Health In Tech (NASDAQ:HIT) held its first-quarter earnings conference call on Wednesday. Below is the complete transcript from the call.
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Summary
Health In Tech reported Q1 2026 revenue of $8.8 million, a 9% year-over-year growth, with expectations of full-year revenue between $45 and $50 million.
The company is focusing on expanding its broker network, enhancing its technology architecture, and developing new product offerings, including a three-year rate stabilization program.
A recent private investment raised $7 million to support these initiatives, aiming to broaden the shareholder base and fuel growth without an immediate need for working capital.
Health In Tech's platform placed $82 million in self-funded stop-loss plans in Q1 2026, showcasing strong market engagement, although adjusted EBITDA was negative due to increased investment in growth strategies.
Management reiterated their commitment to scaling distribution and product capabilities, with a strong focus on sales, marketing, and technology development to capture a larger market share.
Full Transcript
OPERATOR
Good day ladies and gentlemen. Thank you for standing by and welcome to the Health in Tech first quarter 2026 earnings conference call. Currently all participants are in listen only mode. Later we will conduct a question and answer session and instructions will follow at that time. As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time. Now I will turn the call over
Laurie Babcock (Chief of Staff)
Thank you Operator and hello everyone. Welcome to Health In Tech's first quarter 2026 earnings conference call. Joining us today are Mr. Tim Johnson, Chief Executive Officer, Mr. Zane Hazan, Chief Growth Officer and Ms. Julia Chin, Chief Financial Officer. Full details of our results can be found in our earnings press release and in Our related Form 10-Q to be filed with the Securities and Exchange Commission (SEC). These documents will be available on our Investor relations [email protected] As a reminder, today's call is being recorded and a replay will be available on our IR website as well. Before we continue, please note that today's discussion includes forward looking statements made pursuant to the safe harbor provisions of the U.S. private Securities Litigation Reform act of 1995. These statements are based on information available as of today and and involve risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied, including those discussed in our Quarterly report on Form 10-Q for the period ended March 31, 2026 to be filed with the Securities and Exchange Commission (SEC). Please review the forward looking and Cautionary statement section at the end of our earnings release for various factors that could cause actual results to differ materially from forward looking statements made during our call today. Except as expressly required by the Federal securities laws, we undertake no obligation to update and expressly disclaim the obligation to update these forward looking statements to reflect events or circumstances after the date of this call or to reflect new information or or the occurrence of unanticipated events. We may also refer to certain financial measures not in accordance with generally accepted accounting principles such as adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for comparison purposes only. Our Generally Accepted Accounting Principles (GAAP) results and reconciliations of Generally Accepted Accounting Principles (GAAP) to non Generally Accepted Accounting Principles (GAAP) measures can be found in our earnings press release. With that, I will now turn the call over to our CEO, Mr. Tim Johnson.
Tim Johnson (Chief Executive Officer)
Thank you Laurie and good afternoon everybody. We appreciate you joining us today. Before discussing the quarter, I want to take a step back and frame how we are thinking about 2026. As we discussed during last quarter's call, we are operating within a massive opaque self-funded stop loss insurance market Excuse me, According to industry estimates, as of 2025 roughly 80% of large businesses had adopted self-funded health plans While only about 27% of medium and small businesses had. Self funded health care plans allow businesses to manage their costs better with a lot of flexibility. However, the complexity has made implementation nearly unrealistic for many businesses. Our AI powered solutions remove barriers and make it simple and easy. The self-funded healthcare market represents nearly 1 trillion dollar stop loss insurance premium a year and the total number of insurance brokers exceeds 1 million according to industry estimates. In comparison, today just about 900 distribution partners consisting primarily of insurance brokers drive the sale of self-funded plans and stop loss policies through health and tech, our modern information technology. In other words, our penetration of the broker pool remains well below 1/10 of 1%, which highlights the significant Runway potential ahead, especially given the substantial benefits that our platform aims to deliver Convenience, customization, cost effectiveness, clarity and condensed time. To quote 2025 was a year in which we demonstrated that our model could scale meaningfully and achieve strong profitability and our plan is for 2026 to be a year of deliberate investment in sales, distribution and technology development to build our roster of distribution partners, expand our market presence, enhance our technology for new features, deliver new solutions and accelerate long term revenue growth. In March 2026 we completed a private investment in public equity pipe which was which brought us approximately 7 million in gross proceeds that will in part support our growth initiatives. To be clear, this capital raise was not driven by an immediate need for working capital in our view as our business remains strong from a fundamental balance sheet perspective. Rather, we identified an opportunity to broaden our shareholder base with new institutional investors through a modestly sized raise that limited dilution and provided incremental fuel for growth. We intend to prudently deploy this new capital across several targeted areas including expanding our sales distribution network, adding new carrier partners to our platform, enhancing our technology architecture and AI development, and advancing our service offerings and product development. First, expanding Sales Distribution Our business scales through distribution with brokers serving as primary channel through which employers access self-funded health plans on our innovative AI-powered marketplace (EWS), our innovative AI powered marketplace. In 2026, we are increasing our investment in sales and marketing to expand our broker network, deepen engagement and build a more proactive scalable go to market strategy. Historically, much of our growth has been driven organically by word of mouth and through our relatively small in house sales team. Going forward, we plan to build our sales team and complement their efforts with more structured outreach marketing initiatives and direct engagement within the broker community. Our Chief Growth Officer Zain Hassan has more than 15 years of experience in the employee benefits and insurance industry. He is a five time founder and a former Chief Executive Officer who has successfully built and exited multiple companies. He brings a proven background in scaling revenue, leading both organic and inorganic growth initiatives, executing strategic acquisitions and driving disciplined, well disciplined value creation. We will expand on growth efforts in a bit later in the call. We believe these investments are critical to capturing a larger share of a huge market in which our current penetration remains very low despite the compelling value added benefits of our platform. Second New Carrier Partners on the other side of the platform, we will be focused on increasing the number of diversity of participating insurance carriers. I want to spend a moment explaining why adding carriers is important today. Our platform generates bindable execution ready quotes for employer groups through rapid underwriting that is based on career specific carrier specific risk criteria. While our technology significantly improves the speed, consistency and efficiency in the underwriting process, overall pricing to the employer reflects a combination of factors across the value chain such as carriers, risk assessment, changes of underlying employees, health conditions, claims expense and administrative costs. Cost variability for the employer at renewal generally boils down to the carrier's underwriting criteria and risk assessment which can fluctuate based on changes in claims experience or shifts in carriers risk appetite. These fluctuations can lead to less competitive pricing or limited options for the employer at renewal. Even if the broker and the employer are otherwise delighted with our platform. By expanding our carrier network we can provide brokers greater underwriting perspectives for the same employer group, increasing the likelihood of finding a competitive and suitable option within our platform at renewal. In practical terms, more carriers means more choice for brokers, better alignment with employer needs and ultimately a higher probability of successful placement which we believe will drive greater platform utilization, enhanced employer stickiness and stronger revenue growth for health and tech. 3rd Health and Tech's Next Generation Technology Architecture and AI Development Sri Rajmangalan, our Chief Executive, excuse me, Chief Technology Officer, has spent the majority of his career at SAP and IBM, two of the world's leading enterprise software companies where he held senior leadership roles in enterprise architecture and large scale platform engineering. His experience spans global mission critical systems serving complex enterprise clients across multiple industries. As we expand our AI enabled underwriting and benefits administration platforms, SRI will strengthen our core technology foundation, enhancing scalability, data intelligence, cybersecurity and operational resilience. Under Sri's leadership we announced in March 2026 we engaged cyclam and Amazon Web based Service Advanced Tier Service Partner to expand both the front and back end Functionality of our Technology Platform Our partnership with Cyclam and Amazon Web Services is off to a strong start. Together we are implementing a more integrated technology environment while streamlining data infrastructure and reporting processes. We expect to achieve enhanced platform capabilities, administrative functions that can aid our expansion into larger employer markets, improved integration of front and back end workflows, consolidating quoting, underwriting, administration and analytics into a unified platform and lastly an advanced data and operational reporting capabilities to deliver deeper insights and improve decision making for brokers, third party administrators, TPAs, managing general underwriters, carriers and employer end to end clients. 4th Advancing Services and Product Development to begin, I'm pleased to highlight that starting in January we expanded our service scope with the launch of our enhanced self-funded plan administration offering. This new model delivers pre configured end to end self-funded health benefit solutions that bundle plan design, administration and stop loss coverage into a single streamlined framework. With years of experience we have developed a comprehensive suite of more than 100 designed customized plans and these create our curated, curated, bundled and directly supported by a network of specialized administrative vendors enabling us to deliver consistent, high quality solutions while maintaining flexibility to meet specific employer needs. This also reflects an evolution in how we engage with vendors. Historically, vendors primarily accessed our platform as independent participants while our role was focused on providing infrastructure and selecting appropriate vendors. We are now moving toward a more integrated and actively managed model where we curate, bundle and manage the vendors that compromise a self-funded health plan as part of a broader end to end Solution. As of March 2026, these pre configured options address the majority of employer use cases and can be rapidly deployed, significantly reducing plan design and administrative complexity for our distribution partners. This translated translates into a more effective sales process. By taking a more hands on approach to vendor management, we gain greater visibility into vendor performance allowing us to continuously evaluate, refine and improve the quality of our network over time. We believe this will help us build a best in class vendor ecosystem, strengthen platform differentiation and support higher conversion and retention across our marketplace. In addition to expanding our service model, we recently rolled out a significant, significant update to our E Dibs platform designed to make the quoting, underwriting and communication process faster, more transparent and more efficient for brokers. This update includes a refreshed platform interface, improved workflow design, enhanced census insights, expanded large group quoting functionality, improved underwriting status visibility, automated experience, data parsing, AI driven risk insights and broker to underwriter messaging directly within the platform. These enhancements are important because they directly address many of the friction points that have historically slowed down the self-funded quoting and underwriting process for example, our enhanced Census Insights capability helps brokers identify data quality and completeness issues before submission, which can reduce back and forth and help minimize underwriting delays. While our platform already supports large group quoting, the latest enhancements improve the workflow around larger and more complex cases, including better handling of census data, experience data and underwriting communication. We have also introduced Broker to Underwrite messaging. This keeps communications files and updates tied directly to each opportunity rather than scattered across disconnected email threads. Early feedback from the brokers has been very positive, particularly around the new messaging feature and overall workflow improvements. Brokers have responded well to having communications files and updates tied directly to each opportunity rather than managed through disconnected email chains. We are also hearing positive feedback on the RFP or request for proposal and document upload automation functions, with brokers noting that the process feels smoother, requires less feedback, less feedback and forth, and reduces manual steps. While the Enhanced Census Insight tool continues to be well received, the strongest reaction so far has been around the broader efficiency improvements across the platform. Brokers are noticing the impact immediately in their day to day workflow, which we view as an encouraging sign for adoption and continued platform engagement. Overall, these updates reflect our broader strategy of continuously enhancing the EDIBS platform to reduce manual work, improve visibility and support faster, more accurate quoting and underwriting outcomes. We believe these capabilities will further strengthen broker adoption, improve partner productivity and support scalability within our marketplace. Among new offerings currently under development, we're making significant progress with our three year rate stabilization program. We expect to complete market testing of this program late in the second quarter into the third quarter of 2026. This program is designed to address pricing volatility and provide greater cost predictability for employer groups which we believe is a key differentiator in the market. Governmental agencies and municipalities among many others, stand out as a logical candidate for our three year rate stabilization program. In addition, in 2Q26 we anticipate commencing initial beta testing of a new data-driven solution that integrates psychological data and claims data to generate actionable value insights for partners in our ecosystem and business. Employer End to End Clients I am incredibly excited about the growth journey in front of us. We are addressing a vast market opportunity in self-funded health insurance with a comprehensive strategy to expand our ecosystem and democratize self-funded health insurance for all employers regardless of size. Based on our current operating momentum and growing pipeline, we are reiterating our guidance for full year 2026 revenue of between 45 and 50 million representing approximately 35% to 50% year over year growth. Before Julia reviews our first quarter financial results. I'll turn it over to Zane who will provide some additional data additional detail on how we are scaling our sales and distribution strategy.
Zane Hazan (Chief Growth Officer)
Thank you Tim From a sales perspective, one of our largest opportunities remains in a significant, largely untapped broker and Third Party Administrator (TPA) distribution market where many potential partners have yet to actively engage with our platform. We make it extremely easy for brokers and Third Party Administrator (TPA)s to join and onboard onto our platform which they use at no cost. Unlike traditional models that rely on building large in house sales teams, we leverage a capital-light partner driven distribution strategy. In 2025 and with a relatively small in house sales team of six professionals, we delivered $33 million in revenue. With the additional capital raised to our PIPE financing, we plan to further invest in and selectively expand our in house sales team and broaden distribution partners to support continued growth. Importantly, our in house sales team is primarily focused on onboarding and activating distribution partners rather than directly selling into employer accounts which allows us to scale efficiently without significant fixed cost expansion. This efficiency is driven by our approach which is empowering distribution partners with technology that significantly reduces their cost of doing business. By replacing a manual email driven process with a fully digitized and streamlined workflow, we save brokers a substantial amount of time and improve their ability to serve clients. In addition, adding more carriers and building an AI-driven solution to automate the length of manual processes continue to gain attraction as we continue to expand our technological capabilities. We intend to become the go to marketplace for brokers to come to and offer a one stop shop for the entire renewal process of a self funded health plan. Scaling our expanded capabilities in the large employer accounts would increase our average contract value of a client while bringing in additional carriers should improve close rates and renewal rates. At the same time, we are investing in analytics capabilities that provide brokers with greater visibility into their quoting PIPEline including win loss trends, response times and actionable opportunities. This represents a meaningful shift toward a more data driven sales management. While the industry has historically been relationship driven, we see a significant opportunity to scale beyond that through more structured engagement. Our go to market strategy focuses on increasing direct broker engagement through conferences, through targeted outreach and brand awareness initiatives, creating a flywheel that drives more platform usage and increases deals per sales rep. We're working on building relationships whereby our tech stack becomes the infrastructure layer for how employee benefit brokers and Third Party Administrator (TPA)s serve their self funded clients. A new strategy for distribution that we are very optimistic about. We'll be active at key industry conferences where our target buyers are concentrated. Using those as catalysts for executive level engagement and PIPEline generation. Overall, While we are still early in this process, we are encouraged by the consistency we are seeing and we believe we are building a durable, scalable distribution engine that can support long term growth without requiring linear headcount expansion. I'll now turn it over to Julia.
Julia Chin (Chief Financial Officer)
Thank you Zing and good afternoon everybody. I appreciate you joining us today. Before we move on, I'd like to highlight an important update on how we present our business metrics which we believe better reflected underlying growth and visibility Our Platform we are introducing a new KPIs Key Performance Indicator. I will first touch on contracted revenue which represents contractually committed revenue under active policies as on measurement day. This is expected to be recognized in future period. Our policy are typically written for terms of 12 months and under Generally Accepted Accounting Principles (GAAP) accounting the reported revenue is recognized over the lifetime of the policy. For example, if a new employee is on board and have a policy effect on February 1, 2026. Under 12 months policy, we recognize the revenue from the contract months from February 26 through January 2027. In this scenario where only 2 months of revenue are recognized in the first quarter 26 reporting period, the remaining 10 months of the contractual committed revenue will be recognized in the non remaining months of 26 and one month in 27. By reporting contracted revenue, we are providing investors and shareholder with greater transparency and visibility into the future revenue that is already locked in that is contractually secured but not yet recognized. We believe these changes aligns our disclosure more closely with how we manage the business internally and provides investors with a useful metric to evaluate the future revenue visibility. As of March 31, our contract revenue for the remaining three quarter of this year total will be around 22.9 million. In addition to contract revenue, we are now disclosing platform placed plan value or pppv. PPPV represents the aggregate contractual value of self funded health plan with the stop loss insurance that is self funded stop loss plans placed through the company's platform that covering the duration of the plan's contractual term. The contract return is typical 12 months from the plan's effective date. In the first quarter of 2026, our platform placed 82 million self funded stop loss plans. Platform placed value reflected the full value of the active policies facilitated through our platform including the premium claims fund and administrative fees. We believe that PPPV provides a consistent comparable measurement of total ecosystem value flow through our platform. As our business continue to scale, particularly with expansion into larger employee groups and a more complex plan structure, we expect platform place the value to increase with a faster rate reflecting great of engagement in the higher value relationship. Historically, we have disclosed enrolled employees as the operating metric. Enrolled employee represents individual or family cover under accompanied self funded group plan. After careful reconsideration, we have decided to discontinue this metric as we believe platform place the value and the contractual revenue better represent our business. As the carriers in our platform offer four type of coverages employees only employees plus spouse, employee plus children and the family. So then we have different plans Bronze, silver, Gold and Platinum. When previously calculated our new discounting our now discontinued enrolled employee metric, a single individual employee versus a family, including an employee as well as their spouse could each be counted as one enrolled employee, although the difference on the cost and the premium between these two can be three times or four times difference. Furthermore, the employee can choose bronze where offer a lower monthly premium and a higher deductible cost versus the platinum offer higher premium and the lowest deductible. These two enrolled employees will have dramatically different premium. Moreover, an employee's enrolled employee count can change during the period due to the factors such as resignation, layoff, new hire, family situation, change, birth and death even we continue when we continue to expand our business into a large size of the employees and grow our footprint aggressively, we believe the enrolled employee metric could not fully present complexity and the dynamic of underlying business move on. As Tim mentioned, we intend for this to be a year of target investment as we scale our distribution network, expand our product capability and position the company for the long term growth. As a result, certain financial metrics in the near term reflect this intentional investment pace. Let me talk about the revenue for the first quarter 26 the total revenue was 8.8 million, representing approximately 9% growth year over year. As of March, we estimated 31.7 million in revenue will be reported in the full year 26 fiscal year with 8.8 million reporting first quarter and the 22.9 million will be recognized in the report in the remaining 26. This estimate figure is represented before monthly adjustments, so actually recognized revenue for the remaining 2026 may differ slightly. While growth in the quarter was more moderate compared to the prior periods, this reflected the current stage of the scaling order business rather than any change in underlying demand or platform scalability. At this stage, revenue growth is more close tied to the expansion of distribution network, the ramping up of the broker activity and the conversion of the pipeline opportunity in which we are actively invested in during 26. Turning to profitability, adjusted EBITDA for the first quarter was negative 1.3 million compared to positive 1.2 million in the prior year period. The net loss was 1.6 million compared to the net income of the half million in the prior period. This reflect our planned increase in the investment across key growth initiatives particularly in sales and marketing and product development. Turn to the operating expenses. Total operating expenses for the quarter was 6.7 million, approximately 76% of the revenue compared to 4.9 million or 41% of the revenue in the prior year. The breakdown here give you further detail. Sales and Marketing expenses were 2.3 million representing approximately 26% of the revenue. The investment was doubled compared to 1.1 million or 14% of the revenue of the prior year. 25 these increases reflect our deliberate investment in expanding our sales distribution footprint as Zing explained, including the broker marketing and building out a more scalable go to market infrastructure so we can really tap on the massive broker ecosystem. General and Administrative expenses were 3.5 million representing approximately 39% of the revenue compared to 3.2 million or 41% revenue in the prior year. This increase primarily reflects we continue to build a stronger team and we did manage lower percentage of the revenue to be more scalable when we grow Research and the development expenses were 0.9 million representing approximately 10% of the revenue compared to 0.5 million or 7% of revenue in the prior year. This increase reflect continued investment in our technology capability and the new product initiative including data driven solution as well as ongoing enhancement to our underwriting and the workflow platform. In addition to these expenses in R and D investment we capitalized approximately 0.6 million of the software development during the first quarter. Thus, approximately 1.5 million was spent related to tech out of which 0.6 million was reflected to developing new feature and new solution compared to 1.4 million and 0.9 million respectively in prior year. Overall, the increasing operating expenses reflect a purposeful shift in capital allocation towards growth initiative. We are investing ahead of the revenue to expand distribution, enhance our product capabilities and position the company to capture a large share of the significant market opportunity. Importantly, we expect this elevated level on the investment to continue throughout 26 as we execute on our strategy to scale the business and build a more robust growth engine. Turning to our cash balance, we ended the quarter with 10.3 million in cash and the cash equivalent reflecting the proceed from our recent pipeline financing. We continue to maintain a disciplined approach to capital allocation with a focus on investing in the area that we believe will deliver long term growth and shareholder value. In summary, we continue to scale distribution, increase platform adoption and expand our product offering. We expect to drive high growth and improve operating leverage over time. We remain confident in the long term trajectory of the business and our ability to scale to execute on our growth strategy. With that now, I turn it back to the operator for Q and A.
OPERATOR
Thank you. We will now begin the question and answer session. To ask a question, you may press Star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you'd like to withdraw your question, Please press star then 2. The first question comes from George Sutton with Craig Allen.
George Sutton
Please go ahead. Thank you. And Zane, I'm excited to have you on the call. I wondered if you could walk through some of these key expansion areas. You know, expanding sales, broadening the marketing activities, developing the new marketplace and enhancing the tech architecture. Can you just give us a picture of the progress that you're seeing? You had mentioned broker feedback that you've received thus far. I just wondered if you can go into more detail on those things.
Zane Hazan (Chief Growth Officer)
Yeah, sure. And I appreciate the kind remarks. Essentially it's just a matter of like Tim mentioned where we put penetrated a very very small portion of the overall broker market. And so we've hired our intentions are to hire two to three sales reps that will focus on outbound and then to just drive overall marketing message that allows brokers to have a better understanding of what we do. And if we increase the brokers that have visibility into our platform, we've gotten a lot of positive feedback and are very optimistic that that'll lead to the growth.
George Sutton
So you mentioned you've rolled out this hundred pre configured plan set of options and I know that greatly increases the simplicity versus the complexity of the traditional platforms. Can you just walk through with us kind of how that's working in the market thus far?
Zane Hazan (Chief Growth Officer)
Sure. So I mean just taking a step back for brokers as they're looking at fully insured health plans or you know, the health plans that we provide through self funded, a lot of the brokers have a hard time with self funded health plans through our platform though it makes it extremely easy. And the pre configured health plan is, it's a proven playbook for the health insurance world where you have package plans that make it easier for them brokers to be able to evaluate those rates against whatever their employer's renewal is.
George Sutton
So Tim, you know our discussions with industry folks, there's a lot of potential excitement around your Three year rate stabilization plan. I know that's coming later in the year. I wondered if you could just address kind of the progress you've made there. Are you indeed seeing the kind of potential demand that we're hearing about? And Julie, I wondered if you could just give us any sense if anything's built in for the back half of the year from that, the three year plan.
Tim Johnson (Chief Executive Officer)
Yeah, thanks George. Thanks for the question. As far as the demand, we're starting to see a lot of potential coming through. We have modified the program to where it's agnostic to really the carriers. We've changed some things in the plan to make it more open for more open so that we can give a financial presentation or proposal to just about anybody who is self funded now. So it's even getting spread more broad. We are really just now getting out there. I mean, you know, understanding self funded health plans. They look, you know, three months the larger groups do they look three to six months out. So we're seeing a lot of people taking a look at it. We're starting to you know, give our proposals on those groups now. I hope that we have one. We think we have one. But until the ink is wet on the paper I will tell you that we are anticipating at least one in the second quarter.
Julia Chin (Chief Financial Officer)
Yeah. So judge from the financial perspective on our forecast we very conservative. We were thinking about only start from the fourth quarter. We will be able to generate some sort of the sales because a large group usually they purchase these type of plan in the end of the year. But we continue to make progress and the couple of quotes looks like we'll be able to get that done in second quarter. But as Tim said before we make the ink we do not know and very sure by the time we will make the press release and announce to the market. So as we continue just reiterating still is a test still getting a lot of traction. That's why we continue to refine the program based on the feedback.
George Sutton
I understand Tim Johnson. I assume these are done electronically so there really isn't any ink involved. But maybe I'm going to eat. That's it for me. Thanks guys. Yeah, good point. Yes.
OPERATOR
The next question comes from Alan Klee with Maxim Group.
Alan Klee
Please go ahead. Yes, hi. Could you expand a little on your new metric of platform place land value of 82 million. How does that. And that's over. You said something about the next 12 months. How does that correlate to revenue is all that that you guys capture or how do we think about that?
Julia Chin (Chief Financial Officer)
Alan? Yes, It's a great question. So when our platform facilitates place the self funded plan, you think about self funded when you plan the other stop loss all combined. So we bundle that together and then our revenue is just the sum of the portion of that value. When we're looking at the plan placement, every contract is 12 months and all revenue, contractual revenue will be recognized over the 12 month period of time. Even we did 82 million, you can see our revenue. We report 8.8 million for the first quarter, the remaining 22.9 and total 31.6. So it's really the revenue mechanism because of gap accounting that spread out and however, when we wrote and facilitated those plans through the platform is for 12 months. So these give everybody a much better understanding of the flows and the plans and the revenue.
Alan Klee
So does that mean if you have a plan on the books today, but it was actually written 6 months ago in this number you're including the 12 month value, not the 6 months left? Is that what you mean?
Julia Chin (Chief Financial Officer)
Yeah. For instance the January just and I made the example February. For instance, the February prime we wrote our revenue will be recognized from the February to next year January over the months in the first quarter, you will only have two months of revenue. However, we also reported the remaining revenue based on the contract will be recognized for the year which is 22.9 million. So people kind of will have a much better idea. Even Today we report first quarter as 8.8, but we know 22.9 will be reported in the remaining of the year. So you're adding on is 32 million. So that gave much, much better visibility
Alan Klee
in terms of revenue. Okay, thank you. In terms of the three year rate plan, what happens if your underwriting performance is poor and it maxes out and you have to use the excess of loss insurance policy is it's maintained at what impact? What then happens for the remaining two years? And it also seems to me like if you're testing it at the end of 2Q and early 3Q and it's going to take people a while to understand it, you may have some risk of missing this year's renewal season or how do you think about that?
Tim Johnson (Chief Executive Officer)
The renewal season typically isn't, you know, in large group most of the renewals happen whether it's July or January. There's obviously exceptions to that. But January is the biggest date of the year by far. So we are testing it now so that we're ready to start the quoting. As I said, the demand's picking up. The brokers are looking right now at these kind of options, you can't finalize anything, but they'll give you a submission and they want you to quote it, to start looking at it so that by the time the end of the year comes around, they've tested it, they've had all their questions and finally when all the data comes in and we can quote it to get a final, they're ready to have the entire conversation with their clients. So does that help answer your question?
Alan Klee
Yeah, it just, it seemed like at the end of last year you had some good products, but there wasn't. It took longer for the brokers to figure out the new plan. So I was just afraid that might happen again. But let me one last question. It's on expenses for the quarter. Can you kind of give us an idea of how much the costs were associated with your Davos conference in 1Q and also how much of costs in 1Q are more like first like just things associated with the beginning of the year, maybe the audit and different things like that that maybe are not recurring going forward. Thank you.
Julia Chin (Chief Financial Officer)
Davos approximately cost us about 200,000 and approximately they are about 100,000 cost we probably will not carry forward going forward if we look at the just operating expenses perspective for the quarter.
Alan Klee
Got it. Okay. Thank you so much.
OPERATOR
Thank you.
M. Marin
The next question comes from M. Marin rickjacks. Please go ahead. Thank you. So I'm curious, I was wondering if we could get a little bit more color on the three year rate stabilization feature because obviously that seems like it would be very attractive to employers, brokers, etc. That first of all, in terms of what you're seeing right now, in terms of the level of interest, is it fair to think that there may be interest right now, but that would be a more extended sales cycle than what you've seen with prior plans that you've been selling, you know, traditionally.
Zane Hazan (Chief Growth Officer)
Zane, you want me to handle that one? I can or you can? So I have no problem. Okay. Yeah, so I appreciate the question. I mean, yes, it's fair to say, I mean these are targeted towards larger employers. So there, and there's typically a lot longer sales cycle of getting the employers and brokers comfortable and educated with the process. And yes, we are seeing a lot of, really a lot of interest in the program. But it is also what was mentioned earlier where we iterated and got to the point to where we're now carrier agnostic. And being able to offer that to both new business and renewal opportunities makes it to where we feel like there's a tremendous opportunity. It's a hard market and a stop loss overall industry. And this is a very unique time to be able to have a program like a three year rate stabilization that we can offer.
M. Marin
And just in terms of the housekeeping, how would that work in terms of what kind of an upfront would we expect to see you place on your books? And then I'm guessing the mechanics of how you would recognize revenue would be similar to what Julia was describing before.
Julia Chin (Chief Financial Officer)
Yeah, I can address the question about the revenue. So we recognize the revenue monthly from the effective day. So even at the three years, and if we, when we have a three year program, when we report contractual revenue, we're pointing out that beyond the three year program means people will know the revenue will come in next 36 months. Months. And when we do earnings, which are called GAAP accounting revenue we're based on every month from the effective day. So nothing changes. Just like the one year program, we recognize every month we service the client, every month revenue get reported. However, we give them more visibility about what is the remaining longevity of the program, how much revenue we would get earn recognizing future.
M. Marin
Yes, but I guess what I'm also trying to get get at is given that it would be obviously the benefit to you would be the extended visibility and the benefit to the purchaser of the plan would be, you know, the locked, locked in rates. Would you. Because it's going to be, you know, a business line over three years versus one for, you know, the typical plan or would you require some sort of an upfront deposit that would be different from your normal approach to taking on new business or taking on a new plan with an existing customer?
Tim Johnson (Chief Executive Officer)
No, we don't. Yeah, we're sorry. We don't require an upfront deposit through the underwriting process. We float that across all three years. So you may have like. So yeah, so if your first year would have been $10, you know, we're going to float the overall increase and expand it across the three years. So your first year may be a little more, but you're, you know, all things being equal, your third year would be less, but at least you could budget to those numbers.
M. Marin
Got it. Okay, thanks. And then switching topics, one final question on the analytics, which I think could be extremely interesting. You talk specifically about, you know, specific things that you think the analytics could be applied to. But it seems to me that there could be a lot of opportunity to take data analytics and you know, package, package the data in such a way that it could really potentially extend beyond the target market that you originally described.
Tim Johnson (Chief Executive Officer)
Yeah, you're reading my mind. That's exactly what we're thinking. Okay, so this is the right way to think about it, is that this is your first step, but then there could be significant extension behind that, you know, once you've gotten in place with the first significant. Okay, great. Thank you. Yeah, thanks for the question.
OPERATOR
Seeing no more questions in the queue. Let me turn the call back to Mr. Johnson for closing remarks, please. Go ahead.
Tim Johnson (Chief Executive Officer)
Sure. Thank you, operator, and thank you all. I appreciate everyone joining the call today. If anyone has any further questions, please do not hesitate to reach out to us. We appreciate your interest and look forward to keeping the dialogue open. Thanks, everybody. Have a good day.
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