First Quarter 2024 Insurance Revenue growth of 8% year-over-year
First Quarter 2024 GAAP Net Loss from Continuing Operations of
First Quarter Adjusted EBITDA profitability of
Improves 2024 guidance to Insurance Revenue of
Maintains strong liquidity position and view that Company has sufficient capital for operating and growth needs. Board of Directors authorizes share repurchase program of up to
“I am incredibly proud of our results this quarter for several notable reasons. First, Clover was profitable on an Adjusted EBITDA basis for the first quarter, and we have high confidence in achieving full year 2024 Adjusted EBITDA profitability. Second, we have grown revenues in our Insurance business by 8% year-over-year. Based on these results, we are delighted to improve our full-year 2024 guidance. In addition, we are pleased to announce that our Board of Directors has authorized a share repurchase program of up to
The Company delivered overall strong financial results to start the year, exceeding its expectations on several key operating metrics and highlighting significant progress on its path to profitability. For the first quarter 2024, total revenue was
“We have intentionally built Clover’s foundation to flourish in the future of the Medicare Advantage program,” said
Dollars in Millions | Q1'24 | Q1'23(1) | Change Between (%) | ||||||||
Insurance revenue | $ | 341.7 | $ | 317.1 | 7.8 | % | |||||
Total revenue | 346.9 | 322.0 | 7.7 | ||||||||
Insurance MCR | 77.9 | % | 86.6 | % | (870 bps) | ||||||
Salaries and benefits plus General and administrative expenses ("SG&A") (2) | $ | 103.8 | $ | 126.6 | (18.0 | ) | |||||
Adjusted Salaries and benefits plus General and administrative expenses ("Adjusted SG&A") (non-GAAP) (2)(3) | 74.9 | 84.8 | (11.7 | ) | |||||||
Net loss from continuing operations | (23.2 | ) | (79.7 | ) | (70.9 | ) | |||||
Adjusted EBITDA (non-GAAP) (3) | 6.8 | (37.5 | ) | Favorable* | |||||||
Total restricted and unrestricted cash, cash equivalents, and investments | $ | 440.3 | $ | 635.2 | (30.7 | ) |
* Not presented as a % change because the current or prior period amount is zero or the amount for the line item changed from a gain to a loss (or vice versa) and thus yields a result that is not meaningful.
(1) | The results of operations for the Company's former Non-Insurance segment have been reclassified as discontinued operations for all periods presented due to the Company's decision to not participate in the ACO Reach program for the 2024 performance year. Refer to Note 17 - Discontinued Operations within the form 10-Q filed on |
(2) | Salaries and benefits plus General and administrative expenses ("SG&A") is the sum of Salaries and benefits plus General and administrative expenses presented as the GAAP measure in the consolidated financial statements. |
(3) | Adjusted SG&A (non-GAAP) and Adjusted EBITDA (non-GAAP) are non-GAAP financial measures. Reconciliations of Adjusted SG&A (non-GAAP) to SG&A and Adjusted EBITDA (non-GAAP) to Net loss from continuing operations, respectively, the most directly comparable GAAP measures, are provided in the tables immediately following the consolidated financial statements below. Additional information about the Company's non-GAAP financial measures can be found under the caption "About Non-GAAP Financial Measures" below and in Appendix A. |
Financial Outlook
For full-year 2024,
Previous Guidance | Current Guidance | ||
Insurance revenue | |||
Insurance MCR | 79% - 83% | 79% - 81% | |
Adjusted SG&A (Non-GAAP)(1) | |||
Adjusted EBITDA (Non-GAAP)(1) | |||
(1) | Reconciliations of projected Adjusted SG&A (non-GAAP) to projected SG&A, and projected Adjusted EBITDA (non-GAAP) to Net loss from continuing operations, the most directly comparable GAAP measures, are not provided because Stock-based compensation expense, which is excluded from Adjusted SG&A (non-GAAP) and Adjusted EBITDA (non-GAAP), cannot be reasonably calculated or predicted at this time without unreasonable efforts. Additional information about the Company's non-GAAP financial measures can be found under the caption "About Non-GAAP Financial Measures" below and in Appendix A. |
Lives under Clover Management
Insurance members | 79,527 | 83,794 | |
Earnings Conference Call Details
Clover Health’s management will host a conference call to discuss its financial results on
Upcoming Investor Events & Conferences
- Bank of America 2024 Healthcare Conference,
May 15, 2024 - 2024
Leerink Partners Healthcare Crossroads Conference at4:40 p.m. Eastern Time ,May 29, 2024
Any live and archived webcasts and presentations associated with the conferences listed above may be accessed on Clover Health’s Investor Relations website at: investors.cloverhealth.com/news-and-events/investor-events-presentations
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding future events and
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
For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see Appendix A: "Explanation of Non-GAAP Financial Measures."
The statements contained in this document are solely those of the authors and do not necessarily reflect the views or policies of CMS. The authors assume responsibility for the accuracy and completeness of the information contained in this document.
About
Visit: www.cloverhealth.com
Investor Relations Contact:
investors@cloverhealth.com
Press Contact:
Andrew Still-Baxter
press@cloverhealth.com
CONSOLIDATED BALANCE SHEETS: SELECTED METRICS
(in thousands)
Selected Balance Sheet Data: | |||||
Cash, cash equivalents, restricted cash, and investments | $ | 440,279 | $ | 417,317 | |
Total assets | 671,770 | 570,671 | |||
Unpaid claims | 238,602 | 138,593 | |||
Total liabilities | 379,296 | 284,277 | |||
Total stockholders' equity | 292,474 | 286,394 | |||
(1) Includes all amounts related to discontinued operations.
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(Dollars in thousands, except share amounts) | |||||||
Three Months Ended | |||||||
2024 | 2023 | ||||||
Revenues: | |||||||
Premiums earned, net (Net of ceded premiums of | $ | 341,722 | $ | 317,086 | |||
Other income | 5,200 | 4,906 | |||||
Total revenues | 346,922 | 321,992 | |||||
Operating expenses: | |||||||
Net medical claims incurred | 265,162 | 274,789 | |||||
Salaries and benefits | 59,223 | 68,981 | |||||
General and administrative expenses | 44,569 | 57,644 | |||||
Premium deficiency reserve benefit | — | (1,810 | ) | ||||
Depreciation and amortization | 318 | 279 | |||||
Restructuring costs | 353 | 1,807 | |||||
Total operating expenses | 369,625 | 401,690 | |||||
Loss from continuing operations | (22,703 | ) | (79,698 | ) | |||
Loss on investment | 467 | — | |||||
Net loss from continuing operations | (23,170 | ) | (79,698 | ) | |||
Net income from discontinued operations | 4,000 | 7,092 | |||||
Net loss | $ | (19,170 | ) | $ | (72,606 | ) | |
Per share data: | |||||||
Continuing Operations: | |||||||
Basic and diluted weighted average number of Class A and Class B common shares and common share equivalents outstanding | 486,374,644 | 478,805,067 | |||||
Basic and diluted net loss per share | $ | (0.05 | ) | $ | (0.17 | ) | |
Discontinued operations: | |||||||
Basic weighted average number of Class A and Class B common shares and common share equivalents outstanding | 486,374,644 | 478,805,067 | |||||
Diluted weighted average number of Class A and Class B common shares and common share equivalents outstanding | 567,451,166 | 566,629,082 | |||||
Basic earnings per share | $ | 0.01 | $ | 0.01 | |||
Diluted earnings per share | $ | 0.01 | $ | 0.01 | |||
Operating Segments
Insurance | Corporate/Other | Eliminations | Consolidated Total | ||||||||||
Three Months Ended | (in thousands) | ||||||||||||
Premiums earned, net (Net of ceded premiums of | $ | 341,722 | $ | — | $ | — | $ | 341,722 | |||||
Other income | 3,727 | 15,681 | (14,208 | ) | 5,200 | ||||||||
Intersegment revenues | — | 48,465 | (48,465 | ) | — | ||||||||
Net medical claims incurred | 266,076 | 4,938 | (5,852 | ) | 265,162 | ||||||||
Gross profit (loss) | $ | 79,373 | $ | 59,208 | $ | (56,821 | ) | $ | 81,760 | ||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||
ADJUSTED EBITDA (NON-GAAP) RECONCILIATION | |||||||
(in thousands)(1) | |||||||
Three Months Ended | |||||||
2024 | 2023 | ||||||
Net loss from continuing operations (GAAP): | $ | (23,170 | ) | $ | (79,698 | ) | |
Adjustments | |||||||
Depreciation and amortization | 318 | 279 | |||||
Loss (gain) on investment | 467 | — | |||||
Stock-based compensation expense | 28,798 | 38,617 | |||||
Premium deficiency reserve benefit | — | (1,810 | ) | ||||
Restructuring costs | 353 | 1,807 | |||||
Non-recurring legal expenses and settlements | 54 | 3,258 | |||||
Adjusted EBITDA (non-GAAP) | $ | 6,820 | $ | (37,547 | ) | ||
(1) The table above includes non-GAAP measures. Non-GAAP financial measures are supplemental and should not be considered a substitute for financial information presented in accordance with GAAP. For a detailed explanation of these non-GAAP measures, see Appendix A.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ADJUSTED SG&A (NON-GAAP) RECONCILIATION
(in thousands)(1)
Three Months Ended | |||||||
2024 | 2023 | ||||||
Salaries and benefits | $ | 59,223 | $ | 68,981 | |||
General and administrative expenses | 44,569 | 57,644 | |||||
Total SG&A (GAAP) | 103,792 | 126,625 | |||||
Adjustments | |||||||
Stock-based compensation expense | (28,798 | ) | (38,617 | ) | |||
Non-recurring legal expenses and settlements | (54 | ) | (3,258 | ) | |||
Adjusted SG&A (non-GAAP) | $ | 74,940 | $ | 84,750 | |||
Total revenues | $ | 346,922 | $ | 321,992 | |||
Adjusted SG&A (non-GAAP) as a percentage of revenue | 22 | % | 26 | % | |||
(1) The table above includes non-GAAP measures. Non-GAAP financial measures are supplemental and should not be considered a substitute for financial information presented in accordance with GAAP. For a detailed explanation of these non-GAAP measures, see Appendix A.
Appendix A
Explanation of Non-GAAP Financial Measures
Non-GAAP Definitions
Adjusted EBITDA - A non-GAAP financial measure defined by us as net loss from continuing operations before depreciation and amortization, loss (gain) on investment, stock-based compensation expense, premium deficiency reserve benefit, restructuring costs, and non-recurring legal expenses and settlements. Adjusted EBITDA is a key measure used by our management team and the board of directors to understand and evaluate our operating performance and trends, to prepare and approve our annual budget and to develop short and long-term operating plans. In particular, we believe that the exclusion of the amounts eliminated in calculating Adjusted EBITDA provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that Adjusted EBITDA provides investors and others useful information to understand and evaluate our operating results in the same manner as our management and our board of directors.
Adjusted SG&A - A non-GAAP financial measure defined by us as total SG&A less stock-based compensation expense and non-recurring legal expenses and settlements. We believe that Adjusted SG&A provides management, investors, and others a useful view of our operating spend as it excludes non-cash, stock-based compensation and expenses related to investments that management believes do not reflect the Company's core operating expenses. We believe that Adjusted SG&A as a percentage of revenue is useful to management, investors, and others because it allows us to measure our operational leverage as revenue scales.
Source:
2024 GlobeNewswire, Inc., source