CLOV - Earnings call transcript Q3 2021 | Clover Health Investments, Corp.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and thank you for standing by. Welcome to the Clover Health's Third Quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]. to Derrick conference Investor Nueman, like first to Relations. now today, speaker Vice would hand over the your I President of Thank you. Please ahead. go

Derrick Nueman

everyone. afternoon, Good

Joining CFO, Mark Vivek our CTO, me today Herbers. Toy; our Andrew interim President and on CEO, our and call the Garipalli; is

call discuss The quarter your third recorded. being will recent trends, is We answer and results, questions. today

today's statements ended filings, Annual December expectations website ended those for filings, SEC (ph). and our reconciliation the turn like the actual are may quarterly Before third that quarter Report report results during Factors our caution the our available we our also materials in can including found including periodic about you release, XX, call With be XXXX. quarter XXth, a risks for the available Form we are to forward-looking remind subject Form-XX-Q cause from detailed SEC are uncertainties. that Risk may to get on to Factors also started, measures, to GAAP earnings materially measurement I in our our cloverhealth.com. on non-GAAP differ of financial including September call Vivek I year on the to measures XXXX. Information XX-K that And that you will section in our materials, to over website. would that, including now on I'd referenced, the like make earnings of

Vivek Garipalli

decrease plans was addressing complemented public to in access one us the head without [Indiscernible] Assistant third compromising and also important quality, Thanks, us MCR. We a or Clover's believe record platform our significant enables issues, Derrick. today. most deliver Clover network of helped equity. wide on, while thanks drive in policy lower technology the And and growth joining everyone quarter by for cost

of And Getting MA we firmly Company every serve the of living our in Our as more white that is Approximately sustainable paper life mission who is communities based variety of prototype have of members, all the XX% the Healthcare on of key of identify, we is extensive a highlights XX% is health Friday MA. for system, that and quarter. been approach and deprivation objective score. it. an approximately create read our a members, than are to self broader I identified the and proud half into area on a create how as index a improve our stakeholders. top track, are We strongly that to details healthcare works to typical recommend our plan communities minorities. the from our equity summary high-performing published on equitable a you-all We

due contracting, Our well than averages. above management year-over-year direct revenue was our million, a Clover doubled under the XXX% MA of industry more continued business and launch Lives $XXX year-over-year. up to to grow

trillion-dollar on differentiator of with for doing it's driving while beneficiaries Our been scale. break-even this a MCR underserved returning who we minority MCR the points see significant competitors in vs. PCP to be under or technology on a helped Medicare which market and Clover a physician XXXX basis around year-over-year gives we evidenced management, us be fee-for-service basis market GAAP lives Medicare wide has can have. positive Medicare, Advantage members over revenue use next-generation the access a network those don't. growth a Medicare a enablement, margins. healthcare we points And companies Clover Medicare operating Medicare a improvement to drive us saw in by of original where who and believe ability the MA and market CA addressable our much of Clover in is larger, impact The via our We Assistant believe building typical more similar we're contracting. the centered in serviceable, the a market Assistant Advantage quarter, and providers compared the equity. in are both contracting, MA and as potential than and With direct health improved fee-for-service. second XXX both This direct nearing pursue we to continues by differential full to

just decision-making. is member affordability and important but with approach a minority plant the working more network new our spite physician of in were is MA also our grow accomplish operational proof ability upgrade over this traditional increase execution, network upstarts we provides access improved and Our X-XX that recent population highlight on to to only This to significant wide think open in We have XXXX. will to in a financial the have sustainable that is while in two, operating able incumbents, significantly recent the approach or avoided. X.X clinical growth, A stars about areas, next not and our us and continue stars. driving higher a is year next of years that it but average. as most point PPO than the as does wide geographic we upgrade historically the also Not benefit the with

in something are Our which achieving now focus is year XXXX. striving accomplish towards measurement we stars, X.X to

the is of our to stars excited Medicare about upgrade, I'm evolving While policy and our I'm recent proud approach. support results equally

is summary health on are identified a Medicare our high were policymakers focused a has of leader XX% improving we equity, MA health health COVID-XX minorities, performing equity members who of nearly on plan for equity as score. the Medicare First a Advantage in and self-identify based population. prototype Clover

value risk policy incentives. around scrutiny our designed and we We coating. any model from dramatically towards to that when capitation will zero to on support especially incentives factor full that increase practices ensure it adjustment also directly comes perverse to that employment-based or increased model risk create for with heightened incentives there the models. payment network clinical vigorously focuses models proposals increased rigor be adjustment, ranging Clover's indirectly, on Second, narrow expect is

will on network open network there earlier. that challenges attractive support is Assistant for not differentiator, narrow a we discussed competitors. true believe Clover populations wide we care be 's a are as growth which financially for to unlocks ability plans Finally, management

Another the validation specifics roughly of Clover's ability PPO Andrew call a MA. in by a With Medicare is of to driving compared has as a the healthcare how competing is to the of is MA CAGR the double it we that, to the growth broader and grown markets of reaffirms let part XXXX. over at short, and believe which market, demonstrated important In difference. highlights, our about approach we're Clover massive This eligibles, in the long-term right HMO the swath our improve talk approach our me hand to for potential. around Assistant since

Andrew Toy

proud results we of quarter. similarly Vivek. Thanks I reported the this am

to we're off physicians As Clover approaches, all to and unlike Assistant transform that choice give help will to us a patients, After CA vision we constituents, physicians, our and allows over drive personalized, most it open our broad believe the continue to that members. the healthcare a evolves, data-driven better through Assistant. government. And reminder, flexibility powered Clover outcomes for that wide other primary care is care, Clover manage by

compounds planning, things primary cost to fact those physician better an at improve Assistant network focused to believe members life medication members provider. best and primary personal lower. absolutely of Earlier, driving MA a which XXXX for lead society. like evidence-based novel ca, lower of that with are through Further, care care care highlighted all time. with we to on features had our outcomes recommendations. is was our, and gap-closure, that believe This than impact enablement developing We Clover by over the non-CA shipping care wide over providers, the Assistant we Clover Clover points MCR the basis diagnoses

corresponding PCP in Assistant have in that MCR lower members on Clover than on went Clover with live the lower cohort. live And XXXX, PCP MCR had XXXX. of XXXX cohort Assistant members a XXXX XXXX a had who went than the During

Additionally, patient. PCP suggests the cohort uses Assistant. Assistant basis at was the highlighting X,XXX the the data the for value short, that care MCR Clover differential PCP over cohort management, our the the of that XXXX significant the of the In points, lower Clover longer a between and non-CA

on important out that starts. data-driven for care Clover such features Deploying as on decisions, that make The to to operational and driving strategy: around s is continue executing easier PCP point continuing roll we to focus it milestones, make Assistant, will our other

on X,XXX Another onto lies an to we many by direct Assistant XXX% statistic a year-over-year increase in third grew Xst. XX% approximately contracting clinicians from year up the that come key Clover And quarter, of to in was our under new This increase platform as Clover providers this management ago. to expect approximately Assistant January driven number use the approximately the XX,XXX.

in million visits physician recommendations $X.X platform. also has visits increasing The constantly. the its This Assistant in Assistant XX% important feedback the grew help is and provide engagement. approximately Clover launch. a third are these as surfaced Clover year-over-year loop Improve with quarter. us to us since We And interactions production

can our conditions. this of is systems. on the access the enable enabling launched integration, by quarter, by feature engagement to Clover management we our at a to intend Clover improving with and even care network. chart Oncology and envisioned Clover record other to interoperability first clinical the to Assistant, with to believe oncology. additional similar latest develop to is an the quality of support Assistant capability quickly. launch features we at improving release adding care the features We Over around is the of sign-on, to further and plan have features further where out will roll believe The single major close, we is Clover fingertips. workflows past physician s around their PCP put cover this powerful new integrate out update and care almost I new advanced out Assistant And leverage of key engagement provided us We easy also upgrade framework also capabilities more complete. roll working wide significant we even We've aimed management health a of and primary To up began to CA supporting electronic really including are physician drive the we capabilities at allow our capability these that Assistant area will to high features continue roll services life. experts to believe exciting PCPs

in both model target segments benefit and to Our DC, with financial out often us to underserved who it Mark achieved our than I faster software-based contracting scaling direct With now Assistant rolling Advantage, expand update. that, by and entity hand Clover the will physicians allows for MA most synergies Medicare to simultaneously.

Mark Herbers

quarter, launch of the MA We by and was membership. in in $XXX in Thanks, driven revenue up Andrew. direct the delivered XXX% our third million This contracting growth year-over-year. growth

Clover management, membership of under doubled As contracting of quarter comprised and is lives third This have lives of approximately quarter roughly and MA we end, XX,XXX now respectively. direct XX,XXX XXX,XXX a XXXX. of

million, the Moving our claims incurred of quarter, $XXX primarily to year-over-year direct MCR, up for quarter net last and from down due contracting. to medical the inclusion were

second MCR XXX basis largely driven GAAP costs, was decrease trends. as points points was compared MA, to basis by MA seasonal direct the decline operational Our XXX.X%, from non-GAAP quarter. quarter. second MCR and in was The COVID sequential down normalized Also, A a down XXX our the efficiencies. XX.X%

an were also XXX.X%. We million. in margin our quarter GAAP the quarter to our claims basis second reserve of a and Direct premium incurred expense significantly medical on million, contracting a net in of recognized improved $XX.X operation deficiency to $XXX equating

margin development, prior-period represents was break-even and non-GAAP improvement adjusted quarter. costs COVID XXX.X%, over contracting last which significant near and puts direct direct a us Excluding

revenues, non-GAAP $XX.X Third $XX plus compensation, stock-based million the to expenses non-cash from revenues quarter XXXX. of and compared million, of representing benefits and administrative operating were excludes adjusted total XX% expenses, general and total of which in third quarter XX% salaries

efficiencies, a key revenue a operating We as in operating strategy. XXXX focus expect drive grow which and our to adjusted portion expenses smaller become we is of

the gross loss Our million the a the was at the billion After income including of XXXX. EBITDA net and quarter third EBITDA for the quarter, of to direct of $XXX.X GAAP value the quarter million Clover liability. change third COVID, XX benefit included impact to in additional the adjusted MCR a was $XXX.X relating of loss non-cash a year-ago million, loss million of a in compared shares to of had net excluding from outstanding for for the normalizing loss our fair normalized adjusted in for and compared a business $XX.X to our approximately the warrant of quarter. [Indiscernible] million $XXX.X contracting related million $XX.X $XX.X million our $X.X EMEA for the $XXX.X quarter the quarter our end This shares second quarter redemption. million third

XXXX Our $XXX.X Now, cash, September moving as guidance. of XX, cash investments to million totaled equivalents and

million adjusted loss XX% the between expenses, of flat compensation year. Medicare in adjusted we of non-GAAP to going shares which final future adjusted was EBITDA mentioned. the be in impacts approximately remainder to of are our misspoke said quarters. the million of XXXX. mentioned $X.XX benefit Medicare X.X Wrapping the roughly total billion. something for which to range outstanding before, $XXX warrant $XXX.X to was warrant million XXXX, I'm to Normalized XXXX. expenses, us X non-cash XX% and of million full-year fair remain $X.XX Medicare expected are of expected and in for includes million. lower prepared the a had $XXX December billion which minute, the make excludes of XXX.X pass XX,XXX my be remarks I but revenues in in be of and to $XXX not to million and operational estimate Direct million, earlier XX,XXX want full-year to just full-year in the at a to MCR COVID-XX, comment. $XXX a contracting the in relating previously liability quarter million execution million. revenue reflects will revenue normalized quarter, quickly expected I the the change again beneficiaries we expected for had to to million, the million in is for first, strong Vivek $XXX planning, $XXX.X additional third to related which For the end direct revenue I operating actually range a redemption. And as contracting of is Advantage to back good call Advantage, be to We clarify range shares is the expense, by benefit the MA be non-GAAP $XXX Non-GAAP to medical XX, This will value to with $XXX I expected significant range million. membership $XXX stock-based up, growth,

that that by as points other reported basis want in other overall has of core efficiencies. an as is improved have QX or overall basis our We around MA, is details with today our had compared more mean, up XXXX I quarter-over-quarter we points. Vivek this Finally, some to just XXX MCR reported basis the to the In MCR contrast, most public than expected highlights GAAP, average that and reverting XX XXX QX have believe minus will now plus reverting our MCR who and mean. our MA reiterate provide change to markets. to market companies New operating variability approximately points on Jersey

Vivek Garipalli

Mark. you, Thank

I focused questions, wanted some mostly high-level taking Before just provide thoughts on business. our to XXXX, MA around

above-market of of MA year contracting. driven our another We continued strong year expect second growth success direct and by

membership more average At almost to COVID-XX next where that XX%. finalized. expect program to projected gains In we XXXX. full basis acceleration this well and which this all reductions an year, in indirect continued than both currently of year, current up range in growth impact risk improved our and to in direct provide representing we beyond we expect throughout clinical X.X GAAP driven we Further, and lead are expect basis of come we MCR, be MA year, average contracting points Jersey Similar is to as XXXX year-over-year members are range [Indiscernible] growth preliminarily expected to we expect X,XXX. New impact below will XXX XX% XX,XXX direct look to by in been the to to of a as and stars in where improved and being the share details a points. expect enhancements, of time, on MA of in claims plan double MCR XXXX, lives market we Advantage, expect more as we XXXX we levels to and XXXX drive through less to the have margin, XX%, contracting, to XXX becomes as growth Medicare we've impact, significant from in the This growth meaningful same For strong Georgia, to a scores, MCR expect meaningful continued direct for an

X.X the Importantly, have X.X achievement MA to future would an than benefit of potential stars movement X.X stars. to from even stars the higher to MCR X.X

has Clover COVID significant the despite year, towards profitability. strides this in impact achieving it's Finally, made planning

that Number will a planning phases. X, position human Number number are progress X, Clover achieve That cost our As significant ANDC XX improve mission on new excited months. operating leverage business proof start. efficiencies the our which we across who business, believe executing are to believe centric automation our will overtime. over into unique next of assisted vendors leverage focused our to in also X the technology the following unique with synergies early see this process Clover's We are we we who make head organic X, and negotiations life, about operating the of we'll lines past on multiple results have our year, value our execution. We continued create every growth. And that favorable to quarter, the as points model, that and show partner. margin

white re-reminder it. strongly more Before create you I we we questions. get healthcare take details, paper that Friday, to on system. to our works let's published how read a an that With that, the recommend questions, extensive a approach equitable all

Operator

you, Thank sir.

the As reminder, session. We now will question-and-answer a begin

Reddit. reading we and compile by roster. instructions] in first As all answering analysts, Q&A be questions we past, we've the will the questions while [Operator from received participants followed To from done Standby taking

Bank with Kevin Your first question from is America. of Fischbeck

open. is line Your

Kevin Fischbeck

I for GAAP, Is why the the next guidance, when the are the be MLR guidance something to MCR looking you be as MLR year, looking thanks. is for I should year? than should basis. this about far a MA next XXXX about Great, that would MLR this I normalized year normalized MCR MA at year's that your of higher up that thinking next I there Okay. we peak kind MLR think be there reason on guess GAAP for think year but comparable, as or guess

Vivek Garipalli

next costs potential So next basis XXX points year we've embedded few a COVID year. of

Kevin Fischbeck

pro that year in Okay, that's that? color just believe helpful. Is of first any on or or more half the you the rata do

Vivek Garipalli

Yeah, assumptions attempt how trend we didn't I next think costs to would to make as year. COVID

So we and good next to about next assumed we pretty be it. the what mentioned, we feel comfortable is enhancements, we into put what the we're really And was year's impact same estimate, next or based modest of an time, impact time, risk of really we same appropriate really of an at us how none did to year, assumption really numbers. a reasonable program estimate to throughout we've clinical goal in felt adjustment. at The and think reasonable as going forward to some we it thought embed as Kevin, know COVID year was terms

I next wouldn't view normalized. So as estimates GAAP years

and we're a year. would we MCR next meaningful MA -- next MCR year spread between be still normalized still GAAP So there'd MA assuming

just projection for And on we've so that's next year. why GAAP focused

Kevin Fischbeck

I less in GAAP that do it expect normalizing will you do Okay, clear that you of or show you were a with you in flattish versus actually It think just for the was MCR improvement. is XXXX as MA, commentary relatively GAAP, like way but XXXX. normalized what wasn't saying this about there improvement versus improvement sounds year's think expect the to that? or

Vivek Garipalli

Yes.

as So year of our showed we part -- purposefully for next guidance. we GAAP

few perspective, GAAP, GAAP MCR normalized to makes And stick would the so sense impact we it clear, as goal of report to But we're But year. really to so next to guidance. to COVID GAAP from expectations think XXX our is basis project an just bake points did to we be we comparing in numbers next a year. be surface

Kevin Fischbeck

driven think of how Are as or Okay. is going we why we kind the performance, the delay other should by about that there I why, direct or still structural think leverage growth think it reasons guess largely the That's helpful. is you And is attribution? do a that then about be that? it to in DC getting

Vivek Garipalli

at not voluntary know intent I is models. contracting on driver alignment meant voluntary purpose practice. speed closely those think of practice do during think take the a focus policy about for a folks Medicare for the Claims alignment to of The lot to policy aging are into voluntary those are or also I be -- alignment of perspective. direct really there's account alignment. switching We year, really going of is that a public who data -- to actual talk contracting. direct alignment look should from in was into into The

of a guidance, growth lives mortality. X kind we share perspective, -- other on we get alignment the of models, year we then comment really of of to into claims expect finalized, next can't we've the this that about January as and seen, about tends good DCE enrollment. relates simply over a And least guidance be out I again, practice what kind even going feel it to year. should as or bulk alignment the year organizations but those So voluntary at of and as talked the put from to, numbers But who course we turn out will from

Kevin Fischbeck

numbers maybe know guess what with more if year, I you COVID you talked last the membership how I you versus the in-person color? line expecting, and next commentary about I year the are are broker if for we in engagement? of maybe telephonic some give feeling about in-person online some the looking how just any And were largely guess Okay. for but and disrupted marketing, about marketing

Vivek Garipalli

Yes.

of money that We it we a not on. that many competitors We or of in for frame paying it's pay leads, ways. focus different area terms in believe digital we of most lot two digital So, kind for know an leads.

pure by last on over of very we not so the have a XX% digital X is our [Indiscernible] high XX% compounded lead growth what we'll reluctance has all growth X, year, year growth so with that terms call but rate been from rate, MA this years, Our growth, driven obviously costs to we'll that's impacted field Clover year. just inbound for sales a recovery well. as calls in marketing would see the affected meaningful and definitely And last been I last a think, what bit was then of

described that, part, [Indiscernible] significant market guidance our gotten in we has the the plans there's few as unusual MA of New market Jersey for in We're think I that too been very country main sense large years. like the as market have very many across a share, and Clover.

on So New metrics at, we're in you now where MA individual from [Indiscernible] thinking share years X, an up number look a what market two X-X Jersey ago.

on in in membership and tracking see the more the of Georgia you'll X looks how familiar numbers we double going me believe in Jersey or next as now quarter early and goes first New year share Georgia, sense will As the very years. to year into year. next to we'll was

flag next that to a state is fully any Not going to Clover now. a Jersey trajectory in think just really So similar years. the for in over market, established we many exciting it's have but New a to

Kevin Fischbeck

as that then about into stars maybe last Should time you over MLR way? some improvements get we back the term question leading to balance [Indiscernible] reinvestment to stars? improvement of bridge Or improvements And longer with benefits is there think slide helpful. the that MLR

Vivek Garipalli

XX, September think the -- and earnings the release. shared we graph MCR the through XXXX, to proforma I and year-to-date long-term fair the the year graph it's of referencing

a it, modeling straight from perspective is way to gross that would goes assume couple margin view -- I So a for just of reasons. that to the

points to points we for XXX basis X So X.X shared basis estimate stars.

would basis or is have forma to coverage to pro math to Given and the super about form assumptions is what over stars that we're embedded to Assistant, and there, which Clover in to would XXX that of better be easy back fairly so. The consumers. some driven that a believe terms in the logical run. X or improved where X.X going of from we XX think expect plus think long-term that's be benefit we take rolling where of lot excited to example, the we're illustrative goal and we we going from of improved and from benchmark, in below value in that well come value an to We around months going to bid a we straight next features Clover any point to new consumers of straightforward, go reason improved give designs. will to margin is gross That's terms it Assistant out

Kevin Fischbeck

Excellent. Yeah, you. all right. Thank

Operator

next line of is Ralph from question Citi. Your with the Giacobbe

Your line is open.

Ralph Giacobbe

afternoon. Good Thanks.

to X I'm up sure and MLR Just on the just XXXX make following. follow

XX%, basis Is that saying way at XX next estimate, are points necessarily MLR normalized GAAP from range. year? from not a it a So you be sort off if COVID to that, XXX Again, a next said is to hundred year look no? would MLR of to XX we comparable XX% for to the this take spot it points few year. to you basis but sort XX of Would or that XX be a

Vivek Garipalli

to that's look at. think wrong don't a way I

a it's fair think I summary.

Ralph Giacobbe

maybe what related COVID non-cola XXXX assumptions how give utilization? a Great. non relative you in that us and out utilization And then I playing or your for 'XX guess could from baseline we to are see where standpoint, include you

Vivek Garipalli

Yes.

definitely So Mark had summary, a this to the referenced in his see very mean happening. we reversion large

we've QX this to something XXX basis Clearly, talking MCR QX. a market. about to said unheard throughout That is Advantage. to it's by been had Medicare uniqueness as what the the in in the earlier, mean, Jersey we Just and reversion year had driven New reiterate that's of from Mark drop point an of

bit to done MCR. You in some fact a up more. in look at them all that anywhere the we've most of mean, players that little are I had publicly of traded drop, MA, them were actually terms close of none

actually at [Indiscernible] back allowed that confident this year. basic of actually had PMPM -- 'XX. In a 'XX our the just example we we back some to compare analysis. costs by XXXX graphs. the We going creative to had that. when side and and But MedEx And a throughout and we half we we then that continue of QX probably into of go share look Just QX a think in drop continue quarter. of and in wild is our when of to terms half reversion next mean happened. I of the And reasonably perfect we're to QX is XXXX gyrations, expect there

of there's terms done best the again, year. estimate to do next MCR our kind COVID year. next we've way to no GAAP in guidance impact for But that Now of

Ralph Giacobbe

managed wanted the the mean I traded of I appreciate just some to And care who clarify. folks to companies. comparison

the You're the I that, below baseline. trade actually talking directly fairly commercial still total Medicare, commentary remained was of sort for most of up Medicare well of related think MLR the was because in

So want apples-to-apples of I sure sort to we're that make in comment. comparing just

Vivek Garipalli

Yes.

If they from XX.X% they're not QX -- wrong up closest about side, MA you know a basis to for That's probably XXX example, point to a the went at to I third to national. quarter. move pure-play XX.X% Humana, - MA ticked MCR look but plan, they're in pure-play to MCR that's plan they QX.

specifically that comparable experiencing. of and and I'm better the the XXX basis that went think saying So that we impact New being points. points by good by Jersey that's worse XXX only I to we're to demonstrate now the mean see went a they reversion basis to

Ralph Giacobbe

year; lower attribute what which think in your you marking we looked I there number original against forward? below the right, original you terms makes All okay. much scale last going be how should expected of and for MA mean, XX,XXX, build and I into next at thought, And originally target, membership That's to to I or X then, just expectations that I it's about of above-original counties things me, a from helpful. sort how sense. you can now, initially lives any there. know going Yeah, of, target, presence at think that of you guess, but, don't I bench sort capture than as is you of looking [Indiscernible] Thanks. expanded

Vivek Garipalli

U.S. that for market Yes, X in feel us growth are that almost about Jersey, MA We like high that's in question. no are good maintaining. maintaining reasons. a are There that maybe growth New share in we're example, great for the region our rate plans really a as

when at a base. high of you're the pretty So market small typically you're bottom a growth shares, rate growing is over

like the synergy still we to get really our number Jersey. keep account X market over have into growth business. then, in take up share time where we New to us think strong When we Jersey it of you and So New see can

Medicare about systems. really think Assistant, think physicians and terms Advantage, managed we we being lives get of corporate that it in by about actually we when So on Clover then

that's that's MA into don't We a growth markets. to digital time, as a of play high lot of goal build not of we a the going not a off when Jersey. getting we're not game, really large and impressive fairly as At that's done we we're is look just we're view MA is Clover being Medicare pretty the dialers very happening earlier. lives It up off most share far include being we're of in state set now share to too of minimal you replicate in going to in large hard Georgia, a a more is a quality. or in to the really when have base X. made we And same is New is think high going it CAX just Jersey going across markets where spreading as well don't to in of to get a the a trajectory believe bunch And market There's we And unique to what we've the point think I that think sustainable. January into Clover double pretty and referencing lot we that sustainable. and then purchasing because New us poured everywhere and will do at view outside that's So, in accomplishment. fee-per-service versus growing managed. I our where leads.

And so And the we we to just X is view next growth end going pure our all versus MA that truly of increasing game costs. buying X view ever years. or over leads as

Ralph Giacobbe

it. you. Very Thank Okay, got helpful.

Vivek Garipalli

Sure.

Operator

Your next Credit Suisse. question is from Jonathan with Yong

is open. line Your

Jonathan Yong

Thanks. question. Appreciate the

out broken on the the XXXX assuming out excess utilization. bits any to all there some Are back Sorry excess are about Appreciate component COVID is next the headwind And costs, the lingering for kind to you've of MLR. this, still of comments guess hundred few go to of this but I you just year, expecting you back there utilization in effectively year from or XXXX? XXXX? similarly, then reverse MA

Vivek Garipalli

been the this costs. We COVID also we that estimate impact, view estimate projection think we there. do for the next to precise direct would didn't of give COVID normalized to to be our We And pent-up and this that. into really When then want to think that reasonable the describe been to normal good we when continue range what year. do gave. could overly be hard so year, we we a expect and kind trying guidance MCR have it's in Again, process. that it's we've our then reverse year. pretty thought to indirect and at GAAP feel it meant that's on about And versus a it's seeing on precise catch-all get we for demand

Jonathan Yong

called is then more the Okay. that Obviously, through on come through, that on county expand for XXXX, you're for component? is so curious counties expecting most lot growth next you on is just Great. membership you Georgia, into out the that. or the year. growth existing And Since of expansion that the a footprint of just to

Vivek Garipalli

we're the in in, counties Yeah, but in counties. also share it's new the that continued growth

in open as to next overall wanted enrollment for will completed, definitely just pretty We sense more numbers. share but we a folks where felt is give year of terms good once we to

Jonathan Yong

third-party that facilitating MRs. a that or care management in-house built, is management, guess thanks. that and the just is just down care mentioned then is What else are for down. you hiring I third-party tech the you And the side, all Andrew, on and integration to Okay. capabilities pipe, administrator -- work turning that with some drew that that coming and

Andrew Toy

actually by around partners some and be are we we specific doing We provide who partners data fire architected to we're consider that steered all faster. where But the of us like have there API to persistent integrations able Assistant areas to platform. is platform. clear in those pull or Everything sort commodity, as of like do part can integration, use part of Clover our

So goes grows that for that also for integrations back-end talked that interrupt, about. data we EHR

more those numbers make workflow EHR are up more driving sure we and and constantly on right. efficient experience integration of focusing launched into those that engagement to the You'll that and

of terms of around we conditions, see full features where come have out. what in we see of launch to visual give future Care better, I onco towards terms service. those is large the personalized, do can where and those oriented a the map [Indiscernible] in of we're critical we we experience. those better Clover Assistant addition management will mentioned can data-driven management. our always in you'll planning us therapeutics, more looking do we the all a is be them pick terms care drug that what load, personalized have call, population the and In care do in coming of there, announce ASOS And more within But we'll swaths

Jonathan Yong

thanks. Great,

Operator

with next is Calvin Your question JPMorgan. from Sternick

line Your is open.

Calvin Sternick

good Hi, afternoon.

a ones of quick couple Just from me.

the any [Indiscernible] of through give release voluntary DCE for up terms significant sense in help much next step you're the is you enrollment sort to how a expecting us in First commentary on the come for just Can magnitude are the those expecting press of year.

Vivek Garipalli

Yeah, significant will a be it growth. we believe

DCEs or initial week a from guidance next so. finalizing I is perspective, lives estimates for CMMI think the over their

made just we get first guidance specific So on file. we the till that decision hold off to

Calvin Sternick

Okay, understood.

Andrew Toy

alignment, quick because providers. Calvin, by reminder, signing that quick actually Don't that forget we grow a just you A note. -- asked up about new also voluntary

we providers even new with so alignment we with grow because claims the in. coming have alignment, will And claims

Just grow. a also how that's quick that we note

Calvin Sternick

in other you quarter. better Okay. about whether came for still have big And than MLR is Can a what the thing direct you that contracting? were in primarily the then Medicare wanted we so I talk ask the and Advantage driving or by you little PDR driven drop to was, that sequentially in bit and and what's the looking mentioned PDR in

Vivek Garipalli

if The think PDR but was me just on I that. Mark correct MA, I'm wrong

Mark Herbers

is expect essentially run the when what MA. to it's we we out to between be. receive -- it And IBNR and claims a Yes, timing issue the

Calvin Sternick

Thanks very much.

Operator

question of from Taylor line Your next Gary the with is Cowen.

is line Your open.

Vivek Garipalli

Gary, there? are

Operator

your line you Seeing mute. on have might

Gary Taylor

Can you now? me hear Sorry.

Operator

Yes, sir.

Vivek Garipalli

Yes, we can hear.

Gary Taylor

Apologies.

on up PDR following the Just questions.

We once. excluding row. GAAP So, any think your that a 'XX it's month none do you There's guidance, MLR that to addition in been I second about PDR, is guidance, correct? which quarter think the contemplated reporting generally MLR, MLR in there's

Vivek Garipalli

correct. That's

Gary Taylor

X the performance What I minutes And the call, allows another why you a question is, of reconciliation. so much when think I contracting first months apologize book did sequentially but there? X improve X I or to to out still economic direct CMS maybe missed result break-even closer we're and from the

Vivek Garipalli

it, do New is been of but a MA, we've as There's unique there the New question. our reversion part much MedEx in some impact Jersey, great of markets have a again guided mean we're It's in also the has as on large direct estimated in Yeah. meaningful in indicated, where to lives year which an obviously a throughout area. we contract Jersey, markets and trend part our York

So that's one area.

There's contracting, estimate to the a as MedEx our in model. Clover rate well, significant the contracting Assistant we the the pretty of by process visit of going-public cohort Assistant data end in now we're MCR entire Clover year, but exact and our hard we at as a above that the impact physicians. direct Secondly, impact, in crux on about which shared is direct with XX% to hope XX% has to meaningfully get

Gary Taylor

miss chance and Good. at regulated? seen Do parent I that'll might've you And which be the then that it. last for cash the or presume flash parent look Q cash a quarter question, I have did quarter-end, for in I to a

Vivek Garipalli

in files. that. but be I we probably think can [Indiscernible] it'll with you we don't the on I think don't follow-up

Gary Taylor

you. Thank

Operator

I'll from will sir. to are shift no questions phone take the that, Derrick, With we there now to additional As from the back questions call hand Reddit. lines,

Derrick Nueman

Thank you.

guidance reported to comes previously adjustments MCR deemed on MCR [Indiscernible]. and I'd you Our general in path reach from hasn't size? a be this new first a leader have the seen on What like be MCR. model. would seems business the this to to made back. What to question hinge know have Company the lowering call? [Indiscernible] market success Does through

Vivek Garipalli

Thanks, Eric. Great question.

mid phenomenal now. is to achievable so through improved and paired very, we think where eighties to it go really from we're very more some plan MCR, very at specifically details. Just but with design to We'd answer been get and we're love

we normalized Soon think when MCR. about our

stars, the improved the Clover we're we any you forma stars, in pro for take we're That you now where forma in XX%. XXs or at again, When Assistant kind for X.X low-to-mid so into that improvement XX% from nineties, coming any -- improvements doesn't are the of that that low coverage. When Clover already? Now Assistant X.X and Number. pro account

public those and clear, I interesting matter that achieving that, we health all time. those Those about is feel for can tailwinds an capitation a to is, changes numbers equity are dynamics our we going to or those summary to despite there going And really as heavy going inevitably, going to be belief, But rely without rating point star over at One happen are be on of on. think time. the to come good relationships. eventually on the where score and time. happy impact headwinds about us fruition are And some even players a in policy large be there's X patient drive is networks players, policy just type ratings narrow all having really MA or it's against then made. side, this on these star

Derrick Nueman

Great.

to it not wasn't that do? medical is getting like to used. in Our at indicators it performance providers assists in next know being key addressed metrics how but would place? that from I What comprehensive question on [Indiscernible] Assistant being Assistant a issues would Clover addressed And things, is have often look comes health, see patient's some WinkyXX maybe We (ph). areas, if or for Andrew. more the were Clover

Andrew Toy

[Indiscernible] Thanks that. I appreciate

our we on said about year-over-year. facts. how today all year-over-year team which in vital NPIs at to through these XXX% grew up around Assistant Because the Clover how looking time. we like We that iterate, care We've looking and XX% tech before that us looking Clover building after management. better is we metrics XXXX shared platform, using we can additional at We've Assistant said some So to their terms are provide the management. at the value Product are live

engagement about user good see number we Clover that impact Assistant recommendations with of high that struck in lot physicians XX% visits really quarter, third Assistant, that year-over-year really of. a the the proud The was have all the footprint. inception about the wide We of network, we're along of actual Clover's will of constantly right the the X.X growing question. the we that CA suggestions right? to [Indiscernible] Like engagement do We're what time, the information, you personalize more clinical you considered, adjustments, did in lines plans, care launching the engagement, So cohort. they content of make users, all something CA within million this Clover growing also since really of showed to into have the lab increased we etc., based say, in evidenced good growth assistant And etc.

to I'll maybe I'm so share continue more are up what into it whether what as around back don't and up that. road tech we can seeing we're things. We proud statistics to we'll we who said. drive for information something about additional of those. but And those that really said the TBC, have achieved interested so don't a Vivek put We that we've the about sharing people during we It's going -- of map do like some right. earnings, forward. engagement of some we'll far think though We're bring

Derrick Nueman

Great.

an foresee hand Maybe Boost Our announcement comes And next you to the this I'll question XXXX. search CFO from lever. going? Mark. How is do in

Mark Herbers

search Yes, the own carries life. underway. is Each actively search its

be to receiving but it it's will when predict it active. evaluate. hard is concluded, So candidates We're to

place well underway. remain I begins. the In in that transition until will it's So meantime,

Vivek Garipalli

Mark team lot brought add, some just given on a on patient and next really the to bring that and has candidate. additional of be assembled us the great runway Mark, has and books we've I'd Awesome. bandwidth

Derrick Nueman

Great.

Clover of Clover grows, expand population. Andrew, to to Assistant are general say another expanding you of see question Brow you you envision Medicare the the If so, improve eventually open Standards its waiting why does Advantage for Health (ph). use metrics Clover take the the expect, Assistant it as deployed High don't question. market? you is individuals? this what for Low to into beyond the When this mean have one Can We from radius your life, mission every future

Andrew Toy

for Yeah, I'll Definitely jump perspective. Clover in to the toss first assistant then Vivek.

big as pretty goal to manage a as manage many populate wide here possible. is disease, And help -- benefit population Our to of precision to applicable to built help help healthcare. to much that people was network. large all those It chronic of a are to concepts

those folks half with that's that's of many able built anyone increase you'll of we within Assistant use shared anything? is to launch to ways why of While potentially what a for the management to end, live to looking party And statistic payers it do. as it fee number other to the think Clover but also we're add use risk. be lives agnostic Clover bearing always total Medicare first bring the including that We're population in Vivek, Clover the do as Advantage you want direct we could could for I help do our managed the way well. actually future Assistant well, see who we line. it any third particular CA under within Assistant that's service who we contracting or to Clover There's places, Assistant because we've that then business

Vivek Garipalli

very life, every over add as intentional we every where over would is clear long is, been our mission term, I and since will time. thing our mission ambitious, years the -- we've only and feel not the Company it's the mission. want life, of something And get The we and about that while achieve founding the we to is Yeah. ago, Medicare many always saying to

Derrick Nueman

Great.

Does Reddit Clover care expand Assistant's managed into companies of or from question such states Clover license Our the comes intend in Medicaid to any Choice Vivek. last to Diet XX for coverage? provide (ph). that plans

Vivek Garipalli

in We've the to infrastructure. perspective we -- of well unique Medicaid Assistant question. thinking definitely, more stop could a positioned will into Clover drive from be on but drive think massive we and future. there. We been impact positive late, particularly share mission impact we'll about actively there, to ways especially Great The the that ability around goal, I'll

Derrick Nueman

give closing comments? want Vivek, Great. to you any

Vivek Garipalli

a really traction the for team QX. next about for what's years. MA vs. massive on side, the really huge Georgia. we're that's improvement and to many exciting get and on growth pretty quarter fee-per-service, milestone think the happening And And to big us you thank big in really, we tremendous big, for really excited to A

Operator

Thank conference call. This joining. concludes you today's for

Have You may day. safe. a now Stay disconnect. great

Clover Health Investments (CLOV) 9 Nov 212021 Q3 Earnings call transcript