Health Insurance Innovations (HIIQ) Tops Q3 EPS by 7c, Beats on Revenues; Boosts FY17 EPS/Revenue Outlook

Health Insurance Innovations (NASDAQ: HIIQ) reported Q3 EPS of $0.46, $0.07 better than the analyst estimate of $0.39. Revenue for the quarter came in at $63.3 million versus the consensus estimate of $58.31 million.

Increasing 2017 Full Year Guidance

Given the record financial performance and long-term prospects, the Company is increasing its guidance for the full year 2017. The Company expects revenue to grow 27% to 30% year-over-year (with expected revenue of $235 million to $240 million), adjusted EBITDA to grow 48% to 58% year-over-year (with expected adjusted EBITDA of $41 million to $44 million) and adjusted EPS to grow 34% to 43% (with expected adjusted EPS of $1.50 to $1.60). The Company previously guided to full year revenue of $225 million to $230 million, adjusted EBITDA of $39 million to $42 million and adjusted EPS of $1.45 to $1.55.

"We are pleased to continue to deliver record results, which exceeded our revenue and profitability targets, reflecting the strength of our business and the successful execution of our strategy. We believe we are well positioned to continue to succeed and grow in the dynamic individual health insurance marketplace through our differentiated services. We are confident that we can deliver strong results and shareholder value through our successful expansion of innovative products, expansion of our distribution networks - including existing and new distributors, driving revenue growth and margins,” said Gavin Southwell, HIIQ's Chief Executive Officer and President.

Third Quarter 2017 Consolidated Financial Highlights

• Record revenue was $63.3 million, compared to $46.1 million in the third quarter of 2016, an increase of 37.4%.
• Record total collections from members (premium equivalents) of $99.4 million, compared to $78.5 million in the third quarter of 2016, an increase of 26.6%.
• Net income was $6.0 million, compared to $5.1 million in the third quarter of 2016, an increase of 17.6%.
• Record adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $12.8 million, compared to $8.1 million in the third quarter of 2016, an increase of 58.0%.
• GAAP diluted earnings per share was $0.30, compared to $0.25 in the third quarter of 2016, an increase of 20.0%.
• Adjusted earnings per share, also referred to as adjusted net income per share or adjusted EPS, was $0.46 compared to $0.33 in the third quarter of 2016, an increase of 39.4%.
• Policies in force as of September 30, 2017, totaled approximately 347,900, compared to 252,100 as of September 30, 2016, an increase of 38.0%.

GUIDANCE:

Health Insurance Innovations sees FY2017 EPS of $1.50-$1.60, versus the consensus of $1.57. Health Insurance Innovations sees FY2017 revenue of $235-240 million, versus the consensus of $234.55 million.

For earnings history and earnings-related data on Health Insurance Innovations (HIIQ) click here.

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