Clover Health Investments, Corp. · NASDAQ:CLOV
Clover Health Investments — Q4 2022 Earnings Presentation
18 slides from Clover Health Investments's earnings presentation, Feb 28, 2023
Slide 1: Fourth Quarter and Full Year 2022 Earnings Results
Clover Health Fourth Quarter and Full Year 2022 - 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: Q4 & Full Year 2022 and Recent Highlights
Q4 & Full Year 2022 and Recent Highlights ● Insurance MCR of 92.4% in Q4 2022 and 91.8% for FY 2022 demonstrate continued positive momentum and significant improvement compared to 2021 Business & ● 2023 guidance includes Insurance MCR range of 89% - 91%, continued top-line Insurance Market Update re
Slide 5: Financial Overview
Financial Overview
Slide 6: Q4 & Full-Year 2022 Financial Performance: Consolidated
Q4 & Full-Year 2022 Financial Performance: Consolidated In millions Fourth Quarter Full-Year +108% +136% Revenue Adjusted EBITDA(1) +$6M +$45M (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 EB
Slide 7: Favorable Trend in Insurance MCR
Favorable Trend in Insurance MCR 7
Slide 8: Q4 & Full-Year 2022 Financial Performance: Insurance
Q4 & Full-Year 2022 Financial Performance: Insurance In millions, except MCR Revenue Fourth Quarter Full-Year Revenue +34% Revenue +36% MCR -1,040 bps MCR -1,420 bps MCR: 102.8% 92.4% MCR: 106.0% 91.8% ● Q4 2022 revenue driven by growth in membership of ~30% year-over-year ● Insurance MCR improvemen
Slide 9: Q4 & Full-Year 2022 Financial Performance: Non-Insurance
Q4 & Full-Year 2022 Financial Performance: Non-Insurance In millions, except MCR Revenue Fourth Quarter Full-Year Revenue +172% Revenue(1) +256% MCR +60 bps MCR -230 bps MCR: 103.0% 103.6% MCR: 105.7% 103.4% ● Q4 2022 revenue driven by growth in aligned beneficiaries of ~166% year-over-year (1) Dire
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 Guidance Total Revenue $1.90 billion - $2.00 billion Insurance Revenue $1.15 billion - $1.20 billion Non-Insurance Revenue $0.75 billion - $0.80 billion Insurance MCR 89% - 91% Non-Insurance MCR 98% - 100% Adjusted SG&A(1) $315 million - $325 million Adjusted EBITDA(1) ($155)
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: Clover Assistant Helps in Early Treatment of Diabetes
Clover Assistant Helps in Early Treatment of Diabetes Clover Assistant parses multiple datasets using AI/ML for insights that may signal whether a member has a risk of disease When a physician is prompted by Diabetes Medication Clover Assistant to consider Management Often diabetes, we find that dia
Slide 15: PCPs Detect CKD Earlier Once Adopting CA
PCPs Detect CKD Earlier Once Adopting CA Better Clover Assistant helps track Glomerular filtration rate (GFR) * When a member’s GFR declines to a certain range, Clover Assistant prompts the PCP to consider CKD Stage 3 After CA Adoption Clover Assistant helps PCPs identify CKD earlier in the Before C
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, Adjusted SG&A, and Adjusted SG&A as a percentage of revenue. These non-GAAP financial measures are provided to enhance the reader’s understanding of Clover Health’s past financial performance and our prospects for
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