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Jun 30, 2021
Clover Health Q2 2021 Earnings Report
Reported financial results for the second quarter of 2021.
Key Takeaways
Clover Health's Q2 2021 revenue increased by 140% year-over-year to $412 million, driven by the launch of Direct Contracting. Lives under Clover Management nearly doubled to approximately 129,000. The Clover Assistant is on track to manage over $1 billion of annualized revenue.
Total revenue was $412.5 million, up 140% year-over-year.
Lives under Clover Management nearly doubled from the first quarter to approximately 129,000.
Clover Assistant has approximately 95,000 lives under management and is on pace to manage over $1 billion of annualized revenue.
GAAP net loss was $(317.6) million, impacted by a non-cash loss of $134.5 million relating to the change in the fair value of public and private placement warrants.
Clover Health
Clover Health
Forward Guidance
For full year 2021, Clover Health expects total revenues to be in the range of $1.4 billion to $1.5 billion, Medicare Advantage membership to be in the range of 68,000 - 70,000 by December 31, 2021, Normalized MCR for Medicare Advantage to be in the range of 94% - 97%, Adjusted Operating Expenses to be between $250 and $270 million, Adjusted Operating Expenses as a percentage of revenue to be 16% in the second half of 2021, and Normalized Adjusted EBITDA loss to be in the range of $(250) - $(210) million.
Positive Outlook
- Total revenues are expected to be in the range of $1.4 billion to $1.5 billion.
- MA revenue of $760 million to $790 million
- Medicare Direct Contracting revenue of $650 million to $700 million.
- Medicare Advantage membership is expected to be in the range of 68,000 - 70,000 by December 31, 2021, a growth rate of 17% - 21% as compared to year end 2020.
- Normalized MCR (Non-GAAP) for Medicare Advantage is expected to be in the range of 94% - 97%.
Challenges Ahead
- Adjusted Operating Expenses (Non-GAAP) is expected to be between $250 and $270 million.
- Adjusted Operating Expenses (Non-GAAP) as a percentage of revenue is expected to be 16% in the second half of 2021 compared to 21% in the first half of 2021 and 22% in full year 2020.
- Normalized Adjusted EBITDA loss (Non-GAAP) is expected to be in the range of $(250) - $(210) million.
- The Company expects the number of aligned beneficiaries to remain roughly flat for the remainder of 2021.
- Excludes gross profit or loss from Direct Contracting, reflecting the fact that we do not yet have sufficient claims data to prepare a “normalized” result for the Direct Contracting segment.