Clover Health (CLOV) 2021 Q1 Financial Performance Review

Clover Health Investments Corp (NASDAQ:CLOV) offers Medicare insurance plans at affordable prices. The company also uses machine learnings and artificial intelligence to help doctors better treat patients. Its flagship software Clover Assistant provides data-based relevant information of patients to physicians. The information helps physicians to offer better care to patients during their visits. Clover went public earlier this year by merging with a special purpose acquisition company.

The Tennessee-based insurance startup recently announced mixed financial results for the first quarter. Clover reported revenue of $200.3 million for the three months ended March 31, up 21 percent from $165.5 million in the comparable quarter of 2020. The surge in revenue was mainly attributed to an 18 percent rise in Medicare Advantage membership on a year-over-year basis. Revenue also topped analysts’ average estimate of $193 million.

However, the company’s net loss came in at $48.4 million, wider than $28.2 million in the year-ago quarter. Clover stock fell nearly 11 percent in the mid-day trading Monday following the wider-than-expected loss.

Commenting on the quarter, CFO Joe Wagner said in a statement, “In the first quarter we delivered a record-setting $200 million in revenue, which was quickly followed by the launch of our Direct Contracting Entity. Notably, the Clover Assistant continues to power improved financial outcomes, demonstrated by a MCR differential of more than 1,000 basis points in the first quarter for returning members who see a PCP that uses the Clover Assistant versus the MCR of those who don’t. This past quarter, the positive traction we saw across our business was partially offset by elevated COVID-related costs. While we expect to continue to experience heightened levels of utilization in the near-term, we couldn’t be more excited about the long-term potential to drive strong outcomes for both our members and investors.”

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Clover also issued its financial outlook for fiscal 2021. It is expecting revenue in the range of $810 million to $830 million for the full year. Moreover, the company expects Medicare Advantage membership to grow in the range of 17 to 21 percent on a year-over-year basis.

See also biggest healthcare companies by revenue.