Clover Health Investments, Corp. · NASDAQ:CLOV
Clover Health Investments — Q3 2023 Earnings Presentation
16 slides from Clover Health Investments's earnings presentation, Nov 6, 2023
Slide 1: Clover Health Third Quarter 2023 - Earnings Results
Clover Health Third 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”), including, without limitation, our expectations regarding targeted reve
Slide 3: Speakers
Speakers Andrew Toy Chief Executive Officer Scott Leffler Chief Financial Officer 3
Slide 4: Q3 2023 and Recent Highlights
Q3 2023 and Recent Highlights ● Company progressing well on path to profitability with durable 2023 YTD performance ● Strong results continue to highlight increasing impact from Clover Assistant and maturing operations Business Update ● UST HealthProof transition actively underway, positioning Compa
Slide 5: Financial Overview
Financial Overview
Slide 6: Q3 & YTD 2023 Financial Performance: Insurance
Q3 & YTD 2023 Financial Performance: Insurance In millions, except MCR Revenue Gross Profit Third Quarter Year-to-Date Revenue +12% Revenue +15% MCR -780 bps MCR -1,090 bps MCR: 86.3% 78.5% MCR: 91.7% 80.8% ● Q3 2023 revenue and MCR performance driven by continued operational enhancements, a balance
Slide 7: Favorable Trend in Insurance MCR
Favorable Trend in Insurance MCR 7
Slide 8: Q3 & YTD 2023 Financial Performance: Non-Insurance
Q3 & YTD 2023 Financial Performance: Non-Insurance In millions, except MCR Revenue Gross Profit Third Quarter Year-to-Date Revenue -70% Revenue -67% MCR -10 bps MCR -360 bps MCR: 104.2% 104.1% MCR: 103.3% 99.7% ● Q3 2023 revenue decrease driven by a narrower group of aligned beneficiaries as a resul
Slide 9: Q3 & YTD 2023 Financial Performance: Consolidated
Q3 & YTD 2023 Financial Performance: Consolidated In millions Third Quarter Year-to-Date Revenue (44%) (41%) Adjusted EBITDA(1) +$51M +$184M (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 EBIT
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 (8/8/23) (11/6/23) Total Revenue $1.95 billion - $2.03 billion $1.96 billion - $2.03 billion Insurance Revenue $1.20 billion - $1.23 billion $1.21 billion - $1.23 billion Insurance MCR 83% - 85% 81% - 82% 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: Appendix
Appendix
Slide 14: 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 15: 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 16: 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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