Clover Health Investments(US:CLOV)2025-02-27 21:07Financial Performance - Full year 2024 GAAP Net loss from continuing operations improved by $164 million year-over-year, totaling a loss of $46 million[1] - Full year 2024 Adjusted EBITDA reached $70 million, an increase of $112 million year-over-year[1] - Total revenues for FY 2024 were $1.371 billion, an 8.8% increase from FY 2023[4] - Clover Health reported total revenues of $336.963 million for Q4 2024, a 7.4% increase from $312.385 million in Q4 2023[19] - Premiums earned, net for the year ended December 31, 2024, reached $1.344881 billion, compared to $1.235769 billion in 2023, reflecting an increase of 8.8%[19] - For the year ended December 31, 2024, Clover Health reported a net loss of $43,009 thousand, a significant improvement compared to a net loss of $213,361 thousand in 2023[21] - Adjusted EBITDA for the year ended December 31, 2024, was $70,091 thousand, compared to a loss of $41,555 thousand in 2023[27] - Total revenues for the year 2024 were $1,371,131 thousand, an increase from $1,260,543 thousand in 2023[25] Insurance Revenue and Membership Growth - Insurance revenue for Q4 2024 grew by 9% year-over-year to $331 million, and for the full year 2024, it reached $1.3 billion, also a 9% increase[2] - For full-year 2025, the company projects insurance revenue between $1.800 billion and $1.875 billion, representing a 37% growth year-over-year at the midpoint[6] - Average Medicare Advantage membership increased by 30% year-over-year, reaching between 103,000 and 107,000 for 2025[3] Expense Ratios and Claims - Insurance Benefits Expense Ratio (BER) improved to 82.8% in Q4 2024, down from 87.4% in Q4 2023[4] - The insurance benefits expense ratio (BER) for the year 2024 was 81.2%, an improvement from 86.5% in 2023[31] - The company incurred net medical claims of $243.044 million in Q4 2024, a slight decrease from $249.754 million in Q4 2023[19] - The insurance segment net loss for the year 2024 was $66,513 thousand, a reduction from a net loss of $199,508 thousand in 2023[23] Cash and Assets - Cash, cash equivalents, and investments totaled $437.6 million, a 4.9% increase from the previous year[4] - Clover Health's cash and cash equivalents increased to $194.543 million in 2024 from $116.407 million in 2023, representing a growth of 67%[17] - Clover Health's total assets increased to $580.742 million as of December 31, 2024, up from $570.671 million in 2023[17] - The total liabilities decreased to $239.599 million in 2024 from $284.277 million in 2023, indicating a reduction of approximately 15.7%[17] - Cash and cash equivalents at the end of the period increased to $194,543 thousand from $176,494 thousand at the end of 2023[21] - Net cash provided by operating activities from continuing operations for the year 2024 was $82,450 thousand, a turnaround from a cash used of $35,148 thousand in 2023[21] Company Strategy and Technology - The company plans to maintain strong profitability while investing in membership growth and Clover Assistant technology[2] - Clover Health's focus on technology, particularly the Clover Assistant platform, aims to enhance patient outcomes and reduce healthcare costs[14] Stock-Based Compensation - Stock-based compensation for the year 2024 was $114,331 thousand, down from $140,931 thousand in 2023[25] Definitions and Metrics - Adjusted EBITDA is defined as net loss from continuing operations before various expenses, providing a key measure for evaluating operating performance and trends[34] - Adjusted Net income (loss) from continuing operations excludes stock-based compensation and other non-recurring expenses, aiding in the assessment of financial performance[35] - Insurance Benefits Expense Ratio (BER) is calculated by dividing total insurance net medical expenses and quality improvements by premiums earned, offering insights into healthcare quality investments[36]