Clover Health Investments, Corp. · NASDAQ:CLOV
Clover Health Investments — Q1 2025 Earnings Presentation
34 slides from Clover Health Investments's earnings presentation, May 6, 2025
Slide 1: First Quarter 2025 Earnings Conference Call
First Quarter 2025 Earnings Conference Call May 6, 2025
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 Adjusted EBITDA, Adjusted Ne
Slide 3: Our Vision
Our Vision Empower Every Physician with Technology to Identify, Manage & Treat Chronic Diseases Earlier Earlier Diagnosis Earlier Disease Higher Quality Affordable & & Treatment Management Clinical Care Accessible Care 3
Slide 4: Clover's Next Phase: Growth
Clover’s Next Phase: Growth 2018 2022 2025 & Beyond Growth Profitability Innovation 4
Slide 5: Clover's Next Phase: Growth
Clover’s Next Phase: Growth 2024 Results Improved 2025 Guidance(1) 2026 Tailwinds Strong Performance Balancing Growth & Profitability Poised for Accelerated Profitability +27% AEP growth MA membership +30% YoY(2) Positioned for strong membership growth $1.37B Total Revenue, +9% YoY Insurance Revenue
Slide 6: First Quarter 2025 Business Update
First Quarter 2025 Business Update Growth + Profitability FY25 Guidance Improved Medicare Advantage membership +30% YoY Medical costs in line with seasonality expectations and guidance ranges; Improving Insurance revenue +34% YoY Adj. EBITDA & Adj. Net Income guidance Adj. EBITDA +279% & Adj. Net in
Slide 7: Positioned to Succeed
Positioned to Succeed Average Medicare Advantage Membership(1) Average MCR Differential by Cohort Year(2) +30% +29% YoY Robust new member growth via MA switchers & core market focus during AEP & OEP, coupled with compelling cohort management, establishes foundation for long-term MA success (1) Avera
Slide 8: Clover Assistant Supports Better Clinical Outcomes
Non-CA CHF Cohort CA CHF Cohort Clover Assistant Supports Better Clover Assistant PCP relationship associated with Clinical Outcomes better clinical outcomes, including a lower average number of all-cause hospitalizations and 30-day readmissions for members with CHF(1) Example: Congestive Heart Fail
Slide 9: Guidance
Guidance On the following slides, Clover Health presents an overview of its full year 2025 guidance, including certain non-GAAP measures.
Slide 10: Full Year 2025 Guidance Improved
Full Year 2025 Guidance Improved Improved FY25 Guidance Prior FY25 Guidance (5/6/25) (2/27/25) Insurance Revenue $1.800B - $1.875B $1.800B - $1.875B Adjusted SG&A(1) $355M - $365M $355M - $365M Adjusted SG&A 19% - 20% 19% - 20% as a % of Total Revenues Adjusted EBITDA(1) $50M - $70M $45M - $70M Adju
Slide 11: First Quarter 2025 Financial Supplement
First Quarter 2025 Financial Supplement
Slide 12: Financial Summary
Financial Summary ● GAAP Net loss of ($1M) in 1Q25, improved by $18M, as compared to 1Q24 Profitability ● Adjusted EBITDA(1) of $26M in 1Q25 improved by 279%, as compared to 1Q24 ● Adjusted Net income(2) of $25M in 4Q24 improved by 322%, as compared to 1Q24 ● 1Q25 MA membership of 103,418, up 30% Yo
Slide 13: 1Q25 Financial Performance: Insurance
1Q25 Financial Performance: Insurance In millions, except BER Insurance Revenue Insurance Gross Profit +34% +17% BER: 83.2% 86.1% ● 1Q25 revenue and BER performance driven by strong MA growth and member retention, clinical initiatives, the impact of our Clover Assistant powered care platform, and me
Slide 14: 1Q25 Financial Performance: Adjusted SG&A
1Q25 Financial Performance: Adjusted SG&A(1) In millions, except % Adjusted SG&A as % of Total Revenue (4%) Adj. SG&A: $75M $83M ● 1Q25 Adjusted SG&A reflects our ability to gain operating leverage amidst increased variable & growth SG&A to support new membership from AEP / OEP, and our continued st
Slide 15: 1Q25 Financial Performance: Key Profitability Metrics
1Q25 Financial Performance: Key Profitability Metrics In millions Adjusted Net Income(1) Adjusted EBITDA(2) +322% +279% ● Significantly increased year-over-year Adjusted Net Income and Adjusted EBITDA as the result of strong MA performance, well managed member cohorts, differentiated ability to bett
Slide 16: Appendix
Appendix
Slide 17: Full Year 2025 Profitability Drivers: Adjusted EBITDA
Full Year 2025 Profitability Drivers: Adjusted EBITDA(1) Illustrative – Not to Scale FY24 FY25 Adj. EBITDA(1) Adj. EBITDA(1) Results Guidance Loss Ratio Impact from Fixed / Growth / Strong Returning Member Variable SG&A Cohort Economics Optimization via Cost Management Efficiency Program $70M $50M -
Slide 18: Differentiated, Tech-Centric Model Focused on Improving Clinical Care Outcomes via Software
Differentiated, Tech-Centric Model Focused on Improving Clinical Care Outcomes via Software Clover’s Approach Traditional MA Approaches Clinical, physician enablement, Technology InsurTech, back-office & administrative AI-Powered technology Earlier disease identification & management Delayed / react
Slide 19: Having Supported Clinical Decision-Making for Thousands of Practitioners
Having Supported Clinical Decision-Making for Thousands of Practitioners Captures & synthesizes Novel clinical insights data from 100+ sources at point-of-care Enhanced care coordination 100+ AI / ML models powering treatment Generating millions of recommendations clinically oriented and personalize
Slide 20: Our Technology-Driven Approach is Working
Our Technology-Driven Approach is Working Grow Membership & Clover Assistant Usage 1 Reinvest in Deliver Better AI Driven Member Benefits 5 2 Clinical Recommendations Reduce the Improve Health Outcomes 4 3 Total Cost of Care & Quality of Life 20
Slide 21: Quality: Clover Leads the Nation on HEDIS Measures
Quality: Clover Leads the Nation on HEDIS Measures(1) Top 10 HEDIS-Scoring Plans Life-Weighted Average HEDIS Raw Score(3) HEDIS Weighted Rank Plan(2) Contract Plan Type Raw Score Clover Health rated 4.94 / 5 Stars on HEDIS Measures for Star Rating Year 2025 (1) (1) Clover Health’s Medicare Advantage
Slide 22: Earlier Diagnosis Leads to Earlier Treatment
Earlier Diagnosis Leads to Earlier Treatment CKD is diagnosed earlier and disease trajectory improves in patients seen by providers using Clover Assistant(1) Example: Chronic Kidney Disease Kidney Function (GFR) Diagnosed CKD Stage 3 CA Patients Diagnosed CKD Stage 3 ~1.5 years Non-CA Patients Time
Slide 23: Earlier Diagnosis Leads to Earlier Treatment
Earlier Diagnosis Leads to Earlier Treatment Patients started on oral diabetic medications Members Newly Diagnosed with Diabetes (1) after Clover Assistant Example: Diabetes raised potential diabetes diagnosis for physician consideration(2) Diabetes Medication Fills Days Since Clover Assistant Visit
Slide 24: Earlier Diabetes Treatment Leads to:
Earlier Diabetes Treatment Leads to: Blood Sugar Indicator Oral Meds Started Non-CA Patients (HbA1c) Diabetes Diagnosed & Managed ~3 Years Earlier(1) Oral Meds Started CA Patients Time (Years) Percentage Taking Non-CA Patients Insulin Lower Use of Insulin(1) CA Patients Days Since Oral Meds Started
Slide 25: Clover Assistant Correlated with Improved Medication Adherence
Clover Assistant Correlated with Improved Medication Medication fills increased by ~5% on the day of the Clover Assistant visit and remained ~3% higher 90 days post-visit among patients previously non-adherent to Adherence their medications for diabetes, high blood pressure, and high cholesterol(1)
Slide 26: Financial Statements
Financial Statements Condensed Consolidated Balance Sheets (Dollars in thousands, except share amounts) (unaudited) 26
Slide 27: Financial Statements
Financial Statements Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Dollars in thousands, except per share and share amounts) (unaudited) 27
Slide 28: Financial Statements
Financial Statements Condensed Consolidated Statements of Cash Flows (Dollars in thousands) (unaudited) 28
Slide 29: Financial Statements
Financial Statements Operating Segments (Dollars in thousands) (unaudited) 29
Slide 30: Non-GAAP Financial Measures
Non-GAAP Financial Measures CLOVER HEALTH INVESTMENTS, CORP. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED SG&A (NON-GAAP) RECONCILIATION (in thousands)(1) (unaudited) (1) The table above includes non-GAAP measures. Non-GAAP financial measures are supplemental and should not be considered a
Slide 31: 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) (unaudited) (1) The table above includes non-GAAP measures. Non-GAAP financial measures are supplemental and should not b
Slide 32: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) CLOVER HEALTH INVESTMENTS, CORP. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED NET INCOME FROM CONTINUING OPERATIONS (NON-GAAP) RECONCILIATION (in thousands)(1) (unaudited) (1) The table above includes non-GAAP measures. Non-GAAP financial measures ar
Slide 33: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) CLOVER HEALTH INVESTMENTS, CORP. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INSURANCE BENEFITS EXPENSE RATIO (NON-GAAP) RECONCILIATION (in thousands)(1) (unaudited) (1) The table above includes non-GAAP measures. Non-GAAP financial measures are supplemental
Slide 34: About Non-GAAP Financial Measures
About Non-GAAP Financial Measures We use non-GAAP measures in this presentation, including Adjusted EBITDA, Adjusted Net income from continuing operations, Adjusted SG&A, and Insurance BER. These non-GAAP financial measures are provided to enhance the reader’s understanding of Clover Health’s past f
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