0001333493-21-000069 | 10-Q | XBRL Viewer

Equity (Tables)

3 Months Ended

Mar. 31, 2021

Stockholders' Equity Note [Abstract]

Schedule Of Stock-Based Compensation Expense By Award Type

Our stock-based compensation expense is summarized as follows by award types (in thousands):


	Three Months Ended March 31,
		2021		2020
Common stock options		$	180	$	306
Restricted stock units*		10,719		8,408
ESPP		503		—
Total stock-based compensation expense		$	11,402	$	8,714

_________

* Amounts include market-based and performance-based RSUs.

Schedule Of Stock-Based Compensation Expense By Operating Function

The following table summarizes stock-based compensation expense by operating function for the periods presented below (in thousands):


	Three Months Ended March 31,
		2021		2020
Marketing and advertising		$	2,485	$	1,730
Customer care and enrollment		469		662
Technology and content		2,743		1,617
General and administrative		5,705		4,705

Total stock-based compensation expense		$	11,402	$	8,714
Amount capitalized in internal-use software		550		248
Total stock-based compensation		$	11,952	$	8,962

Segment and Geographic Information - Segment Operating Results (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021 USD ($) segment	Mar. 31, 2020 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments \| segment	2
Total revenue	$ 134,214	$ 106,408
Stock-based compensation expense	(11,402)	(8,714)
Depreciation and amortization	(3,944)	(2,324)
Amortization of intangible assets	(176)	(547)
Restructuring charges	(2,431)	0
Other income, net	150	373
Income (loss) before provision for (benefit from) income taxes	(492)	1,404
Amortization of internally developed software	2,806	1,501
Operating Segments
Segment Reporting Information [Line Items]
Total revenue	134,214	106,408
Segment profit (loss)	32,597	26,064
Operating Segments \| Medicare
Segment Reporting Information [Line Items]
Total revenue	121,021	96,151
Segment profit (loss)	24,545	23,136
Operating Segments \| Individual, Family and Small Business
Segment Reporting Information [Line Items]
Total revenue	13,193	10,257
Segment profit (loss)	8,052	2,928
Corporate
Segment Reporting Information [Line Items]
Segment profit (loss)	$ (15,286)	$ (13,448)

Equity - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 11,402	$ 8,714
Amount capitalized in internal-use software	550	248
Total stock-based compensation	11,952	8,962
Common stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	180	306
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	10,719	8,408
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	503	0
Marketing and advertising
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	2,485	1,730
Customer care and enrollment
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	469	662
Technology and content
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	2,743	1,617
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 5,705	$ 4,705

Supplemental Financial Statement Information (Tables)

3 Months Ended

Mar. 31, 2021

Balance Sheet Related Disclosures [Abstract]

Schedule Of Cash, Cash Equivalents and Restricted Cash

Our cash, cash equivalent and restricted cash balances are summarized as follows (in thousands):


	March 31, 2021		December 31, 2020
Cash	$	72,326	$	39,552
Cash equivalents	19,924		4,207
Cash and cash equivalents	92,250		43,759
Restricted cash	3,354		3,354
Total cash, cash equivalents and restricted cash	$	95,604	$	47,113

Schedule of Cash, Cash Equivalents and Restricted Cash

Our cash, cash equivalent and restricted cash balances are summarized as follows (in thousands):


	March 31, 2021		December 31, 2020
Cash	$	72,326	$	39,552
Cash equivalents	19,924		4,207
Cash and cash equivalents	92,250		43,759
Restricted cash	3,354		3,354
Total cash, cash equivalents and restricted cash	$	95,604	$	47,113

Schedule of Change in Allowance for Credit Loss

The change in the allowance for credit losses for the three months ended March 31, 2021 is summarized as follows (in thousands):


	Three Months Ended March 31, 2021
Beginning balance	$	2,026
Change in allowance	(78)
Ending balance	$	1,948

Schedule of Contract Assets - Commissions Receivable

Our contract assets – commission receivable activities, net of credit loss allowances are summarized as follows (in thousands):


	Three Months Ended March 31, 2021
	Medicare Segment		IFP/SMB Segment		Total
Beginning balance	$	739,637	$	52,768	$	792,405
Commission revenue from members approved during the period	114,678		6,395		121,073
Commission revenue from renewals of small business members during the period (1)	—		2,687		2,687
Net commission revenue adjustments from members approved in prior period	14		3,278		3,292
Cash receipts	(165,520)		(12,012)		(177,532)
Net change in credit loss allowance	(72)		(6)		(78)
Ending balance	$	688,737	$	53,110	$	741,847


	Three Months Ended March 31, 2020
	Medicare Segment		IFP/SMB Segment		Total
Beginning balance	$	550,922	$	38,300	$	589,222
Commission revenue from members approved during the period	81,125		5,796		86,921
Commission revenue from renewals of small business members during the period (1)	—		2,396		2,396
Net commission revenue adjustments from members approved in prior period	8,979		1,373		10,352
Cash receipts	(112,731)		(13,811)		(126,542)
Net change in credit loss allowance	(1,574)		(58)		(1,632)
Ending balance	$	526,721	$	33,996	$	560,717

_____________

(1)Commission revenue from renewals of small business members during the period was previously included in net commission revenue from members approved in prior periods. However, starting in the first quarter of 2021, we enhanced our reporting by separately disclosing commission revenue from renewals of small business members during the period in a separate line item.

Schedule of Credit Risk

Carriers that represented 10% or more of our total contract assets and accounts receivable balance are summarized as of the dates presented below:


	March 31, 2021		December 31, 2020
UnitedHealthCare (1)	21	%	21	%
Humana	21	%	21	%
Aetna (1)	20	%	20	%
Centene (1)(2)	12	%	11	%

_____________

(1)Percentages include the carriers' subsidiaries.

(2)Centene Corporation acquired WellCare Health Plans, Inc. in 2020, and the contract assets and accounts receivable of WellCare are included in the percentage calculation for March 31, 2021 and December 31, 2020.

Schedule Of Prepaid Expenses And Other Current Assets

Our prepaid expenses and other current assets are summarized as of the periods presented as follows (in thousands):


	March 31, 2021		December 31, 2020
Prepaid maintenance contracts	$	6,583	$	7,715
Prepaid expenses	4,095		6,628
Prepaid insurance	1,031		1,672


Others	616		646
Prepaid expenses and other current assets	$	12,325	$	16,661

Restructuring (Details) $ in Thousands	1 Months Ended	3 Months Ended
Restructuring (Details) $ in Thousands	Feb. 28, 2021 employee	Mar. 31, 2021 USD ($)	Mar. 31, 2020 USD ($)
Restructuring and Related Activities [Abstract]
Positions eliminated \| employee	89
Percentage of total workforce	5.00%
Restructuring charges		$ 2,431	$ 0
Accrued restructuring charges		$ 300

Supplemental Financial Statement Information - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Balance Sheet Related Disclosures [Abstract]
Prepaid maintenance contracts	$ 6,583	$ 7,715
Prepaid expenses	4,095	6,628
Prepaid insurance	1,031	1,672
Others	616	646
Prepaid expenses and other current assets	$ 12,325	$ 16,661

Income Taxes

3 Months Ended

Mar. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

The following table summarizes our provision for (benefit from) income taxes and our effective tax rates for the periods presented below (in thousands, except effective tax rate):


	Three Months Ended March 31,
		2021			2020
Income (loss) before provision for (benefit from) income taxes		$	(492)		$	1,404
Provision for (benefit from) income taxes		308			(2,048)
Effective tax rate		(62.6)		%	(145.9)		%

For the three months ended March 31, 2021, we recognized a provision for income taxes of $0.3 million, representing an effective tax rate of (62.6)%, which was lower than the statutory federal tax rate due primarily to one-time state tax adjustments. For the three months ended March 31, 2020, we recognized a benefit from income taxes of $2.0 million, representing an effective tax rate of (145.9)%, which was lower than the statutory federal tax rate due primarily to stock-based compensation windfalls.

Assessing the realizability of our deferred tax assets is dependent upon several factors, including the likelihood and amount, if any, of future taxable income in relevant jurisdictions during the periods in which those temporary differences become deductible. We forecast taxable income by considering all available positive and negative evidence, including our history of operating income and losses and our financial plans and estimates that we use to manage the business. These assumptions require significant judgment about future taxable income. As a result, the amount of deferred tax assets considered realizable is subject to adjustment in future periods if estimates of future taxable income change. We continue to recognize our

deferred tax assets as of March 31, 2021, as we believe it is more likely than not that the net deferred tax assets will be realized, with the exception of certain net operating losses and credits that are expected to expire unutilized which have a valuation allowance.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Supplemental Financial Statement Information - Schedule of Commissions Receivable (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Change in Contract with Customer, Asset [Roll Forward]
Beginning balance	$ 792,405	$ 589,222
Total revenue	134,214	106,408
Cash receipts	(177,532)	(126,542)
Change in credit loss allowance	(78)	(1,632)
Ending balance	741,847	560,717
Medicare
Change in Contract with Customer, Asset [Roll Forward]
Beginning balance	739,637	550,922
Cash receipts	(165,520)	(112,731)
Change in credit loss allowance	(72)	(1,574)
Ending balance	688,737	526,721
Individual, Family and Small Business
Change in Contract with Customer, Asset [Roll Forward]
Beginning balance	52,768	38,300
Cash receipts	(12,012)	(13,811)
Change in credit loss allowance	(6)	(58)
Ending balance	53,110	33,996
Commission revenue from members approved during the period
Change in Contract with Customer, Asset [Roll Forward]
Total revenue	121,073	86,921
Commission revenue from members approved during the period \| Medicare
Change in Contract with Customer, Asset [Roll Forward]
Total revenue	114,678	81,125
Commission revenue from members approved during the period \| Individual, Family and Small Business
Change in Contract with Customer, Asset [Roll Forward]
Total revenue	6,395	5,796
Commission revenue from renewals of small business members during the period
Change in Contract with Customer, Asset [Roll Forward]
Total revenue	2,687	2,396
Commission revenue from renewals of small business members during the period \| Medicare
Change in Contract with Customer, Asset [Roll Forward]
Total revenue	0	0
Commission revenue from renewals of small business members during the period \| Individual, Family and Small Business
Change in Contract with Customer, Asset [Roll Forward]
Total revenue	2,687	2,396
Net commission revenue adjustments from members approved in prior period
Change in Contract with Customer, Asset [Roll Forward]
Total revenue	3,292	10,352
Net commission revenue adjustments from members approved in prior period \| Medicare
Change in Contract with Customer, Asset [Roll Forward]
Total revenue	14	8,979
Net commission revenue adjustments from members approved in prior period \| Individual, Family and Small Business
Change in Contract with Customer, Asset [Roll Forward]
Total revenue	$ 3,278	$ 1,373

Leases

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Leases

Our leases have remaining lease terms of 3 to 9 years. Certain of these leases have free or escalating rent payment provisions. We recognize lease expense on a straight-line basis over the terms of the leases, although actual cash payment obligations under certain of these agreements fluctuate over the terms of the agreements. Most leases include options to renew, and the exercise of these options is at our discretion.

Total operating lease expenses were $2.0 million and $2.1 million for the three months ended March 31, 2021 and 2020, respectively and sublease income was immaterial for both periods.

The following table summarizes the lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheets as of the dates presented below (in thousands):


	March 31, 2021		December 31, 2020
Operating lease right-of-use assets	$	41,284	$	42,558

Lease liabilities – current	$	5,316	$	5,192
Lease liabilities – non-current	39,984		41,369
Total operating lease liabilities	$	45,300	$	46,561

Supplemental information related to leases are as follows (in thousands):


	March 31, 2021			December 31, 2020
Operating cash outflows from operating leases	$	1,900		$	7,090

Weighted-average remaining lease term of operating leases	7.0 years			7.2 years
Weighted-average discount rate used to recognize operating lease right-of-use-assets	5.4		%	5.4		%

As of March 31, 2021, maturities of operating lease liabilities are as follows (in thousands):


Year ending December 31,
Remainder of 2021	$	5,744
2022	7,701
2023	8,033
2024	7,832
2025	8,009
Thereafter	19,407
Total lease payments (1)	56,726
Less imputed interest	(11,426)
Total	$	45,300

____________

(1)Noncancellable sublease income for the remainder of 2021 and years ending December 31, 2022 and 2023 of $0.9 million, $0.4 million and $0.4 million, respectively, is not included in the table above.

Summary of Business and Significant Accounting Policies - Narrative (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2021 USD ($) insurance_carrier state	Mar. 31, 2020 USD ($)	Dec. 31, 2020 USD ($)
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Number of health insurance carriers (more than) \| insurance_carrier	200
Number of states in which the Company is licensed to market and sell health insurance \| state	50
Total stock-based compensation expense	$ 11,402	$ 8,714
Cost of revenue	996	1,138
Decrease in net income (loss)	800	$ (3,452)
Under-Recognition Of Stock-Based Compensation Expense
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total stock-based compensation expense			$ 3,000
Out-Of-Period Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Decrease in net income (loss)	$ 1,500
License \| Over-Recognition Of Licensing Costs
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cost of revenue			$ 1,500

Commitments and Contingencies (Details) $ in Thousands		1 Months Ended	3 Months Ended
Commitments and Contingencies (Details) $ in Thousands	Jul. 01, 2019 plaintiff	Apr. 30, 2020 claim	Oct. 13, 2020 plaintiff	Mar. 31, 2021 USD ($)
Loss Contingencies [Line Items]
Remainder of 2021				$ 4,246
2022				3,472
2023				2,745
2024				2,056
2025				1,353
Thereafter				1,353
Total				$ 15,225
New claims filed		2	2
Le'Vias Compliant
Loss Contingencies [Line Items]
Number of plaintiffs \| plaintiff	2

Net Income (Loss) Per Share

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding for the period. Diluted net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common and common equivalent shares outstanding during the period. Diluted net income (loss) per share is computed giving effect to all potential dilutive common stock equivalent shares, including options, restricted stock units and shares to be issued under our ESPP. The dilutive effect of outstanding awards is reflected in diluted net income (loss) per share by application of the treasury stock method.

The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share amounts):


	Three Months Ended March 31,
		2021		2020
Numerator:
Net income (loss)		$	(800)	$	3,452
Denominator:
Shares used in per share calculation – basic		26,620		24,719
Dilutive effect of common stock		—		1,460
Shares used in diluted share calculation		26,620		26,179

Net income (loss) per share – basic		$	(0.03)	$	0.14
Net income (loss) per share – diluted		$	(0.03)	$	0.13

For each of the three months ended March 31, 2021 and 2020, we had securities outstanding that could potentially dilute per share amounts, but the shares from the assumed conversion or exercise of these securities were excluded in the computation of diluted net income (loss) per share as their effect would have been anti-dilutive. The number of outstanding anti-dilutive shares that were excluded from the computation of diluted net income (loss) per share consisted of the following (in thousands):

Three Months Ended March 31,

2021

2020*

Common stock options

363

n/a

Restricted stock units

1,090

n/a

ESPP

n/a

Total

1,460

n/a

_________

* There were no antidilutive shares for this period.

Revenue - Commission Revenue by Segment (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Disaggregation of Revenue [Line Items]
Total revenue	$ 134,214	$ 106,408
Basic (in dollars per share)	$ (0.03)	$ 0.14
Diluted (in dollars per share)	$ (0.03)	$ 0.13
Commission
Disaggregation of Revenue [Line Items]
Total revenue	$ 127,052	$ 99,669
Commission revenue from members approved during the period
Disaggregation of Revenue [Line Items]
Total revenue	121,073	86,921
Net commission revenue adjustments from members approved in prior period
Disaggregation of Revenue [Line Items]
Total revenue	$ 3,292	$ 10,352
Basic (in dollars per share)	$ 0.12	$ 0.42
Diluted (in dollars per share)	$ 0.12	$ 0.40
Commission revenue from renewals of small business members during the period
Disaggregation of Revenue [Line Items]
Total revenue	$ 2,687	$ 2,396
Medicare \| Commission
Disaggregation of Revenue [Line Items]
Total revenue	114,692	90,104
Medicare \| Commission revenue from members approved during the period
Disaggregation of Revenue [Line Items]
Total revenue	114,678	81,125
Medicare \| Net commission revenue adjustments from members approved in prior period
Disaggregation of Revenue [Line Items]
Total revenue	14	8,979
Medicare \| Commission revenue from renewals of small business members during the period
Disaggregation of Revenue [Line Items]
Total revenue	0	0
Individual, Family and Small Business \| Commission
Disaggregation of Revenue [Line Items]
Total revenue	12,360	9,565
Individual, Family and Small Business \| Commission revenue from members approved during the period
Disaggregation of Revenue [Line Items]
Total revenue	6,395	5,796
Individual, Family and Small Business \| Net commission revenue adjustments from members approved in prior period
Disaggregation of Revenue [Line Items]
Total revenue	3,278	1,373
Decrease in revenue	(900)
Individual, Family and Small Business \| Commission revenue from renewals of small business members during the period
Disaggregation of Revenue [Line Items]
Total revenue	$ 2,687	$ 2,396

Supplemental Financial Statement Information - Schedule of Allowance for Credit Loss (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021 USD ($)
Contract with Customer, Asset, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 2,026
Change in allowance	(78)
Ending balance	$ 1,948

Leases (Tables)

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Schedule of Supplemental Balance Sheet Information

The following table summarizes the lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheets as of the dates presented below (in thousands):


	March 31, 2021		December 31, 2020
Operating lease right-of-use assets	$	41,284	$	42,558

Lease liabilities – current	$	5,316	$	5,192
Lease liabilities – non-current	39,984		41,369
Total operating lease liabilities	$	45,300	$	46,561

Schedule of Supplemental Information

Supplemental information related to leases are as follows (in thousands):


	March 31, 2021			December 31, 2020
Operating cash outflows from operating leases	$	1,900		$	7,090

Weighted-average remaining lease term of operating leases	7.0 years			7.2 years
Weighted-average discount rate used to recognize operating lease right-of-use-assets	5.4		%	5.4		%

Schedule of Operating Lease Maturities

As of March 31, 2021, maturities of operating lease liabilities are as follows (in thousands):


Year ending December 31,
Remainder of 2021	$	5,744
2022	7,701
2023	8,033
2024	7,832
2025	8,009
Thereafter	19,407
Total lease payments (1)	56,726
Less imputed interest	(11,426)
Total	$	45,300

____________

Equity

3 Months Ended

Mar. 31, 2021

Stockholders' Equity Note [Abstract]

Equity

Public Offering of Common Stock – Pursuant to an effective registration statement that was filed on December 17, 2018, and amended on January 22, 2019 and March 2, 2020, we entered into an underwriting agreement in March 2020 to issue a total of 2.1 million shares of common stock, which included the exercise in full of the underwriters’ option to purchase 0.3 million additional shares of common stock, at a price to the public of $115.00 per share in March 2020. Net proceeds from the offering were approximately $228.0 million after deducting underwriting discounts, commissions and expenses of the offering.

Stock Repurchase Programs – We had no stock repurchase activity during the three months ended March 31, 2021. In addition to 10.7 million shares repurchased under our previous repurchase programs, we have in treasury 1.2 million shares as of March 31, 2021 that were previously surrendered by employees to satisfy tax withholding due in connection with the vesting of certain restricted stock units. As of March 31, 2021 and December 31, 2020, we had a total of 11.9 million shares and 11.8 million shares, respectively, held in treasury.

For accounting purposes, common stock repurchased under our stock repurchase programs is recorded based upon the settlement date of the applicable trade. Such repurchased shares are held in treasury and are presented using the cost method.

Stock-Based Compensation Expense – Our stock-based compensation expense is summarized as follows by award types (in thousands):


	Three Months Ended March 31,
		2021		2020
Common stock options		$	180	$	306
Restricted stock units*		10,719		8,408
ESPP		503		—
Total stock-based compensation expense		$	11,402	$	8,714

_________

* Amounts include market-based and performance-based RSUs.

The following table summarizes stock-based compensation expense by operating function for the periods presented below (in thousands):


	Three Months Ended March 31,
		2021		2020
Marketing and advertising		$	2,485	$	1,730
Customer care and enrollment		469		662
Technology and content		2,743		1,617
General and administrative		5,705		4,705

Total stock-based compensation expense		$	11,402	$	8,714
Amount capitalized in internal-use software		550		248
Total stock-based compensation		$	11,952	$	8,962

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

We classify the inputs used to measure fair value into the following hierarchy:


Level 1			Unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2			Unadjusted quoted prices in active markets for similar assets or liabilities; unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability.
Level 3			Unobservable inputs for the asset or liability.

Summary of Financial Assets Measured at Fair Value on a Recurring Basis

Our financial assets measured at fair value on a recurring basis are summarized below by their classification within the fair value hierarchy as of the dates presented below (in thousands):


	March 31, 2021
	Carrying Value		Level 1		Level 2		Level 3		Total
Assets
Cash equivalents
Money market funds	$	5,602	$	5,602	$	—	$	—	$	5,602
Commercial paper	14,322		—		14,322		—		14,322

Short-term marketable securities
Agency bonds	26,826		—		26,826		—		26,826
Commercial paper	7,096		—		7,096		—		7,096




Total assets measured at fair value	$	53,846	$	5,602	$	48,244	$	—	$	53,846


	December 31, 2020
	Carrying Value		Level 1		Level 2		Level 3		Total
Assets
Cash equivalents
Money market funds	$	4,207	$	4,207	$	—	$	—	$	4,207

Short-term marketable securities
Agency bonds	35,423		—		35,423		—		35,423
Commercial paper	14,197		—		14,197		—		14,197




Total assets measured at fair value	$	53,827	$	4,207	$	49,620	$	—	$	53,827

Summary of Contractual Maturities

The following table summarizes our cash equivalents and available-for-sale debt securities by contractual maturity (in thousands):


	As of March 31, 2021
	Amortized Cost		Fair Value
Due in 1 year	$	53,827	$	53,846

Summary of Unrealized Gains and Losses

Unrealized gains and losses on available-for-sale debt securities that are not credit related are included in accumulated other comprehensive income and summarized as follows as of March 31, 2021 (in thousands):


	Amortized Cost		Unrealized Gain		Unrealized Loss		Fair Value
Cash equivalents
Money market funds	$	5,602	$	—	$	—	$	5,602
Commercial paper	14,323		—		(1)		14,322

Short-term marketable securities
Agency bonds	26,805		21		—		26,826
Commercial paper	7,097		—		(1)		7,096



Total	$	53,827	$	21	$	(2)	$	53,846

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Provision for (benefit from) income taxes	$ 308	$ (2,048)
Effective tax rate	(62.60%)	(145.90%)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Fair Value Measurements - Summary of Financial Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Assets
Short-term marketable securities	$ 33,922	$ 49,620
Level 1 \| Recurring
Assets
Total assets measured at fair value	5,602	4,207
Level 2 \| Recurring
Assets
Total assets measured at fair value	48,244	49,620
Level 3 \| Recurring
Assets
Total assets measured at fair value	0	0
Carrying Value \| Recurring
Assets
Total assets measured at fair value	53,846	53,827
Fair Value \| Recurring
Assets
Total assets measured at fair value	53,846	53,827
Agency bonds
Assets
Short-term marketable securities	26,826
Agency bonds \| Level 1 \| Recurring
Assets
Short-term marketable securities	0	0
Agency bonds \| Level 2 \| Recurring
Assets
Short-term marketable securities	26,826	35,423
Agency bonds \| Level 3 \| Recurring
Assets
Short-term marketable securities	0	0
Agency bonds \| Carrying Value \| Recurring
Assets
Short-term marketable securities	26,826	35,423
Agency bonds \| Fair Value \| Recurring
Assets
Short-term marketable securities	26,826	35,423
Commercial paper
Assets
Short-term marketable securities	7,096
Commercial paper \| Level 1 \| Recurring
Assets
Short-term marketable securities	0	0
Commercial paper \| Level 2 \| Recurring
Assets
Short-term marketable securities	7,096	14,197
Commercial paper \| Level 3 \| Recurring
Assets
Short-term marketable securities	0	0
Commercial paper \| Carrying Value \| Recurring
Assets
Short-term marketable securities	7,096	14,197
Commercial paper \| Fair Value \| Recurring
Assets
Short-term marketable securities	7,096	14,197
Money market funds
Assets
Cash equivalents	5,602
Money market funds \| Level 1 \| Recurring
Assets
Cash equivalents	5,602	4,207
Money market funds \| Level 2 \| Recurring
Assets
Cash equivalents	0	0
Money market funds \| Level 3 \| Recurring
Assets
Cash equivalents	0	0
Money market funds \| Carrying Value \| Recurring
Assets
Cash equivalents	5,602	4,207
Money market funds \| Fair Value \| Recurring
Assets
Cash equivalents	5,602	$ 4,207
Commercial paper
Assets
Cash equivalents	14,322
Commercial paper \| Level 1 \| Recurring
Assets
Cash equivalents	0
Commercial paper \| Level 2 \| Recurring
Assets
Cash equivalents	14,322
Commercial paper \| Level 3 \| Recurring
Assets
Cash equivalents	0
Commercial paper \| Carrying Value \| Recurring
Assets
Cash equivalents	14,322
Commercial paper \| Fair Value \| Recurring
Assets
Cash equivalents	$ 14,322

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 92,250	$ 43,759
Short-term marketable securities	33,922	49,620
Accounts receivable	1,847	1,799
Contract assets – commissions receivable – current	180,276	219,153
Prepaid expenses and other current assets	12,325	16,661
Total current assets	320,620	330,992
Contract assets – commissions receivable – non-current	561,571	573,252
Property and equipment, net	14,869	14,609
Operating lease right-of-use assets	41,284	42,558
Restricted cash	3,354	3,354
Intangible assets, net	8,393	8,569
Goodwill	40,233	40,233
Other assets	27,471	26,455
Total assets	1,017,795	1,040,022
Current liabilities:
Accounts payable	10,944	36,921
Accrued compensation and benefits	24,630	20,542
Accrued marketing expenses	11,076	17,788
Lease liabilities – current	5,316	5,192
Deferred revenue	877	308
Other current liabilities	4,270	3,657
Total current liabilities	57,113	84,408
Commitments and contingencies
Deferred income taxes – non-current	71,748	72,317
Lease liabilities – non-current	39,984	41,369
Other non-current liabilities	5,025	4,370
Stockholders’ equity:
Common stock	38	38
Additional paid-in capital	728,213	721,013
Treasury stock, at cost	(199,998)	(199,998)
Retained earnings	315,355	316,155
Accumulated other comprehensive income	317	350
Total stockholders’ equity	843,925	837,558
Total liabilities and stockholders’ equity	$ 1,017,795	$ 1,040,022

Fair Value Measurements - Contractual Maturities (Details) $ in Thousands	Mar. 31, 2021 USD ($)
Amortized Cost
Due in 1 year	$ 53,827
Fair Value
Due in 1 year	$ 53,846

Supplemental Financial Statement Information - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Cash and Cash Equivalents [Line Items]
Restricted cash	$ 3,354	$ 3,354
China
Cash and Cash Equivalents [Line Items]
Deposits	$ 3,500

Leases - Supplemental Information (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating cash outflows from operating leases	$ 1,900	$ 7,090
Weighted-average remaining lease term of operating leases	7 years	7 years 2 months 12 days
Weighted-average discount rate used to recognize operating lease right-of-use-assets	5.40%	5.40%

Debt (Details) - USD ($)			3 Months Ended
Debt (Details) - USD ($)	Dec. 20, 2019	Sep. 17, 2018	Mar. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Borrowings under line of credit			$ 0
Credit Agreement Amendment
Debt Instrument [Line Items]
Debt issuance costs			500,000
Revolving Credit Facility
Debt Instrument [Line Items]
Borrowing capacity	$ 75,000,000.0	$ 40,000,000.0
Commitment fee percentage		0.50%
Facility fee percentage	0.50%	1.75%
Maximum borrowing capacity	$ 75,000,000.0	$ 40,000,000.0
Covenant, minimum cash and cash equivalents	6,000,000.0	6,000,000.0
Covenant, maximum cash and cash equivalents	11,300,000
Minimum liquidity	10,000,000.0
Maximum liquidity	$ 18,800,000
Debt issuance costs		1,200,000
Revolving Credit Facility \| Credit Agreement Amendment
Debt Instrument [Line Items]
Debt issuance costs			$ 700,000	$ 700,000
Letter of Credit
Debt Instrument [Line Items]
Borrowing capacity		$ 5,000,000.0
Eligible Commissions Receivables, Preceding Three Months \| Revolving Credit Facility
Debt Instrument [Line Items]
Borrowing base percentage			80.00%
Eligible Commissions Receivables, Succeeding Three Months \| Revolving Credit Facility
Debt Instrument [Line Items]
Borrowing base percentage			80.00%
Eligible Commissions Receivables, Succeeding Six Months \| Revolving Credit Facility
Debt Instrument [Line Items]
Borrowing base percentage			50.00%

Revenue (Tables)

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue by Segment

Disaggregation of Revenue – The table below depicts the disaggregation of revenue by product and is consistent with how we evaluate our financial performance (in thousands):


	Three Months Ended March 31,
		2021		2020
Medicare
Medicare Advantage		$	103,525	$	68,347
Medicare Supplement		8,222		15,170
Medicare Part D		1,736		5,661
Total Medicare		113,483		89,178
Individual and Family (1)
Non-Qualified Health Plans		3,367		1,446
Qualified Health Plans		2,100		1,210
Total Individual and Family		5,467		2,656
Ancillary
Short-term		1,756		2,216
Dental		1,728		743
Vision		205		243
Other		35		1,049
Total Ancillary		3,724		4,251
Small Business		3,223		2,971
Commission Bonus		1,155		613
Total Commission Revenue		127,052		99,669
Other Revenue
Sponsorship and Advertising Revenue		5,814		5,890
Other		1,348		849
Total Other Revenue		7,162		6,739
Total Revenue		$	134,214	$	106,408

_____________

(1)We define our individual and family plan offerings as major medical individual and family health insurance plans, which does not include Medicare-related, small business or ancillary plans. Individual and family health insurance plans include both qualified and non-qualified plans. Qualified health plans are individual and family health insurance plans that meet the requirements of the Affordable Care Act and are offered through the government-run health insurance exchange in the relevant jurisdiction. Non-qualified health plans are individual and family health insurance plans that meet the requirements of the Affordable Care Act and are not offered through the exchange in the relevant jurisdiction. Individuals that purchase non-qualified health plans cannot receive a subsidy in connection with the purchase of non-qualified plans.

Commission revenue by segment is presented in the table below (in thousands):


	Three Months Ended March 31,
		2021		2020
Medicare
Commission Revenue from Members Approved During the Period (1)		$	114,678	$	81,125
Net Commission Revenue from Members Approved in Prior Periods (2)		14		8,979
Total Medicare Segment Commission Revenue		$	114,692	$	90,104
Individual, Family and Small Business
Commission Revenue from Members Approved During the Period (1)		$	6,395	$	5,796
Commission Revenue from Renewals of Small Business Members During the Period (3)		2,687		2,396
Net Commission Revenue from Members Approved in Prior Periods (2)		3,278		1,373
Total IFP/SMB Segment Commission Revenue		$	12,360	$	9,565

Total Commission Revenue from Members Approved During the Period (1)		$	121,073	$	86,921
Commission Revenue from Renewals of Small Business Members During the Period (3)		2,687		2,396
Total Net Commission Revenue from Members Approved in Prior Periods (2)(4)		3,292		10,352
Total Commission Revenue		$	127,052	$	99,669

_____________

(1)These amounts include commission bonus revenue.

(2)These amounts reflect our revised estimates of cash collections for certain members approved prior to the relevant reporting period that are recognized as adjustments to revenue within the relevant reporting period. The net adjustment revenue includes both increases in revenue for certain prior period cohorts as well as reductions in revenue for certain prior period cohorts.

(3)Commission revenue from renewals of small business members during the period was previously included in net commission revenue from members approved in prior periods. However, starting in the first quarter of 2021, we enhanced our reporting by separately disclosing commission revenue from renewals of small business members during the period in a separate line item.

(4)The impacts of total net commission revenue from members approved in prior periods were $0.12 and $0.42 per basic share, respectively, or $0.12 and $0.40 per diluted share, respectively, for the three months ended March 31, 2021 and 2020, respectively. The total reductions to revenue from members approved in prior periods were $0.9 million for the three months ended March 31, 2021 and immaterial for the three months ended March 31, 2020. These reductions to revenue primarily related to the Individual, Family and Small Business segment.

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Operating activities:
Net income (loss)	$ (800)	$ 3,452
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	1,138	823
Amortization of internally developed software	2,806	1,501
Amortization of intangible assets	176	547
Stock-based compensation expense	11,402	8,714
Deferred income taxes	(570)	(2,141)
Other non-cash items	420	223
Changes in operating assets and liabilities:
Accounts receivable	(48)	1,664
Contract assets – commissions receivable	50,635	26,873
Prepaid expenses and other assets	4,225	(159)
Accounts payable	(25,826)	(16,279)
Accrued compensation and benefits	4,088	(11,104)
Accrued marketing expenses	(6,712)	(7,329)
Deferred revenue	570	113
Accrued expenses and other liabilities	1,305	2,009
Net cash provided by operating activities	42,809	8,907
Investing activities:
Capitalized internal-use software and website development costs	(3,242)	(3,564)
Purchases of property and equipment and other assets	(1,899)	(2,508)
Purchases of marketable securities	(7,771)	(58,064)
Proceeds from redemption and maturities of marketable securities	23,409	0
Net cash provided by (used in) investing activities	10,497	(64,136)
Financing activities:
Proceeds from issuance of common stock, net of issuance costs	0	228,024
Net proceeds from exercise of common stock options	285	1,091
Repurchase of shares to satisfy employee tax withholding obligations	(5,037)	(4,375)
Acquisition-related contingent payments	0	(8,751)
Principal payments in connection with leases	(38)	(58)
Net cash provided by (used in) financing activities	(4,790)	215,931
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(25)	(2)
Net increase in cash, cash equivalents and restricted cash	48,491	160,700
Cash, cash equivalents and restricted cash at beginning of period	47,113	26,820
Cash, cash equivalents and restricted cash at end of period	$ 95,604	$ 187,520

Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2021	Dec. 31, 2020
Equity, Class of Treasury Stock [Line Items]
Sale of stock, shares issued (in shares)	2,100,000
Sale of stock, price per share (in dollars per share)	$ 115.00
Net proceeds from sale of stock	$ 228.0
Number of shares repurchased under share repurchase plan (in shares)		0
Treasury shares that were previously surrendered by employees to satisfy tax withholdings (in shares)		1,200,000
Treasury stock (in shares)		11,900,000	11,800,000
Over-Allotment Option
Equity, Class of Treasury Stock [Line Items]
Sale of stock, shares issued (in shares)	300,000
Previous share repurchase programs
Equity, Class of Treasury Stock [Line Items]
Number of shares repurchased under share repurchase plan (in shares)		10,700,000

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenue:
Total revenue	$ 134,214	$ 106,408
Operating costs and expenses:
Cost of revenue	996	1,138
Marketing and advertising	50,874	37,764
Customer care and enrollment	34,162	30,535
Technology and content	23,163	15,740
General and administrative	23,054	19,653
Amortization of intangible assets	176	547
Restructuring charges	2,431	0
Total operating costs and expenses	134,856	105,377
Income (loss) from operations	(642)	1,031
Other income, net	150	373
Income (loss) before provision for (benefit from) income taxes	(492)	1,404
Provision for (benefit from) income taxes	308	(2,048)
Net income (loss)	$ (800)	$ 3,452
Net income (loss) per share:
Basic (in dollars per share)	$ (0.03)	$ 0.14
Diluted (in dollars per share)	$ (0.03)	$ 0.13
Weighted-average number of shares used in per share amounts:
Basic (in shares)	26,620	24,719
Diluted (in shares)	26,620	26,179
Comprehensive income (loss):
Net income (loss)	$ (800)	$ 3,452
Unrealized holding gain (loss) for available for sales debt securities, net of tax	(16)	25
Foreign currency translation adjustment	(17)	(31)
Comprehensive income (loss)	(833)	3,446
Commission
Revenue:
Total revenue	127,052	99,669
Other
Revenue:
Total revenue	$ 7,162	$ 6,739

Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2021	Apr. 23, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
Document Transition Report	false
Entity File Number	001-33071
Entity Registrant Name	EHEALTH, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	56-2357876
Entity Address, Address Line One	2625 AUGUSTINE DRIVE, SECOND FLOOR
Entity Address, City or Town	SANTA CLARA
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95054
City Area Code	650
Local Phone Number	584-2700
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	EHTH
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		26,091,024
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001333493
Current Fiscal Year End Date	--12-31