Health Insurance Innovations (HIIQ) Tops Q1 EPS by 2c

Health Insurance Innovations (NASDAQ: HIIQ) reported Q1 EPS of $0.52, $0.02 better than the analyst estimate of $0.50. Revenue for the quarter came in at $67.8 million versus the consensus estimate of $68.09 million.

First Quarter 2018 Financial Highlights

• Revenue was $67.8 million, compared to $55.9 million in the first quarter of 2017, an increase of 21.3%.
• Total collections from members (premium equivalents) of $105.0 million compared to $90.9 million in the first quarter of 2017, an increase of 15.5%.
• Net income was $6.0 million, compared to $8.5 million in the first quarter of 2017, a decrease of 29.4%. Drivers include higher stock-based compensation in the first quarter of 2018 and a one-time tax benefit in the first quarter of 2017.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $11.9 million, compared to $9.7 million in the first quarter of 2017, an increase of 22.7%.
• GAAP diluted earnings per share was $0.33, compared to $0.58 in the first quarter of 2017, a decrease of 43.1%. Drivers are consistent with change in net income.
• Record adjusted earnings per share, also referred to as adjusted net income per share, or adjusted EPS, was $0.52 compared to $0.36 in the first quarter of 2017, an increase of 44.4%.
• Record policies in force as of March 31, 2018, totaled approximately 383,200, compared to 345,000 in the first quarter of 2017, an increase of 11.1%.

2018 Full Year Guidance

The Company reaffirms its annual guidance of revenue for 2018 to be between $290 million and $300 million or grow approximately 15% to 20% year-over-year, adjusted EBITDA to be between $54 million and $57 million or grow approximately 20% to 25% year-over-year and adjusted EPS to be between $2.45 and $2.55 or grow approximately 48% to 55% year-over-year. These guidance numbers are based on the Company’s current method of accounting for revenue. As an emerging growth company, it will be adopting the revised revenue recognition standard, known as ASC 606, in the fourth quarter of 2018.

“Following a Q4 of 2017 that exceeded all expectations due to the shortened open enrollment period, the first quarter of 2018 has performed as expected, and we have record policies in force coupled with an outstanding compliance performance. As our market continues to evolve our first quarter provides an excellent foundation for the launch of our next generation of technology and the rest of 2018,” said Gavin Southwell, HIIQ's Chief Executive Officer and President.

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

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