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Clover Health
🇺🇸 NASDAQ:CLOV
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Sep 30, 2022

Clover Health Q3 2022 Earnings Report

Reported strong third quarter results with significantly improved Insurance Medical Care Ratio.

Key Takeaways

Clover Health reported strong third quarter results, driven by improved Insurance Medical Care Ratio (MCR). The company is prioritizing profitability and expects to improve both Insurance and Non-Insurance MCRs from 2022 levels. They finished the quarter with $783 million in cash, cash equivalents, and investments.

Insurance MCR decreased significantly year-over-year to 86.3%.

Total revenue increased to $856.8 million from $427.2 million year-over-year.

The company is updating its 2022 full year guidance to include improved 2022 Insurance MCR range of 93% to 94%.

Clover intends to continue to grow Insurance business at above-market rates in 2023 but will moderate growth to prioritize profitability.

Total Revenue
$857M
Previous year: $427M
+100.6%
EPS
-$0.16
Previous year: -$0.08
+100.0%
Gross Profit
$17M
Previous year: -$9.26M
-283.8%
Cash and Equivalents
$783M
Previous year: $202M
+287.0%
Free Cash Flow
$101M
Previous year: -$45.3M
-323.7%
Total Assets
$1.56B
Previous year: $952M
+63.5%

Clover Health

Clover Health

Forward Guidance

For full-year 2022, Clover Health is updating its guidance. Total revenues are expected to be in the range of $3.2 billion to $3.4 billion. Insurance MCR is expected to be in the range of 93% - 94%. Adjusted SG&A (non-GAAP) is expected to be between $320 million and $330 million.

Positive Outlook

  • Insurance membership is expected to average 86,000 - 87,000, a growth rate of 29% - 30% as compared to the 2021 average.
  • Non-Insurance business is expected to be 165,000 - 170,000 aligned beneficiaries, compared to an average of 62,125 in 2021.
  • Total revenues are expected to be in the range of $3.2 billion to $3.4 billion.
  • Insurance revenue of $1.0 billion to $1.1 billion is projected.
  • Adjusted SG&A as a percentage of revenue (non-GAAP) is expected to be 9% - 10% compared to 18% in 2021.

Challenges Ahead

  • Significant developments related to COVID-19 could potentially impact expectations.
  • Historical utilization trends could potentially impact expectations.
  • Stock-based compensation expense cannot be reasonably calculated or predicted at this time without unreasonable efforts.
  • Adjusted SG&A (non-GAAP) is expected to be between $320 million and $330 million.
  • Non-Insurance MCR is expected to be improved versus 2021 levels.

Company Overview

Full financial data and analysis

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