eHealth stock rises 19% after Q1 earnings beat; reaffirms FY22 outlook

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eHealth (NASDAQ:EHTH) stock rose May 4 after the company’s Q1 results a day ago beat analysts’ estimates.

Q1 non-GAAP net loss per share was -$0.91, compared to non-GAAP net income per share of $0.36 in Q1 2021.

The company said the this was mainly due to a decrease in total revenue and a 12% increase in non-GAAP operating expense primarily as a result of our enrollment quality initiatives.

“We delivered first quarter results with revenue in-line and adjusted EBITDA ahead of our expectations driven by the early impact of cost transformation initiatives. As part of our commitment to returning the company to profitable growth, we are currently on track to generate approximately $60 million in annualized cost savings this year. In line with our strategic plan, we are slowing down our conventional telephonic enrollment growth while continuing to invest for expansion and market share capture in our online business,” said CEO and Director Fran Soistman.

Total revenue declined -22% Y/Y to $105.25M. Adjusted EBITDA was -$24.83M, compared to +$17.31M in Q1 2021.

Q1 cash flow from operations of $47.1M.

The company said estimated Medicare Advantage membership and total Medicare membership as of March 31, 2022 grew 9% and 4%, respectively, compared to March 31, 2021.

As of March 31, the company had $232M in cash, cash equivalents and marketable securities.

Outlook: eHealth (EHTH) reaffirmed its FY22 guidance.

The company expects total revenue to be in the range of $448.0M to $470.0M. Consensus Revenue Estimate for 2022 is $458.12M.

GAAP net loss is expected to be in the range of $106.0M to $83.0M, while adjusted EBITDA is expected to be in the range of -$64M to -$37M.

eHealth (EHTH) noted that total cash outflow, excluding the impact of its $70M term loan and associated costs, is expected to be in the range of $140M to $120M.

EHTH +19.24 to $9.89 May 4 market open