Clover Health Investments (CLOV) Q2 2022 Earnings Results

By Amit Chowdhry ● Aug 10, 2022
  • Clover Health Investments (CLOV) recently announced its Q2 2022 earnings results. These are the details.

Clover Health Investments (CLOV) recently announced its Q2 2022 earnings results. Below are the highlights.

For the full-year 2022, Clover Health is reaffirming its previously provided guidance and commentary:

— Insurance membership is expected to average 84,000 – 85,000, a growth rate of 26% – 27% as compared to the 2021 average. For the Non-Insurance business, the Company expects the average number of aligned beneficiaries to be 160,000 – 165,000, compared to an average of 62,125 in 2021.

— Total revenues are expected to be in the range of $3.0 billion to $3.4 billion. This includes projected Insurance revenue of $1.0 billion to $1.1 billion and Non-Insurance revenue of $2.0 billion to $2.3 billion.

— Insurance MCR is expected to be in the range of 95% – 99%. This improvement versus 2021 is expected to be driven by a combination of expected operational efficiencies, increased risk scores, and slightly lower COVID-19 costs. Non-Insurance MCR is also expected to improve versus 2021 levels. Any significant developments related to COVID-19 and/or historical utilization trends could impact these expectations.

— Adjusted operating expenses (Non-GAAP) are expected to be between $330 million and $345 million.

— Adjusted operating expenses as a percentage of revenue (Non-GAAP)(1) is expected to be 10% – 12% compared to 18% in 2021.

— Financial Outlook Details In Quote Below

KEY QUOTES:

“We continue to build upon our strong start to 2022 with another quarter of significant year-over-year revenue and membership growth in both our Insurance and Non-Insurance business lines. Our focus on building a sustainable, intelligent growth engine has led to a reduction in MCRs and improvement in operational efficiencies which we believe is the foundation of our progress toward profitability.”

— Clover Health CEO Vivek Garipalli

“Our technology platform is moving from strength to strength as Clover Assistant penetration continues to show significant growth. We believe there is tremendous opportunity and potential to continue iterating and advancing Clover Assistant’s clinical capabilities. We believe each improvement supports physicians in catching and treating conditions earlier to increase the health and well-being of their patients while simultaneously reducing costs for the healthcare system.”

About Financial Outlook: “The second quarter built upon the advancements achieved during the beginning of 2022, resulting in an Insurance MCR of 92.1%, down significantly year-over year. Though elevated from last quarter due to unfavorable prior period development and traditional industry seasonality, Non-Insurance MCR saw a nearly 600 bps year-over-year improvement. Importantly, we believe we are on track to sustain this positive trajectory to drive Insurance MCR improvement and positive Non-Insurance margin contribution, while lowering operating expenses as a percentage of revenue. This is supported by Clover Assistant’s growing technology moat around our business, which we believe is the key to us delivering financial sustainability while maintaining industry leading growth.”

— Andrew Toy, President of Clover Health