Clover Health Investments, Corp. · NASDAQ:CLOV
Clover Health Investments — Q4 2024 Earnings Presentation
30 slides from Clover Health Investments's earnings presentation, Feb 27, 2025
Slide 1: Fourth Quarter & Full-Year 2024 Earnings Conference Call
Fourth Quarter & Full-Year 2024 Earnings Conference Call February 27, 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: Our Goals: 12 Month Lookback
Our Goals: 12 Month Lookback Investor Presentation from ~1 Year Ago(1) Meaningful Adj. EBITDA Profitability of ~$70 million(2) PPO Plan PY25: 3.5 Stars / PY26: 4.0 Stars(3) Top-Line Growth; ~27% January YoY Membership Growth(4) Counterpart Health Launch (1) The slide screenshot of the page titled “G
Slide 5: Clover's Next Phase: Growth
Clover’s Next Phase: Growth 2018 2022 2025 & Beyond Growth Profitability Innovation 5
Slide 6: Positioned to Succeed
Positioned to Succeed Average Medicare Advantage Membership(1) Average MCR Differential by Cohort Year(2) +30% Robust new member growth via MA switchers & core market focus, coupled with compelling cohort management, establishes foundation for long-term Medicare Advantage success (1) Average Medicar
Slide 7: Guidance
Guidance On the following slides, Clover Health presents an overview of its full year 2025 guidance, including certain non-GAAP measures.
Slide 8: Full Year 2025 Guidance Review
Full Year 2025 Guidance Review Full-Year 2025 Guidance (2/27/25) Insurance Revenue $1.800B - $1.875B Adjusted SG&A(1) $355M - $365M Adjusted SG&A 19% - 20% as a % of Total Revenues Adjusted EBITDA(1) $45M - $70M Adjusted Net Income(1) $45M - $70M Average Medicare Advantage 103,000 - 107,000 Membersh
Slide 9: 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 $45M -
Slide 10: Fourth Quarter & Full-Year 2024 Financial Supplement
Fourth Quarter & Full-Year 2024 Financial Supplement
Slide 11: Business Update
Business Update Meaningful Profitability Strong 2024 Insurance Results Increasing FY24 Adjusted EBITDA and Adjusted Net Industry-leading loss ratios income from continuing operations(1) Top-line revenue growth Strong cash flow from operations Achieved 4.0 Stars PY2026 PPO Plans(2) Growing Lives Unde
Slide 12: Financial Summary
Financial Summary ● ($21.5M) Net loss from continuing operations in 4Q24, improved by $46.4M, as compared to 4Q23. FY24 Net loss from continuing operations of ($46.3M), improved by $163.8M, as compared to FY23 ● Adjusted EBITDA(1) of $7.8M in 4Q24 improved by $24.5M, as compared to 4Q23. FY24 Profit
Slide 13: 4Q & FY24 Financial Performance: Insurance
4Q & FY24 Financial Performance: Insurance In millions, except MCR Revenue Gross Profit Fourth Quarter Full Year +9% YoY +9% YoY +44% +66% YoY YoY BER: 87.4% 82.8% 86.5% 81.2% MCR: 82.4% 73.5% 81.2% 75.1% ● 4Q and FY24 revenue, MCR, and BER performance driven by strong MA fundamentals, returning mem
Slide 14: 4Q & FY24 Financial Performance: Adjusted SG&A
4Q & FY24 Financial Performance: Adjusted SG&A(1) In millions Fourth Quarter Full Year +9% (1%) YoY YoY ● Elevated 4Q24 Adjusted SG&A reflects strategic reinvestments made to support growth, as well as various quality-focused investments aimed at improving member outcomes. (1) Adjusted SG&A is a non
Slide 15: 4Q & FY24 Financial Performance: Adjusted EBITDA
4Q & FY24 Financial Performance: Adjusted EBITDA(1) In millions Fourth Quarter Full Year +$112M YoY +$25M 4Q23 YoY FY23 ● Significantly improved year-over-year Adjusted EBITDA as the result of strong MA business performance, well managed member cohorts, differentiated ability to better manage the to
Slide 16: 4Q & FY24 Financial Performance: Adjusted Net Income from Continuing Operations
4Q & FY24 Financial Performance: Adjusted Net Income (Loss) from Continuing Operations(1) In millions Fourth Quarter Full Year +$117M YoY +$29M 4Q23 YoY FY23 ● Significantly improved year-over-year Adjusted Net income (loss) from continuing operations as the result of strong MA business performance,
Slide 17: Appendix
Appendix
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: Financial Statements: Consolidated Balance Sheets
Financial Statements Consolidated Balance Sheets (Dollars in thousands, except share amounts) (unaudited) 22
Slide 23: Financial Statements: Statements of Operations and Comprehensive Loss
Financial Statements Consolidated Statements of Operations and Comprehensive Loss (Dollars in thousands, except per share and share amounts) (unaudited) 23
Slide 24: Financial Statements: Statements of Cash Flows
Financial Statements Consolidated Statements of Cash Flows (Dollars in thousands) (unaudited) 24
Slide 25: Financial Statements: Operating Segments
Financial Statements Operating Segments (Dollars in thousands) (unaudited) 25
Slide 26: 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 27: 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 28: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) CLOVER HEALTH INVESTMENTS, CORP. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED NET INCOME (LOSS) FROM CONTINUING OPERATIONS (NON-GAAP) RECONCILIATION (in thousands)(1) (unaudited) (1) The table above includes non-GAAP measures. Non-GAAP financial meas
Slide 29: 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 30: About Non-GAAP Financial Measures
About Non-GAAP Financial Measures We use non-GAAP measures in this presentation, including Adjusted EBITDA, Adjusted Net income (loss) 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
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