Clover Health Investments (CLOV) Reports Q1 Revenue of $200.3M

May 17, 2021 7:41 AM EDT
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Clover Health Investments (NASDAQ: CLOV) reported Q1 revenue of $200.3 million, versus $165.5 million reported last year.

  • GAAP net loss for the quarter was $(48.4) million compared to $(28.2) million for the first quarter of 2020.
  • Adjusted EBITDA loss (Non-GAAP) for the quarter was $(76.2) million compared to $(21.7) million in the first quarter of 2020.

Financial Outlook:

For full year 2021, Clover Health is providing the following guidance and commentary:

  • 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. This is consistent with our previous guidance that we discussed in our year-end 2020 earnings call on March 1.
  • For the Medicare Direct Contracting program, while the Company expects to have access to up to 200,000 Medicare beneficiaries through its contracts with Participating Providers, we believe we will end 2021 with between 70,000 - 100,000 total aligned beneficiaries. Voluntary alignment will occur quarterly, and the majority of voluntary alignments are expected to become effective in the fourth quarter.
  • Total revenues are expected to be in the range of $810 - $830 million, inclusive of a preliminary estimate of approximately $20 - $30 million of revenue generated from Direct Contracting. GAAP revenue estimates for Direct Contracting are dependent on the finalization of accounting treatment, which we expect will be completed by the end of the second quarter of 2021.
  • CMS benchmark expenditures (2) under management for Direct Contracting are expected to be in the range of $700 - $800 million.
  • Total Medicare spend under management, which includes revenues from the Medicare Advantage program plus the estimated CMS benchmark expenditures for Direct Contracting, is expected to be in the range of $1.5 - $1.6 billion.
  • Normalized MCR (Non-GAAP) (3) for Medicare Advantage is expected to be in the range of 94% - 97%.
  • MCR for Direct Contracting is expected to be approximately 100%, net of savings targets required by the Centers for Medicare & Medicaid Services (“CMS”).
  • Adjusted Operating Expenses (Non-GAAP) (3), which we define as Salaries and benefits plus General and administrative expenses less stock-based compensation expense, is expected to be between $250 and $270 million, reflecting the use of a portion of the proceeds from the Merger to make investments in marketing, network expansion and technology to support future growth.
  • Normalized Adjusted EBITDA loss (Non-GAAP) (3) is expected to be in the range of $(240) - $(190) million.
  • The Company previously expected an accounting adjustment related to the valuation of the embedded derivative features of its convertible securities to result in a positive non-cash income statement impact in its first quarter and full year 2021 financial results. In the course of performing its closing procedures for the first quarter, the Company determined that it would not in fact have this positive income statement impact.

For earnings history and earnings-related data on Clover Health Investments (CLOV) click here.

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