Clover Health Investments, Corp. · NASDAQ:CLOV
Clover Health Investments — Q3 2024 Earnings Presentation
20 slides from Clover Health Investments's earnings presentation, Nov 6, 2024
Slide 1: Third Quarter 2024 Earnings Conference Call
Third Quarter 2024 Earnings Conference Call November 6, 2024
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, Ad
Slide 3: Today's Speakers
Today’s Speakers Andrew Toy Peter Kuipers Chief Executive Officer Chief Financial Officer 3
Slide 4: Clover Health's Three Pillar Strategy
Clover Health’s Three Pillar Strategy Better Chronic Disease Differentiated Physician Management Care Platform Choice Exclusively focused on Physician enablement Members select doctor of Medicare Advantage technology, powered by AI their choice Can enable value based Clinical outcomes improved Home-
Slide 5: Third Quarter 2024 Business Update
Third Quarter 2024 Business Update Meaningfully Improved Profitability Strong Insurance Results Increasing Adjusted EBITDA(1) Industry-leading loss ratios Improved full-year 2024 guidance(1) Continued top-line revenue growth Increasing cash flow from operations Differentiated via Clover Assistant te
Slide 6: Third Quarter 2024 Financial Overview
Third Quarter 2024 Financial Overview
Slide 7: Financial Summary
Financial Summary ● ($8.8M) Net loss from continuing operations in 3Q24, improved by $24.8M, as compared to ($33.6M) in 3Q23 Profitability ● $19.3M of Adjusted EBITDA(1) in 3Q24, improved by $16.5M, as compared to $2.7M in 3Q23 ● 3Q24 Insurance MCR of 78.0% and BER(2) of 82.8%, on 7% revenue growth
Slide 8: 3Q24 Financial Performance: Insurance
3Q24 Financial Performance: Insurance In millions, except MCR Revenue Gross Profit Third Quarter Year-to-Date +9% YoY +7% YoY +39% +11% YoY YoY MCR: 78.5% 78.0% 80.8% 75.6% ● 3Q and YTD 2024 revenue and MCR performance driven by operational enhancements, returning member retention, clinical initiati
Slide 9: 3Q24 Financial Performance: Adjusted SG&A
3Q24 Financial Performance: Adjusted SG&A(1) In millions Third Quarter Year-to-Date (8%) (4%) YoY YoY ● 3Q and YTD 2024 Adjusted SG&A improvement a result of new MA operational ecosystem and year-over-year workforce optimization, partially offset by increased intra-year growth costs. (1) Adjusted SG
Slide 10: 3Q24 Financial Performance: Adjusted EBITDA
3Q24 Financial Performance: Adjusted EBITDA(1) In millions Third Quarter Year-to-Date +$87M +$16M YoY YoY 3Q23 YTD ● Significantly improved Adjusted EBITDA as the result of strong business fundamentals and continued focus on SG&A optimization. (1) Adjusted EBITDA is a non-GAAP financial measure. A r
Slide 11: Guidance
Guidance On the following slides, Clover Health presents an overview of its full-year 2024 guidance, including certain non-GAAP measures.
Slide 12: Full-Year 2024 Guidance
Full-Year 2024 Guidance Updated Guidance Prior Guidance (11/6/24) (8/5/24) Insurance Revenue $1.35 billion - $1.375 billion $1.35 billion - $1.375 billion Insurance MCR 76% - 77% 77% - 79% Insurance BER(1) 81% - 82% 81% - 83% Adjusted SG&A(1) $290 million - $295 million $270 million - $280 million A
Slide 13: Appendix
Appendix
Slide 14: Financial Statements: Condensed Consolidated Balance Sheets
Financial Statements Condensed Consolidated Balance Sheets (Unaudited) (Dollars in thousands, except share amounts) 14
Slide 15: Financial Statements: Statements of Operations and Comprehensive Loss
Financial Statements Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (Dollars in thousands, except per share and share amounts) 15
Slide 16: Financial Statements: Statements of Cash Flows
Financial Statements Condensed Consolidated Statements of Cash Flows (Unaudited) (Dollars in thousands) 16
Slide 17: 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 18: 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 19: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) CLOVER HEALTH INVESTMENTS, CORP. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INSURANCE BENEFITS EXPENSE RATIO, NET (NON-GAAP) RECONCILIATION (in thousands)(1) (1) The table above includes non-GAAP measures. Non-GAAP financial measures are supplemental and sh
Slide 20: About Non-GAAP Financial Measures
About Non-GAAP Financial Measures We use non-GAAP measures in this presentation, including Adjusted EBITDA, Adjusted SG&A, and Insurance BER. 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 f
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