eHealth, Inc. (NASDAQ:EHTH) Q3 2019 Earnings Conference Call - Final Transcript

Oct 24, 2019 • 05:00 pm ET


eHealth, Inc. (NASDAQ:EHTH) Q3 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the Q3 2019 eHealth, Inc. Earnings Conference Call. [Operator Instructions]

I would now like to hand the conference over to your speaker, Kate Sidorovich. Please go ahead, ma'am.

Kate Sidorovich

Thank you. Good afternoon and thank you all for joining us today either by phone or by webcast for our discussion about eHealth, Inc.'s third quarter 2019 financial results. On the call this afternoon, we will have Scott Flanders, eHealth's Chief Executive Officer; and Derek Yung, Chief Financial Officer. After management completes its remarks, we will open the line for questions. As a reminder, today's conference call is being recorded and webcast from the IR section of our website. A replay of the call will be available on our website following the call.

We will be making forward-looking statements on this call which includes statements regarding future investments, beliefs and expectations, including statements relating to our expectations regarding our Medicare business, including Medicare enrollment growth, consumer demand, our competitive advantage, our market share, growth in online enrollments, and our performance this annual enrollment period; our investments in the Medicare business, including investments in telesales capacity, online demand generation channels, sales and marking and our technology platform; our expectations regarding the profitability of our business, seasonality, lifetime values, policy durations, retention rates, conversion rate and cost of acquisition; our views regarding the Medicare environment and current political environment and our outlook for the fourth quarter and full year 2019 guidance, including our assumptions and our ability to deliver on our guidance.

Forward-looking statements on this call represent eHealth views as of today. You should not rely on these statements as representing our views in the future. We undertake no obligation or duty to update information contained in forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in our forward-looking statements we describe these and other risks and uncertainties in our annual report on form 10-K, and quarterly reports on form 10-Q filed with the Securities and Exchange Commission, which you may access through the SEC website or from the Investor Relations section of our website.

We will be presenting certain financial measures on this call that are considered non-GAAP on the SEC Regulation G. For a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure, please refer to the information included in our earnings press release issued today and in our SEC filings, which can be found in the About Us section of our corporate website under the heading Investor Relations.

And at this point, I will turn the call over to Scott Flanders.

Scott N. Flanders

Thank you, Kate, and welcome, everyone. Strong momentum in our business continued with another quarter of meaningful outperformance against our expectations. Third quarter revenue of $69.9 million grew 72% year-over-year, driven by a 70% increase in approved Medicare members, and tail