E-commerce platform eHealth hosted its annual Investor & Analyst Day, where it revealed its goals for the next three years. eHealth expects to increase revenues by 6% in 2023, from the 2022 value of $405.4 million. The company aims to reduce its reliance on commissions, which accounted for 92.2% of its Q1 2023 revenues, by generating more non-commission revenues.
eHealth also plans to increase its adjusted EBITDA margin from -17% in Q1 2023 to 8-10% by 2025. The firm is targeting a break-even point in March 2024 and a positive operating cash flow by March 2025.
The firm’s cost transformation program is expected to lead to a significant improvement in the adjusted EBITDA margin by returning profits. eHealth’s performance has been impressive so far, with an increase in share prices of 54.8% YTD, compared to just 7.6% for the wider industry.
Key Picks
eHealth currently has a Zacks Rank #3 (Hold). Better performers in the finance industry include Allianz SE, Lemonade, and Argo Blockchain (which are all ranked #2 at present). They are expected to experience significant YoY growth in earnings and revenues over the next few years.
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