Clover Health Investments, Corp. (CLOV) came out with a quarterly loss of $0.05 per share versus the Zacks Consensus Estimate of a loss of $0.07. This compares to loss of $0.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 28.57%. A quarter ago, it was expected that this company would post a loss of $0.18 per share when it actually produced a loss of $0.12, delivering a surprise of 33.33%.Over the last four quarters, the com ...

Financial Performance - Clover Health improved its 2024 guidance to target full-year Adjusted EBITDA profitability and believes it has sufficient capital for operating and growth needs[4] - The company's Q1 2024 Insurance MCR was 77.9% with 8% revenue growth[31] - Clover Health's Adjusted EBITDA improved year-over-year by $44.3 million to $6.8 million in Q1 2024, compared to ($37.5) million in Q1 2023[31] - Adjusted SG&A decreased 12% to $74.9 million in Q1 2024, compared to Q1 2023[31] - Net loss from continuing operations improved year-over-year by $56.5 million to ($23.2) million in Q1 2024, compared to ($79.7) million in Q1 2023[31] Outlook and Liquidity - Clover Health is targeting $1.30 billion - $1.35 billion in annual premiums and positive Adjusted EBITDA profitability of $10 million - $30 million for full-year 2024[26] - The company expects pro-forma year-end 2024 unregulated liquidity of between $145 million - $165 million[37] - Clover Health had unregulated liquidity of approximately $137 million at year-end 2023[37] Clover Assistant and Clover Home Care - Clover Health continues to focus and invest in its unique care management platform, Clover Assistant and Clover Home Care, to deliver an increasing impact and better care management for members[25] - Clover Assistant is designed to enable any provider to deliver consistent, high-quality care, allowing for wider network construction in a sustainable fashion[8] - Clover Home Care supplements community physicians to meet the needs of patients that are most at-risk[8]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ________________________________________ ________________________________________ FORM 10-Q ________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 Registrant's telephone number, including area code: (201) 432-2133 Securities registered pursuant to Section 12(b) of the Act: OR o TRANSITION REPORT PURSUANT TO ...

[Executive Summary & Business Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Highlights) Clover Health reported strong Q1 2024 financial results, exceeding expectations, and updated its full-year guidance towards profitability, while also authorizing a share repurchase program [First Quarter 2024 Performance Overview](index=1&type=section&id=First%20Quarter%202024%20Performance%20Overview) Clover Health reported strong financial results for Q1 2024, exceeding expectations and demonstrating significant progress towards profitability, with key improvements including a reduced GAAP net loss, positive Adjusted EBITDA, and improved Insurance MCR | Metric | Q1'24 | Q1'23 | Change (%) | | :------------------------------------------------------------------ | :--------- | :--------- | :----------- | | Total revenue | $346.9M | $322.0M | 7.7% | | GAAP Net loss from continuing operations | ($23.2M) | ($79.7M) | (70.9%) | | Adjusted EBITDA (non-GAAP) | $6.8M | ($37.5M) | Favorable* | | Insurance revenue | $341.7M | $317.1M | 7.8% | | Insurance MCR | 77.9% | 86.6% | (870 bps) | | SG&A | $103.8M | $126.6M | (18.0%) | | Adjusted SG&A (non-GAAP) | $74.9M | $84.8M | (11.7%) | [Updated Full-Year 2024 Financial Guidance](index=1&type=section&id=Updated%20Full-Year%202024%20Financial%20Guidance) The company has improved its full-year 2024 financial guidance, now targeting Adjusted EBITDA profitability and higher insurance revenue, while also narrowing the Insurance MCR range | Metric | Previous Guidance | Current Guidance | | :------------------------- | :---------------------------- | :---------------------------- | | Insurance revenue | $1.25 billion - $1.30 billion | $1.30 billion - $1.35 billion | | Insurance MCR | 79% - 83% | 79% - 81% | | Adjusted SG&A (Non-GAAP) | $270 million - $280 million | $270 million - $280 million | | Adjusted EBITDA (Non-GAAP) | ($20) million - $20 million | $10 million - $30 million | [Strategic Initiatives & Share Repurchase Program](index=1&type=section&id=Strategic%20Initiatives%20%26%20Share%20Repurchase%20Program) Clover Health is focused on leveraging its AI-driven care management platform, Clover Assistant, to thrive in the Medicare Advantage PPO market, and the Board of Directors has also authorized a new share repurchase program - The Board of Directors authorized a share repurchase program of up to **$20 million** of Class A Common Stock over the next two years[12](index=12&type=chunk) - Clover's strategy is built on its care management platform, Clover Assistant, which uses differentiated AI technology and asset-light wraparound care services (Clover Home Care) to power a unique PPO-first offering[13](index=13&type=chunk) - The company aims to empower physicians with software to deliver better care at lower costs through earlier identification and management of disease[13](index=13&type=chunk) [Lives Under Clover Management](index=2&type=section&id=Lives%20under%20Clover%20Management) The number of insurance members under Clover Management decreased slightly year-over-year as of March 31, 2024 | Metric | March 31, 2024 | March 31, 2023 | | :---------------- | :------------- | :------------- | | Insurance members | 79,527 | 83,794 | [First Quarter 2024 Financial Statements](index=5&type=section&id=First%20Quarter%202024%20Financial%20Statements) This section presents Clover Health's consolidated statements of operations, balance sheets, and operating segment data for the first quarter of 2024 [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) The consolidated statements of operations show a significant reduction in net loss from continuing operations for Q1 2024 compared to Q1 2023, driven by increased revenues and decreased operating expenses, particularly in net medical claims and SG&A | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :-------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | | Premiums earned, net | $341,722 | $317,086 | | Other income | $5,200 | $4,906 | | **Total revenues** | **$346,922** | **$321,992** | | Net medical claims incurred | $265,162 | $274,789 | | Salaries and benefits | $59,223 | $68,981 | | General and administrative expenses | $44,569 | $57,644 | | **Total operating expenses** | **$369,625** | **$401,690** | | Loss from continuing operations | ($22,703) | ($79,698) | | Net loss from continuing operations | ($23,170) | ($79,698) | | Net income from discontinued operations | $4,000 | $7,092 | | **Net loss** | **($19,170)** | **($72,606)** | | Basic and diluted net loss per share | ($0.05) | ($0.17) | [Consolidated Balance Sheets: Selected Metrics](index=5&type=section&id=Consolidated%20Balance%20Sheets%3A%20Selected%20Metrics) Clover Health maintained a strong liquidity position, with an increase in cash and investments from December 31, 2023, to March 31, 2024, alongside growth in total assets and stockholders' equity | Selected Balance Sheet Data (in thousands) | March 31, 2024 | December 31, 2023 | | :--------------------------------------------------- | :------------- | :---------------- | | 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 | [Operating Segments](index=7&type=section&id=Operating%20Segments) The Insurance segment generated the majority of premiums earned and contributed significantly to gross profit, while the Corporate/Other segment also showed a positive gross profit contribution | Metric (Three Months Ended March 31, 2024, in thousands) | Insurance | Corporate/Other | Eliminations | Consolidated Total | | :------------------------------------------------------- | :--------- | :-------------- | :----------- | :----------------- | | Premiums earned, net | $341,722 | — | — | $341,722 | | Other income | $3,727 | $15,681 | ($14,208) | $5,200 | | Net medical claims incurred | $266,076 | $4,938 | ($5,852) | $265,162 | | Gross profit (loss) | $79,373 | $59,208 | ($56,821) | $81,760 | [Non-GAAP Financial Measures](index=8&type=section&id=Non-GAAP%20Financial%20Measures) This section provides reconciliations and explanations for Clover Health's non-GAAP financial measures, including Adjusted EBITDA and Adjusted SG&A [Adjusted EBITDA Reconciliation](index=8&type=section&id=Adjusted%20EBITDA%20Reconciliation) Clover Health's Adjusted EBITDA significantly improved to a positive $6.8 million in Q1 2024 from a loss of $37.5 million in Q1 2023, after adjusting for non-cash and non-recurring items from GAAP net loss | Metric (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 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)** | [Adjusted SG&A Reconciliation](index=9&type=section&id=Adjusted%20SG%26A%20Reconciliation) Adjusted SG&A decreased by 11.7% year-over-year, reaching $74.9 million in Q1 2024, and improved as a percentage of total revenues, reflecting better operational leverage after excluding stock-based compensation and non-recurring legal expenses | Metric (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 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% | [Explanation of Non-GAAP Financial Measures](index=10&type=section&id=Explanation%20of%20Non-GAAP%20Financial%20Measures) Clover Health uses non-GAAP financial measures like Adjusted EBITDA and Adjusted SG&A to provide a clearer view of its core operating performance, excluding non-cash and non-recurring items that management believes do not reflect ongoing business expenses - Adjusted EBITDA is defined 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[30](index=30&type=chunk) - Adjusted SG&A is defined as total SG&A less stock-based compensation expense and non-recurring legal expenses and settlements[47](index=47&type=chunk) - These non-GAAP measures are used by management and the board to evaluate operating performance, prepare budgets, and develop operating plans, providing useful information for period-to-period comparisons[30](index=30&type=chunk)[47](index=47&type=chunk) [Company Information & Events](index=3&type=section&id=Company%20Information%20%26%20Events) This section provides an overview of Clover Health, details on investor events, forward-looking statement disclaimers, and contact information [About Clover Health](index=4&type=section&id=About%20Clover%20Health) Clover Health is a physician enablement technology company focused on providing access to quality healthcare for Medicare beneficiaries, particularly those historically underserved, through its AI-powered Clover Assistant platform - Clover Health (Nasdaq: CLOV) is a physician enablement technology company committed to bringing access to great healthcare to everyone on Medicare[9](index=9&type=chunk)[34](index=34&type=chunk) - The company's strategy is powered by its software platform, Clover Assistant, designed to aggregate patient data to support clinical decision-making and improve health outcomes[34](index=34&type=chunk) [Earnings Conference Call & Investor Events](index=3&type=section&id=Earnings%20Conference%20Call%20%26%20Investor%20Events) Clover Health hosted an earnings conference call on May 7, 2024, to discuss Q1 2024 results and will participate in upcoming investor conferences in May 2024 - A conference call to discuss Q1 2024 financial results was held on Tuesday, May 7, at 5:00 PM Eastern Time[17](index=17&type=chunk) - Upcoming investor events include the Bank of America 2024 Healthcare Conference (May 15, 2024) and the 2024 Leerink Partners Healthcare Crossroads Conference (May 29, 2024)[32](index=32&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements regarding future performance, financial condition, and business plans, which are subject to known and unknown risks and uncertainties that could cause actual results to differ materially - Forward-looking statements include expectations regarding future events, results of operations, financial condition, market size, business strategy, and plans, including updated 2024 guidance and the share repurchase program[32](index=32&type=chunk) - These statements are not guarantees of future performance and are subject to various risks and uncertainties, including those detailed in the company's SEC filings[32](index=32&type=chunk) [Investor Relations & Press Contacts](index=4&type=section&id=Investor%20Relations%20%26%20Press%20Contacts) Contact information is provided for investor relations and press inquiries - Investor Relations Contact: Ryan Schmidt, investors@cloverhealth.com[20](index=20&type=chunk)[35](index=35&type=chunk) - Press Contact: Andrew Still-Baxter, press@cloverhealth.com[20](index=20&type=chunk)[35](index=35&type=chunk)

For many investors, the concept of putting money into healthcare stocks to sell them at a future date might seem like a safe investment. After all, almost every person in the United States is dependent upon the corporatized healthcare system in some way or another. The only real exception to this paradigm is the U.S. military and its TRICARE insurance program for all of its servicemembers and their families.As such, the common perception in the investment world is that healthcare stocks tend to represent mo ...

FRANKLIN, Tenn., April 22, 2024 (GLOBE NEWSWIRE) -- Clover Health Investments, Corp. (NASDAQ:CLOV) ("Clover," "Clover Health" or the "Company"), a physician enablement technology company, today announced the appointment of Peter Kuipers as Chief Financial Officer ("CFO"), effective as of the day after the filing of the Company's Quarterly Report on Form 10-Q for the quarter-ended March 31, 2024. With a wealth of experience and a proven track record in financial management, Mr. Kuipers will drive strategic f ...

Legal and Regulatory Risks - The company is subject to various litigation matters that could adversely affect its financial position and operations[324]. - The company faces increased government scrutiny and potential audits related to compliance with risk adjustment practices and other regulations, which could lead to significant liabilities[326]. - The company must comply with complex state and federal regulations, and failure to do so could result in significant liabilities and operational challenges[343]. - The company is exposed to risks related to medical liability claims, which could incur significant expenses and adversely affect its financial condition[338]. - The company is subject to investigations and litigation, which could result in significant costs and divert management's attention from core business operations[356]. - The company is at risk of being found in violation of laws governing corporate practice of medicine and fee-splitting, which could lead to significant legal and operational consequences[364]. - Non-compliance with HIPAA regulations could result in significant penalties, including civil and criminal sanctions[6]. - The company is subject to scrutiny under various federal and state laws regarding the handling of personally identifiable information (PII) and protected health information (PHI)[5]. Financial Performance and Funding - Significant portions of the company's revenues are derived from programs funded by the U.S. federal government, making it vulnerable to funding reductions[327]. - The Medicare Part A Hospital Insurance Trust Fund is estimated to be exhausted in 2026, which could significantly impact the company's revenues and profitability[329]. - Medicare Advantage premiums historically account for a substantial portion of total revenues, with profitability dependent on government funding levels[361]. - The company derives substantially all of its total revenues from Medicare Advantage premiums and expects to continue this trend in the future[393]. - The company has incurred net losses for the years ended December 31, 2023, 2022, and 2021, leading to the exclusion of potentially dilutive securities from the computation of diluted net loss per share[596]. - The company reported a total stockholders' equity of $286,394,000 as of December 31, 2023, down from $356,887,000 in 2022, indicating a decrease of approximately 19.6%[594]. - The company had an accumulated deficit of $2,159,794,000 as of December 31, 2023, compared to $1,946,433,000 in 2022, reflecting an increase in the deficit of about 10.9%[594]. - The company does not intend to pay dividends for the foreseeable future[425]. Operational Challenges - The company faces challenges in attracting and retaining qualified personnel due to a limited talent pool in the healthcare market, which could hinder future growth prospects[350]. - Current labor market conditions include high attrition and wage inflation, exacerbating the competition for hiring qualified employees[351]. - The company relies on third-party providers for essential technology services, and any disruption in these services could negatively impact operations[344]. - The company relies on third-party service providers for technology-related services and data management, which poses risks of data security incidents that could adversely affect business operations[348]. - Changes in healthcare laws and regulations may require costly modifications to the company's technology and practices, adversely affecting its business[330]. Compliance and Governance - Compliance with complex healthcare regulations is costly and failure to comply could result in civil and criminal penalties, adversely affecting business operations[369]. - The company is subject to various state regulations requiring maintenance of minimum levels of statutory capital, which could increase as the company expands its plan offerings[371]. - The company must comply with numerous federal and state privacy laws, including the CCPA, which may impose additional compliance costs and operational changes[375]. - The company is required to maintain effective disclosure controls and internal control over financial reporting as per the Sarbanes-Oxley Act[9]. - The company’s internal controls over financial reporting may be inadequate, potentially leading to restatements of financial statements and loss of investor confidence[392]. Market and Stock Performance - The market prices and trading volume of the company's Class A common stock experienced extreme volatility during 2022, which may return[387]. - The closing bid price of Class A common stock has been below $1.00 on multiple occasions, raising the risk of delisting from NASDAQ[8]. - The Class B common stock holders control 70.7% of the voting power, which may limit the influence of other stockholders on corporate matters[426]. - The company has a dual class stock structure that may negatively impact the trading price of its Class A common stock[427]. - The company has options outstanding that could result in the issuance of 24,041,753 shares of Class B common stock, potentially impacting the market price of Class A common stock[7]. Intellectual Property and Technology - The company has a risk of losing the right to use certain intellectual property, which could negatively affect its business operations[381]. - The company may face increased competition and potential litigation related to intellectual property claims, which could materially affect its operations[11]. - The company relies on a combination of trademark, copyright, patent, and trade secret protections to safeguard its intellectual property rights[10]. - The company’s Clover Assistant platform may be subject to FDA regulation if deemed a medical device, which could adversely affect its business and financial condition[370]. - The company has focused on technology deployment through its Clover Assistant platform to enhance care for seniors[601]. - The company aims to empower physicians in managing chronic diseases early, aligning with its strategic focus[601]. Financial Metrics and Cash Flow - Net loss for 2023 was $213,361, compared to a loss of $339,567 in 2022, representing a 37% improvement year-over-year[599]. - Cash flows from operating activities showed a net cash used of $115,871 in 2023, down from $286,348 in 2022, indicating a 60% reduction in cash outflow[599]. - Total stock-based compensation expense was $140,931 in 2023, slightly down from $164,305 in 2022, reflecting a 14% decrease[599]. - Net cash provided by investing activities was $140,013 in 2023, a significant increase from $95,133 in 2022, marking a 47% rise[599]. - The company reported a gain on investment of $4,726 in 2023, compared to a loss of $9,217 in 2022, indicating a positive turnaround[599]. - Purchases of short-term investments totaled $175,567 in 2023, down from $369,396 in 2022, showing a 52% decrease[599]. - The company’s total liabilities and stockholders' equity amounted to $570,671,000 as of December 31, 2023[594]. - The company’s additional paid-in capital increased to $2,461,238,000 in 2023 from $2,319,157,000 in 2022, representing a growth of approximately 6.1%[594].

Clover Health Fourth Quarter and Full Year 2023 - Earnings Results Disclaimer | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------------------------|-------|-------|-----------------------------|-------|-------|-------|-----------------------------|-------| | | | | | | | | | | | | | In millions, except MCR | | | | | | | | | | | Revenue | | | | | | | | | | | Gross Profit | | | Fourth Quarter | | | | Full-Year | | | | | | | Revenue +12% MCR -1,000 bps | | | | Revenue +14% MCR -1,060 ...

Clover Health Investments, Corp. (NASDAQ:CLOV) Q4 2023 Earnings Conference Call March 12, 2024 5:00 PM ET Company Participants Ryan Schmidt - IR Andrew Toy - CEO Terrence Ronan - Interim CFO Conference Call Participants Jason Cassorla - Citi Richard Close - Canaccord Genuity Operator Ladies and gentlemen, good afternoon and welcome to the Clover Health Fourth Quarter and Full Year 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will foll ...

Clover Health Reports Fourth Quarter and Full Year 2023 Financial Results; Delivers Continued Momentum in Financial Performance and Provides Full-Year 2024 Guidance Full-year 2023 Insurance MCR improved to 81.2% and fourth quarter MCR to 82.4% Company improves full-year 2023 Net Loss by $126.2 million and full-year Adjusted EBITDA by $245.7 million year-over-year Issues 2024 guidance with Insurance MCR range of 79% - 83% and up to $20 million of Adjusted EBITDA profitability at the high end of the range FRA ...