Clover Health Investments, Corp. · NASDAQ:CLOV
Clover Health Investments — Q1 2023 Earnings Presentation
16 slides from Clover Health Investments's earnings presentation, May 9, 2023
Slide 1: Clover Health First Quarter 2023 - Earnings Results
Clover Health First Quarter 2023 - Earnings Results
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying oral presentation include forward-looking statements, including statements regarding future events and Clover Health Investments, Corp.’s (“Clover Health,” “we,” “our,” or “us”) future results of operations, financial condition, outlook, market size
Slide 3: Speakers
Speakers Andrew Toy Chief Executive Officer Scott Leffler Chief Financial Officer 3
Slide 4: Q1 2023 and Recent Highlights
Q1 2023 and Recent Highlights ● Relatively stable utilization and cost environment contributing to favorable performance ● Improved 2023 guidance includes Insurance MCR of 87% - 89%, Insurance revenue of $1.18 Business & billion - $1.23 billion, and Adjusted EBITDA of ($125) million - ($175) million
Slide 5: Financial Overview
Financial Overview
Slide 6: Q1 2023 Financial Performance: Insurance
Q1 2023 Financial Performance: Insurance In millions, except MCR Revenue Gross Profit First Quarter Revenue +14% MCR -980 bps MCR: 96.4% 86.6% ● Q1 2023 revenue and MCR improvement driven by continued operational enhancements, a balanced and sustainable plan design, and improved PPO Star rating as o
Slide 7: Favorable Trend in Insurance MCR
Favorable Trend in Insurance MCR 7
Slide 8: Q1 2023 Financial Performance: Non-Insurance
Q1 2023 Financial Performance: Non-Insurance In millions, except MCR Revenue Gross Profit First Quarter Revenue -65% MCR -370 bps MCR: 99.8% 96.1% ● Q1 2023 revenue decrease and MCR improvement driven by a narrower group of aligned beneficiaries as a result of our strategic focus on fewer participan
Slide 9: Q1 2023 Financial Performance: Consolidated
Q1 2023 Financial Performance: Consolidated In millions First Quarter Revenue (40%) Adjusted EBITDA(1) +$41M (1) Adjusted EBITDA is a non-GAAP financial measure. Please refer to Non-GAAP Financial Measures provided in the Appendix for a reconciliation of Adjusted EBITDA to Net Loss, the most directl
Slide 10: 2023 Outlook
2023 Outlook On the following slide, Clover Health presents an overview of its full-year 2023 outlook, including certain non-GAAP measures.
Slide 11: Full-Year 2023 Outlook
Full-Year 2023 Outlook Prior Guidance Updated Guidance (2/28/23) (5/9/23) Total Revenue $1.90 billion - $2.00 billion $1.93 billion - $2.03 billion Insurance Revenue $1.15 billion - $1.20 billion $1.18 billion - $1.23 billion Insurance MCR 89% - 91% 87% - 89% Non-Insurance Revenue $0.75 billion - $0
Slide 12: Our 2023 Goal: Shareholder Value
Our 2023 Goal: Shareholder Value 1 Prioritizing Profitability as our Top Focus 2 Price our Insurance Plans for Profitability to Improve Margins 3 Aim to Deliver Gross Profit in our Non-Insurance Line of Business 4 Capture Operational Efficiencies to Optimize SG&A and Reduce Spend Manage Capital Prud
Slide 13: Appendix
Appendix
Slide 14: Non-GAAP Financial Measures
Non-GAAP Financial Measures CLOVER HEALTH INVESTMENTS, CORP. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED EBITDA (NON-GAAP) RECONCILIATION (in thousands)(1) (1) The table above includes non-GAAP measures. Non-GAAP financial measures are supplemental and should not be consi
Slide 15: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) CLOVER HEALTH INVESTMENTS, CORP. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED SG&A (NON-GAAP) RECONCILIATION (in thousands)(1) (1) The table above includes non-GAAP measures. Non-GAAP financial measures are supplemental and should no
Slide 16: About Non-GAAP Financial Measures
About Non-GAAP Financial Measures We use non-GAAP measures including Adjusted EBITDA, and Adjusted SG&A. These non-GAAP financial measures are provided to enhance the reader’s understanding of Clover Health’s past financial performance and our prospects for the future. Clover Health’s management tea
Clover Health Investments — Q1 2023 Earnings Presentation on 6ix