EHealth : Q1 2024 eHealth, Inc. Earnings Conference Call

Safe Harbor Statement

Forward-Looking Statements

This presentation includes forward-looking statements within the meaning of the federal securities laws. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this presentation include, but are not limited to, the following: Medicare broker industry trends, our estimates regarding Medicare enrollment growth; our estimates regarding commissions receivable collection; our estimates of constrained lifetime value of commissions per approved member; our 2024 operational priorities, including our business and growth strategy, local market strategy, branding, and member loyalty and retention strategy; our 2024 annual guidance for total revenue, GAAP net loss, adjusted EBITDA and operating cash flow; the expected impact of positive net adjustment revenue on our 2024 annual guidance; our operational initiatives, including our Agency and Amplify fulfillment models and new platform features, and the expected impact of these initiatives on our business and financial results; our investments in technology and operational initiatives and expected impact of these investments on our business; and other statements regarding our future operations, financial condition, prospects and business strategies. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include those set forth in our filings with the Securities and Exchange Commission, including our latest Form 10-Q and 10-K. The forward-looking statements in this presentation are based on information available to us as of today, and we disclaim any obligation to update any forward-looking statements, except as required by law.

Non-GAAP Information

This presentation includes both GAAP and non-GAAP financial measures. The presentation of non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures included in this presentation to the most directly comparable GAAP financial measures is available in the Appendix to this presentation.

Management uses both GAAP and non-GAAP information in evaluating and operating its business internally and as such has determined that it is important to provide this information to investors.

Q1 2024 Earnings Highlights

eHealth delivered strong first quarter performance underpinned by revenue growth and growth in approved members. We are on track to reach our financial goals for FY 2024.

1. • Q1 2024 total revenue of $93.0 million increased 26% compared to Q1 2023 total revenue of $73.7 million.
   • Q1 2024 Medicare Advantage approved members increased 9% to 65,750 compared to Q1 2023 Medicare Advantage approved members of 60,451.
   • Q1 2024 GAAP net loss of $17.0 million improved $2.9 million year-over-year.Q1 2024 adjusted EBITDA(1) of $(1.7) million improved $11.0 million compared to $(12.7) million in Q1 2023.
   • Q1 2024 Medicare Advantage LTV increased 6% to $952 from $901 in Q1 2023, driven primarily by favorable carrier and contract mix.
   • Operating cash flow for the trailing twelve months ended March 31, 2024, was $3.3 million.
2. Adjusted EBITDA is calculated by excluding dividends for preferred stock and change in preferred stock redemption value (together the "impact from preferred stock"), provision for (benefit from) income taxes, depreciation and amortization, stock- based compensation expense, amortization of intangible assets, impairment, restructuring and other charges, interest expense, other income (expense), net, and other non-recurring charges from GAAP net income (loss) attributable to common stockholders. Other non-recurring charges to GAAP net income (loss) attributable to common stockholders may include transaction expenses in connection with capital raising transactions (whether debt, equity or equity-linked) and acquisitions, whether or not consummated, purchase price adjustments and the cumulative effect of a change in accounting principles.

Trailing 12-Month Profitability and Cash Flows

Following the implementation of our Business Transformation, we have seen steady improvement in profitability and cash flow performance on a TTM basis.

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