eHealth Reports 18% Revenue Growth to $532.4 Million for Fiscal Year 2024

eHealth, Inc. reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with total revenue reaching $532.4 million, a rise of 18% from $452.9 million in 2023. The company's commission revenue, which constitutes the majority of its income, increased by 14% to $461.6 million, driven primarily by a 20% growth in the Medicare segment. This growth was attributed to a 26% increase in approved Medicare Advantage members, improved lifetime value (LTV) of commissions, and a strategic focus on enhancing operational efficiencies. The company also saw a notable increase in its other revenue, which surged by 45% to $70.8 million, largely due to the expansion of fee-based business process outsourcing (BPO) arrangements.

In terms of profitability, eHealth reported a net income of $10.1 million for 2024, a significant turnaround from a net loss of $28.2 million in the previous year. This improvement was supported by a gross profit of $208.5 million, reflecting a 31% increase compared to the prior year. The company’s operational costs, while increasing in some areas, were managed effectively, leading to a reduction in total operating costs as a percentage of revenue. Marketing and advertising expenses rose by 11% to $190.8 million, but the overall cost structure was optimized, contributing to the improved profitability.

Operationally, eHealth experienced a 13% increase in total approved members, reaching 485,456 by the end of 2024. The Medicare segment accounted for a substantial portion of this growth, with approved members increasing by 21%. However, the Employer and Individual (E&I) segment faced challenges, with a 32% decline in revenue primarily due to lower net adjustment revenue and a decrease in approved members across individual and family plans. The company has been focusing on enhancing its telesales capabilities and improving the onboarding and training of benefit advisors, which has contributed to better conversion rates and member retention.

Strategically, eHealth has made significant investments in its technology and marketing efforts, including a rebranding initiative launched in late 2023. This rebranding aimed to strengthen the company's market position as a trusted advisor in the health insurance space. The company also expanded its marketing channels and improved its omnichannel platform to enhance user experience. Looking ahead, eHealth plans to continue diversifying its revenue streams, particularly in the Medicare Supplement and ancillary product markets, while also pursuing growth in its E&I segment.

The company’s outlook remains cautiously optimistic, with expectations of continued growth in the Medicare segment despite potential market disruptions. However, eHealth acknowledges the competitive landscape and regulatory challenges that could impact its operations. The company is committed to leveraging its technology and consumer engagement strategies to maintain its competitive edge and drive future growth.