Clover Health Q4 2020 Earnings Report
Key Takeaways
Clover Health reported Q4 2020 financial results, with total revenue reaching $166.2 million and a GAAP MCR of 109.3%. The company experienced a net loss of $81.6 million and an adjusted EBITDA loss of $63.4 million. Membership was 58,056 as of December 31, 2020, and lives under Clover Assistant management surpassed 32,400.
Total revenue for Q4 2020 reached $166.2 million, compared to $115.3 million in Q4 2019.
GAAP MCR for Q4 2020 was 109.3%, compared to 99.8% in Q4 2019.
Net loss for Q4 2020 was $81.6 million, compared to $78.7 million in Q4 2019.
Adjusted EBITDA loss for Q4 2020 was $63.4 million, compared to $59.1 million in Q4 2019.
Clover Health
Clover Health
Forward Guidance
Clover Health provided full year 2021 guidance, expecting Medicare Advantage membership to be in the range of 68,000 - 70,000 by December 31, 2021. Total revenues are expected to be in the range of $820 - $850 million, and Normalized MCR (Non-GAAP) for Medicare Advantage is expected to be in the range of 89% - 91%.
Positive Outlook
- 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.
- Total revenues are expected to be in the range of $820 - $850 million, inclusive of a preliminary estimate of approximately $30 to $50 million of revenue generated from Direct Contracting.
- CMS benchmark expenditures under management for Direct Contracting are expected to be in the range of $0.8 billion to $1.1 billion.
- Total Medicare spend under management, which includes revenues from the Medicare Advantage program plus the estimated CMS benchmark for Direct Contracting, is expected to be in the range of $1.6 - $1.9 billion.
- Normalized MCR (Non-GAAP) for Medicare Advantage is expected to be in the range of 89% - 91%.
Challenges Ahead
- MCR for Direct Contracting is expected to be approximately 100%, net of savings targets required by CMS.
- Operating costs are expected to be between $265 and $285 million and reflect the use of a portion of the proceeds from the Merger to make investments in marketing, network expansion and technology to support future growth. These estimates also include extraordinary or nonrecurring costs of approximately $25 million that relate to startup operations of subsidiaries and other one-time legal costs
- Net loss is expected to be in the range of $(210) - $(170) million.
- Adjusted EBITDA loss is expected to be in the range of $(190) - $(150) million.
- Loss per share (basic) in the range of $(0.52) - $(0.42).