eHealth (EHTH) Sidoti Micro-Cap Virtual Conference summary

Company Transformation and Strategic Direction

• Underwent a major transformation since April 2022, focusing on cost structure, marketing, sales process, technology, and company culture, resulting in over $100 million removed from cost structure and ongoing targeted reductions.

• Reengineered marketing and sales, introduced new leadership, and improved operational fundamentals, including new training and omni-channel tools that boosted tele conversion rates.

• Launched the Amplify business to diversify revenue by acting as an extension of health plan sales operations, deepening partnerships with fee-based, carrier-dedicated sales.

• Hired advisors to improve capital structure, with updates expected later in the year.

• Senior leadership team with experience from major healthcare and tech firms guides strategy, emphasizing customer centricity and business diversification.

Market Positioning and Growth Opportunities

• Pivoted from individual under-65 market to focus on Medicare Advantage, now serving a growing segment of 32 million out of 65 million eligibles, with Medicare Advantage penetration expected to reach 60% by decade's end and eligible population growing to 80 million.

• Positioned to lead in over-65 and under-65 markets, with significant share opportunity in both and market share under 4% in core segments.

• Expanding into Medicare Supplement, individual, small group, Employer & Individual, and ICHRA segments.

• Offers omni-channel capabilities: telesales, online assisted/unassisted platforms, and strategic partnerships, with over 50 health plan APIs.

• Marketplace signups grew 30% YoY; digital solutions in high demand among younger demographics.

Technology, Brand, and Customer Experience

• Invested in live chat, co-browsing, one-way video (Live Advise), and generative AI in recommendation engine to enhance customer experience and relationship building.

• Technology platform offers end-to-end online enrollment, AI-driven quality control, and omni-channel engagement, driving higher online conversions.

• Launched first major branding campaign, positioning as a Medicare matchmaker, resulting in a 158% YoY increase in branded search, 5x site visits during AEP, and doubled aided brand awareness in 10 weeks.

• Focus on retention and lifetime value, with over $200 million in adjusted revenue recognized under ASC 606 and comprehensive retention and loyalty programs increasing lifetime values.

• Differentiates with robust end-to-end online platform, superior customer experience, and advanced tools and training for advisors.