Clover Health Investments Corp (CLOV) 2024 Q2 法說會逐字稿

Ladies and gentlemen good afternoon, and welcome to the Clover Health second-quarter 2024 earnings conference call. [Operator Instructions] And as a reminder, today's call is being recorded.

女士們先生們下午好，歡迎參加 Clover Health 2024 年第二季財報電話會議。[操作員說明] 謹此提醒，今天的通話正在錄音。

I would now like to turn the call over to Ryan Schmidt, Investor Relations for Clover Health. Please go ahead, Mr. Schmidt.

我現在想將電話轉給 Clover Health 投資者關係部門的 Ryan Schmidt。請繼續，施密特先生。

Good afternoon, everyone. Joining me on our call today to discuss the company's second quarter 2024 results are Andrew Toy, Clover Health's Chief Executive Officer; and Peter Kuipers, 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.

大家下午好。今天與我一起參加電話會議的還有 Clover Health 執行長 Andrew Toy；以及公司財務長 Peter Kuipers。您可以在我們網站 Investors.cloverhealth.com 的投資者活動和簡報部分找到今天的新聞稿和隨附的補充幻燈片。該網路廣播正在錄製中，並將在 Clover Health 網站的投資者關係部分提供重播。

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.

我還想提醒您，我們可能會在今天的電話會議中做出前瞻性聲明，這些聲明會受到風險和不確定性的影響，包括對未來業績的預期。我們向 SEC 提交的文件中詳細介紹了可能導致實際結果與預期有重大差異的因素，包括我們最新的 10-K 表格年度報告和其他 SEC 文件中的風險因素部分。

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.

有關參考的非公認會計原則財務指標的信息，包括這些指標與公認會計原則指標的調節，可以在我們網站上提供的收益材料中找到。

With that, I will now turn the call over to Andrew.

現在，我將把電話轉給安德魯。

Thank you, Ryan, and thanks to everyone joining our call. Today we're very pleased to report another set of strong financial results as well as improved full year guidance, driven by meaningful profitability from our core insurance plan operations.

謝謝你，瑞安，也謝謝所有加入我們通話的人。今天，我們非常高興地報告另一組強勁的財務業績以及改善的全年指引，這得益於我們核心保險計劃業務的可觀盈利能力。

Underlying these strong results is our Assistant Care platform that enables physicians to identify and manage chronic disease earlier. We believe that this focus improves outcomes for our members improve total cost of care and therefore, drive our overall financial momentum. Ultimately, that is our goal.

這些強勁成果的基礎是我們的助理護理平台，該平台使醫生能夠更早地識別和管理慢性病。我們相信，這一重點可以改善我們會員的治療結果，改善總照護成本，從而推動我們的整體財務動能。最終，這就是我們的目標。

At Clover, we developed AI and data-driven technology that is differentiated at managing the clinical outcomes and total cost-of-care for people with chronic diseases. We believe our financial results demonstrate that our model is working with physicians in our own MA plan. Next, we intend to bring our approach via our counterpart offering to physicians who serve other plans as well.

在 Clover，我們開發了人工智慧和數據驅動技術，該技術在管理慢性病患者的臨床結果和總護理成本方面具有差異化。我們相信我們的財務結果表明我們的模型正在與我們自己的 MA 計劃中的醫生合作。接下來，我們打算透過我們的對應產品將我們的方法帶給也為其他計劃提供服務的醫生。

On that note, let me begin with some high-level takeaways from our second quarter performance. First, we achieved meaningful profitability this quarter, highlighted by our increasing adjusted EBITDA, as well as positive net income for the first time as a public company.

在這一點上，讓我先從我們第二季的業績中總結一些要點。首先，我們本季度實現了可觀的盈利能力，其中調整後 EBITDA 不斷增長以及作為上市公司首次實現正淨利潤就凸顯了這一點。

We're very proud to have achieved this milestone. Given these results we fully expect to deliver profitability this year on an adjusted EBITDA basis and are happy to update our full year guidance to reflect this strong performance, which Peter will walk you through later in the call

我們為實現這一里程碑感到非常自豪。鑑於這些結果，我們完全期望今年能夠在調整後的 EBITDA 基礎上實現盈利，並很高興更新我們的全年指引以反映這一強勁的業績，彼得將在稍後的電話會議中向您介紹這一點

Second, we've again delivered double-digit top-line revenue growth with further margin improvement in our core insurance offering. Our impressive Medicare Advantage performance is driving our ability to deliver consistent, meaningful adjusted EBITDA profitability this year.

其次，我們再次實現了兩位數的營收成長，核心保險產品的利潤率進一步提高。我們令人印象深刻的 Medicare Advantage 業績正在推動我們今年實現一致、有意義的調整後 EBITDA 盈利能力。

Third, our performance improves upon our already healthy balance sheet, allowing us to operate from a position of strength. We expect to be able to self-fund meaningful growth in the next phase of our business. Lastly, our strong first half results continue to highlight our unique ability to operate a profitable Medicare Advantage plan almost entirely on a PPO chassis.

第三，我們的業績改善了我們本已健康的資產負債表，使我們能夠以優勢地位運作。我們希望能夠在下一階段的業務中自籌資金實現有意義的成長。最後，我們上半年強勁的業績繼續凸顯了我們幾乎完全在 PPO 基礎上運營盈利的 Medicare Advantage 計劃的獨特能力。

Unlike other plants that rely on narrowing their networks within an HMO to funnel patients to specific doctors, our approach is fundamentally different and allows us to meet the needs of more of the total addressable market.

與其他依靠縮小 HMO 內的網路將患者輸送給特定醫生的工廠不同，我們的方法完全不同，使我們能夠滿足整個潛在市場的更多需求。

Clover Assistant proprietary and patented technology allowed us to work with any doctor, improving both their clinical outcomes and total cost of care. This capability is crucial for our PPO model. Our vision is to build physician enablement technology that brings great health care to all Medicare beneficiaries. This is precisely why our strategy is anchored on wide network PPOs.

Clover Assistant 專有和專利技術使我們能夠與任何醫生合作，改善他們的臨床結果和總護理成本。此功能對於我們的 PPO 模型至關重要。我們的願景是建立醫生支援技術，為所有醫療保險受益人帶來優質的醫療保健。這正是我們的策略以廣泛的 PPO 網路為基礎的原因。

Put simply, most people want the freedom to choose their own doctors, not have their insurance plans, pick their doctors for them. In contrast, the challenge for the broader industry is that traditional HMO cost management frameworks are not easily executed within PPOs, as there is less network control.

簡而言之，大多數人希望能夠自由選擇自己的醫生，而不是擁有自己的保險計劃，為自己選擇醫生。相較之下，更廣泛的行業面臨的挑戰是，傳統的 HMO 成本管理框架在 PPO 內不易執行，因為網路控制較少。

Plans used to selecting doctors definitionally cannot rely on that selective network narrowing to drive value-based results in the PPO. This is why we expect other managed care organizations to continue to struggle to balance consumer preference with managing cost pressures.

用於選擇醫生的計劃顯然不能依賴選擇性網絡縮小來推動 PPO 中基於價值的結果。這就是為什麼我們預期其他管理式醫療組織將繼續努力平衡消費者偏好與管理成本壓力。

For Clover, we aim to solve this problem by managing quality, not by network narrowing, but by equipping physicians with our proven AI-powered software platform to better manage total cost of care and improve clinical outcomes. We do this through a focus on identifying and managing chronic diseases, as early as possible.

對於Clover 來說，我們的目標是透過管理品質來解決這個問題，而不是透過縮小網路範圍，而是為醫生配備我們經過驗證的人工智慧驅動的軟體平台，以更好地管理總護理成本並改善臨床結果。我們透過專注於儘早識別和管理慢性病來做到這一點。

Coupled with Clover Home Care's high touch clinical capabilities, we believe that our differentiated care model creates a sustainable growth moat in our business and uniquely positioned us for success despite broader industry challenges from regulatory changes and shifting consumer preferences.

加上Clover Home Care 的高接觸臨床能力，我們相信，我們的差異化護理模式為我們的業務創造了可持續增長的護城河，並為我們的成功奠定了獨特的地位，儘管監管變化和消費者偏好變化帶來了更廣泛的行業挑戰。

Most importantly with CA, we are constantly learning from physician interactions and improving to drive better clinical results. Since this last quarter, we are very excited about our technology innovation, featuring several capabilities we've developed. This includes clinical enhancements around heart disease severity and progression to better help physicians identify and manage CHF.

最重要的是，對於 CA，我們不斷從醫生的互動中學習並進行改進，以取得更好的臨床結果。自上個季度以來，我們對我們的技術創新感到非常興奮，其中包括我們開發的多項功能。這包括圍繞心臟病嚴重程度和進展進行臨床改進，以更好地幫助醫生識別和管理 CHF。

We are also streamlining clinician workflows around care gap closure, to help them quickly and easily leverage the Assistant's access to robust data sources beyond what's available in their EHR. And finally, AI and LLM allow for quick prototyping and implementation of features like ambient scribing and document summarization that allow us to quickly iterate and deploy features focused on physician workflow and quality-of-life.

我們還圍繞著縮小護理差距簡化了臨床醫生的工作流程，以幫助他們快速、輕鬆地利用助手存取 EHR 中可用資料來源之外的強大資料來源。最後，人工智慧和法學碩士允許快速原型設計和實現環境劃線和文件摘要等功能，使我們能夠快速迭代和部署專注於醫生工作流程和生活品質的功能。

With our continued investment in assistant platform development, we believe that we will continue our momentum in our overall MA business as we both focus on generating sustainable, meaningful profitability and returning to top-line membership growth. It's also important to note that we expect to drive meaningful adjusted EBITDA profitability this year from our insurance plan alone. We are making great progress in building out our counterpart offering and any future financial impact will be additive, but is not yet considered in our guidance.

隨著我們對助理平台開發的持續投資，我們相信我們將繼續保持整體 MA 業務的勢頭，因為我們都專注於創造可持續、有意義的盈利能力並恢復頂級會員增長。同樣重要的是要注意，我們預計今年僅透過我們的保險計劃就能實現有意義的調整後 EBITDA 獲利能力。我們在建立對應產品方面取得了巨大進展，任何未來的財務影響都將是累加性的，但我們的指導中尚未考慮到這一點。

That said, since launching this offering, we have continued to receive strong market interest for our platform with more potential partnerships in the works. We believe we have a robust pipeline and unique product market fit in a broader MA market that has cited utilization issues and other headwinds over the past year.

也就是說，自從推出此產品以來，我們的平台繼續受到市場的強烈興趣，並且正在進行更多潛在的合作夥伴關係。我們相信，我們擁有強大的產品線和獨特的產品市場，適合更廣泛的 MA 市場，該市場在過去一年中遇到了利用率問題和其他不利因素。

To this point, the strong MA results in our own plans, is a key differentiated advantage that validates our pitch to third-party customers. My strong belief is that we kick started a unique and powerful virtuous cycle, with our Clover insurance offering, leveraging our technology to drive quality. That, in turn should drive better results on our internal book of business, which then serves as a validation to third-party customers for counterpart.

到目前為止，我們自己的計劃中強大的 MA 結果是驗證我們向第三方客戶推銷的關鍵差異化優勢。我堅信，我們透過 Clover 保險產品啟動了一個獨特而強大的良性循環，利用我們的技術來提高品質。反過來，這應該會為我們的內部業務帶來更好的結果，然後作為第三方客戶對應方的驗證。

Each piece is both complementary and interconnected and builds upon the other. We are continuing to build out this SaaS and tech-enabled services offering, and we plan to share more specific financial guidance and expectations at a later date.

每一部分都是互補的、相互關聯的，並且建立在另一部分的基礎上。我們正在繼續建立這種 SaaS 和技術支援的服務產品，並計劃稍後分享更具體的財務指導和期望。

Before handing it to Peter for the financial update, I will touch on how we are thinking about MA plan growth. As a reminder, our focus during 2024 has been on retention and margin improvement in our returning member cohorts. We are executing against this and our first half results strongly position us to deliver upon these goals for the full year.

在將財務更新交給 Peter 之前，我將談談我們如何考慮 MA 計劃的成長。提醒一下，我們 2024 年的重點是回訪會員群體的保留率和利潤率的提高。我們正在為此執行，上半年的業績使我們能夠在全年實現這些目標。

For our 2025 growth strategy and bids, we are holding off on sharing specific details until more industry and competitor information is available. That said, CMS' recent recalculation of our PPO Star Rating up to 3.5 stars, has resulted in an exciting shift in our go-forward approach as we now have more flexibility to reinvest in plan benefit design to help drive growth.

對於我們的 2025 年成長策略和投標，我們暫緩分享具體細節，直到我們獲得更多產業和競爭對手資訊。也就是說，CMS 最近將我們的PPO 星級重新計算為3.5 顆星，這導致我們的前進方法發生了令人興奮的轉變，因為我們現在可以更靈活地對計劃福利設計進行再投資，以幫助推動增長。

It is also important to note that we were the only plan in our primary markets to get a star rating increase from this recalculation. Our intent next year is to continue to grow top-line insurance revenues in excess of the market, while simultaneously improving our underlying cohort economics to drive increased long-term profitability.

同樣重要的是要注意，我們是主要市場中唯一透過此次重新計算獲得星級評定的計劃。我們明年的目標是繼續增加超過市場的頂線保險收入，同時改善我們的基礎群體經濟，以推動長期獲利能力的提高。

Ultimately, we'll have to see how the competitive positioning plays out, but we feel very good about our pricing and how we've positioned our business next year to build on our 2024 performance and momentum. With that, I will now pass it over to Peter.

最終，我們必須看看競爭定位如何發揮作用，但我們對我們的定價以及明年如何定位我們的業務以建立 2024 年的業績和勢頭感到非常滿意。現在我將把它交給彼得。

Thank you Andrew. Before diving into our results, I would like to share a few quick notes on the company from my perspective, as I've settled into my role. Overall, I'm very pleased to join Clover at such an exciting time and I'm continually impressed by the industry-leading AI power technology, talent and general business momentum of the company.

謝謝你安德魯。在深入研究我們的結果之前，我想從我的角度分享一些關於公司的簡短說明，因為我已經適應了自己的角色。總的來說，我很高興在如此令人興奮的時刻加入 Clover，該公司領先業界的 AI 電力技術、人才和整體業務勢頭給我留下了深刻的印象。

I believe that our business is steadily improving its profitability profile, and I am excited to be part of a company that has created a unique framework to improve the lives of people with chronic diseases while simultaneously building an attractive and scalable financial opportunity. I'm also excited by the opportunity to expand the use of our proven technology through our Counterpart Health SaaS and tech-enabled services offering.

我相信我們的業務正在穩步提高其盈利能力，我很高興能成為一家公司的一員，該公司創建了一個獨特的框架來改善慢性病患者的生活，同時建立一個有吸引力的、可擴展的金融機會。我也很高興有機會透過我們的 Counterpart Health SaaS 和技術支援的服務產品擴大我們成熟技術的使用。

Turning back to our earnings conference. I will first cover the second quarter financial highlights and then review our improved guidance for full year 2024. Clover's core fundamentals as strong. As Andrew mentioned, the second quarter was Clover's first positive GAAP net income from continuing operations quarter as a public company.

回到我們的收益會議。我將首先介紹第二季的財務亮點，然後回顧我們改進後的 2024 年全年指引。Clover 的核心基礎同樣強大。正如安德魯所提到的，第二季度是 Clover 作為上市公司持續營運季度的第一個 GAAP 淨利潤為正的季度。

Second quarter GAAP net income was a profit of $7 million as compared to a GAAP net loss of $29 million in the second quarter of last year. Similarly, adjusted EBITDA improved to a profit of $36 million in the second quarter of this year compared to $10 million in the second quarter of last year. Year-to-date, we have significantly improved our year-over-year profitability profile, driven by strong MA planned momentum and a continued focus on optimizing adjusted SG&A.

第二季 GAAP 淨利為 700 萬美元，而去年第二季 GAAP 淨虧損為 2,900 萬美元。同樣，今年第二季調整後的 EBITDA 利潤從去年第二季的 1,000 萬美元增至 3,600 萬美元。年初至今，在強勁的 MA 計劃勢頭以及持續關注優化調整後的 SG&A 的推動下，我們的盈利狀況同比顯著改善。

As a result, we've incorporated this first half capability into our full year outlook, to significantly improve our adjusted EBITDA profitability guide for full year 2024. As a reminder, last quarter we shared that we would introduce a new operational metric to further improve transparency in our insurance performance and to better align with industry standards. This is the insurance Benefits Expense Ratio or insurance BER.

因此，我們已將上半年的能力納入全年展望中，以顯著改善 2024 年全年調整後的 EBITDA 獲利能力指南。提醒一下，上季度我們表示，我們將引入新的營運指標，以進一步提高保險業績的透明度並更好地符合行業標準。這是保險福利費用比率或保險 BER。

We calculate the BER, by defining the sum of total insurance medical claim expenses and quality improvement costs by insurance premiums. The BER does not affect our adjusted EBITDA calculation in any way, as this quality improvement costs shift within our SG&A.

我們透過定義保險醫療索賠總費用和保險費的品質改進成本總和來計算 BER。BER 不會以任何方式影響我們調整後的 EBITDA 計算，因為品質改善成本在我們的 SG&A 內轉移。

We believe that by also including expense related to enhancing health care quality in the numerator of the calculation, we are more accurately reflecting our investments in health care quality and member engagements. This ratio better captures the true cost of maintaining and enhancing the quality of care for our members and provides better comparability into our performance versus industry peers.

我們相信，透過將與提高醫療保健品質相關的費用納入計算分子，我們可以更準確地反映我們在醫療保健品質和會員參與方面的投資。此比率更能反映了維持和提高會員護理品質的真實成本，並為我們的績效與行業同行提供了更好的可比性。

During the second quarter, insurance BER improved to 76.1% in 2024 as compared to 82.1% in the second quarter of 2023. MCR also improved to 71.3% in the second quarter from 77.2% in the second quarter of last year. Our strong margin performance was coupled with continued year-over-year top-line organic insurance revenue growth of 11% in the second quarter to $350 million at 10% growth year-to-date to $692 million. Driven by strong member retention, cohort unit economics and a return to intra-year growth outside of AEP.

第二季度，保險 BER 從 2023 年第二季的 82.1% 提高到 2024 年的 76.1%。MCR 也從去年第二季的 77.2% 提高到第二季的 71.3%。我們強勁的利潤率表現加上第二季度有機保險收入年增 11% 至 3.5 億美元，年初至今成長 10% 至 6.92 億美元。受到強勁的會員保留率、群組單位經濟效益以及 AEP 之外的年內成長恢復的推動。

On a year-to-date basis, BER was 79.6% and MCR of 74.5%, both of which represent strong improvements of over 700 basis points year-over-year. During both periods this year, we benefited from the continued maturation of our core MA plant operations and the focus on returning member retention with strong unit economics that Andrew touched on earlier. We've also experienced prior period development on both revenue metric both in 2Q as well as on a year-to-date basis. Which has depressed the year-to-date BER to lower levels.

年初至今，BER 為 79.6%，MCR 為 74.5%，這兩項指標均較去年同期大幅提升 700 個基點。在今年的這兩個時期，我們受益於我們的核心 MA 工廠業務的持續成熟，以及安德魯早些時候提到的強勁單位經濟效益對回返會員保留的關注。我們在第二季和年初至今的收入指標上也經歷了前期的發展。這使得年初至今的 BER 降至較低水準。

That said, we expect the BER to be between 81% and 83% for full year 2024 and to land in the mid-80s percentage on a full year in current basis after normalizing for the aforementioned prior period development. Of note, the results are still undefined by elevated IBNR levels.

也就是說，我們預計 2024 年全年的 BER 將在 81% 至 83% 之間，並且在上述前期發展正常化後，按當前基準計算，全年的 BER 將降至 80 % 左右。值得注意的是，結果仍因 IBNR 水準升高而不確定。

As mentioned during our last call, this was and is due to the changed health care disruption and a transition to our new MA plan ecosystem at the start 2024. We continue to expect normalization of our IBNR levels by year-end.

正如我們在上次電話會議中提到的，這過去和現在都是由於醫療保健中斷的變化以及 2024 年初向我們新的 MA 計劃生態系統的過渡。我們繼續預計 IBNR 水準將在年底前實現正常化。

On the SG&A front, during the second quarter, total SG&A spending was down 4% year-over-year, while adjusted SG&A of $72 million was modestly higher than the comparable period. On a year-to-date basis, total SG&A was down 12% and adjusted SG&A of $147 million was down 3% as compared to the same period in 2023.

在 SG&A 方面，第二季的 SG&A 支出總額較去年同期下降 4%，而調整後的 SG&A 為 7,200 萬美元，略高於同期。與 2023 年同期相比，年初至今，SG&A 總額下降了 12%，調整後的 SG&A 為 1.47 億美元，下降了 3%。

Our year-to-date 2024 results continue to include a temporary accounting reserve of approximately $2.5 million related to the increase in claims inventory estimates, we flagged during the first quarter as a result of the changed health care disruption and our internal MA plan operational transition.

我們的2024 年年初至今的業績繼續包括約250 萬美元的臨時會計準備金，該準備金與索賠庫存估計的增加有關，我們在第一季度指出，由於醫療保健中斷的變化和我們的內部MA 計劃營運轉型。

As our processing feasibility continues to normalize throughout the year, we expect this accounting we serve -- . Furthermore, both periods continue to see a favorable impact year-over-year from the cost-saving initiatives associated with our new operational ecosystem and our workforce rationalization announced last year, partially offset by increased growth costs driven by strong OEP and SEP growth.

隨著我們的處理可行性在全年中繼續正常化，我們預計我們所服務的會計——。此外，與去年宣布的新營運生態系統和勞動力合理化相關的成本節約措施在這兩個時期繼續產生了同比有利影響，但部分被 OEP 和 SEP 強勁成長推動的成長成本增加所抵消。

Looking ahead, we remain on track to achieve meaningful full year adjusted SG&A savings versus last year. That said, any light of our strong adjusted EBITDA profitability performance to the first half of the year and the growth opportunity we now have, we expect to strategically reinvest into our business during the second half of the year to build a foundation for long-term sustainable growth.

展望未來，我們仍有望實現與去年相比有意義的全年調整後 SG&A 節省。也就是說，考慮到我們上半年強勁的調整後 EBITDA 獲利表現以及我們現在擁有的成長機會，我們預計將在下半年對我們的業務進行策略性再投資，為長期發展奠定基礎。

As such, we anticipate coming in at the high end of our adjusted SG&A outlook for the full year, and we believe that any near-term investment in the long-term trajectory of the business will prove to drive strong returns in the future.

因此，我們預計全年調整後的 SG&A 前景將處於高端，我們相信，對業務長期軌蹟的任何短期投資都將在未來帶來強勁回報。

Turning to the balance sheet. We ended the second quarter of 2024 with total restricted and unrestricted cash, cash equivalents and investments totaling $483 million on a consolidated basis, the $201 million at the parent entity and unregulated subsidiary level.

轉向資產負債表。截至 2024 年第二季末，我們的合併後限制性和非限制性現金、現金等價物和投資總額為 4.83 億美元，其中母公司和不受監管的子公司層面為 2.01 億美元。

Cash flow from operations, excluding discontinued operations for the second quarter was $46 million. And I am proud that this has improved the company's already strong balance sheet. We continue to expect that our cash flow from operating activities during the full year 2024, excluding the impact from discontinued operations, will be positive.

第二季的營運現金流（不包括已終止的業務）為 4,600 萬美元。我感到自豪的是，這改善了公司本來就強勁的資產負債表。我們繼續預期 2024 年全年經營活動所產生的現金流量（排除已終止經營業務的影響）將為正值。

Taking this into account, we continue to expect our year end 2024 unregulated liquidity to be between $145 million and $165 million. Lastly, and as Andrew mentioned earlier, we have strong conviction that this allows us to operate from a position of strength and we expect to continue to be able to sell from growth in the next phase of our business.

考慮到這一點，我們繼續預期 2024 年底不受監管的流動性將在 1.45 億美元至 1.65 億美元之間。最後，正如安德魯之前提到的，我們堅信這使我們能夠以優勢地位開展業務，並且我們期望能夠在下一階段的業務成長中繼續實現銷售。

Additionally, we remain committed to the share repurchase program till we announced the connection with our first quarter earnings. As a reminder, our Board of Directors authorized the company to buy back up to $20 million of the company's Class A common stock over the next two years.

此外，我們仍然致力於股票回購計劃，直到我們宣布與第一季收益的聯繫。謹此提醒，我們的董事會授權公司在未來兩年內回購最多 2,000 萬美元的 A 類普通股。

Starting in May this year, we began returning capital to our shareholders, repurchasing approximately $2 million of stock during the quarter. We expect to continue to be nimble and prudently manage our capital allocation strategy to maximize value for our shareholders.

從今年 5 月開始，我們開始向股東返還資本，在本季回購了約 200 萬美元的股票。我們希望繼續靈活、審慎地管理我們的資本配置策略，為股東實現價值最大化。

Finally, I’ll provide an update to our improved full year 2024 guidance in light of our continued strong business momentum and fundamentals through the first half of the year. We are increasing our revenue guidance for the insurance line of business to now be between $1.350 billion and $1.375 billion. We are also introducing full year guidance for insurance BER to be within a range of 81% to 83%.

最後，鑑於我們上半年持續強勁的業務動能和基本面，我將更新改進後的 2024 年全年指引。我們正在將保險業務的收入指引提高至 13.5 億美元至 13.75 億美元之間。我們還推出了將保險 BER 控制在 81% 至 83% 範圍內的全年指引。

As I mentioned earlier, we expect this operational metric to be in the mid-80% range on an incurred basis. We are improving our insurance MCR to be within a range of 77% to 79%. We are maintaining our adjusted SG&A outlook to be between $270 million and $280 million. We are increasing our full year 2024 adjusted EBITDA guidance to be between $50 million and $65 million.

正如我之前提到的，我們預計該營運指標的實際發生率將在 80% 左右。我們正在將保險 MCR 提高到 77% 至 79% 的範圍內。我們將調整後的 SG&A 前景維持在 2.7 億美元至 2.8 億美元之間。我們將 2024 年全年調整後 EBITDA 指引值提高至 5,000 萬美元至 6,500 萬美元。

As Andrew touched upon, our profitability arc to date is driven by a strong insurance plan performance. We've proven this year that we can deliver significant returns with just a 3.5 star rating, with the opportunity for even better potential results, if and when we achieve higher star ratings.

正如安德魯所說，迄今為止我們的獲利能力是由強勁的保險計劃業績推動的。今年我們已經證明，只需 3.5 星評級即可帶來可觀的回報，如果獲得更高的星級評級，我們還有機會獲得更好的潛在結果。

Going beyond our MA plans, I'm particularly excited about what counterparts can add to our performance in the future, as we grow our external solution offerings. Counterpart Health continues to garner strong market reception with this robust pipeline. We expect this to only strengthen our ability to execute and improve the company's already strong corporate momentums.

除了我們的 MA 計劃之外，隨著我們不斷增加外部解決方案產品，我對同行能夠在未來為我們的業績帶來哪些提升感到特別興奮。Counterpart Health 憑藉其強大的產品線繼續獲得強勁的市場認可。我們預計這只會增強我們的執行能力並改善公司本已強勁的企業發展勢頭。

In summary, our goal at Clover is to maintain the momentum that we have developed in the last couple of years and continue to improve our business performance. I believe this is exactly what we've done during the first half of the year, positioning us well to achieve our adjusted EBITDA profitability goals in 2024 and improved our underlying core economics in 2025 to increase our long-term profitability capacity. Now let me turn the call back to Andrew for some closing comments.

總而言之，我們 Clover 的目標是保持過去幾年發展的勢頭，並繼續提高我們的業務績效。我相信這正是我們上半年所做的事情，使我們能夠很好地實現 2024 年調整後的 EBITDA 盈利目標，並在 2025 年改善我們的基礎核心經濟，以提高我們的長期盈利能力。現在讓我把電話轉回給安德魯，請他發表一些結束語。

Thanks, Peter. In conclusion, I'm very pleased with our performance during the first half of the year, I would like to thank the entire Clover team for their continued efforts in delivering such strong financial results.

謝謝，彼得。總而言之，我對我們上半年的表現非常滿意，我要感謝整個 Clover 團隊為實現如此強勁的財務表現所做的持續努力。

Before we head to Q&A, let me reiterate the key takeaways of the quarter from my perspective. One, we delivered positive net income for the first time as a public company and improved our full year 2024 adjusted EBITDA outlook.

在我們進行問答之前，讓我從我的角度重申本季的主要要點。第一，作為一家上市公司，我們首次實現了正淨利潤，並改善了 2024 年全年調整後 EBITDA 前景。

Two, business fundamentals are strong with double-digit top-line revenue growth and industry-leading loss ratios. Three, we improved our already healthy balance sheet and believe that we have the ability to self-fund future membership growth. Four, we're well positioned for long-term growth in Medicare Advantage via our PPO centric approach. And five, our strong performance in our own MA plan is driving interest in our Counterpart third-party offerings.

第二，業務基本面強勁，營收成長兩位數，虧損率業界領先。第三，我們改善了本已健康的資產負債表，並相信我們有能力為未來的會員成長提供自籌資金。第四，我們透過以 PPO 為中心的方法，為 Medicare Advantage 的長期成長做好了準備。第五，我們在自己的 MA 計劃中的強勁表現正在激發人們對我們的對應第三方產品的興趣。

Today's results demonstrate that we're able to perform well where others don't. We thrive in fragmented markets, and we don't rely on anchor health systems or value-based contracts. For most MA plans, these are challenging dynamics, but our technology-centric approach allows us to profitably sustain a benefit-rich wide network PPO plan.

今天的結果表明，我們能夠在其他人做不到的情況下表現出色。我們在分散的市場中蓬勃發展，我們不依賴固定的衛生系統或基於價值的合約。對於大多數 MA 計劃來說，這些都是具有挑戰性的動態，但我們以技術為中心的方法使我們能夠有利地維持利益豐富的廣泛網路 PPO 計劃。

We are generating meaningful adjusted EBITDA profitability at a 3.5-star rating, positioning us well for even better results if and when we achieve higher ratings. And unlike almost every other MA plan, we see ourselves accountable for the total cost of care for our entire book of business as opposed to others who heavily rely on risk delegation and capitation.

我們正在以 3.5 顆星的評級產生有意義的調整後 EBITDA 獲利能力，如果我們獲得更高的評級，我們將能夠取得更好的業績。與幾乎所有其他 MA 計劃不同的是，我們認為自己對整個業務的總護理成本負責，而不是其他嚴重依賴風險委託和按人頭付費的計劃。

Our strong insurance fundamentals, coupled with our Counterpart offerings, make for an exciting time to be a part of the Clover Health journey. Once again, thank you to everyone. and I very much look forward to providing more updates later in the year, as we continue to execute against our goals. With that, let's go to questions.

我們強大的保險基礎，加上我們的對應產品，讓您成為 Clover Health 旅程的一部分，度過一段激動人心的時光。再次感謝大家。我非常期待在今年稍後提供更多更新，因為我們將繼續實現我們的目標。接下來，讓我們開始提問。

(Operator Instructions).

（操作員說明）。

Richard Close, Canaccord Genuity.

理查德·克洛斯，Canaccord Genuity。

Thanks for the questions. Congratulations on the execution. Peter, I was wondering if you could comment a little bit just from a modeling perspective, as we think about it. Salary and benefits looks like it decreased about $3 million sequentially. And I was just curious if there's anything specific there that drove that? And how we should think about that I guess, in the second half? Is it pretty much steady state at the second quarter levels, I’ll leave it there.

感謝您的提問。恭喜執行。彼得，我想知道您是否可以從建模的角度發表一些評論，正如我們所考慮的那樣。薪資和福利看起來比上一季減少了約 300 萬美元。我只是好奇是否有什麼具體因素推動了這一點？我想在下半年我們該如何考慮這個問題？第二季的水平是否基本穩定，我會留在那裡。

Hi Richard, glad to be here. Thanks for the question. So overall, I would say, SG&A of course, we continue to optimize as we scale as well. If you kind of look at quarterization for your own model purposes, of course there's some seasonality in the fourth quarter as we make investments, both the quality and otherwise.

嗨，理查德，很高興來到這裡。謝謝你的提問。所以總的來說，我想說，SG&A 當然，我們在擴大規模的同時也持續優化。如果您出於自己的模型目的考慮季度化，那麼當我們進行投資時，第四季度當然會存在一些季節性，無論是品質還是其他方面。

But nothing specific to the second quarter, why that went down so much sequentially?

但沒有具體的第二季數據，為什麼季減這麼多？

It is continued optimization.

就是持續優化。

Okay. Andrew, maybe as my follow-up question on the Home Care business, there's been several, I guess articles out in the journal about home visits and I guess questioning the validity of that. I was curious if you could just walk us through the Home Care business for Clover, what you are doing there and maybe how it's different than, I guess, the home visits that are referenced in the journal articles.

好的。安德魯，也許作為我關於家庭護理業務的後續問題，我想雜誌上已經發表了幾篇關於家訪的文章，我想質疑其有效性。我很好奇您是否可以向我們介紹一下 Clover 的家庭護理業務，您在那裡做什麼，也許它與期刊文章中引用的家訪有何不同。

Thanks. Richard. And just on your previous question, I just want to note that, as Peter says, there is nothing new that we're doing. But for year-over-year comparisons on SG&A, we have spoken for several quarters. Prior to Peter joining as well, I talked about how we were transitioning to a new operating infrastructure with our partnerships and how we are moving some operations to some partners.

謝謝。理查德.關於你之前的問題，我只想指出，正如彼得所說，我們沒有做任何新的事情。但對於 SG&A 的年比比較，我們已經討論了幾個季度。在彼得加入之前，我談到了我們如何透過合作夥伴關係過渡到新的營運基礎設施，以及我們如何將一些業務轉移給一些合作夥伴。

And I think that you're seeing some of that effect flow through just as we discussed about a year ago at this point. So nothing new, but I just want to remind everybody that, that's us executing upon our plans that we discussed starting from the middle of last year.

我認為，正如我們大約一年前此時討論的那樣，您會看到其中的一些影響。所以沒什麼新鮮事，但我只是想提醒大家，我們正在執行我們從去年年中開始討論的計劃。

Regarding the Home Care and how we do things differently, I think there is a couple of different dimensions here that I want to emphasize. Number one, we are very focused on looking after the sickest and most complicated within members within the home. And we believe that the home setting is the best place for that. That's why we have in our Home Care system, we do have nurse practitioners, but we also have MDs we have DOs, and we are actually taking over primary care for a lot of the folks in our Home Care practice.

關於家庭護理以及我們如何以不同的方式做事，我認為這裡有幾個不同的方面我想強調。第一，我們非常重視照顧家中病情最嚴重、最複雜的成員。我們相信家庭環境是實現這一點的最佳場所。這就是為什麼我們的家庭護理系統中有執業護士，但我們也有醫學博士，我們有DO，而且我們實際上正在接管家庭護理實踐中許多人的初級護理。

So we see the sickest as being looked at there from a primary care perspective, and that is our focus, and that's what I discuss a lot. We also do some nursing visits, but a lot of the times those nurses are looking at chronic diseases, making sure that they are being managed properly and then most importantly, referring into that primary care system.

因此，我們認為從初級保健的角度來看待病情最嚴重的人，這是我們的重點，也是我經常討論的內容。我們也進行一些護理訪問，但很多時候這些護士正在研究慢性疾病，確保它們得到適當的管理，然後最重要的是，參考初級保健系統。

So if we think that someone is getting sicker, and they need more close attention, we take over that primary care relationship. And I think that's very different on a very different Home Care strategy than what you see others basically focusing on.

因此，如果我們認為某人病情加重，需要更多密切關注，我們就會接管初級保健關係。我認為，家庭照護策略與您看到的其他人基本上關注的策略非常不同。

I think another dimension that we should talk about here is that our technology Clover Assistant and the Assistant platform brings together the care team between primary care, nursing visits, and to make sure that data is moving back and forth between these various areas. And so when you get a visit from a member of our Home Care, Care team, our members are being looked after in their home, but that information and data we also share to any user of CA and that's available within the interoperability ecosystem in a longitudinal way using Clover Assistant.

我認為我們在這裡應該討論的另一個方面是我們的技術 Clover Assistant 和 Assistant 平台將初級護理、護理就診之間的護理團隊聚集在一起，並確保數據在這些不同領域之間來回移動。因此，當您接到我們的家庭護理、護理團隊成員的來訪時，我們的成員會在家中受到照顧，但我們也會與CA 的任何用戶共享這些資訊和數據，並且可以在互通性生態系統中以使用Clover Assistant的縱向方式。

So I think both those things are very key aspects that differentiate our program from others. As a final note, we are very proud that our Home Care program has an extremely high Net Promoter Score and that is something we monitor very closely in terms of whether people would recommend the program to others.

所以我認為這兩件事都是使我們的計劃與其他計劃區分開來的非常關鍵的方面。最後一點，我們非常自豪我們的家庭護理計劃擁有極高的淨推薦值，我們非常密切地監控人們是否會向其他人推薦該計劃。

Jason Cassorla, Citi.

賈森·卡索拉，花旗銀行。

Great. Thanks. Good afternoon. -- Peter, can you give us a sense on what the MRA crew adjustment was in the quarter. And I wanted to double check on the normalized BER for 2024. It sounds like that would be in the mid-80s range, excluding this favorable reserve development. Is that the right baseline we should be thinking about to jump off next year?

偉大的。謝謝。午安. -- Peter，您能為我們介紹一下 MRA 船員在本季的調整情況嗎？我想仔細檢查 2024 年的標準化 BER。聽起來，如果不考慮這個有利的儲備開發，這個數字應該是在 80 年代中期的範圍內。這是我們明年應該考慮的正確基線嗎？

And then in guidance kind of would suggest a bit of a steep step-up in cost trends in the back half of 2024. Just is there anything kind of outside of normal seasonality or your conservative posturing that you are seeing and maybe what you're seeing just maybe just broadly cost trend wise for July would be helpful. Thanks.

然後，在指引中，會建議 2024 年下半年成本趨勢會急遽上升。只是是否有任何超出正常季節性或您所看到的保守姿態的東西，也許您所看到的只是 7 月的大致成本趨勢會有所幫助。謝謝。

Thank you for the question. I think there's about five in there, so we'll try to and to all of them. As far as BER, like in the prepared remarks, we expect on an incurred basis to be around the mid-80s percentage. As far as developments in the month of July, we do see more processing of IBNR and pay claims. The volume is picking up nicely in the month of July. And as far I think as far as the adjustment in this year, I don't think we have previously disclosed that, and I don't think we will on this call either.

謝謝你的提問。我認為那裡大約有五個，所以我們會盡力解決所有問題。就 BER 而言，就像在準備好的評論中一樣，我們預計實際發生率將在 80 年代中期左右。就 7 月的發展而言，我們確實看到了更多 IBNR 和工資索賠的處理。七月的成交量明顯回升。就我而言，就今年的調整而言，我認為我們之前沒有披露過這一點，我認為我們也不會在這次電話會議上披露這一點。

Okay. So just to be clear for other one. Just the mid-80s incurred is the right jump off? Are there other nuances?

好的。所以只是為了澄清另一件事。80 年代中期是正確的起點嗎？有其他細微差別嗎？

Yes. We haven't given specific guidance yet for fiscal payment year 2025, if you will, but for 2024, we expect BER on a current basis to be in the mid-80s percentage. If you pass it on total year, yes, of course, it is a jump off point into 2025, but I think we want to be clear that we haven't necessarily commented on 2025 yet.

是的。如果您願意的話，我們尚未給出 2025 年財政支付年的具體指導，但對於 2024 年，我們預計 BER 在當前基礎上將在 80 % 左右。如果你通過了總年份，是的，當然，這是進入 2025 年的起點，但我認為我們想明確的是，我們尚未對 2025 年發表評論。

Sure. Of course. Okay. Got it. And then maybe just as my follow-up. I want to make sure I heard this right, too. It sounds like you are looking to perhaps spend away incremental upside on MCR for business reinvestment purposes. I just want to make sure, did I hear that correctly?

當然。當然。好的。知道了。然後也許就像我的後續行動一樣。我也想確保我沒聽錯。聽起來您可能希望將 MCR 的增量收益用於業務再投資目的。我只是想確認一下，我聽對了嗎？

\And then maybe in that context, can you walk us through the unregulated cash bridge for 2024? It sounds like you're still keeping that $145 million to $165 million expectation for year-end. Obviously, you had a better EBITDA result kind of year-to-date than expected. I was just hoping you could bridge the cash for us as well. Thanks

\然後也許在這種情況下，您能否引導我們通過 2024 年不受監管的現金橋樑？聽起來您仍然保持年底 1.45 億至 1.65 億美元的預期。顯然，今年迄今的 EBITDA 結果比預期要好。我只是希望你也能為我們提供現金。謝謝

Yes. Thank you for those two questions. So maybe start with the cash first, right? So as for the prepared remarks, we have $201 million of unregulated cash and as you walk that forward to the end of the year, we have an ACO REACH repayment, if you will of the deposit of around $39 million, as I can sit here around $160 million of unregulated cash.

是的。謝謝你提出這兩個問題。所以也許先從現金開始，對吧？至於準備好的評論，我們有2.01 億美元不受監管的現金，當你將其推進到年底時，如果你願意的話，我們有ACO REACH 償還款，大約3900 萬美元的存款，因為我可以坐在這裡約 1.6 億美元不受監管的現金。

So being a little bit conservative on the second half in the outlook, if you will but we feel good overall. So that gets you to that range if you will. As far as investments in the business for long-term profitability and growth. So we're increasing over time, of course, the capacity and the capability of the model to produce increase in profitability. And so you should think about quality investments, as well system investments, right. And of course, also sales investments over time. But I will say shy of discussing specifically our sales strategies as we go to market later this year.

因此，如果您願意的話，我們對下半年的前景有點保守，但我們總體感覺良好。如果你願意的話，這會讓你達到這個範圍。至於對業務的投資是為了實現長期獲利和成長。當然，隨著時間的推移，我們會不斷增強模型的容量和能力，以提高獲利能力。所以你應該考慮品質投資以及系統投資，對吧。當然，還有隨著時間的推移進行的銷售投資。但我想說的是，當我們今年稍後進入市場時，我不敢具體討論我們的銷售策略。

Whit Mayo, Leerink Partners.

惠特·梅奧，Leerink 合夥人。

Hi, thanks. Good afternoon. I know you don't want to disclose the MRA payment, but I just wanted to maybe understand what's driving it. It seems like you confirmed that you did have an MRA payment, which happens in the second quarter. And was there a higher than average favorability in that payment this year.

你好，謝謝。午安.我知道您不想透露 MRA 付款，但我只是想了解背後的原因。您似乎已確認確實有 MRA 付款，該付款發生在第二季。今年付款的好感度是否高於平均？

Yes. I don't think we disclose that necessarily.

是的。我認為我們不一定要披露這一點。

Okay. Maybe just second question. There is been a lot of industry chatter on the two midnight rule and just curious if you're seeing any noticeable movement there that you can detect this.

好的。也許只是第二個問題。關於午夜兩點規則，業界有很多討論，只是好奇您是否看到任何明顯的運動可以檢測到這一點。

We've been following vendor two midnight like we've been following the rule, obviously, for a little while. We've always been following the CMS guidance on this. And so I think, we've been a little less perturbed by this as others. And so things are basically proceeding as we foresee no real net impact for us.

我們一直在半夜跟隨供應商二號，就像我們一直在遵守規則一樣，顯然，有一段時間了。我們一直遵循 CMS 的相關指引。所以我認為，我們不像其他人那樣對此感到不安。因此，事情基本上正在進展中，因為我們預計不會對我們產生真正的淨影響。

Thanks, guys.

謝謝，夥計們。

Just one quick point as well. I think that as we look at all these and as we introduced the various numbers here, having, we used the MCR before and a few of you are asking about the BER number here. I think that the idea is that I would note that we are sharing the incurred number into be the mid-80s and that incurred number would be obviously not carrying forth any TPD. And so that's why that number will be slightly different than the number in the guidance.

也只有一點。我認為，當我們審視所有這些並在此介紹各種數字時，我們之前使用過 MCR，你們中的一些人在這裡詢問 BER 數字。我認為我的想法是，我會注意到我們正在共享 80 年代中期的已發生數字，而該已發生數字顯然不會帶來任何 TPD。這就是為什麼該數字將與指南中的數字略有不同。

Andrew, can I follow up on one other thing. -- Just when you talk about July, I'm not exactly sure I follow exactly what you mean by more claims processing. Is that -- is this a good thing, bad thing? Maybe just elaborate a little bit more on what you're saying.

安德魯，我可以跟進另一件事嗎？ -- 就在您談到 7 月時，我不太確定我是否完全理解您所說的更多索賠處理的意思。這是──這是好事還是壞事？也許只是詳細說明一下您所說的內容。

Yes, I can answer that one. So as you saw in the prepared remarks for this quarter, but also last quarter, both because of the changed health care incident, if you will plus then our switchover to a new provider a new partner, we have elevated IBNR levels in the unpaid claims, right. So that comp at regard to July is really that we see good progress in the processing volume of those unpaid claims. So we expect that balance to further reduce through this quarter and (Technical difficulty).

是的，我可以回答這個問題。因此，正如您在本季度以及上個季度準備好的評論中看到的那樣，由於醫療保健事件的變化，如果您願意加上我們轉向新的提供者和新的合作夥伴，我們的未付索賠中的IBNR 水準將會提高， 正確的。因此，與 7 月相比，我們確實看到這些未付索賠的處理量取得了良好進展。因此，我們預計本季這一餘額將進一步減少（技術難度）。

Okay. So that wasn't a comment on utilization. It was a comment on working through the back.

好的。所以這不是對利用率的評論。這是對背部工作的評論。

Yes.

是的。

(Operator Instructions)

（操作員說明）

All right, folks. Thanks for all the questions. So just to reiterate, we believe that we are the only technology powered managed care company in the market that's aiming to deliver better clinical outcomes, better cost of care, as well as physician choice.

好吧，夥計們。感謝您提出所有問題。因此，重申一下，我們相信我們是市場上唯一一家以科技為動力的管理式醫療公司，旨在提供更好的臨床結果、更好的照護成本以及醫生的選擇。

Really, we believe that this is the future of Medicare Advantage, and we look forward to continuing to lead in this aspect via Clover's unique tailwinds and technology-powered care platform. Thank you all again for joining our call today, and I look forward to sharing more on our achievements in the second half of the year. Thanks, everyone.

確實，我們相信這就是 Medicare Advantage 的未來，我們期待透過 Clover 獨特的順風和技術驅動的護理平台繼續在這方面處於領先地位。再次感謝大家今天加入我們的電話會議，我期待能更多地分享我們下半年的成就。謝謝大家。

Thank you, Mr. Toy. This concludes today's Clover Health second-quarter 2024 earnings call and webcast. You may disconnect your line at this time, and have a wonderful day. Goodbye.

謝謝你，玩具先生。今天的 Clover Health 2024 年第二季財報電話會議和網路廣播到此結束。此時您可以斷開線路，度過美好的一天。再見。