eHealth spikes over 24% after reporting preliminary Q4 and FY22 revenue

Shares of health insurance market place operator eHealth are up over 24% or $1.32 per share after providing Q4 and full year or FY22 revenue views that were higher than prior views. Revenue for the fourth quarter of is expected to be in the range of $190M to $200M, consensus $175.24M. For the year, eHealth said revenue will be between $395M and $405M compared to prior guidance of $375M to $395MM. with consensus estimates $385.56M. Adjusted EBITDA for the fourth quarter of 2022 is expected to be in the range of $40 to $50M. Adjusted EBITDA for the year ended December 31, is expected to be in the range of $(50) to $(40)M as compared to the company’s guidance of $(73) to $(45)M ."eHealth’s fourth quarter results reflect the transformational initiatives that we implemented in 2022 across all key areas of the company. During the fourth quarter Annual Enrollment Period, our company helped thousands of Americans shop for and enroll in healthcare plans that we believe represent an optimal match for them based on their personal preferences, healthcare needs, and budgets. We were able to do so while exceeding our cost reduction goals and significantly improving the efficiency of our sales and marketing organizations by emphasizing our most profitable marketing channels and enhancing agent productivity," said Fran Soistman, chief executive officer of eHealth. "The Medicare market remains strong, reflecting a robust selection of quality plans, significant customer demand, and a more rational approach to enrollment growth by our peers that emphasizes profitability over growth-at-all-costs. eHealth ended 2022 with a strong cash position, and we expect to deliver further meaningful improvements to our operational and financial performance in 2023. We look forward to providing full fourth quarter and fiscal year 2022 results as well as our 2023 guidance on our upcoming fourth quarter earnings call."