Clover Health Reports Fourth Quarter and Full Year 2024 Results; Provides Full Year 2025 Guidance
Clover Health (CLOV) reported significant financial improvements for 2024, with full-year Insurance revenue growing 9% to $1.3 billion. The company achieved an Adjusted EBITDA profit of $70 million, marking a $112 million increase year-over-year.
Key financial metrics show substantial progress: GAAP Net loss from continuing operations improved by $164 million year-over-year, while Insurance BER improved to 81.2% for full year 2024 from 86.5% in 2023. Fourth quarter results showed Insurance revenue growth of 9% to $331 million.
For 2025 guidance, Clover Health projects: Average Medicare Advantage membership of 103,000-107,000 (30% growth), Insurance revenue between $1.800-1.875 billion (37% growth), and Adjusted EBITDA profitability between $45-70 million.
Clover Health (CLOV) ha riportato significativi miglioramenti finanziari per il 2024, con un aumento del 9% dei ricavi assicurativi annuali, che hanno raggiunto i 1,3 miliardi di dollari. L'azienda ha raggiunto un utile EBITDA rettificato di 70 milioni di dollari, segnando un incremento di 112 milioni di dollari rispetto all'anno precedente.
I principali indicatori finanziari mostrano progressi sostanziali: la perdita netta GAAP dalle operazioni continuative è migliorata di 164 milioni di dollari rispetto all'anno precedente, mentre il BER assicurativo è migliorato all'81,2% per l'intero anno 2024, rispetto all'86,5% del 2023. I risultati del quarto trimestre hanno mostrato una crescita del fatturato assicurativo del 9%, raggiungendo i 331 milioni di dollari.
Per le previsioni del 2025, Clover Health prevede: una media di membri del Medicare Advantage compresa tra 103.000 e 107.000 (crescita del 30%), ricavi assicurativi tra 1,800 e 1,875 miliardi di dollari (crescita del 37%) e redditività EBITDA rettificata compresa tra 45 e 70 milioni di dollari.
Clover Health (CLOV) reportó mejoras financieras significativas para 2024, con un crecimiento del 9% en los ingresos por seguros, alcanzando los 1.3 mil millones de dólares. La compañía logró un beneficio EBITDA ajustado de 70 millones de dólares, marcando un aumento de 112 millones de dólares en comparación con el año anterior.
Los principales indicadores financieros muestran un progreso considerable: la pérdida neta GAAP de operaciones continuas mejoró en 164 millones de dólares en comparación con el año anterior, mientras que el BER de seguros mejoró al 81.2% para el año completo de 2024, desde el 86.5% en 2023. Los resultados del cuarto trimestre mostraron un crecimiento de los ingresos por seguros del 9%, alcanzando los 331 millones de dólares.
Para la guía de 2025, Clover Health proyecta: un promedio de membresía de Medicare Advantage de 103,000 a 107,000 (crecimiento del 30%), ingresos por seguros entre 1,800 y 1,875 millones de dólares (crecimiento del 37%) y rentabilidad EBITDA ajustada entre 45 y 70 millones de dólares.
Clover Health (CLOV)는 2024년에 상당한 재무 개선을 보고했으며, 연간 보험 수익이 9% 증가하여 13억 달러에 달했습니다. 이 회사는 조정된 EBITDA 이익 7천만 달러를 달성하여 전년 대비 1억 1천2백만 달러 증가했습니다.
주요 재무 지표는 상당한 진전을 보여줍니다: 계속 운영에서의 GAAP 순손실은 전년 대비 1억 6천4백만 달러 개선되었고, 보험 BER은 2023년 86.5%에서 2024년 전체 연도에 81.2%로 개선되었습니다. 4분기 결과는 보험 수익이 9% 증가하여 3억 3천1백만 달러에 달했습니다.
2025년 가이드라인에 따르면, Clover Health는 평균 Medicare Advantage 회원 수가 103,000에서 107,000명(30% 성장), 보험 수익이 18억에서 18억 7천5백만 달러(37% 성장), 조정된 EBITDA 수익성이 4천5백만에서 7천만 달러 사이가 될 것으로 예상합니다.
Clover Health (CLOV) a rapporté des améliorations financières significatives pour 2024, avec une augmentation de 9% des revenus d'assurance atteignant 1,3 milliard de dollars. L'entreprise a réalisé un bénéfice EBITDA ajusté de 70 millions de dollars, marquant une augmentation de 112 millions de dollars par rapport à l'année précédente.
Les principaux indicateurs financiers montrent des progrès substantiels : la perte nette GAAP des opérations continues s'est améliorée de 164 millions de dollars par rapport à l'année précédente, tandis que le BER d'assurance s'est amélioré à 81,2% pour l'année complète 2024, contre 86,5% en 2023. Les résultats du quatrième trimestre ont montré une croissance des revenus d'assurance de 9%, atteignant 331 millions de dollars.
Pour les prévisions 2025, Clover Health projette : une adhésion moyenne au Medicare Advantage de 103 000 à 107 000 (croissance de 30%), des revenus d'assurance entre 1,800 et 1,875 milliard de dollars (croissance de 37%) et une rentabilité EBITDA ajustée entre 45 et 70 millions de dollars.
Clover Health (CLOV) berichtete über signifikante finanzielle Verbesserungen für 2024, mit einem Anstieg der gesamten Versicherungsumsätze um 9% auf 1,3 Milliarden Dollar. Das Unternehmen erzielte einen bereinigten EBITDA-Gewinn von 70 Millionen Dollar, was einem Anstieg von 112 Millionen Dollar im Vergleich zum Vorjahr entspricht.
Wichtige Finanzkennzahlen zeigen erhebliche Fortschritte: Der GAAP-Nettoverlust aus fortgeführten Betrieben verbesserte sich um 164 Millionen Dollar im Vergleich zum Vorjahr, während der Versicherungs-BER für das gesamte Jahr 2024 auf 81,2% von 86,5% im Jahr 2023 verbessert wurde. Die Ergebnisse des vierten Quartals zeigten ein Umsatzwachstum aus Versicherungen von 9% auf 331 Millionen Dollar.
Für die Prognose 2025 rechnet Clover Health mit: einer durchschnittlichen Medicare Advantage-Mitgliedschaft von 103.000 bis 107.000 (30% Wachstum), Versicherungsumsätzen zwischen 1,800 und 1,875 Milliarden Dollar (37% Wachstum) und einer bereinigten EBITDA-Rentabilität zwischen 45 und 70 Millionen Dollar.
- Adjusted EBITDA profit of $70M in 2024, up $112M YoY
- Insurance BER improved to 81.2% from 86.5% YoY
- GAAP Net loss improved by $164M YoY
- 37% projected Insurance revenue growth for 2025
- 30% projected Medicare Advantage membership growth for 2025
- Upcoming 4.0 Star Rating for payment year 2026
- Q4 2024 GAAP Net loss of $21M
- Full year 2024 GAAP Net loss of $46M
- Expected lower Adjusted EBITDA in 2025 ($45-70M) compared to 2024 ($70M)
Insights
Clover Health's 2024 results reveal a remarkable financial turnaround, with the company achieving $70 million in Adjusted EBITDA for 2024 compared to a
The most telling metric is Clover's Insurance Benefits Expense Ratio (BER) improvement to
Clover's 2025 guidance signals confidence in their business model, projecting
The company's technology-first approach with the Clover Assistant platform appears to be delivering on its promise of better care management and cost control. Their positive cash flow from operations in 2024 marks another critical milestone, reducing concerns about future capital needs.
While balancing rapid growth with profitability remains challenging in healthcare insurance, Clover's improved cost structure and technology platform position them to potentially achieve both objectives – something many Medicare Advantage startups have failed to accomplish.
Clover Health's results validate their AI-driven approach to Medicare Advantage, with their Clover Assistant platform emerging as the cornerstone of their financial turnaround. The
What distinguishes Clover's approach is their dual-pronged strategy: using AI to empower physicians with clinical decision support while simultaneously leveraging their home care division for direct member management. This creates a closed-loop system where clinical insights drive interventions that improve outcomes and reduce costs.
The company's achievement of a 4.0 Star Rating for 2026 is particularly significant as it validates the quality aspect of their technology platform. Star Ratings heavily weight clinical quality measures like medication adherence, preventive screenings, and chronic condition management – areas where Clover Assistant appears to be driving improvements through its clinical decision support capabilities.
Clover's planned technology investments for 2025 suggest they're doubling down on this approach, likely enhancing their predictive analytics capabilities and expanding their clinical datasets. The question remains whether their technology advantage is defensible as competitors like UnitedHealth, Humana, and CVS Health make similar investments in AI-driven care management.
The scalability of their platform will be tested as they project
Full year 2024 GAAP Net loss from continuing operations improves by
Full year 2024 Adjusted EBITDA of
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 midpoint - Insurance revenue between
$1.80 0 billion and$1.87 5 billion, representing37% growth year-over-year at the midpoint - Adjusted EBITDA profitability between
$45 million and$70 million - Adjusted Net income between
$45 million and$70 million
WILMINGTON, Del., Feb. 27, 2025 (GLOBE NEWSWIRE) -- Clover Health Investments, Corp. (Nasdaq: CLOV) (“Clover,” “Clover Health” or the “Company”), today reported financial results for the fourth quarter and full year 2024. Management will host a conference call today at 5:00 p.m. ET to discuss its operating results and other business highlights.
"2024 was a pivotal year for us as we demonstrated that our technology-first physician empowerment model, combined with our ability to directly manage members via our home care arm, achieves differentiated clinical and financial results," said Clover Health CEO Andrew Toy. "As we move into a new phase of growth, we expect our management of our returning membership cohorts to continue to be exceptional in terms of both total cost of care as well as clinical quality. This care management differentiation, combined with the favorable financial impact of our upcoming payment year 2026 4.0 Star Rating, will allow us to offer competitive plan products and grow membership, while maintaining strong profitability."
Insurance revenue during the fourth quarter 2024 grew by
"2024 was a defining year for Clover. We delivered meaningful revenue growth, significant AEP membership growth, strong Adjusted EBITDA profitability, and positive cash flow from operations," said Clover Health CFO Peter Kuipers. "With this momentum, we are well positioned in 2025 and beyond to invest in new membership growth and Clover Assistant technology, while maintaining strong Adjusted EBITDA profitability."
Key Company highlights are as follows:
| Dollars in Millions | 4Q24 | 4Q23 | Change Between (%) | FY'24 | FY'23 | Change Between (%) | ||||||||||||||||
| Insurance revenue | $ | 330.7 | $ | 303.1 | 9.1 | % | $ | 1,344.9 | $ | 1,235.8 | 8.8 | % | ||||||||||
| Insurance net medical claims incurred | 243.2 | 249.8 | (2.6 | )% | 1,010.3 | 1,003.7 | 0.7 | % | ||||||||||||||
| Total revenues | 337.0 | 312.4 | 7.9 | % | 1,371.1 | 1,260.5 | 8.8 | % | ||||||||||||||
| Insurance MCR | 73.5 | % | 82.4 | % | (890 bps) | 75.1 | % | 81.2 | % | (610 bps) | ||||||||||||
| Insurance BER(1) | 82.8 | % | 87.4 | % | (460 bps) | 81.2 | % | 86.5 | % | (530 bps) | ||||||||||||
| Salaries and benefits plus General and administrative expenses ("SG&A") | $ | 115.0 | $ | 107.9 | 6.6 | % | $ | 408.9 | $ | 440.2 | (7.1 | )% | ||||||||||
| Adjusted Salaries and benefits plus General and administrative expenses ("Adjusted SG&A")(3) | 86.1 | 79.3 | 8.6 | % | 294.7 | 297.5 | (0.9 | )% | ||||||||||||||
| Net loss from continuing operations | (21.5 | ) | (67.9 | ) | 68.3 | % | (46.3 | ) | (210.1 | ) | 78.0 | % | ||||||||||
| Adjusted Net income (loss) from continuing operations(2)(3) | 7.4 | (22.2 | ) | Favorable* | 68.2 | (48.9 | ) | Favorable* | ||||||||||||||
| Adjusted EBITDA(3) | 7.8 | (16.7 | ) | Favorable* | 70.1 | (41.6 | ) | Favorable* | ||||||||||||||
| Total restricted and unrestricted cash, cash equivalents, and investments | $ | 437.6 | $ | 417.3 | 4.9 | % | $ | 437.6 | $ | 417.3 | 4.9 | % | ||||||||||
Financial Outlook
For full-year 2025, Clover Health is providing its guidance as follows:
| 2025 Guidance | |
| Insurance revenue | |
| Adjusted SG&A(4) | |
| Adjusted SG&A as a % of Total revenues | |
| Adjusted EBITDA(4) | |
| Adjusted Net income(2)(4) | |
| Average Medicare Advantage membership | 103,000 - 107,000 |
| Insurance BER(4) | |
Lives under Clover Management
| December 31, 2024 | December 31, 2023 | ||
| Insurance members | 82,664 | 81,205 | |
________________________________________
* Not presented as a % change because the current or prior period amount is zero or the amount for the line item changed from a gain to a loss (or vice versa) and thus yields a result that is not meaningful.
1 Insurance Benefits Expense Ratio (“BER”) is a Non-GAAP financial measure. A reconciliation of BER to Insurance Net medical claims incurred, net, the most directly comparable GAAP measure, is provided in a table immediately following the consolidated financial statements below. Additional information about the Company's Non-GAAP financial measures can be found under the caption "About Non-GAAP Financial Measures" below and in Appendix A. Beginning in the second quarter 2024, the Company is presenting Insurance BER. Management believes that by adding quality improvement expenses into the Insurance BER calculation, this offers a clearer and more accurate representation of our investment in healthcare quality and member engagement, and more fully captures the cost of maintaining and enhancing the quality of care for our members.
2 Adjusted Net income (loss) from continuing operations is a Non-GAAP financial measure. A reconciliation of Adjusted Net income (loss) from continuing operations to Net income (loss) from continuing operations, the most directly comparable GAAP measure, is provided in a table immediately following the consolidated financial statements below. Additional information about the Company's Non-GAAP financial measures can be found under the caption "About Non-GAAP Financial Measures" below and in Appendix A. Beginning in the fourth quarter 2024, the Company is presenting Adjusted Net income (loss) from continuing operations. Management believes that Adjusted Net income (loss) from continuing operations is helpful to investors in understanding and evaluating our operating performance and trends, as well as in assessing the Company’s financial performance in the same manner as our management and our board of directors.
3 Adjusted SG&A (Non-GAAP), Adjusted EBITDA (Non-GAAP), and Adjusted Net income (loss) from continuing operations (Non-GAAP) are Non-GAAP financial measures. Reconciliations of Adjusted SG&A (Non-GAAP) to SG&A, Adjusted EBITDA (Non-GAAP) to Net loss from continuing operations, and Adjusted Net income (loss) from continuing operations (Non-GAAP) to Net income (loss) from continuing operations, respectively, the most directly comparable GAAP measures, are provided in the tables immediately following the consolidated financial statements below. Additional information about the Company's Non-GAAP financial measures can be found under the caption "About Non-GAAP Financial Measures" below and in Appendix A.
4 Reconciliations of projected Adjusted SG&A (Non-GAAP) to projected SG&A, projected Adjusted EBITDA (Non-GAAP) to Net income (loss), and projected Adjusted Net income (Non-GAAP) to Net income (loss), the most directly comparable GAAP measures, are not provided because Stock-based compensation, which is excluded from Adjusted SG&A (Non-GAAP), Adjusted EBITDA (Non-GAAP), and Adjusted Net income (Non-GAAP), cannot be reasonably calculated or predicted at this time without unreasonable efforts. A reconciliation of projected Insurance BER (Non-GAAP) to projected Net medical claims incurred, net, the most directly comparable GAAP measure, is not provided because quality improvements, which are included in Insurance BER (Non-GAAP), cannot be reasonably calculated or predicted at this time without unreasonable efforts. Additional information about the Company's Non-GAAP financial measures can be found under the caption “About Non-GAAP Financial Measures” below and in Appendix A.
Earnings Conference Call Details
Clover Health’s management will host a conference call to discuss its financial results on Thursday, February 27, at 5:00 PM Eastern Time. To access the call via telephone please dial 800-274-8461 (for U.S. callers) or 203-518-9814 (for callers outside the U.S.) and enter the conference ID: CLOVQ424. A live audio webcast will also be available online at: https://event.on24.com/wcc/r/4846534/EB3F7B166C10D538CFDBCA7E1349030A and related presentation materials will be available at Clover Health’s Investor Relations website at investors.cloverhealth.com. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link and at Clover Health’s Investor Relations website at investors.cloverhealth.com, and will remain available for approximately 12 months.
Upcoming Investor Events & Conferences
- 2025 Jefferies Value-Based Healthcare Summit, March 10, 2025
- 2025 Leerink Global Healthcare Conference at 8:00 a.m. Eastern Time, March 11, 2025
Any live and archived webcasts and presentations associated with the conferences listed above may be accessed on Clover Health’s Investor Relations website at: investors.cloverhealth.com/news-and-events/investor-events-presentations.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding future events and Clover Health's future results of operations, financial condition, market size and opportunity, business strategy and plans, and the factors affecting our performance and our objectives for future operations. Forward-looking statements are not guarantees of future performance and you are cautioned not to place undue reliance on such statements. In some cases, you can identify forward looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "going to," "can," "could," "should," "would," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," "outlook," "forecast," "guidance," "objective," "plan," "seek," "grow," "if," "continue" or the negative of these words or other similar terms or expressions that concern Clover Health's expectations, strategy, priorities, plans or intentions. Forward-looking statements in this press release include, but are not limited to, the following: statements under "Financial Outlook" and statements regarding expectations relating to potential improvements in Insurance MCR, operating expenses, Adjusted SG&A, Insurance BER, and the number of Clover Health's Insurance members, as well as the statements contained in the quotations of our executive officers, future capital needs and other expectations as to future performance, operations and results (including our updated guidance for full-year 2025). Statements regarding our Adjusted EBITDA profitability and Adjusted Net income profitability are also forward-looking, and are based on our current targets which are preliminary and are derived from our 2025 financial outlook. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by forward-looking statements in this press release. Forward-looking statements involve a number of judgments, risks and uncertainties, including, without limitation, risks related to: our expectations regarding results of operations, financial condition, and cash flows; our expectations regarding the development and management of our business; any current, pending, or future legislation, regulations or policies that could have a negative effect on our revenue, profit margins, cash flows and business, including rules, regulations and policies relating to healthcare, Medicare generally and medical loss ratios; 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 ability to maintain and increase adoption and use of Clover Assistant, including the expansion of Clover Assistant for external payors and providers under the brand name Counterpart Assistant; the anticipated benefits associated with the use of Clover Assistant, including our ability to utilize the platform to manage our medical care ratios; our ability to maintain or improve our Star Ratings or otherwise continue to improve the financial performance of our business; our ability to develop new features and functionality that meet market needs and achieve market acceptance; our ability to retain and hire necessary employees and staff our operations appropriately; the timing and amount of certain investments in growth; the outcome of any known and unknown litigation and regulatory proceedings; our ability to maintain, protect, and enhance our intellectual property; general economic conditions and uncertainty; persistent high inflation and fluctuating interest rates; and geopolitical uncertainty and instability. Additional information concerning these and other risk factors is contained under Item 1A. “Risk Factors” in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on March 14, 2024, as such risks may be updated in our subsequent filings with the SEC. The forward-looking statements included in this press release are made as of the date hereof. Except as required by law, Clover Health undertakes no obligation to update any of these forward-looking statements after the date of this press release or to conform these statements to actual results or revised expectations.
About Non-GAAP Financial Measures
We use Non-GAAP measures in this release, including Insurance BER, Adjusted EBITDA, Adjusted Net income (loss) from continuing operations, Adjusted SG&A and Adjusted SG&A as a percentage of Total revenues. These Non-GAAP financial measures are provided to enhance the reader's understanding of Clover Health's past financial performance and our prospects for the future. Clover Health's management team uses these Non-GAAP financial measures in assessing Clover Health's performance, as well as in planning and forecasting future periods. These Non-GAAP financial measures are not computed according to GAAP, and the methods we use to compute them may differ from the methods used by other companies. Non-GAAP financial measures are supplemental to and should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles in the United States ("GAAP") and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Readers are encouraged to review the reconciliations of these Non-GAAP financial measures to the comparable GAAP measures, which are attached to this release, together with other important financial information, including our filings with the SEC, on the Investor Relations page of our website at investors.cloverhealth.com.
For a description of these Non-GAAP financial measures, including the reasons management uses each measure, please see Appendix A: "Explanation of Non-GAAP Financial Measures."
The statements contained in this document are solely those of the authors and do not necessarily reflect the views or policies of CMS. The authors assume responsibility for the accuracy and completeness of the information contained in this document.
About Clover Health:
Clover Health (Nasdaq: CLOV) is a physician enablement technology company committed to bringing access to great healthcare to everyone on Medicare. This includes a focus on seniors who have historically lacked access to affordable, high-quality healthcare. Our strategy is powered by our software platform, Clover Assistant, which is designed to aggregate patient data from across the healthcare ecosystem to support clinical decision-making and improve health outcomes through the early identification and management of chronic disease. For our members, we provide PPO and HMO Medicare Advantage plans in several states, with a differentiated focus on our flagship wide-network, high-choice PPO plans. For healthcare providers outside Clover Health's Medicare Advantage plan, we extend the benefits of our data-driven technology platform to a wider audience via our subsidiary, Counterpart Health, and aim to enable enhanced patient outcomes and reduced healthcare costs on a nationwide scale. Clover Health has published data demonstrating the technology’s impact on Medication Adherence, as well as the earlier identification and management of Diabetes and Chronic Kidney Disease.
Visit: www.cloverhealth.com
Investor Relations Contact:
Ryan Schmidt
investors@cloverhealth.com
Press Contact:
Andrew Still-Baxter
press@cloverhealth.com
| CLOVER HEALTH INVESTMENTS, CORP. | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| (Dollars in thousands, except share amounts) | |||||||
| (unaudited) | |||||||
| December 31, 2024 | December 31, 2023 | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 194,543 | $ | 116,407 | |||
| Short-term investments | — | 12,218 | |||||
| Investment securities, available-for-sale (Amortized cost: 2024: | 26,997 | 100,702 | |||||
| Investment securities, held-to-maturity (Fair value: 2024: | 15 | 6,902 | |||||
| Accrued retrospective premiums | 41,253 | 22,076 | |||||
| Healthcare receivables | 51,539 | 64,164 | |||||
| Prepaid expenses | 13,174 | 14,418 | |||||
| Other assets, current | 15,603 | 18,612 | |||||
| Assets related to discontinued operations | — | 72,471 | |||||
| Total current assets | 343,124 | 427,970 | |||||
| Investment securities, available-for-sale (Amortized cost: 2024: | 201,719 | 120,208 | |||||
| Investment securities, held-to-maturity (Fair value: 2024: | 14,343 | 793 | |||||
| Property and equipment, net | 5,307 | 5,082 | |||||
| Other intangible assets | 2,990 | 2,990 | |||||
| Other assets, non-current | 13,259 | 13,628 | |||||
| Total assets | $ | 580,742 | $ | 570,671 | |||
| Liabilities and Stockholders' Equity | |||||||
| Current liabilities | |||||||
| Unpaid claims | $ | 156,396 | $ | 137,100 | |||
| Accounts payable and accrued expenses | 34,564 | 37,184 | |||||
| Accrued salaries and benefits | 19,090 | 20,951 | |||||
| Other liabilities, current | 3,466 | 5,781 | |||||
| Liabilities related to discontinued operations | — | 60,099 | |||||
| Total current liabilities | $ | 213,516 | $ | 261,115 | |||
| Other liabilities, non-current | 26,083 | 23,162 | |||||
| Total liabilities | $ | 239,599 | $ | 284,277 | |||
| Commitments and Contingencies | |||||||
| Stockholders' equity | |||||||
| Class A Common Stock, | 41 | 40 | |||||
| Class B Common Stock, | 9 | 9 | |||||
| Additional paid-in capital | 2,576,471 | 2,461,238 | |||||
| Accumulated other comprehensive loss | (1,584 | ) | (2,370 | ) | |||
| Accumulated deficit | (2,202,803 | ) | (2,159,794 | ) | |||
| Less: Treasury stock, at cost; 18,752,947 and 7,912,750 shares held at December 31, 2024 and December 31, 2023, respectively | (30,991 | ) | (12,729 | ) | |||
| Total stockholders' equity | 341,143 | 286,394 | |||||
| Total liabilities and stockholders' equity | $ | 580,742 | $ | 570,671 | |||
| CLOVER HEALTH INVESTMENTS, CORP. | |||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | |||||||||||||||
| (Dollars in thousands, except per share and share amounts) | |||||||||||||||
| (unaudited) | |||||||||||||||
| Three Months Ended December 31, | Year ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenues: | |||||||||||||||
| Premiums earned, net (Net of ceded premiums of | $ | 330,680 | $ | 303,070 | $ | 1,344,881 | $ | 1,235,769 | |||||||
| Other income | 6,283 | 9,315 | 26,250 | 24,774 | |||||||||||
| Total revenues | 336,963 | 312,385 | 1,371,131 | 1,260,543 | |||||||||||
| Operating expenses: | |||||||||||||||
| Net medical claims incurred | 243,044 | 249,754 | 1,006,327 | 1,004,590 | |||||||||||
| Salaries and benefits | 62,737 | 65,172 | 232,454 | 257,157 | |||||||||||
| General and administrative expenses | 52,286 | 42,705 | 176,480 | 183,089 | |||||||||||
| Impairment of goodwill and other intangible assets | — | 15,945 | — | 15,945 | |||||||||||
| Premium deficiency reserve benefit | — | (683 | ) | — | (7,239 | ) | |||||||||
| Depreciation and amortization | 344 | 674 | 1,331 | 2,509 | |||||||||||
| Restructuring costs | — | 1,951 | 288 | 9,821 | |||||||||||
| Total operating expenses | 358,411 | 375,518 | 1,416,880 | 1,465,872 | |||||||||||
| Loss from continuing operations | (21,448 | ) | (63,133 | ) | (45,749 | ) | (205,329 | ) | |||||||
| Change in fair value of warrants | 33 | 86 | 50 | 86 | |||||||||||
| Interest expense | — | — | — | 7 | |||||||||||
| Loss on investment | — | 4,726 | 467 | 4,726 | |||||||||||
| Net loss from continuing operations | (21,481 | ) | (67,945 | ) | (46,266 | ) | (210,148 | ) | |||||||
| Net (loss) income from discontinued operations | (611 | ) | (2,527 | ) | 3,257 | (3,213 | ) | ||||||||
| Net loss | $ | (22,092 | ) | $ | (70,472 | ) | $ | (43,009 | ) | $ | (213,361 | ) | |||
| Per share data: | |||||||||||||||
| Basic and diluted weighted average number of class A and class B common shares and common share equivalents outstanding | 491,871,177 | 481,607,777 | 490,018,730 | 482,176,127 | |||||||||||
| Continuing operations: | |||||||||||||||
| Basic and diluted loss per share | $ | (0.04 | ) | $ | (0.14 | ) | $ | (0.09 | ) | $ | (0.44 | ) | |||
| Discontinued operations: | |||||||||||||||
| Basic and diluted (loss) earnings per share | $ | — | $ | (0.01 | ) | $ | 0.01 | $ | (0.01 | ) | |||||
| Net unrealized (loss) gain on available-for-sale investments | (2,436 | ) | 2,702 | 786 | 7,004 | ||||||||||
| Comprehensive loss | $ | (24,528 | ) | $ | (67,770 | ) | $ | (42,223 | ) | $ | (206,357 | ) | |||
| CLOVER HEALTH INVESTMENTS, CORP. | |||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
| (Dollars in thousands) | |||||||||||
| (unaudited) | |||||||||||
| Year ended December 31, | |||||||||||
| 2024 | 2023 | 2022 | |||||||||
| Cash flows from operating activities: | |||||||||||
| Net loss | $ | (43,009 | ) | $ | (213,361 | ) | $ | (339,567 | ) | ||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||||
| Depreciation and amortization expense | 1,331 | 2,509 | 1,187 | ||||||||
| Amortization of notes and securities discounts and debt issuance costs | — | — | 30 | ||||||||
| Stock-based compensation | 114,331 | 140,931 | 164,305 | ||||||||
| Change in fair value of warrants and amortization of warrants | 50 | 86 | (900 | ) | |||||||
| Accretion, net of amortization | (2,524 | ) | (4,014 | ) | (1,503 | ) | |||||
| Accrued interest earned | (571 | ) | — | — | |||||||
| Net realized (losses) gains on investment securities | (480 | ) | (20 | ) | 267 | ||||||
| Gain on extinguishment of note payable | — | — | (23,326 | ) | |||||||
| Loss (gain) on investment | 467 | 4,726 | (9,217 | ) | |||||||
| Impairment of goodwill and other intangible assets | — | 15,945 | — | ||||||||
| Premium deficiency reserve | — | (7,239 | ) | (93,517 | ) | ||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accrued retrospective premiums | (19,177 | ) | (1,689 | ) | 14,536 | ||||||
| Prepaid expenses | 1,244 | 3,728 | (3,415 | ) | |||||||
| Other assets | 2,852 | 8,859 | (8,208 | ) | |||||||
| Healthcare receivables | 12,625 | 6,443 | (22,565 | ) | |||||||
| Unpaid claims | 19,296 | (294 | ) | 1,077 | |||||||
| Accounts payable and accrued expenses | (2,620 | ) | 4,739 | 7,635 | |||||||
| Accrued salaries and benefits | (1,971 | ) | (2,901 | ) | 8,784 | ||||||
| Other liabilities | 606 | 6,404 | (203 | ) | |||||||
| Net cash provided by (used in) operating activities from continuing operations | 82,450 | (35,148 | ) | (304,600 | ) | ||||||
| Net cash (used in) provided by operating activities from discontinued operations | (47,605 | ) | (109,514 | ) | 100,674 | ||||||
| Net cash provided by (used in) operating activities | 34,845 | (144,662 | ) | (203,926 | ) | ||||||
| Cash flows from investing activities: | |||||||||||
| Purchases of short-term investments, available-for-sale, and held-to-maturity securities | (201,241 | ) | (175,567 | ) | (369,396 | ) | |||||
| Proceeds from sales of short-term investments and available-for-sale securities | 83,673 | 60,436 | 13,348 | ||||||||
| Proceeds from maturities of short-term investments and available-for-sale securities | 119,689 | 255,728 | 472,098 | ||||||||
| Acquisition of business, net of cash acquired | — | — | (16,200 | ) | |||||||
| Purchases of property and equipment | (1,556 | ) | (584 | ) | (4,467 | ) | |||||
| Acquisition of Clover Therapeutics Series A preferred shares | — | — | (250 | ) | |||||||
| Net cash provided by investing activities | 565 | 140,013 | 95,133 | ||||||||
| Cash flows from financing activities: | |||||||||||
| Issuance of common stock, net of early exercise liability | 709 | 34 | 1,400 | ||||||||
| Issuance of common stock under employee stock purchase plan, net of stock issuance costs | 193 | 1,116 | — | ||||||||
| Treasury stock acquired | (16,491 | ) | (6,220 | ) | (6,362 | ) | |||||
| Repurchases of common stock | (1,772 | ) | — | — | |||||||
| Net cash used in financing activities | (17,361 | ) | (5,070 | ) | (4,962 | ) | |||||
| Net increase (decrease) in cash and cash equivalents | 18,049 | (9,719 | ) | (113,755 | ) | ||||||
| Cash and cash equivalents, beginning of period | 176,494 | 186,213 | 299,968 | ||||||||
| Cash and cash equivalents, end of period | $ | 194,543 | $ | 176,494 | $ | 186,213 | |||||
| Reconciliation of cash and cash equivalents and restricted cash | |||||||||||
| Cash and cash equivalents(1) | $ | 194,543 | $ | 122,863 | $ | 103,791 | |||||
| Restricted cash(1) | — | 53,631 | 82,422 | ||||||||
| Total cash, cash equivalents, and restricted cash(1) | $ | 194,543 | $ | 176,494 | $ | 186,213 | |||||
| Supplemental disclosure of non-cash investing and financing activities | |||||||||||
| Activities from Seek Dissolution | $ | — | $ | — | $ | 735 | |||||
| Right-of-use assets obtained in exchange for lease liabilities | — | — | 642 | ||||||||
| Recognition of equity method investments and preferred stock | — | — | 8,644 | ||||||||
| Derecognition of non-controlling interest | — | — | 3,903 | ||||||||
| Conversion of Clover Therapeutics convertible note to preferred stock | — | — | 250 | ||||||||
| (1) Includes all applicable amounts for both continuing and discontinued operations. | |||||||||||
| Operating Segments | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Year ended December 31, | |||||||||||||||
| Insurance Segment | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (in thousands) | ||||||||||||||||
| Premiums earned, net (net of ceded premiums) | $ | 330,680 | $ | 303,070 | $ | 1,344,881 | $ | 1,235,769 | ||||||||
| Less: | ||||||||||||||||
| Net medical claims incurred | 243,164 | 249,790 | 1,010,289 | 1,003,683 | ||||||||||||
| Salaries and benefits | 61,567 | 63,229 | 228,004 | 252,103 | ||||||||||||
| General and administrative expenses | 51,311 | 41,432 | 173,101 | 179,491 | ||||||||||||
| Segment net loss | $ | (25,362 | ) | $ | (51,381 | ) | $ | (66,513 | ) | $ | (199,508 | ) | ||||
| CLOVER HEALTH INVESTMENTS, CORP. | |||||||||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||||||||||
| ADJUSTED SG&A (NON-GAAP) RECONCILIATION | |||||||||||||||
| (in thousands)(1) | |||||||||||||||
| (unaudited) | |||||||||||||||
| Three Months Ended December 31, | Year ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Salaries and benefits | $ | 62,737 | $ | 65,172 | $ | 232,454 | $ | 257,157 | |||||||
| General and administrative expenses | 52,286 | 42,705 | 176,480 | 183,089 | |||||||||||
| Total SG&A (GAAP) | 115,023 | 107,877 | 408,934 | 440,246 | |||||||||||
| Adjustments | |||||||||||||||
| Stock-based compensation | (29,645 | ) | (33,136 | ) | (114,331 | ) | (140,931 | ) | |||||||
| Non-recurring legal expenses and settlements | 717 | 4,565 | 110 | (1,807 | ) | ||||||||||
| Adjusted SG&A (Non-GAAP) | $ | 86,095 | $ | 79,306 | $ | 294,713 | $ | 297,508 | |||||||
| Total revenues (GAAP) | 336,962 | 312,385 | 1,371,131 | 1,260,543 | |||||||||||
| Adjusted SG&A (Non-GAAP) as a percentage of Total revenues | 26 | % | 25 | % | 21 | % | 24 | % | |||||||
| (1) The table above includes Non-GAAP measures. Non-GAAP financial measures are supplemental and should not be considered a substitute for financial information presented in accordance with GAAP. For a detailed explanation of these Non-GAAP measures, see Appendix A. | |||||||||||||||
| CLOVER HEALTH INVESTMENTS, CORP. | |||||||||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||||||||||
| ADJUSTED EBITDA (NON-GAAP) RECONCILIATION | |||||||||||||||
| (in thousands)(1) | |||||||||||||||
| (unaudited) | |||||||||||||||
| Three Months Ended December 31, | Year ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net loss from continuing operations (GAAP): | $ | (21,481 | ) | $ | (67,945 | ) | $ | (46,266 | ) | $ | (210,148 | ) | |||
| Adjustments | |||||||||||||||
| Interest expense | — | — | — | 7 | |||||||||||
| Depreciation and amortization | 344 | 674 | 1,331 | 2,509 | |||||||||||
| Change in fair value of warrants | 33 | 86 | 50 | 86 | |||||||||||
| Loss on investment | — | 4,726 | 467 | 4,726 | |||||||||||
| Stock-based compensation | 29,645 | 33,136 | 114,331 | 140,931 | |||||||||||
| Premium deficiency reserve benefit | — | (683 | ) | — | (7,239 | ) | |||||||||
| Restructuring costs | — | 1,951 | 288 | 9,821 | |||||||||||
| Non-recurring legal expenses and settlements | (717 | ) | (4,566 | ) | (110 | ) | 1,807 | ||||||||
| Impairment of goodwill and other intangible assets | — | 15,945 | — | 15,945 | |||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 7,824 | $ | (16,676 | ) | $ | 70,091 | $ | (41,555 | ) | |||||
| (1) The table above includes Non-GAAP measures. Non-GAAP financial measures are supplemental and should not be considered a substitute for financial information presented in accordance with GAAP. For a detailed explanation of these Non-GAAP measures, see Appendix A. | |||||||||||||||
| CLOVER HEALTH INVESTMENTS, CORP. | |||||||||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||||||||||
| ADJUSTED NET INCOME (LOSS) FROM CONTINUING OPERATIONS (NON-GAAP) RECONCILIATION | |||||||||||||||
| (in thousands)(1) | |||||||||||||||
| (unaudited) | |||||||||||||||
| Three Months Ended December 31, | Year ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net loss from continuing operations (GAAP) | $ | (21,481 | ) | $ | (67,945 | ) | $ | (46,266 | ) | $ | (210,148 | ) | |||
| Adjustments | |||||||||||||||
| Stock-based compensation | 29,645 | 33,136 | 114,331 | 140,931 | |||||||||||
| Premium deficiency reserve benefit | — | (683 | ) | — | (7,239 | ) | |||||||||
| Restructuring costs | — | 1,951 | 288 | 9,821 | |||||||||||
| Non-recurring legal expenses and settlements | (717 | ) | (4,566 | ) | (110 | ) | 1,807 | ||||||||
| Impairment of goodwill and other intangible assets | — | 15,945 | — | 15,945 | |||||||||||
| Adjusted Net income (loss) from continuing operations (non-GAAP) | $ | 7,447 | $ | (22,162 | ) | $ | 68,243 | $ | (48,883 | ) | |||||
| (1) The table above includes Non-GAAP measures. Non-GAAP financial measures are supplemental and should not be considered a substitute for financial information presented in accordance with GAAP. For a detailed explanation of these Non-GAAP measures, see Appendix A. | |||||||||||||||
| CLOVER HEALTH INVESTMENTS, CORP. | |||||||||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||||||||||
| INSURANCE BENEFITS EXPENSE RATIO (NON-GAAP) RECONCILIATION | |||||||||||||||
| (in thousands)(1) | |||||||||||||||
| (unaudited) | |||||||||||||||
| Three Months Ended December 31, | Year ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net medical claims incurred, net (GAAP): | $ | 243,164 | $ | 249,754 | $ | 1,010,289 | $ | 1,003,683 | |||||||
| Adjustments | |||||||||||||||
| Quality improvements | 30,762 | 15,061 | 81,144 | 64,943 | |||||||||||
| Insurance benefits expense, net (Non-GAAP) | $ | 273,926 | $ | 264,815 | $ | 1,091,433 | $ | 1,068,626 | |||||||
| Premiums earned, net (GAAP) | $ | 330,680 | $ | 303,070 | $ | 1,344,881 | $ | 1,235,769 | |||||||
| Insurance BER, net (Non-GAAP) | 82.8 | % | 87.4 | % | 81.2 | % | 86.5 | % | |||||||
| (1) The table above includes Non-GAAP measures. Non-GAAP financial measures are supplemental and should not be considered a substitute for financial information presented in accordance with GAAP. For a detailed explanation of these Non-GAAP measures, see Appendix A. | |||||||||||||||
CLOVER HEALTH INVESTMENTS, CORP.
Appendix A
Explanation of Non-GAAP Financial Measures
Non-GAAP Definitions
Adjusted SG&A - A Non-GAAP financial measure defined by us as total SG&A less stock-based compensation and non-recurring legal expenses and settlements. We believe that Adjusted SG&A provides management, investors, and others a useful view of our operating spend as it excludes non-cash, stock-based compensation and expenses related to investments that management believes do not reflect the Company's core operating expenses. We believe that Adjusted SG&A as a percentage of Total revenues is useful to management, investors, and others because it allows us to measure our operational leverage as revenue scales.
Adjusted EBITDA - A Non-GAAP financial measure defined by us as net loss from continuing operations before depreciation and amortization, interest expense, change in fair value of warrants, loss on investment, stock-based compensation, premium deficiency reserve benefit, restructuring costs, impairment of goodwill and other intangible assets, and non-recurring legal expenses and settlements. Adjusted EBITDA is a key measure used by our management team and the board of directors to understand and evaluate our operating performance and trends, to prepare and approve our annual budget and to develop short and long-term operating plans. In particular, we believe that the exclusion of the amounts eliminated in calculating Adjusted EBITDA provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that Adjusted EBITDA provides investors and others useful information to understand and evaluate our operating results in the same manner as our management and our board of directors.
Adjusted Net income (loss) from continuing operations - A Non-GAAP financial measure defined by us as Net income (loss) from continuing operations before stock-based compensation, premium deficiency reserve benefit, restructuring costs, impairment of goodwill and other intangible assets, and non-recurring legal expenses and settlements. Adjusted Net income (loss) from continuing operations is a key measure used by our management team and the board of directors to understand and evaluate our operating performance and trends. We believe that Adjusted Net income (loss) from continuing operations is helpful to investors in assessing the Company’s financial performance in the same manner as our management and our board of directors.
Insurance Benefits Expense Ratio - A Non-GAAP financial measure defined by us as Benefits Expense Ratio ("BER"). We calculate our Insurance BER by taking the total of Insurance net medical expenses incurred and quality improvements, and dividing that total by premiums earned on a net basis, in a given period. Quality improvements include expenses associated with activities that improve health outcomes, as defined by the U.S. Department of Health and Human Services ("HHS"), as well as those directly tied to enhancing healthcare quality, such as the Company's spend on health information technology, wellness and prevention programs, initiatives to reduce hospital readmissions, and our clinically focused Member Rewards program. We believe our Insurance BER is useful to management, investors, and others because it offers a clearer and more accurate representation of our investment in healthcare quality and member engagement, and gives a comprehensive view of costs related to maintaining and improving the quality of care of our members, which is crucial for sustaining member satisfaction and adherence to treatment regimens.
FAQ
What is Clover Health's projected revenue growth for 2025?
How much did Clover Health's Insurance BER improve in 2024?
What is CLOV's Medicare Advantage membership growth target for 2025?
How much did Clover Health's Adjusted EBITDA improve in 2024?
What was CLOV's Insurance revenue growth in 2024?
