
Total assets $ 169,708 $ 174,913
=========== ===========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 3,252 $ 1,872
Accrued compensation and benefits 5,051 4,026
Accrued marketing expenses 3,879 4,514
Deferred revenue 401 443
Other current liabilities 2,677 2,142
----------- -----------
Total current liabilities 15,260 12,997
Other non-current liabilities 2,997 3,092
Stockholders' equity:
Common stock 25 25
Additional paid-in capital 183,747 187,904
Treasury stock shares, at cost (29,999) (29,999)
Retained earnings (accumulated deficit) (2,545) 688
Accumulated other comprehensive income 223 206
----------- -----------
Total stockholders' equity 151,451 158,824
----------- -----------
Total liabilities and stockholders' equity $ 169,708 $ 174,913
=========== ===========
(1) The condensed consolidated balance sheet at December 31, 2009 has been
derived from the audited consolidated financial statements at that date.
EHEALTH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts, unaudited)
Three Months Ended
March 31,
-------------------------
2009 2010
------------ ------------
Revenue:
Commission $ 28,204 $ 31,773
Sponsorship, licensing and other 3,713 4,216
------------ ------------
Total revenue 31,917 35,989
Operating costs and expenses:
Cost of revenue-sharing 800 978
Marketing and advertising (1) 13,420 14,818
Customer care and enrollment (1) 3,822 3,946
Technology and content (1) 3,585 4,581
General and administrative (1) 4,701 5,767
------------ ------------
Total operating costs and expenses 26,328 30,090
------------ ------------
Income from operations 5,589 5,899
Interest and other income, net 399 28
------------ ------------
Income before income taxes 5,988 5,927
Provision for income taxes 2,845 2,694
------------ ------------
Net income $ 3,143 $ 3,233
============ ============
Net income per share:
Basic $ 0.13 $ 0.14
Diluted $ 0.12 $ 0.13
Weighted-average number of shares used in per
share amounts:
Basic 24,892 23,457
Diluted 25,720 24,364
------------
(1) Includes stock-based compensation expense as
follows:
Marketing and advertising $ 142 $ 207
Customer care and enrollment 59 93
Technology and content 198 443
General and administrative 542 910
------------ ------------
Total $ 941 $ 1,653
============ ============
EHEALTH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
Three Months Ended
March 31,
--------------------
2009 2010
--------- ---------
Operating activities
Net income $ 3,143 $ 3,233
Adjustments to reconcile net income to net cash
provided by operating activities:
Deferred income taxes 1,672 2,407
Depreciation and amortization 547 514
Amortization and accretion on marketable
securities, net 169 43
Stock-based compensation expense 941 1,653
Excess tax benefits from stock-based compensation (1,173) (2,635)
Deferred rent (25) 7
Loss on disposal of property and equipment 10 6
Changes in operating assets and liabilities:
Accounts receivable (1,019) 58
Prepaid expenses and other current assets (335) 43
Other assets 96 34
Accounts payable 503 (1,379)
Accrued compensation and benefits (926) (1,025)
Accrued marketing expenses 796 635
Deferred revenue 90 42
Other current liabilities 233 (543)
--------- ---------
Net cash provided by operating activities 4,722 3,093
--------- ---------
Investing activities
Purchases of property and equipment (241) (464)
Purchase of other assets (1,280) --
Purchases of marketable securities (14,439) --
Sales of marketable securities 1,006 --
Maturities of marketable securities 13,700 17,900
--------- ---------
Net cash provided by (used in) investing activities (1,254) 17,436
--------- ---------
Financing activities
Net proceeds from exercise of common stock options 249 426
Cash used to net share settle equity awards (103) (557)
Excess tax benefits from stock-based compensation 1,173 2,635
Repurchase of common stock (4,593) --
Principal payments in connection with capital lease (9) (10)
--------- ---------
Net cash provided by (used in) financing activities (3,283) 2,494
--------- ---------
Effect of exchange rate changes on cash and cash
equivalents -- --
--------- ---------
Net increase in cash and cash equivalents 185 23,023
Cash and cash equivalents at beginning of period 94,136 131,339
--------- ---------
Cash and cash equivalents at end of period $ 94,321 $ 154,362
========= =========
EHEALTH, INC.
SUMMARY OF SELECTED METRICS
(Unaudited)
Three Months Ended Three Months Ended
Key Metrics: March 31, 2009 March 31, 2010
------------------ ------------------
Operating cash flows (1) $ 4,722,000 $ 3,093,000
IFP submitted applications (2) 141,200 135,600
IFP approved members (3) 120,900 114,200
Total approved members (4) 157,700 144,400
Total revenue (5) $ 31,917,000 $ 35,989,000
Total revenue per estimated member
for the period (6) $ 49.24 $ 48.53
As of As of
March 31, 2009 March 31, 2010
------------------ ------------------
IFP estimated membership (7) 585,100 661,000
Total estimated membership (8) 680,100 755,200
Three Months Ended Three Months Ended
March 31, 2009 March 31, 2010
------------------ ------------------
Marketing and advertising expenses
(9) $ 13,420,000 $ 14,818,000
Marketing and advertising expenses
as a percentage of total revenue
(10) 42% 41%
Marketing and advertising expenses
excluding stock-based compensation
(11) $ 13,278,000 $ 14,611,000
Marketing and advertising expenses
excluding stock based compensation
as a percentage of total revenue
(12) 42% 41%
Other Metrics:
Source of IFP submitted
applications (as a percentage of
total IFP applications for the
period):
Direct (13) 41% 43%
Marketing partners (14) 34% 27%
Online advertising (15) 25% 30%
------------------ ------------------
Total 100% 100%
================== ==================
Acquisition cost per individual on
IFP submitted applications (16) $ 62.95 $ 73.68
Acquisition cost (excluding
stock-based compensation) per
individual on IFP submitted
applications (17) $ 62.28 $ 72.66
Notes:
(1) Net cash provided by operating activities for the period from the condensed consolidated statements of cash flows.
(2) IFP applications submitted on eHealth's website during the period. Applications are counted as submitted when the applicant completes the application, provides a method for payment and clicks the submit button on our website and submits the application to us. The applicant generally has additional actions to take before the application will be reviewed by the insurance carrier, such as providing additional information and providing an electronic signature. In addition, an applicant may submit more than one application. We include applications for IFP products for which we receive commissions as well as other forms of payment. We define our "IFP" offerings as major medical individual and family health insurance plans, which does not include small business, short-term major medical, stand-alone dental, life or student health insurance product offerings.
(3) New IFP members reported to eHealth as approved during the period. Some members that are approved by a carrier do not accept the approval and therefore do not become paying members. Does not include members transferred from Health Benefits Direct Corporation during 2009.
(4) New members for all products reported to eHealth as approved during the period. Some members that are approved by a carrier do not accept the approval and therefore do not become paying members. Does not include members transferred from Health Benefits Direct Corporation during 2009.
(5) Total revenue (from all sources) recognized during the period from the condensed consolidated statements of income.
(6) Calculated as total revenue recognized during the period (see note (5) above) divided by average estimated membership for the period (calculated as beginning and ending estimated membership for all products for the period, divided by two). Ending membership as of March 31, 2009 and 2010 each include an estimated 20,000 members transferred from Health Benefits Direct Corporation as of each date, net of estimated cancelations since their transfer. See our Form 10-K for the year ended December 31, 2009 -- Item 7 -- Management's Discussion and Analysis of Financial Condition and Results of Operations -- Summary of Selected Metrics for additional information regarding our calculation of estimated membership.
(7) Estimated number of members active on IFP insurance policies as of the date indicated. Amounts as of March 31, 2009 and 2010 each include an estimated 20,000 members transferred from Health Benefits Direct Corporation as of each date, net of estimated cancelations since their transfer. See our Form 10-K for the year ended December 31, 2009 -- Item 7 -- Management's Discussion and Analysis of Financial Condition and Results of Operations -- Summary of Selected Metrics for additional information regarding our calculation of estimated membership.
(8) Estimated number of members active on all insurance policies as of the date indicated. Amounts as of March 31, 2009 and 2010 each include an estimated 20,000 members transferred from Health Benefits Direct Corporation as of each date, net of estimated cancelations since their transfer. See our Form 10-K for the year ended December 31, 2009 -- Item 7 -- Management's Discussion and Analysis of Financial Condition and Results of Operations -- Summary of Selected Metrics for additional information regarding our calculation of estimated membership.
(9) Marketing and advertising expenses for the period from the condensed consolidated statements of income.
(10) Calculated as marketing and advertising expenses for the period (see note (9) above) divided by total revenue for the period (see note (5) above).
(11) Non-GAAP marketing and advertising expenses excluding stock-based compensation for the period. See Non-GAAP Financial Information above and the reconciliation of GAAP to Non-GAAP marketing and advertising expenses below.
(12) Calculated as non-GAAP marketing and advertising expenses for the period (see note (11) above) divided by total revenue for the period (see note (5) above). See Non-GAAP Financial Information above and the reconciliation of GAAP to Non-GAAP marketing and advertising expenses below.
(13) Percentage of IFP submitted applications from applicants who came directly to the eHealth website through algorithmic search engine results or otherwise. See note (2) above for further information as to what constitutes a submitted application.
(14) Percentage of IFP submitted applications from applicants sourced through eHealth's network of marketing partners. See note (2) above for further information as to what constitutes a submitted application.
(15) Percentage of IFP submitted applications from applicants sourced through paid search and other online advertising activities. See note (2) above for further information as to what constitutes a submitted application.
(16) Calculated as marketing and advertising expenses for the period (see note (9) above) divided by the number of individuals on IFP applications submitted on eHealth's website during the period. This metric may not reflect the true acquisition cost.
(17) Calculated as non-GAAP marketing and advertising expenses for the period (see note (11) above) divided by the number of individuals on IFP applications submitted on eHealth's website during the period. This metric may not reflect the true acquisition cost exclusive of the impact of stock-based compensation allocated to marketing and advertising expenses.
EHEALTH, INC.
GAAP TO NON-GAAP RECONCILIATION
FOR THE THREE MONTHS ENDED MARCH 31, 2010
(In thousands, except per share amounts, unaudited)
Statement of Income Reconciliation
Three Months Ended March 31, 2010
-------------------------------------------
GAAP Non-GAAP
Percent Percent
of of
GAAP Total Adjust- Non-GAAP Total
Reported Revenue ments Results Revenue
-------- ------- ------- -------- -------
Revenue:
Commission $ 31,773 88% $ -- $ 31,773 88%
Sponsorship, licensing and
other 4,216 12 -- 4,216 12
-------- ------- ------- -------- -------
Total revenue 35,989 100 -- 35,989 100
Operating costs and expenses:
Cost of revenue-sharing 978 3 -- 978 3
Marketing and advertising
(1) 14,818 41 (207) 14,611 41
Customer care and enrollment
(1) 3,946 11 (93) 3,853 11
Technology and content (1) 4,581 13 (443) 4,138 11
General and administrative
(1) 5,767 16 (910) 4,857 13
-------- ------- ------- -------- -------
Total operating costs and
expenses 30,090 84 (1,653) 28,437 79
-------- ------- ------- -------- -------
Income from operations 5,899 16 1,653 7,552 21
Interest and other income, net 28 0 -- 28 0
-------- ------- ------- -------- -------
Income before income taxes 5,927 16 1,653 7,580 21
Provision for income taxes (2) 2,694 7 505 3,199 9
-------- ------- ------- -------- -------
Net income (3) $ 3,233 9% $ 1,148 $ 4,381 12%
======== ======= ======= ======== =======
Net income per share: (3)
Basic $ 0.14 $ 0.05 $ 0.19
Diluted $ 0.13 $ 0.05 $ 0.18
Weighted-average number of
shares used in per share
amounts:
Basic 23,457 23,457 23,457
Diluted 24,364 24,364 24,364
Explanation of adjustments (1) Non-GAAP results exclude the effect of expensing stock-based compensation related to stock options, restricted stock and restricted stock units in accordance with FASB ASC Topic 718.
(2) Non-GAAP provision for income taxes excludes estimated income tax benefit related to stock-based compensation expense listed in note (1) above.
(3) Non-GAAP net income and non-GAAP net income per share exclude stock-based compensation expense listed in note (1) above and estimated income tax benefit listed in note (2) above.
EHEALTH, INC.
GAAP TO NON-GAAP RECONCILIATION
FOR THE THREE MONTHS ENDED MARCH 31, 2009
(In thousands, except per share amounts, unaudited)
Statement of Income Reconciliation
Three Months Ended March 31, 2009
-------------------------------------------
GAAP Non-GAAP
Percent Percent
of of
GAAP Total Adjust- Non-GAAP Total
Reported Revenue ments Results Revenue
-------- ------- ------- -------- -------
Revenue:
Commission $ 28,204 88% $ -- $ 28,204 88%
Sponsorship, licensing and
other 3,713 12 -- 3,713 12
-------- ------- ------- -------- -------
Total revenue 31,917 100 -- 31,917 100
Operating costs and expenses:
Cost of revenue-sharing 800 2 -- 800 2
Marketing and advertising
(1) 13,420 42 (142) 13,278 42
Customer care and enrollment
(1) 3,822 12 (59) 3,763 12
Technology and content (1) 3,585 11 (198) 3,387 11
General and administrative
(1) 4,701 15 (542) 4,159 13
-------- ------- ------- -------- -------
Total operating costs and
expenses 26,328 82 (941) 25,387 80
-------- ------- ------- -------- -------
Income from operations 5,589 18 941 6,530 20
Interest and other income, net 399 1 -- 399 1
-------- ------- ------- -------- -------
Income before income taxes 5,988 19 941 6,929 21
Provision for income taxes (2) 2,845 9 131 2,976 9
-------- ------- ------- -------- -------
Net income (3) $ 3,143 10% $ 810 $ 3,953 12%
======== ======= ======= ======== =======
Net income per share: (3)
Basic $ 0.13 $ 0.03 $ 0.16
Diluted $ 0.12 $ 0.03 $ 0.15
Weighted-average number of
shares used in per share
amounts:
Basic 24,892 24,892 24,892
Diluted 25,720 25,720 25,720
Explanation of adjustments (1) Non-GAAP results exclude the effect of expensing stock-based compensation related to stock options, restricted stock and restricted stock units in accordance with FASB ASC Topic 718 beginning in 2006, in addition to the amortization of deferred stock-based compensation expense in accordance with APB 25 for grants made prior to 2006.
(2) Non-GAAP provision for income taxes excludes estimated income tax benefit related to stock-based compensation expense listed in note (1) above.
(3) Non-GAAP net income and non-GAAP net income per share exclude stock-based compensation expense listed in note (1) above and estimated income tax benefit listed in note (2) above.
Investor Relations Contact:
Kate Sidorovich
Director, Investor Relations
440 East Middlefield Road
Mountain View, CA 94043
(650) 210-3111
kate.sidorovich@ehealth.com
http://ir.ehealthinsurance.com
Media Contact:
Brian Mast
Director, Public Relations
440 East Middlefield Road
Mountain View, CA 94043
(650) 210-3149
brian.mast@ehealth.com
http://www.ehealthinsurance.com
SOURCE: eHealth, Inc.
mailto:kate.sidorovich@ehealth.com
http://ir.ehealthinsurance.com
mailto:brian.mast@ehealth.com
http://www.ehealthinsurance.com