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List building internet marketing list build a list how to build a list affiliate marketing internet marketing eHealth (EHTH) Q1 2020 Earnings Call Transcript


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List building internet marketing list build a list how to build a list affiliate marketing internet marketing eHealth (EHTH) Q1 2020 Earnings Call Transcript

Image source: The Motley Fool. eHealth (NASDAQ:EHTH)Q1 2020 Earnings CallApr 23, 2020, 5:00 p.m. ETContents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: OperatorLadies and gentlemen, thank you for standing by, and welcome to the Q1 2020 eHealth, Inc. earnings conference call. [Operator instructions] Please be advised that today’s conference call is being recorded. If you…

List building  internet marketing list  build a list  how to build a list  affiliate marketing  internet marketing eHealth (EHTH) Q1 2020 Earnings Call Transcript

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list building  internet marketing list  build a list  how to build a list  affiliate marketing  internet marketing Motley Fool Transcribing

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Image supply: The Motley Fool.

eHealth (NASDAQ:EHTH)

Q1 2020 Earnings Name

Apr 23, 2020, 5: 00 p.m. ET

List building internet marketing list build a list how to build a list affiliate marketing internet marketing Contents:

  • Inspiring Remarks
  • Questions and Answers
  • Name Members

List building internet marketing list build a list how to build a list affiliate marketing internet marketing Inspiring Remarks:

Operator

Ladies and gents, thanks for standing by, and welcome to the Q1 2020 eHealth, Inc. earnings conference name. [Operator instructions] Please be told that on the present time’s conference name is being recorded. As soon as you happen to require from now on help please press star zero.

I’d now need helpful the conference over to your speaker for on the present time. Kate Sidorovich, vp of investor relations. Ma’am, that you just might presumably presumably initiate.

Kate SidorovichVice President of Investor Family

Thank you. Elegant afternoon, and thanks fascinated about joining us on the present time, both by mobile telephone or by webcast, for a dialogue about eHealth, Inc. first-quarter 2020 financial results. On the determination this afternoon, we can have Scott Flanders, eHealth’s chief govt officer; and Derek Yung, chief financial officer.

After administration completes its remarks, we’ll initiate the lines for questions. As a reminder, on the present time’s conference name is being recorded and webcast from the IR allotment of our website. A replay of the determination can be on hand on our website following the determination. We can be in a position to be making ahead-taking a take into yarn statements on this name that encompass statements relating to future occasions, beliefs and expectations, along side statements concerning to our expectations relating to our Medicare industry, along side Medicare enrollment growth, consumer query, our competitive advantage and our expectations relating to online enrollment; our plans to make teach of our equity offering proceeds to make investments in the Medicare industry, along side marketing and marketing initiatives expansion of our telesales capability and enhancements to our technology platform; our Medicare growth approach, along side our customer acquisition, and query period approach, customer retention efforts, online engagement, agent productivity and skills acquisition approach; our expectations relating to our recount-to-consumer mannequin, the benefits of our customer care agent some distance off mannequin, the profitability of our industry, seasonality, churn, lifetime values, running charges, along side mounted and variable charges and the influence of COVID-19 on our industry; our member estimates; revised 2020 corpulent-year guidance; our outlook for the 2d and third quarters of this year; and our plans to present additional updates to our 2020 guidance and 5-year growth belief and the contents of such guidance and growth plans.

Forward-taking a take into yarn statements on this name signify eHealth’s views as of on the present time. You ought to no longer rely on these statements as representing our views in the end. We undertake no duty or responsibility to update files contained in these ahead-taking a take into yarn statements, whether or no longer as a results of unusual files, future occasions or in any other case. Forward-taking a take into yarn statements are topic to risks and uncertainties that might perhaps per chance presumably trigger steady results to fluctuate materially from these projected in our ahead-taking a take into yarn statements.

We listing these and other risks and uncertainties in our annual yarn on Develop 10-Ok and quarterly studies on Develop 10-Q filed with the Securities and Substitute Commission, which you will web entry to thru the SEC website or from the Investor Family allotment of our website. We can be in a position to be presenting sure financial measures on this name which might perhaps per chance presumably be thought to be non-GAAP below SEC Rules G. For reconciliation of each non-GAAP financial measure to the most straight linked GAAP financial measure, please consult with the knowledge incorporated in our press beginning and in our SEC filings, that might also be came upon on our investor relations website. And at this level, I will flip the determination over to Scott Flanders.

Scott FlandersChief Executive Officer

Thank you, Kate, and welcome, all people. We executed the first quarter in an unprecedented ambiance, fashioned by most important disruptions to the international economy and our day-to-day lives as a results of the coronavirus. In this ambiance, our mission to glue every one with the very top quality, most inexpensive medical health insurance coverage for his or her lifestyles circumstances is more relevant and crucial than ever. Being enrolled in the immediate-witted belief is terribly crucial to our predominant customer segment, seniors, as they’re being disproportionately impacted by this pandemic.

Our omnichannel consumer engagement platform permits seniors to investigate and signal up in Medicare plans in a real ambiance, online or by talking to a certified insurance coverage agent on the mobile telephone, with out having to head away their home and allowing them to preserve some distance from the face-to-face interactions that broken-down brokers count upon to sell plans. As correctly as to turning in excellent provider to our clients, the safety of our workers is a chief priority in this tough ambiance. In March, we shifted our total U.S. group of workers to a some distance off mannequin, along side all of our customer care brokers.

This used to be a predominant mission completed in a matter of days and seamlessly, with the transition having no influence on our operations. If truth be told, the realistic productivity of our brokers in the first quarter increased when compared to a year previously no matter this predominant commerce to their work ambiance and routine. I are trying to acknowledge our team’s resilience and tenacity over the previous several weeks and narrate my gratitude for his or her unrelenting focal level on our mission. Turning to our efficiency for the quarter, the basics of our industry are solid, and we’re persevering with to pressure meaningful Medicare earnings and enrollment growth.

Constructing on our momentum of the previous two years, significantly our yarn efficiency in 2019, we’re delighted to utter one other quarter of outperformance. First-quarter permitted Medicare people grew 46% when compared to a year previously, with Medicare Revenue permitted people rising 59%. First-quarter Medicare earnings grew 75% year over year, pushed by solid enrollment volumes and a favorable trend in the estimated lifetime values of our Medicare people, which Derek will listing in increased aspect. We proceed to pressure swiftly rising customer acquisition success thru our rather about a portfolio ability to our query period approach.

Our recount-to-consumer channels present balanced customer website online visitors thru digital promoting, recount response TV, recount mail, electronic mail and organic search initiatives, while our strategic partnerships with sizable retail pharmacies, hospitals and other affinity groups remain a sizable and outlandish driver of unusual industry. Within the first quarter, we completed one other meaningful year-over-year develop in the chance of Medicare applications submitted online, along side unassisted and partially assisted agent online enrollments. 24% of our first-quarter applications for Medicare predominant scientific merchandise were submitted online when compared to top 12% one year previously. On an absolute basis, the total chance of applications for Medicare predominant scientific merchandise submitted online more than tripled when compared to the first quarter of 2019.

As a reminder, our target is to achieve 34% online penetration for the corpulent-year 2020, and we’re correctly now on notice to achieve it. Despite the broader financial challenges and disruption to predominant parts of the healthcare market, the Medicare market remains very solid with a sizable chance of excessive-quality and inexpensive plans on hand to seniors. Our enrollment growth continues to very much outpace the total market, pushed by our omnichannel engagement mannequin that emphasizes customer exchange and provides individualized comparison tools which might perhaps per chance presumably be outlandish to eHealth. Within the wake of social distancing and lingering health concerns linked to COVID-19, we factor in seniors will safe our platform to be an top more crucial and precious resource.

Turning to our first-quarter financial results. Total earnings for the first quarter of $106.4 million grew 55% year over year. Our adjusted EBITDA used to be $11.1 million, a 30% year-over-year develop. GAAP web profits used to be $3.5 million, and cash plug from operations in the first quarter used to be definite $8.9 million.

All thru the quarter, we raised roughly $227 million thru an equity offering to pork up persisted solid organic growth in our core Medicare market. Despite the lots of growth completed in every of the closing two years, which used to be correctly sooner than total market growth rates, our Medicare membership peaceable represents top 1% of the total Medicare population in the nation. We glimpse sizable exchange to web extra scale and teach market fragment. As of March 31, we had $246 million in cash, cash equivalents and marketable securities and no debt on our balance sheet.

We belief to deploy this capital in our Medicare industry, along side to finance marketing and marketing initiatives, fund additional expansion of our telesales capability and underwrite persisted enhancements to our technology platform, equivalent to projects geared toward increasing customer retention, and boosting online engagement and conversion rates. We are in the strategy of rising our operational approach for this year’s annual enrollment period, which takes into yarn the expansion capital now on hand to us submit offering, as correctly as one of the necessary crucial crucial learnings from the closing AEP. Indubitably one of the necessary provocative implications of successfully challenging our customer care brokers to a some distance off mannequin is the flexibleness this mannequin can potentially offer us in staffing for the excessive-quantity fourth quarter. Deploying home-based totally brokers opens up unusual geographies for our skills acquisition, reduces popularity of job popularity as a constraint on the expansion of our employed agent population and might perhaps per chance presumably, over time, enhance our total agent productivity by lowering our reliance on outsourced name heart brokers.

Whereas we’ve had fresh success in increasing productivity of our employed brokers and outsourced name heart brokers, our internal employed brokers proceed to convert query into applications at consistently bigger rates. Optimization of our sales and marketing and marketing efforts remains a central focal level of our lengthy-term growth approach. Our Individual & Family Notion permitted people declined 19% when compared to the first quarter of 2019. We saw an uptick in IFP enrollments in March, which has carried thru to the 2d quarter and used to be in all probability pushed by patrons shedding employer coverage and turning to the individual market.

Alternatively, this didn’t sufficiently offset slower teach in the first two months of the quarter. We proceed gazing increased retention of gift IFP plans ensuing in bigger estimated LTVs in this industry. Popular people for runt industry community merchandise declined 15% when compared to the same quarter a year previously. We entered this year with sizable momentum, and have, yet yet again, started the year solid, producing most important Medicare enrollment growth and exceeding our expectations for the quarter.

eHealth is proving to be an an increasing number of crucial destination for patrons in this tough ambiance, a testament to a predominant value that we present to patrons by bringing exchange, transparency and comfort to the chance of medical health insurance coverage. We are updating our 2020 annual guidance to copy our first-quarter outperformance. And I are trying to namely demonstrate that our revised guidance does no longer replicate the deployment of cash raised in the equity financing. Identical to closing year, we’re working to lock down our operational belief for the annual enrollment period by the conclude of June and intend to fragment our revised projections with you on the time we yarn 2d-quarter earnings.

We proceed to search most important growth possible that might also be captured by additional expansion of our telesales capability, blended with riding an increased proportion of Medicare enrollments thru our online platform. Meaningfully, the unusual work-from-home mannequin for our brokers provides an additional avenue for earnings and earnings leverage all thru AEP that has no longer been on hand to the industry in prior year. Briefly, I remain excited and warranted about our growth opportunities for 2020 because the eHealth mannequin continues to assemble correctly and we showcase the company’s differentiated value proposition available in the market. And now I will flip the determination over to Derek Yung, who will review our first-quarter financial ends in increased aspect and present our revised guidance ranges.

Derek YungChief Financial Officer

Thanks, Scott, and immediate-witted afternoon, all people. Our first-quarter financial results replicate underlying power of our platform and persisted solid execution in our Medicare industry no matter the merciless public security and linked macroeconomic ambiance. We entered the year on a solid demonstrate, with the first-quarter Medicare earnings of 96.2 million, rising 75% when compared to a year previously, pushed by a 46% develop in permitted Medicare people, 86% growth in non-price earnings, as correctly as an develop in residual or tail earnings acknowledged all thru the quarter. The Medicare segment generated a earnings of 22 million, an develop of 103% when compared to the first quarter of 2019.

The initiate enrollment period used to be a significantly crucial contributor to our first-quarter Medicare enrollments this year, with Medicare Revenue permitted people rising 59% when compared to the first quarter a year previously. Medicare Revenue enrollments attributable to the initiate enrollment period represented a bigger proportion of our total permitted Medicare people when compared to the first quarter of 2019. Our estimated chance of earnings-producing Medicare people used to be roughly 726,000 on the conclude of the first quarter, or an develop of 44% when compared to a year previously. Identical to a year previously, we saw an develop in Medicare Revenue member churn to above-realistic ranges all thru the first quarter.

It used to be pushed basically by bigger than realistic attrition rates in the cohort that we enrolled all thru the closing AEP in Q4 of 2019. As you take dangle of, we noticed a the same develop in Q1 of closing year, which used to be adopted by a decline in member churn in subsequent quarters. We factor in that this unusual seasonal pattern of consumer behavior is due to their introduction of the initiate enrollment period in 2019 and that seniors who optimize their plans all thru the first quarter are less liable to churn later in the year. The trend is liable to be even more pronounced this year as more seniors took earnings of the initiate enrollment period on our platform when compared to a year previously.

We presently search files from for churn to screech no later in the year, as used to be the case in 2019, and proceed to forecast 2020 Medicare Revenue lifetime values to be roughly flat with closing year’s. It is miles regularly crucial to illustrate that churn in our member horrible is top in year one and declined very much in subsequent years. As an example, our realistic first churn — first year churn for our Medicare Revenue member is in the mid-30s. This declined to top below 20% in year two and on the opposite hand to 11% in year three.

In year four and beyond, churn rates have dropped to single digits. In consequence, in classes of excessive growth, when unusual people signify a bigger proportion of our total member horrible, we glimpse bigger total implied churn. We have supplied our historical realistic churn rates by year as fragment of our first-quarter 2020 earnings slides posted on our investor relations website. First-quarter constrained lifetime values of our Medicare Revenue product grew 5% year over year, due basically to an develop in realistic price payments per member.

As a reminder, our constrained LTVs are derived by applying a constraint factor to our statistical estimates of anticipated lifetime price receipts. We’re effectively discounting the earnings we booked when compared to what we search files from to acquire. For the rationale that adoption of ASC 606 for earnings recognition, our cash collections from Medicare Revenue plans have assuredly exceeded initial estimates, reflecting the suitable conservatism of our ability. This dynamic has contributed to the recognition of residual or tail earnings from Medicare Revenue people in every quarter in 2019 and, yet again, in Q1 of 2020.

I’d should illustrate that beginning with this quarter, Q1 of 2020, we might perhaps per chance presumably be reporting the chance of unusual paying people added all thru the quarter with the intention of providing extra transparency into our membership dynamics. The delta between permitted people and unusual paying people exists due to no longer all permitted applications outcome in an active coverage for various causes. For a given period, this conversion rate is also impacted by the jog between the time an utility will get permitted by a carrier and we rep the cost cost for that coverage as we count an applicant as a peculiar paying member after we rep the cost payments. As an example, in the first quarter of 2020, we had 85,000 permitted Medicare people and added 161,500 unusual paying people, reflecting a predominant spillover of enrollments from Q4 of 2019.

The variation between the 2 metrics are inclined to be significantly pronounced in the first and fourth quarters, given the sizable chance of enrollments permitted all thru the annual enrollment period in the fourth quarter attain no longer initiate producing commissions till the first quarter when these plans change into effective. Turning to our individual, family and runt industry segment. First-quarter earnings from this segment used to be 10.3 million, a 26% decline when compared to a year previously. This used to be pushed by decrease IFP enrollments and tail earnings when compared to a year previously, partially offset by an develop in brief and runt industry community commissions.

The Individual, Family, Little Enterprise segment remained a winning stand-on my own industry for the first quarter, producing segment earnings of two.6 million when compared to 6 million in the first quarter of 2019. Our estimated individual and family belief membership on the conclude of the first quarter used to be roughly 113,000, down 13% when compared to the estimated membership we reported on the conclude of first quarter a year previously. The estimated chance of people on runt industry merchandise used to be roughly 44,000, a 3% develop when compared to a year previously. Our total earnings for the first quarter used to be 106.4 million, an develop of 55% when compared to the first quarter of 2019.

Our total estimated membership on the conclude of the quarter for all merchandise blended used to be roughly 1,137,000 people. Now, I’d should review our running charges and profitability metrics. First-quarter running charges replicate a bigger ride rate in mounted charges as we scale our industry in the 2d half of 2019 in preparation for our annual initiate enrollment period. We predict year-over-year growth rates in G&A and technology and recount teach to initiate normalizing in the third quarter.

For the corpulent-year 2020, we search files from to search mounted value leverage ensuing in margin expansion relative to 2019. The total variable value — acquisition value per permitted Medicare member, which entails marketing and marketing and customer care-linked teach, increased by 5% year over year. Below that, variable name heart charges per permitted Medicare member grew 6% year over year as we retained a bigger chance of brokers following the annual enrollment period when compared to closing year. This develop also reflects charges linked with challenging our name heart to a some distance off mannequin in March in light of the coronavirus disaster.

Marketing charges per permitted member grew 5%, basically reflecting a shift in channel mix with the persevering with develop in enrollment volumes coming from our digital promoting channel and the decline in contribution from some of our partners that pulled relief on marketing and marketing initiatives in this ambiance. For the corpulent-year 2020, we proceed to search files from that total variable acquisition charges per permitted Medicare member will come down from 2019 ranges, pushed basically by additional features in agent productivity. GAAP web profits for the first quarter of 2020 used to be 3.5 million when compared to GAAP web lack of 5.2 million for the first quarter of 2019. Adjusted EBITDA for the first quarter of 2020 used to be 11.1 million when compared to 8.6 million for the first quarter of 2019.

We calculate adjusted EBITDA by adding stock-based totally compensation, commerce in immediate-witted value of earnout liability, depreciation and amortization, amortization of intangible assets, other profits and earnings for profits taxes to our GAAP web profits. Our first-quarter cash plug from operations used to be 8.9 million when compared to 12.7 million for the first quarter of 2019. Capital expenditures, which encompass capitalized internally developed tool charges, were roughly 6.1 million for the first quarter. As of March 31, we had 246 million in cash, cash equivalents and marketable securities, and we had no debt excellent below our line of credit.

Our balance sheet also reflects a predominant commissions receivable balance of roughly 560 million that is made out of 125 million that we search files from to acquire over the following 12 months and 435 million in lengthy-term commissions receivable. We are updating our 2020 annual guidance to copy our outperformance so some distance and an develop in our diluted fragment count following the equity offering that we completed in March. As Scott mentioned, this guidance does no longer replicate our corpulent investment belief for the upcoming AEP as a results of the increased working capital supplied by the offering. We’re now forecasting revenues for 2020 to be in the vary of 600 to 640 million when compared to the prior guidance vary of 580 to 620 million.

Medicare segment revenues are indubitably anticipated to be in the vary of 553 to 589 million when compared to prior guidance of 533 to 569 million. individual, family and runt industry segment’s earnings is anticipated to be in the vary of 47 to 51 million, which is unchanged when compared to prior guidance. We search files from GAAP web profits for 2020 to be in the vary of 70 to 85 million when compared to prior guidance vary of 68 to 83 million. We search files from 2020 adjusted EBITDA to be in the vary of 125 to 140 million when compared to the prior guidance vary of 120 to 135 million.

2020 Medicare segment earnings is now anticipated to be in the vary of 157 to $174 million when compared to our prior guidance vary of 152 to $169 million. Individual, family and runt industry segment earnings is anticipated to be in the vary of 17 to 18 million, which is unchanged when compared to prior guidance. Guidance for company fragment companies and products charges, in addition to stock-based totally compensation and depreciation and amortization charges, remains unchanged at roughly 49 to $52 million. GAAP web profits per diluted fragment for 2020 is anticipated to be in the vary of $2.55 to $3.10 when compared to prior guidance of $2.64 to $3.23 per fragment.

Non-GAAP web profits per diluted fragment for 2020 is anticipated to be in the vary of $3.41 to $3.90 when compared to prior guidance vary of $3.56 to $4.90 per fragment. Money feeble in operations for 2020 is now anticipated to be in the vary of 61 to 64 million when compared to prior guidance vary of 52 to 55 million. Money feeble for capital expenditures is anticipated to be in 18 to 29, which is unchanged from prior guidance. Lastly, I’d should touch upon sequential traits.

Per previous seasonality traits, the 2d and third-quarter Medicare enrollment volumes are on the bottom points when compared to other times of the year. Closing year, our year-over-year growth in the 2d quarter used to be aided by a significantly previous skool comparison period in 2018 that incorporated the closure of our Westford, Massachusetts, sales heart in Would possibly well per chance of 2018. Whereas we search files from year-over-year growth in the 2d quarter to remain solid, the bustle of develop is no longer going to earnings to the same level due to this weaker comparison period in Q2 of closing year. Second-quarter tail earnings is also anticipated to screech no sequentially.

Identical to closing year, we’ll be retaining the majority of our in-home brokers submit OEP, which is anticipated to outcome in a additional develop in agent productivity all thru the necessary selling season in Q4, but is adding to our price horrible all thru the decrease-quantity, 2d and third quarters. In consequence, we presently search files from the 2d-quarter earnings growth to be roughly 20% on a year-over-year basis, and we search files from our adjusted EBITDA loss in the mid-single-digit millions of bucks for the quarter. We proceed to refine our sales and marketing and marketing investment plans for the fourth quarter and search files from to finalize these plans over the relaxation of this quarter. We belief to present additional update guidance for 2020 that entails the anticipated results of these investments, as correctly as an updated 5-year outlook on the time of our 2d-quarter earnings yarn.

I are trying to remind you that these feedback in our guidance are in accordance to fresh indications of our industry and our fresh estimates, assumptions and judgments, that might perhaps per chance presumably commerce at any time. Our steady results might perhaps per chance presumably fluctuate as a results of adjustments in our estimates, assumptions and judgments. We undertake no duty to update our feedback or our guidance. I’d now wish to flip it relief to Scott, who will web some brief closing remarks, and we’ll then initiate up the determination for questions.

Scott?

Scott FlandersChief Executive Officer

Thanks, Derek. Earlier than we web into Q&A, I’d should wrap up our prepared remarks on the present time by emphasizing that in the face of the disruption to the international economy and our day-to-day lives as a result of coronavirus, our team is more committed than ever to our mission of connecting every one with the excellent-quality, most inexpensive medical health insurance coverage for his or her lifestyles circumstances. The excellent assets you ought to illustrate popping out of this name are the basics of our industry proceed to reinforce, and we’re achieving solid running metrics across the industry by executing on a transparent approach and making centered investments to pressure growth. Anyway you reduce it, our financial results replicate the lots of progress we’re making.

Our omnichannel customer engagement platform is ideally positioned to attend seniors safely and more effectively, both now and in the end. The addition of work-from-home capabilities for our brokers provides to the lots of earnings and margin leverage opportunities we’ve in 2020 and beyond. Our updated 2020 annual guidance reflects our outperformance so some distance, but no longer the extra investments we’re contemplating and planning for this year’s annual enrollment period. These can be supplied on the side of our 2d-quarter results.

So, I’m happy with the efforts of our team to utter in this tough ambiance and factor in that we’re correctly positioned to proceed riding growth, margin expansion and shareholder value as we attain on our growth ideas. With that, Derek and I no longer sleep for answering your questions. Operator, please initiate the twin carriageway.

List building internet marketing list build a list how to build a list affiliate marketing internet marketing Questions & Answers:

Operator

[Operator instructions] Our first query is from Jailendra Singh of Credit ranking Suisse. Your line is initiate.

Jailendra SinghCredit ranking Suisse — Analyst

Thanks loads. Hiya, guys. So, thanks for clarifying your feedback in the press beginning that the guidance does no longer encompass investment, but it completely looks tackle it does no longer encompass the web pleasure from these investments as correctly. I bet, that used to be creating some confusion.

I are trying to have a study up on the feedback you made around the increased churn in the first quarter for your 4Q ’19 MA cohort in explicit. Can you present any color for your recapture rate? Did that strengthen? What you saw closing year? And the level I’m trying to web to is that, if there might be an increased churn amongst seniors, it might in all probability in all probability per chance presumably no longer be a dash raze outcome from your level of view as lengthy as these seniors cease for your platform. So, top wait on us web a flavor relating to the recapture rate. What that you just might presumably presumably be seeing for your e book?

Scott FlandersChief Executive Officer

Merely. And excellent to clarify for your first level, Jailendra, that you just might presumably presumably be immediate-witted that we very intentionally increased our guidance for the corpulent-year by simplest the amount of our beat to consensus in Q1. As — and we did the same factor in Q1 of 2019. After which we increased by correctly over twice that quantity after our Q2 earnings name, after we had our corpulent agent staffing and marketing and marketing mix plans in popularity.

The same job goes to be undertaken this year. And excellent to remind all people, we increased our guidance closing year to $375 million after Q2. And with out tail earnings adjustment, we came in at 464 million, a $90 million beat to that upgraded guidance. So, we’re reckoning on the same form of job this year.

We weren’t in the popularity on the conclude of Q1 so as to quantify precisely what the extent of develop in the investment and revenues would be. To your other query on the churn. Churn is a facet of our mannequin, and we’re the market where seniors come to buy to compare plans. And we saw an elevated churn in Q1 of 2019 off of the heavy enrollment in Q4 of 2018, and that used to be due to CMS opened up the first quarter for enrollment for switching.

The same skills came about this year. The recapture rate this year used to be 10% in opposition to a recapture rate of 9%, so simplest very modestly up. This is an popularity where we glimpse exchange for enchancment. Nonetheless baked into all of our LTVs and all of our financial accruals is the assumptions of the steady churn rates.

Tim, can I wait on you to account for significantly on this?

Tim HannanChief Marketing Officer

Trip. This is Tim Hannan. Yes. I bet what we saw used to be the same behavior we saw closing year.

As Scott stated, our recapture rate used to be a puny of higher. What we’re excited by is with this additional year of working out and data, we’ll be ready to head and strengthen on these metrics, we assume, over time, due to we’ll be ready to value safe out how to web higher ideas all thru the annual enrollment period and then in the OEP, which of our people we can target or ought to target as potentially needing to adjust their belief. So, or no longer it is now a factor of annual lifestyles here, and we assume, with our scale and the breadth of exchange we’ve, we can be taught at a faster rate and strengthen on these metrics.

Jailendra SinghCredit ranking Suisse — Analyst

OK. After which I are trying to search files from relating to the buyer acquisition charges with the total advertisement charges. Choice of advertisers being down. Merely at a excessive level, unfamiliar for your thoughts around customer acquisition charges getting less difficult in a recessionary ambiance as rather about a other companies are lowering down on advert spending.

Any thoughts on that? As soon as you happen to glimpse that might perhaps per chance presumably be some earnings for you guys?

Scott FlandersChief Executive Officer

Yeah. So, Tim Hannan is our chief earnings officer, who runs all of sales and all of marketing and marketing for us. Tim, I will wait on you to account for.

Tim HannanChief Marketing Officer

Trip. So, I bet on the disruption from COVID-19 and what it might in all probability in all probability per chance presumably mean to different channel, I bet it goes to fluctuate by channel. So, in some areas, it might in all probability in all probability per chance presumably initiate up stock opportunities for us to advertise in areas that presumably we had been priced out of sooner than or hadn’t experimented with. Nonetheless in other areas, as Derek essential in his feedback, or no longer it is disruptive to sure partners, who now can not market on our behalf.

So, assuredly speaking, it does web more promoting stock on hand to us, but it completely will vary channel by channel, and we’ll be watching to search safe out how to adjust our investments in accordance to what we perceive.

Jailendra SinghCredit ranking Suisse — Analyst

OK. And my closing query. With respect to your online enrollment proportion of 24%, by any likelihood attain that you just might presumably presumably have a breakdown on how powerful used to be the web enrollment proportion in the closing two weeks of March? Became as soon as it bigger than 24%? Merely unfamiliar if there used to be any different ability seniors are behaving in the closing two weeks of March.

Scott FlandersChief Executive Officer

Tim, did you perceive one thing else?

Tim HannanChief Marketing Officer

We attain glimpse a surge in the closing — the very conclude of the quarter when our brokers are more occupied. Or no longer it is no longer as pronounced as what we glimpse all thru the annual enrollment period, but it completely does exist.

Jailendra SinghCredit ranking Suisse — Analyst

OK. Thanks loads.

Operator

Thank you. Our subsequent query comes from George Sutton of Craig-Hallum. Your line is initiate.

George SuttonCraig-Hallum Capital Neighborhood LLC — Analyst

Thank you. I used to be wondering whenever you happen to might perhaps per chance presumably give us top generically more level of view on the styles of assets that you just might presumably presumably be contemplating to additional grow the industry with this extra capital. And I’m referring to more brokers or internally built technology, third-birthday party technology, one thing else that you just might presumably presumably be pondering of from an M&A level of view. That is roughly the perspective of the query.

Scott FlandersChief Executive Officer

Thanks, George. So, we’re no longer contemplating any M&A. I very pointedly commented in my script that we raised $227 million thanks to our organic growth opportunities that we glimpse over the following two years and have fully budgeted for the total tech and recount spending we’ve to web to 34% online enrollment this year and focusing on swiftly as possible attending to 50% threshold. We even have introduced in the total G&A that we desire.

And that you just might glimpse in the 2d half of the year rather loads more running leverage on our earnings growth. What we’ve had in the first half is more healthy ride rate from the closing half of 2019. So, the investment goes to head into extra agent capability, and or no longer it goes to head into extra customer acquisition, with the intention of us asserting our total unit economics.

George SuttonCraig-Hallum Capital Neighborhood LLC — Analyst

Supreme. This is also a question for Tim. Relative to Medicare belief finder, which used to be obviously, a predominant misfortune in Q4, bought various seniors into the rotten plans and used to be anticipated to present some — an top amount of turnover in Q1. I’m unfamiliar whenever you happen to felt the earnings of that thru these patrons coming to you.

And attain that you just might presumably presumably have any level of view on the medicare.gov outcomes in Q1?

Tim HannanChief Marketing Officer

Elegant query. So, what I’d train there might be our feedback would be highly — doubtlessly, anecdotal might perhaps be the most efficient ability to listing it. We did glimpse increased taking a take into yarn in Q1, as we described, all thru the initiate enrollment period. And fragment of that, surely, has to come from seniors no longer being in the immediate-witted belief.

So, we assume we benefited from that in some ability, but laborious for us to quantify precisely how powerful. And on Medicare belief finder, assuredly, I mean, I bet we have not considered any most important adjustments that might perhaps per chance presumably commerce our — web of our bullishness on our platform, the value that we present available in the market. And so, it has no longer disrupted our plans in any ability.

George SuttonCraig-Hallum Capital Neighborhood LLC — Analyst

OK. I enjoy the solutions.

Operator

Thank you. Our subsequent query comes from Frank Morgan of RBC Capital Markets. Your line is initiate.

Frank MorganRBC Capital Markets — Analyst

Elegant afternoon. I bet, first query, more of a taking a take into yarn checklist query, how powerful — are you able to name out a quantity on how powerful this migration to work-from-home impacted charges in the quarter?

Scott FlandersChief Executive Officer

Derek?

Derek YungChief Financial Officer

Yeah, I will take that. Or no longer it is if truth be told no longer cloth, Frank. What — due to we, as Scott commented earlier, have considered an develop in productivity year over year in the work from — group of workers, and we proceed to search it at the same time as they pass from the bodily popularity name heart into rep a living from home. So, the charges linked to challenging them home is indubitably more on the technology aspect and challenging charges into logistics, so that they’re if truth be told immaterial.

Frank MorganRBC Capital Markets — Analyst

Got you. OK. And I bet, when I take into yarn — across the total channels, whether or no longer or no longer it is digital promoting or recount television or mail or electronic mail, have you considered, over the previous several years, web of any commerce in the mix of the numerous channels? And have you noticed any incompatibility in the retention variance amongst these groups? And what are you seeing from that level of view?

Scott FlandersChief Executive Officer

Yeah. Tim, I will wait on you to address that.

Tim HannanChief Marketing Officer

Trip. Yes. So, our investments, I’d train, ebb and plug in accordance to the efficiency that we’re seeing. And or no longer it is why we’ve the portfolio ability that we attain.

And so, there are occasions that we’ll lean more aggressively into one thing tackle recount mail. We’ll glimpse explicit artistic stop being rather as effective, but at that level, we’ll roll out a peculiar recount response TV artistic, and that might take on more quantity. So, we’re continuously experimenting in our channels. Smartly, we never are trying to change into too dependent on any one channel.

And we attain computer screen the downstream quality of the enrollment and web adjustments. Nonetheless there are no longer very most important adjustments or variants channel to channel. Most often, we’ve been making improvements to the quality of our enrollments across the board.

Frank MorganRBC Capital Markets — Analyst

Got you. One more and I will hop. I top noticed, obviously, you have not incorporated one thing else on your guidance for the capital. Nonetheless I did perceive your assumptions and guidance around cash plug from ops appeared a puny bit more destructive.

So, top any color there, and I will hop off.

Derek YungChief Financial Officer

Yeah. Frank, so that is indubitably fully tied to the extra investments we made in Q1 to pressure more growth.

Frank MorganRBC Capital Markets — Analyst

Got you. OK. So, or no longer it is web of the operational investment, whenever you happen to will, that flows thru cash plug from — OK. Thank you.

Derek YungChief Financial Officer

Elegant, that is immediate-witted.

Operator

Thank you. Our subsequent query comes from Tobey Sommer of SunTrust. Your line is initiate.

Tobey SommerSunTrust Robinson Humphrey — Analyst

Thank you. I used to be wondering whenever you happen to might perhaps per chance presumably give us some extra color, presumably some examples of earnings and earnings opportunities that the roughly revelation that you just can be ready to rep a living from home with home brokers has revealed to you.

Scott FlandersChief Executive Officer

Yeah. And I will flip that to Tim. Nonetheless sooner than I attain, I’d top train, we — I commented that it used to be executed within per week and executed seamlessly. It used to be no longer with out stress and stress.

And I’d — any of the eHealth executives which might perhaps per chance presumably be listening, I’d no longer are trying to diminish, you make no longer are trying to, what a herculean effort it used to be and the proven truth that we’ve gained productivity, doubtlessly nothing at my tenure at eHealth has impressed or delighted me more. Nonetheless Tim, I will wait on you to focus on namely to some of the prospects that work-for-home flexibility might perhaps per chance presumably have the funds for us.

Tim HannanChief Marketing Officer

Trip. Thanks, Scott. Yes. So, I bet the No.

1 flexibility that it affords us is we’ve been constrained by the steady estate in our name facilities for our internal agent counts. And so, we went thru the lots of effort of opening up a peculiar headquarters in Indianapolis closing year, recruiting into it, practising up these brokers, and we saw excellent efficiency from that effort. Nonetheless we needed to web massive upfront investments in clarify to manufacture that popularity. With a work-from-home capability, we can recruit from a powerful wider geographical horrible than where we’ve been ready to recruit from to this level.

And various our brokers have been inquiring for work-from-home capabilities. So, we assume this offers us a approach to retain bigger-performing brokers over the lengthy haul by giving them the flexibleness to no longer wish to come into the popularity of job. So, we’re taking a take into yarn at how we’ll allege, how we’ll license and appoint our brokers on a some distance off basis. And as we explore that exchange, we’ll have a higher sense for top how some distance we can develop our internal agent horrible this year.

Nonetheless on condition that these brokers are bigger-performing than our companion brokers have been, increasing their fragment of our agent mix will web all of our investments return higher due to we’ll glimpse bigger conversion rates.

Tobey SommerSunTrust Robinson Humphrey — Analyst

And as a notice-up, does this commerce the competitive landscape as, presumably, others realized their units weren’t rather as versatile?

Scott FlandersChief Executive Officer

Yeah, I make no longer have various files competitively. I will clarify you, and we did touch upon this, that though we’ve made strides in bettering productivity and conversion in our outsourced brokers, our internal brokers are peaceable dramatically more productive. And so, to the extent that we’re no longer popularity shrimp, to the extent that we can teach a hub-and-spoke approach and develop more almost with out popularity increases, this permits us to develop our mix of captive brokers versus outsourced brokers. And that does enable us to scale more, to scale with bigger quality and with bigger productivity.

So, it is a — it used to be an unexpected raze outcome of what used to be an in any other case rather unwelcome disaster.

Tobey SommerSunTrust Robinson Humphrey — Analyst

Closing query from me. Has your online skills informed and skewed your glance for what the lengthy-term opportunities for online enrollment is?

Scott FlandersChief Executive Officer

Smartly, I will solution that in my — from my level of view and search files from Tim to weigh in as correctly. No, our glance is that online is even more crucial and the mix shift to both online and telephonic is liable to bustle up thanks to fears of being in close proximity to strangers. We assume seniors are going to be significantly peaceable coming into AEP here. We — if one thing else, we indubitably assume our online enrollment skills and taking a take into yarn skills is more crucial, no longer less.

Tim, what would you train to it?

Tim HannanChief Marketing Officer

No, I’d echo these feedback entirely. I bet we’re no longer definite precisely the total ramifications of the coronavirus and the outcomes can have on taking a take into yarn behavior and preferences of seniors. Nonetheless the 2 units that I’d are trying to have are telephonic and online, and so we assume, with the enhancements we’ll web thru the year, both to the agent group of workers we top described, to the technology that our brokers teach in the determination facilities, but additionally to our online skills, that we’re correctly positioned in both environments to achieve correctly.

Tobey SommerSunTrust Robinson Humphrey — Analyst

Thank you.

Operator

Thank you. Our subsequent query comes from Dave Styblo of Jefferies. Your line is initiate.

Dave StybloJefferies — Analyst

Hiya there. Thanks for the questions. I wished — enjoy the feedback on the proceeds and what you can be ready to be the teach of these for, toward agent count marketing and marketing. I used to be wondering whenever you happen to focus on a puny more relating to the agent count teach there.

Attain you guys foresee the spike in unemployment, 20 million plus being unemployed in the closing 5 weeks, as there might be an exchange to presumably hire folk sooner than you assuredly would, I’m no longer definite when that you just might presumably assuredly web these hires, but is there an exchange to, presumably, grab some of these folk sooner than you will search files from? After which, while we’re talking about agent count, with the folk which might perhaps per chance presumably be indubitably working from home, as soon as issues web of normalize with corona, attain you search files from some of these folk to head relief into the popularity of job atmosphere? Or are you discovering that this mannequin is more healthy more efficient, and that you just might presumably presumably be if truth be told top no longer going to need the steady estate anymore and the unusual mannequin if truth be told is to have the overwhelming majority of the brokers rep a living from home?

Scott FlandersChief Executive Officer

Smartly, or no longer it is necessary to have been listening in on some of our internal calls of gradual. So, some of here’s steady-time, Dave. Nonetheless I bet two issues. One, sure, I attain assume we can web a bigger caliber of agent this summer season than we did closing summer season thanks to unemployment.

We’re no longer lowering our horrible compensation, in actual fact, we’re taking a take into yarn, in some areas, at increasing it. We’re no longer taking a take into yarn to diminish any of our agent compensation. And as you can be ready to mediate, as more of our brokers are the teach of the assisted online efforts, they’re ready to job more calls, which ends in more enrollments and more commissions for them. So, the 2d portion of this that you just didn’t search files from, but it completely’s a corollary web of implied on your query, we’re also waiting for decrease turnover.

That is an unwelcome aspect of our mannequin is to lose seasoned brokers for the rationale that seasoned brokers, with more than a year of tenure, have a 30% bigger conversion rate than brokers in their first season. And so, we assume it might in all probability in all probability perhaps be — we’ll be ready to recruit more and bigger caliber brokers as sure by the bustle at which they move the licensing exams. And we factor in, and here’s total speculation, I wish to qualify this, but all instincts that we’ve are that our turnover will move down, which is prepared to diminish our recruiting, practising expense and give us more seasoned brokers going into the autumn. So, here’s fragment of the motive that we were so definitive that we’re going to be increasing our guidance after Q2, and we top make no longer know by what steady amount yet due to we’re so early into all of these components.

Dave StybloJefferies — Analyst

OK. Got it. After which on the selling and marketing teach, are you guys discovering any unusual channels that you just indubitably have not been ready to pursue? I do know you commented a puny bit about some charges coming down, but is it in all probability that — you rep the walk wheel spending, you know what’s working if truth be told correctly. Is it more about spending additional cash in these gift channels to generate more submitted apps? Or is there some aspect where, Howdy, there might be some unusual rising opportunities that we have not been ready to pursue in the previous top thanks to capability boundaries, and we’re going to search at these?

Scott FlandersChief Executive Officer

Smartly, I’d tackle Tim to be on the hook to you for that solution, so I will defer to him.

Tim HannanChief Marketing Officer

Thanks, Scott. So, I’d train thru efficiency in Q1, we surely — the first two months weren’t affected by coronavirus in a predominant ability, and we did lean into what used to be working there. I bet what we’ve considered commerce in the closing six weeks is other advertisers pull relief and web stock more cost-effective in some channels. So, explicit examples for us would be Fb, YouTube, even some TV placements.

We’re taking a take into yarn at making investments in these areas to be taught whether or no longer they’d be viable for us on a move-ahead basis and at what label. So, it is a mix of us leaning into what we know, but broadening our horizons to search what we can be taught all thru this outlandish 2d to develop our portfolio.

Dave StybloJefferies — Analyst

Got it. After which top the closing one for Derek on the LTVs for Medicare Revenue. I bet guidance there, you mentioned, is peaceable flat for the year, no matter 1Q, I bet, used to be up 5%, and I do know the cost rates for brokers are up, I bet, mid-single digits. So, I’m top wondering, is that more of a conservative posture for your conclude? Or is there one thing — any other aspect that comes in that might perhaps per chance presumably trigger the — that to no longer develop by, name it, mid-single digits?

Derek YungChief Financial Officer

Yeah. So, that you just might presumably presumably be immediate-witted that our Q1 LTV for MA were — develop year over year used to be largely pushed by the bustle develop. Or no longer it is indubitably been quite powerful immediate-witted in line. And if truth be told what — the motive we’re forecasting flat LTVs is thanks to the develop of chance of seniors we’re seeing taking earnings of the initiate enrollment period that we glimpse inflicting that bigger churn in the AEP cohort.

We predict that, equal to closing year, that to normalize. And when that happens, this might occasionally be then roughly the unusual seasonal trend that we can glimpse from here on out thru after we assume a senior to churn, which is when they’ll swap, and when they is no longer going to after that, which is they’re in the belief that they need. So, that is what we’re ready for, and this is why we’re forecasting flat LTV.

Operator

Thank you. Our subsequent questions come from George Hill of Deutsche Financial institution. Your line is initiate.

George HillDeutsche Financial institution — Analyst

Howdy, immediate-witted afternoon, guys. And thanks for taking the questions. I bet, Derek, top a housekeeping query to initiate. Became as soon as there any meaningful influence on LTVs in Q1 from the unusual mannequin that we started the teach of in Q4?

Derek YungChief Financial Officer

Yeah. Howdy, George. So, the — no longer for Medicare Revenue for the rationale that enhanced mannequin that we’ve rolled out for Medicare Revenue adjustments were fragment of that 42.3 million commerce in estimates that used to be reported in Q4. We did roll out enhanced units for the relaxation of our Medicare merchandise and also our IFP predominant scientific merchandise.

And these enhancements didn’t create a predominant develop or decrease in LTVs that needed to be reported and adjusted. Nonetheless thru the ongoing work to reinforce our estimates for LTVs and to web definite that that we’re accurately conservative, we persisted to achieve that in Q1 and were a success.

George HillDeutsche Financial institution — Analyst

OK. And Scott, roughly early. I make no longer know how steady-time that you just might presumably presumably have the info, but presumably a puny bit of a speculative query for you due to I acknowledge that Q1 ended sooner than the COVID disaster if truth be told hit across the nation. Nonetheless I bet, are you guys ready to focus on about whether or no longer you saw one thing else meaningful, I’d name it, between the conclude of that third week of March and roughly as much as the 2d on online enrollment dates given the COVID disaster? I’m top pondering that this has to be one thing that is roughly meaningfully impacting the on-the-ground broker.

And that roughly rolls into the query, as you search at what’s taking place now, tackle, which adjustments in the industry in the ability clients teach roughly change into permanent.

Scott FlandersChief Executive Officer

Yeah. To the latter query, I’d train I’m ability too early to be speculating as to what can be permanent. I’m very optimistic that we’re going to have a yarn enrollment year this year thanks to the components we talked about with respect to topic brokers. We’re hearing anecdotally that they are struggling to e book appointments with seniors.

It top stands to motive, and we assume that might proceed. God forbid, that there might be a 2d wave in the autumn, which would shut down, additional isolate seniors. We assume all of that performs in correctly for our mannequin, online and telephonic. We executed strongly with excessive productivity in these few weeks that we labored from home on the conclude of March.

And that momentum has persisted here for the first three weeks of April. Tim, would you comment additional?

Tim HannanChief Marketing Officer

Yeah. I mean, I mentioned sooner than, we did glimpse a surge in online enrollment on the conclude of the quarter, but I’d no longer train it used to be more than we were waiting for. So, we assuredly glimpse that on the — or we saw that closing year, and we anticipated to search it yet again this year. We can be in a position to proceed to work on broadening our outreach in online channels.

And if some of these channels, I mentioned sooner than, change into inexpensive, and with the enhancements we’re making to our online skills, we desire be ready to bustle up some of that shift to online. Nonetheless thru — as Scott stated, thru consumer behavior and the way in which or no longer it is modified in a web of durable ability, we’re no longer definite yet, but we indubitably feel tackle we’re prepared for a range of outcomes.

George HillDeutsche Financial institution — Analyst

OK. And Scott, I make no longer know, top a brief notice-up. I do know you guys are no longer ready to focus on relating to the numbers yet, but are you ready to focus on at all about what adjustments can be thought to be for the upcoming AEP from a strategic level of view?

Scott FlandersChief Executive Officer

Yeah. I bet the most wanted one is, closing year, we tripled our exterior brokers and ideal barely no longer rather doubled our internal brokers. And we were simplest ready to achieve that due to we stood up Indianapolis after our capital elevate in ’19. This year, I factor in we’ll conclude up — when the numbers all model themselves out, George, that we’ll conclude up adding more internal brokers than we attain exterior brokers in an absolute quantity, which would mean, proportion-clever, a rather most important develop in internal brokers versus exterior brokers.

George HillDeutsche Financial institution — Analyst

OK. That is helpful. Thank you.

Operator

Thank you. Our subsequent query comes from Greg Peters of Raymond James. Your line is initiate.

Greg PetersRaymond James — Analyst

Smartly, a range of my questions have been requested. I used to be unfamiliar, you were top talking about outsourced versus captive, I ponder whenever you happen to glimpse a different level of churn companies create from your outsourced brokers versus the captives.

Scott FlandersChief Executive Officer

I make no longer know the approach to that. Tim, attain that you just might presumably presumably have any data?

Tim HannanChief Marketing Officer

We make no longer have any explicit data on that. We are constantly trying to search out programs that we can strengthen the quality of our mix. And so, enrollment way, agent model, marketing and marketing channel, we’re constantly taking a take into yarn at programs that we can web adjustments to reinforce that, but nothing most important ample that I’d name it out here.

Greg PetersRaymond James — Analyst

OK. I believed I’d top search files from. So, closing year, after we were monitoring your customer care enrollment charges per permitted member, it inched up, inched up might perhaps per chance presumably be too comfortable to a term, it went up quite noticeably in the 2d and third quarter sooner than dropping in the fourth quarter. Attain you predict that that goes to be the same web of plug that we glimpse this year? And I bet you stated, Derek, — presumably on the beginning of your feedback, you stated that you just search files from your customer care enrollment charges and variable marketing and marketing charges to be down this year versus closing year.

Can you top refresh me on that, please?

Derek YungChief Financial Officer

Yeah, Greg. So, I did. So, in our guidance and also in our long-established — revised guidance and long-established guidance, we think and have deliberate initiatives to have our total variable charges per community — Medicare member to be down when compared to closing year. And between the selling and marketing factor and the buyer care enrollment factor, we attain glimpse the buyer care factor to be the driver of that bargain as marketing and marketing can be doubtlessly roughly flat due to we can search to make investments more in marketing and marketing to teach more market fragment and enrollments.

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And whenever you happen to might perhaps per chance presumably endure in mind that, closing year, we leaned carefully into staffing early in clarify to web definite that that we had ample agent capability to address the query in AEP. The AEP, the year sooner than closing, so in 2018, and in 2017, we had inadequate agent capability, which supposed that we left money on the table, and we didn’t are trying to achieve that closing year. Now, in the strategy of doing that, we’ve realized loads. And fragment of what we realized is, we were too real on bringing folk early and if truth be told incur more charges, significantly on the dealer aspect — dealer brokers exterior aspect than we would have loved.

And these are the adjustments that we’re planning to web this year in addition to to extra investments in technology that might perhaps per chance presumably enable us so as to pressure more agent productivity.

Greg PetersRaymond James — Analyst

Nonetheless we ought to peaceable glimpse the buyer care enrollment charges per permitted member prime in the third quarter, though, in accordance to what that you just might presumably presumably have executed historically, immediate-witted?

Derek YungChief Financial Officer

Yeah. Yeah. So, sure, I narrate regret, I didn’t preserve that fragment. From a seasonal basis, fully, due to we initiate bringing in unusual brokers for practising and for licensing appointment sooner than AEP.

And when they attain that, they teach many weeks to arrange, and they’re no longer productive on the sales pressure. So, sure, we would glimpse, from a seasonality level of view, that quantity to spike, yet again, equal to prior years.

Operator

Thank you. Our subsequent query comes from Mike Newshel of Evercore. Your line is initiate.

Mike NewshelEvercore ISI — Analyst

Thank you. Scott, or no longer it is so logical, as you stated, there’ll be some behavioral commerce favoring Web and telesales due to COVID after we preserve some distance from face-to-face. Nonetheless are you going to have tackle a marketing and marketing messages, namely highlighting that security as a facet?

Scott FlandersChief Executive Officer

Yeah. We — I indubitably had a dialog with undoubtedly one of our opponents asking whether or no longer we were courageous ample to take that suggests. And my inclination is rarely any.

Mike NewshelEvercore ISI — Analyst

It goes to be a pure behavior commerce that I bet that folk know about you.

Scott FlandersChief Executive Officer

Yes. Yes. I bet we’ve ample tailwinds and be aware of mouth and ideal here’s no longer — this mix shift to telephonic and, secondarily, online is one thing that is been taking place apace in the end. We top assume these prerequisites will bustle up it in this year naturally.

Mike NewshelEvercore ISI — Analyst

Can you focus on top a puny bit more about how COVID is affecting the recruitment and practising of brokers? I mean, it sounds equivalent to that you just might presumably presumably have a bigger pool to scheme from now that that you just might presumably presumably have web money working from home and I’d assume due to bigger employment as correctly. Nonetheless top how are tackle the logistics affected? Can you web folk educated fully remotely and web licensing and exams? Or is there some disruption there?

Scott FlandersChief Executive Officer

Yeah. Tim, I will wait on you to solution.

Tim HannanChief Marketing Officer

Yeah. I will take that one. So, we — I’d train or no longer it is peaceable a puny bit early due to we have yet our corpulent-on ramp toward the fourth quarter. I’d train the early indications are that we indubitably feel tackle it goes to enable us to recruit excessive-caliber brokers into our group of workers.

We have been ready to pass our practising routine to some distance off. So, we’ve brokers, immediate-witted now, on a some distance off practising routine to web as much as walk and be one of the necessary crucial first ones deployed this year. The licensing and appointments will vary by screech, and we’re evaluating that, but we indubitably feel assured that we’ll have solutions that we desire or possible picks thru recruiting license — already licensed brokers. So, we’re peaceable evaluating the total excellent particulars.

Nonetheless total, so as to scheme more internal, excessive-caliber, quality brokers, we assume goes to be a web definite for us.

Mike NewshelEvercore ISI — Analyst

And I do know you top mentioned it, but my closing query used to be top going to be, tackle, attain you assume there might be more tackle already — it might in all probability in all probability perhaps be less difficult to recruit broken-down brokers which might perhaps per chance presumably be already licensed due to they’re going to be skittish about — they is no longer going to be skittish about whether or no longer they’ll attain face-to-face sales?

Tim HannanChief Marketing Officer

Yeah. We surely assume that might perhaps per chance presumably be a possible raze outcome. So, we’ll be watching as we recruit to search if that is what we glimpse.

Mike NewshelEvercore ISI — Analyst

Thank you very powerful.

Operator

Our subsequent query comes from Jonathan Younger of Barclays. Your line is initiate.

Unknown speaker

Roughly going relief to the churn that that you just might presumably presumably be experiencing with OEP, as you roughly take into yarn AEP coming up later this year, is there one thing else that that you just might presumably presumably be — any steps that you just might presumably presumably be taking where that you just might presumably presumably are trying and wait on strengthen the retention rate so that a member roughly goes into the immediate-witted belief with out churning in 1Q? Merely any thoughts there?

Scott FlandersChief Executive Officer

Yeah. So, that is fully one other example. You desires to be listening into some of our internal discussions. We have been making an increasing investment in agent tools.

And we’ve deployed some of these, but we remain in the early days of deploying technology to if truth be told making our brokers, no longer top more efficient where we’ve concentrated in the previous, but additionally give them higher advice pork up tools and determination pork up tools to web the seniors into the immediate-witted belief. Tim, I will wait on you to account for.

Tim HannanChief Marketing Officer

Yeah, I bet that is immediate-witted. As I stated earlier, we can struggle thru the info of what we noticed thru belief commerce from AEP to OEP from this year, and less so from closing year, but we’ve two years of skills to value how might perhaps per chance presumably we strengthen our advice, how attain we web more folk into the immediate-witted belief the first time around due to or no longer it is a advanced determination-making job. Or no longer it is their scientific doctors, their medicine, the plans which have modified or unusual plans supplied into their popularity. So, here’s no longer a easy advice.

And as we web higher and better with our breadth of exchange, we know that that might — that we can buy more assuredly than we’ve been going ahead. And I bet beyond that, we’ll also know who in our e book, who didn’t commerce all thru the AEP, can be clever to search at picks, and we’ll pass them to a higher suited coverage in the OEP. So, we assume we can attain higher on both of these fronts, and we’ll teach the info top obtained from the OEP to wait on us attain so.

Operator

Thank you. Our closing query comes from Lisa Springer of Singular Overview. Your line is initiate.

Lisa SpringerSingular Overview — Analyst

Thank you. My query is, is the main driver of the bigger technology value for the quarter used to be that atmosphere up folk to rep a living from home. And are these charges quite powerful all sorted now? Or are we going to search more charges for that in the 2d quarter?

Tim HannanChief Marketing Officer

Stride ahead, Derek.

Derek YungChief Financial Officer

Yeah, the develop used to be no longer linked — used to be no longer pushed by the pass to rep a living from home for the technology popularity. We did incur extra technology charges, but they weren’t cloth relative to that. Or no longer it is if truth be told the ride rate in our investments in ’19 coming into this year, and we attain search files from it to normalize in the relief half of the year. In our revised guidance, our company shared companies and products charges remains unchanged, and we peaceable search files from to web mounted value leverage and margin expansion as implied in our revised guidance.

Lisa SpringerSingular Overview — Analyst

OK. Thank you.

Operator

Thank you. I’m exhibiting no additional questions. I’d should flip the determination relief over to administration for any closing remarks.

Scott FlandersChief Executive Officer

Thank you, all people, for the total consideration you pay to eHealth, and we enjoy the very insightful questions on the present time. And we’re excited by the 2d quarter and no longer sleep for updating you on the Q2 earnings name in gradual July. Thank you, all people.

Operator

[Operator signoff]

Length: 68 minutes

List building internet marketing list build a list how to build a list affiliate marketing internet marketing Name contributors:

Kate SidorovichVice President of Investor Family

Scott FlandersChief Executive Officer

Derek YungChief Financial Officer

Jailendra SinghCredit ranking Suisse — Analyst

Tim HannanChief Marketing Officer

George SuttonCraig-Hallum Capital Neighborhood LLC — Analyst

Frank MorganRBC Capital Markets — Analyst

Tobey SommerSunTrust Robinson Humphrey — Analyst

Dave StybloJefferies — Analyst

George HillDeutsche Financial institution — Analyst

Greg PetersRaymond James — Analyst

Mike NewshelEvercore ISI — Analyst

Unknown speaker

Lisa SpringerSingular Overview — Analyst

Extra EHTH analysis

All earnings name transcripts


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