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SANTA CLARA, California - eHealth , Inc. (NASDAQ:EHTH) shares surged 17% after the company raised its full-year 2023 guidance, surpassing analyst expectations. The online health insurance marketplace now projects higher revenue, improved profitability, and stronger cash flow for the year.
eHealth boosted its total revenue forecast for 2023 to a range of $500.0 million to $520.0 million, up from its previous guidance of $470 million to $495 million. The midpoint of the new range, $510 million, comfortably exceeds the average analyst estimate of $487.6 million.
The company also raised its adjusted EBITDA outlook to between $40.0 million and $55.0 million, a significant increase from the prior forecast of $7.5 million to $25 million.
CEO Fran Soistman attributed the improved outlook to strong performance during the Annual Enrollment Period (AEP). "During the AEP, we drove strong consumer demand to our omnichannel platform coupled with conversion rates that exceeded our expectations, allowing us to deliver substantial enrollment growth at enhanced margins," Soistman stated.
The company now anticipates a net loss of $12.0 million to a profit of $3.0 million for the year, a marked improvement from its previous projection of a $22 million to $36.5 million loss. eHealth also revised its operating cash flow forecast to negative $5.0 million to $15.0 million, better than the earlier guidance of negative $10 million to $0.
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