12/13/22

Hi Team,

eHealth Technologies continues to have a very good year thanks to the dedication of our team members. The last two months have been difficult, and we appreciate the commitment from our Operations team, ensuring that patients get the help that they need as quickly as possible. We know that you are putting in a lot of extra effort and we really appreciate it!

At the beginning of the year, we defined clear objectives and set aggressive key results for 2022 and at the end of November, we are forecasting to exceed four, come very close on four, and miss on two key results. YTD, eHealth Technologies:

Improved productivity and reduced costs to continue to fuel innovation and future growth.

We improved our EBITDA margin to 6% YTD with a forecast of 7% for 2022 against a plan of 10%. We improved gross margin to 42% YTD with a forecast of 49% by the end of 2022 against a plan of 55%. We have experienced misses to both gross and EBITDA margins primarily caused by a product development delay in Outreach automation, which has now been delivered but has yet to deliver on the expected savings. The team has identified three reasons for the continued delay in productivity improvements:

  1. Outreach prioritization rules requirements did not account for all needed use cases-~33% of problem
  2. Outreach data synchronization had design flaws/defects-~33% of problem
  3. Outreach training was insufficient and rollout plans were overly aggressive–~33% of problem

The plan forward is to execute the following remediation steps:

  • Reconfigure the prioritization rules (scheduled to be complete this week)
  • Address the data synchronization defects (scheduled to be complete this week)
  • Improve training/mentoring plan (being conducted through December)

Operations team members are working overtime to decrease excess backlog and turnaround times. We have created a measurable hypothesis to understand progress. Management will be monitoring measurable hypothesis on a daily/weekly basis to make sure that we are on track with the hopes to decrease excess back log and be back on track by the end of January/mid-February. We will learn from the above challenges so that future product development projects deliver on expectations by implementing all preventive actions identified.

Delivered on customer expectations.

Our customer NPS score came in at +47 against a plan of +50 for 2022. Our customer NPS decreased due to high turnaround times as a result of delays in ramping up the Pune team, third-party vendor outages and our inability to lower turnaround time in a timely manner. We’ve advanced the delivery of life-altering care by supporting 323,000 patients YTD with the goal to support 350,000+ patients in 2022.

Grew through expansion within existing, addition of new customers and addition of new products/markets.

We have closed $13.9M in bookings YTD with a forecast of $15.3M for 2022 against a plan of $15.3M. As a team we grew revenue to $31.5M YTD with a forecast of $34.7M for 2022 against a plan of $35.7M. We increased customer logos to 114 with a forecast of 115 for 2022 against a plan of 112. We’re adding new product/market capabilities and delivered $~600K from new products/markets YTD with a forecast of ~$800K for 2022 against a plan of $500K.

Built a diverse, equitable, inclusive, and high-performing culture.

We improved our employee retention rate to 69% YTD with a forecast of 66% for 2022 against a plan of 80%. The miss is due to setting an overly aggressive goal and to experiencing extremely high turnover with our Hyderabad office. We’ve established an employee NPS (eNPS) score of +8 and have put plans in place to improve our eNPS throughout 2022. We have just surveyed the team and will again listen and act to make sure that eHealth Technologies continues to be a great place to work.

Overall, with a couple of weeks left in 2022, we can be proud of what we’ve achieved this year. I really appreciate everyone’s hard work and commitment to advancing the delivery of life-altering care.

 

Regards,

Dan