Clover Health Investments, Corp. (NASDAQ: CLOV) (“Clover,” “Clover
Health” or the “Company”), a physician enablement company committed
to bringing access to great healthcare to everyone on Medicare,
announced today that it is targeting Adjusted EBITDA profitability
for the full-year 2024. (1)
“I believe that we are at a critical inflection point in the
trajectory of our business. Throughout 2023 our results, driven by
strong Insurance performance, have proven the strength and agility
of our model. With our purpose built technology, Clover Assistant,
we have the ability to help physicians identify and manage chronic
diseases earlier, which is a key lever in our push toward
profitability. Going into 2024, we plan to harness the momentum
generated last year to once again deliver superior results on a PPO
chassis, while investing in the technology and programs to improve
the health and well-being of our membership”, said Andrew Toy,
Chief Executive Officer of Clover Health.
“We are targeting to achieve our goal to deliver profitability
on an Adjusted EBITDA basis for full-year 2024. To accomplish this,
we will continue to focus on improving MA-plan performance while
reducing operational spend, drive increasing value from Clover
Assistant’s capabilities, further invest in our robust care
management assets, such as Clover Home Care, and expanding our
offerings to empower every primary care physician”, continued Mr.
Toy. “Our team has worked relentlessly to position the Company to
achieve our goals in 2024, and continue to drive toward Clover’s
long-term growth levers.”
“During the most recent Medicare Advantage Annual Enrollment
Period, we once again priced our Insurance plans to target
profitability with an intentional focus on member retention within
our core markets, rather than membership expansion, to push towards
sustainable profitability this year”, said Mr. Toy. “We intend to
issue full guidance for full-year 2024 at a later date. However,
this business update, and our strengthened conviction in targeting
Adjusted EBITDA profitability this year, highlights the anticipated
favorable impact of our ongoing strategy to deliver a sustainable,
profitable Clover Health to our stakeholders.”
(1) |
Adjusted
EBITDA is a non-GAAP financial measure. Additional information
about the Company's non-GAAP financial measures can be found under
the caption “About Non-GAAP Financial Measures”. |
|
|
About Non-GAAP Financial Measures:We use
non-GAAP measures including Adjusted EBITDA. These non-GAAP
financial measures are provided to enhance the reader's
understanding of Clover Health's past financial performance and our
prospects for the future. Clover Health's management team uses
these non-GAAP financial measures in assessing Clover Health's
performance, as well as in planning and forecasting future periods.
These non-GAAP financial measures are not computed according to
GAAP, and the methods we use to compute them may differ from the
methods used by other companies. Non-GAAP financial measures are
supplemental to and should not be considered a substitute for
financial information presented in accordance with GAAP and should
be read only in conjunction with our consolidated financial
statements prepared in accordance with GAAP. Readers are encouraged
to review the reconciliations of these non-GAAP financial measures
to the comparable GAAP measures, together with other important
financial information, including our filings with the Securities
and Exchange Commission (the “SEC”), on the Investor Relations page
of our website at investors.cloverhealth.com.
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, gain on
investment, stock-based compensation expense, premium deficiency
reserve benefit, restructuring costs, non-recurring legal expenses
and settlements, and expenses attributable to Seek. Adjusted EBITDA
is a key measure used by our management team and the board of
directors to understand and evaluate our operating performance and
trends, to prepare and approve our annual budget and to develop
short and long-term operating plans. In particular, we believe that
the exclusion of the amounts eliminated in calculating Adjusted
EBITDA provide useful measures for period-to-period comparisons of
our business. Accordingly, we believe that Adjusted EBITDA provides
investors and others useful information to understand and evaluate
our operating results in the same manner as our management team and
our board of directors.
Reconciliation of projected Adjusted EBITDA to Net loss, the
most directly comparable GAAP measure, is not provided because
Stock-based compensation expense, which is excluded from Adjusted
EBITDA (non-GAAP), cannot be reasonably calculated or predicted at
this time without unreasonable efforts.
Forward-Looking Statements
This press release includes forward-looking statements,
including statements regarding future events including, without
limitation, Clover Health Investments, Corp.’s (“Clover Health,”
“we,” “our,” or “us”) expectations regarding positive Adjusted
EBITDA (a non-GAAP measure, as defined herein), future results of
operations, financial condition, outlook, market size and
opportunity, business strategy and plans, and the factors affecting
our performance and our objectives for future operations. In some
cases, you can identify forward looking statements because they
contain words such as "may," "will," "should," "expects," "plans,"
“goals,” "anticipates," "going to," "can," "could," "should,"
"would," "intends," "target," "projects," "contemplates,"
"believes," "estimates," "predicts," "potential," "outlook,"
"forecast," "guidance," "objective," "plan," "seek," "grow,"
"target," "if," "continue," or the negative of these words or other
similar terms or expressions that concern Clover Health's
expectations, strategy, priorities, plans or intentions. These
statements are subject to known and unknown risks, uncertainties
and other factors that may cause our actual results, levels of
activity, performance or achievements to differ materially from
results expressed or implied in this press release.
These forward-looking statements are subject to a number of
other risks, uncertainties and assumptions, including those
described under Item 1A. “Risk Factors” in the Company’s most
recent Annual Report on Form 10-K, filed with the SEC on March 1,
2023, as such risk factors may be amended or updated in our
subsequent filings with the SEC. In light of these risks,
uncertainties and assumptions, the forward-looking events and
circumstances discussed in this press release may not occur and
actual results could differ materially and adversely from those
anticipated or implied in the forward-looking statements.
Forward-looking statements are not guarantees of future performance
and you are cautioned not to place undue reliance on such
statements. The forward-looking statements included in this press
release are made as of the date hereof. Except as required by law,
Clover Health undertakes no obligation to update any of these
forward-looking statements after the date hereof or to conform
these statements to actual results or revised expectations.
About Clover Health:Clover Health (Nasdaq:
CLOV) is a physician enablement company committed to bringing
access to great healthcare to everyone on Medicare. This includes a
health equity-based focus on seniors who have historically lacked
access to affordable, high-quality healthcare. Our strategy is
powered by our software platform, Clover Assistant, which is
designed to aggregate patient data from across the healthcare
ecosystem to support clinical decision-making and improve health
outcomes through the early identification and management of chronic
disease.
Press Contact:Andrew
Still-Baxterpress@cloverhealth.com
Investor Relations Contact:Ryan
Schmidtinvestors@cloverhealth.com
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