8 1 2 | --- | --- | --- | --- | --- | |--------------------------------------------------------|-------|-----------------------------------|-------|-----------------| | Net loss: | S | September 30, \n2023 \n(41,469) S | | 2022 \n(75,489) | | Adjustments | | | | | | Interest expense | | l | | 404 | | Amortization of notes and securities discount | | 一 | | | | Depreciation and amortization | | 557 | | 616 | | Gain on investment | | 一 | | 980 | | Stock-based compensation expense | | 33,070 | | 42,641 | | Prem ...

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS • our expectations regarding results of operations, financial condition, and cash flows; • our expectations regarding the development and management of our Insurance and Non-Insurance businesses; • our ability to successfully enter new service markets and manage our operations; • anticipated trends and challenges in our business and in the markets in which we operate; • our ability to effectively manage our beneficiary base and provider network; • our abi ...

Health Scott Leffler Chief Financial Officer 4 Clover Health Second Quarter 2023 - Earnings Results Disclaimer 3 Financial Overview ● Q2 2023 revenue and MCR improvement driven by continued operational enhancements, a balanced plan design, clinical initiatives, and improved PPO Star rating 6 111.0% 107.9% 102.5% 102.8% 96.4% 92.4% 92.1% 86.3% 86.6% 83% - 85% 77.2% Q1'21 Q2'21 Q2'22 Q3'22 Q2*23 Q3'21 Q4'21 Q1'22 Q4'22 Q1'23 FY'23 Guidance 7 8 (1) Adjusted EBITDA is a non-GAAP financial measure. Please refer ...

Clover Health Investments, Corp. (NASDAQ:CLOV) Q2 2023 Earnings Conference Call August 8, 2023 5:00 PM ET Company Participants Andrew Toy - CEO Scott Leffler - CFO Ryan Schmidt - IR Conference Call Participants Benjamin Rossi - Citigroup Adam Ron - Bank of America Merrill Lynch Richard Close - Canaccord Genuity Operator Ladies and gentlemen, good afternoon, and welcome to the Clover Health Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and- ...

________________________________________ Title of each class Trading Symbol(s) Name of each exchange on which registered Class A Common Stock, par value $0.0001 per share CLOV The NASDAQ Stock Market LLC For the quarterly period ended June 30, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-39252 ________________________________________ Registrant's telephone number, including area code: (201) 432-2133 Indicate by check mark whet ...

Financial Data and Key Metrics Changes - Insurance revenue grew 14% to $317 million in Q1 2023, while Non-Insurance revenue decreased to $206 million due to a strategic focus on a narrower group of participant providers [2][5] - Adjusted SG&A for Q1 was $86 million, a minimal increase from Q1 2022, driven by a new rewards program but offset by savings in other areas [3] - The company ended Q1 with total cash, cash equivalents, and investments of $635 million on a consolidated basis [4] - Adjusted EBITDA guidance improved to a range of negative $125 million to negative $175 million, with a significant reduction in adjusted EBITDA loss from $71 million in Q1 2022 to $30 million in Q1 2023 [21][73] Business Line Data and Key Metrics Changes - The Insurance segment's MCR improved to 86.6% from 96.4% in Q1 of the previous year, driven by operational enhancements and a favorable member mix [12][71] - Non-Insurance segment MCR was 96.1%, an improvement from 99.8% in the prior year, although it included favorable prior period development [18][69] Market Data and Key Metrics Changes - The company received an updated view of its aligned beneficiary count from CMS, which was slightly below initial estimates, potentially impacting revenue but may be offset by other program factors [49] - The company anticipates limited effects from recent CMS changes around MA risk adjustment in 2024, believing its wide network model insulates it from exposure to overused codes [15] Company Strategy and Development Direction - The company is focused on profitability, member retention, and operational efficiencies, with a clear roadmap to achieve its goals [47][66] - Clover Home Care is seen as a significant initiative, aiming to provide personalized care at home, with plans for future expansion beyond New Jersey [46][70] - The partnership with UST HealthProof is expected to enhance operational capabilities and economies of scale [68] Management's Comments on Operating Environment and Future Outlook - Management noted that the COVID environment has stabilized, with no significant changes expected in utilization patterns [24][25] - The company is optimistic about achieving positive adjusted EBITDA in 2024, driven by operational efficiencies and cost reduction initiatives [67] - Management emphasized the transformative potential of Clover Assistant in improving physician capabilities and patient care [30][90] Other Important Information - The company plans to record restructuring charges of $7 million to $9 million in the first half of 2023, which will be adjustments in non-GAAP measures [73] - The first quarter saw an unusual working capital effect that temporarily elevated cash by about $108 million, expected to normalize in Q2 [51] Q&A Session Summary Question: What did you see in the quarter regarding improved MLR and COVID headwinds? - Management indicated that the COVID environment has stabilized, with no significant changes noted compared to the previous year [24][25] Question: Is the lack of benefits from UST initiatives in 2023 due to contract timelines or logistics? - Management clarified that the implementation timeline for moving operations to UST is complex, targeting early 2024 for most work streams [26]

________________________________________ For the transition period from ________ to ________ Clover Health Investments, Corp. (Exact Name of Registrant as Specified in its Charter) ________________________________________ Delaware 98-1515192 (State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.) Registrant's telephone number, including area code: (201) 432-2133 Trading If an emerging growth company, indicate by check mark if the registrant has elected not to use t ...

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Financial Data and Key Metrics Changes - The Insurance MCR improved to 92.4% in Q4 2022 from 102.8% in Q4 2021, with a full year 2022 MCR of 91.8%, significantly better than 106% in 2021 [7][24][19] - Non-Insurance revenue grew 172% to $623 million in Q4 2022 and 256% to $2.38 billion for the full year 2022 [8][9] - Adjusted EBITDA for the year was approximately negative $298 million, an improvement from a loss of $344 million in the prior year [9][25] - The company expects 2023 insurance revenue to grow to between $1.15 billion and $1.2 billion, targeting an Insurance MCR of 89% to 91% [10][4] Business Line Data and Key Metrics Changes - Insurance revenue grew 34% to $270 million in Q4 2022 and 36% to $1.085 billion for the full year 2022, driven primarily by member growth [24][19] - Non-Insurance MCR improved to 103.4% for the full year 2022 from 105.7% in 2021, with a focus on reducing the number of participating physicians for 2023 [21][24] Market Data and Key Metrics Changes - Clover Home Care serviced over 3,300 members in 2022, contributing to higher member retention and satisfaction [6] - The company plans to increase its in-home practice panel to approximately 4,000 members in 2023, aiming to manage over $150 million in MA plan medical expenses [22] Company Strategy and Development Direction - The company emphasizes profitability over growth, expecting this strategic shift to position it for success in 2023 [4] - Clover Assistant is highlighted as a key differentiator, enabling early identification and management of chronic diseases, which aligns with CMS's proposed adjustments to Medicare Advantage [28][40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the favorable performance trends and the impact of Clover Assistant on business operations [19][20] - The company anticipates a pivotal year in 2023, focusing on delivering shareholder value and achieving positive cash flows [39][40] Other Important Information - The company ended 2022 with $555 million in cash and investments, indicating a healthy liquidity profile [26] - Management noted that the overall SG&A expenses are expected to remain flat despite a significant revenue decline, with elevated SG&A typically seen in Q1 and Q4 due to broker commissions and marketing costs [15][43] Q&A Session Summary Question: Membership growth for 2023 and its impact on revenue guidance - Management indicated that membership on the insurance side is expected to be in line with the beginning of 2022, with approximately 55,000 aligned beneficiaries for the Non-Insurance side [41][42] Question: Drivers behind SG&A expenses despite revenue decline - Management explained that SG&A infrastructure is not significantly variable and remains flat due to the nature of the business [43] Question: Cash burn relative to EBITDA - Management stated that cash burn largely approximates EBITDA performance, with expectations for cash effects from the Non-Insurance line to manifest in Q3 2023 [46] Question: Impact of CMS coding changes on the business - Management believes that Clover Assistant's focus on diagnosis and care management will mitigate the impact of CMS changes compared to other plans [48][49]

These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in the risk factors set forth in Clover Health's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC"), including the Risk Factors section therein, and in our other filings with the SEC. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this presentation may not occur and actu ...