CLOV Stock Rises as Q1 Earnings Beat Estimates, Revenues Up Y/Y

Core Insights - Clover Health Investments, Corp. reported breakeven earnings for Q1 2025, an improvement from a loss of 5 cents in the same period last year, and surpassed the Zacks Consensus Estimate of a loss of 7 cents [1] - The company achieved revenues of $462.3 million, reflecting a year-over-year increase of 33.3%, although it fell short of the Zacks Consensus Estimate by 3.1% [2] Revenue Breakdown - Insurance revenues for Q1 2025 reached $456.9 million, marking a 33.7% increase year-over-year, driven by a 30% rise in Medicare Advantage membership and strong member retention [3] - Other income contributed $5.4 million in revenues, up 4.3% compared to the same quarter last year [4] Operational Performance - Net medical claims rose 33.3% year-over-year to $353.4 million, while total operating expenses increased by 25.4% to $463.6 million [5] - The company reported a total operating loss of $1.3 million, significantly improved from an adjusted operating loss of $22.7 million in the prior-year quarter [5] Financial Position - Clover Health ended Q1 2025 with cash and cash equivalents of $155.4 million, down from $194.5 million at the end of 2024 [6] - Net cash used in operating activities from continuing operations was $16.3 million, compared to net cash provided of $25.9 million a year ago [6] 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 [7] - The Insurance Benefit Expense Ratio (BER) is expected to range from 87% to 88%, with average Medicare Advantage membership projected between 103,000 and 107,000, suggesting a 30% year-over-year growth at the midpoint [8] Strategic Initiatives - The company emphasizes home care as a central strategy, with Clover Care Services providing personalized in-home support, particularly for high-risk members [12] - Clover Assistant technology is being scaled beyond its own plans, promising a growing stream of high-margin SaaS revenues through Counterpart Health [13] Market Performance - Shares of Clover Health rose 2.1% in after-hours trading following the quarterly performance and better-than-expected revenue guidance for 2025 [10] - Year-to-date, the company's shares have increased by 6.4%, compared to the industry's growth of 8.5% [10]