Clover Health Investments(US:CLOV) ZACKS·2025-02-28 15:40Core Insights - Clover Health Investments, Corp. reported a narrower loss per share of 4 cents for Q4 2024, compared to a loss of 14 cents in the same period last year, beating the Zacks Consensus Estimate of a loss of 7 cents [1] - The company’s total revenues for Q4 2024 were $337 million, reflecting a year-over-year increase of 7.9%, although it fell short of the Zacks Consensus Estimate by 2% [2] - For the full year 2024, Clover Health's revenues rose 8.8% year-over-year to $1.34 billion, with a loss per share of 9 cents compared to a loss of 44 cents in the previous year [3] Revenue Breakdown - Insurance revenues in Q4 2024 reached $330.7 million, up 9.1% year-over-year, driven by strong member retention and cohort management [4] - The Insurance Benefits Expense Ratio (BER) was 82.8%, a contraction of 460 basis points year-over-year, while the Medical Care Ratio (MCR) was 73.5%, contracting 890 basis points year-over-year [5] - Other income generated revenues of $6.3 million, down 32.5% year-over-year [5] Operational Performance - Net medical claims decreased by 2.7% year-over-year to $243 million, while salaries and benefits expenses decreased by 3.7% to $62.7 million [6] - General and administrative expenses rose by 22.4% to $52.3 million, leading to total operating expenses of $358.4 million, which declined by 4.6% year-over-year [6] - The total operating loss was $21.4 million, significantly improved from an adjusted operating loss of $63.1 million in the prior-year quarter [6] Financial Position - Clover Health ended Q4 2024 with cash and cash equivalents of $194.5 million, down from $289.7 million at the end of Q3 2024 [7] - Cumulative net cash provided by operating activities from continuing operations was $34.8 million, compared to a net cash used of $144.7 million a year ago [7] Future Guidance - For 2025, Clover Health estimates Insurance revenues to be between $1.8 billion and $1.875 billion, indicating a potential 37% year-over-year growth at the midpoint [9] - The company expects the Insurance BER to be in the range of 87-88%, with average Medicare Advantage membership projected between 103,000 and 107,000, suggesting a 30% year-over-year growth at the midpoint [9] Strategic Developments - Clover Health reported a 27% year-over-year increase in Medicare Advantage membership and a 95% retention rate, indicating competitive advantages and improved star ratings [12] - The company plans to expand services and integrate Clover Assistant to enhance outcomes and cost control [12] - The launch of Counterpart Health, a software division, is expected to provide high-margin SaaS revenues, with initial external partnerships already signed [13]