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• GAAP Net Loss: Improved by $25 million to a loss of $9 million for Q3 2024 compared to the same quarter last year.

• Adjusted EBITDA: Improved to a profit of $19 million for Q3 2024, up from $3 million in Q3 2023.

• Year-to-Date Adjusted EBITDA: Increased by $87 million year-over-year, reaching $62 million.

• Insurance Benefits Expense Ratio (BER): Improved to 82.8% in Q3 2024 from 82.3% in Q3 2023.

• Insurance Medical Cost Ratio (MCR): Improved to 78% in Q3 2024 from 78.5% in Q3 2023.

• Insurance Revenue: $323 million for Q3 2024, representing a 7% year-over-year growth.

• Year-to-Date Revenue: $1.14 billion, reflecting a 9% year-over-year growth.

• Total SG&A: Decreased by 11% year-over-year for Q3 2024.

• Adjusted SG&A: $62 million for Q3 2024, an 8% decrease year-over-year.

• Cash Flow from Operating Activities: $50 million for Q3 2024, with year-to-date cash flow at $130 million.

• Cash and Investments: $531 million at the end of Q3 2024, with $306 million at the parent entity level.

• Full Year 2024 Insurance Revenue Guidance: Reaffirmed between $1.35 billion and $1.375 billion.

• Full Year 2024 Adjusted EBITDA Guidance: Increased to between $55 million and $65 million.

• Warning! GuruFocus has detected 6 Warning Signs with CLOV.

Release Date: November 06, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Clover Health Investments Corp (NASDAQ:CLOV) reported another quarter of meaningful adjusted EBITDA profitability and positive operating cash flow, leading to an improved full-year adjusted EBITDA guidance.

• The company achieved industry-leading loss ratios driven by strong performance in PMPM revenue and medical expense management.

• Clover Health received upgraded star ratings for its plans, including a four-star rating for its flagship PPO, impacting payment year 2026.

• The technology-driven Clover Assistant has been instrumental in managing total cost of care and quality, contributing to strong clinical and financial performance.

• Clover Health has significantly increased its adjusted EBITDA profitability to over $62 million year-to-date on a membership base of 81,000 lives, positioning the company well for future growth.

Negative Points

• Despite improvements, Clover Health Investments Corp (NASDAQ:CLOV) still reported a GAAP net loss of $9 million for the third quarter.

• The company anticipates unregulated liquidity levels to be impacted by a final payment of $39 million related to its 2023 ACO Reach participation.

• Clover Health's insurance Benefits Expense Ratio (BER) and Medical Cost Ratio (MCR) showed only slight improvements compared to the previous year.

• The company is facing market volatility, which requires strategic investments to maintain growth and quality initiatives.

• Clover Health's counterpart health SaaS and tech-enabled services solution is still in early stages, with insignificant profitability impact expected this year.