Health In Tech Announces Fourth Quarter and Full Year 2024 Financial Results

PR Newswire

STUART, Fla., March 17, 2025

   -- Total audited revenue for 2024 was $19.5 million. 
 
   -- The first two months of 2025, our unaudited revenue is about $5.7million, 
      more than 50% growth year over year for the first two months of 2024, and 
      exceeded the revenue of the entire Q1 of 2024 
 
   -- Cash and cash equivalents were $7.8 million, and Total Current 
      Liabilities were $2.1 million as of December 31, 2024 

STUART, Fla., March 17, 2025 /PRNewswire/ -- Health In Tech (Nasdaq: HIT), an Insurtech platform company backed by third-party AI technology, today announced its financial results for the fourth quarter and full year ended December 31, 2024.

Financial Highlights for the Full Year 2024:

   -- Cash and cash equivalents were $7.8 million as of December 31, 2024, 
      compared to $2.4 million in the same period end of 2023 
 
   -- Account receivables were $1.6million as of December 31, 2024, compared to 
      $2.2 million in the same period end of 2023. The accounts receivable 
      turnover was 29 days in 2024. 
 
   -- Total liabilities were $2.6million as of December 31, 2024 compared to 
      $5.4 million in the same period end of 2023. The number of enrolled 
      employees (EEs) billed was 18,348, compared to 21,213 in the same period 
      of 2023 
 
   -- The number of business clients serviced was 890, compared to 1,002 in the 
      same period of 2023 
 
   -- Total revenues of $19.5 million, up 1.8% year-over-year 
 
   -- Gross margin was 79.2%, compared to 88.0% in the same period of 2023 
 
   -- Income from continuing operations, net of income taxes was $0.7 million, 
      compared to $2.5 million in the same period of 2023 
 
   -- Adjusted EBITDA was $2.3 million, compared to $4.8 million in the same 
      period of 2023 

Financial Highlights for the Fourth Quarter of 2024

   -- The number of enrolled employees (EEs) billed was 18,348, compared to 
      21,213 in the same period of 2023 
 
   -- The number of business clients serviced was 890, compared to 1,002 in the 
      same period of 2023 
 
   -- Total revenues of $4.9 million, compared to $5.2 million in the same 
      period of 2023 
 
   -- Gross margin was 77.4%, compared to 81.8% in the same period of 2023 
 
   -- Income from continuing operations, net of income taxes was ($0.1) million, 
      compared to $1.0 million in the same period of 2023 
 
   -- Adjusted EBITDA was $0.5 million, compared to $1.0 million in the same 
      period of 2023 

"2024 was a transformative year for Health In Tech as we successfully completed our IPO, expanded our product offerings, and made strategic investments in technology and infrastructure." said Tim Johnson, CEO of Health In Tech. "These initiatives have strengthened our foundation and positioned us for scalable growth. While we took a deliberate approach to moderating growth this year, we made significant progress in enhancing our platform, improving cybersecurity, and developing innovative solutions tailored to meet the evolving needs of our customers."

Mr. Johnson continued: "In 2025, we are accelerating execution and expanding our reach. We are set to fully launch our mid-sized business underwriting solution, extending coverage to employers with more than 150 employees, expanding beyond our traditional focus on small businesses (5--150 employees). Our new Spec & Agg stop-loss product further enhances efficiency by streamlining claims processing for TPAs and carriers. These advancements will drive revenue growth and significantly expand our total addressable market."

"We are entering 2025 with strong momentum and a clear path for growth. With the strategic groundwork laid in 2024, we anticipate continuing to invest in automation, and expand into new markets, we remain committed to delivering innovative, value-driven solutions that transform self-funded healthcare." As we scale, invest in automation, and enter new markets, we remain committed to delivering innovative, value-driven solutions that transform self-funded healthcare" Tim concluded.

Recent Developments and Business Highlights

   -- Initial Public Offering. In December 2024, the Company completed its 
      initial public offering (the "IPO") of 2,300,000 shares of Class A common 
      stock. Gross proceeds to Health In Tech from the offering were $9.2 
      million before deducting underwriting discounts and commissions. 
 
   -- Partnerships and Collaborations. On January 22, 2025, the Company 
      announced an innovative collaboration with MARPAI and Vitable DPC to 
      introduce enhanced self-funded health plan solutions at highly 
      competitive prices. This collaboration leverages the strengths of 
      Vitable's Direct Primary Care (DPC) model, alongside a comprehensive 
      health plan and stop-loss coverage, to offer cost-effective quotes 
      through Health In Tech's eDIYBS platform. The collaboration is poised to 
      set a new benchmark in the industry for affordability and operational 
      efficiency, empowering businesses to provide high-quality healthcare 
      solutions to their employees at a lower cost. 
 
   -- Expand Executive Team to Drive Growth and Innovation. Effective March 17, 
      2025, the company has appointed key executives to strengthen its 
      leadership and drive innovation. Chris Kurtenbach has been promoted to 
      Chief Operating Officer, replacing (Jonathan) Del Lockett, who now serves 
      as Chief Strategy Officer. Dustin Plantholt has been named Chief Growth 
      Officer, and Jenni Guerrica has been promoted to Chief Information 
      Security Officer. These leadership changes enhance operational efficiency, 
      support market expansion, and position Health In Tech for continued 
      growth in the healthcare industry. 

Conference Call Details

Health In Tech will host a conference call to discuss the financial results for the fourth quarter and full year of 2024 on March 17, 2024, at 5:00 p.m. $(ET)$. To participate in our live conference call and webcast, please dial 1-888-346-8982 or 1-412-902-4272 (for international participants).

A live audio webcast will be available via the Investor Relations page of Health In Tech's website at https://healthintech.com/. A replay of the webcast will be available for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days.

Non-GAAP Financial Information

This release presents Adjusted EBITDA, a non-GAAP financial metric, which is provided as a complement to the results provided in accordance with accounting principles generally accepted in the United States of America ("GAAP"). A reconciliation of historical non-GAAP financial information to the most directly comparable GAAP financial measure is provided in the accompanying tables found at the end of this release.

Use of Forward--Looking Statements

Certain statements in this press release are forward-looking statements for purposes of the safe harbor provisions under the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may include estimates or expectations about Health In Tech's possible or assumed operational results, financial condition, business strategies and plans, market opportunities, competitive position, industry environment, and potential growth opportunities. In some cases, forward-looking statements can be identified by terms such as "may," "will," "should," "design," "target," "aim," "hope," "expect," "could," "intend," "plan," "anticipate," "estimate," "believe," "continue," "predict," "project," "potential," "goal," or other words that convey the uncertainty of future events or outcomes. These statements relate to future events or to Health In Tech's future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause Health In Tech's actual results, levels of activity, performance, or achievements to be different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond Health In Tech's control and which could, and likely will, affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects Health In Tech's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to Health In Tech's operations, results of operations, growth strategy and liquidity.

About Health In Tech

Health In Tech (Nasdaq: "HIT") is an Insurtech platform company backed by third-party AI technology, which offers a marketplace that aims to improve processes in the healthcare industry through vertical integration, process simplification, and automation. By removing friction and complexities, we streamline the underwriting, sales and service process for insurance companies, licensed brokers, and TPAs. Learn more at healthintech.com.

 
                         Health In Tech, Inc. 
                 Consolidated Statements of Operations 
 
                         Three Months Ended      Fiscal Year Ended 
                            December 31,            December 31, 
                       ----------------------  ---------------------- 
                          2024        2023        2024        2023 
                       ----------  ----------  ----------  ---------- 
Revenues 
Revenues from 
 underwriting 
 modeling $(ICE)$        $1,697,080  $2,011,060  $6,649,271  $8,226,852 
Revenues from fees      3,207,484   3,205,223  12,841,635  10,924,650 
   SMR                  2,470,284   2,405,622   9,849,300   8,085,596 
   HI Card                737,200     799,601   2,992,335   2,839,054 

                       ----------  ----------  ----------  ---------- 
Total revenues          4,904,564   5,216,283  19,490,906  19,151,502 
Cost of revenues        1,107,173     951,967   4,051,439   2,303,911 
                       ----------  ----------  ----------  ---------- 
Gross profit            3,797,391   4,264,316  15,439,467  16,847,591 
                       ----------  ----------  ----------  ---------- 
Operating expenses 
Sales and marketing 
 expenses                 632,060     873,893   3,158,257   3,380,375 
General and 
 administrative 
 expenses               2,848,014   1,261,594   8,477,407   8,079,329 
Research and 
 development 
 expenses                 633,653     673,444   2,813,899   2,004,796 
                       ----------  ----------  ----------  ---------- 
Total operating 
 expenses               4,113,727   2,808,931  14,449,563  13,464,500 
                       ==========  ==========  ==========  ========== 
Other income 
(expense): 
Interest income            28,774      26,132     122,885      40,857 
Interest expenses               -     (1,104)   (495,000)     (2,052) 
Other income              114,055           -     271,211           - 
Other expense              62,759           -           -           - 
                       ----------  ----------  ----------  ---------- 
Total other income 
 (expense), net           205,588      25,028   (100,904)      38,805 
                       ----------  ----------  ----------  ---------- 
Income (loss) before 
 income tax expense    $(110,748)  $1,480,413    $889,000  $3,421,896 
Provision for income 
 taxes                   (33,404)   (478,113)   (218,523)   (945,236) 
                       ----------  ----------  ----------  ---------- 
Income (loss) from 
 continuing 
 operations, net of 
 income taxes           (144,152)   1,002,300     670,477   2,476,660 
Income from 
 discontinued 
 operations, net of 
 income taxes                   -           -           -   1,481,254 
                       ----------  ----------  ----------  ---------- 
Net income (loss)      $(144,152)  $1,002,300    $670,477  $3,957,914 
                       ==========  ==========  ==========  ========== 
Net income 
 attributable to 
 noncontrolling 
 interests                      -           -           -  $1,481,254 
                       ----------  ----------  ----------  ---------- 
Net income 
 (loss) attributable 
 to common 
 stockholders          $(144,152)  $1,002,300    $670,477  $2,476,660 
                       ==========  ==========  ==========  ========== 
 
 
 
                          Health In Tech, Inc. 
                      Consolidated Balance Sheets 
 
                                  December 31, 2024  December 31, 2023 
                                  -----------------  ----------------- 
Assets 
Current assets 
 Cash and cash equivalents               $7,849,248         $2,416,350 
 Accounts receivable, net                 1,647,103          2,235,666 
 Other receivables                          500,252          1,681,100 
 Deferred offering costs                          -            261,769 
 Prepaid expenses and other 
  current assets                            787,161            264,382 
                                  -----------------  ----------------- 
Total current assets                     10,783,764          6,859,267 
                                  -----------------  ----------------- 
Non-current assets 
 Software                                 3,962,461          3,561,385 
 Loans receivable, net                      815,995            815,999 
 Operating lease - right of use 
  assets                                    206,269            266,641 
Total non-current assets                  4,984,725          4,644,025 
                                  -----------------  ----------------- 
Total assets                            $15,768,489        $11,503,292 
                                  =================  ================= 
Liabilities and stockholders' 
equity 
Current liabilities 
 Notes payable                                   $-         $1,650,000 
 Accounts payable and accrued 
  expenses                                1,858,840          2,620,965 
 Income taxes payable                       205,253            451,946 
 Operating lease liabilities - 
  current                                    66,881             58,482 
                                  -----------------  ----------------- 
Total current liabilities                 2,130,974          4,781,393 
                                  -----------------  ----------------- 
Non-current liabilities 
 Deferred tax liabilities                   328,676            421,980 
 Operating lease liabilities - 
  non-current                               139,811            206,693 
                                  -----------------  ----------------- 
Total non-current liabilities               468,487            628,673 
                                  -----------------  ----------------- 
Total liabilities                         2,599,461          5,410,066 
                                  -----------------  ----------------- 
Stockholders' equity 
 Common stock, $0.001 par value; 
  Class A Common stock 
  150,000,000 shares authorized, 
  42,914,870 and 29,269,358 
  issued and outstanding as of 
  December 31, 2024 and December 
  31, 2023, respectively                     42,915             29,269 
 Common stock, $0.001 par value; 
  Class B Common stock 
  50,000,000 shares authorized, 
  11,700,000 and 22,500,000 
  issued and outstanding as of 
  December 31, 2024 and December 
  31, 2023, respectively                     11,700             22,500 
 Additional paid-in capital               9,173,017          2,770,538 
 Retained earnings                        3,941,396          3,270,919 
                                  -----------------  ----------------- 
Total stockholders' equity               13,169,028          6,093,226 
                                  -----------------  ----------------- 
Total liabilities and 
 stockholders' equity                   $15,768,489        $11,503,292 
                                  =================  ================= 
 
 
                           Health In Tech, Inc. 
                  Consolidated Statements of Cash Flows 
 
                                          Fiscal Year Ended December 31, 
                                        ---------------------------------- 
                                             2024              2023 
                                        ---------------  ----------------- 
CASH FLOWS FROM OPERATING ACTIVITIES: 
Net income                                     $670,477       $3,957,914 
Adjustments to reconcile net income 
to net cash provided by operating 
activities: 
 Write-off of accounts receivable                 1,878                - 
 Amortization expense                           541,141          339,300 
 Deferred tax expenses (benefits)              (93,304)          133,980 
 Amortization of debt discount                  495,000                - 
 Interest income                               (63,996)         (15,999) 
 Stock-based compensation expense               468,489                - 
 Changes in operating assets and 
 liabilities: 
   Accounts receivable                          586,685      (1,279,324) 
   Other receivables                          1,180,848      (1,678,823) 
   Other receivables-related party                    -           18,242 
   Prepaid expenses and other current 
    assets                                    (514,242)        (211,097) 
   Operating lease right of use assets 
    and liabilities, net                          1,889            4,259 
   Accounts payable and accrued 
    expenses                                  (851,963)        2,146,570 
   Income taxes payable                       (246,693)          332,047 
   Assets and liabilities of 
    discontinued operations                           -      (2,218,191) 
                                        ---------------  --------------- 
Net cash provided by operating 
 activities                                   2,176,209        1,528,878 
                                        ---------------  --------------- 
CASH FLOWS FROM INVESTING ACTIVITIES: 
Development of software                       (900,755)      (1,144,361) 
Funds provided for loans receivable                   -        (800,000) 
Interest received 
 from loans receivable                           64,000                - 
Net cash used in investing activities         (836,755)      (1,944,361) 
                                        ---------------  --------------- 
CASH FLOWS FROM FINANCING ACTIVITIES: 
Proceeds from issuance of common stock 
 in connection with initial public 
 offering, net of underwriting 
 discounts and commissions                    8,214,000                - 
Payments of deferred offering costs         (1,975,556)        (261,769) 
Payment of distributions                              -         (44,351) 
Proceeds from notes payable                           -        1,650,000 
Repayments of notes payable                 (2,145,000)                - 
                                        ---------------  --------------- 
Net cash provided by financing 
 activities                                   4,093,444        1,343,880 
                                        ---------------  --------------- 
Increase in cash and cash equivalents         5,432,898          928,397 
Cash and cash equivalents, beginning 
 of year                                      2,416,350        1,487,953 
                                        ---------------  --------------- 
Cash and cash equivalents, end of year        7,849,248        2,416,350 
                                        ===============  =============== 
Supplemental disclosures of cash flow 
information: 
Cash paid for interest                               $-           $2,052 
Cash paid for income taxes                     $558,521         $479,209 

Summary of noncash investing and 
financing activities: 
Accrued deferred offering costs 
included in accounts payable and 
accrued expenses                                $39,839               $- 
Accrued development of software 
included in accounts payable and 
accrued expenses                                $50,000               $- 
Conversion of Series A convertible 
 preferred stock to Class A common 
 stock                                               $-       $2,566,038 
Reclassification of deferred offering        $2,277,164               $- 
 costs to additional paid-in capital 
 upon initial public offering 
 

Components of Operating Results

Revenues

While we generate our revenue primarily from small employers and insurance carriers, we grow our business primarily from offering solutions that streamline sales processes, enhance service delivery, and reduce the sales cycle duration for TPAs, MGUs, and Brokers. We offer our services through our three subsidiaries. Program services provided by SMR and MGU activities provided by ICE (including eDIYBS) are interdependent, as they cannot function effectively without being combined. Services provided by HI Card is an optional add-on to our other services, and it cannot be offered on a standalone basis. Brokers that utilize the program services on behalf of the small employer provided by SMR and MGU activities provided by ICE, are not obligated to utilize our HI Card service. Currently ICE does not offer underwriting services as a standalone service. In the future, we may consider offering it as a standalone service.

Cost of revenues

Cost of revenues primarily consists of infrastructure costs to operate our platform such as hosting fees and fees paid to various third-party partners for access to their technology, services and amortization expenses of our capitalized internal-use software related to our platform. We mainly outsource captive management services and data services from the third-party companies. Our internal proprietary system seeks to consistently improve underwriting and services results through machine learning and data feeds. The captive management activities include introducing new carriers, conducting due diligence on carriers, conducting feasibility studies to determine the viability to be a stop-loss carrier on the platform, negotiating terms and contracts, coordinating audit requests, managing relationship with unrelated carriers and their regulators and auditor firms to ensure that our risk associated with our service offerings is minimized.

Sales and marketing expenses

Sales and marketing expenses primarily consist of personnel-related costs including salaries, benefits and commissions cost for our sales and marketing personnel. Sales and marketing expenses also include the costs for advertising, promotional and other marketing activities, as well as certain fees paid to various third-party for sales and customer acquisition.

General and administrative expenses

General and administrative expenses primarily consist of personnel-related costs and related expenses for our executives, finance, legal, human resources, technical support, and administrative personnel as well as the costs associated with professional fees for external legal, accounting and other consulting services, insurance premiums.

Research and development expenses

Research and development expenses primarily consist of personnel-related costs, including salaries and benefits for our research and development personnel. Additional expenses include costs related to the software development, quality assurance, and testing of new technology, and enhancement of our existing platform technology.

Adjusted EBITDA

Adjusted EBITDA represents our earnings from continuing operations before net interest expense, taxes, and depreciation and amortization expense, adjusted to eliminate stock-based compensation expense and public company readiness costs not deemed capitalizable. Adjusted EBITDA is not a measure calculated in accordance with United States Generally Accepted Accounting Principles, or GAAP. We exclude certain non-recurring or non-cash items when calculating Adjusted EBITDA, and we believe this approach provides a more meaningful measure by offering a clearer view of our underlying operational performance.

 
Financial Results Summary 
($ in millions) 
 
 
                 Three Months Ended 
                    December 31,          Year Ended December 31, 
             -------------------------- 
               2024     2023   % Change     2024     2023  % Change 
              ------   ------  --------   ------   ------  -------- 
Total 
 revenues    $   4.9  $   5.2    -6.0 %  $  19.5  $  19.2     1.8 % 
GAAP gross 
 margin       77.4 %   81.8 %    -4.4 %  $79.2 %  $88.0 %    -8.8 % 
Income 
 (loss) 
 from 
 continuing 
 operations 
 , net of 
 income 
 taxes       $ (0.1)  $   1.0  -114.4 %  $   0.7  $   2.5   -72.9 % 
Adjusted 
 EBITDA      $   0.5  $   1.0   -51.2 %  $   2.3  $   4.8   -52.7 % 
 

Investor Contact

Investor Relations:

ir@healthintech.com

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