NASDAQ$CLOV

Clover Health Investments Corp. · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Clover Health reported strong revenue growth and margin improvements.

Clover Health's Q1 2022 results showed significant year-over-year revenue growth, driven by increases in both Insurance and Non-Insurance segments. The company is focused on balancing growth with MCR reduction and operational efficiencies to drive towards profitability. Total revenue was $874.4 million, compared to $200.3 million in Q1 2021. Lives under Clover Management grew to approximately 257,000 from approximately 66,000 year-over-year.

  • Total revenue reached $874.4 million, a substantial increase from $200.3 million in the first quarter of 2021.
  • Lives under Clover Management grew to approximately 257,000, up from approximately 66,000 year-over-year.
  • Insurance (Medicare Advantage) Medical Care Ratio (MCR) was 96.4%, showing significant improvement.
  • Non-Insurance (Direct Contracting) MCR was 99.8%, also indicating quarter-over-quarter improvement.

Headline financials

Total Revenue

$874M

Previous: $200M+336.5%
EPS (adj)

-$0.16

Previous: -$0.12-33.3%
Capital Expenditures

-$158K

Previous: -$99K-59.6%
Free Cash Flow

-$75.5M

Previous: -$48.5M-55.6%
Net Income

-$75.3M

Previous: -$48.4M-55.5%
Operating Income

-$87.3M

Previous: -$119M+26.7%
Gross Profit

$12.7M

Previous: -$14.1M+189.7%
Cash & Equivalents

$274M

Previous: $405M-32.3%
Total Assets

$2.68B

Previous: $867M+209.1%
Stock-Based Comp

$40.6M

Previous: $42.7M-4.9%

Revenue & EPS history

Clover Health · Revenue · Quarterly

$874M

Q1 2022+336.5%vs Q1 2021
Beat estimate in 8 of 8 quarters(100%)
ActualEstimate

Revenue by segment

Clover Health · $278M total across 1 segment · Q1 2022

  • Insurance Revenue
    $278M

Forward guidance

Clover Health reaffirms its full-year 2022 guidance, expecting total revenues between $3.0 billion and $3.4 billion and an Insurance MCR between 95% and 99%.

Tailwinds

  • Total revenues are expected to be in the range of $3.0 billion to $3.4 billion.
  • Insurance revenue is projected to be $1.0 billion to $1.1 billion.
  • Non-Insurance revenue is projected to be $2.0 billion to $2.3 billion.
  • Insurance membership is expected to average 84,000 - 85,000, a growth rate of 26% - 27% as compared to the 2021 average.
  • Insurance MCR is expected to be in the range of 95% - 99%.

Headwinds

  • Significant developments related to COVID-19 and/or historical utilization trends could impact expectations.
  • Stock-based compensation expense cannot be reasonably calculated or predicted at this time without unreasonable efforts.
  • Challenges in expanding member and beneficiary base or into new markets.
  • Exposure to unfavorable changes in local benefit costs, reimbursement rates, competition and economic conditions.
  • The current and future impact of the COVID-19 pandemic and its variants on Clover Health’s business and industry.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.1%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+5.7%

Avg return

30 days after

46%

11 / 24 earnings

Positive

+20.9%

Q1 2024

Best reaction

-15.4%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+11.0%+26.3%+36.3%
Q4 2025-3.2%+0.5%-18.6%
Q3 2025-15.4%-26.1%-26.7%
Q1 2025+11.9%+3.6%-8.8%
Q4 2024-4.1%-7.5%-13.3%
Q3 2024-15.0%-22.9%-22.2%
Q2 2024+9.6%+11.4%+71.6%
Q1 2024+20.9%+13.9%+52.8%
Q4 2023+2.2%+1.1%-9.8%
Q3 2023-15.2%-17.2%-13.0%
Q2 2023+10.3%+19.0%+4.0%
Q1 2023+4.7%+11.2%+10.1%
Q4 2022-2.2%-5.2%-28.3%
Q3 2022-5.8%+11.7%-13.1%
Q2 2022-14.4%+1.2%-23.6%
Q1 2022-11.9%-3.0%-5.2%
Q4 2021+20.1%+33.3%+72.5%
Q3 2021-4.3%-9.0%-40.9%
Q2 2021+7.1%+1.0%+2.1%
Q1 2021-6.7%-7.2%+73.4%
Q2 2020+2.6%+4.3%+37.0%
Q4 2020-3.8%-16.6%-19.6%
Q3 2020+0.3%+0.7%+9.1%
Q4 2019-0.1%-0.2%+10.2%
Q1 2020
Q3 2019
Q2 2019
Q1 2019

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