Clover Health Investments, Corp. (NASDAQ:CLOV) Q4 2024 Earnings Conference Call February 27, 2025 5:00 PM ET Company Participants Ryan Schmidt - Investor Relations Andrew Toy - Chief Executive Officer Peter Kuipers - Chief Financial Officer Conference Call Participants Jonathan Yong - UBS Tolf Cormanon - Craig Hallam Operator Ladies and gentlemen, good afternoon and welcome to the Clover Health Fourth Quarter and Full Year 2024 Earnings Conference Call. At this time, all participants are in a listen-only mo ...

Group 1 - Clover Health Investments, Corp. reported quarterly earnings of $0.02 per share, exceeding the Zacks Consensus Estimate of a loss of $0.07 per share, and showing improvement from a loss of $0.12 per share a year ago, resulting in an earnings surprise of 128.57% [1] - The company posted revenues of $336.96 million for the quarter ended December 2024, which was 2.02% below the Zacks Consensus Estimate, and a decrease from year-ago revenues of $510.25 million [2] - Clover Health Investments has surpassed consensus EPS estimates in all four of the last quarters, while topping consensus revenue estimates two times during the same period [2] Group 2 - The stock has increased approximately 37.1% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.3% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors to assess future stock performance [4] - The current consensus EPS estimate for the upcoming quarter is -$0.03 on revenues of $389.7 million, and -$0.07 on revenues of $1.53 billion for the current fiscal year [7] Group 3 - The Medical Info Systems industry, to which Clover Health Investments belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The current estimate revisions trend for Clover Health Investments is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

Fourth Quarter & Full-Year 2024 Earnings Conference Call February 27, 2025 LGTMs: Date: Andrew T. LGTM via email 2/26/25 Peter K. LGTM 2/26/25 Legal (Karen / Peter R.) 2/26/25 Accounting (#s review) 2/25/2025 Disclaimer This presentation and the accompanying oral presentation include forward-looking statements, including, without limitation, statements regarding future events and Clover Health Investments, Corp.'s ("Clover Health," "we," "our," or "us") expectations regarding Adjusted EBITDA, Adjusted Net i ...

Financial Performance - Full year 2024 GAAP Net loss from continuing operations improved by $164 million year-over-year, totaling a loss of $46 million[1] - Full year 2024 Adjusted EBITDA reached $70 million, an increase of $112 million year-over-year[1] - Total revenues for FY 2024 were $1.371 billion, an 8.8% increase from FY 2023[4] - Clover Health reported total revenues of $336.963 million for Q4 2024, a 7.4% increase from $312.385 million in Q4 2023[19] - Premiums earned, net for the year ended December 31, 2024, reached $1.344881 billion, compared to $1.235769 billion in 2023, reflecting an increase of 8.8%[19] - For the year ended December 31, 2024, Clover Health reported a net loss of $43,009 thousand, a significant improvement compared to a net loss of $213,361 thousand in 2023[21] - Adjusted EBITDA for the year ended December 31, 2024, was $70,091 thousand, compared to a loss of $41,555 thousand in 2023[27] - Total revenues for the year 2024 were $1,371,131 thousand, an increase from $1,260,543 thousand in 2023[25] Insurance Revenue and Membership Growth - Insurance revenue for Q4 2024 grew by 9% year-over-year to $331 million, and for the full year 2024, it reached $1.3 billion, also a 9% increase[2] - For full-year 2025, the company projects insurance revenue between $1.800 billion and $1.875 billion, representing a 37% growth year-over-year at the midpoint[6] - Average Medicare Advantage membership increased by 30% year-over-year, reaching between 103,000 and 107,000 for 2025[3] Expense Ratios and Claims - Insurance Benefits Expense Ratio (BER) improved to 82.8% in Q4 2024, down from 87.4% in Q4 2023[4] - The insurance benefits expense ratio (BER) for the year 2024 was 81.2%, an improvement from 86.5% in 2023[31] - The company incurred net medical claims of $243.044 million in Q4 2024, a slight decrease from $249.754 million in Q4 2023[19] - The insurance segment net loss for the year 2024 was $66,513 thousand, a reduction from a net loss of $199,508 thousand in 2023[23] Cash and Assets - Cash, cash equivalents, and investments totaled $437.6 million, a 4.9% increase from the previous year[4] - Clover Health's cash and cash equivalents increased to $194.543 million in 2024 from $116.407 million in 2023, representing a growth of 67%[17] - Clover Health's total assets increased to $580.742 million as of December 31, 2024, up from $570.671 million in 2023[17] - The total liabilities decreased to $239.599 million in 2024 from $284.277 million in 2023, indicating a reduction of approximately 15.7%[17] - Cash and cash equivalents at the end of the period increased to $194,543 thousand from $176,494 thousand at the end of 2023[21] - Net cash provided by operating activities from continuing operations for the year 2024 was $82,450 thousand, a turnaround from a cash used of $35,148 thousand in 2023[21] Company Strategy and Technology - The company plans to maintain strong profitability while investing in membership growth and Clover Assistant technology[2] - Clover Health's focus on technology, particularly the Clover Assistant platform, aims to enhance patient outcomes and reduce healthcare costs[14] Stock-Based Compensation - Stock-based compensation for the year 2024 was $114,331 thousand, down from $140,931 thousand in 2023[25] Definitions and Metrics - Adjusted EBITDA is defined as net loss from continuing operations before various expenses, providing a key measure for evaluating operating performance and trends[34] - Adjusted Net income (loss) from continuing operations excludes stock-based compensation and other non-recurring expenses, aiding in the assessment of financial performance[35] - Insurance Benefits Expense Ratio (BER) is calculated by dividing total insurance net medical expenses and quality improvements by premiums earned, offering insights into healthcare quality investments[36]

Full year 2024 GAAP Net loss from continuing operations improves by $164 million year-over-year Full year 2024 Adjusted EBITDA of $70 million, representing an increase of $112 million year-over-year Company well positioned to invest in membership growth and Clover Assistant technology, while maintaining strong profitability Issues full year 2025 guidance: Average Medicare Advantage membership of 103,000 - 107,000, representing 30% growth year-over-year at the midpointInsurance revenue between $1.800 billion ...

Company Overview - Clover Health Investments, Corp. is a physician enablement technology company focused on providing access to quality healthcare for Medicare recipients, particularly seniors who have historically faced challenges in accessing affordable healthcare [1] - The company's strategy is driven by its software platform, Clover Assistant, which aggregates patient data to support clinical decision-making and improve health outcomes through early identification and management of chronic diseases [1] Product and Services - Clover Health offers PPO and HMO Medicare Advantage plans across several states, with a particular emphasis on its flagship wide-network, high-choice PPO plans [1] - The company extends its data-driven technology platform to healthcare providers outside its Medicare Advantage plan through its subsidiary, Counterpart Health, aiming to enhance patient outcomes and reduce healthcare costs nationwide [1] Impact and Performance - Clover Health has published data showcasing the positive impact of its technology on Medication Adherence and the early identification and management of Diabetes and Chronic Kidney Disease [1] Investor Engagement - CFO Peter Kuipers will participate in the 2025 Jefferies Value-Based Healthcare Summit on March 10, 2025, and present at the 2025 Leerink Global Healthcare Conference on March 11, 2025 [2]

WILMINGTON, Del., Feb. 18, 2025 (GLOBE NEWSWIRE) -- Clover Health Investments, Corp. (Nasdaq: CLOV) (“Clover Health”), today announced that it will report fourth quarter and full year 2024 financial results after market close on Thursday, February 27, 2025. Management will host a conference call and webcast at 5:00 p.m. Eastern Time on February 27, 2025, to discuss Clover Health’s fourth quarter and full year 2024 business and financial results. Fourth Quarter and Full Year 2024 Conference Call and Webcast ...

Small deep value individual investor, with a modest private investment portfolio, split approx. 50%-50% between shares and call options. I have a B.Sc. in aeronautical engineering and over 6 years of experience as an engineering consultant in the aerospace sector. The latter statement is not relevant in any way whatsoever to my investment style, but I thought to add it for self-indulgent purposes. I have a contrarian investment style, highly risky, and often dealing with illiquid options. How illiquid? Well ...

WILMINGTON, Del., Feb. 05, 2025 (GLOBE NEWSWIRE) -- Counterpart Health, Inc. ("Counterpart"), an AI-powered physician enablement platform, today announced a strategic, multi-year agreement with Southern Illinois Healthcare (SIH), a regional leader in healthcare delivery and the largest health system in Southern Illinois. Counterpart is a subsidiary of Clover Health Investments, Corp. (NASDAQ:CLOV) ("Clover Health"). This partnership will enable SIH's care teams to excel in value-based care arrangements by e ...

Michael (Mike) Dion is an FP&A, Corporate Finance, and Small Business expert who spent the last 12 years working in the Fortune 100, building a startup's finance and accounting department, advising small businesses, and guiding non-profit organizations as a board member. He has finance experience across multiple industries, including Telecom, Media and Entertainment, Hospitality, and Construction. He founded F9 Finance, a website that helps Finance professionals accelerate their careers; and simplifies Fina ...