Clover Health Investments, Corp. · NASDAQ:CLOV
Clover Health Investments — Q2 2023 Earnings Presentation
18 slides from Clover Health Investments's earnings presentation, Aug 8, 2023
Slide 1: Clover Health Second Quarter 2023 - Earnings Results
Clover Health Second 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: Q2 2023 and Recent Highlights
Q2 2023 and Recent Highlights ● Company improves Net Loss and delivers first positive Adjusted EBITDA quarter as a public company ● Strong Insurance MCR performance driven by revenue growth and modest PMPM MedEx growth Business Update ● Continuing to progress well on path to profitability with durab
Slide 5: Financial Overview
Financial Overview
Slide 6: Q2 & YTD 2023 Financial Performance: Insurance
Q2 & YTD 2023 Financial Performance: Insurance In millions, except MCR Revenue Gross Profit Second Quarter Year-to-Date Revenue +17% Revenue +16% MCR -1,490 bps MCR -1,240 bps MCR: 92.1% 77.2% MCR: 94.3% 81.9% ● Q2 2023 revenue and MCR improvement driven by continued operational enhancements, a bala
Slide 7: Favorable Trend in Insurance MCR
Favorable Trend in Insurance MCR 7
Slide 8: Q2 & YTD 2023 Financial Performance: Non-Insurance
Q2 & YTD 2023 Financial Performance: Non-Insurance In millions, except MCR Revenue Gross Profit Second Quarter Year-to-Date Revenue -67% Revenue -66% MCR -640 bps MCR -510 bps MCR: 106.0% 99.6% MCR: 102.9% 97.8% ● Q2 2023 revenue decrease and MCR improvement driven by a narrower group of aligned ben
Slide 9: Q2 & YTD 2023 Financial Performance: Consolidated
Q2 & YTD 2023 Financial Performance: Consolidated In millions Second Quarter Year-to-Date (39%) (40%) Revenue Adjusted EBITDA(1) +$94M +$134M (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 EBI
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 (5/9/23) (8/8/23) Total Revenue $1.93 billion - $2.03 billion $1.95 billion - $2.03 billion Insurance Revenue $1.18 billion - $1.23 billion $1.20 billion - $1.23 billion Insurance MCR 87% - 89% 83% - 85% 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: Clover Assistant
Clover Assistant
Slide 14: Earlier Diagnosis Leads to Earlier Treatment: Kidney Function (GFR)
Earlier Diagnosis Leads to Earlier Treatment Per our recently published white paper(1), CKD is diagnosed earlier and disease trajectory Example: Chronic Kidney Disease improves in patients seen by providers using Clover Assistant Kidney Function (GFR) Diagnosed CKD Stage 3 CA Patients Diagnosed CKD
Slide 15: Appendix
Appendix
Slide 16: 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 17: 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 18: 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
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