NASDAQ$CLOV

Clover Health Investments Corp. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported strong third quarter results with significantly improved Insurance Medical Care Ratio.

Clover Health reported strong third quarter results, driven by improved Insurance Medical Care Ratio (MCR). The company is prioritizing profitability and expects to improve both Insurance and Non-Insurance MCRs from 2022 levels. They finished the quarter with $783 million in cash, cash equivalents, and investments.

  • Insurance MCR decreased significantly year-over-year to 86.3%.
  • Total revenue increased to $856.8 million from $427.2 million year-over-year.
  • The company is updating its 2022 full year guidance to include improved 2022 Insurance MCR range of 93% to 94%.
  • Clover intends to continue to grow Insurance business at above-market rates in 2023 but will moderate growth to prioritize profitability.

Headline financials

Total Revenue

$857M

Previous: $427M+100.6%
EPS (adj)

-$0.16

Previous: -$0.08-100.0%
Capital Expenditures

-$590K

Previous: -$485K-21.6%
Free Cash Flow

-$75.9M

Previous: -$35M-116.8%
Net Income

-$75.3M

Previous: -$34.5M-118.1%
Operating Income

-$73.9M

Previous: -$149M+50.5%
Gross Profit

$17M

Previous: -$9.26M+283.8%
Cash & Equivalents

$383M

Previous: $202M+89.3%
Total Assets

$1.56B

Previous: $952M+63.5%
Stock-Based Comp

$42.6M

Previous: $46.8M-8.9%

Revenue & EPS history

Clover Health · Revenue · Quarterly

$857M

Q3 2022+100.6%vs Q3 2021
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Clover Health · $268M total across 1 segment · Q3 2022

  • Insurance Revenue
    $268M

Forward guidance

For full-year 2022, Clover Health is updating its guidance. Total revenues are expected to be in the range of $3.2 billion to $3.4 billion. Insurance MCR is expected to be in the range of 93% - 94%. Adjusted SG&A (non-GAAP) is expected to be between $320 million and $330 million.

Tailwinds

  • Insurance membership is expected to average 86,000 - 87,000, a growth rate of 29% - 30% as compared to the 2021 average.
  • Non-Insurance business is expected to be 165,000 - 170,000 aligned beneficiaries, compared to an average of 62,125 in 2021.
  • Total revenues are expected to be in the range of $3.2 billion to $3.4 billion.
  • Insurance revenue of $1.0 billion to $1.1 billion is projected.
  • Adjusted SG&A as a percentage of revenue (non-GAAP) is expected to be 9% - 10% compared to 18% in 2021.

Headwinds

  • Significant developments related to COVID-19 could potentially impact expectations.
  • Historical utilization trends could potentially impact expectations.
  • Stock-based compensation expense cannot be reasonably calculated or predicted at this time without unreasonable efforts.
  • Adjusted SG&A (non-GAAP) is expected to be between $320 million and $330 million.
  • Non-Insurance MCR is expected to be improved versus 2021 levels.

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 Q3 2022

Historical avgQ3 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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