"Medicare Advantage enrollment jumped 32% year over year to 106,323 members, the clearest sign that Clover's technology-first model is resonating with both brokers and beneficiaries. Revenue growth of 34% from the prior year quarter underscores how scale is driving top-line expansion. What matters here is that the company achieved this growth during what management called a "3.5 star payment year," meaning reimbursement rates were compressed. That's a meaningful distinction."
"Yet the stock's initial reaction suggested investors remained skeptical about the durability of that turnaround. Revenue climbed to $478.0M, topping estimates of $468.3M, while the company posted adjusted net income of $17M and adjusted EBITDA of $17M. The real story, though, sits deeper: management is proving it can grow membership aggressively while maintaining profitability, a combination that has eluded many peers navigating a challenging reimbursement environment."
Clover Health reported revenue of $478.0M, adjusted net income of $17M, adjusted EBITDA of $17M, and gross profit of $99.6M while achieving 106,323 Medicare Advantage members, a 32% year-over-year increase. Enrollment and 34% year-over-year revenue growth occurred despite compressed reimbursement described as a "3.5 star payment year." Operating loss remained $10.6M and SG&A totaled $109.8M, with management narrowing SG&A guidance to $335M. The company highlighted technology-driven operating leverage via the Clover Assistant platform, but investor skepticism persists despite consecutive profitable quarters.
Read at 24/7 Wall St.
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