Clover Health Investments, Corp. (NASDAQ:CLOV) Q1 2023 Earnings Conference Call May 9, 2023 5:00 PM ET

Company Participants

Ryan Schmidt - Investor Relations

Andrew Toy - Chief Executive Officer

Scott Leffler - Chief Financial Officer

Conference Call Participants

Jonathan Yong - Credit Suisse

John Pinney - Canaccord Genuity

Operator

Ladies and gentlemen, good afternoon, and welcome to the Clover Health First Quarter 2023 Earnings Conference Call. [Operator Instructions] 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

Good morning, everyone. Joining me on our call today to discuss the company's first quarter results are Andrew Toy, Clover Health's Chief Executive Officer; and Scott Leffler, the company's 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 the Clover Health website.

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.

Information about 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. With that, I'll now turn the call over to Andrew.

Andrew Toy

Thank you, Ryan, and thanks, everyone, for joining us today. We're very excited to be reporting our first quarter results, which marked an extremely strong start to the year and highlight the progress we're making towards our goals for 2023 and beyond.

Starting with the headlines. We're excited to have delivered strong results in key areas of our business. We performed very well on Insurance revenue growth, which has increased year-over-year by approximately 14% in the first quarter.

This revenue growth has also helped deliver favorable Q1 Insurance MCR of 86.6% and will flow through to a strong projected full-year Insurance MCR as well. And of course, all of this results in significant improvement in our adjusted EBITDA.

This overall strong performance was driven by thoughtful plan optimization, significant enhancements to core operations, a focus on member retention as well as the improvement in our Star rating. We have been anticipating this step function change in our performance since we shifted to a profitability mindset. And I'm very pleased with how our team has executed.