Clover Health Investor Presentation Deck
Historical Financial Results
(3)
$ In millions unless otherwise noted
MA Membership
DC Lives
Total Lives Under Management
YOY Growth (%)
Total Revenue
YOY Growth (%)
Net Medical Claims Incurred
YOY Growth (%)
Gross Profit
Gross Margin (%)
MA GAAP MCR
MA Normalized MCR (Non-GAAP)(2)
Salaries and Benefits plus General
and Administrative Expenses
Net Loss
Adjusted EBITDA(3)
2019A
42,592
42,592
31%
$462
59%
$451
61%
$11
2.4%
98.6%
N/A
$186
($364)
($175)
2020A YTD Q3'2021
58,056
67,281
1,818
129,099
125%(¹)
58,056
36%
$673
46%
$590
31%
$83
12.3%
88.7%
96.6%
$192
($136)
($74)
$1,040
105%(1)
$1,109
170%(1)
($69)
(6.6%)
107.1%
94.2%
$332
($401)
($317)
Membership growth supported by existing markets and new market
expansion and launch of Direct Contracting
Our Medicare covered medical expenses increased meaningfully due in
part to the launch of Direct Contracting in April 2021, MA membership
growth, and the impact from the COVID-19 pandemic
CMS assigned Clover's Medicare Advantage PPO plan 3.5 stars on the
Medicare Star Ratings for the 2020 measurement year; the higher
rating could positively impact MCR for our PPO plan beginning in 2023
We recognized a ($115) million change in the fair value of our public
and private placement warrants in Q3 2021
Note: Medical care ratio (MCR) is calculated dividing total net medical claim expenses incurred by premiums earned, in each case on a gross or net basis, as the case ma be, in a given period. Clover's subsidiary Clover Health Partners, LLC, began participating as a
Direct Contracting Entity in the CMS's Global and Professional Direct Contracting Model on April 1, 2021.
(1) YTD 3Q 2021 vs. YTD3Q 2020.
(2)
A non-GAAP financial measure that excludes from MA MCR (as defined below) the impact of COVID-19 on medical costs and premium revenue and adjusts for the estimate of prior period divergence from estimates. The impact of COVID-19 on medical costs
consists of direct COVID-related costs, prior period development, unrealized 2020 risk adjustment, and Excess (reduced) utilization due to COVID, and the impact on premium revenue consists of estimates of COVID-19's impact on member risk scores. We believe
that this metric, which is used by our management team in the operation of the business, is helpful to investors and others in assessing the Company's financial performance and operations without the temporary distortion caused by the COVID-19 pandemic. See
Reconciliation in Appendix.
Adjusted EBITDA is a non-GAAP financial measure defined by us as net loss before interest expense, amortization of notes and securities discount, depreciation and amortization, change in fair value of warrants payable, (gain) loss on derivative, and stock-based
compensation expense. See Reconciliation in Appendix.
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