Q1 2024 Clover Health Investments Corp Earnings Call
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Operator: Please stand by; your program is about to begin. If you require audio assistance, please press star and zero. Ladies and gentlemen, good afternoon, and welcome to the Clover Health First Quarter 2024 Earnings Conference Call.
Operator: Ladies and gentlemen, good afternoon, and welcome to the Clover Health first quarter 2024 earnings Conference call. At this time, all participants are in a listen only mode.
Operator: At this time, all participants are in a listen-only mode. A question and answer session will follow prepared remarks. At that time, if you wish to ask a question, please press star and one on your telephone keypad. As a reminder, today's call is being recorded. I would now like to turn the call over to Ryan Schmidt, Investor Relations for Clover Health. Please go ahead.
Ryan Schmidt: Question and answer session will follow our prepared remarks at that time, if you wish to ask a question. Please press star one on your telephone keypad.
Ryan Schmidt: As a reminder, today's call is being recorded I would now like to turn the call over to Ryan Smith Investor Relations for Clover House. Please go ahead.
Ryan Schmidt: Good afternoon, everyone. Joining me on our call today to discuss the company's first quarter 2024 results are Andrew Toy Culverhouse, Chief Executive Officer, and Terry The company's interim Chief Financial Officer, you can find today's press release and the accompanying supplemental slides in the investor events and presentations section I'm sorry, Bob.
Ryan Schmidt: Good afternoon, everyone. Joining me on our call today to discuss the company's first quarter 2024 results are Andrew Toy, Clover Health's Chief Executive Officer, and Terry Ronan, the company's Interim Chief Financial Officer. You can find today's press release and the accompanying supplemental slides in the Investor Events and Presentations section of our website at investors.cloverhealth.com. This webcast is being recorded, and a replay will be available in the Investor Relations section of Clover Health's website.
Ryan Schmidt: The investors that Cobra <unk> dot com.
Ryan Schmidt: Cost is being recorded and a replay will be available in the Investor Relations section of the corporate website.
Ryan Schmidt: I'd also like to caution you that we may make forward-looking statements during today's call that are subject to risks and uncertainties, including expectations about future performance. Factors that may cause actual results to differ materially from expectations are detailed in our SEC filings, including in the risk factors section of our most recent annual report on Form 10-K and other SEC filings. Information about the non-GAAP financial measures referenced, including a reconciliation of those measures to GAAP measures, can be found in the earnings materials available on our website.
Ryan Schmidt: I'd also like to caution you that we may make forward looking statements. During today's call that are subject to risks and uncertainties, including expectations about future performance factors.
Ryan Schmidt: Factors that may cause actual results to differ materially from expectations are detailed in our SEC filings, including in the risk factors section of our most recent annual report on Form 10-K, and other SEC filings information about non-GAAP financial measures referenced including a reconciliation of those measures to GAAP measures can be found in the earnings materials are available.
Ryan Schmidt: Our website with that I'll now turn the call over to Andrew.
Ryan Schmidt: With that, I'll now turn the call over to Andrew. Thank you.
Andrew: Thank you Ryan.
Andrew Toy: Clover is off to a strong start to 2024, and I'm very excited to share our results and improved full-year guidance with you all today. Overall, first quarter insurance revenue and adjusted EBITDA performance exceeded our expectations. We believe this is evidence that our strategy and strong fundamentals are preparing us well for the future of the Medicare Advantage program. Let's begin with the overarching themes of our results today.
Andrew: <unk> is off to a strong start to 2024 and I'm very excited to share our results and improved full year guidance with you all today overall.
Andrew Toy: Overall first quarter insurance revenue and adjusted EBITDA performance exceeded our expectations.
Andrew Toy: We believe this is evidence that our strategy and strong fundamentals are preparing us well for the future of the Medicare advantage program.
Andrew Toy: Let's begin with the overarching themes of our results today.
Andrew Toy: Firstly, Clover was profitable in Q1 on an adjusted EBITDA basis, and we also have high confidence in achieving full year 2024 adjusted EBITDA profitability. Secondly, we have grown revenues in our profitable insurance business by 8% year over year. Thirdly, given our favorable business outlook, we feel very comfortable in our strong liquidity position, and we maintain our view that Clover has sufficient capital for our operating and growth needs. As such, we are pleased to announce that our Board of Directors has authorized a share repurchase program of up to $20 million of the company's Class A common stock over the next two years.
Andrew Toy: Firstly kluber was profitable in Q1 on an adjusted EBITDA basis, and we also have high confidence in achieving full year 2024, adjusted EBITDA profitability.
Andrew Toy: We have grown revenues in a profitable insurance business by 8% year over year.
Andrew Toy: Thirdly, given our favorable business outlook, we feel very comfortable in our strong liquidity position and we maintain our view that <unk> has sufficient capital for our operating and growth needs and as such we are pleased to announce that our board of directors has authorized a share repurchase program of up to $20 million of the <unk>.
Andrew Toy: Company's class a common stock over the next two years.
Andrew Toy: Fourthly, we believe our strong performance continues to highlight our unique ability to operate a profitable Medicare Advantage plan on a wide network PPO chassis powered by our clearly differentiated care model, leveraging Clover Assistance, Patented Technology, and Clover Home Care's high-touch clinical capability. Next, I'd like to give more color on our core profitability metric, adjusted EBITDA. During the first quarter of 2024, we delivered $7 million of positive adjusted EBITDA.
Andrew Toy: Fourthly, we believe our strong performance continues to highlight our unique ability to operate a profitable Medicare advantage plan on a wide network of P. P. O chassis powered by our clearly differentiated care model, leveraging kluber assistance patented technology, and Kluver, whom cares high touch clinical capabilities.
Andrew Toy: Next I'd like to give more color on our core profitability metric adjusted EBITDA.
Andrew Toy: During the first quarter of 'twenty 'twenty, four we delivered $7 million of positive adjusted EBITDA.
Andrew Toy: We expect this momentum to continue and feel very confident that we will deliver full year adjusted EBITDA profitability. We have therefore significantly improved our guidance for the full year 2024 to a range of positive $10 million to $30 million. Our profitability performance was driven by continued outperformance in our insurance offering fundamentals, including revenue growth and medical management, as well as durable reductions in our adjusted SG&A. For insurance revenue, we are proud that we delivered strong year-over-year revenue growth of 8% while also simultaneously expanding margins.
Andrew Toy: We expect this momentum to continue and feel very confident that we will deliver full year adjusted EBITDA profitability.
Andrew Toy: We have therefore significantly improved our guidance for the full year 'twenty 'twenty four to a range of positive 10 million to $30 million.
Andrew Toy: Our profitability performance was driven by continued outperformance in our insurance offering fundamentals, including revenue growth and medical management as well as durable reductions in our adjusted SG&A.
Andrew Toy: For insurance revenue, we are proud that we delivered strong year over year revenue growth of 8%, while also simultaneously expanding margins.
Andrew Toy: This is a continued step forward in our commitment to growing revenues in a sustainable way. Improvements came from a strong focus on Clover Assistant product advancements, operational enhancements to improve the accuracy of our risk adjustment submissions, and a focus on member retention. We're proud of these improvements, and as a result, we are also raising our full-year insurance revenue guidance to be between $1.3 billion and $1.35 billion. In addition, given our software-centric approach, we strongly believe that we are well positioned to move with agility against the backdrop of industry headwinds, including a lower MA rate environment and the continued phase-in of the new ACC V28 coding rules, to sustain insurance revenue growth in the Going into more detail on the HTC V28 model changes, we feel good about our current and go forward posture. We have three reasons for this.
Andrew Toy: This is a continued step forward in our commitment to grow revenues in a sustainable way.
Andrew Toy: Improvements came from a strong focus on Clover assistant product advancements operational enhancements to improve the accuracy of our risk adjustment submission and they focus on member retention.
Andrew Toy: We're proud of these improvements and as a result, we are also raising our full year insurance revenue guidance to be between $1 3 billion and $1.35 billion.
Andrew Toy: In addition, given our software centric approach we strongly believe that we are well positioned to move with agility against the backdrop of industry headwinds, including a lower M. A rate environment and the continued faith in all did you a C. C V 28 coding rules to sustain insurance revenue grew.
Andrew Toy: In the years to come.
Andrew Toy: Going into more detail on the ACC V 28 model changes, we feel good about our current and go forward posture, we have three reasons for this.
Andrew Toy: Firstly, Clover Assistance has always been focused on chronic disease management and treatment, with accurate risk adjustment coming as a byproduct. As a result, we support CMS' focus on removing codes that may not reflect current costs associated with diseases, conditions, and demographics. Secondly, we are always launching new features for collaborative systems, many based on feedback from our clinician users, and many using advancements in ML and AI, and these enhancements are constantly furthering our mission of early disease identification and management.
Andrew Toy: Firstly Kluver assistance has always been focused on chronic disease management and treatment with accurate risk adjustment coming at the byproduct.
Andrew Toy: As a result, we support CMS focus on removing codes that may not reflect current costs associated with diseases conditions of demographics.
Andrew Toy: Secondly, we are always launching new features for collaborate assisted many based on feedback from our physician users and many using advancements and ml and AI and these enhancements are constantly furthering our mission of early disease identification and management.
Andrew Toy: Thirdly, we believe that long term, we will see continuous improvement in outcomes much like those detailed in our kluber assistant white papers for.
Andrew Toy: Thirdly, we believe that long-term, we'll see continuous improvements in outcomes, much like those detailed in our Clover Assistant White Paper. For example, a year ago, our CKD white paper showed CA usage was associated with the early detection and management of CKD, with an average GFR of 52.6 at diagnosis. Extending the study through April 2023, that average GFR has improved to 55, meaning CKD is now identified even earlier. The original study indicated CA use was associated with diagnosing CKD around 17 months earlier, but the updated data extends that to around 23 months earlier.
Andrew Toy: For example, a year ago, our CK D. White paper showed CA usage was associated with the early detection and management of <unk> with an average GFR of 52.6 at diagnosis.
Andrew Toy: Sterling. This study through April 2023 that average GFR had improved to 55, meaning CK D is now identified even earlier.
Andrew Toy: The original study indicated CA use was associated with diagnosing CK D around 17 months earlier, but the updated data extends back to around 23 months earlier.
Andrew Toy: We're excited about this progress and encourage you to review our CKD paper and other CAY papers on our Investor Relations website. Overall, we feel confident that our approach not only helps us lessen the impact of these market headwinds that are affecting our competitors, but we feel we are well-aligned with the spirit of CMS changes and have already mitigated the eventual impact of HCCB28 via Clover Assist. Let's turn now to medical expenses.
Andrew Toy: We're excited about this progress and encourage you to review our CK D paper and others see a white papers on our Investor Relations website.
Andrew Toy: Overall, we feel confident that our approach not only helps us lessen the impact of these market headwinds that are affecting our competitors, but we feel we are well aligned with the spirit of CMS changes and have already mitigated the eventual impact of ACC B 28 via clue Brett assistant.
Andrew Toy: Let's turn now to medical expenses.
Andrew Toy: You'll recall that during our Q4-23 earnings, we indicated that, unlike other industry participants, we did not believe we were seeing any increased utilization trend. We continue to hold this view, as during the early part of Q1-24, our 2023 claims experience developed quite favorably against prior expectations at year-end 2023. When accounting for that favorable base period development for our 2024 forecast, we now have significant confidence in our ability to deliver 2024 results above our previously issued guidance.
Andrew Toy: Youll recall that during our Q4 'twenty three earnings we indicated that unlike other industry participants we did not believe we were seeing any increased utilization trend.
Andrew Toy: We continue to hold this view as during the early part of Q1 'twenty for our 2023 claims experience developed quite favorably against prior expectations at year end 2023.
Andrew Toy: When accounting for that favorable beef period development for our 'twenty 'twenty four forecast, we now have significant confidence in our ability to deliver 2024 results above our previously issued guidance.
Andrew Toy: That said, we are currently holding a significant amount of IBNR related to early claims volume in the first quarter 2024, primarily as a result of two factors. First, as we completed the transition of our claims processing systems to our new MA Plan Operational Ecosystem during Q1 2024, we've been extremely diligent with claims adjudication to ensure claims are being processed and paid accurately. As such, this resulted in a slowdown in payments and an increase in claims inventory at the end of the quarter.
Andrew Toy: That said, we are currently holding a significant amount of I b NR related to early claims volume in the first quarter 2024, primarily as a result of two factors.
Andrew Toy: First as we completed the transition of our claims processing systems to our U M. A plant operational ecosystem. During Q1 2024, we've been extremely diligent with claims adjudication to ensure claims are being processed and paid accurately.
Andrew Toy: As such this resulted in a slowdown in payments and an increase to claims inventory at the end of the quarter.
Andrew Toy: Also during the course of this its hurdle implementation, we experienced the unexpected industry wide impact of the change healthcare cyber attack that directly impacted us as we relied on change healthcare as our primary claims clearinghouse.
Andrew Toy: Also, during the course of this internal implementation, we experienced the unexpected industry-wide impact of the Change Healthcare cyber attack that directly impacted us as we relied on Change Healthcare as our primary claims clearing company. We quickly pivoted to allow our providers to submit claims through alternate pathways, but claims receipt volume and processing volume remained very low during the second half of Q1. As a result of this, we've included a conservative buffer in our reserve.
Andrew Toy: We quickly pivoted to allow our providers to submit claims to ultimate pathways, but claims receipt volume and processing volume remained very low during the second half of Q1.
Andrew Toy: As a result of this we've included a conservative buffer in our reserving.
Andrew Toy: We have actively monitored this throughout the second quarter and are pleased to say that claims submissions are returning to normal, and we expect our IBNR and claims inventory to normalize over the next few quarters. When accounting for the favorable development in our base 2023 claims experience, coupled with favorable revenue development, we are improving our 2024 MCR guidance to be within a range of 79% to 81%. That said, our historic MCR has been calculated purely on medical, pharmacy, and supplemental benefit expenses, whereas the industry standard for Medicare Advantage is generally to also include quality improvement costs in the loss ratio calculation.
Andrew Toy: We have actively monitored that throughout the second quarter and are pleased to say that claim submissions are returning to normal and we expect our IBM <unk> and claims inventory to normalize over the next few quarters.
Andrew Toy: When accounting for the favorable development in our base 2023 claims experience coupled with favorable revenue development, we are improving our 'twenty 'twenty four MCR guidance to be within a range of 79% to 81%.
Andrew Toy: That said our historic MTR has been calculated purely on medical pharmacy, and supplemental benefit expenses, whereas industry standard for Medicare advantage is generally to also include quality improvement costs in the loss ratio calculation.
Andrew Toy: This is particularly important for Clover, as we invest heavily in healthcare quality via our technology and services, as well as clinically focused member rewards. As such, to further improve transparency in our disclosures, in the future, we intend to also share a new calculation that aligns better with industry standards and includes these other costs in the numerator that we refer to as the Benefits Expense Ratio or BER. While we are not providing the BER this quarter, we expect it to be in the low to mid-80s for the year given the significant investments we make in quality.
Andrew Toy: This is particularly important for kluver as we invest heavily in health care quality via our technology and services as well as clinically focused member rewards.
Andrew Toy: As such to further improve transparency in our disclosures in the future. We intend to also share a new calculation that aligns better with industry standard and includes these other costs in the numerator that we refer to as the benefits expense ratio or P. E. R.
Andrew Toy: While we are not providing the b E. R. This quarter, we expect this to be in the low to mid <unk> for the year given the significant investments we make in quality.
Andrew Toy: I would also note that these costs are currently included in our SG&A, so the BER metric would not affect our adjusted EBITDA calculation but instead provide better clarity into our performance versus industry peers. Given this strong business momentum, I'd like to summarize the improved 2024 guidance we are issuing today. I expect revenue for the insurance line of business to be between $1.3 billion and $1.35 billion.
Andrew Toy: I would also note that these costs are currently included in our SG&A. So the <unk> metric would not affect our adjusted EBITDA calculation, but instead provide better clarity into our performance versus industry peers.
Andrew Toy: Given the strong business momentum I would like to summarize the improved 2024 guidance we are issuing today.
Andrew Toy: Revenue for the insurance line of business to be between $1 3 billion and $1.35 billion.
Andrew Toy: Insurance MCR to be within a range of 79% to 81%, adjusted SG&A to be between $270 million and $280 million, and full year 2024 adjusted EBITDA profitability between positive $10 million to $30 million. We'd also like to clarify the effect of this improved business performance on our cash position and would direct you to slide 14 of our supplemental slides as a reference. First off, we expect to be break-even or slightly positive in our cash flow from operating activities for the full year 2024, excluding the impact from discontinued operations.
Andrew Toy: Insurance MCR to be within a range of 17, 9% to 81%.
Andrew Toy: Adjusted SG&A to be between $270 million and $218 billion.
Andrew Toy: Full year 2024, adjusted EBITDA profitability between positive $10 billion to $30 billion.
Andrew Toy: We'd also like to clarify the effect of this improved business performance on our cash position.
Andrew Toy: Would direct you to slide 14 of our supplemental slides as a reference.
Andrew Toy: First off we expect to be breakeven or be slightly positive in our cash flow from operating activities for the full year 2024, excluding the impact from discontinued operations.
Andrew Toy: As a reminder, last year we announced that we would no longer participate in the ACO REACH program as of January 1st, 2024, and as of that date, it is being treated as discontinued operations in our reporting.
Andrew Toy: As a reminder, last year, we announced that we are no longer participating in the eighth year reached program as of January one 2024, and as of that date. It is being treated as discontinued operations in our reporting.
Andrew Toy: That said, we expect to pay CMS around $39 million in the second half of 2024 relating to our prior ACO REACH participation, which is fully accrued as of March 31st, 2024. We estimate our year-end 2024 total restricted and unrestricted cash, cash equivalents, and investments to be between $388 million and $408 million. As a reminder, we ended 2023 with unregulated liquidity of $137 million, as well as an incremental $74 million of capital and surplus in excess of minimum risk-based capital requirements. This equates to a pro forma year-end 2023 unregulated liquidity of $211 million. On the same basis, we expect pro forma year-end 2024 unregulated liquidity of between $145 million and $165 million.
Andrew Toy: That said, we expect to pay CMS around $39 million in the second half of 'twenty 'twenty four relating to our prior ACO reached participation, which is fully accrued as of March 31 2024.
Andrew Toy: We estimate our year end 2024, total restricted and unrestricted cash cash equivalents and investments to be between 388 million to $408 million.
Andrew Toy: As a reminder, we ended 2023 with unregulated liquidity of $137 billion as well as an incremental $74 million of capital and surplus in excess of minimum risk based capital requirements.
Andrew Toy: This equates to a pro forma year end 2023 unregulated liquidity of $211 billion.
Andrew Toy: On the same basis, we expect pro forma year end 'twenty 'twenty, four unregulated liquidity of between $145 million to $100 million to $165 million.
Andrew Toy: Overall, I believe Kluver is very well positioned to succeed in both 2024 as well as into 2025 and beyond.
Andrew Toy: Overall, I believe Clover is very well positioned to succeed in both 2024 as well as into 2025 and beyond. Our strategy, while historically seen as unusual, is now arguably generating significantly better financial and clinical results than the traditional incumbents, and in a way that is sustainably differentiated. I'd like to thank the Kluver team who have worked very hard to deliver a profitable first quarter on an adjusted EBITDA basis and position themselves as well to build upon this and achieve adjusted EBITDA profitability for the full year 2024, a goal we have been working towards for several years now.
Andrew Toy: Our strategy, while historically seen as unusual is now arguably generating significantly better financial and clinical results than the traditional incumbents and in a way that is sustainably differentiated.
Andrew Toy: I'd like to thank the <unk> team, who has worked very hard to deliver a profitable first quarter on an adjusted EBITDA basis and position us well to build upon this and achieve adjusted EBITDA profitability for the full year 2024.
Andrew Toy: We have been working towards for several years now.
Andrew Toy: I'm incredibly grateful and proud to be a Cloverite. Finally, I'm happy to announce that we've strengthened our leadership team this past quarter as we hired Peter Kuipers as our permanent CFO. He's officially joining the Clover team as CFO this week, so we've spared him from joining us on the call today, but I look forward to introducing him properly during our next earnings call. With that, I'll turn it over to Terry for the financial update.
Andrew Toy: I'm incredibly grateful and proud to be a collaborate.
Andrew Toy: Finally, I'm happy to announce that we've strengthened our leadership team this past quarter as we've hired Peter capers as our permanent CFO.
Terry: He has officially joined the <unk> team as CFO. This week. So we spared him from joining us on the call today, but I look forward to introducing him properly during our next earnings call.
Andrew Toy: With that I'll turn it over to Terry with a financial update.
Terry: Thanks, Andrew the first quarter of 2024 was first and foremost highlighted by significant year over year progress for a GAAP net loss from continuing operations, which improved $57 million to a net loss from continuing operations of $23 million and $80 million.
Terrence Ronan: Thanks, Andrew. The first quarter of 2024 was first and foremost highlighted by significant year-over-year progress on our gap net loss and continuing operations, which improved $57 million to a net loss from continuing operations of $23 million from $80 million, and adjusted EBITDA improved from a loss of $38 million in Q1 of 2023 to a profit of $7 million during Q1 2024. Both of these results reflect Clover continuing to make impressive progress on its path to full year 2024 adjusted EBITDA profitability driven by solid insurance results and better management of spend in adjusted SG&A.
Terrence Ronan: And adjusted EBITDA improved from a loss of $38 million in Q1 of 2023 to a profit of $7 million during Q1 2024.
Terrence Ronan: Both of these results reflect club are continuing to make impressive progress on its path to full year 2024, adjusted EBITDA profitability, driven by solid insurance results and better management of spend and adjusted SG&A.
Terrence Ronan: Starting with our insurance performance MCR.
Terrence Ronan: Starting with our insurance performance, MCR improved to 77.9% this quarter from 86.6% in Q1 of last year, with insurance revenue growing 8% year-over-year to $342 million. As a reminder, our MCR does not include the quality improvement expenses that Andrew mentioned earlier, and we intend in the future to improve our transparency here to align better with industry standard loss ratio calculations. That said, this MCR improvement of nearly 900 basis points and incremental revenue growth was driven by a continued focus on optimizing operations and also impacted by favorable prior period development flowing in from our strong 2023 performance.
Terrence Ronan: <unk> improved to 77, 9% this quarter from 86, 6% in Q1 of last year with insurance revenue growing 8% year over year to $342 million.
Terrence Ronan: As a reminder, our Mci does not include the quality improvement expenses that Andrew mentioned earlier, and we intend in the future to improve our transparency here to align better with industry standard loss ratio calculations.
Terrence Ronan: That said, it's MTR improvement of nearly 900 basis points and incremental revenue growth was driven by our continued focus on optimizing operations ensuring processes to increase the accuracy of plant claims payment at risk adjustment.
Terrence Ronan: The added benefit of our transformation through <unk>.
Terrence Ronan: And we platform our insurance operations.
Terrence Ronan: And also impacted by favorable prior period development quality and I'm, a strong 2023 performance.
Terrence Ronan: We are also focused on significantly increasing value delivered to our Cam management platform underpinned by club assistant and cover homecare, which helps us to deliver proactive care management at scale and bend the cost curve for our six members.
Terrence Ronan: We have also focused on significantly increasing value delivered through our care management platform, underpinned by Clover Assistant and Clover Home Care, which helps us deliver proactive care management at scale and bends the cost curve for our sickest members.
Terrence Ronan: On the adjusted SG&A front I'm equally excited about the durable progress we've shown in our operating expenses generating a year over year reduction in adjusted SG&A at 12% this quarter to $75 million.
Terrence Ronan: On the adjusted SG&A front, I'm equally excited about the durable progress we've shown in our operating expense, generating a year-over-year reduction in adjusted SG&A of 12% this quarter to $75 million, as compared to Q1 of 2023. Before I touch on the improvements that drove this large optimization, I do want to briefly call out that we've booked a higher claims adjustment expense than is typical. $3 million this quarter compared to an immaterial impact during the first quarter of 2023. This year's increase is due to the claims payment-related disruptions that Andrew touched on and increases our IBNR and claims inventory estimates.
Terrence Ronan: Compared to Q1 of 2023.
Terrence Ronan: Before I touch on the improvements that drove this large optimization I do want to briefly call out that we booked a higher claims adjustment expense than is typical.
Terrence Ronan: The $3 million this quarter compared to an immaterial impact during the first quarter of 2023.
Terrence Ronan: This year the increase is due to the claims payment related disruptions that Andrew touched on at the increases are IV and claims inventory estimates.
Terrence Ronan: To be clear, this is simply an accounting reserve rather than a cash expense that temporarily elevated our reported Q1 adjusted SG&A and is an expense that we expect to reverse as we resolve the claims backlog associated with this disruption. That said, our SG&A improvement this quarter was driven primarily by our previously mentioned shift to our new MA plan operational ecosystem that we've successfully implemented, our workforce rationalization announced last year, and our exit from the non-insurance ACO program.
Terrence Ronan: To be clear this is simply an accounting was there rather than a cash expense.
Terrence Ronan: Temporarily elevated our reported Q1 adjusted SG&A.
Terrence Ronan: As an expense that we expect to reverse as we resolve the claims backlog associated with this disruption.
Terrence Ronan: That said, our SG&A improvement this quarter was driven primarily by our previously mentioned shift to a new MAA plan operational ecosystem that we've successfully implemented.
Terrence Ronan: Workforce rationalization allowance last year.
Terrence Ronan: And our exit from the non insurance ACO program.
Terrence Ronan: Our Q1 results give us confidence that we will meet our full year adjusted SG&A guidelines. Turning to the balance sheet, we ended Q1 2024 with total restricted and unrestricted cash, cash equivalents, and investments totaling $440 million on a consolidated basis, with $133 million at the parent entity and unregulated subsidiary level. To provide a little more context, it's the expected $39 million cash settlement to CMS for our 2023 ACO REACH performance that Andrew mentioned.
Terrence Ronan: Our Q1 results give us confidence that we will meet our full year adjusted SG&A guidance.
Terrence Ronan: Turning to the balance sheet. We ended Q1 2024 with total restricted and unrestricted cash cash equivalents and investments totaling $440 million on a consolidated basis was $133 million at the parent entity and unregulated subsidiary level.
Terrence Ronan: You're able to calculate this by subtracting the assets related to discontinued operations from the liabilities related to discontinued operations line items from our consolidated balance sheet in our quarterly 10-Q filings. This expected cash outflow includes both our shared loss and a repayment of working capital obligations associated with the program and will impact both consolidated and unregulated balances. Once settled, this will be the final cash outflow we expect to pay in connection with the ACO REACH program.
Terrence Ronan: I had a little more context, the expected $39 million cash settlement.
Terrence Ronan: Our 2023 ACO reach performance that Andrew mentioned.
Terrence Ronan: We are able to calculate this by subtracting the assets related to discontinued operations from the liabilities related to discontinued operations line items from our consolidated balance sheet with our quarterly 10-Q filing.
Terrence Ronan: This expected cash outflow includes both our shared loss and a repayment of working capital obligations associated with the program.
Terrence Ronan: Will impact both consolidated and unregulated balances.
Terrence Ronan: Once settled.
Terrence Ronan: Final cash outflow, we expect to pay in connection with the ICA ACO reach program.
Terrence Ronan: Lastly, to reiterate Andrew's earlier comments, we believe we will be break-even to slightly positive cash flow from operating activities during the full year of 2024, excluding the impact from discontinued operations. And as such, we maintain our view that Clover has sufficient capital for our operating and growth needs. I hope that this added clarification gives you all a sense of the confidence we have in our liquidity position, and we will continue to prudently manage it.
Terrence Ronan: Lastly to reiterate Andrew's earlier comments, we believe we will be breakeven to slightly positive cash flow from operating activities. During the full year of 2024, excluding the impact from discontinued operations.
Terrence Ronan: And as such we maintain our view that Clover has sufficient capital for our operating and growth needs.
Terrence Ronan: I hope that this added clarification gives you all a sense of the confidence we have in our liquidity position, we will continue to prudently manage.
Terrence Ronan: In summary, I'd like to emphasize that clover to limit impressive progress on its path to profitability this quarter.
Terrence Ronan: In summary, I'd like to emphasize that Clover delivered impressive progress on its path to profitability this quarter, with great year-over-year improvements in each of its key operating metrics. We look forward to sharing more updates on our financial progress in the coming quarters. With that, I'll turn the call back to Andrew for some closing comments.
Terrence Ronan: Year over year improvements at each of its key operating metrics.
Andrew Toy: We look forward to sharing more updates on our financial progress in the coming quarters.
Terrence Ronan: With that I'll turn the call back to Andrew for some closing comments.
Andrew Toy: Thanks Terry.
Andrew Toy: Thanks, Terry. Before we head to Q&A, let me summarize the key points of the quarter and give some high-level, forward-looking commentary. One, we exceeded our expectations for adjusted EBITDA and were adjusted EBITDA profitable in Q1. We have high conviction that we will be profitable for the full year 2024, and as such, we have significantly increased our full year 2024 adjusted EBITDA guidance. 2.
Andrew Toy: Before we head to Q&A, let me summarize the key points of the quarter and give some high level forward looking commentary.
Andrew Toy: One we exceeded our expectations on adjusted EBITDA and <unk>.
Andrew Toy: Adjusted EBITDA profitable in Q1.
Andrew Toy: Have high conviction that we will be profitable for the full year 2024, and as such we have significantly increased our full year 2024, adjusted EBITDA guidance.
Andrew Toy: Two in the first quarter, we also exceeded our expectations for insurance revenue, which we grew by 8% year over year, and we improved our full year insurance revenue outlook.
Andrew Toy: Three we feel good about our balance sheet and liquidity profile and believe we do not need additional capital at this time.
Andrew Toy: In the first quarter, we also exceeded our expectations for insurance revenue, which grew by 8% year-over-year, and we improved our full-year insurance revenue output. Three, we feel good about our balance sheet and liquidity profile and believe we do not need additional capital at this time. Given the tremendous improvement in our fundamental insurance operations and profitability arc, I'd like to give some commentary on our forward-looking strategy, particularly in light of some recent regulatory shifts.
Andrew Toy: Given the tremendous improvement in our fundamental insurance operations and profitability arc I'd like to give some commentary around our forward looking strategy, particularly in light of some recent regulatory shifts.
Andrew Toy: Firstly, we are in the middle of planning for a critical 2025 year. There are a number of changes in the industry, including the continued phase in of the HGTV 28 changes I mentioned earlier, the introduction of the <unk> changes to part D as well as having a three star plan year for Clover.
Andrew Toy: Firstly, we are in the middle of planning for a critical 2025 year. There are a number of changes in the industry, including the continued phase-in of the HCV28 changes I mentioned earlier, the introduction of the IRA changes to Part D, as well as having a three-star plan year for Clover. Overall, I believe that we are in a good position regarding these changes. As I said before, our Clover Assistant platform already conforms with many of the V28 changes, so we feel we are better positioned than others in the industry in that regard.
Andrew Toy: Overall I believe that we are in a good position regarding these changes as I said before our Kluver assistant platform already conforms with many of the V 28 changes. So we feel we are better positioned than others in the industry in that regard.
Andrew Toy: With respect to Part D, we believe we have a powerful asset in Clover Home Care, which already services our most vulnerable members. These are the same at-risk members who often have very high Part D costs and enter the catastrophic phase.
Andrew Toy: With respect to part D. We believe we have a powerful asset <unk> homecare, which already services are most vulnerable members.
Andrew Toy: These are the same at risk members, who often have very high part D costs and entered the catastrophic phase now.
Andrew Toy: As such, we are already looking at ways to serve this population even better. Given that our unique care management platform has always been anchored in the earlier identification and management of disease, we feel better positioned to sail upwind into these changes in a way other plans probably cannot, in particular those who have rapidly expanded their presence in the PPO market in recent years. Additionally, we are not yet fully optimized on the platform. Throughout the rest of this year, we plan to continue to release new Clover assistance features to better identify and service our riskiest members. We also have been absolutely focused on star rating measures.
Andrew Toy: As such we are already looking at ways to serve this population even better.
Andrew Toy: Given that our unique care management platform has always been anchored on the earlier identification and management of disease, we feel better positioned to sail up wind into these changes in a way other plans probably cannot in particular, those who have rapidly expanded their presence in the PPA market in recent years.
Andrew Toy: Yeah.
Andrew Toy: Additionally, we are not yet fully optimized on the platform.
Andrew Toy: Throughout the rest of this year, we plan to continue to release, New Kluver assistant features to better identify and service. Our riskiest members. We also have been absolutely focused on star rating measures, we've seen tremendous improvements in certain areas such as heaters measures.
Andrew Toy: We've seen tremendous improvements in certain areas, such as HEDIS measures, and we're investing in additional capabilities to support CA providers for even further improved STARS and quality performance. To help drive all these CARE platform improvements, we are also adjusting our operating structure. Starting last month, we established an affiliate entity for the purpose of unifying Clover Health's non-clinical quality improvement services offering. This affiliate will begin by servicing our health plan in New Jersey and, in the future, will also service third parties.
Andrew Toy: We're investing in additional capabilities to support CA providers for even further improved stars and quality performance.
Andrew Toy: To help drive all of these care platform improvements. We are also adjusting our operating structure.
Andrew Toy: Starting last month, we established an affiliate entity with a purpose of unifying kluver health non clinical quality improvement services offerings.
Andrew Toy: This affiliate will begin by servicing our health plan in New Jersey and in the future will also service third parties.
Andrew Toy: Our goal here is twofold. First, we believe this structure will drive higher quality and better health outcomes for our members in New Jersey. And second, by unifying management of our health information technology and care coordination services, we will drive a deeper focus on our partnerships with local physicians. Turning now to core operational SG&A, I would note that the advent of ML and AI has traditionally been focused on our CA platform, but I thoroughly believe in the transformative power of AI on core operational efficiency and SG&A improvement.
Andrew Toy: Our goal here is twofold first we believe this structure will drive higher quality and better health outcomes for our members in New Jersey.
Andrew Toy: By unifying management of our health information technology and care coordination services, we will drive deeper focus on our partnerships with local physicians.
Andrew Toy: Turning now to core operational SG&A I would note that the advent of ml and AI has traditionally been focused on our C. Eight platform, but I certainly believe the transformative power of AI on core operational efficiency and SG&A improvement.
Andrew Toy: As such, we are very focused within Clover on helping bring AI into our operation. Here, I'm talking about places where we can add to Member Delight while significantly reducing costs, for example, in the areas of customer service, care coordination, and claims processing.
Andrew Toy: As such we are very focused within Cooper on helping bring AI into our operations.
Andrew Toy: Here I'm talking about places, where we could add to remember delight, while significantly reducing costs. For example in the areas of customer service care coordination and claims processing.
Andrew Toy: We will therefore be maintaining a focus on pursuing SG&A opportunities through this year and next. Given all this, our top-level goal at Clover is to maintain the momentum that we have developed in the last couple of years and keep on refining our core fundamentals. We expect our strong anticipated adjusted EBITDA and MA plan performance in 2024, as well as the opportunity to continue to deliver sGNA optimization, to provide us with a great starting point for 2025 and put us in a much better position than our peers to handle the various industry headwinds.
Andrew Toy: We will therefore be maintaining a focus on pursuing SG&A opportunities through this year and next.
Andrew Toy: Given all of this our top level go at Kluver is to maintain the momentum that we have developed in the last couple of years and keep on refining our core fundamentals.
Andrew Toy: We expect our strong anticipated adjusted EBITDA and <unk> plant performance in 2024, as well as the opportunity to continue to deliver SG&A optimization should provide us a great starting point for 2025 and put us in a much better position than our peers to handle the various industry headwinds <unk>.
Andrew Toy: During the last two bid seasons, we've employed a disciplined approach to benefit design, as evidenced by our strong 2023 performance and improved guidance for 2024. This disciplined approach has allowed our MA plan to experience a stable membership base, allowing for better line of sight into revenue and medics drivers as we manage our cohort. We plan to continue this approach into 2025 and feel that it positions us well compared to competitors. It is too early in the year to provide anything more specific as we are in the midst of preparing our 2025 bids, but we believe that we have a strong plan in place to address the various industry and star rating challenges through continued discipline in our plan design.
Andrew Toy: During the last two bid seasons, we've employed a disciplined approach to benefit design as evidenced by our strong 2023 performance and improved guidance for 2020 for.
Andrew Toy: This disciplined approach has allowed our MA plan to execute.
Andrew Toy: To experience a stable membership base, allowing for better line of sight into revenue at medics drivers as we manage our cohorts.
Andrew Toy: We plan to continue this approach into 2025 and feel that it positions us well compared to competitors.
Andrew Toy: It is too early in the year to provide anything more specific as we are in the midst of preparing our 2025 bids, but we believe that we have a strong plan in place to address the various industry and star rating challenges through continued discipline in our plan design.
Andrew Toy: Regarding revenue growth for 2025, we will maintain our plan design discipline and focus on once again delivering top-line revenue growth of high single digits, even at three stars, for 2025 with medics. We intend to maintain our focus on medics in both Part C and Part D. And on the sGNA front, I would look for us to deliver significant sGNA efficiencies, as evidenced by our guide, that will fall directly to our
Andrew Toy: Regarding revenue growth for 2025, we will maintain our plan design discipline and focus on once again delivering top line revenue growth of high single digits, even at three stars for 2025.
Andrew Toy: With medics, we intend to maintain our focus on medics at both part C and part D.
Andrew Toy: And on the SG&A front I would look for us to deliver significant SG&A efficiencies as evidenced by our guide that will fall directly to our bottom line.
Andrew Toy: I believe these changes have the opportunity to be quite sizable and could be commensurate with the improvements we have delivered each year in the last couple of years. We look forward to providing an update here later in the year as we aim to continue to improve our Clover assistance software, enhance our robust home care capabilities for our sickest members, and execute upon initiatives to improve our business model to provide better care management for our members. Once again, thank you to everyone, and I very much look forward to delivering an adjusted EBITDA profitable Clover for the full year 2024. On that note, let's go to the questions.
Andrew Toy: I believe these changes have the opportunity to be quite sizable and could be commensurate with the improvements we have delivered each year in the last couple of years.
Andrew Toy: We look forward to providing an update here later in the year as we aim to continue to improve our kluver assistance software enhance our robust home care capabilities for our stick with members and execute upon initiatives to improve our business model to provide better care management for our members.
Andrew Toy: Once again, thank you to everyone and I very much look forward to delivering an adjusted EBITDA profitable clever for full year 2024.
Andrew Toy: On that note, let's go to questions.
Andrew Toy: Yeah.
Operator: We will now be taking questions from Clover's research analysts. At this time, if you wish to ask a question, please press star and 1 on your telephone keypad. You may remove yourself from the question queue by pressing star and 2.
Speaker Change: We will now be taking questions from Clos versus research analysts at this time, if you wish to ask a question. Please press star one on your telephone keypad you may remove yourself from the question queue by pressing star and two.
Speaker Change: In the interest of time, we ask that you. Please limit yourself to one question and one quick follow up.
Operator: In the interest of time, we ask that you please limit yourself to one question and one quick follow-up. We'll take our first question from Richard Close with Canaccord Genuity. Please go ahead. Your line is open.
Operator: We will take our first question from Richard close with Canaccord Genuity. Please go ahead. Your line is open.
Richard Collamer Close: Yeah, Thanks, Andrew Congratulations on the progress.
Richard Collamer Close: Yeah, thanks, Andrew. Congratulations on the progress.
Richard Collamer Close: Yes.
Richard Collamer Close: Excuse me, I was wondering if you could just sort of walk us through your thoughts on the progression of adjusted EBITDA through the rest of the year. I guess there are a lot of moving parts. Obviously, what you're doing with respect to the change healthcare hack and some of the other dynamics. So if you could just, you know, walk us through maybe that quarter and how you're thinking about the quarterly progression, that would be helpful.
Richard Collamer Close: I was wondering if you could.
Richard Collamer Close: Just sort of walk us through.
Richard Collamer Close: Your thoughts on the progression of adjusted EBIT through the rest of the year.
Richard Collamer Close: I guess theres a lot of moving parts.
Richard Collamer Close: Obviously, what youre doing with respect to the change healthcare.
Richard Collamer Close: Hack them and.
Richard Collamer Close: Some of the other dynamics. So if you could just walk us through maybe the quarter, how youre thinking about the quarterly progression that would be helpful.
Speaker Change: Yeah. Thanks, Richard I appreciate it so as we said in remarks, a couple of different dimensions first of all.
Andrew Toy: Yeah, thanks, Richard. I appreciate it. So, as we said in the remarks, there are a couple of different dimensions.
Andrew Toy: Development from 2023 went.
Speaker Change: Well from our perspective, and we feel comfortable about trend and so that's what flows now into our forecasting for this year that gives us confidence in the guide and the improvement in the guide that we provided today.
Andrew Toy: First of all, development from 2023 went well from our perspective, and we feel comfortable about the trend. And so that's what flows now into our forecasting for this year. That gives us confidence in the guide and the improvement in the guide that we provided today.
Andrew Toy: We do have that higher level related to change and our operational transition that I alluded to. And so, what that basically means is that we feel good about the trend, but there's a little bit more, a little bit less visibility than we would normally have, and we expect that to clear out through the rest of the year. So, we'll provide more updates there as the year progresses, but we are clearing out that backlog.
Andrew Toy: We do have that higher <unk> related to change in our operational transition that I alluded to.
Andrew Toy: And so what that basically means is that we feel good on the trend, but you know, there's a little bit more a little bit less visibility than we would normally have and we expect that to clear out through the rest of the year. So we'll provide more updates there as the as the year progresses, but we are clearing out that backlog now what I would say also is.
Andrew Toy: Q2, generally for us would have a more favorable seasonality in our in our normal trend and so what that would mean is that we would have a more favorable EBITDA progression in Q2, and we would judge generally have a less favorable progression in Q4 and between all of that.
Andrew Toy: Now, what I would also say is that Q2 generally for us would have a more favorable seasonality in our normal trend. And so what that would mean is that we would have a more favorable progression in Q2, and we would generally have a less favorable progression in Q4, and between all those seasonal aspects, that would flow into our guide.
Andrew Toy: Seasonal aspects that would flow into our guide.
Speaker Change: Okay, and then with respect to the new calculation.
Richard Collamer Close: Okay, and then with respect to the new calculation, I guess getting more in line with, you know, the competitors out there. Will you be providing that? I guess on a quarterly historical basis so we can see that trend, or any comments there would be helpful.
Richard Collamer Close: I guess get them more in line with.
Richard Collamer Close: Yes.
Richard Collamer Close: <unk> is out there will you be providing that.
Richard Collamer Close: I guess on a quarter quarterly historical basis, so we can see that trend or.
Richard Collamer Close: And any comments there would be helpful.
Andrew Toy: Yep, great question. Our intention is, yes, to provide that in a backward look as well, so you can see how that actually progressed historically. And so it would match up with how we have provided the MCR in the past. You could see how the BER would flow as well.
Speaker Change: Yeah, Great question, our intention is yes to provide that with in a backward look as well. So you can have that see how about actually progressed to historically and so it would match up with how we provide the MCR in the past you could see how the B E.
Andrew Toy: Slow as well.
Andrew Toy: And will that be in the 10-Q filing, or is that something that will come next quarter when you report?
Speaker Change: And will that be in the 10-Q filing or is that something that comes next quarter. When you report.
Speaker Change: Oh, Yes. This is more of a heads up for that this will happen next quarter I'm. So for now is the way we've always done it with the MCR and then we will provide the new <unk> calculation with.
Andrew Toy: Oh, yes, this is more of a heads-up for that. This will happen next quarter. So for now, it's the way we've always done it with the MCR, and then we will provide the new BER calculation with some of the historical numbers next quarter. Okay, thanks.
Andrew Toy: With some of the historical numbers next quarter.
Richard Collamer Close: Okay, thank you. I'll jump back in the queue.
Speaker Change: Okay. Thank you I'll jump back in the queue.
Speaker Change: Great. Thank you.
Speaker Change: And as a reminder, research analysts cant registered to ask a question by pressing star and one well.
Operator: And as a reminder, research analysts can register to ask a question by pressing star and one. We'll take our next question from Jason Cassarola with Citigroup. Please go ahead; your line is open.
Jason Paul Cassorla: We'll take our next question from Jason <unk> with Citigroup. Please go ahead. Your line is open.
Jason Paul Cassorla: Hey, everyone. Thanks for the question Ben Ross you're on the line for Jason.
Jason Paul Cassorla: Hey, everyone. Thanks for the question. You're about Ben Rossi on the line here, Jason. So just revisiting that coming on the quarterly cadence for 2024 MLR into the new definition, you mentioned the IDNR and plans to do adjudication normalization. But can you give us a sense of maybe the magnitude of these step changes over the next few quarters?
Jason Paul Cassorla: The magnitude of the bridged BER, do you mean?
Jason Paul Cassorla: Oh, just revisiting that kind of on a quarterly cadence for 2024 MLR under the new definition, you mentioned the idea of alright, Thanks, Judy adjudication normalization, but can you give us a.
Jason Paul Cassorla: Maybe.
Jason Paul Cassorla: <unk> would have these step changes over the next few quarters.
Jason Paul Cassorla: The magnitude of the of the bridge to <unk> you mean.
Jason Paul Cassorla: Yeah, and step up, step down, quarter to quarter. Yeah, so we don't, we're not providing any of the, any quarter to quarter information there right now.
Speaker Change: Yes, and its step up step down quarter to quarter.
Andrew Toy: Yeah, so we don't, we're not providing any of the, any quarter to quarter information there right now. Like I said, for the new BER calculation, we will provide that next quarter. But what I said, did say in the comments, was roughly, you could think about the full year BER mapping to our MCR guidance that the BER would be in the low to mid 80s. And that would provide a more apples-to-apples comparison to industry peers.
Jason Paul Cassorla: Yes, so we don't we're not providing any of the any quarter to quarter information there right now like I said for the <unk> New calculation, we will provide that next quarter, but what I said did say in the comments was roughly you can think about the full year B E. R mapping to RMC our guidance at the <unk>.
Andrew Toy: Low to mid eighties, and that would provide a more apples to apples comparison to industry peers.
Speaker Change: Okay got it thanks.
Operator: And once again, our research analysts can register to ask a question by pressing star and 1. And we'll take a follow-up from Richard Close on Ganacord Genuity.
Andrew Toy: Once again, our research analysts can register to ask a question by pressing star one.
Richard Collamer Close: Or it will take a follow up from Richard close with Canaccord Genuity.
Richard Collamer Close: Yeah, I had two follow-ups really quick. You know, considering, I guess, the higher utilization that has been plaguing the sector over the last several quarters, I'm curious how the provider market is reacting, and, specifically, are they more receptive to using Clover Assistant now? Have you noticed any change over the last couple quarters?
Richard Collamer Close: Yes, I had two follow ups really quick.
Richard Collamer Close: Considering.
Richard Collamer Close: I guess the higher utilization.
Richard Collamer Close: <unk> been plaguing.
Richard Collamer Close:
Richard Collamer Close: This sector over the last several quarters.
Richard Collamer Close: I'm curious how the provider market.
Richard Collamer Close: Is.
Richard Collamer Close: Reacting and I guess, specifically are they more receptive to utilizing clover assistant.
Richard Collamer Close: Now have you noticed any change over the last couple of quarters.
Andrew Toy: Great question there. I think the way we think about Clover Assistance is that it's a great way for providers to improve their clinical capabilities. It's also a great way for them to enter into value-based care. So that's definitely something which we're exploring, and we're seeing a lot of interest in our model because I think that some of the other ways of approaching value-based care in Massachusetts are coming into a little bit more of a challenging environment. So overall, I think that, yes, there is definitely an interest in looking at other models from the provider side.
Speaker Change: Great Great question, there I think the way, we think about Clover assistant is that it's a great way for our providers to improve their clinical capabilities. It's also a great way for them to enter into value based care. So that's definitely something which we're exploring and we're seeing a.
Andrew Toy: A lot of interest in our model because I think that some of the other ways of approaching value based care in MAA are coming into a little bit more of a challenging environment. So overall I think that yes. There is definitely interest in looking at other models in the provider side.
Speaker Change: Okay and then my second question is the.
Richard Collamer Close: Okay, and then my second question is the emergence of this affiliate that you talked about in terms of your operating structure and focused on New Jersey. Can you just go into a little bit more on that, exactly? What is that? What was the genesis of it? Why only New Jersey? And then it sounds like you're looking to market that to other managed care organizations. If you can just go into that, that would be helpful. Yeah, when we talk about that affiliate organization,
Richard Collamer Close: The emergence of this affiliate.
Richard Collamer Close: You talked about in terms of your operating structure and focused in on New Jersey can you just go into a little bit more on that.
Richard Collamer Close: At exactly what is that.
Richard Collamer Close: What was the Genesis of it why only new Jersey.
Richard Collamer Close: And then it sounds like Youre looking to market that to other managed care organizations. If you can just go into that that would be helpful.
Richard Collamer Close: Yeah, when we talk about that affiliate organization. What we're looking at there is we feel like we have a tremendous way to deliver high quality in new Jersey clinical quality through technology through services that include Clover assistant, but other technologies as well as well as our home care capabilities.
Andrew Toy: Yeah, when we talk about that affiliate organization, what we're looking at there is we feel like we have a tremendous way to deliver quality in New Jersey, clinical quality through technology, through services that include Clover Assistant, but other technologies as well, as well as our home care capabilities. And so, between all of those capabilities that we have in the market in New Jersey, we believe that we are already investing so much in that, that it makes sense to perhaps offer that to third parties in the future. No more to share there right now, but that's the genesis of that.
Andrew Toy: And so between all of those.
Andrew Toy: Capabilities that we have in market in New Jersey, we believed that we were already investing so much in that that it makes sense to perhaps offer that to third parties in the future no more to share there right now, but that's the genesis of that thinking.
Speaker Change: Okay. Thank you.
Andrew Toy: Yeah.
Speaker Change: And this concludes the Q&A portion for today's conference I'd now.
Operator: And this concludes the Q&A portion of today's conference. I'd now like to turn the call back over to Andrew Toy for any additional or closing remarks.
Andrew Toy: I'd like to turn the call back over to Andrew toy for any additional or closing remarks.
Andrew Toy: Alright, well. Thank you for the questions appreciate them as always so.
Andrew Toy: All right. Well, thank you for the questions. I appreciate them as always. So to close, we believe that Clover Health as it stands today is really at an inflection point. In summary, firstly, we exceeded our expectations for Q1 results in insurance revenue and adjusted EBITDA. Secondly, we've improved our insurance revenue and adjusted EBITDA guidance for full year 2024. And lastly, we announced that our Board of Directors has authorized a share repurchase program of up to $20 million of the company's Class A common stock over the next two years.
Andrew Toy: So to close we believe that Kluver health at a stand today is really added inflection points in summary, firstly, we exceeded our expectations for Q1 results on insurance revenue and adjusted EBITDA.
Andrew Toy: Secondly, we've improved our insurance revenue and adjusted EBITDA guidance for full year 2024, and lastly, we announced that our board of directors has authorized a share repurchase program of up to $20 million of the company's class a common stock over the next two years.
Andrew Toy: We believe that we are the only technology powered managed care company, whereby our different differentiated care management platform <unk> assistant <unk> homecare that aims to deliver better care on a wide network PPO chassis.
Andrew Toy: We believe that we are the only technology-powered managed care company via our differentiated care management platform in Clover Assistant and Clover HomeCare that aims to deliver better care on a wide network PPO chassis. This is the future of Medicare Advantage, and we look forward to continuing to lead in it. Thank you all for your continued interest in our company, and I look forward to updating you on our progress towards achieving our goals in the coming quarters. Thanks again.
Andrew Toy: This is the future of Medicare advantage, and we look forward to continuing to lead in this aspect.
Andrew Toy: Thank you all for your continued interest in our company and I look forward to updating you on our progress towards achieving our goals in the coming quarters. Thanks again.
Speaker Change: This concludes today's Clover Health's first quarter 2024 earnings call and webcast. You may disconnect. Your line at this time and have a wonderful day.
Operator: This concludes today's Clover Health's first quarter 2024 earnings call and webcast. You may disconnect your line at this time and have a wonderful day.
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