How did EHTH's Q4 earnings surprise impact its annual performance?

eHealth, Inc. (EHTH) experienced a significant positive impact on its annual performance following the release of its Q4 2024 earnings report. Here's a detailed analysis:

1. **Revenue Growth**: EHTH reported a 27% year-over-year increase in revenue for Q4 2024, reaching $315.2 million. This growth was primarily driven by strong performance in its Medicare segment, which saw a 31% rise in revenue to $305.8 million.
2. **Net Income and Profitability**: The company achieved a record GAAP net income of $97.5 million, marking an 87% increase compared to the same period last year. This significant improvement in net income reflects enhanced operational efficiency and strategic initiatives.
3. **Adjusted EBITDA**: EHTH also reported a 74% increase in Adjusted EBITDA, reaching $121.3 million. This indicates robust profitability and cash flow generation capacity.
4. **Stock Performance and Analyst Expectations**: Despite the strong earnings, the stock price dropped by over 8% in pre-market trading, closing at $8.42. This decline may have been due to market reactions or broader market conditions, but it did not overshadow the positive impact on the company's financial health.
5. **Annual Performance and Guidance**: EHTH's annual revenue for the trailing 12 months stood at $532.4 million, which is a notable figure considering the company's growth trajectory. The company projected its annual revenue to be around $530 million, closely aligning with analysts' predictions. This consistency in annual revenue reflects the company's stability and growth potential.

In conclusion, EHTH's Q4 earnings surprise had a profoundly positive effect on its annual performance, underscored by robust revenue growth, enhanced profitability, and strong cash flow metrics. These factors collectively contribute to the company's robust financial health and future growth prospects.