Clover Health Investments, Corp. · NASDAQ:CLOV
Clover Health Investments — Q3 2022 Earnings Presentation
15 slides from Clover Health Investments's earnings presentation, Nov 7, 2022
Slide 1: Clover Health Third Quarter 2022 - Earnings Results
Clover Health Third Quarter 2022 - Earnings Results
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying oral presentations include forward-looking statements, including statements regarding future events and Clover Health Investments, Corp.’s (“Clover,” “we,” “our,” or “us”) future results of operations, financial position, market size and opportunity,
Slide 3: Speakers
Speakers Vivek Garipalli Chief Executive Officer & Executive Chairman Andrew Toy President (Incoming CEO, Q1’23) Scott Leffler Chief Financial Officer 3
Slide 4: Q3 2022 and Recent Highlights
Q3 2022 and Recent Highlights ● Improved Insurance MCR leads to increased 2022 guidance range of 93% - 94% ● Clover intends to continue to grow Insurance business at above-market rates in 2023 but will Business & moderate growth to prioritize profitability. Company outlines strategic reduction in nu
Slide 5: Financial Overview
Financial Overview
Slide 6: Q3 & YTD 2022 Financial Performance: Consolidated
Q3 & YTD 2022 Financial Performance: Consolidated In millions Third Quarter Year-to-Date +101% +148% Revenue Adjusted EBITDA(1) +$21M +$42M (1) Adjusted EBITDA is a non-GAAP financial measure. We define Adjusted EBITDA as net loss before interest expense, amortization of notes and securities discoun
Slide 7: Significant Favorability in Insurance MCR Trend
Significant Favorability in Insurance MCR Trend 7
Slide 8: Q3 & YTD 2022 Financial Performance: Insurance
Q3 & YTD 2022 Financial Performance: Insurance In millions, except MCR Revenue Third Quarter Year-to-Date Revenue +32% Revenue +36% MCR -1,620 bps MCR -1,540 bps MCR: 102.5% 86.3% MCR: 107.1% 91.7% ● Q3 2022 revenue growth largely due to growth in membership of ~31% year-over-year ● Favorable declin
Slide 9: Q3 & YTD 2022 Financial Performance: Non-Insurance
Q3 & YTD 2022 Financial Performance: Non-Insurance In millions, except MCR Revenue Third Quarter Year-to-Date Revenue +163% Revenue(1) +300% MCR +180 bps MCR -380 bps MCR: 102.4% 104.2% MCR: 107.1% 103.3% ● Q3 2022 revenue growth largely due to growth in aligned beneficiaries of ~169% year-over-year
Slide 10: 2022 Outlook
2022 Outlook On the following slide, Clover Health presents an overview of its full-year 2022 outlook, including certain non-GAAP measures.
Slide 11: Full-Year 2022 Outlook
Full-Year 2022 Outlook Initial Guidance Updated Guidance 02/23/2022 11/07/2022 Total Revenue $3.0 billion - $3.4 billion $3.2 billion - $3.4 billion Insurance Revenue $1.0 billion - $1.1 billion $1.0 billion - $1.1 billion Non-Insurance Revenue $2.0 billion - $2.3 billion $2.2 billion - $2.3 billion
Slide 12: Appendix
Appendix
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures CLOVER HEALTH INVESTMENTS, CORP. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED EBITDA RECONCILIATION (in thousands) (Unaudited)(1) (1) The table above includes non-GAAP measures. Non-GAAP financial measures are supplemental and should not be cons
Slide 14: 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 (Dollars in thousands) (Unaudited)(1) (1) The table above includes non-GAAP measures. Non-GAAP financial measures are supple
Slide 15: 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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