Clover Health Investments, Corp. · NASDAQ:CLOV
Clover Health Investments — Q1 2024 Earnings Presentation
20 slides from Clover Health Investments's earnings presentation, May 7, 2024
Slide 1: Business Update & First Quarter 2024 Earnings Results
Clover Health Business Update & First Quarter 2024 Earnings Results
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 and
Slide 3: Speakers
Speakers Andrew Toy Chief Executive Officer Terry Ronan Interim Chief Financial Officer 3
Slide 4: First Quarter 2024 Business Update
First Quarter 2024 Business Update Delivers first quarter 2024 positive Adjusted EBITDA and continued Insurance revenue growth Improves 2024 guidance to target full-year Adjusted EBITDA profitability, and maintains view that Clover has sufficient capital for operating and growth needs(1) Strong perf
Slide 5: Clover Health at a Glance
Clover Health at a Glance Managed Care Payer, solely focused on Medicare, currently serving ~80k members Targeting $1.30B-$1.35B in annual premiums and positive Adjusted EBITDA profitability of $10M-$30M for full-year 2024(1) Anchored on physician enablement, bringing together the power of artificia
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) Superior Medicare Advantage performance despite broader industry utilization headwinds cited by other Medicare centric peers (1) 2024 Outlook is ba
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 Cloud-Based, AI-Powered Platform. Aggregates, In-Home, High-Touch Primary Care. Fully synthesizes, and normalizes disparate data streams to accountable, high-touch primary care & sup
Slide 8: First Quarter 2024 Financial Overview
First Quarter 2024 Financial Overview
Slide 9: Financial Highlights
Financial Highlights ● Q1’24 Insurance MCR of 77.9% on 8% revenue growth ● Net Loss from continuing operations improved year-over-year by $56.5mm to ($23.2mm) in Continued Q1’24, as compared to ($79.7mm) in Q1’23 Improvement in ● Adjusted EBITDA(1) improved year-over-year by $44.3mm to $6.8mm in Q1’
Slide 10: Q1 2024 Financial Performance: Insurance
Q1 2024 Financial Performance: Insurance In millions, except MCR Revenue Gross Profit Revenue Growth: +8% MCR Improvement: -870 bps MCR: 86.6% 77.9% ● Q1 2024 revenue and MCR performance driven by continued operational enhancements, clinical initiatives, and the impact of Clover Assistant and Clover
Slide 11: Q1 2024 Financial Performance: Key Operating Metrics
Q1 2024 Financial Performance: Key Operating Metrics In millions Adjusted SG&A(1) Adjusted EBITDA(1) (12%) +$44M ● Durable Adjusted SG&A improvement a result of new MA operational ecosystem, year-over-year workforce optimization, and exiting ACO Reach program. ● Significantly improved Adjusted EBITD
Slide 12: Outlook
Outlook On the following slides, Clover Health presents an overview of its full-year 2024 outlook, including certain non-GAAP measures.
Slide 13: Full-Year 2024 Outlook
Full-Year 2024 Outlook Prior Guidance Updated Guidance (3/12/24) (5/7/24) Insurance Revenue $1.25 billion - $1.30 billion $1.30 billion - $1.35 billion Insurance MCR 79% - 83% 79% - 81% Adjusted SG&A(1) $270 million - $280 million $270 million - $280 million Adjusted EBITDA(1) ($20) million - $20 mi
Slide 14: We Remain Confident In Our Liquidity Position
We Remain Confident In Our Liquidity Position, With Sufficient Capital for Operating and Growth Needs Expected Pro-Forma Year-End 2024 Unregulated Liquidity: $145M - $165M (1) (2) At year-end 2023, Clover had unregulated liquidity of ~$137M, as well as ~$74M of capital and surplus in excess of minim
Slide 15: Appendix
Appendix
Slide 16: 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 17: 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 18: 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 19: Selected Financial Metrics Reconciliation
Selected Financial Metrics Reconciliation CLOVER HEALTH INVESTMENTS, CORP. CONSOLIDATED BALANCE SHEETS: SELECTED METRICS (in thousands)(1) (1) Non-Insurance Net Payable can be calculated by subtracting the Assets related to discontinued operations from the Liabilities related to discontinued operati
Slide 20: About Non-GAAP Financial Measures
About Non-GAAP Financial Measures We use non-GAAP measures in this presentation, 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 He
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