NASDAQ$CLOV

Clover Health Investments Corp. · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported financial results for the second quarter of 2021.

Clover Health's Q2 2021 revenue increased by 140% year-over-year to $412 million, driven by the launch of Direct Contracting. Lives under Clover Management nearly doubled to approximately 129,000. The Clover Assistant is on track to manage over $1 billion of annualized revenue.

  • Total revenue was $412.5 million, up 140% year-over-year.
  • Lives under Clover Management nearly doubled from the first quarter to approximately 129,000.
  • Clover Assistant has approximately 95,000 lives under management and is on pace to manage over $1 billion of annualized revenue.
  • GAAP net loss was $(317.6) million, impacted by a non-cash loss of $134.5 million relating to the change in the fair value of public and private placement warrants.

Headline financials

Total Revenue

$412M

Previous: $172M+139.7%
EPS (adj)

-$0.78

Previous: -$0.26-200.0%
Capital Expenditures

-$290K

Previous: $221K-231.2%
Free Cash Flow

-$318M

Previous: $36.4M-972.2%
Net Income

-$318M

Previous: $5.4M-5978.4%
Operating Income

-$182M

Previous: $23.2M-884.9%
Gross Profit

-$46M

Previous: $52.7M-187.4%
Cash & Equivalents

$486M

Previous: $751K+64619.5%
Total Assets

$1.22B

Previous: $829M+46.6%
Stock-Based Comp

$43M

Previous: $1.47M+2824.9%

Revenue & EPS history

Clover Health · Revenue · Quarterly

$412M

Q2 2021+139.7%vs Q2 2020
Beat estimate in 8 of 8 quarters(100%)
ActualEstimate

Revenue by segment

Clover Health · $301M total across 1 segment · Q3 2023

  • Insurance Revenue
    $301M+12.4%

Forward guidance

For full year 2021, Clover Health expects total revenues to be in the range of $1.4 billion to $1.5 billion, Medicare Advantage membership to be in the range of 68,000 - 70,000 by December 31, 2021, Normalized MCR for Medicare Advantage to be in the range of 94% - 97%, Adjusted Operating Expenses to be between $250 and $270 million, Adjusted Operating Expenses as a percentage of revenue to be 16% in the second half of 2021, and Normalized Adjusted EBITDA loss to be in the range of $(250) - $(210) million.

Tailwinds

  • Total revenues are expected to be in the range of $1.4 billion to $1.5 billion.
  • MA revenue of $760 million to $790 million
  • Medicare Direct Contracting revenue of $650 million to $700 million.
  • Medicare Advantage membership is expected to be in the range of 68,000 - 70,000 by December 31, 2021, a growth rate of 17% - 21% as compared to year end 2020.
  • Normalized MCR (Non-GAAP) for Medicare Advantage is expected to be in the range of 94% - 97%.

Headwinds

  • Adjusted Operating Expenses (Non-GAAP) is expected to be between $250 and $270 million.
  • Adjusted Operating Expenses (Non-GAAP) as a percentage of revenue is expected to be 16% in the second half of 2021 compared to 21% in the first half of 2021 and 22% in full year 2020.
  • Normalized Adjusted EBITDA loss (Non-GAAP) is expected to be in the range of $(250) - $(210) million.
  • The Company expects the number of aligned beneficiaries to remain roughly flat for the remainder of 2021.
  • Excludes gross profit or loss from Direct Contracting, reflecting the fact that we do not yet have sufficient claims data to prepare a “normalized” result for the Direct Contracting segment.

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 Q2 2021

Historical avgQ2 2021

-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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