Clover Health SPAC Presentation Deck
How We Achieve Enhanced Margins At Best-In-Class Growth
(4)
The Clover Assistant allows us to generate
positive margins while maintaining 30+%
annual growth
Room for margin expansion over time:
o Stars enhanced payment mechanism
o Improvement in the CA product
o Increase in CA adoption and coverage
Enhanced margins = more $ available to
reinvest in operating expenses and in
enhancing the health plan value to the
consumer
Metric
Member Growth[¹]
Clover Assistant
Penetration
Clover Assistant
Returning Member
MCR(2)
Consolidated MCR(2)
Adjusted EBITDA
Margin(3)
2019
31%
59%
89%
(38%)
Q1 2020
38%/4)
61%
82%
(17%)
2022E
35%
76%
(3%)
Long-Term Target
30%+
70%+
<75%
6-7%
(1) Excludes Direct Contracting.
(2) MCR, or Medical Case Ratio, is defined a total net medical daim expense incurred divided by premiums eared in each case on a gross or met basis, in the case may ba, in a given period. MCRs represent returning members in Clover Assistant physician panels. New
and retuning members are defined on a calendar year basis. Any member who is active on July 1 of a given year is considered a retuming member in the following year. Any member who joins a Clover plan after July 1 in a given year is considered a new member for the
nity of the following calendar year.
(3) Adjusted EBITDA is a non-GAAP financial measure defined by us as net loss before interest expense and amortization of notes and securities discount, provision for income taxes, depreciation and amortization expense, change in fair value of warrants, loss on
derivative, restructuring cost stock-based compensation expense and health insurance industry fee. Adjustled EBITDA Margin is a non-GAAP financial measure defined by us as Adjusted EBITDA divided by premium eamed, gross. See reconciliation in Appendix
Historical numbers reflect an update to presentation materials dated 20.
Based on full year 2020 membership estimates.
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