Clover Health Investments (CLOV) Q2 2024 earnings summary

Executive summary

• Achieved first positive GAAP net income as a public company in Q2 2024, reporting $7.2 million profit versus a $28.9 million loss in Q2 2023.

• Adjusted EBITDA rose to $36.2 million in Q2 2024, up from $9.9 million in Q2 2023, reflecting strong business fundamentals and cost optimization.

• Revenue for Q2 2024 increased 11% year-over-year to $356.3 million, driven by higher risk adjustment revenue and member retention.

• CMS upgraded the 2025 Star rating for PPO Medicare Advantage plans to 3.5 Stars, the only plan in primary markets to receive an increase.

• Exited the ACO REACH Program, classifying related results as discontinued operations.

Financial highlights

• Q2 2024 insurance revenue grew 11% year-over-year to $349.9 million; gross profit rose 42% to $105 million.

• Insurance MCR improved to 71.3% in Q2 2024 from 77.2% in Q2 2023; BER improved to 76.1% from 82.1%.

• Adjusted SG&A for Q2 2024 was $71.7 million, up 9% year-over-year; total SG&A decreased 4% to $99.9 million.

• Total cash, cash equivalents, and investments stood at $482.8 million at quarter-end.

• Basic and diluted EPS from continuing operations: $0.01 in Q2 2024, up from $(0.06) in Q2 2023.

Outlook and guidance

• Full-year 2024 insurance revenue guidance raised to $1.35–$1.375 billion.

• Adjusted EBITDA guidance increased to $50–$65 million for 2024.

• Insurance MCR expected at 77–79% and BER at 81–83% for 2024.

• Adjusted SG&A projected at $270–$280 million for the year.

• Year-end 2024 unregulated liquidity expected between $145–$165 million.