The medicare advantage insurer, Clover Health Investments Corp. (CLOV) posted its Q1 fiscal 2022 earnings on May 9, 2022. The beat quarterly earnings had the stock rebound in the after-hours to reach $2.79 per share. Thus, after a loss of 10.41% during regular trading, CLOV added 15.77% in the after-hours session. The prior session had the stock valued at $2.41 apiece at the close.
CLOV’s Earnings Analysis
For the first quarter of 2022, the company reported total revenues of $874.4 million while the comparable figure stands at $200.3 million. On top of the huge YOY improvement, the quarterly revenue surpassed the consensus estimate by 7.23%.
Moreover, CLOV posted a net loss of $75.3 million while the adjusted EBITDA loss was $71.8 million for the quarter. Thus, the company came out with a quarterly loss of 19 cents a share while analysts were expecting a loss of 24 cents per share for the quarter.
Additionally, lives under Clover Assistant Management shot up by a humungous 550% YOY while live unique users on Clover Assistant went up by 43% YOY.
Therefore, the beat earnings and revenue on top of huge growth in Clover Assistant’s popularity shows CLOV is off to a strong start in 2022. However, keeping the pace up throughout the year might prove challenging due to the wider economic situation and instability.
CLOV’s Future Expectations
According to the interim CFO Mark Herbers, despite the overall market conditions, the company is cautiously optimistic for 2022. Focusing on sustainable and intelligent growth, CLOV expects its total revenue for 2022 to be somewhere between $3.0 and $3.4 billion. Hence, the full-year revenue guidance remains in line with the consensus estimate of $3.28 billion.
Furthermore, the company expects its insurance membership to deliver a growth rate of 26-27% and insurance MCR between 95-99% for 2022. The adjusted operating expenses are anticipated to fall between $330 and $345 million.
In addition, CLOV also announced a new appointment on Monday as it has been working on bolstering its management team. Following the recent appointments of CTO and General Counsel, the company announced Aric Sharp as divisional CEO of Value-Based Care for Clover.
Following the better-than-expected quarterly report and an upbeat outlook despite the dire situation of the wider market, CLOV rallied big in the after-hours on Monday. The company also announced a new management appointment along with the earnings release.