Clover Health Investments, Corp. · NASDAQ:CLOV
Clover Health Investments — Q2 2024 Earnings Presentation
26 slides from Clover Health Investments's earnings presentation, Aug 5, 2024
Slide 1: Second Quarter 2024 Earnings Conference Call
Second Quarter 2024 Earnings Conference Call August 5, 2024
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying oral presentation include forward-looking statements, including, without limitation, statements regarding future events and Clover Health Investments, Corp.’s (“Clover Health,” “we,” “our,” or “us”) expectations regarding positive Adjusted EBITDA, Ad
Slide 3: Today's Speakers
Today’s Speakers Andrew Toy Peter Kuipers Chief Executive Officer Chief Financial Officer 3
Slide 4: Clover Health's Three Pillar Strategy
Clover Health’s Three Pillar Strategy Better Chronic Disease Differentiated Physician Management Care Platform Choice Exclusively focused on Physician enablement Members select doctor of Medicare Advantage technology, powered by AI their choice Can enable value based Clinical outcomes improved Home-
Slide 5: Second Quarter 2024 Business Update
Second Quarter 2024 Business Update Meaningfully Profitable Solid Core Fundamentals First-ever GAAP Net Income as public company Profitable Insurance offering Increasing Adjusted EBITDA Continued top-line revenue growth Meaningfully Improved full-year 2024 guidance(1) Industry-leading loss ratios St
Slide 6: Financial Performance Demonstrating the Strength of Clover Health's Model
Financial Performance Demonstrating the Strength of Clover Health’s Model Insurance Revenue(1)(2) Insurance Gross Profit(1)(2) Adjusted EBITDA(3) (1)(2) Clover leads with superior Medicare Advantage performance amidst dynamic industry backdrop (1) 2024 Guidance is based on guidance provided in the C
Slide 7: Differentiated Asset-Light Care Management Platform Enables a Wide Network Approach
Differentiated Asset-Light Care Management Platform Enables a Wide Network Approach Clover Assistant Clover Home Care Manages Low-to-High Disease Burden Manages High Disease Burden Cloud-Based, AI-Powered Platform Home-Based, Care Coordination Aggregates & synthesizes disparate Annual in-home assess
Slide 8: Meeting Consumer Preference Positions Clover for Long Term Growth in Medicare Advantage
Meeting Consumer Preference Positions Clover for Long Term Growth in Medicare Advantage National Market Data Confirms that Why is this Important? Consumers Prefer PPO Plans(1) HMO: People who are happy to let an insurance plan select their doctor PPO: People who prefer to select their own doctor (1)
Slide 9: Technology-Driven Flywheel Powering Clover's Growth Model
Technology-Driven Flywheel Powering Clover’s Growth Model Improved Clinical Decision Making Strong Benefit Offering and 5 1 and Lower Total Cost of Care High-Choice Plan Design More Physicians Use Product Strength Drives 4 2 Technology Platform Membership Growth 3 Physicians Manage 9 More Clover Mem
Slide 10: Counterpart Health's Compelling Value Proposition
Counterpart Health’s Compelling Value Proposition: Bring Clover’s Care Model to Other Plans & Providers For External Payors & Providers For Clover Health Cloud-based, AI-powered technology & support Deploy existing technology asset for growth & platform already built with proven results profitabilit
Slide 11: Second Quarter 2024 Financial Overview
Second Quarter 2024 Financial Overview
Slide 12: Financial Summary
Financial Summary ● $7.2mm of Net Income from continuing operations in 2Q24, improved by $36.1mm, as compared to ($28.9mm) in 2Q23 Profitability ● $36.2mm of Adjusted EBITDA(1) in 2Q24, improved by $26.3mm, as compared to $9.9mm in 2Q23 ● 2Q24 Insurance MCR of 71.3% and BER(2) of 76.1%, on 11% reven
Slide 13: 2Q24 Financial Performance: Insurance
2Q24 Financial Performance: Insurance In millions, except MCR Revenue Gross Profit Second Quarter Year-to-Date +10% +11% YoY YoY +42% +56% YoY YoY MCR: 77.2% 71.3% 81.9% 74.5% ● 2Q and 1H 2024 revenue and MCR performance driven continued operational enhancements, returning member retention, clinical
Slide 14: 2Q24 Financial Performance: Adjusted SG&A
2Q24 Financial Performance: Adjusted SG&A(1) In millions Second Quarter Year-to-Date +9% YoY (3%) YoY ● 1H24 Adjusted SG&A improvement a result of new MA operational ecosystem and year-over-year workforce optimization, partially offset by increased growth costs, driven by strong OEP and SEP growth.
Slide 15: 2Q24 Financial Performance: Adjusted EBITDA
2Q24 Financial Performance: Adjusted EBITDA(1) In millions Second Quarter Year-to-Date +$71M +$26M YoY YoY 1H23 ● Significantly improved Adjusted EBITDA as the result of strong business fundamentals and continued focus on SG&A optimization. (1) Adjusted EBITDA is a non-GAAP financial measure. A reco
Slide 16: Guidance
Guidance On the following slides, Clover Health presents an overview of its full-year 2024 guidance, including certain non-GAAP measures.
Slide 17: Full-Year 2024 Guidance
Full-Year 2024 Guidance Updated Guidance Prior Guidance (8/5/24) (5/7/24) Insurance Revenue $1.35 billion - $1.375 billion $1.30 billion - $1.35 billion Insurance MCR 77% - 79% 79% - 81% Insurance BER(1) 81% - 83% NA Adjusted SG&A(1) $270 million - $280 million $270 million - $280 million Adjusted E
Slide 18: Appendix
Appendix
Slide 19: Financial Statements: Condensed Consolidated Balance Sheet
Financial Statements Condensed Consolidated Balance Sheet (Unaudited) (Dollars in thousands, except share amounts) 19
Slide 20: Financial Statements: Statements of Operations
Financial Statements Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) (Dollars in thousands, except per share and share amounts) 20
Slide 21: Financial Statements: Statement of Cash Flows
Financial Statements Condensed Consolidated Statement of Cash Flows (Unaudited) (Dollars in thousands) 21
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures CLOVER HEALTH INVESTMENTS, CORP. 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 considered a substitut
Slide 23: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) CLOVER HEALTH INVESTMENTS, CORP. 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 not be considered a
Slide 24: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) CLOVER HEALTH INVESTMENTS, CORP. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INSURANCE BENEFITS EXPENSE RATIO, NET (NON-GAAP) RECONCILIATION (in thousands)(1) (1) The table above includes non-GAAP measures. Non-GAAP financial measures are supplemental and sh
Slide 25: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) CLOVER HEALTH INVESTMENTS, CORP. 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 considered
Slide 26: About Non-GAAP Financial Measures
About Non-GAAP Financial Measures We use non-GAAP measures in this presentation, including Adjusted EBITDA, Adjusted SG&A, and Insurance BER. 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 f
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