Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 15, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-33071 | ||
Entity Registrant Name | EHEALTH, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 56-2357876 | ||
Entity Address, Address Line One | 2625 AUGUSTINE DRIVE, SUITE 150 | ||
Entity Address, City or Town | SANTA CLARA | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 95054 | ||
City Area Code | 650 | ||
Local Phone Number | 210-3150 | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Trading Symbol | EHTH | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 252 | ||
Entity Common Stock, Shares Outstanding | 27,613,675 | ||
Documents Incorporated by Reference | Portions of the registrant’s Definitive Proxy Statement for the 2023 Annual Meeting of Stockholders, which is expected to be filed within 120 days after the Company’s fiscal year ended December 31, 2022, are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent stated herein. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001333493 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | San Mateo, California |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 144,401 | $ 81,926 |
Short-term marketable securities | 0 | 41,306 |
Accounts receivable | 2,633 | 5,750 |
Contract assets – commissions receivable – current | 242,749 | 254,821 |
Prepaid expenses and other current assets | 11,301 | 23,784 |
Total current assets | 401,084 | 407,587 |
Contract assets – commissions receivable – non-current | 641,555 | 653,441 |
Property and equipment, net | 5,501 | 12,105 |
Operating lease right-of-use assets | 26,516 | 37,373 |
Restricted cash | 3,239 | 3,239 |
Other assets | 34,716 | 35,547 |
Total assets | 1,112,611 | 1,149,292 |
Current liabilities: | ||
Accounts payable | 6,732 | 13,750 |
Accrued compensation and benefits | 20,690 | 16,458 |
Accrued marketing expenses | 23,770 | 36,384 |
Lease liabilities – current | 6,486 | 5,543 |
Other current liabilities | 2,887 | 3,330 |
Total current liabilities | 60,565 | 75,465 |
Long-term debt | 66,129 | 0 |
Deferred income taxes – non-current | 32,359 | 50,796 |
Lease liabilities – non-current | 34,187 | 35,826 |
Other non-current liabilities | 5,132 | 5,094 |
Total liabilities | 198,372 | 167,181 |
Commitments and contingencies (Note 8) | ||
Convertible preferred stock, par value $0.001 per share; 2,250 issued and outstanding as of December 31,2022 and 2021 | 263,284 | 232,592 |
Stockholders’ equity: | ||
Preferred stock, par value $0.001 per share, other than convertible preferred stock; 7,750 authorized; none issued and outstanding as of December 31, 2022 and 2021 | 0 | 0 |
Common stock, par value $0.001 per share; 100,000 authorized; 39,977 and 38,704 issued as of December 31, 2022 and 2021, respectively; 27,562 and 26,688 outstanding as of December 31, 2022 and 2021, respectively | 40 | 39 |
Additional paid-in capital | 777,187 | 755,875 |
Treasury stock, at cost: 12,415 and 12,016 shares as of December 31, 2022 and 2021, respectively | (199,998) | (199,998) |
Retained earnings | 73,799 | 193,213 |
Accumulated other comprehensive income (loss) | (73) | 390 |
Total stockholders’ equity | 650,955 | 749,519 |
Total liabilities, convertible preferred stock, and stockholders’ equity | $ 1,112,611 | $ 1,149,292 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Convertible preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Convertible preferred stock, shares issued (in shares) | 2,250,000 | |
Convertible preferred stock, shares outstanding (in shares) | 2,250,000 | |
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 7,750,000 | 7,750,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 39,977,000 | 38,704,000 |
Common stock, shares outstanding (in shares) | 27,562,000 | 26,688,000 |
Treasury stock (in shares) | 12,415,000 | 12,016,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | |||
Total revenue | $ 405,356,000 | $ 538,199,000 | $ 582,774,000 |
Operating costs and expenses | |||
Cost of revenue | 1,647,000 | 1,992,000 | 4,083,000 |
Marketing and advertising | 195,088,000 | 271,300,000 | 209,340,000 |
Customer care and enrollment | 141,099,000 | 179,295,000 | 172,895,000 |
Technology and content | 78,809,000 | 83,800,000 | 65,188,000 |
General and administrative | 71,810,000 | 75,699,000 | 76,452,000 |
Amortization of intangible assets | 0 | 536,000 | 1,493,000 |
Impairment, restructuring and other charges | 19,616,000 | 51,222,000 | 0 |
Total operating costs and expenses | 508,069,000 | 663,844,000 | 529,451,000 |
Income (loss) from operations | (102,713,000) | (125,645,000) | 53,323,000 |
Other income (expense), net | (3,676,000) | 755,000 | 666,000 |
Income (loss) before income taxes | (106,389,000) | (124,890,000) | 53,989,000 |
Provision for (benefit from) income taxes | (17,667,000) | (20,515,000) | 8,539,000 |
Net income (loss) | (88,722,000) | (104,375,000) | 45,450,000 |
Paid-in-kind dividends for preferred stock | (19,357,000) | (12,206,000) | 0 |
Change in preferred stock redemption value | (11,335,000) | (6,361,000) | 0 |
Net income (loss) attributable to common stockholders | $ (119,414,000) | $ (122,942,000) | $ 45,450,000 |
Net income (loss) per share attributable to common stockholders: | |||
Basic (in usd per share) | $ (4.36) | $ (4.59) | $ 1.75 |
Diluted (in usd per share) | $ (4.36) | $ (4.59) | $ 1.68 |
Weighted-average number of shares used in per share amounts: | |||
Basic (in shares) | 27,359 | 26,781 | 26,025 |
Diluted (in shares) | 27,359 | 26,781 | 27,014 |
Comprehensive income (loss): | |||
Unrealized holding gain (loss) on available for sale debt securities, net of tax | $ (29,000) | $ (49,000) | $ 28,000 |
Foreign currency translation adjustments | (434,000) | 89,000 | 206,000 |
Comprehensive income (loss) | (89,185,000) | (104,335,000) | 45,684,000 |
Commission | |||
Revenue | |||
Total revenue | 361,246,000 | 493,119,000 | 508,189,000 |
Other | |||
Revenue | |||
Total revenue | $ 44,110,000 | $ 45,080,000 | $ 74,585,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative effect from the adoption of ASU 2016-13 | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Retained Earnings Cumulative effect from the adoption of ASU 2016-13 | Accumulated Other Comprehensive Income (Loss) |
Beginning balance, shares (in shares) at Dec. 31, 2019 | 34,752 | |||||||
Beginning balance, shares (in shares) at Dec. 31, 2019 | 11,616 | |||||||
Beginning Balance at Dec. 31, 2019 | $ 527,164 | $ (1,147) | $ 35 | $ 455,159 | $ (199,998) | $ 271,852 | $ (1,147) | $ 116 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock in connection with equity incentive plans (in shares) | 638 | |||||||
Issuance of common stock in connection with equity incentive plans | 1,941 | $ 1 | 1,940 | |||||
Repurchase of shares to satisfy employee tax withholding obligations | (19,808) | (19,808) | ||||||
Repurchase of shares to satisfy employee tax withholding obligations (in shares) | 215 | |||||||
Stock issued in equity offering (in shares) | 2,070 | |||||||
Shares issued in equity offering | 228,024 | $ 2 | 228,022 | |||||
Settlement of earnout liability (in shares) | 295 | |||||||
Settlement of earnout liability | 28,521 | 28,521 | ||||||
Stock-based compensation | 27,179 | 27,179 | ||||||
Other comprehensive income, net of tax | 234 | 234 | ||||||
Net income (loss) | 45,450 | 45,450 | ||||||
Ending balance, shares (in shares) at Dec. 31, 2020 | 37,755 | |||||||
Ending balance, shares (in shares) at Dec. 31, 2020 | 11,831 | |||||||
Ending Balance at Dec. 31, 2020 | 837,558 | $ 38 | 721,013 | $ (199,998) | 316,155 | 350 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock in connection with equity incentive plans (in shares) | 849 | |||||||
Issuance of common stock in connection with equity incentive plans | 4,905 | $ 1 | 4,904 | |||||
Repurchase of shares to satisfy employee tax withholding obligations | (9,333) | (9,333) | ||||||
Repurchase of shares to satisfy employee tax withholding obligations (in shares) | 185 | |||||||
Paid-in-kind dividend and accretion related to convertible preferred stock | (18,567) | (18,567) | ||||||
Issuance of common stock for employee stock purchase program (in shares) | 100 | |||||||
Issuance of common stock for employee stock purchase program | 3,813 | 3,813 | ||||||
Stock-based compensation | 35,478 | 35,478 | ||||||
Other comprehensive income, net of tax | 40 | 40 | ||||||
Net income (loss) | $ (104,375) | (104,375) | ||||||
Ending balance, shares (in shares) at Dec. 31, 2021 | 26,688 | 38,704 | ||||||
Ending balance, shares (in shares) at Dec. 31, 2021 | 12,016 | 12,016 | ||||||
Ending Balance at Dec. 31, 2021 | $ 749,519 | $ 39 | 755,875 | $ (199,998) | 193,213 | 390 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock in connection with equity incentive plans (in shares) | 1,095 | |||||||
Issuance of common stock in connection with equity incentive plans | 1,055 | $ 1 | 1,054 | |||||
Repurchase of shares to satisfy employee tax withholding obligations | (3,102) | (3,102) | ||||||
Repurchase of shares to satisfy employee tax withholding obligations (in shares) | 399 | |||||||
Paid-in-kind dividend and accretion related to convertible preferred stock | (30,692) | (30,692) | ||||||
Issuance of common stock for employee stock purchase program (in shares) | 178 | |||||||
Issuance of common stock for employee stock purchase program | 1,159 | 1,159 | ||||||
Stock-based compensation | 22,201 | 22,201 | ||||||
Other comprehensive income, net of tax | (463) | (463) | ||||||
Net income (loss) | $ (88,722) | (88,722) | ||||||
Ending balance, shares (in shares) at Dec. 31, 2022 | 27,562 | 39,977 | ||||||
Ending balance, shares (in shares) at Dec. 31, 2022 | 12,415 | 12,415 | ||||||
Ending Balance at Dec. 31, 2022 | $ 650,955 | $ 40 | $ 777,187 | $ (199,998) | $ 73,799 | $ (73) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities: | |||
Net income (loss) | $ (88,722,000) | $ (104,375,000) | $ 45,450,000 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||
Depreciation and amortization | 3,845,000 | 5,430,000 | 3,694,000 |
Amortization of internally developed software | 17,263,000 | 12,901,000 | 7,756,000 |
Amortization of intangible assets | 0 | 536,000 | 1,493,000 |
Stock-based compensation expense | 20,316,000 | 32,857,000 | 25,172,000 |
Deferred income taxes | (18,436,000) | (21,522,000) | 8,817,000 |
Impairment charges | 12,102,000 | 46,344,000 | 0 |
Other non-cash items | 2,084,000 | 1,466,000 | 1,091,000 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 3,118,000 | (3,952,000) | 533,000 |
Contract assets – commissions receivable | 23,760,000 | (116,030,000) | (205,209,000) |
Prepaid expenses and other assets | 13,473,000 | (7,945,000) | (6,180,000) |
Accounts payable | (7,029,000) | (23,052,000) | 12,294,000 |
Accrued compensation and benefits | 4,232,000 | (4,083,000) | (9,036,000) |
Accrued marketing expenses | (12,614,000) | 18,596,000 | 5,747,000 |
Deferred revenue | 175,000 | 20,000 | (2,262,000) |
Accrued expenses and other liabilities | (436,000) | 187,000 | 2,780,000 |
Net cash used in operating activities | (26,869,000) | (162,622,000) | (107,860,000) |
Investing activities: | |||
Capitalized internal-use software and website development costs | (15,292,000) | (16,992,000) | (16,005,000) |
Purchases of property and equipment and other assets | (214,000) | (3,865,000) | (7,751,000) |
Purchases of marketable securities | (8,402,000) | (103,058,000) | (180,505,000) |
Proceeds from redemption and maturities of marketable securities | 49,769,000 | 111,284,000 | 130,978,000 |
Net cash provided by (used in) investing activities | 25,861,000 | (12,631,000) | (73,283,000) |
Financing activities: | |||
Proceeds from issuance of preferred stock, net of issuance costs | 0 | 214,025,000 | 0 |
Proceeds from issuance of common stock, net of issuance costs | 0 | 0 | 228,024,000 |
Net proceeds from debt financing | 64,862,000 | 0 | 0 |
Net proceeds from exercise of common stock options and employee stock purchases | 2,214,000 | 8,699,000 | 1,941,000 |
Repurchase of shares to satisfy employee tax withholding obligations | (3,102,000) | (9,333,000) | (19,808,000) |
Acquisition-related contingent payments | 0 | 0 | (8,751,000) |
Principal payments in connection with leases | (136,000) | (150,000) | (157,000) |
Net cash provided by financing activities | 63,838,000 | 213,241,000 | 201,249,000 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (355,000) | 64,000 | 187,000 |
Net increase in cash, cash equivalents and restricted cash | 62,475,000 | 38,052,000 | 20,293,000 |
Cash, cash equivalents and restricted cash at beginning of period | 85,165,000 | 47,113,000 | 26,820,000 |
Cash, cash equivalents and restricted cash at end of period | 147,640,000 | 85,165,000 | 47,113,000 |
Cash paid for interest | 5,031,000 | 0 | 0 |
Cash refunds from (payments for) income taxes, net | $ (529,000) | ||
Cash refunds from (payments for) income taxes, net | $ 103,000 | $ 882,000 |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Business and Significant Accounting Policies | Summary of Business and Significant Accounting Policies Description of Business – eHealth, Inc. (the “Company,” “eHealth,” “we” or “us”) is a leading private online health insurance marketplace with a technology and service platform that provides consumer engagement, education and health insurance enrollment solutions. Our mission is to expertly guide consumers through their health insurance enrollment and related options, when, where and how they prefer. Our platform leverages technology to solve a critical problem in a large and growing market by aiding consumers in what has traditionally been a complex, confusing, and opaque health insurance purchasing process. Our omnichannel consumer engagement platform differentiates our offering from other brokers and enables consumers to use our services online, by telephone with a licensed insurance agent, or through a hybrid online assisted interaction that includes live agent chat and co-browsing capabilities. We have created a consumer-centric marketplace that offers consumers a broad choice of insurance products that includes thousands of Medicare Advantage, Medicare Supplement, Medicare Part D prescription drug, individual and family, small business and other ancillary health insurance products from approximately 200 health insurance carriers across all fifty states and the District of Columbia. Our plan recommendation tool curates this broad plan selection by analyzing customer health-related information against plan data for insurance coverage fit. This tool is supported by a unified data platform and is available to our ecommerce customers and our licensed agents. We strive to be the most trusted partner to the consumer in their life's journey through the health insurance market. Basis of Presentation – Our consolidated financial statements include the accounts of eHealth, Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). Certain prior period amounts have been reclassified to conform with our current period presentation. Subsequent to the issuance of our consolidated financial statements for the year ended December 31, 2020, we identified certain errors, including a $3.0 million under-recognition of stock-based compensation expense and a $1.5 million over-recognition of licensing costs for the year ended December 31, 2020. We adjusted for these items in the first quarter of 2021 and the adjustments increased our net loss by approximately $1.5 million, or $0.06 per basic and diluted share, in our Condensed Consolidated Statement of Comprehensive Loss for the three months ended March 31, 2021. These items also increased our net loss by approximately $1.5 million, or $0.05 per basic and diluted share, on our Consolidated Statement of Comprehensive Loss for the year ended December 31, 2021. We evaluated the effects of these out-of-period adjustments, both qualitatively and quantitatively, and concluded that the errors and the correction thereof were immaterial both individually and in the aggregate to the current reporting period and the periods in which they originated, including quarterly reporting. Operating Segments – We report segment information based on how our chief executive officer, who is our chief operating decision maker (“CODM”), regularly reviews our operating results, allocates resources and makes decisions regarding our business operations. The performance measures of our segments include total revenue and profit (loss). Our business structure is comprised of two operating segments: • Medicare; and • Individual, Family and Small Business The Medicare segment consists primarily of commissions earned from our sale of Medicare-related health insurance plans, including Medicare Advantage, Medicare Supplement and Medicare Part D prescription drug plans, and to a lesser extent, ancillary products sold to our Medicare-eligible customers, including but not limited to, dental and vision insurance, as well as our advertising program that allows Medicare-related carriers to purchase advertising on a separate website developed, hosted and maintained by us or pursuant to which we perform other services as marketing and our delivery and sale to third parties of Medicare-related health insurance leads generated by our ecommerce platforms and our marketing activities. The Individual, Family and Small Business segment consists primarily of commissions earned from our sale of individual and family and small business health insurance plans and ancillary products sold to our non-Medicare-eligible customers, including but not limited to, dental, vision, short term disability and long term disability insurance. To a lesser extent, the Individual, Family and Small Business segment includes amounts earned from our online sponsorship program that allows carriers to purchase advertising space in specific markets in a sponsorship area on our website, our licensing to third parties the use of our health insurance ecommerce technology and our delivery and sale to third parties of individual and family health insurance leads generated by our ecommerce platforms and our marketing activities. Marketing and advertising, customer care and enrollment, technology and content and general and administrative operating expenses that are directly attributable to a segment are reported within the applicable segment. Indirect marketing and advertising, customer care and enrollment and technology and content operating expenses are allocated to each segment based on usage. Other indirect general and administrative operating expenses are managed in a corporate shared services environment and, since they are not the responsibility of segment operating management, are not allocated to the two operating segments and are presented as a reconciling item to our consolidated financial results. Segment profit is calculated as total revenue for the applicable segment less direct and allocated marketing and advertising, customer care and enrollment, technology and content and general and administrative operating expenses, excluding stock-based compensation expense, depreciation and amortization expense, amortization of intangible assets and impairment, restructuring and other charges. Use of Estimates – The preparation of consolidated financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. On an ongoing basis, we evaluate our estimates, including those related to, but not limited to, the useful lives of intangible assets, fair value of investments, recoverability of intangible assets, the commissions we expect to collect for each approved member cohort, valuation allowance for deferred income taxes, provision for income taxes and the assumptions used in determining stock-based compensation. We base our estimates of the carrying value of certain assets and liabilities on historical experience and on various other assumptions that we believe to be reasonable. Actual results may differ from these estimates. Cash and Cash Equivalents – Our cash and cash equivalents were held in cash depository accounts with major financial institutions or invested in high quality, short-term liquid investments having original maturities of 90 days or less from the date of purchase. Cash and cash equivalents are stated at fair value. The Company's restricted cash balances are not material and are primarily used to collateralize letters of credit related to certain lease commitments. Property and Equipment – Property and equipment are stated at cost, less accumulated depreciation and amortization. Finance lease amortization expenses are included in depreciation expense in our Consolidated Statements of Comprehensive Income (Loss). Maintenance and minor replacements are expensed as incurred. Depreciation and amortization expenses are computed using the straight-line method based on estimated useful lives as follows: Computer equipment and software 3 to 5 years Office equipment and furniture 5 years Leasehold improvements* 5 to 10 years _______ * Lesser of useful life or related lease term See Note 3 – Supplemental Financial Statement Information of the Notes to Consolidated Financial Statements for additional information regarding our property and equipment. Goodwill and Intangible Assets – Goodwill represents the excess of the consideration paid over the estimated fair value of assets acquired and liabilities assumed in a business combination. We test our goodwill for impairment on an annual basis in the fourth quarter of each year or whenever events or changes in circumstances indicate that the asset may be impaired. Factors that we consider in deciding when to perform an impairment test include significant negative industry or economic trends or significant changes or planned changes in our use of the intangible assets. Our goodwill is allocated among our two segments, (1) Medicare and (2) Individual, Family and Small Business. All of our goodwill resulting from our prior business combinations was allocated to the Medicare segment. Goodwill and intangible assets are considered non-financial assets and therefore, subsequent to their initial recognition are not revalued at fair value each reporting period unless an impairment charge is recognized. As of December 31, 2021, we performed a goodwill impairment assessment, which included both qualitative and quantitative assessments. Our assessment included a comparison of carrying value to an estimated fair value using a market approach based on our market capitalization. Based on this assessment, we concluded the fair value of our Medicare segment was below the carrying value primarily due to the change in our market valuation at the time and financial performance and recorded a $40.2 million impairment of our goodwill, which was recognized in the "Impairment, restructuring and other charges" line in the Consolidated Statements of Comprehensive Income (Loss). As a result of this impairment, we had no goodwill balance on our Consolidated Balance Sheets at either December 31, 2021 and 2022. There was no goodwill impairment identified for the year ended December 31, 2020. We must make subjective judgments in determining the independent cash flows that can be related to specific asset groupings. In addition, we must make subjective judgments regarding the remaining useful lives of assets with finite useful lives. When we determine that the useful life of an asset is shorter than we had originally estimated, we accelerate the rate of amortization over the assets’ new, remaining useful life. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate a potential reduction in their fair values below their respective carrying amounts. Intangible assets with finite useful lives, which include purchased technology, pharmacy and customer relationships, trade names, and certain trademarks, are amortized over their estimated useful lives. See Note 3 – Supplemental Financial Statement Information of the Notes to Consolidated Financial Statements for additional information regarding our intangible assets and related impairment. Other Long-Lived Assets – We evaluate other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. Revenue Recognition – We account for revenue under ASC 606 – Revenue from Contracts with Customers . Our revenue consists of commission revenue and other revenue. The core principle of ASC 606 is to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services. Accordingly, we recognize revenue for our services through the application of the following steps: • Identification of the contract, or contracts, with a customer. • Identification of the performance obligations in the contract. • Determination of the transaction price. • Allocation of the transaction price to the performance obligations in the contract. • Recognition of revenue when, or as, we satisfy a performance obligation. Commission Revenue. Our commission revenue results from approval of an application from health insurance carriers, which we define as our customers under ASC 606. Our commission revenue is primarily comprised of commissions from health insurance carriers which is computed using the estimated constrained lifetime value of commission payments that we expect to receive. Included in commissions are regular administrative payments we receive with respect to administrative services. We estimate commission revenue for each insurance product by using a portfolio approach to a group of approved members by plan type and the effective month of the relevant plan, which we refer to as “cohorts”. We recognize revenue for plans approved during the period by applying the latest estimated constrained lifetime value (“LTV”) for that product. We recognize adjustment revenue for plans approved in prior periods when changes in assumptions for constrained LTV calculations are made and when there is sufficient evidence demonstrating a trend that is different from the estimated constrained LTV at the time of approval resulting in a change in estimate to expected cash collections. Net adjustment revenue consists of increases in revenue for certain prior period cohorts as well as reductions in revenue for certain prior period cohorts. We recognize positive adjustments to revenue to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. We assess the risk of significant revenue reversal based on statistical and qualitative analysis given historical information and current market conditions. Our commission revenue for each product line is based on a number of assumptions, which include, but are not limited to, estimating conversion of an approved member to a paying member, forecasting average plan duration and forecasting the commission amounts likely to be received per member. These assumptions are based on our analysis of historical trends for the different cohorts and incorporate management’s judgment in interpreting those trends and applying the constraints discussed below. For our Medicare commission revenue, which represented 88%, 86% and 86% of our total commission revenue for the years ended December 31, 2022, 2021 and 2020, respectively, the estimated average plan duration, which is the average length of time paying members are active on their plans, used to calculate Medicare health insurance plan LTVs historically has been approximately 3 years for Medicare Advantage plans, and approximately 4 to 5 years for both Medicare Supplement and Medicare Part D prescription drug plans. While the average plan duration has been approximately 3 years for Medicare Advantage plans, certain members may have a duration of up to approximately 14 years. The estimated average plan duration used to calculate the LTV for major medical individual and family health insurance plans historically has been approximately 1.5 to 2 years. For short term health insurance plan LTVs, the estimated average plan duration has been approximately six months. For all other ancillary health insurance plan LTVs, the estimated average plan duration has historically varied from 1 to 6 years. Constraints are applied to LTV for revenue recognition purposes to help ensure that the total estimated lifetime commissions expected to be collected for an approved member’s plan are recognized as revenue only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with future commissions receivable from the plan is subsequently resolved. Significant judgment can be involved in determining the constraint. To determine the constraints to be applied to LTV, we compare prior calculations of LTV to actual cash received and review the reasons for any variations. We then apply judgment in assessing whether the difference between historical cash collections and LTV is representative of differences that can be expected in future periods. We also analyze whether circumstances have changed and consider any known or potential modifications to the inputs into LTV in light of the factors that can impact the amount of cash expected to be collected in future periods, including but not limited to commission rates, carrier mix, plan duration, cancellations of insurance plans offered by health insurance carriers with which we have a relationship, changes in laws and regulations, and changes in the economic environment. We evaluate the appropriateness of our constraints on an annual basis, at least, and update our assumptions when we observe a sufficient amount of evidence that would suggest that the long-term expectation underlying the assumptions has changed. We re-compute LTVs for all outstanding cohorts on a quarterly basis. We continually review and monitor changes in the data used to estimate LTV and compare the cash received for each cohort to our original estimates at the time of approval. The fluctuations of cash received for each cohort as compared to our estimates and the fluctuations in LTV can be significant and may or may not be indicative of the need to adjust revenue for prior period cohorts. Changes in LTV may result in an increase or a decrease to revenue and a corresponding increase or decrease to contract assets – commissions receivable. We analyze these fluctuations and, to the extent we see changes in our estimates of the cash commission collections that we believe are indicative of an increase or decrease to prior period LTVs, we adjust revenue for the affected cohorts at the time such determination is made and when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. As we accumulate more historical data, we continue to enhance our LTV estimation models using statistical tools to increase the accuracy of LTV estimates with an emphasis on improving member attrition forecasting. The enhancements to the LTV estimation model provide greater statistical certainty on expected cash collections, particularly for earlier period cohorts where there is more historical data available. For both Medicare Advantage and Medicare Part D prescription drug plans, we receive a fixed, annual commission payment from insurance carriers generally once the plan is approved by the carrier and either a fixed, monthly, or annual commission payment beginning with and subsequent to the second plan year. In the first plan year of a Medicare Advantage and Medicare Part D prescription drug plan, after the health insurance carrier approves the application but during the effective year of the plan, we are paid a fixed commission that is prorated for the number of months remaining in the calendar year. Additionally, if the plan is the first Medicare Advantage or Medicare Part D prescription drug plan issued to the member, we may receive a higher commission rate that covers a full 12-month period, regardless of the month the plan was effective. We receive commissions for Medicare Advantage and Medicare Part D prescription drug plans for which we are the broker of record, typically until either the policy is cancelled or we otherwise do not remain the agent on the policy. For individual and family, Medicare Supplement, small business and ancillary plans, our commissions generally represent a flat amount per member per month or a percentage of the premium amount collected by the carrier during the period that a member maintains coverage under a plan. Premium-based commissions are reported to us after the premiums are collected by the carrier, generally on a monthly basis. We generally continue to receive the commission payment from the relevant insurance carrier until the health insurance plan is cancelled or we otherwise do not remain the agent on the policy. For Medicare-related, individual and family and ancillary health insurance plans, our services are complete once a submitted application is approved by the relevant health insurance carrier. Accordingly, we recognize commission revenue based upon the total estimated lifetime commissions we expect to receive for selling the plan after the carrier approves an application, net of an estimated constraint. We refer to these as estimated and constrained LTVs for the plan. We provide annual services in selling and renewing small business health insurance plans; therefore, we recognize small business health insurance plan commission revenue at the time the plan is approved by the carrier, and when it renews each year thereafter, equal to the estimated commissions we expect to collect from the plan over the following 12 months. See Note 2 – Revenue of the Notes to Consolidated Financial Statements for additional information regarding our commission revenue. Other Revenue. Our non-Medicare plan related sponsorship and advertising program allows carriers to purchase advertising space in specific markets in a sponsorship area on our website. In return, we are typically paid a fee, which is recognized over the period that advertising is displayed, and often a performance fee based on metrics such as submitted health insurance applications, which is recognized when the service has been performed. We also offer Medicare advertising and other services, which include, among other things, marketing and website development, hosting and maintenance. In these instances, we are typically paid a fixed, up-front fee, which we recognize as revenue ratably over the service period as service is performed. Our commercial technology licensing business allows carriers the use of our ecommerce platform to offer their own health insurance policies on their websites and agents to utilize our technology to power their online quoting, content and application submission processes. Typically, we are paid a one-time implementation fee, which we recognize on a straight-line basis over the estimated term of the customer relationship, and a performance fee based on metrics such as submitted health insurance applications. The performance fees are based on performance criteria. In instances where the performance criteria data is tracked by us, we recognize revenue in the period of performance and when all other revenue recognition criteria has been met. In instances where the performance criteria data is tracked by the third party, we recognize revenue when reversal of such amounts is not likely to occur. Incremental Costs to Obtain a Contract. Our sales compensation plans, which are directed at converting leads into approved members, represent fulfillment costs and not costs to obtain a contract with a customer. Additionally, we reviewed compensation plans related to personnel responsible for identifying new health insurance carriers and entering into contracts with new health insurance carriers and concluded that no incremental costs are incurred to obtain such contracts. Therefore, costs related these compensation plans are expensed as incurred. Deferred Revenue – Deferred revenue includes deferred fees and amounts billed to or collected from advertising, sponsorship or technology licensing customers in advance of our performing our service for such customers. It also includes the amount by which both unbilled and billed services provided under our technology licensing arrangements exceed the revenue recognized to date. Cost of Revenue – Included in cost of revenue are payments related to health insurance policies sold to members who were referred to our website by marketing partners with whom we have revenue-sharing arrangements. In order to enter into a revenue-sharing arrangement, marketing partners must be licensed to sell health insurance in the state where the policy is sold. Costs related to revenue-sharing arrangements are expensed as the related revenue is recognized. Marketing and Advertising Expenses – Marketing and advertising expenses consist primarily of member acquisition expenses associated with our direct, marketing partner and online advertising member acquisition channels, in addition to compensation and other expenses related to marketing, business development, partner management, public relations and carrier relations personnel who support our offerings. We recognize direct marketing expenses in our direct member acquisition channel in the period in which they are incurred. We recognize online marketing expenses associated with search advertising in the period in which the consumer clicks on the advertisement. Advertising costs incurred in the years ended December 31, 2022, 2021 and 2020 totaled $169.1 million, $240.4 million, and $178.9 million, respectively. Our direct channel expenses primarily consist of costs for direct mail, email marketing, online marketing and television and radio advertising. Advertising costs for our direct channel are expensed the first time the related advertising takes place. Our marketing partner channel expenses primarily consist of fees paid to marketing partners with which we have a relationship. Our online advertising channel expenses primarily consist of paid keyword search advertising on search engines and retargeting campaigns. Advertising costs for our marketing partner channel and our online advertising channel are expensed as incurred. Research and Development Expenses – Research and development expenses consist primarily of compensation and related expenses incurred for employees on our engineering and technical teams, which are expensed as incurred. Research and development costs, which totaled $12.1 million, $10.4 million and $9.1 million for the years ended December 31, 2022, 2021 and 2020, respectively, are included in technology and content expense in the accompanying Consolidated Statements of Comprehensive Income (Loss). Internal-Use Software and Website Development Costs – We capitalize costs of materials, consultants and compensation and benefits costs of employees who devote time to the development of internal-use software and websites during the application development stage. The amortization expenses of these assets are recorded in technology and content. Our judgment is required in determining the point at which various projects enter the phases at which costs may be capitalized, in assessing the ongoing value of the capitalized costs and in determining the estimated useful lives over which the costs are amortized, which is generally 3 years. For the years ended December 31, 2022, 2021 and 2020, we capitalized internal-use software and website development costs of $17.2 million, $19.6 million and $18.0 million respectively, and recorded amortization expense of $17.3 million, $12.9 million, and $7.8 million, respectively. Capitalized internal-use software and website development costs are included in Other Assets on our Consolidated Balance Sheets and were $31.3 million as of December 31, 2022 and 2021. See Note 5 - Equity of the Notes to Consolidated Financial Statements for the amount of stock-based compensation capitalized for internal-use software. Stock-Based Compensation – We grant stock-based awards to officers and certain other employees of the Company and non-employee directors of the Company. The stock-based awards have consisted of stock options and restricted stock units. We recognize stock-based compensation expense in the accompanying Consolidated Statements of Comprehensive Income (Loss) based on the fair value of our stock-based awards over their respective requisite service periods, typically the vesting period, which is generally four years for service-based awards or the one-year anniversary of achieving performance criteria for performance and market-based awards. Stock Options . Our stock options have consisted of service, performance and market-based awards and have exercise prices equal to the market price of the underlying common shares on the date of grant and a term of seven years. The estimated grant date fair value of our stock options is estimated using the Black-Scholes option-pricing model and a single option award approach. The weighted-average expected term for stock options granted is calculated using historical option exercise behavior. The dividend yield is determined by dividing the expected per share dividend during the coming year by the grant date stock price. Through December 31, 2022, we had not declared or paid any cash dividends to common stockholders. We base the risk-free interest rate on the implied yield currently available on U.S. Treasury zero-coupon issues with a remaining term equal to the expected term of our stock options. Expected volatility is determined using a combination of the implied volatility of publicly traded options in our stock and historical volatility of our stock price. Restricted Stock Units. Our restricted stock units have consisted of service, performance and market-based awards and each represents a contingent right to receive a share of our common stock upon predetermined criteria. The fair value for service and performance based restricted stock units is estimated on the date of grant based on the current market price of our common shares. Our market-based restricted stock units are contingent upon the attainment of certain stock prices generally over a four-year performance period. These awards generally vest on the one-year anniversary of the date of achievement, subject to the employee’s continued service through the vesting date. The grant date fair value of market-based restricted stock awards is determined using the Monte-Carlo simulation model and requires the input of subjective assumptions. The weighted-average expected term is based on the likelihood of achievement using historical behavior. The dividend yield is based on our dividend payment history and expectation of future dividend payments. Through December 31, 2022, we had not declared or paid any cash dividends to common stockholders. We base the risk-free interest rate on the implied yield currently available on U.S. Treasury zero-coupon issues with a remaining term equal to the length of the remaining performance period. Expected volatility is determined using a combination of the implied volatility of publicly traded options in our stock and historical volatility of our stock price. The estimated attainment of performance-based awards and related expense is based on the achievement of certain financial targets over a predetermined performance period, subject to continued service through the vesting date and ultimately are subject to the discretion of the Company’s compensation committee. The assumptions used in calculating the fair value of stock-based payment awards and expected attainment of performance-based awards represent our best estimates, but these estimates involve inherent uncertainties and the application of management judgment. We will continue to use judgment in evaluating the expected term and volatility related to our own stock-based awards on a prospective basis and incorporating these factors into the model. Changes in key assumptions could significantly impact the valuation of such instruments. Forfeiture Rate . We estimate a forfeiture rate to calculate the stock-based compensation for all of our awards. We evaluate the appropriateness of the forfeiture rate based on historical forfeiture, analysis of employee turnover, and other factors. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Earnings (Loss) Per Share – Our Series A preferred stock is considered a participating security which requires the use of the two-class method for the computation of basic and diluted per share amounts. Under the two-class method, earnings available to common stockholders for the period are allocated between common stockholders and participating securities according to dividends accumulated and participation rights in undistributed earnings |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue – The table below depicts the disaggregation of revenue by product and is consistent with how we evaluate our financial performance (in thousands): Year Ended December 31, 2022 2021 2020 Medicare Medicare Advantage $ 293,562 $ 393,868 $ 374,981 Medicare Supplement 17,419 24,272 48,526 Medicare Part D 7,171 7,361 12,909 Total Medicare 318,152 425,501 436,416 Individual and Family (1) Non-Qualified Health Plans 12,430 23,579 20,813 Qualified Health Plans 5,435 9,295 5,856 Total Individual and Family 17,865 32,874 26,669 Ancillary Short-term 4,419 6,112 9,494 Dental 3,489 10,216 9,354 Vision 1,050 2,250 3,896 Other 2,508 2,776 4,392 Total Ancillary 11,466 21,354 27,136 Small Business 11,842 10,720 9,568 Commission Bonus and Other 1,921 2,670 8,400 Total Commission Revenue 361,246 493,119 508,189 Other Revenue Sponsorship and Advertising Revenue 40,960 40,560 68,383 Other 3,150 4,520 6,202 Total Other Revenue 44,110 45,080 74,585 Total Revenue $ 405,356 $ 538,199 $ 582,774 _______ (1) We define our Individual and Family plan offerings as major medical individual and family health insurance plans, which does not include Medicare-related, small business or ancillary plans. Individual and family health insurance plans include both qualified and non-qualified plans. Qualified health plans are individual and family health insurance plans that meet the requirements of the Affordable Care Act and are offered through the government-run health insurance exchange in the relevant jurisdiction. Non-qualified health plans are Individual and Family health insurance plans that meet the requirements of the Affordable Care Act and are not offered through the exchange in the relevant jurisdiction. Individuals that purchase non-qualified health plans cannot receive a subsidy in connection with the purchase of non-qualified plans. Commission Revenue Since the adoption of ASC 606, we have evaluated changes in estimated cash collections and compare these to the initial estimates of LTV at the time of approval. We record adjustment revenue in the period when the risk of significant reversal is not probable and continue to enhance our LTV estimation models to improve the accuracy and to reduce the fluctuations of our LTV estimates. Commission revenue by segment is presented in the table below (in thousands): Years Ended December 31, 2022 2021 2020 Medicare Commission Revenue from Members Approved During the Period $ 322,506 $ 437,738 $ 440,722 Net Commission Revenue from Members Approved in Prior Periods (1) (2,326) (8,414) 5,665 Total Medicare Segment Commission Revenue $ 320,180 $ 429,324 $ 446,387 Individual, Family and Small Business Commission Revenue from Members Approved During the Period $ 22,358 $ 25,078 $ 21,971 Commission Revenue from Renewals of Small Business Members during the Period (2) 9,981 8,564 6,727 Net Commission Revenue from Members Approved in Prior Periods (1) 8,727 30,153 33,104 Total Individual, Family and Small Business Segment Commission Revenue $ 41,066 $ 63,795 $ 61,802 Total Commission Revenue from Members Approved During the Period $ 344,864 $ 462,816 $ 462,693 Commission Revenue from Renewals of Small Business Members During the Period (2) 9,981 8,564 6,727 Total Net Commission Revenue from Members Approved in Prior Periods (1)(3) 6,401 21,739 38,769 Total Commission Revenue $ 361,246 $ 493,119 $ 508,189 _______ (1) These amounts reflect our revised estimates of cash collections for certain members approved prior to the relevant reporting period that are recognized as adjustments to revenue within the relevant reporting period. The net adjustment revenue includes both increases in revenue for certain prior period cohorts as well as reductions in revenue for certain prior period cohorts. (2) Commission revenue from renewals of small business members during the period was previously included in net commission revenue from members approved in prior periods. However, beginning in the first quarter of 2021, we enhanced our reporting by separately disclosing commission revenue from renewals of small business members during the period in a separate line item. (3) The impact of total net commission revenue from members approved in prior periods for the years ended December 31, 2022, 2021 and 2020 was $0.23, $0.81 and $1.49 per basic share, respectively, or $0.23, $0.81 and $1.44 per diluted share, respectively. The total reductions to revenue from members approved in prior periods were $16.5 million, $28.8 million and $17.3 million for the years ended December 31, 2022, 2021 and 2020, respectively. These reductions to revenue primarily related to the Medicare segment. Enhancement to LTV Estimation Model and Impacts Related to COVID-19 During 2022, we continued to observe stronger member retention rates in our LTV assessments for the majority of the earlier period cohorts of certain products in our Individual, Family and Small Business segment. Based on our evaluation of the updated LTV models and retention trends, we recognized $8.7 million of net adjustment revenue for the Individual, Family and Small Business segment for the year ended December 31, 2022. In addition, we evaluated various market factors related to our Medicare segment and recorded a net adjustment of $(2.3) million for the year ended December 31, 2022, primarily due to declines in LTV in all Medicare products. We will continue to monitor our member retention rates as compared to our forecasts and other market factors and evaluate whether any addition or reduction of adjustment revenue shall be recorded as we continue to assess our LTV models in future periods During 2021, despite the extension of the COVID-related special enrollment period through August 15, 2021 and an increase in subsidies to certain individuals who purchase qualified health plans, we continued to observe stronger member retention rates in our LTV assessments for the majority of the earlier period cohorts of certain products in our Individual, Family and Small Business segment. We recognized $30.2 million of net adjustment revenue for the Individual, Family and Small Business segment for the year ended December 31, 2021. In addition, we evaluated various market factors related to our Medicare segment and recorded a net adjustment of $(8.4) million for the year ended December 31, 2021, primarily due to decline in LTV of Medicare Supplement and Medicare Part D prescription drug plans. |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 12 Months Ended |
Dec. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Financial Statement Information | Supplemental Financial Statement Information Cash, Cash Equivalents, and Restricted Cash Our cash, cash equivalent, and restricted cash balances are summarized as follows (in thousands): December 31, 2022 December 31, 2021 Cash $ 17,776 $ 33,253 Cash equivalents 126,625 48,673 Cash and cash equivalents 144,401 81,926 Restricted cash 3,239 3,239 Total cash, cash equivalents and restricted cash $ 147,640 $ 85,165 As of December 31, 2022 and 2021, we had $3.2 million of restricted cash which was classified as a non-current asset on our Consolidated Balance Sheets. This amount collateralizes letters of credit related to certain lease commitments. Contract Assets and Accounts Receivable We do not require collateral or other security for our contract assets and accounts receivable. We believe the potential for collection issues with any of our customers was minimal as of December 31, 2022. We estimate an allowance for credit losses using relevant available information from internal and external sources, related to past events, current conditions, and reasonable and supportable forecasts. Specifically, for the purpose of measuring the probability of default parameters, we utilize Capital IQ’s, Standard & Poor’s and Moody’s analytics. Our estimates of loss given default are determined by using our historical collections data as well as historical information obtained through our research and review of other insurance related companies. Our estimated exposure at default is determined by applying these internal and external data sources to our commission receivable balances. As such, we apply an immediate reversion method and revert to historical loss information when computing our credit loss exposure. Credit loss expenses are assessed quarterly and included in the "General and administrative" line in our Consolidated Statements of Comprehensive Income (Loss). There were no write-offs during the years ended December 31, 2022, 2021 and 2020. The change in the allowance for credit losses is summarized as follows (in thousands): December 31, 2022 December 31, 2021 Beginning balance $ 2,198 $ 2,026 Change in allowance 200 172 Ending balance $ 2,398 $ 2,198 Our contract assets – commission receivable activities, net of credit loss allowances are summarized as follows (in thousands): Year Ended December 31, 2022 Medicare Segment IFP/SMB Segment Total Beginning balance $ 837,474 $ 70,788 $ 908,262 Commission revenue from members approved during the period 322,506 22,358 344,864 Commission revenue from renewals of small business members during the period — 9,981 9,981 Net commission revenue from members approved in prior periods (2,326) 8,727 6,401 Cash receipts (340,426) (44,578) (385,004) Net change in credit loss allowance (185) (15) (200) Ending balance $ 817,043 $ 67,261 $ 884,304 Year Ended December 31, 2021 Medicare Segment IFP/SMB Segment Total Beginning balance $ 739,637 $ 52,768 $ 792,405 Commission revenue from members approved during the period 437,738 25,078 462,816 Commission revenue from renewals of small business members during the period — 8,564 8,564 Net commission revenue from members approved in prior periods (8,414) 30,153 21,739 Cash receipts (331,328) (45,762) (377,090) Net change in credit loss allowance (159) (13) (172) Ending balance $ 837,474 $ 70,788 $ 908,262 Credit Risk Our financial instruments that are exposed to concentrations of credit risk principally consist of cash, cash equivalents, marketable securities, contract assets – commissions receivable and accounts receivable. We invest our cash and cash equivalents with major banks and financial institutions and, at times, such investments are in excess of federally insured limits. We also have deposits with major banks in China that are denominated in both U.S. dollars and Chinese Yuan Renminbi and are not insured by the U.S. federal government. The deposits in China were $4.9 million as of December 31, 2022. See Note 4 – Fair Value Measurements for more information regarding our marketable securities. We do not require collateral or other security for either our contract assets or accounts receivable. Carriers that represented 10% or more of our total contract assets – commission receivable and accounts receivable balances are summarized as of the dates presented below: December 31, 2022 December 31, 2021 Humana 26 % 25 % UnitedHealthCare (1) 24 % 23 % Aetna (1) 16 % 17 % Centene (1) 8 % 10 % _______ (1) Percentages include the carriers' subsidiaries. Prepaid Expenses and Other Current Assets – Our prepaid expenses and other current assets are summarized as of the periods presented below (in thousands): December 31, 2022 December 31, 2021 Prepaid maintenance contracts $ 5,211 $ 6,246 Prepaid expenses 2,858 11,379 Prepaid insurance 1,893 2,161 Prepaid licenses 1,116 3,076 Other current assets 223 922 Prepaid expenses and other current assets $ 11,301 $ 23,784 Property and Equipment – Our property and equipment are summarized as of the periods presented below (in thousands): December 31, 2022 December 31, 2021 Computer equipment and software $ 8,727 $ 13,243 Office equipment and furniture 3,556 6,854 Leasehold improvements 5,992 7,458 Property and equipment, gross 18,275 27,555 Less accumulated depreciation and amortization (12,774) (15,450) Property and equipment, net $ 5,501 $ 12,105 Depreciation and amortization expense related to property and equipment for the years ended December 31, 2022, 2021 and 2020 was $3.8 million, $5.4 million and $3.7 million, respectively. Additionally, during 2022, we recognized impairment charges of $2.2 million related to computer equipment, office equipment and furniture and leasehold improvements as a result of our sublease and vacating of certain leased office spaces in the "Impairment, restructuring and other charges" line in our Consolidated Statements of Comprehensive Income (Loss). Intangible Assets – As of December 31, 2022 and 2021, our intangible assets subject to amortization had a gross carrying value of $17.2 million and life-to-date accumulated amortization and impairment charges of $17.2 million. As of December 31, 2022 and 2021, our indefinite-lived intangible assets had a gross carrying value of $5.1 million and life-to-date impairment charges of $3.2 million. We had no amortization expense related to intangible assets for the year ended December 31, 2022 and amortization expense related to intangible assets for the years ended December 31, 2021 and 2020 was $0.5 million and $1.5 million, respectively. We recorded $6.1 million of impairment charges related to our intangible assets in the "Impairment, restructuring and other charges" line in our Consolidated Statements of Comprehensive Income (Loss) for the year ended December 31, 2021. See Note 11 - Impairment, Restructuring and Other Charges for further discussion on our impairment charge in 2021. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We define fair value as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques we use to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. We classify the inputs used to measure fair value into the following hierarchy: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities; unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability. Level 3 Unobservable inputs for the asset or liability. Our financial assets measured at fair value on a recurring basis are summarized below by their classification within the fair value hierarchy as of the dates presented (in thousands): December 31, 2022 Carrying Value Level 1 Level 2 Level 3 Total Assets Cash equivalents Money market funds $ 13,015 $ 13,015 $ — $ — $ 13,015 Commercial paper 112,268 — 112,268 — 112,268 Agency bonds 1,342 — 1,342 — 1,342 Total assets measured at fair value $ 126,625 $ 13,015 $ 113,610 $ — $ 126,625 December 31, 2021 Carrying Value Level 1 Level 2 Level 3 Total Assets Cash equivalents Money market funds $ 9,217 $ 9,217 $ — $ — $ 9,217 Commercial paper 39,456 — 39,456 — 39,456 Short-term marketable securities Commercial paper 38,801 — 38,801 — 38,801 Corporate bond 2,505 — 2,505 — 2,505 Total assets measured at fair value $ 89,979 $ 9,217 $ 80,762 $ — $ 89,979 We endeavor to utilize the best available information in measuring fair value. Our money market funds are measured at fair value based on quoted prices in active markets and are classified as Level 1 within the fair value hierarchy. Our available for sale marketable securities, which include commercial paper, agency bonds and a corporate bond with maturities of less than one year, are measured at fair value using quoted market prices to the extent available or alternative pricing sources and models utilizing market observable inputs and are classified as Level 2 within the fair value hierarchy. Our portfolio primarily consisted of financial instruments with a credit rating of A or equivalent by S&P Rating and Moody's Investor Services. There were no transfers between the hierarchy levels during either of the years ended December 31, 2022 or 2021. The following table summarizes our cash equivalents and available-for-sale debt securities by contractual maturity (in thousands): As of December 31, 2022 As of December 31, 2021 Amortized Cost Fair Value Amortized Cost Fair Value Due in 1 year $ 126,664 $ 126,625 $ 89,988 $ 89,979 Unrealized gains and losses on available-for-sale debt securities that are not credit related are included in accumulated other comprehensive income (loss) and summarized as follows: December 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents Money market funds $ 13,015 $ — $ — $ 13,015 Commercial paper 112,307 — (39) 112,268 Agency bonds 1,342 — — 1,342 Total $ 126,664 $ — $ (39) $ 126,625 December 31, 2021 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents Money market funds $ 9,217 $ — $ — $ 9,217 Commercial paper 39,458 — (2) 39,456 Short-term marketable securities Commercial paper 38,808 — (7) 38,801 Corporate bond 2,505 — — 2,505 Total $ 89,988 $ — $ (9) $ 89,979 As of December 31, 2022 and 2021, we had 26 and 36 securities in net loss positions, respectively, and their unrealized losses were immaterial individually and in aggregate. We did not record any credit losses regarding our available-for-sale debt securities during the year ended December 31, 2022 or 2021. We do not intend to sell these securities and it is more likely than not that we will not be required to sell these securities before the recovery of their amortized cost basis. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity Public Offering of Common Stock – Pursuant to an effective registration statement which was filed on December 17, 2018, and amended on January 22, 2019 and March 2, 2020, we entered into an underwriting agreement in March 2020 to issue a total of 2.1 million shares of common stock, which included the exercise in full of the underwriters’ option to purchase 0.3 million additional shares of common stock, at a price to the public of $115.00 per share in March 2020. Net proceeds from the offering were approximately $228.0 million after deducting underwriting discounts, commissions and expenses of the offering. We intend to use the net proceeds of the offering for general corporate purposes, including working capital. Common Stock – On all matters submitted to our stockholders for vote, our common stockholders are entitled to one vote per share, voting together as a single class, and do not have cumulative voting rights. Accordingly, the holders of a majority of the shares of common stock entitled to vote in any election of directors can elect all of the directors standing for election, if they so choose. Subject to preferences that may apply to any shares of preferred stock outstanding, the holders of common stock are entitled to share equally in any dividends, when and if declared by our board of directors. Upon the occurrence of a liquidation, dissolution or winding-up, the holders of common stock are entitled to share equally in all assets remaining after the payment of any liabilities and the liquidation preferences on any outstanding preferred stock. Holders of common stock have no preemptive or conversion rights or other subscription rights and there are no redemption or sinking funds provisions applicable to the common stock. Stock Repurchase Programs – We had no stock repurchase activity during the years ending December 31, 2022, 2021 or 2020. As of December 31, 2022 and 2021, we had a total of 12.4 million and 12.0 million shares, respectively, held in treasury. As of December 31, 2022 and 2021, we had 1.7 million and 1.3 million shares, respectively, in treasury that were previously surrendered by employees to satisfy tax withholding due in connection with the vesting of certain restricted stock units as well as 10.7 million shares previously repurchased under our past repurchase programs. For accounting purposes, common stock repurchased under our stock repurchase programs is recorded based upon the settlement date of the applicable trade. Such repurchased shares are held in treasury and are presented using the cost method. 2020 Employee Share Purchase Plan – Our board of directors adopted in March 2020 and our stockholders approved in June 2020 the 2020 Employee Stock Purchase Plan ("ESPP"). A total of 0.5 million shares of our common stock are available for sale under the ESPP. Eligible employees can purchase shares of our common stock based on a percentage of their compensation subject to certain limits. The purchase price per share is equal to the lower of 85% of the fair market value of our common stock on the offering date or the purchase date. Employees purchased 0.2 million and 0.1 million shares of common stock under our ESPP during the years ended December 31, 2022 and 2021, respectively. No shares of common stock were purchased under our ESPP in 2020. There were 0.2 million shares remaining for purchase under our ESPP as of December 31, 2022. Equity Plans – On June 12, 2014, upon approval at the Annual Meeting of Stockholders, we adopted the 2014 Equity Incentive Plan (the “2014 Plan”) with 4.5 million shares authorized for issuance. The 2014 Plan does not include an evergreen provision to automatically increase the number of shares available under it, and any increase in the number of shares authorized for issuance under the 2014 Plan requires stockholder approval. Also, under the 2014 Plan the following shares are not recycled for future grant under the 2014 Plan: (i) shares used in connection with the exercise of an option and/or stock appreciation right to pay the exercise price or purchase price of such award or satisfy applicable tax withholding obligations; and (ii) the gross number of shares subject to stock appreciation rights that are exercised. Furthermore, the 2014 Plan included a provision that prohibits repricing of outstanding stock options or stock appreciation rights and formalized and updated procedures to qualify awards as “performance-based” compensation under Section 162(m) of the Internal Revenue Code in order to preserve full tax deductibility of such awards. Our stockholders approved an amendment to the 2014 Plan to increase the maximum number of shares that may be issued by 2.5 million shares in 2019 and by 3.0 million in 2022. The 2014 Plan was further amended on September 29, 2022 to remove certain provisions permitting the Company to provide a reload option (as amended and restated, the "A&R 2014 Plan"). On September 22, 2021, the Company adopted an inducement plan (the “2021 Inducement Plan”), pursuant to which the Company reserved 0.4 million shares of its common stock (subject to customary adjustments in the event of a change in capital structure of the Company) to be used exclusively for grants of awards to individuals who were not previously employees or directors of the Company, other than following a bona fide period of non-employment, as an inducement material to the individual's entry into employment with the Company within the meaning of Rule 5635(c)(4) of the Nasdaq Listing Rules (“Nasdaq Rules”). In March 2022 and September 2022, the Company amended and restated its 2021 Inducement Plan to reserve an additional 0.5 million and 1.5 million shares of its common stock, respectively (as amended and restated, the "A&R 2021 Inducement Plan"). The 2021 Inducement Plan and its amendments were approved by our board of directors (the "Board") without stockholder approval pursuant to Rule 5635(c)(4) of the Nasdaq Rules, and the terms and conditions of the A&R 2021 Inducement Plan and awards to be granted thereunder are substantially similar to our stockholder-approved A&R 2014 Plan. As of December 31, 2022, 1.1 million shares were issued under the A&R 2021 Inducement Plan. Shares Reserved – We generally issue previously unissued common stock upon the exercise of stock options, the vesting of restricted stock units and upon granting of restricted common stock awards; however, we may reissue previously acquired treasury shares to satisfy these future issuances. Shares of authorized but unissued common stock reserved for future issuance were as follows (in thousands): December 31, 2022 December 31, 2021 Stock options issued and outstanding 226 424 Restricted stock units issued and outstanding 2,480 2,384 Shares available for grant 5,165 1,159 Total shares reserved 7,871 3,967 The following table summarizes activity under our A&R 2014 Plan and A&R 2021 Inducement Plan for the year ended December 31, 2022 (in thousands): Balance at December 31, 2021 (1) 1,159 Additional shares authorized 5,000 Restricted stock units granted (2) (2,423) Restricted stock units cancelled (3) 1,308 Options cancelled 121 Balance at December 31, 2022 5,165 _______ (1) Shares available for grant do not include treasury stock shares that could be granted if we determined to do so. (2) Includes grants of restricted stock units with service, performance-based or market-based vesting criteria. (3) Includes cancelled restricted stock units with service, performance-based or market-based vesting criteria. Stock-Based Compensation Expense – The following table summarizes stock-based compensation expense recognized for the years presented below (in thousands): Year Ended December 31, 2022 2021 2020 Restricted stock units* $ 18,713 $ 30,512 $ 23,729 Common stock options 1,154 707 1,097 Employee stock purchase program 449 1,638 346 Total stock-based compensation expense $ 20,316 $ 32,857 $ 25,172 Related tax benefit recognized 4,747 7,746 5,984 _______ * Amounts include market-based and performance-based RSUs. The following table summarizes stock-based compensation expense by operating function for the years presented below (in thousands): Year Ended December 31, 2022 2021 2020 Marketing and advertising $ 1,901 $ 8,660 $ 5,102 Customer care and enrollment 2,096 2,836 2,723 Technology and content 6,015 10,013 5,460 General and administrative 10,304 11,348 11,887 Total stock-based compensation expense 20,316 32,857 25,172 Amount capitalized for internal-use software 1,885 2,621 2,007 Total stock-based compensation $ 22,201 $ 35,478 $ 27,179 For the years ended December 31, 2022, 2021 or 2020, there was a total of $1.9 million, $2.6 million and $2.0 million, respectively, of stock-based compensation expense capitalized in the internal-use software and website development costs classified under Other assets, which represents a noncash investing activity. As of December 31, 2022, there was $2.0 million of total unamortized compensation cost, net of estimated forfeitures, related to stock options, expected to be recognized over a weighted average period of 2.2 years. As of December 31, 2022, there was $28.4 million of total unamortized compensation cost, net of estimated forfeitures, related to restricted stock units, expected to be recognized over a weighted average period of 2.5 years. As of December 31, 2022, there was $0.1 million of unrecognized compensation cost related to our employee stock purchase program, expected to be recognized over a weighted average period of 0.4 years. During the three months ended December 31, 2020, we made an adjustment to reduce stock-based compensation expense by $5.9 million related to our performance-based restricted stock awards due to attainment of certain performance goals deemed not probable based on our latest estimates. The impact of this adjustment was $0.23 and $0.22 per basic and diluted share, respectively, for the year ended December 31, 2020. Stock Options – The following table summarizes stock option activity (in thousands, except weighted-average exercise price and weighted-average remaining contractual life data): Number of Stock Options (1) Weighted Average Exercise Price Weighted-Average Remaining Contractual Life (years) Aggregate Intrinsic Value (2) Outstanding as of December 31, 2021 424 $ 29.07 3.8 $ 2,053 Granted — $ — Exercised (77) $ 13.60 Forfeited (121) $ 20.28 Outstanding balance as of December 31, 2022 226 $ 39.07 5.3 $ — Vested and expected to vest as of December 31, 2022 175 $ 38.51 5.2 $ — Exercisable as of December 31, 2022 57 $ 33.28 4.0 $ — _______ (1) Includes certain stock options with service, performance-based or market-based vesting criteria. (2) The aggregate intrinsic value is calculated as the product between eHealth’s closing stock price as of December 31, 2022 and 2021 and the exercise price of in-the-money options as of those dates. The following table provides information pertaining to our stock options for the years presented below (in thousands, except weighted-average fair values): Year Ended December 31, 2022 2021 2020 Weighted average fair value of options granted n/a $ 41.03 n/a Total fair value of options vested $ 835 $ 797 $ 1,367 Intrinsic value of options exercised $ 694 $ 5,182 $ 8,127 There were no options granted during the years ended December 31, 2022 and 2020. For the options granted during the year ended December 31, 2021, the fair value of stock options granted to employees was estimated using the Black-Scholes option-pricing model and with the following weighted average assumptions for the year presented below: Year Ended December 31, 2021 Expected term (years) 7.0 Expected volatility 69.1% Expected dividend yield —% Risk-free interest rate 1.3% Restricted Stock Units – The following table summarizes restricted stock unit activity (in thousands, except weighted-average grant date fair value and weighted-average remaining contractual life data): Number of Restricted Stock Units (1) Weighted-Average Grant Date Fair Value Weighted-Average Remaining Service Period Aggregate Intrinsic Value (2) Outstanding as of December 31, 2021 2,384 $ 49.56 1.6 $ 60,789 Granted 2,423 $ 9.92 Vested (1,019) $ 30.23 Forfeited (1,308) $ 48.63 Outstanding as of December 31, 2022 2,480 $ 19.27 1.4 $ 12,004 _______ (1) Includes certain restricted stock units with service, performance-based or market-based vesting criteria. (2) The aggregate intrinsic value is calculated as the difference of our closing stock price as of December 31, 2022 and 2021 multiplied by the number of restricted stock units outstanding as of December 31, 2022 and 2021, respectively. The weighted-average fair value of the market-based restricted stock units was determined using the Monte Carlo simulation model using the following weighted average assumptions: Year Ended December 31, 2022 2021 2020 Expected term (years) 2.1 2.0 3.5 Expected volatility 68.7% 66.0% 64.4% Expected dividend yield —% —% —% Risk-free interest rate 2.5% 0.9% 0.3% Weighted-average grant date fair value $9.66 $46.36 $93.85 |
Convertible Preferred Stock
Convertible Preferred Stock | 12 Months Ended |
Dec. 31, 2022 | |
Temporary Equity Disclosure [Abstract] | |
Convertible Preferred Stock | Convertible Preferred Stock On April 30, 2021 (the “Closing Date”), we issued and sold to Echelon Health SPV, LP (“H.I.G.”), an investment vehicle of H.I.G. Capital, in a private placement, 2,250,000 shares of our newly designated Series A convertible preferred stock (the “Series A preferred stock”), par value $0.001 per share, at an aggregate purchase price of $225.0 million. We received $214.0 million in net proceeds from the private placement with H.I.G., net of sales commissions and certain transaction fees totaling $11.0 million. The Series A preferred stock ranks senior to all other equity securities of the Company with respect to dividend rights and rights on the distribution of assets on any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Company. Dividends – Dividends initially accrue on the Series A preferred stock daily at 8% per annum on the stated value of $100 per share (“Stated Value”) and compound semiannually, payable in kind (“PIK”) until the second anniversary of the Closing Date on June 30 and December 31 of each year (each, a “Dividend Payment Date”), beginning on June 30, 2021, and thereafter 6% PIK and 2% payable in cash in arrears on June 30 and December 31 of each year, beginning on June 30, 2023. PIK dividends are cumulative and are added to the Accrued Value (as defined below). “Accrued Value” means, as of any date, with respect to any share of Series A preferred stock, the sum of the Stated Value per share plus, on each Dividend Payment Date, on a cumulative basis, all accrued PIK dividends on such shares that have not previously compounded and been added to the Accrued Value. The Series A preferred stock participates, on an as-converted basis in all dividends paid to the holders of our common stock. Conversion Rights – The Series A preferred stock is convertible at any time into common stock at a conversion rate equal to (i) the Accrued Value plus accrued PIK dividends that have not yet been added to the Accrued Value, (ii) divided by the conversion price as of the applicable conversion date (the “Conversion Price”). As of the date of this report, the Conversion Price is equal to $79.5861 per share. This Conversion Price is subject to further adjustment and the number of shares of common stock issuable upon conversion of the Series A preferred stock is subject to certain limitations, each as set forth in the Certificate of Designations of Series A preferred stock, as filed with the Secretary of State of the State of Delaware on April 30, 2021 (the “Certificate of Designations”). Redemption Put Right – At any time on or after the sixth anniversary of the Closing Date, holders of the Series A preferred stock will have the right to cause the Company to redeem all or any portion of the Series A preferred stock in cash at an amount equal to the greater of (i) 135% of the Accrued Value per share as of the redemption date, plus accrued PIK dividends that have not yet been added to the Accrued Value and (ii) the amount per share that would be payable on an as-converted basis on such Series A preferred stock at the then-current Accrued Value, plus accrued PIK dividends that have not yet been added to the Accrued Value, and in either case of (i) or (ii) plus any unpaid cash dividends that would have otherwise been settled in cash in connection with such conversion (the greater of (i) and (ii), the “Redemption Price”). Redemption Call Right – At any time on or after the sixth anniversary of the Closing Date, the Company will have the right (but not the obligation) to redeem out of legally available funds and for cash consideration all (but not less than all) of the Series A preferred stock upon at least 30 days prior written notice at an amount equal to the Redemption Price. Board Nomination Rights – H.I.G. is entitled to nominate one individual for election to our board of directors so long as it continues to own at least 30% of the common stock issuable or issued upon conversion of the Series A preferred stock originally issued to it in the private placement. H.I.G. also has the right to nominate an additional individual to our board of directors if we fail to maintain certain levels of commissions receivable and liquidity as further discussed below. Voting Rights – The Series A preferred stock will vote together with the common stock as a single class on all matters submitted to a vote of the holders of the common stock (subject to certain voting limitations set forth in, and the terms and conditions of, the Certificate of Designations). Each holder of Series A preferred stock shall be entitled to the number of votes, rounded down to the nearest whole number, equal to the product of (i) the aggregate Accrued Value of the issued and outstanding shares of Series A preferred stock divided by the Minimum Price (as defined below), multiplied by (ii) a fraction, the numerator of which is the number of shares of Series A preferred stock held by such holder and the denominator of which is the aggregate number of issued and outstanding shares of Series A preferred stock. “Minimum Price” means the lower of: (i) the Nasdaq Official Closing Price per share of common stock on the Closing Date; or (ii) the average Nasdaq Official Closing Price per share of common stock for the five trading days immediately prior to the Closing Date. Holders of Series A preferred stock will have one vote per share on any matter on which the holders of the Series A preferred stock are entitled to vote separately as a class (subject to certain voting limitations set forth in, and the terms and conditions of, the certificate of designations). Mandatory Conversion of the Series A Preferred Stock – At any time on or after the third anniversary of the Closing Date, if the volume-weighted average price per share of our common stock is greater than 167.5% of the then-current Conversion Price for 20 consecutive trading days in a 30-day trading day period, the Company will have the right to convert all, but not less than all, of the Series A preferred stock into common stock at a conversion rate with respect to each share of Series A Preferred Stock of (i) the Accrued Value plus accrued PIK dividends that have not yet been added to the Accrued Value, (ii) divided by the then applicable Conversion Price. Covenants and Liquidity Requirements – As long as H.I.G. continues to own at least 30% of the Series A preferred stock originally issued to it in the private placement, the consent of H.I.G. will be required for the Company to incur certain indebtedness and to take certain other corporate actions as set forth in the Company's investment agreement with H.I.G. entered into on February 17, 2021 (the “Investment Agreement”). In addition, the Company is required to maintain an asset coverage ratio (as defined in the Investment Agreement) of at least 2x, which increases to 2.5x thirty months after the date of the Investment Agreement. Additionally, the Investment Agreement requires the Company to maintain a minimum liquidity amount (as defined in the Investment Agreement) for certain periods that ranges from $65 million to $125 million. If the Company fails to maintain the minimum asset coverage ratio or minimum liquidity amount as of a certain date or for a certain time period required by the Investment Agreement and H.I.G continues to own at least 30% of the Series A preferred stock originally issued to it in the private placement, H.I.G will have the right to nominate an additional director to our board of directors, and the consent of H.I.G. will be required to approve the Company's annual budget, hire or terminate certain key executives, and incur certain indebtedness as specified in the Investment Agreement. H.I.G. will no longer have these additional board nomination and consent rights if the Company is able to satisfy the minimum liquidity amount requirements in the Investment Agreement for any subsequent 12 consecutive months. As of December 31, 2022, we were in compliance with the asset coverage ratio and minimum liquidity amounts as required in the Investment Agreement. Our Series A preferred stock is considered temporary equity in our consolidated financial statements. We have determined there are no material embedded features that require recognition as a derivative asset or liability. We recognized the Series A preferred stock at its stated amount less issuance costs of $11.0 million, or $214.0 million. As of December 31, 2022, the estimated Series A preferred stock redemption value equals 135% of the Accrued Value per share as of the redemption date, plus any accrued and unpaid dividends, which is significantly in excess of the fair value of the common stock into which the Series A preferred stock is convertible as of December 31, 2022. We have elected to apply the accretion method to adjust the carrying value of the Series A preferred stock to its redemption value at the earliest date of redemption, April 30, 2027. Amounts recognized to accrete the Series A preferred stock to its estimated redemption value are treated as a deemed dividend and are recorded as a reduction to retained earnings. The estimated redemption value will vary in subsequent periods due to the redemption put right described above and we have elected to recognize such changes prospectively. No shares of Series A preferred stock have been converted and the Series A preferred stock was convertible into 3.2 million shares of common stock as of December 31, 2022. The following table summarizes the proceeds and changes to our Series A preferred stock (in thousands): Gross proceeds $ 225,000 Less: issuance costs (10,975) Net proceeds $ 214,025 Balance as of Closing Date $ 214,025 Accrued paid-in-kind dividends 12,206 Change in preferred stock redemption value 6,361 Balance as of December 31, 2021 232,592 Accrued paid-in-kind dividends 19,357 Change in preferred stock redemption value 11,335 Balance as of December 31, 2022 $ 263,284 |
Net Income (Loss) Per Share Att
Net Income (Loss) Per Share Attributable to Common Stockholders | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share Attributable to Common Stockholders | Net Income (Loss) Per Share Attributable to Common Stockholders The following table sets forth the computation of basic and diluted net income (loss) attributable to common stockholders per share (in thousands, except per share amounts): Year Ended December 31, 2022 2021 2020 Basic Net income (loss) attributable to common stockholders $ (119,414) $ (122,942) $ 45,450 Shares used in per share calculation – basic 27,359 26,781 26,025 Net income (loss) attributable to common stockholders per share – basic $ (4.36) $ (4.59) $ 1.75 Diluted: Net income (loss) attributable to common stockholders $ (119,414) $ (122,942) $ 45,450 Shares used in per share calculation – basic 27,359 26,781 26,025 Dilutive effect of common stock — — 989 Shares used in per share calculation — diluted 27,359 26,781 27,014 Net income (loss) attributable to common stockholders per share – diluted $ (4.36) $ (4.59) $ 1.68 For each of the years ended December 31, 2022, 2021 and 2020, we had securities outstanding that could potentially dilute net income (loss) per share, but the shares from the assumed conversion or exercise of these securities were excluded in the computation of diluted net income (loss) per share as their effect would have been anti-dilutive. The number of weighted-average outstanding anti-dilutive shares that were excluded from the computation of diluted net income (loss) per share consisted of the following (in thousands): Year Ended December 31, 2022 2021 2020 Convertible preferred stock 3,102 1,905 — Restricted stock units* 1,551 1,078 151 Common stock options 271 333 — Employee stock purchase program 65 29 — Total 4,989 3,345 151 _______ * Amounts include market-based and performance-based RSUs. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Service and Licensing Obligations We have entered into service and licensing agreements with third party vendors to provide various services, including network access, equipment maintenance, and software licensing. As the benefits of these agreements are experienced uniformly over the applicable contractual periods, we record the related service and licensing expenses on a straight-line basis, although actual cash payment obligations under certain of these agreements fluctuate over the terms of the agreements. Our future minimum payments under non-cancellable contractual service and licensing obligations as of December 31, 2022 were as follows (in thousands): For the Years Ending December 31, 2023 $ 7,782 2024 2,519 2025 229 2026 — 2027 — Thereafter — Total $ 10,530 Operating Leases Refer to Note 10 – Leases for commitments related to our operating leases. Contingencies From time to time, we receive inquiries from governmental bodies and also may be subject to various legal proceedings and claims arising in the ordinary course of business. We assess contingencies to determine the degree of probability and range of possible loss for potential accrual in our consolidated financial statements. An estimated loss contingency is accrued in the consolidated financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Legal proceedings or other contingencies could result in material costs, even if we ultimately prevail, and we may from time to time enter into settlements to resolve such litigation. Legal costs incurred in connection with the resolution of claims, lawsuits and other contingencies generally are expensed as incurred. We accrued approximately $1.2 million as of December 31, 2020 for amounts we believed to be payable for certain legal proceedings. The accrued amount was settled and paid in January 2021. There were no material additional litigation-related accruals recorded during the years ended or as of December 31, 2022 and 2021. The following discussion is limited to the Company's material on-going legal proceedings: Securities Class Action – On April 8, 2020 and April 30, 2020, two purported class action lawsuits were filed against the Company, its then-chief executive officer, Scott N. Flanders, its then-chief financial officer, Derek N. Yu ng, and its then-chief operating officer, David K. Francis in the United States District Court for the Northern District of California. The cases are captioned Patel v. eHealth, Inc., et al., Case No. 5:20-cv-02395 (N.D. Cal.) and Bertrand v. eHealth, Inc. et al., Case No. 4:20-cv-02967 (N.D. Cal.). The complaints allege, among other things, that the Company and Messrs. Flanders, Yung and Francis made materially false and misleading statements and/or failed to disclose material information regarding the Company’s accounting and modeling assumptions, rate of member churn and the Company’s profitability during the alleged class period of March 19, 2018 to April 7, 2020. The complaints allege that the specified defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaints seek compensatory and (in the Patel lawsuit) punitive damages, attorneys’ fees and costs, and such other relief as the court deems proper. On June 24, 2020, the Court consolidated the above-referenced matters under the caption In re eHealth Securities Litig., Master File No. 4:20-cv-02395-JST (N.D. Cal.). The Court also appointed a lead plaintiff and lead counsel for the consolidated matter. An Amended Complaint was filed on August 25, 2020, which Defendants moved to dismiss on October 23, 2020. Defendants’ motion, which Plaintiff opposed, was granted in part and denied in part on August 12, 2021. The Court dismissed Plaintiff’s claims to the extent premised upon alleged misrepresentations or omissions relating to churn, but denied Defendant’s motion with respect to alleged misstatements regarding purported operating costs. On October 1, 2021, the Company filed an Answer denying in part and admitting in part the remaining allegations, and denying any wrongdoing. On November 11, 2021, Plaintiff’s counsel filed a suggestion of death with respect to the lead plaintiff Billy White. Plaintiff’s counsel published notice regarding the appointment of a new lead plaintiff on January 17, 2022. On November 9, 2022, the Court appointed Chicago & Vicinity Laborers’ District Council Pension Fund as the new lead plaintiff and approved plaintiff’s selection of counsel. On November 29, 2022, the new lead plaintiff and lead plaintiff’s counsel filed a supplement to the amended complaint, replacing the names of the prior lead plaintiff and counsel and incorporating new lead plaintiff’s previously filed certification. On December 22, 2022, the Company, Mr. Flanders, and Mr. Yung moved for judgment on the pleadings as to the remaining claims. Mr. Francis also moved for judgment on the pleadings the same day, and joined the motion by the Company, Mr. Flanders, and Mr. Yung. The motions for judgment on the pleadings were fully briefed by February 9, 2023, and are scheduled for a hearing on April 13, 2023. Derivative Actions – On July 7, 2020, a derivative lawsuit captioned Chernet v. Flanders et al., Case No. 3:20-cv-04477-SK (N.D. Cal.) (the “Chernet” matter) was filed in the United States District Court for the Northern District of California. On October 13, 2020, a derivative lawsuit captioned Lincolnshire Police Pension Fund v. Flanders et al., Case No. 20CV371555 (Cal. Super. Ct.) (the “Lincolnshire” matter) was filed in the Superior Court of California, County of Santa Clara. The complaints were brought against the Company's then-chief executive officer, Mr. Flanders, its then-chief financial officer, Mr. Yung, its then-chief operating officer, Mr. Francis, and the then-current members of the Board (collectively, the “Individual Defendants”), and name the Company as a nominal |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information Operating Segments The results of our operating segments are summarized for the periods presented below (in thousands): Year Ended December 31, 2022 2021 2020 Revenue: Medicare $ 361,687 $ 471,217 $ 516,762 Individual, Family and Small Business 43,669 66,982 66,012 Total revenue $ 405,356 $ 538,199 $ 582,774 Segment profit (loss) Medicare (1) $ (9,873) $ (12,079) $ 108,787 Individual, Family and Small Business (1) 21,438 45,705 40,315 Segment profit 11,565 33,626 149,102 Corporate (53,238) (56,325) (57,664) Stock-based compensation expense (20,316) (32,857) (25,172) Depreciation and amortization (2) (21,108) (18,331) (11,450) Impairment, restructuring and other charges (19,616) (51,222) — Amortization of intangible assets — (536) (1,493) Other income (expense), net (3,676) 755 666 Income (loss) before income taxes $ (106,389) $ (124,890) $ 53,989 (1) During the first quarter of 2021, we revised the calculation of segment profit by excluding amortization of capitalized software development costs to enhance comparability of our financial metrics with peer companies. The amortization of capitalized software was $17.3 million, $12.9 million, and $7.8 million for the years ended December 31, 2022, 2021 and 2020, respectively. (2) Depreciation and amortization has been adjusted to include amortization of software development costs. There were no inter-segment revenue transactions for the periods presented. With the exception of contract assets – commissions receivable, which is presented by segment in Note 3 – Supplemental Financial Statement Information, our CODM does not separately evaluate assets by segment, and therefore assets by segment are not presented. Geographic Information Our long-lived assets primarily consist of property and equipment and internally-developed software. Our long-lived assets are attributed to the geographic location in which they are located. Long-lived assets by geographical area are summarized as follows (in thousands): December 31, 2022 December 31, 2021 United States $ 37,915 $ 45,134 China 381 595 Total $ 38,296 $ 45,729 Significant Customers Substantially all revenue for the years ended December 31, 2022, 2021 and 2020 was generated from customers located in the United States. Carriers representing 10% or more of our total revenue are summarized as follows: Year Ended December 31, 2022 2021 2020 Humana 23 % 19 % 22 % UnitedHealthcare (1) 22 % 20 % 21 % Aetna (1) 12 % 18 % 15 % Centene (1) 8 % 12 % 10 % _______ |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases We account for leases in accordance with Accounting Standards Codification Topic 842, Leases. We determine if an arrangement is a lease at inception. Our lease portfolio is primarily composed of operating leases for corporate offices and are included in operating lease right-of-use (“ROU”) assets and lease liabilities on our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company's leases generally do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date. In determining the present value of lease payments, we utilized the assistance of third-party specialists to assist us in determining our yield curve based upon our credit rating, lease term and adjustment for security. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Our leases have remaining lease terms of 1 to 7 years. Certain of these leases have free or escalating rent payment provisions. We recognize lease expense on a straight-line basis over the terms of the leases, although actual cash payment obligations under certain of these agreements fluctuate over the terms of the agreements. Most leases include options to renew, and the exercise of these options is at our discretion. In August 2022, we executed and commenced the sublease of our office space located in Santa Clara, California, which will run through the remaining term of the primary lease, March 19, 2029. This sublease is expected to generate approximately $13.5 million in sublease income over the sublease term. Sublease income is recorded on a straight-line basis as a reduction of lease expense in our Consolidated Statements of Comprehensive Income (Loss). Additionally, we have a sublease agreement for our office space in Mountain View, California to sublease to a third party, which commenced in December 2018 and will expire in July 2023. We recorded $1.0 million, $1.2 million and $1.2 million of sublease income during the years ended December 31, 2022, 2021 and 2020, respectively. We test right-of-use assets when impairment indicators are present in accordance with the asset impairment provisions of Accounting Standards Codification 360, Property, Plant and Equipment ("ASC 360"). The sublease of our Santa Clara, California office space triggered impairment testing for the underlying right-of-use asset as the expected sublease income is less than the remaining head lease obligation. Furthermore, we became a virtual-first workplace in the third quarter of 2022 and as a result, we vacated a number of our leased office spaces during the fourth quarter of 2022. We evaluated these right-of-use assets, including leasehold improvements, furniture and fixtures and computer equipment for impairment under ASC 360. For our impairment tests, we utilized an income approach to value the asset group by performing a discounted cash flow analysis and determined that the net carrying value exceeded the estimated discounted future cash flows based on current market conditions. As a result, we recorded an $11.8 million impairment charge related to operating lease right-of-use assets and property, plant and equipment, which was reflected in the "Impairment, restructuring and other charges" line in our Consolidated Statements of Comprehensive Income (Loss) for the year ended December 31, 2022. See Note 11 — Impairment, Restructuring and Other Charges for further discussion about our asset impairment charges. Total operating lease expenses were $7.8 million, $7.7 million, and $7.8 million for the years ended December 31, 2022, 2021 and 2020, respectively. Supplemental information related to leases are as follows (in thousands): Year Ended December 31, 2022 2021 Cash paid for amounts included in the measurement of operating lease liabilities $ 7,697 $ 7,640 Non-cash investing activities relating to operating lease right-of-use assets $ 3,493 $ — December 31, 2022 December 31, 2021 Weighted-average remaining lease term of operating leases 5.7 years 6.3 years Weighted-average discount rate used to recognize operating lease right-of-use-assets 5.6 % 5.4 % As of December 31, 2022, maturities of operating lease liabilities are as follows (in thousands): Year ending December 31, 2023 $ 8,606 2024 8,404 2025 8,610 2026 7,396 2027 6,773 Thereafter 8,201 Total lease payments (1) 47,990 Less imputed interest (7,317) Total $ 40,673 _______ (1) Noncancellable sublease rent payments for the years ending December 31, 2023, 2024, 2025, 2026, 2027, and thereafter of $1.6 million, $2.1 million, $2.2 million, $2.2 million, $2.3 million, and $2.8 million, respectively, are not included in the table above. |
Impairment, Restructuring and O
Impairment, Restructuring and Other Charges | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Impairment, Restructuring and Other Charges | Impairment, Restructuring and Other Charges The following table details impairment, restructuring and other charges for each of the periods presented: Year Ended December 31, 2022 2021 2020 Asset impairment charges $ 12,102 $ — $ — Restructuring and reorganization charges 7,514 4,878 — Goodwill and intangible assets impairment — 46,344 — Impairment, restructuring and other charges $ 19,616 $ 51,222 $ — Our restructuring and reorganization charges and liabilities consist primarily of severance, transition and other related costs. The following table summarizes the cash-based restructuring and reorganization related liabilities (in thousands): December 31, 2022 Beginning balance $ 146 Restructuring and reorganization charges 7,514 Payments (7,294) Ending balance $ 366 Asset Impairments For the year ended December 31, 2022, we recognized a non-cash, pre-tax asset impairment charge of $12.1 million related to the subleasing and vacating of several of our office spaces in the "Impairment, restructuring and other charges" line in our Consolidated Statements of Comprehensive Income (Loss). In the third quarter of 2022, we recorded a $3.4 million of pre-tax asset impairment charge related to our office space in Santa Clara, California. The charge consisted of $2.5 million of operating lease right-of-use assets impairment and $0.9 million of property, plant and equipment impairment. In the fourth quarter of 2022, we recorded an additional $8.4 million of impairment charges due to vacating a number of our leased office spaces as a result of becoming a remote first workplace. The fourth quarter impairment charge consisted of $7.1 million of operating lease right-of-use assets impairment and $1.3 million of property, plant and equipment impairment. Restructuring In the first half of 2022, we eliminated 339 full-time positions, which represented approximately 14% of our workforce, primarily within our customer care and enrollment group, and to a lesser extent, in our marketing and advertising, technology and content, and general and administrative groups, and, as a result, recorded pre-tax restructuring charges of $6.2 million in the "Impairment, restructuring and other charges" line in our Consolidated Statements of Comprehensive Income (Loss). In the second half of 2022, we incurred pre-tax restructuring charges of $1.3 million for additional eliminated positions. Substantially all of the restructuring charges have been settled in cash and no equity awards were modified. As of December 31, 2022, the restructuring accrual of $0.4 million is recorded in other current liabilities on our Consolidated Balance Sheets. In September 2021, we announced the transition of our chief executive officer. Mr. Scott Flanders resigned as a member of our board of directors and chief executive officer, effective October 31, 2021. We recognized $2.4 million in severance costs related to his separation in 2021. Stock-based compensation expense for the year ended December 31, 2021 was impacted by a $4.1 million credit related to forfeited equity awards due to Mr. Flanders' separation, which was included in the "General and administrative" line in our Consolidated Statement of Comprehensive Income (Loss). In February 2021, we eliminated 89 full-time positions, primarily in the United States, representing approximately 5% of our workforce, primarily within our customer care and enrollment group, and to a lesser extent, in our marketing and advertising, technology and content, and general and administrative groups. Total pre-tax restructuring charges were $2.4 million for the year ended December 31, 2021, which primarily related to employee termination benefits. Substantially all of the restructuring charges resulted in cash expenditures. The restructuring activities were completed by March 31, 2021. Goodwill and Intangible Asset Impairments For the year ended December 31, 2021, we performed an impairment analysis over our goodwill, which included both qualitative and quantitative assessments. Our goodwill assessment included a comparison of carrying value to an estimated fair value using a market approach based on our market capitalization. Based on this assessment, we concluded the fair value of our Medicare segment was below the carrying value primarily due to the change in our market valuation at the time and financial performance and recorded a $40.2 million impairment of goodwill to write-off our entire goodwill balance. No goodwill impairment was recorded in 2020. For the year ended December 31, 2021, we performed an impairment analysis over our intangible assets. Our impairment of intangible assets assessment included a recoverability test for definite-lived intangible assets and a comparison of carrying value to the estimated fair value. The fair value of our intangible assets as of December 31, 2021 was estimated using a market approach for certain indefinite-lived intangible assets as well as using the expected future cash flow approach for our definite-lived intangible assets. Based our assessment, we determined that the fair value of our Medicare segment was below the carrying value as of December 31, 2021 primarily due to the recent change in our market valuation and financial performance. Therefore, we recorded a $6.1 million impairment charge on our Consolidated Statements of Comprehensive Income (Loss) related to our intangible assets. No intangible asset impairment was identified during the years ended December 31, 2022 or 2020. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt On February 28, 2022, we entered into a term loan credit agreement with Blue Torch Finance LLC, as administrative agent and collateral agent, and other lenders party thereto (the "Original Credit Agreement"). On August 16, 2022, we entered into an Amendment (the "Amendment") to the Original Credit Agreement (as amended by the Amendment, the "Credit Agreement"). The Amendment replaced the LIBOR-based Adjusted Euro currency Rate (as defined in the Original Credit Agreement) with Adjusted Term SOFR (as defined in the Amendment) as a reference rate for loans under the Credit Agreement. The Credit Agreement provides for a $70.0 million secured term loan credit facility. The proceeds of the loans under the Credit Agreement may be used for working capital and general corporate purposes, to refinance our credit agreement with Royal Bank of Canada ("RBC") and to pay fees and expenses in connection with the entry into the Credit Agreement. The Original Credit Agreement bore interest, at our option, at either a rate based on the LIBOR for the applicable interest period or a base rate, in each case plus a margin. The base rate was the highest of the prime rate, the federal funds rates plus 0.50% and one month adjusted LIBOR plus 1.00%. The margin was 7.50% for LIBOR loans and 6.50% for base rate loans. After the Amendment, the loans under the Credit Agreement bear interest, at our option, at either a rate based on the Adjusted Term SOFR or a base rate, in each case plus a margin. The base rate is the highest of the prime rate, the federal funds rate plus 0.50% and three-month Adjusted Term SOFR plus 1.00%. The margin is 7.50% for Adjusted Term SOFR loans and 6.50% for base rate loans. As of December 31, 2022, the interest rate was 12.16%. For the year ended December 31, 2022, we incurred interest expense of $5.9 million. We incurred no interest expense for the years ended December 31, 2021 or 2020. Furthermore, as part of the agreement, we incur a $0.3 million fee per annum, payable annually. The outstanding obligations under the Credit Agreement are payable in full on the maturity date. The Credit Agreement matures in February 2025. We have the right to prepay the loans under the Credit Agreement in whole or in part at any time, subject, in the case of certain mandatory prepayments or any voluntary prepayment of the loans under the Credit Agreement after February 28, 2023, to an exit fee. Our obligations under the Credit Agreement are guaranteed by certain of our material domestic subsidiaries and substantially all of our assets and the assets of such guarantors, in each case, subject to customary exclusion. We are obligated to pay administration fees under the Credit Agreement. Financial covenants in the Credit Agreement require that we maintain Liquidity (as defined in the Credit Agreement) at or above $25.0 million as of the last calendar day of any month. The Credit Agreement also requires that the outstanding amount as of the last calendar day of any month be less than 50% of our total contract assets - commissions receivables (i.e., both current and non-current commissions receivables). As of December 31, 2022, we were in compliance with our loan covenants. In the first quarter of 2022, we obtained a $70.0 million secured term loan under our Credit Agreement. We incurred closing costs totaling $5.1 million, which were recorded as a direct deduction from the face of the loan on our Consolidated Balance Sheet. There was $3.9 million of unamortized issuance costs as of December 31, 2022. The carrying value of the term loan approximates the fair value, based on Level 2 inputs (observable market prices in less than active markets), as the interest rate is variable over the selected interest period and is similar to current rates at which we can borrow funds. The carrying value of the loan was $66.1 million as of December 31, 2022. On September 17, 2018, we entered into a $40.0 million credit agreement with RBC as administrative agent and collateral agent and incurred $1.2 million of issuance costs which were capitalized as part of other assets on our Consolidated Balance Sheets. On December 20, 2019, we amended our revolving credit facility agreement with RBC which increased the borrowing amount from $40.0 million to $75.0 million and incurred $0.5 million of issuance costs which were capitalized as part of other assets on our Consolidated Balance Sheets. The maturity date was extended to December 20, 2022. As of December 31, 2021, the remaining balance of unamortized issuance costs was $0.4 million and we had no outstanding borrowings under our agreement with RBC. During the first quarter of 2022, we terminated our credit agreement with RBC and wrote off our remaining related debt issuance cost of $0.4 million. We had no outstanding borrowings under our agreement with RBC at the time of termination. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of our income (loss) before provision for (benefit from) income taxes were as follows (in thousands): Year Ended December 31, 2022 2021 2020 United States $ (108,006) $ (125,876) $ 53,078 Foreign 1,617 986 911 Income (loss) before income taxes $ (106,389) $ (124,890) $ 53,989 The federal and state income tax provision (benefit) is summarized as follows (in thousands): Year Ended December 31, 2022 2021 2020 Current: Federal $ — $ — $ — State 514 858 88 Foreign 256 148 (361) Total current 770 1,006 (273) Deferred: Federal (16,382) (20,696) 7,303 State (2,055) (825) 1,245 Foreign — — 264 Total deferred (18,437) (21,521) 8,812 Provision for (benefit from) income taxes $ (17,667) $ (20,515) $ 8,539 The effective tax rate of our provision for (benefit from) income taxes differs from the federal statutory rate as follows: Year Ended December 31, 2022 2021 2020 Statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 2.1 0.4 2.2 Stock-based compensation windfalls, net (4.5) (1.5) (7.9) Non-deductible stock-based compensation (0.7) (0.8) 2.2 Non-deductible lobbying expenses (0.3) (0.3) 0.8 Research and development credits 0.8 1.0 (2.2) Changes in valuation allowance (1.0) (0.6) 0.1 Foreign income tax and income inclusion (0.2) (0.1) (0.7) Goodwill impairment — (2.4) — Other permanent differences (0.6) (0.3) 0.3 Effective tax rate 16.6 % 16.4 % 15.8 % Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, together with operating losses and tax credit carryforwards. The tax effects of significant items comprising our deferred taxes as of December 31, 2022 and 2021 were as follows (in thousands): December 31, 2022 December 31, 2021 Deferred tax assets: Net operating losses $ 154,832 $ 149,689 Intangible assets 13,618 7,480 Research and development credits carryovers 11,384 9,954 Operating lease liabilities 10,015 10,146 Accruals and reserves 3,411 1,628 Stock-based compensation 1,387 4,642 Fixed assets 636 402 Other 1,093 394 Total deferred tax assets 196,376 184,335 Valuation allowance (4,287) (3,214) Total deferred tax assets net of valuation allowance 192,089 181,121 Deferred tax liabilities: Commissions receivable (217,919) (222,751) Right-of-use assets (6,529) (9,166) Total deferred tax liabilities (224,448) (231,917) Net deferred tax liabilities $ (32,359) $ (50,796) Assessing the realizability of our deferred tax assets is dependent upon several factors, including the likelihood and amount, if any, of future taxable income in relevant jurisdictions during the periods in which those temporary differences become deductible. We forecast taxable income by considering all available positive and negative evidence, including our history of operating income and losses and our financial plans and estimates that we use to manage the business. These assumptions require significant judgment about future taxable income. As a result, the amount of deferred tax assets considered realizable is subject to adjustment in future periods if estimates of future taxable income change. During the year ended December 31, 2022, a valuation allowance of $4.3 million was recorded against California net deferred tax assets. The valuation allowance was recorded as a result of increased uncertainty regarding our future taxable income and a lack of sources of other taxable income to realize our net deferred tax assets in California. The remaining deferred tax assets are supported by the reversal of deferred tax liabilities. The change in our valuation allowance is summarized as follows for the years ended (in thousands): Deferred Tax Assets - Valuation Allowance Balance at beginning of year Provision for income taxes Write-offs and Deductions Balance at December 31, 2022 $ 3,214 $ 1,103 $ (30) $ 4,287 December 31, 2021 2,479 3,150 (2,415) 3,214 December 31, 2020 2,407 72 — 2,479 The net operating loss and tax credit carryforwards as of December 31, 2022 are summarized as follows (in thousands): Amount Expires Net operating losses, federal (with expiration) $ 39,194 2034-2037 Net operating losses, federal (without expiration) 592,947 Indefinite Net operating losses, state (with expiration) 396,918 2023-2042 Tax credits, federal 10,867 2023-2042 Tax credits, state 10,738 n/a Utilization of the net operating loss carryforwards and credits may be subject to a substantial annual limitation due to ownership changes that may have occurred or that could occur in the future, as required by Section 382 of the Internal Revenue Code and similar state provisions. These ownership change limitations may limit the amount of net operating loss carryforwards and other tax attributes that can be utilized annually to offset future taxable income and tax, respectively. A reconciliation of the beginning and ending amount of our unrecognized tax benefits is as follows (in thousands): Year Ended December 31, 2022 2021 2020 Beginning balance $ 8,551 $ 6,330 $ 4,709 Additions for tax positions of prior years 162 646 — Lapse of statute of limitations (86) (64) (8) Additions based on tax positions related to the current year 1,248 1,639 1,629 Ending balance $ 9,875 $ 8,551 $ 6,330 As of December 31, 2022, the total amount of gross unrecognized tax benefits was $9.9 million, of which $8.7 million, if recognized, would affect our effective tax rate. As of December 31, 2021, the total amount of gross unrecognized tax benefits was $8.6 million, of which $7.6 million, if recognized, would affect our effective tax rate. We record interest and penalties related to unrecognized tax benefits in provision for (benefit from) income taxes. As of December 31, 2022, the amount accrued for estimated interest related to uncertain tax positions was immaterial. We did not record an accrual for penalties. |
Summary of Business and Signi_2
Summary of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business – eHealth, Inc. (the “Company,” “eHealth,” “we” or “us”) is a leading private online health insurance marketplace with a technology and service platform that provides consumer engagement, education and health insurance enrollment solutions. Our mission is to expertly guide consumers through their health insurance enrollment and related options, when, where and how they prefer. Our platform leverages technology to solve a critical problem in a large and growing market by aiding consumers in what has traditionally been a complex, confusing, and opaque health insurance purchasing process. Our omnichannel consumer engagement platform differentiates our offering from other brokers and enables consumers to use our services online, by telephone with a licensed insurance agent, or through a hybrid online assisted interaction that includes live agent chat and co-browsing capabilities. We have created a consumer-centric marketplace that offers consumers a broad choice of insurance products that includes thousands of Medicare Advantage, Medicare Supplement, Medicare Part D prescription drug, individual and family, small business and other ancillary health insurance products from approximately 200 health insurance carriers across all fifty states and the District of Columbia. Our plan recommendation tool curates this broad plan selection by analyzing customer health-related information against plan data for insurance coverage fit. This tool is supported by a unified data platform and is available to our ecommerce customers and our licensed agents. We strive to be the most trusted partner to the consumer in their life's journey through the health insurance market. |
Basis of Presentation | Basis of Presentation – Our consolidated financial statements include the accounts of eHealth, Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). Certain prior period amounts have been reclassified to conform with our current period presentation. |
Operating Segments | Operating Segments – We report segment information based on how our chief executive officer, who is our chief operating decision maker (“CODM”), regularly reviews our operating results, allocates resources and makes decisions regarding our business operations. The performance measures of our segments include total revenue and profit (loss). Our business structure is comprised of two operating segments: • Medicare; and • Individual, Family and Small Business The Medicare segment consists primarily of commissions earned from our sale of Medicare-related health insurance plans, including Medicare Advantage, Medicare Supplement and Medicare Part D prescription drug plans, and to a lesser extent, ancillary products sold to our Medicare-eligible customers, including but not limited to, dental and vision insurance, as well as our advertising program that allows Medicare-related carriers to purchase advertising on a separate website developed, hosted and maintained by us or pursuant to which we perform other services as marketing and our delivery and sale to third parties of Medicare-related health insurance leads generated by our ecommerce platforms and our marketing activities. The Individual, Family and Small Business segment consists primarily of commissions earned from our sale of individual and family and small business health insurance plans and ancillary products sold to our non-Medicare-eligible customers, including but not limited to, dental, vision, short term disability and long term disability insurance. To a lesser extent, the Individual, Family and Small Business segment includes amounts earned from our online sponsorship program that allows carriers to purchase advertising space in specific markets in a sponsorship area on our website, our licensing to third parties the use of our health insurance ecommerce technology and our delivery and sale to third parties of individual and family health insurance leads generated by our ecommerce platforms and our marketing activities. Marketing and advertising, customer care and enrollment, technology and content and general and administrative operating expenses that are directly attributable to a segment are reported within the applicable segment. Indirect marketing and advertising, customer care and enrollment and technology and content operating expenses are allocated to each segment based on usage. Other indirect general and administrative operating expenses are managed in a corporate shared services environment and, since they are not the responsibility of segment operating management, are not allocated to the two operating segments and are presented as a reconciling item to our consolidated financial results. Segment profit is calculated as total revenue for the applicable segment less direct and allocated marketing and advertising, customer care and enrollment, technology and content and general and administrative operating expenses, excluding stock-based compensation expense, depreciation and amortization expense, amortization of intangible assets and impairment, restructuring and other charges. |
Use of Estimates | Use of Estimates – The preparation of consolidated financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. On an ongoing basis, we evaluate our estimates, including those related to, but not limited to, the useful lives of intangible assets, fair value of investments, recoverability of intangible assets, the commissions we expect to collect for each approved member cohort, valuation allowance for deferred income taxes, provision for income taxes and the assumptions used in determining stock-based compensation. We base our estimates of the carrying value of certain assets and liabilities on historical experience and on various other assumptions that we believe to be reasonable. Actual results may differ from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents – Our cash and cash equivalents were held in cash depository accounts with major financial institutions or invested in high quality, short-term liquid investments having original maturities of 90 days or less from the date of purchase. Cash and cash equivalents are stated at fair value. The Company's restricted cash balances are not material and are primarily used to collateralize letters of credit related to certain lease commitments. |
Property and Equipment | Property and Equipment – Property and equipment are stated at cost, less accumulated depreciation and amortization. Finance lease amortization expenses are included in depreciation expense in our Consolidated Statements of Comprehensive Income (Loss). Maintenance and minor replacements are expensed as incurred. Depreciation and amortization expenses are computed using the straight-line method based on estimated useful lives as follows: Computer equipment and software 3 to 5 years Office equipment and furniture 5 years Leasehold improvements* 5 to 10 years _______ * Lesser of useful life or related lease term See Note 3 – Supplemental Financial Statement Information of the Notes to Consolidated Financial Statements for additional information regarding our property and equipment. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets – Goodwill represents the excess of the consideration paid over the estimated fair value of assets acquired and liabilities assumed in a business combination. We test our goodwill for impairment on an annual basis in the fourth quarter of each year or whenever events or changes in circumstances indicate that the asset may be impaired. Factors that we consider in deciding when to perform an impairment test include significant negative industry or economic trends or significant changes or planned changes in our use of the intangible assets. Our goodwill is allocated among our two segments, (1) Medicare and (2) Individual, Family and Small Business. All of our goodwill resulting from our prior business combinations was allocated to the Medicare segment. Goodwill and intangible assets are considered non-financial assets and therefore, subsequent to their initial recognition are not revalued at fair value each reporting period unless an impairment charge is recognized. As of December 31, 2021, we performed a goodwill impairment assessment, which included both qualitative and quantitative assessments. Our assessment included a comparison of carrying value to an estimated fair value using a market approach based on our market capitalization. Based on this assessment, we concluded the fair value of our Medicare segment was below the carrying value primarily due to the change in our market valuation at the time and financial performance and recorded a $40.2 million impairment of our goodwill, which was recognized in the "Impairment, restructuring and other charges" line in the Consolidated Statements of Comprehensive Income (Loss). As a result of this impairment, we had no goodwill balance on our Consolidated Balance Sheets at either December 31, 2021 and 2022. There was no goodwill impairment identified for the year ended December 31, 2020. We must make subjective judgments in determining the independent cash flows that can be related to specific asset groupings. In addition, we must make subjective judgments regarding the remaining useful lives of assets with finite useful lives. When we determine that the useful life of an asset is shorter than we had originally estimated, we accelerate the rate of amortization over the assets’ new, remaining useful life. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate a potential reduction in their fair values below their respective carrying amounts. Intangible assets with finite useful lives, which include purchased technology, pharmacy and customer relationships, trade names, and certain trademarks, are amortized over their estimated useful lives. See Note 3 – Supplemental Financial Statement Information of the Notes to Consolidated Financial Statements for additional information regarding our intangible assets and related impairment. |
Other Long-Lived Assets | Other Long-Lived Assets – We evaluate other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. |
Revenue Recognition | Revenue Recognition – We account for revenue under ASC 606 – Revenue from Contracts with Customers . Our revenue consists of commission revenue and other revenue. The core principle of ASC 606 is to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services. Accordingly, we recognize revenue for our services through the application of the following steps: • Identification of the contract, or contracts, with a customer. • Identification of the performance obligations in the contract. • Determination of the transaction price. • Allocation of the transaction price to the performance obligations in the contract. • Recognition of revenue when, or as, we satisfy a performance obligation. Commission Revenue. Our commission revenue results from approval of an application from health insurance carriers, which we define as our customers under ASC 606. Our commission revenue is primarily comprised of commissions from health insurance carriers which is computed using the estimated constrained lifetime value of commission payments that we expect to receive. Included in commissions are regular administrative payments we receive with respect to administrative services. We estimate commission revenue for each insurance product by using a portfolio approach to a group of approved members by plan type and the effective month of the relevant plan, which we refer to as “cohorts”. We recognize revenue for plans approved during the period by applying the latest estimated constrained lifetime value (“LTV”) for that product. We recognize adjustment revenue for plans approved in prior periods when changes in assumptions for constrained LTV calculations are made and when there is sufficient evidence demonstrating a trend that is different from the estimated constrained LTV at the time of approval resulting in a change in estimate to expected cash collections. Net adjustment revenue consists of increases in revenue for certain prior period cohorts as well as reductions in revenue for certain prior period cohorts. We recognize positive adjustments to revenue to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. We assess the risk of significant revenue reversal based on statistical and qualitative analysis given historical information and current market conditions. Our commission revenue for each product line is based on a number of assumptions, which include, but are not limited to, estimating conversion of an approved member to a paying member, forecasting average plan duration and forecasting the commission amounts likely to be received per member. These assumptions are based on our analysis of historical trends for the different cohorts and incorporate management’s judgment in interpreting those trends and applying the constraints discussed below. For our Medicare commission revenue, which represented 88%, 86% and 86% of our total commission revenue for the years ended December 31, 2022, 2021 and 2020, respectively, the estimated average plan duration, which is the average length of time paying members are active on their plans, used to calculate Medicare health insurance plan LTVs historically has been approximately 3 years for Medicare Advantage plans, and approximately 4 to 5 years for both Medicare Supplement and Medicare Part D prescription drug plans. While the average plan duration has been approximately 3 years for Medicare Advantage plans, certain members may have a duration of up to approximately 14 years. The estimated average plan duration used to calculate the LTV for major medical individual and family health insurance plans historically has been approximately 1.5 to 2 years. For short term health insurance plan LTVs, the estimated average plan duration has been approximately six months. For all other ancillary health insurance plan LTVs, the estimated average plan duration has historically varied from 1 to 6 years. Constraints are applied to LTV for revenue recognition purposes to help ensure that the total estimated lifetime commissions expected to be collected for an approved member’s plan are recognized as revenue only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with future commissions receivable from the plan is subsequently resolved. Significant judgment can be involved in determining the constraint. To determine the constraints to be applied to LTV, we compare prior calculations of LTV to actual cash received and review the reasons for any variations. We then apply judgment in assessing whether the difference between historical cash collections and LTV is representative of differences that can be expected in future periods. We also analyze whether circumstances have changed and consider any known or potential modifications to the inputs into LTV in light of the factors that can impact the amount of cash expected to be collected in future periods, including but not limited to commission rates, carrier mix, plan duration, cancellations of insurance plans offered by health insurance carriers with which we have a relationship, changes in laws and regulations, and changes in the economic environment. We evaluate the appropriateness of our constraints on an annual basis, at least, and update our assumptions when we observe a sufficient amount of evidence that would suggest that the long-term expectation underlying the assumptions has changed. We re-compute LTVs for all outstanding cohorts on a quarterly basis. We continually review and monitor changes in the data used to estimate LTV and compare the cash received for each cohort to our original estimates at the time of approval. The fluctuations of cash received for each cohort as compared to our estimates and the fluctuations in LTV can be significant and may or may not be indicative of the need to adjust revenue for prior period cohorts. Changes in LTV may result in an increase or a decrease to revenue and a corresponding increase or decrease to contract assets – commissions receivable. We analyze these fluctuations and, to the extent we see changes in our estimates of the cash commission collections that we believe are indicative of an increase or decrease to prior period LTVs, we adjust revenue for the affected cohorts at the time such determination is made and when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. As we accumulate more historical data, we continue to enhance our LTV estimation models using statistical tools to increase the accuracy of LTV estimates with an emphasis on improving member attrition forecasting. The enhancements to the LTV estimation model provide greater statistical certainty on expected cash collections, particularly for earlier period cohorts where there is more historical data available. For both Medicare Advantage and Medicare Part D prescription drug plans, we receive a fixed, annual commission payment from insurance carriers generally once the plan is approved by the carrier and either a fixed, monthly, or annual commission payment beginning with and subsequent to the second plan year. In the first plan year of a Medicare Advantage and Medicare Part D prescription drug plan, after the health insurance carrier approves the application but during the effective year of the plan, we are paid a fixed commission that is prorated for the number of months remaining in the calendar year. Additionally, if the plan is the first Medicare Advantage or Medicare Part D prescription drug plan issued to the member, we may receive a higher commission rate that covers a full 12-month period, regardless of the month the plan was effective. We receive commissions for Medicare Advantage and Medicare Part D prescription drug plans for which we are the broker of record, typically until either the policy is cancelled or we otherwise do not remain the agent on the policy. For individual and family, Medicare Supplement, small business and ancillary plans, our commissions generally represent a flat amount per member per month or a percentage of the premium amount collected by the carrier during the period that a member maintains coverage under a plan. Premium-based commissions are reported to us after the premiums are collected by the carrier, generally on a monthly basis. We generally continue to receive the commission payment from the relevant insurance carrier until the health insurance plan is cancelled or we otherwise do not remain the agent on the policy. For Medicare-related, individual and family and ancillary health insurance plans, our services are complete once a submitted application is approved by the relevant health insurance carrier. Accordingly, we recognize commission revenue based upon the total estimated lifetime commissions we expect to receive for selling the plan after the carrier approves an application, net of an estimated constraint. We refer to these as estimated and constrained LTVs for the plan. We provide annual services in selling and renewing small business health insurance plans; therefore, we recognize small business health insurance plan commission revenue at the time the plan is approved by the carrier, and when it renews each year thereafter, equal to the estimated commissions we expect to collect from the plan over the following 12 months. See Note 2 – Revenue of the Notes to Consolidated Financial Statements for additional information regarding our commission revenue. Other Revenue. Our non-Medicare plan related sponsorship and advertising program allows carriers to purchase advertising space in specific markets in a sponsorship area on our website. In return, we are typically paid a fee, which is recognized over the period that advertising is displayed, and often a performance fee based on metrics such as submitted health insurance applications, which is recognized when the service has been performed. We also offer Medicare advertising and other services, which include, among other things, marketing and website development, hosting and maintenance. In these instances, we are typically paid a fixed, up-front fee, which we recognize as revenue ratably over the service period as service is performed. Our commercial technology licensing business allows carriers the use of our ecommerce platform to offer their own health insurance policies on their websites and agents to utilize our technology to power their online quoting, content and application submission processes. Typically, we are paid a one-time implementation fee, which we recognize on a straight-line basis over the estimated term of the customer relationship, and a performance fee based on metrics such as submitted health insurance applications. The performance fees are based on performance criteria. In instances where the performance criteria data is tracked by us, we recognize revenue in the period of performance and when all other revenue recognition criteria has been met. In instances where the performance criteria data is tracked by the third party, we recognize revenue when reversal of such amounts is not likely to occur. Incremental Costs to Obtain a Contract. Our sales compensation plans, which are directed at converting leads into approved members, represent fulfillment costs and not costs to obtain a contract with a customer. Additionally, we reviewed compensation plans related to personnel responsible for identifying new health insurance carriers and entering into contracts with new health insurance carriers and concluded that no incremental costs are incurred to obtain such contracts. Therefore, costs related these compensation plans are expensed as incurred. Deferred Revenue – Deferred revenue includes deferred fees and amounts billed to or collected from advertising, sponsorship or technology licensing customers in advance of our performing our service for such customers. It also includes the amount by which both unbilled and billed services provided under our technology licensing arrangements exceed the revenue recognized to date. |
Cost of Revenue | Cost of Revenue – Included in cost of revenue are payments related to health insurance policies sold to members who were referred to our website by marketing partners with whom we have revenue-sharing arrangements. In order to enter into a revenue-sharing arrangement, marketing partners must be licensed to sell health insurance in the state where the policy is sold. Costs related to revenue-sharing arrangements are expensed as the related revenue is recognized. |
Marketing and Advertising Expenses | Marketing and Advertising Expenses – Marketing and advertising expenses consist primarily of member acquisition expenses associated with our direct, marketing partner and online advertising member acquisition channels, in addition to compensation and other expenses related to marketing, business development, partner management, public relations and carrier relations personnel who support our offerings. We recognize direct marketing expenses in our direct member acquisition channel in the period in which they are incurred. We recognize online marketing expenses associated with search advertising in the period in which the consumer clicks on the advertisement. Advertising costs incurred in the years ended December 31, 2022, 2021 and 2020 totaled $169.1 million, $240.4 million, and $178.9 million, respectively. Our direct channel expenses primarily consist of costs for direct mail, email marketing, online marketing and television and radio advertising. Advertising costs for our direct channel are expensed the first time the related advertising takes place. Our marketing partner channel expenses primarily consist of fees paid to marketing partners with which we have a relationship. Our online advertising channel expenses primarily consist of paid keyword search advertising on search engines and retargeting campaigns. Advertising costs for our marketing partner channel and our online advertising channel are expensed as incurred. |
Research and Development Expenses | Research and Development Expenses – Research and development expenses consist primarily of compensation and related expenses incurred for employees on our engineering and technical teams, which are expensed as incurred. |
Internal-Use Software and Website Development Costs | Internal-Use Software and Website Development Costs – We capitalize costs of materials, consultants and compensation and benefits costs of employees who devote time to the development of internal-use software and websites during the application development stage. The amortization expenses of these assets are recorded in technology and content. Our judgment is required in determining the point at which various projects enter the phases at which costs may be capitalized, in assessing the ongoing value of the capitalized costs and in determining the estimated useful lives over which the costs are amortized, which is generally 3 years. For the years ended December 31, 2022, 2021 and 2020, we capitalized internal-use software and website development costs of $17.2 million, $19.6 million and $18.0 million respectively, and recorded amortization expense of $17.3 million, $12.9 million, and $7.8 million, respectively. Capitalized internal-use software and website development costs are included in Other Assets on our Consolidated Balance Sheets and were $31.3 million as of December 31, 2022 and 2021. See Note 5 - Equity of the Notes to Consolidated Financial Statements for the amount of stock-based compensation capitalized for internal-use software. |
Stock-Based Compensation | Stock-Based Compensation – We grant stock-based awards to officers and certain other employees of the Company and non-employee directors of the Company. The stock-based awards have consisted of stock options and restricted stock units. We recognize stock-based compensation expense in the accompanying Consolidated Statements of Comprehensive Income (Loss) based on the fair value of our stock-based awards over their respective requisite service periods, typically the vesting period, which is generally four years for service-based awards or the one-year anniversary of achieving performance criteria for performance and market-based awards. Stock Options . Our stock options have consisted of service, performance and market-based awards and have exercise prices equal to the market price of the underlying common shares on the date of grant and a term of seven years. The estimated grant date fair value of our stock options is estimated using the Black-Scholes option-pricing model and a single option award approach. The weighted-average expected term for stock options granted is calculated using historical option exercise behavior. The dividend yield is determined by dividing the expected per share dividend during the coming year by the grant date stock price. Through December 31, 2022, we had not declared or paid any cash dividends to common stockholders. We base the risk-free interest rate on the implied yield currently available on U.S. Treasury zero-coupon issues with a remaining term equal to the expected term of our stock options. Expected volatility is determined using a combination of the implied volatility of publicly traded options in our stock and historical volatility of our stock price. Restricted Stock Units. Our restricted stock units have consisted of service, performance and market-based awards and each represents a contingent right to receive a share of our common stock upon predetermined criteria. The fair value for service and performance based restricted stock units is estimated on the date of grant based on the current market price of our common shares. Our market-based restricted stock units are contingent upon the attainment of certain stock prices generally over a four-year performance period. These awards generally vest on the one-year anniversary of the date of achievement, subject to the employee’s continued service through the vesting date. The grant date fair value of market-based restricted stock awards is determined using the Monte-Carlo simulation model and requires the input of subjective assumptions. The weighted-average expected term is based on the likelihood of achievement using historical behavior. The dividend yield is based on our dividend payment history and expectation of future dividend payments. Through December 31, 2022, we had not declared or paid any cash dividends to common stockholders. We base the risk-free interest rate on the implied yield currently available on U.S. Treasury zero-coupon issues with a remaining term equal to the length of the remaining performance period. Expected volatility is determined using a combination of the implied volatility of publicly traded options in our stock and historical volatility of our stock price. The estimated attainment of performance-based awards and related expense is based on the achievement of certain financial targets over a predetermined performance period, subject to continued service through the vesting date and ultimately are subject to the discretion of the Company’s compensation committee. The assumptions used in calculating the fair value of stock-based payment awards and expected attainment of performance-based awards represent our best estimates, but these estimates involve inherent uncertainties and the application of management judgment. We will continue to use judgment in evaluating the expected term and volatility related to our own stock-based awards on a prospective basis and incorporating these factors into the model. Changes in key assumptions could significantly impact the valuation of such instruments. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share – Our Series A preferred stock is considered a participating security which requires the use of the two-class method for the computation of basic and diluted per share amounts. Under the two-class method, earnings available to common stockholders for the period are allocated between common stockholders and participating securities according to dividends accumulated and participation rights in undistributed earnings. Net loss attributable to common stockholders is not allocated to the convertible preferred stock as the holder of the Series A preferred stock does not have a contractual obligation to share in losses. Basic net income (loss) attributable to common stockholders per share is computed by dividing net income (loss) available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted net income (loss) attributable to common stockholders per share is computed by dividing the net income (loss) available to common stockholders for the period by the weighted average number of common and common equivalent shares outstanding during the period. Diluted net income (loss) attributable to common stockholders per share reflects all potential dilutive common stock equivalent shares, including conversion of preferred stock, stock options, restricted stock units and shares to be issued under our employee stock purchase program. |
401(k) Plan | 401(k) Plan – Our board of directors adopted a defined contribution retirement plan ("401(k) Plan") in 1998, which qualifies under Section 401(k) of the Internal Revenue Code of 1986. Participation in the 401(k) Plan is available to substantially all employees in the United States. Employees may contribute up to 85% of their salary, subject to applicable annual Internal Revenue Code limits and are permitted to make both pre-tax and after-tax contributions. Employee contributions are fully vested when contributed. We contribute a maximum of 100% of the first 3% of compensation a participant contributes to the 401(k) Plan, which vests immediately. Our matching contributions to the 401(k) Plan are discretionary and are expensed as incurred. |
Income Taxes | Income Taxes – We account for income taxes using the liability method. Deferred income taxes are determined based on the differences between the financial reporting and tax bases of assets and liabilities, using enacted statutory tax rates in effect for the year in which the differences are expected to reverse. We utilize a two-step approach for evaluating uncertain tax positions. Step one, Recognition , requires a company to determine if the weight of available evidence indicates that a tax position is more likely than not to be sustained upon audit, including resolution of related appeals or litigation processes, if any. Step two, Measurement , is based on the largest amount of benefit, which is more likely than not to be realized on ultimate settlement. We record interest and penalties related to uncertain tax positions as income tax expense in the consolidated financial statements. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Reference Rate Reform (Topic 848) — In March 2020, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying U.S. GAAP to contract modifications and other transactions affected by reference rate reform if certain criteria are met in order to ease the financial reporting burden as the market transitions from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates expected to be discontinued to alternative reference rates. The FASB further issued ASU 2021-01 in January 2021 to refine and clarify the scope of Topic 848. The election allows relief from remeasuring the contracts at modification or from reassessing a previous accounting determination. The guidance was effective upon issuance and may be applied through December 31, 2022. We elected the optional expedient under ASU 2020-04 and 2021-01 in the third quarter of 2022 upon the amendment to our term loan credit agreement, which transitions the use of LIBOR to the Secured Overnight Financing Rate ("SOFR"). The adoption of the standard allows entities to account for such modification as if the modification was not substantial and as a result, the implementation of this standard did not have a material impact on our consolidated financial statements. See Note 12 - Debt for additional information regarding the amendment to our term loan credit agreement. |
Leases | We account for leases in accordance with Accounting Standards Codification Topic 842, Leases. We determine if an arrangement is a lease at inception. Our lease portfolio is primarily composed of operating leases for corporate offices and are included in operating lease right-of-use (“ROU”) assets and lease liabilities on our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company's leases generally do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date. In determining the present value of lease payments, we utilized the assistance of third-party specialists to assist us in determining our yield curve based upon our credit rating, lease term and adjustment for security. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. |
Fair Value Measurements | We define fair value as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques we use to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. We classify the inputs used to measure fair value into the following hierarchy: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities; unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability. Level 3 Unobservable inputs for the asset or liability. |
Summary of Business and Signi_3
Summary of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Property, Plant and Equipment | Depreciation and amortization expenses are computed using the straight-line method based on estimated useful lives as follows: Computer equipment and software 3 to 5 years Office equipment and furniture 5 years Leasehold improvements* 5 to 10 years _______ * Lesser of useful life or related lease term |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue by Segment | The table below depicts the disaggregation of revenue by product and is consistent with how we evaluate our financial performance (in thousands): Year Ended December 31, 2022 2021 2020 Medicare Medicare Advantage $ 293,562 $ 393,868 $ 374,981 Medicare Supplement 17,419 24,272 48,526 Medicare Part D 7,171 7,361 12,909 Total Medicare 318,152 425,501 436,416 Individual and Family (1) Non-Qualified Health Plans 12,430 23,579 20,813 Qualified Health Plans 5,435 9,295 5,856 Total Individual and Family 17,865 32,874 26,669 Ancillary Short-term 4,419 6,112 9,494 Dental 3,489 10,216 9,354 Vision 1,050 2,250 3,896 Other 2,508 2,776 4,392 Total Ancillary 11,466 21,354 27,136 Small Business 11,842 10,720 9,568 Commission Bonus and Other 1,921 2,670 8,400 Total Commission Revenue 361,246 493,119 508,189 Other Revenue Sponsorship and Advertising Revenue 40,960 40,560 68,383 Other 3,150 4,520 6,202 Total Other Revenue 44,110 45,080 74,585 Total Revenue $ 405,356 $ 538,199 $ 582,774 _______ (1) We define our Individual and Family plan offerings as major medical individual and family health insurance plans, which does not include Medicare-related, small business or ancillary plans. Individual and family health insurance plans include both qualified and non-qualified plans. Qualified health plans are individual and family health insurance plans that meet the requirements of the Affordable Care Act and are offered through the government-run health insurance exchange in the relevant jurisdiction. Non-qualified health plans are Individual and Family health insurance plans that meet the requirements of the Affordable Care Act and are not offered through the exchange in the relevant jurisdiction. Individuals that purchase non-qualified health plans cannot receive a subsidy in connection with the purchase of non-qualified plans. Commission revenue by segment is presented in the table below (in thousands): Years Ended December 31, 2022 2021 2020 Medicare Commission Revenue from Members Approved During the Period $ 322,506 $ 437,738 $ 440,722 Net Commission Revenue from Members Approved in Prior Periods (1) (2,326) (8,414) 5,665 Total Medicare Segment Commission Revenue $ 320,180 $ 429,324 $ 446,387 Individual, Family and Small Business Commission Revenue from Members Approved During the Period $ 22,358 $ 25,078 $ 21,971 Commission Revenue from Renewals of Small Business Members during the Period (2) 9,981 8,564 6,727 Net Commission Revenue from Members Approved in Prior Periods (1) 8,727 30,153 33,104 Total Individual, Family and Small Business Segment Commission Revenue $ 41,066 $ 63,795 $ 61,802 Total Commission Revenue from Members Approved During the Period $ 344,864 $ 462,816 $ 462,693 Commission Revenue from Renewals of Small Business Members During the Period (2) 9,981 8,564 6,727 Total Net Commission Revenue from Members Approved in Prior Periods (1)(3) 6,401 21,739 38,769 Total Commission Revenue $ 361,246 $ 493,119 $ 508,189 _______ (1) These amounts reflect our revised estimates of cash collections for certain members approved prior to the relevant reporting period that are recognized as adjustments to revenue within the relevant reporting period. The net adjustment revenue includes both increases in revenue for certain prior period cohorts as well as reductions in revenue for certain prior period cohorts. (2) Commission revenue from renewals of small business members during the period was previously included in net commission revenue from members approved in prior periods. However, beginning in the first quarter of 2021, we enhanced our reporting by separately disclosing commission revenue from renewals of small business members during the period in a separate line item. (3) The impact of total net commission revenue from members approved in prior periods for the years ended December 31, 2022, 2021 and 2020 was $0.23, $0.81 and $1.49 per basic share, respectively, or $0.23, $0.81 and $1.44 per diluted share, respectively. The total reductions to revenue from members approved in prior periods were $16.5 million, $28.8 million and $17.3 million for the years ended December 31, 2022, 2021 and 2020, respectively. These reductions to revenue primarily related to the Medicare segment. |
Supplemental Financial Statem_2
Supplemental Financial Statement Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Cash, Cash Equivalents and Restricted Cash | Our cash, cash equivalent, and restricted cash balances are summarized as follows (in thousands): December 31, 2022 December 31, 2021 Cash $ 17,776 $ 33,253 Cash equivalents 126,625 48,673 Cash and cash equivalents 144,401 81,926 Restricted cash 3,239 3,239 Total cash, cash equivalents and restricted cash $ 147,640 $ 85,165 |
Schedule of Cash, Cash Equivalents and Restricted Cash | Our cash, cash equivalent, and restricted cash balances are summarized as follows (in thousands): December 31, 2022 December 31, 2021 Cash $ 17,776 $ 33,253 Cash equivalents 126,625 48,673 Cash and cash equivalents 144,401 81,926 Restricted cash 3,239 3,239 Total cash, cash equivalents and restricted cash $ 147,640 $ 85,165 |
Schedule of Changes in Allowance for Credit Losses | The change in the allowance for credit losses is summarized as follows (in thousands): December 31, 2022 December 31, 2021 Beginning balance $ 2,198 $ 2,026 Change in allowance 200 172 Ending balance $ 2,398 $ 2,198 |
Schedule of Commissions Receivable | Our contract assets – commission receivable activities, net of credit loss allowances are summarized as follows (in thousands): Year Ended December 31, 2022 Medicare Segment IFP/SMB Segment Total Beginning balance $ 837,474 $ 70,788 $ 908,262 Commission revenue from members approved during the period 322,506 22,358 344,864 Commission revenue from renewals of small business members during the period — 9,981 9,981 Net commission revenue from members approved in prior periods (2,326) 8,727 6,401 Cash receipts (340,426) (44,578) (385,004) Net change in credit loss allowance (185) (15) (200) Ending balance $ 817,043 $ 67,261 $ 884,304 Year Ended December 31, 2021 Medicare Segment IFP/SMB Segment Total Beginning balance $ 739,637 $ 52,768 $ 792,405 Commission revenue from members approved during the period 437,738 25,078 462,816 Commission revenue from renewals of small business members during the period — 8,564 8,564 Net commission revenue from members approved in prior periods (8,414) 30,153 21,739 Cash receipts (331,328) (45,762) (377,090) Net change in credit loss allowance (159) (13) (172) Ending balance $ 837,474 $ 70,788 $ 908,262 |
Schedules of Concentration of Risk, by Risk Factor | Carriers that represented 10% or more of our total contract assets – commission receivable and accounts receivable balances are summarized as of the dates presented below: December 31, 2022 December 31, 2021 Humana 26 % 25 % UnitedHealthCare (1) 24 % 23 % Aetna (1) 16 % 17 % Centene (1) 8 % 10 % _______ |
Schedule of Prepaid Expenses And Other Current Assets | Our prepaid expenses and other current assets are summarized as of the periods presented below (in thousands): December 31, 2022 December 31, 2021 Prepaid maintenance contracts $ 5,211 $ 6,246 Prepaid expenses 2,858 11,379 Prepaid insurance 1,893 2,161 Prepaid licenses 1,116 3,076 Other current assets 223 922 Prepaid expenses and other current assets $ 11,301 $ 23,784 |
Schedule of Property And Equipment | Our property and equipment are summarized as of the periods presented below (in thousands): December 31, 2022 December 31, 2021 Computer equipment and software $ 8,727 $ 13,243 Office equipment and furniture 3,556 6,854 Leasehold improvements 5,992 7,458 Property and equipment, gross 18,275 27,555 Less accumulated depreciation and amortization (12,774) (15,450) Property and equipment, net $ 5,501 $ 12,105 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Classifications of Fair Value Hierarchy | We classify the inputs used to measure fair value into the following hierarchy: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities; unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability. Level 3 Unobservable inputs for the asset or liability. |
Schedule of Financial Assets Measured at Fair Value on a Recurring Basis | Our financial assets measured at fair value on a recurring basis are summarized below by their classification within the fair value hierarchy as of the dates presented (in thousands): December 31, 2022 Carrying Value Level 1 Level 2 Level 3 Total Assets Cash equivalents Money market funds $ 13,015 $ 13,015 $ — $ — $ 13,015 Commercial paper 112,268 — 112,268 — 112,268 Agency bonds 1,342 — 1,342 — 1,342 Total assets measured at fair value $ 126,625 $ 13,015 $ 113,610 $ — $ 126,625 December 31, 2021 Carrying Value Level 1 Level 2 Level 3 Total Assets Cash equivalents Money market funds $ 9,217 $ 9,217 $ — $ — $ 9,217 Commercial paper 39,456 — 39,456 — 39,456 Short-term marketable securities Commercial paper 38,801 — 38,801 — 38,801 Corporate bond 2,505 — 2,505 — 2,505 Total assets measured at fair value $ 89,979 $ 9,217 $ 80,762 $ — $ 89,979 |
Schedule of Contractual Maturities | The following table summarizes our cash equivalents and available-for-sale debt securities by contractual maturity (in thousands): As of December 31, 2022 As of December 31, 2021 Amortized Cost Fair Value Amortized Cost Fair Value Due in 1 year $ 126,664 $ 126,625 $ 89,988 $ 89,979 |
Schedule of Unrealized Gains and Losses | Unrealized gains and losses on available-for-sale debt securities that are not credit related are included in accumulated other comprehensive income (loss) and summarized as follows: December 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents Money market funds $ 13,015 $ — $ — $ 13,015 Commercial paper 112,307 — (39) 112,268 Agency bonds 1,342 — — 1,342 Total $ 126,664 $ — $ (39) $ 126,625 December 31, 2021 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents Money market funds $ 9,217 $ — $ — $ 9,217 Commercial paper 39,458 — (2) 39,456 Short-term marketable securities Commercial paper 38,808 — (7) 38,801 Corporate bond 2,505 — — 2,505 Total $ 89,988 $ — $ (9) $ 89,979 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Common Stock Shares Reserved For Future Issuance | Shares of authorized but unissued common stock reserved for future issuance were as follows (in thousands): December 31, 2022 December 31, 2021 Stock options issued and outstanding 226 424 Restricted stock units issued and outstanding 2,480 2,384 Shares available for grant 5,165 1,159 Total shares reserved 7,871 3,967 |
Schedule of Stock Option Share Activity Under Stock Plans | The following table summarizes activity under our A&R 2014 Plan and A&R 2021 Inducement Plan for the year ended December 31, 2022 (in thousands): Balance at December 31, 2021 (1) 1,159 Additional shares authorized 5,000 Restricted stock units granted (2) (2,423) Restricted stock units cancelled (3) 1,308 Options cancelled 121 Balance at December 31, 2022 5,165 _______ (1) Shares available for grant do not include treasury stock shares that could be granted if we determined to do so. (2) Includes grants of restricted stock units with service, performance-based or market-based vesting criteria. |
Schedule of Stock-Based Compensation Expense By Award Type | The following table summarizes stock-based compensation expense recognized for the years presented below (in thousands): Year Ended December 31, 2022 2021 2020 Restricted stock units* $ 18,713 $ 30,512 $ 23,729 Common stock options 1,154 707 1,097 Employee stock purchase program 449 1,638 346 Total stock-based compensation expense $ 20,316 $ 32,857 $ 25,172 Related tax benefit recognized 4,747 7,746 5,984 _______ * Amounts include market-based and performance-based RSUs. |
Schedule of Stock-Based Compensation Expense By Operating Function | The following table summarizes stock-based compensation expense by operating function for the years presented below (in thousands): Year Ended December 31, 2022 2021 2020 Marketing and advertising $ 1,901 $ 8,660 $ 5,102 Customer care and enrollment 2,096 2,836 2,723 Technology and content 6,015 10,013 5,460 General and administrative 10,304 11,348 11,887 Total stock-based compensation expense 20,316 32,857 25,172 Amount capitalized for internal-use software 1,885 2,621 2,007 Total stock-based compensation $ 22,201 $ 35,478 $ 27,179 |
Schedule of Activity Under Stock Plans | The following table summarizes stock option activity (in thousands, except weighted-average exercise price and weighted-average remaining contractual life data): Number of Stock Options (1) Weighted Average Exercise Price Weighted-Average Remaining Contractual Life (years) Aggregate Intrinsic Value (2) Outstanding as of December 31, 2021 424 $ 29.07 3.8 $ 2,053 Granted — $ — Exercised (77) $ 13.60 Forfeited (121) $ 20.28 Outstanding balance as of December 31, 2022 226 $ 39.07 5.3 $ — Vested and expected to vest as of December 31, 2022 175 $ 38.51 5.2 $ — Exercisable as of December 31, 2022 57 $ 33.28 4.0 $ — _______ (1) Includes certain stock options with service, performance-based or market-based vesting criteria. (2) The aggregate intrinsic value is calculated as the product between eHealth’s closing stock price as of December 31, 2022 and 2021 and the exercise price of in-the-money options as of those dates. The following table provides information pertaining to our stock options for the years presented below (in thousands, except weighted-average fair values): Year Ended December 31, 2022 2021 2020 Weighted average fair value of options granted n/a $ 41.03 n/a Total fair value of options vested $ 835 $ 797 $ 1,367 Intrinsic value of options exercised $ 694 $ 5,182 $ 8,127 |
Schedule of Fair Value Of Stock Options Granted, Valuation Assumptions | For the options granted during the year ended December 31, 2021, the fair value of stock options granted to employees was estimated using the Black-Scholes option-pricing model and with the following weighted average assumptions for the year presented below: Year Ended December 31, 2021 Expected term (years) 7.0 Expected volatility 69.1% Expected dividend yield —% Risk-free interest rate 1.3% |
Schedule of Restricted Stock Unit Activity Under Stock Plans | The following table summarizes restricted stock unit activity (in thousands, except weighted-average grant date fair value and weighted-average remaining contractual life data): Number of Restricted Stock Units (1) Weighted-Average Grant Date Fair Value Weighted-Average Remaining Service Period Aggregate Intrinsic Value (2) Outstanding as of December 31, 2021 2,384 $ 49.56 1.6 $ 60,789 Granted 2,423 $ 9.92 Vested (1,019) $ 30.23 Forfeited (1,308) $ 48.63 Outstanding as of December 31, 2022 2,480 $ 19.27 1.4 $ 12,004 _______ (1) Includes certain restricted stock units with service, performance-based or market-based vesting criteria. |
Schedule of Restricted Stock Units, Valuation Assumptions | The weighted-average fair value of the market-based restricted stock units was determined using the Monte Carlo simulation model using the following weighted average assumptions: Year Ended December 31, 2022 2021 2020 Expected term (years) 2.1 2.0 3.5 Expected volatility 68.7% 66.0% 64.4% Expected dividend yield —% —% —% Risk-free interest rate 2.5% 0.9% 0.3% Weighted-average grant date fair value $9.66 $46.36 $93.85 |
Convertible Preferred Stock (Ta
Convertible Preferred Stock (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Temporary Equity Disclosure [Abstract] | |
Schedule of Convertible Preferred Stock | The following table summarizes the proceeds and changes to our Series A preferred stock (in thousands): Gross proceeds $ 225,000 Less: issuance costs (10,975) Net proceeds $ 214,025 Balance as of Closing Date $ 214,025 Accrued paid-in-kind dividends 12,206 Change in preferred stock redemption value 6,361 Balance as of December 31, 2021 232,592 Accrued paid-in-kind dividends 19,357 Change in preferred stock redemption value 11,335 Balance as of December 31, 2022 $ 263,284 |
Net Income (Loss) Per Share A_2
Net Income (Loss) Per Share Attributable to Common Stockholders (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Computation Of Basic And Diluted Net Income (Loss) Per Share | The following table sets forth the computation of basic and diluted net income (loss) attributable to common stockholders per share (in thousands, except per share amounts): Year Ended December 31, 2022 2021 2020 Basic Net income (loss) attributable to common stockholders $ (119,414) $ (122,942) $ 45,450 Shares used in per share calculation – basic 27,359 26,781 26,025 Net income (loss) attributable to common stockholders per share – basic $ (4.36) $ (4.59) $ 1.75 Diluted: Net income (loss) attributable to common stockholders $ (119,414) $ (122,942) $ 45,450 Shares used in per share calculation – basic 27,359 26,781 26,025 Dilutive effect of common stock — — 989 Shares used in per share calculation — diluted 27,359 26,781 27,014 Net income (loss) attributable to common stockholders per share – diluted $ (4.36) $ (4.59) $ 1.68 |
Schedule of Anti-dilutive Shares Excluded From Computation Of Net Income (Loss) Per Share | The number of weighted-average outstanding anti-dilutive shares that were excluded from the computation of diluted net income (loss) per share consisted of the following (in thousands): Year Ended December 31, 2022 2021 2020 Convertible preferred stock 3,102 1,905 — Restricted stock units* 1,551 1,078 151 Common stock options 271 333 — Employee stock purchase program 65 29 — Total 4,989 3,345 151 _______ * Amounts include market-based and performance-based RSUs. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments For Contractual Obligations | Our future minimum payments under non-cancellable contractual service and licensing obligations as of December 31, 2022 were as follows (in thousands): For the Years Ending December 31, 2023 $ 7,782 2024 2,519 2025 229 2026 — 2027 — Thereafter — Total $ 10,530 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The results of our operating segments are summarized for the periods presented below (in thousands): Year Ended December 31, 2022 2021 2020 Revenue: Medicare $ 361,687 $ 471,217 $ 516,762 Individual, Family and Small Business 43,669 66,982 66,012 Total revenue $ 405,356 $ 538,199 $ 582,774 Segment profit (loss) Medicare (1) $ (9,873) $ (12,079) $ 108,787 Individual, Family and Small Business (1) 21,438 45,705 40,315 Segment profit 11,565 33,626 149,102 Corporate (53,238) (56,325) (57,664) Stock-based compensation expense (20,316) (32,857) (25,172) Depreciation and amortization (2) (21,108) (18,331) (11,450) Impairment, restructuring and other charges (19,616) (51,222) — Amortization of intangible assets — (536) (1,493) Other income (expense), net (3,676) 755 666 Income (loss) before income taxes $ (106,389) $ (124,890) $ 53,989 (1) During the first quarter of 2021, we revised the calculation of segment profit by excluding amortization of capitalized software development costs to enhance comparability of our financial metrics with peer companies. The amortization of capitalized software was $17.3 million, $12.9 million, and $7.8 million for the years ended December 31, 2022, 2021 and 2020, respectively. (2) Depreciation and amortization has been adjusted to include amortization of software development costs. |
Schedule of Long Lived Assets By Geographical Areas | Long-lived assets by geographical area are summarized as follows (in thousands): December 31, 2022 December 31, 2021 United States $ 37,915 $ 45,134 China 381 595 Total $ 38,296 $ 45,729 |
Schedule of Revenue By Major Customers | Carriers representing 10% or more of our total revenue are summarized as follows: Year Ended December 31, 2022 2021 2020 Humana 23 % 19 % 22 % UnitedHealthcare (1) 22 % 20 % 21 % Aetna (1) 12 % 18 % 15 % Centene (1) 8 % 12 % 10 % _______ |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Lease Cost and Supplemental Information | Supplemental information related to leases are as follows (in thousands): Year Ended December 31, 2022 2021 Cash paid for amounts included in the measurement of operating lease liabilities $ 7,697 $ 7,640 Non-cash investing activities relating to operating lease right-of-use assets $ 3,493 $ — December 31, 2022 December 31, 2021 Weighted-average remaining lease term of operating leases 5.7 years 6.3 years Weighted-average discount rate used to recognize operating lease right-of-use-assets 5.6 % 5.4 % |
Schedule of Operating Lease Maturities | As of December 31, 2022, maturities of operating lease liabilities are as follows (in thousands): Year ending December 31, 2023 $ 8,606 2024 8,404 2025 8,610 2026 7,396 2027 6,773 Thereafter 8,201 Total lease payments (1) 47,990 Less imputed interest (7,317) Total $ 40,673 _______ (1) Noncancellable sublease rent payments for the years ending December 31, 2023, 2024, 2025, 2026, 2027, and thereafter of $1.6 million, $2.1 million, $2.2 million, $2.2 million, $2.3 million, and $2.8 million, respectively, are not included in the table above. |
Impairment, Restructuring and_2
Impairment, Restructuring and Other Charges (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Impairment, Restructuring and Other Charges (Recoveries) | The following table details impairment, restructuring and other charges for each of the periods presented: Year Ended December 31, 2022 2021 2020 Asset impairment charges $ 12,102 $ — $ — Restructuring and reorganization charges 7,514 4,878 — Goodwill and intangible assets impairment — 46,344 — Impairment, restructuring and other charges $ 19,616 $ 51,222 $ — |
Schedule of Restructuring Charges | Our restructuring and reorganization charges and liabilities consist primarily of severance, transition and other related costs. The following table summarizes the cash-based restructuring and reorganization related liabilities (in thousands): December 31, 2022 Beginning balance $ 146 Restructuring and reorganization charges 7,514 Payments (7,294) Ending balance $ 366 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) Before Income Tax, Domestic And Foreign | The components of our income (loss) before provision for (benefit from) income taxes were as follows (in thousands): Year Ended December 31, 2022 2021 2020 United States $ (108,006) $ (125,876) $ 53,078 Foreign 1,617 986 911 Income (loss) before income taxes $ (106,389) $ (124,890) $ 53,989 |
Schedule of Components Of Income Tax Expense (Benefit) | The federal and state income tax provision (benefit) is summarized as follows (in thousands): Year Ended December 31, 2022 2021 2020 Current: Federal $ — $ — $ — State 514 858 88 Foreign 256 148 (361) Total current 770 1,006 (273) Deferred: Federal (16,382) (20,696) 7,303 State (2,055) (825) 1,245 Foreign — — 264 Total deferred (18,437) (21,521) 8,812 Provision for (benefit from) income taxes $ (17,667) $ (20,515) $ 8,539 |
Schedule of Effective Income Tax Rate Reconciliation | The effective tax rate of our provision for (benefit from) income taxes differs from the federal statutory rate as follows: Year Ended December 31, 2022 2021 2020 Statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 2.1 0.4 2.2 Stock-based compensation windfalls, net (4.5) (1.5) (7.9) Non-deductible stock-based compensation (0.7) (0.8) 2.2 Non-deductible lobbying expenses (0.3) (0.3) 0.8 Research and development credits 0.8 1.0 (2.2) Changes in valuation allowance (1.0) (0.6) 0.1 Foreign income tax and income inclusion (0.2) (0.1) (0.7) Goodwill impairment — (2.4) — Other permanent differences (0.6) (0.3) 0.3 Effective tax rate 16.6 % 16.4 % 15.8 % |
Schedule of Deferred Tax Assets And Liabilities | The tax effects of significant items comprising our deferred taxes as of December 31, 2022 and 2021 were as follows (in thousands): December 31, 2022 December 31, 2021 Deferred tax assets: Net operating losses $ 154,832 $ 149,689 Intangible assets 13,618 7,480 Research and development credits carryovers 11,384 9,954 Operating lease liabilities 10,015 10,146 Accruals and reserves 3,411 1,628 Stock-based compensation 1,387 4,642 Fixed assets 636 402 Other 1,093 394 Total deferred tax assets 196,376 184,335 Valuation allowance (4,287) (3,214) Total deferred tax assets net of valuation allowance 192,089 181,121 Deferred tax liabilities: Commissions receivable (217,919) (222,751) Right-of-use assets (6,529) (9,166) Total deferred tax liabilities (224,448) (231,917) Net deferred tax liabilities $ (32,359) $ (50,796) |
Schedule of Changes in Valuation Allowance | The change in our valuation allowance is summarized as follows for the years ended (in thousands): Deferred Tax Assets - Valuation Allowance Balance at beginning of year Provision for income taxes Write-offs and Deductions Balance at December 31, 2022 $ 3,214 $ 1,103 $ (30) $ 4,287 December 31, 2021 2,479 3,150 (2,415) 3,214 December 31, 2020 2,407 72 — 2,479 |
Schedule of Operating Loss Carryforwards | The net operating loss and tax credit carryforwards as of December 31, 2022 are summarized as follows (in thousands): Amount Expires Net operating losses, federal (with expiration) $ 39,194 2034-2037 Net operating losses, federal (without expiration) 592,947 Indefinite Net operating losses, state (with expiration) 396,918 2023-2042 Tax credits, federal 10,867 2023-2042 Tax credits, state 10,738 n/a |
Schedule of Tax Credit Carryforwards | The net operating loss and tax credit carryforwards as of December 31, 2022 are summarized as follows (in thousands): Amount Expires Net operating losses, federal (with expiration) $ 39,194 2034-2037 Net operating losses, federal (without expiration) 592,947 Indefinite Net operating losses, state (with expiration) 396,918 2023-2042 Tax credits, federal 10,867 2023-2042 Tax credits, state 10,738 n/a |
Schedule Of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of our unrecognized tax benefits is as follows (in thousands): Year Ended December 31, 2022 2021 2020 Beginning balance $ 8,551 $ 6,330 $ 4,709 Additions for tax positions of prior years 162 646 — Lapse of statute of limitations (86) (64) (8) Additions based on tax positions related to the current year 1,248 1,639 1,629 Ending balance $ 9,875 $ 8,551 $ 6,330 |
Summary of Business and Signi_4
Summary of Business and Significant Accounting Policies (Narrative) (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 USD ($) $ / shares | Dec. 31, 2022 USD ($) segment state insurance_carrier $ / shares | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2020 USD ($) $ / shares | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Number of health insurance carriers | insurance_carrier | 200 | |||
Number of states in which the Company is licensed to market and sell health insurance | state | 50 | |||
Total stock-based compensation expense | $ 20,316,000 | $ 32,857,000 | $ 25,172,000 | |
Cost of revenue | 1,647,000 | 1,992,000 | 4,083,000 | |
(Increase) decrease in net loss | $ 88,722,000 | $ 104,375,000 | $ (45,450,000) | |
Basic (in usd per share) | $ / shares | $ (4.36) | $ (4.59) | $ 1.75 | |
Diluted (in usd per share) | $ / shares | $ (4.36) | $ (4.59) | $ 1.68 | |
Number of operating segments | segment | 2 | |||
Goodwill impairment | $ 0 | |||
Goodwill | $ 0 | $ 0 | ||
Advertising expense | 169,100,000 | 240,400,000 | 178,900,000 | |
Research and development expense | 12,100,000 | 10,400,000 | 9,100,000 | |
Capitalized internal-use software and website development costs | 17,200,000 | 19,600,000 | 18,000,000 | |
Amortization of internally developed software | 17,263,000 | 12,901,000 | 7,756,000 | |
Capitalized internal-use software and development costs, net | $ 31,300,000 | $ 31,300,000 | ||
Maximum annual contributions per employee, percentage | 85% | |||
Matching contribution, percent of match | 100% | |||
Maximum matching contribution percentage | 3% | 3% | ||
Contribution amount | $ 3,800,000 | $ 4,200,000 | 3,500,000 | |
Service-Based Awards | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Vesting term for awards | 4 years | |||
Performance And Market-Based Awards | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Vesting term for awards | 1 year | |||
Common stock options | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Total stock-based compensation expense | $ 1,154,000 | 707,000 | $ 1,097,000 | |
Vesting term for awards | 7 years | |||
Market based restricted stock units | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Vesting term for awards | 4 years | |||
Period One | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Annual vesting percentage | 33.33% | |||
Period Two | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Annual vesting percentage | 33.33% | |||
Period Three | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Annual vesting percentage | 33.33% | |||
Internal-Use Software and Website Development Costs | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Useful life | 3 years | |||
Medicare | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Goodwill impairment | $ 40,200,000 | |||
Medicare | Medicare Advantage | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Average plan duration | 3 years | |||
Medicare | Medicare Advantage | Maximum | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Average plan duration | 14 years | |||
Medicare | Medicare Supplement | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Average plan duration | 4 years | |||
Medicare | Medicare Part D | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Average plan duration | 5 years | |||
Individual and Family | Maximum | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Average plan duration | 2 years | |||
Individual and Family | Minimum | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Average plan duration | 1 year 6 months | |||
Ancillary | Maximum | Short-term | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Average plan duration | 6 months | |||
Ancillary | Maximum | Other | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Average plan duration | 6 years | |||
Ancillary | Minimum | Other | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Average plan duration | 1 year | |||
Revenue from Contract with Customer | Product Concentration Risk | Medicare | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Concentration risk, percentage | 88% | 86% | 86% | |
Under-Recognition Of Stock-Based Compensation Expense | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Total stock-based compensation expense | $ 3,000,000 | |||
Over-Recognition Of Licensing Costs | License | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Cost of revenue | $ 1,500,000 | |||
Out-Of-Period Adjustments | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
(Increase) decrease in net loss | $ 1,500,000 | $ 1,500,000 | ||
Basic (in usd per share) | $ / shares | $ 0.06 | $ 0.05 | ||
Diluted (in usd per share) | $ / shares | $ 0.06 | $ 0.05 |
Summary of Business and Signi_5
Summary of Business and Significant Accounting Policies (Property and Equipment) (Details) | 12 Months Ended | |
Dec. 31, 2022 | ||
Computer equipment and software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 3 years | |
Computer equipment and software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 5 years | |
Office equipment and furniture | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 5 years | |
Leasehold improvements* | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 5 years | [1] |
Leasehold improvements* | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 10 years | [1] |
[1]Lesser of useful life or related lease term |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 405,356 | $ 538,199 | $ 582,774 | |
Sponsorship and Advertising Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 40,960 | 40,560 | 68,383 | |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 3,150 | 4,520 | 6,202 | |
Medicare | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 318,152 | 425,501 | 436,416 | |
Medicare | Medicare Advantage | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 293,562 | 393,868 | 374,981 | |
Medicare | Medicare Supplement | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 17,419 | 24,272 | 48,526 | |
Medicare | Medicare Part D | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 7,171 | 7,361 | 12,909 | |
Individual and Family | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | [1] | 17,865 | 32,874 | 26,669 |
Individual and Family | Non-Qualified Health Plans | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | [1] | 12,430 | 23,579 | 20,813 |
Individual and Family | Qualified Health Plans | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | [1] | 5,435 | 9,295 | 5,856 |
Ancillary | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 11,466 | 21,354 | 27,136 | |
Ancillary | Short-term | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 4,419 | 6,112 | 9,494 | |
Ancillary | Dental | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 3,489 | 10,216 | 9,354 | |
Ancillary | Vision | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,050 | 2,250 | 3,896 | |
Ancillary | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 2,508 | 2,776 | 4,392 | |
Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 11,842 | 10,720 | 9,568 | |
Commission Bonus and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,921 | 2,670 | 8,400 | |
Total Commission Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 361,246 | 493,119 | 508,189 | |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 44,110 | $ 45,080 | $ 74,585 | |
[1]We define our Individual and Family plan offerings as major medical individual and family health insurance plans, which does not include Medicare-related, small business or ancillary plans. Individual and family health insurance plans include both qualified and non-qualified plans. Qualified health plans are individual and family health insurance plans that meet the requirements of the Affordable Care Act and are offered through the government-run health insurance exchange in the relevant jurisdiction. Non-qualified health plans are Individual and Family health insurance plans that meet the requirements of the Affordable Care Act and are not offered through the exchange in the relevant jurisdiction. Individuals that purchase non-qualified health plans cannot receive a subsidy in connection with the purchase of non-qualified plans. |
Revenue (Commission Revenue by
Revenue (Commission Revenue by Segment) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 405,356 | $ 538,199 | $ 582,774 | |
Basic (in usd per share) | $ (4.36) | $ (4.59) | $ 1.75 | |
Diluted (in usd per share) | $ (4.36) | $ (4.59) | $ 1.68 | |
Commission | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 361,246 | $ 493,119 | $ 508,189 | |
Commission Revenue from Members Approved During the Period | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | [1] | 344,864 | 462,816 | 462,693 |
Commission Revenue from Renewals of Small Business Members During the Period | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 9,981 | 8,564 | ||
Net Commission Revenue Adjustments from Members Approved in Prior Period | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | [1],[2] | $ 6,401 | $ 21,739 | $ 38,769 |
Basic (in usd per share) | $ 0.23 | $ 0.81 | $ 1.49 | |
Diluted (in usd per share) | $ 0.23 | $ 0.81 | $ 1.44 | |
Medicare Segment | Commission | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 320,180 | $ 429,324 | $ 446,387 | |
Medicare Segment | Commission Revenue from Members Approved During the Period | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 322,506 | 437,738 | 440,722 | |
Medicare Segment | Commission Revenue from Renewals of Small Business Members During the Period | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | ||
Medicare Segment | Net Commission Revenue Adjustments from Members Approved in Prior Period | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | [1] | (2,326) | (8,414) | 5,665 |
Decrease in revenue | 16,500 | 28,800 | 17,300 | |
Individual, Family and Small Business | Commission | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 41,066 | 63,795 | 61,802 | |
Individual, Family and Small Business | Commission Revenue from Members Approved During the Period | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 22,358 | 25,078 | 21,971 | |
Individual, Family and Small Business | Commission Revenue from Renewals of Small Business Members During the Period | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | [3] | 9,981 | 8,564 | 6,727 |
Individual, Family and Small Business | Net Commission Revenue Adjustments from Members Approved in Prior Period | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | [1] | $ 8,727 | $ 30,153 | $ 33,104 |
[1]These amounts reflect our revised estimates of cash collections for certain members approved prior to the relevant reporting period that are recognized as adjustments to revenue within the relevant reporting period. The net adjustment revenue includes both increases in revenue for certain prior period cohorts as well as reductions in revenue for certain prior period cohorts.[2]The impact of total net commission revenue from members approved in prior periods for the years ended December 31, 2022, 2021 and 2020 was $0.23, $0.81 and $1.49 per basic share, respectively, or $0.23, $0.81 and $1.44 per diluted share, respectively. The total reductions to revenue from members approved in prior periods were $16.5 million, $28.8 million and $17.3 million for the years ended December 31, 2022, 2021 and 2020, respectively. These reductions to revenue primarily related to the Medicare segment.[3]Commission revenue from renewals of small business members during the period was previously included in net commission revenue from members approved in prior periods. However, beginning in the first quarter of 2021, we enhanced our reporting by separately disclosing commission revenue from renewals of small business members during the period in a separate line item. |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Change in Accounting Estimate [Line Items] | ||||
Total revenue | $ 405,356 | $ 538,199 | $ 582,774 | |
Net Commission Revenue Adjustments from Members Approved in Prior Period | ||||
Change in Accounting Estimate [Line Items] | ||||
Total revenue | [1],[2] | 6,401 | 21,739 | 38,769 |
IFP/SMB Segment | Net Commission Revenue Adjustments from Members Approved in Prior Period | ||||
Change in Accounting Estimate [Line Items] | ||||
Total revenue | [2] | 8,727 | 30,153 | 33,104 |
Medicare Segment | Net Commission Revenue Adjustments from Members Approved in Prior Period | ||||
Change in Accounting Estimate [Line Items] | ||||
Total revenue | [2] | $ (2,326) | $ (8,414) | $ 5,665 |
[1]The impact of total net commission revenue from members approved in prior periods for the years ended December 31, 2022, 2021 and 2020 was $0.23, $0.81 and $1.49 per basic share, respectively, or $0.23, $0.81 and $1.44 per diluted share, respectively. The total reductions to revenue from members approved in prior periods were $16.5 million, $28.8 million and $17.3 million for the years ended December 31, 2022, 2021 and 2020, respectively. These reductions to revenue primarily related to the Medicare segment.[2]These amounts reflect our revised estimates of cash collections for certain members approved prior to the relevant reporting period that are recognized as adjustments to revenue within the relevant reporting period. The net adjustment revenue includes both increases in revenue for certain prior period cohorts as well as reductions in revenue for certain prior period cohorts. |
Supplemental Financial Statem_3
Supplemental Financial Statement Information (Schedule of Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||||
Cash | $ 17,776 | $ 33,253 | ||
Cash equivalents | 126,625 | 48,673 | ||
Cash and cash equivalents | 144,401 | 81,926 | ||
Restricted cash | 3,239 | 3,239 | ||
Total cash, cash equivalents and restricted cash | $ 147,640 | $ 85,165 | $ 47,113 | $ 26,820 |
Supplemental Financial Statem_4
Supplemental Financial Statement Information (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Concentration Risk [Line Items] | |||||
Restricted cash | $ 3,239,000 | $ 3,239,000 | $ 3,239,000 | ||
Allowance for credit loss | 0 | 0 | 0 | $ 0 | |
Depreciation | 3,845,000 | 5,430,000 | 3,694,000 | ||
Tangible asset impairment charges | 1,300,000 | $ 900,000 | 2,200,000 | ||
Finite-lived intangible assets | 17,200,000 | 17,200,000 | 17,200,000 | ||
Accumulated amortization and impairment charges | 17,200,000 | 17,200,000 | 17,200,000 | ||
Indefinite-lived intangible assets (excluding goodwill) | 5,100,000 | 5,100,000 | 5,100,000 | ||
Impairment charges of intangible assets | (3,200,000) | (3,200,000) | |||
Amortization of acquired intangible assets | 0 | 536,000 | 1,493,000 | ||
Intangible asset impairment | 0 | $ 6,100,000 | $ 0 | ||
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Restructuring Costs and Asset Impairment Charges | ||||
China | |||||
Concentration Risk [Line Items] | |||||
Deposits | $ 4,900,000 | $ 4,900,000 |
Supplemental Financial Statem_5
Supplemental Financial Statement Information (Schedule of Changes in Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Beginning balance | $ 2,198 | $ 2,026 |
Change in allowance | 200 | 172 |
Ending balance | $ 2,398 | $ 2,198 |
Supplemental Financial Statem_6
Supplemental Financial Statement Information (Schedule of Commissions Receivable) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Change in Contract with Customer Asset [Roll Forward] | ||||
Beginning balance | $ 908,262 | $ 792,405 | ||
Total revenue | 405,356 | 538,199 | $ 582,774 | |
Cash receipts | (385,004) | (377,090) | ||
Net change in credit loss allowance | (200) | (172) | ||
Ending balance | 884,304 | 908,262 | 792,405 | |
Medicare Segment | ||||
Change in Contract with Customer Asset [Roll Forward] | ||||
Beginning balance | 837,474 | 739,637 | ||
Cash receipts | (340,426) | (331,328) | ||
Net change in credit loss allowance | (185) | (159) | ||
Ending balance | 817,043 | 837,474 | 739,637 | |
IFP/SMB Segment | ||||
Change in Contract with Customer Asset [Roll Forward] | ||||
Beginning balance | 70,788 | 52,768 | ||
Cash receipts | (44,578) | (45,762) | ||
Net change in credit loss allowance | (15) | (13) | ||
Ending balance | 67,261 | 70,788 | 52,768 | |
Commission Revenue from Members Approved During the Period | ||||
Change in Contract with Customer Asset [Roll Forward] | ||||
Total revenue | [1] | 344,864 | 462,816 | 462,693 |
Commission Revenue from Members Approved During the Period | Medicare Segment | ||||
Change in Contract with Customer Asset [Roll Forward] | ||||
Total revenue | 322,506 | 437,738 | 440,722 | |
Commission Revenue from Members Approved During the Period | IFP/SMB Segment | ||||
Change in Contract with Customer Asset [Roll Forward] | ||||
Total revenue | 22,358 | 25,078 | 21,971 | |
Commission Revenue from Renewals of Small Business Members During the Period | ||||
Change in Contract with Customer Asset [Roll Forward] | ||||
Total revenue | 9,981 | 8,564 | ||
Commission Revenue from Renewals of Small Business Members During the Period | Medicare Segment | ||||
Change in Contract with Customer Asset [Roll Forward] | ||||
Total revenue | 0 | 0 | ||
Commission Revenue from Renewals of Small Business Members During the Period | IFP/SMB Segment | ||||
Change in Contract with Customer Asset [Roll Forward] | ||||
Total revenue | [2] | 9,981 | 8,564 | 6,727 |
Net Commission Revenue Adjustments from Members Approved in Prior Period | ||||
Change in Contract with Customer Asset [Roll Forward] | ||||
Total revenue | [1],[3] | 6,401 | 21,739 | 38,769 |
Net Commission Revenue Adjustments from Members Approved in Prior Period | Medicare Segment | ||||
Change in Contract with Customer Asset [Roll Forward] | ||||
Total revenue | [1] | (2,326) | (8,414) | 5,665 |
Net Commission Revenue Adjustments from Members Approved in Prior Period | IFP/SMB Segment | ||||
Change in Contract with Customer Asset [Roll Forward] | ||||
Total revenue | [1] | $ 8,727 | $ 30,153 | $ 33,104 |
[1]These amounts reflect our revised estimates of cash collections for certain members approved prior to the relevant reporting period that are recognized as adjustments to revenue within the relevant reporting period. The net adjustment revenue includes both increases in revenue for certain prior period cohorts as well as reductions in revenue for certain prior period cohorts.[2]Commission revenue from renewals of small business members during the period was previously included in net commission revenue from members approved in prior periods. However, beginning in the first quarter of 2021, we enhanced our reporting by separately disclosing commission revenue from renewals of small business members during the period in a separate line item.[3]The impact of total net commission revenue from members approved in prior periods for the years ended December 31, 2022, 2021 and 2020 was $0.23, $0.81 and $1.49 per basic share, respectively, or $0.23, $0.81 and $1.44 per diluted share, respectively. The total reductions to revenue from members approved in prior periods were $16.5 million, $28.8 million and $17.3 million for the years ended December 31, 2022, 2021 and 2020, respectively. These reductions to revenue primarily related to the Medicare segment. |
Supplemental Financial Statem_7
Supplemental Financial Statement Information (Accounts Receivable Concentration Risk) (Details) - Customer Concentration Risk - Accounts Receivable | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Humana | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 26% | 25% | |
UnitedHealthcare | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | [1] | 24% | 23% |
Aetna | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | [1] | 16% | 17% |
Centene | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | [1] | 8% | 10% |
[1]Percentages include the carriers' subsidiaries. |
Supplemental Financial Statem_8
Supplemental Financial Statement Information (Schedule of Prepaid Expenses and Other Current Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid maintenance contracts | $ 5,211 | $ 6,246 |
Prepaid expenses | 2,858 | 11,379 |
Prepaid insurance | 1,893 | 2,161 |
Prepaid licenses | 1,116 | 3,076 |
Other current assets | 223 | 922 |
Prepaid expenses and other current assets | $ 11,301 | $ 23,784 |
Supplemental Financial Statem_9
Supplemental Financial Statement Information (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Computer equipment and software | $ 8,727 | $ 13,243 |
Office equipment and furniture | 3,556 | 6,854 |
Leasehold improvements | 5,992 | 7,458 |
Property and equipment, gross | 18,275 | 27,555 |
Less accumulated depreciation and amortization | (12,774) | (15,450) |
Property and equipment, net | $ 5,501 | $ 12,105 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term marketable securities | $ 0 | $ 41,306 |
Corporate bond | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term marketable securities | 2,505 | |
Fair Value, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 13,015 | 9,217 |
Fair Value, Recurring | Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term marketable securities | 0 | |
Fair Value, Recurring | Level 1 | Corporate bond | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term marketable securities | 0 | |
Fair Value, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 113,610 | 80,762 |
Fair Value, Recurring | Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term marketable securities | 38,801 | |
Fair Value, Recurring | Level 2 | Corporate bond | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term marketable securities | 2,505 | |
Fair Value, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Fair Value, Recurring | Level 3 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term marketable securities | 0 | |
Fair Value, Recurring | Level 3 | Corporate bond | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term marketable securities | 0 | |
Fair Value, Recurring | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 126,625 | 89,979 |
Fair Value, Recurring | Carrying Value | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term marketable securities | 38,801 | |
Fair Value, Recurring | Carrying Value | Corporate bond | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term marketable securities | 2,505 | |
Fair Value, Recurring | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 126,625 | 89,979 |
Fair Value, Recurring | Fair Value | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term marketable securities | 38,801 | |
Fair Value, Recurring | Fair Value | Corporate bond | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term marketable securities | 2,505 | |
Money market funds | Fair Value, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 13,015 | 9,217 |
Money market funds | Fair Value, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Money market funds | Fair Value, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Money market funds | Fair Value, Recurring | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 13,015 | 9,217 |
Money market funds | Fair Value, Recurring | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 13,015 | 9,217 |
Commercial paper | Fair Value, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Commercial paper | Fair Value, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 112,268 | 39,456 |
Commercial paper | Fair Value, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Commercial paper | Fair Value, Recurring | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 112,268 | 39,456 |
Commercial paper | Fair Value, Recurring | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 112,268 | $ 39,456 |
Agency bonds | Fair Value, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Agency bonds | Fair Value, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,342 | |
Agency bonds | Fair Value, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Agency bonds | Fair Value, Recurring | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,342 | |
Agency bonds | Fair Value, Recurring | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 1,342 |
Fair Value Measurements - Contr
Fair Value Measurements - Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Due in 1 year | $ 126,664 | $ 89,988 |
Fair Value | ||
Due in 1 year | $ 126,625 | $ 89,979 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - security | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Disclosures [Abstract] | ||
Number of securities in net loss positions | 26 | 36 |
Fair Value Measurements - Unrea
Fair Value Measurements - Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Cash equivalents | ||
Amortized Cost | $ 126,664 | |
Unrealized Gains | 0 | |
Unrealized Losses | (39) | |
Fair Value | 126,625 | $ 48,673 |
Short-term marketable securities | ||
Fair Value | 0 | 41,306 |
Total | 89,988 | |
Unrealized Gains | 0 | |
Unrealized Losses | (9) | |
Fair Value | 89,979 | |
Commercial paper | ||
Short-term marketable securities | ||
Amortized Cost | 38,808 | |
Unrealized Gains | 0 | |
Unrealized Losses | (7) | |
Fair Value | 38,801 | |
Corporate bond | ||
Short-term marketable securities | ||
Amortized Cost | 2,505 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Fair Value | 2,505 | |
Money market funds | ||
Cash equivalents | ||
Amortized Cost | 13,015 | 9,217 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 13,015 | 9,217 |
Commercial paper | ||
Cash equivalents | ||
Amortized Cost | 112,307 | 39,458 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (39) | (2) |
Fair Value | 112,268 | $ 39,456 |
Agency bonds | ||
Cash equivalents | ||
Amortized Cost | 1,342 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Fair Value | $ 1,342 |
Equity - Narrative (Details)
Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Apr. 30, 2021 | Sep. 30, 2022 | Mar. 31, 2022 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 22, 2021 | Jun. 30, 2020 | Jun. 12, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Sale of stock, shares issued (in shares) | 2,250,000 | ||||||||||||
Sale of stock, price per share (in usd per share) | $ 115 | ||||||||||||
Net proceeds from sale of stock | $ 214,025 | $ 228,000 | |||||||||||
Treasury stock (in shares) | 12,415,000 | 12,016,000 | |||||||||||
Treasury shares that were previously surrendered by employees to satisfy tax withholdings (in shares) | 1,700,000 | 1,300,000 | |||||||||||
Shares available for grant (in shares) | 5,165,000 | 1,159,000 | [1] | 4,500,000 | |||||||||
Additional shares authorized (in shares) | 5,000,000 | ||||||||||||
Shares reserved (in shares) | 7,871,000 | 3,967,000 | |||||||||||
Capitalized stock-based compensation | $ 1,885 | $ 2,621 | $ 2,007 | ||||||||||
Unrecognized stock-based compensation, options | $ 2,000 | ||||||||||||
Recognition period for unrecognized stock-based compensation expense | 2 years 2 months 12 days | ||||||||||||
Reduction in stock-based compensation expense | $ (20,316) | $ (32,857) | $ (25,172) | ||||||||||
Basic (in usd per share) | $ (4.36) | $ (4.59) | $ 1.75 | ||||||||||
Diluted (in usd per share) | $ (4.36) | $ (4.59) | 1.68 | ||||||||||
Performance achievement target percentage | 100% | ||||||||||||
Change In Estimates For Stock-Based Compensation | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Basic (in usd per share) | 0.23 | ||||||||||||
Diluted (in usd per share) | $ 0.22 | ||||||||||||
2014 Equity Incentive Plan | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Additional shares authorized (in shares) | 3,000,000 | 2,500,000 | |||||||||||
2021 Inducement Plan | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Additional shares authorized (in shares) | 1,500,000 | 500,000 | |||||||||||
Shares reserved (in shares) | 400,000 | ||||||||||||
Granted (in shares) | 1,100,000 | ||||||||||||
Restricted Stock | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Recognition period for unrecognized stock-based compensation expense | 2 years 6 months | ||||||||||||
Unrecognized stock-based compensation, restricted stock units | $ 28,400 | ||||||||||||
Employee stock purchase program | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares authorized (in shares) | 200,000 | 500,000 | |||||||||||
Purchase price of common stock, percent | 85% | ||||||||||||
Number of shares purchased (in shares) | 200,000 | 100,000 | 0 | ||||||||||
Recognition period for unrecognized stock-based compensation expense | 4 months 24 days | ||||||||||||
Unrecognized stock-based compensation, restricted stock units | $ 100 | ||||||||||||
Reduction in stock-based compensation expense | $ (449) | $ (1,638) | $ (346) | ||||||||||
Performance Based Restricted Stock | Change In Estimates For Stock-Based Compensation | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Reduction in stock-based compensation expense | $ 5,900 | ||||||||||||
Previous Repurchase Programs | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares repurchased under share repurchase plan (in shares) | 10,700,000 | ||||||||||||
Public Allotment | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Sale of stock, shares issued (in shares) | 2,100,000 | ||||||||||||
Over-Allotment | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Sale of stock, shares issued (in shares) | 300,000 | ||||||||||||
[1]Shares available for grant do not include treasury stock shares that could be granted if we determined to do so. |
Equity - Schedule of Shares Res
Equity - Schedule of Shares Reserved (Details) - shares | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 12, 2014 | |
Stockholders' Equity Note [Abstract] | ||||
Stock options issued and outstanding (in shares) | 226,000 | 424,000 | ||
Restricted stock units issued and outstanding (in shares) | 2,480,000 | 2,384,000 | ||
Shares available for grant (in shares) | 5,165,000 | 1,159,000 | [1] | 4,500,000 |
Total shares reserved (in shares) | 7,871,000 | 3,967,000 | ||
[1]Shares available for grant do not include treasury stock shares that could be granted if we determined to do so. |
Equity - Schedule of Stock Plan
Equity - Schedule of Stock Plan Activity (Details) shares in Thousands | 12 Months Ended | |
Dec. 31, 2022 shares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Movement in Shares Available for Grant [Roll Forward] | ||
Beginning balance (in shares) | 1,159 | [1] |
Additional shares authorized (in shares) | 5,000 | |
Restricted stock units granted (in shares) | (2,423) | [2] |
Restricted stock units cancelled (in shares) | 1,308 | [3] |
Options cancelled (in shares) | 121 | |
Ending balance (in shares) | 5,165 | |
[1]Shares available for grant do not include treasury stock shares that could be granted if we determined to do so.[2]Includes grants of restricted stock units with service, performance-based or market-based vesting criteria[3]Includes cancelled restricted stock units with service, performance-based or market-based vesting criteria |
Equity - Schedule Of Stock-Base
Equity - Schedule Of Stock-Based Compensation Expense By Award Type (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 20,316 | $ 32,857 | $ 25,172 | |
Related tax benefit recognized | 4,747 | 7,746 | 5,984 | |
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | [1] | 18,713 | 30,512 | 23,729 |
Common stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 1,154 | 707 | 1,097 | |
Employee stock purchase program | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 449 | $ 1,638 | $ 346 | |
[1]Amounts include market-based and performance-based RSUs |
Equity - Schedule of Stock-Ba_2
Equity - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 20,316 | $ 32,857 | $ 25,172 |
Amount capitalized for internal-use software | 1,885 | 2,621 | 2,007 |
Total stock-based compensation | 22,201 | 35,478 | 27,179 |
Marketing and advertising | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 1,901 | 8,660 | 5,102 |
Customer care and enrollment | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 2,096 | 2,836 | 2,723 |
Technology and content | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 6,015 | 10,013 | 5,460 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 10,304 | $ 11,348 | $ 11,887 |
Equity - Schedule of Option Act
Equity - Schedule of Option Activity Under Stock Plans (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Number of Stock Options | ||||
Outstanding, beginning balance (in shares) | 424 | |||
Outstanding, ending balance (in shares) | 226 | 424 | ||
Common stock options | ||||
Number of Stock Options | ||||
Outstanding, beginning balance (in shares) | [1] | 424 | ||
Granted (in shares) | [1] | 0 | ||
Exercised (in shares) | [1] | (77) | ||
Cancelled (in shares) | [1] | (121) | ||
Outstanding, ending balance (in shares) | [1] | 226 | 424 | |
Vested and expected to vest (in shares) | [1] | 175 | ||
Exercisable (in shares) | [1] | 57 | ||
Weighted Average Exercise Price | ||||
Outstanding, beginning balance, weighted average exercise price (in usd per share) | $ 29.07 | |||
Granted, weighted average exercise price (in usd per share) | 0 | |||
Exercised, weighted average exercise price (in usd per share) | 13.60 | |||
Forfeited, weighted average exercise price (in usd per share) | 20.28 | |||
Outstanding, ending balance, weighted average exercise price (in usd per share) | 39.07 | $ 29.07 | ||
Vested and expected to vest, weighted average exercise price (in usd per share) | 38.51 | |||
Exercisable, weighted average exercise price (in usd per share) | $ 33.28 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Weighted-average remaining contractual life (years), balance outstanding | 5 years 3 months 18 days | 3 years 9 months 18 days | ||
Weighted-average remaining contractual life (years), vested and expected to Vest | 5 years 2 months 12 days | |||
Weighted-average remaining contractual life (years), exercisable | 4 years | |||
Aggregate intrinsic value, balance outstanding | [2] | $ 0 | $ 2,053 | |
Aggregate intrinsic value, vested and expected to vest | [2] | 0 | ||
Aggregate intrinsic value, exercisable | [2] | 0 | ||
Weighted average fair value of options granted (in usd per share) | $ 41.03 | |||
Total fair value of options vested | 835 | $ 797 | $ 1,367 | |
Intrinsic value of options exercised | $ 694 | $ 5,182 | $ 8,127 | |
[1]Includes certain stock options with service, performance-based or market-based vesting criteria.[2]The aggregate intrinsic value is calculated as the product between eHealth’s closing stock price as of December 31, 2022 and 2021 and the exercise price of in-the-money options as of those dates. |
Equity - Schedule of Valuation
Equity - Schedule of Valuation Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Common stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 7 years | ||
Expected volatility | 69.10% | ||
Risk-free interest rate | 1.30% | ||
Market-based options and restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 2 years 1 month 6 days | 2 years | 3 years 6 months |
Expected volatility | 68.70% | 66% | 64.40% |
Expected dividend yield | 0% | 0% | 0% |
Risk-free interest rate | 2.50% | 0.90% | 0.30% |
Weighted average grant date fair value (in usd per share) | $ 9.66 | $ 46.36 | $ 93.85 |
Equity - Schedule of Restricted
Equity - Schedule of Restricted Stock Unit Activity Under Stock Plans (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Number of Restricted Stock Units | |||
Outstanding, beginning balance (in shares) | 2,384 | ||
Granted (in shares) | [1] | 2,423 | |
Forfeited (in shares) | [2] | (1,308) | |
Outstanding, ending balance (in shares) | 2,480 | 2,384 | |
Restricted stock units | |||
Number of Restricted Stock Units | |||
Outstanding, beginning balance (in shares) | [3] | 2,384 | |
Granted (in shares) | [3] | 2,423 | |
Vested (in shares) | [3] | (1,019) | |
Forfeited (in shares) | [3] | (1,308) | |
Outstanding, ending balance (in shares) | [3] | 2,480 | 2,384 |
Weighted-Average Grant Date Fair Value | |||
Outstanding, beginning balance, weighted-average grant date fair value (in usd per share) | $ 49.56 | ||
Granted (in usd per share) | 9.92 | ||
Vested (in usd per share) | 30.23 | ||
Forfeited (in usd per share) | 48.63 | ||
Outstanding, ending balance, weighted-average grant date fair value (in usd per share) | $ 19.27 | $ 49.56 | |
Weighted-Average Remaining Service Period | 1 year 4 months 24 days | 1 year 7 months 6 days | |
Aggregate Intrinsic Value | [4] | $ 12,004 | $ 60,789 |
[1]Includes grants of restricted stock units with service, performance-based or market-based vesting criteria[2]Includes cancelled restricted stock units with service, performance-based or market-based vesting criteria[3]Includes certain restricted stock units with service, performance-based or market-based vesting criteria.[4]The aggregate intrinsic value is calculated as the difference of our closing stock price as of December 31, 2022 and 2021 multiplied by the number of restricted stock units outstanding as of December 31, 2022 and 2021, respectively. |
Convertible Preferred Stock - N
Convertible Preferred Stock - Narrative (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||||
Apr. 30, 2024 day | Jun. 30, 2023 | Apr. 30, 2021 USD ($) vote state $ / shares shares | Jun. 30, 2021 $ / shares | Dec. 31, 2022 USD ($) $ / shares shares | Apr. 30, 2027 day | Aug. 17, 2023 | Dec. 31, 2021 USD ($) $ / shares | Feb. 17, 2021 USD ($) | |
Temporary Equity [Line Items] | |||||||||
Sale of stock, shares issued (in shares) | shares | 2,250,000 | ||||||||
Preferred stock, par value (in usd per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||||
Gross proceeds | $ 225,000 | ||||||||
Carrying amount | 214,025 | $ 263,284 | $ 232,592 | ||||||
Issuance costs | $ 10,975 | ||||||||
Dividend rate | 8% | ||||||||
Stated value (in dollars per share) | $ / shares | $ 100 | ||||||||
Conversion rate (in dollars per share) | $ / shares | $ 79.5861 | ||||||||
Redemption put right, percentage of accrued value | 135% | ||||||||
Number of votes per share | vote | 1 | ||||||||
Asset coverage ratio | 200% | ||||||||
Shares converted (in shares) | shares | 0 | ||||||||
Accrued paid-in-kind dividends, common stock equivalent, as-converted (in shares) | shares | 3,200,000 | ||||||||
Minimum | |||||||||
Temporary Equity [Line Items] | |||||||||
Minimum liquidity amount | $ 65,000 | ||||||||
Maximum | |||||||||
Temporary Equity [Line Items] | |||||||||
Minimum liquidity amount | $ 125,000 | ||||||||
H.I.G | |||||||||
Temporary Equity [Line Items] | |||||||||
Number of nominations to board of directors | state | 1 | ||||||||
Minimum common stock ownership percentage needed to nominate individual to board of directors | 30% | ||||||||
Minimum ownership percentage | 30% | ||||||||
Scenario, Forecast | |||||||||
Temporary Equity [Line Items] | |||||||||
Dividend rate, payable-in-kind | 6% | ||||||||
Dividend rate, cash | 2% | ||||||||
Redemption put right, percentage of accrued value | 135% | ||||||||
Redemption call right, number of days for written notice | day | 30 | ||||||||
Threshold percentage of conversion price | 167.50% | ||||||||
Threshold consecutive trading days | day | 20 | ||||||||
Threshold trading days | day | 30 | ||||||||
Asset coverage ratio | 250% |
Convertible Preferred Stock - S
Convertible Preferred Stock - Summary of Stock (Details) - USD ($) $ in Thousands | 1 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 30, 2021 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2022 | |
Temporary Equity Disclosure [Abstract] | ||||
Gross proceeds | $ 225,000 | |||
Less: issuance costs | (10,975) | |||
Net proceeds | 214,025 | $ 228,000 | ||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Beginning balance | $ 214,025 | $ 232,592 | ||
Accrued paid-in-kind dividends | 12,206 | 19,357 | ||
Change in preferred stock redemption value | 6,361 | 11,335 | ||
Ending balance | $ 214,025 | $ 232,592 | $ 263,284 |
Net Income (Loss) Per Share A_3
Net Income (Loss) Per Share Attributable to Common Stockholders - Computation of Basic and Diluted Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Basic | |||
Net income (loss) attributable to common stockholders - basic | $ (119,414) | $ (122,942) | $ 45,450 |
Shares used in per share calculation - basic (in shares) | 27,359 | 26,781 | 26,025 |
Net income (loss) attributable to common stockholders per share - basic (in usd per share) | $ (4.36) | $ (4.59) | $ 1.75 |
Diluted: | |||
Net income (loss) attributable to common stockholders - diluted (in shares) | $ (119,414) | $ (122,942) | $ 45,450 |
Dilutive effect of common stock (in shares) | 0 | 0 | 989 |
Shares used in per share calculation — diluted (in usd per share) | 27,359 | 26,781 | 27,014 |
Net income (loss) attributable to common stockholders per share - diluted (in usd per share) | $ (4.36) | $ (4.59) | $ 1.68 |
Net Income (Loss) Per Share A_4
Net Income (Loss) Per Share Attributable to Common Stockholders - Schedule of Anti-Dilutive Shares Excluded from Computation Of Net Income (Loss) Per Share (Details) - shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total (in shares) | 4,989 | 3,345 | 151 | |
Convertible preferred stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total (in shares) | 3,102 | 1,905 | 0 | |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total (in shares) | [1] | 1,551 | 1,078 | 151 |
Common stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total (in shares) | 271 | 333 | 0 | |
Employee stock purchase program | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total (in shares) | 65 | 29 | 0 | |
[1]Amounts include market-based and performance-based RSUs |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Obligations (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Contractual Obligation, Fiscal Year Maturity [Abstract] | |
2023 | $ 7,782 |
2024 | 2,519 |
2025 | 229 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Total | $ 10,530 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) $ in Millions | 1 Months Ended | |
Apr. 30, 2020 claim | Dec. 31, 2020 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Loss contingency accrual | $ | $ 1.2 | |
New complaints | claim | 2 |
Segment and Geographic Inform_3
Segment and Geographic Information - Segment Operating Results (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 405,356,000 | $ 538,199,000 | $ 582,774,000 | |
Stock-based compensation expense | (20,316,000) | (32,857,000) | (25,172,000) | |
Depreciation and amortization | [1] | (21,108,000) | (18,331,000) | (11,450,000) |
Impairment, restructuring and other charges | (19,616,000) | (51,222,000) | 0 | |
Amortization of intangible assets | 0 | (536,000) | (1,493,000) | |
Other income (expense), net | (3,676,000) | 755,000 | 666,000 | |
Income (loss) before income taxes | (106,389,000) | (124,890,000) | 53,989,000 | |
Amortization of internally developed software | 17,263,000 | 12,901,000 | 7,756,000 | |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 405,356,000 | 538,199,000 | 582,774,000 | |
Segment profit | 11,565,000 | 33,626,000 | 149,102,000 | |
Operating Segments | Medicare | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 361,687,000 | 471,217,000 | 516,762,000 | |
Segment profit | [2] | (9,873,000) | (12,079,000) | 108,787,000 |
Operating Segments | Individual, Family and Small Business | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 43,669,000 | 66,982,000 | 66,012,000 | |
Segment profit | [2] | 21,438,000 | 45,705,000 | 40,315,000 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Segment profit | $ (53,238,000) | $ (56,325,000) | $ (57,664,000) | |
[1]Depreciation and amortization has been adjusted to include amortization of software development costs.[2]During the first quarter of 2021, we revised the calculation of segment profit by excluding amortization of capitalized software development costs to enhance comparability of our financial metrics with peer companies. The amortization of capitalized software was $17.3 million, $12.9 million, and $7.8 million for the years ended December 31, 2022, 2021 and 2020, respectively. |
Segment and Geographic Inform_4
Segment and Geographic Information - Schedule of Long-Lived Assets by Geographical Area (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Total | $ 38,296 | $ 45,729 |
United States | ||
Segment Reporting Information [Line Items] | ||
Total | 37,915 | 45,134 |
China | ||
Segment Reporting Information [Line Items] | ||
Total | $ 381 | $ 595 |
Segment and Geographic Inform_5
Segment and Geographic Information - Schedule of Revenue by Major Customers (Details) - Customer Concentration Risk - Revenue from Contract with Customer | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Humana | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 23% | 19% | 22% | |
UnitedHealthcare | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | [1] | 22% | 20% | 21% |
Aetna | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | [1] | 12% | 18% | 15% |
Centene | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | [1] | 8% | 12% | 10% |
[1]Percentages include the carriers' subsidiaries. |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Aug. 31, 2022 | |
Lessee, Lease, Description [Line Items] | ||||||
Base rent payments to be received | $ 13.5 | |||||
Sublease income | $ 1 | $ 1.2 | $ 1.2 | |||
Impairment charge excluding in-process internally developed software | $ 8.4 | $ 3.4 | 11.8 | |||
Operating lease expense | $ 7.8 | $ 7.7 | $ 7.8 | |||
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Restructuring Costs and Asset Impairment Charges | |||||
Minimum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Remaining lease term | 1 year | 1 year | ||||
Maximum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Remaining lease term | 7 years | 7 years |
Leases - Supplemental Informati
Leases - Supplemental Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 7,697 | $ 7,640 |
Non-cash investing activities relating to operating lease right-of-use assets | $ 3,493 | $ 0 |
Weighted-average remaining lease term of operating leases | 5 years 8 months 12 days | 6 years 3 months 18 days |
Weighted-average discount rate used to recognize operating lease right-of-use-assets | 5.60% | 5.40% |
Leases - Operating Lease Maturi
Leases - Operating Lease Maturities (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Operating leases | |
2023 | $ 8,606 |
2024 | 8,404 |
2025 | 8,610 |
2026 | 7,396 |
2027 | 6,773 |
Thereafter | 8,201 |
Total lease payments | 47,990 |
Less imputed interest | (7,317) |
Total | 40,673 |
Sublease income, 2023 | 1,600 |
Sublease income, 2024 | 2,100 |
Sublease income, 2025 | 2,200 |
Sublease income, 2026 | 2,200 |
Sublease income, 2027 | 2,300 |
Sublease income, thereafter | $ 2,800 |
Impairment, Restructuring and_3
Impairment, Restructuring and Other Charges - Impairment, Restructuring and Other Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |||
Asset impairment charges | $ 12,102 | $ 0 | $ 0 |
Restructuring and reorganization charges | 7,514 | 4,878 | 0 |
Goodwill and intangible assets impairment | 0 | 46,344 | 0 |
Impairment, restructuring and other charges | $ 19,616 | $ 51,222 | $ 0 |
Impairment, Restructuring and_4
Impairment, Restructuring and Other Charges - Restructuring and Other Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |||
Beginning balance | $ 146 | ||
Restructuring and reorganization charges | 7,514 | $ 4,878 | $ 0 |
Payments | (7,294) | ||
Ending balance | $ 366 | $ 146 |
Impairment, Restructuring and_5
Impairment, Restructuring and Other Charges - Narrative (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Feb. 28, 2021 full_time_position | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) employee | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||||||
Asset impairment charges | $ 12,102,000 | $ 0 | $ 0 | |||||
Impairment charge excluding in-process internally developed software | $ 8,400,000 | $ 3,400,000 | 11,800,000 | |||||
Operating lease, impairment loss | 7,100,000 | 2,500,000 | ||||||
Tangible asset impairment charges | 1,300,000 | $ 900,000 | 2,200,000 | |||||
Restructuring and reorganization charges | 7,514,000 | 4,878,000 | 0 | |||||
Severance costs | 366,000 | $ 366,000 | 366,000 | 146,000 | ||||
Total stock-based compensation expense | (20,316,000) | (32,857,000) | (25,172,000) | |||||
Goodwill, impaired, accumulated impairment loss | 40,200,000 | 0 | ||||||
Intangible asset impairment | 0 | 6,100,000 | 0 | |||||
General and administrative | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Total stock-based compensation expense | (10,304,000) | (11,348,000) | $ (11,887,000) | |||||
Restructuring Plan, 2022 | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Positions eliminated | employee | 339 | |||||||
Percentage of total workforce | 14% | |||||||
Restructuring and reorganization charges | 1,300,000 | $ 6,200,000 | ||||||
Severance costs | $ 400,000 | $ 400,000 | $ 400,000 | |||||
Chief Executive Officer Transition | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and reorganization charges | 2,400,000 | |||||||
Chief Executive Officer Transition | Chief Executive Officer | General and administrative | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Total stock-based compensation expense | 4,100,000 | |||||||
Restructuring Plan, 2021 | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Positions eliminated | full_time_position | 89 | |||||||
Percentage of total workforce | 5% | |||||||
Restructuring and reorganization charges | $ 2,400,000 |
Debt (Details)
Debt (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||
Aug. 16, 2022 | Feb. 28, 2022 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 20, 2019 | Dec. 31, 2018 | Sep. 17, 2018 | |
Revolving Credit Facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Maximum borrowing capacity | $ 75,000,000 | ||||||||
Debt issuance costs | $ 1,200,000 | ||||||||
Borrowing capacity | $ 40,000,000 | ||||||||
Credit Agreement Amendment | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt issuance costs | $ 5,100,000 | ||||||||
Credit Agreement Amendment | Revolving Credit Facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Unamortized issuance costs | $ 3,900,000 | ||||||||
Line of Credit | Revolving Credit Facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt issuance costs | $ 500,000 | ||||||||
Line of Credit | Revolving Credit Facility Agreement | Revolving Credit Facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Unamortized issuance costs | $ 400,000 | ||||||||
Borrowings under line of credit | $ 0 | 0 | |||||||
Write off of deferred debt issuance cost | $ 400,000 | ||||||||
Line of Credit | Term Loan Credit Agreement | Secured term loan | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Maximum borrowing capacity | 70,000,000 | $ 70,000,000 | |||||||
Interest rate, stated percentage | 12.16% | ||||||||
Interest Expense | $ 5,900,000 | $ 0 | $ 0 | ||||||
Annual agreement fee | 300,000 | ||||||||
Line of credit facility, covenant, minimum liquidity | $ 25,000,000 | ||||||||
Covenant, outstanding amount as a percentage of commissions receivable | 50% | ||||||||
Carrying value of loan | $ 66,100,000 | ||||||||
Line of Credit | Term Loan Credit Agreement | Secured term loan | Fed Funds Effective Rate Overnight Index Swap Rate | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Basis spread on variable rate | 0.50% | 0.50% | |||||||
Line of Credit | Term Loan Credit Agreement | Secured term loan | London Interbank Offered Rate (LIBOR) | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Basis spread on variable rate | 1% | ||||||||
Interest rate, stated percentage | 7.50% | ||||||||
Line of Credit | Term Loan Credit Agreement | Secured term loan | Base Rate | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Interest rate, stated percentage | 6.50% | 6.50% | |||||||
Line of Credit | Term Loan Credit Agreement | Secured term loan | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Basis spread on variable rate | 1% | ||||||||
Interest rate, stated percentage | 7.50% |
Income Taxes -Schedule of Compo
Income Taxes -Schedule of Components of Pre-Tax Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (108,006) | $ (125,876) | $ 53,078 |
Foreign | 1,617 | 986 | 911 |
Income (loss) before income taxes | $ (106,389) | $ (124,890) | $ 53,989 |
Income Taxes - Schedule of Curr
Income Taxes - Schedule of Current and Deferred Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 514 | 858 | 88 |
Foreign | 256 | 148 | (361) |
Total current | 770 | 1,006 | (273) |
Deferred: | |||
Federal | (16,382) | (20,696) | 7,303 |
State | (2,055) | (825) | 1,245 |
Foreign | 0 | 0 | 264 |
Total deferred | (18,437) | (21,521) | 8,812 |
Provision for (benefit from) income taxes | $ (17,667) | $ (20,515) | $ 8,539 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Valuation Allowance [Line Items] | ||||
Income before tax | $ (106,389) | $ (124,890) | $ 53,989 | |
Income tax expense | $ (17,667) | $ (20,515) | $ 8,539 | |
Effective tax rate | 16.60% | 16.40% | 15.80% | |
Valuation allowance | $ 4,287 | $ 3,214 | $ 2,479 | $ 2,407 |
Unrecognized tax benefits | 9,875 | 8,551 | $ 6,330 | $ 4,709 |
Unrecognized tax benefits that would impact effective tax rate | 8,700 | $ 7,600 | ||
State Tax Jurisdiction | California | ||||
Valuation Allowance [Line Items] | ||||
Valuation allowance | $ 4,300 |
Income Taxes - Income Tax Rate
Income Taxes - Income Tax Rate Reconciliation Schedule (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Statutory rate | 21% | 21% | 21% |
State income taxes, net of federal benefit | 2.10% | 0.40% | 2.20% |
Stock-based compensation windfalls, net | (4.50%) | (1.50%) | (7.90%) |
Non-deductible stock-based compensation | (0.70%) | (0.80%) | 2.20% |
Non-deductible lobbying expenses | (0.30%) | (0.30%) | 0.80% |
Research and development credits | 0.80% | 1% | (2.20%) |
Changes in valuation allowance | (1.00%) | (0.60%) | 0.10% |
Foreign income tax and income inclusion | (0.20%) | (0.10%) | (0.70%) |
Goodwill impairment | 0% | (2.40%) | 0% |
Other permanent differences | (0.60%) | (0.30%) | 0.30% |
Effective tax rate | 16.60% | 16.40% | 15.80% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||||
Net operating losses | $ 154,832 | $ 149,689 | ||
Intangible assets | 13,618 | 7,480 | ||
Research and development credits carryovers | 11,384 | 9,954 | ||
Operating lease liabilities | 10,015 | 10,146 | ||
Accruals and reserves | 3,411 | 1,628 | ||
Stock-based compensation | 1,387 | 4,642 | ||
Fixed assets | 636 | 402 | ||
Other | 1,093 | 394 | ||
Total deferred tax assets | 196,376 | 184,335 | ||
Valuation allowance | (4,287) | (3,214) | $ (2,479) | $ (2,407) |
Total deferred tax assets net of valuation allowance | 192,089 | 181,121 | ||
Deferred tax liabilities: | ||||
Commissions receivable | (217,919) | (222,751) | ||
Right-of-use assets | (6,529) | (9,166) | ||
Total deferred tax liabilities | (224,448) | (231,917) | ||
Net deferred tax liabilities | $ (32,359) | $ (50,796) |
Income Taxes - Changes in Valua
Income Taxes - Changes in Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Changes In Deferred Tax Asset, Valuation Allowance [Roll Forward] | |||
Balance at beginning of year | $ 3,214 | $ 2,479 | $ 2,407 |
Provision for income taxes | 1,103 | 3,150 | 72 |
Write-offs and Deductions | (30) | (2,415) | 0 |
Balance at end of year | $ 4,287 | $ 3,214 | $ 2,479 |
Income Taxes - Net Operating Lo
Income Taxes - Net Operating Losses and Tax Credit Carryforwards (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Federal | |
Operating Loss Carryforwards [Line Items] | |
Net operating losses, federal (with expiration) | $ 39,194 |
Net operating losses, federal (without expiration) | 592,947 |
Tax credits | 10,867 |
State | |
Operating Loss Carryforwards [Line Items] | |
Net operating losses, state (with expiration) | 396,918 |
Tax credits | $ 10,738 |
Income Taxes -Reconciliation of
Income Taxes -Reconciliation of Unrecognized Tax Benefits Schedule (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 8,551 | $ 6,330 | $ 4,709 |
Additions for tax positions of prior years | 162 | 646 | 0 |
Lapse of statute of limitations | (86) | (64) | (8) |
Additions based on tax positions related to the current year | 1,248 | 1,639 | 1,629 |
Ending balance | $ 9,875 | $ 8,551 | $ 6,330 |
Uncategorized Items - ehth-2022
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |