CEO Andrew Toy said "accelerating our path to profitability" is the company's top priority.
Clover Health trimmed its losses in the fourth quarter (Q4) of 2022 and experienced healthy revenue gains, according to the company's earnings report.
The insurtech's report showed $84 million in loss in Q4, a sizeable improvement from the $187.2 million loss incurred over the same period in 2021. For the full year, losses were $338.8 million in 2022, compared to $587.8 for 2021.
Meanwhile, Clover's revenue more than doubled year over year. After generating $432 million in Q4 of 2021, the company accumulated $898.8 million in Q4 of 2022 to finish the year with $3.47 billion, a marked increase from $1.47 billion in 2021.
Clover Health CEO Andrew Toy said the company is focused on continuing to make gains to quickly turn losses into profit.
"In 2023, accelerating our path to profitability is our top priority, and I am excited by Clover Assistant's role in helping physicians identify and manage chronic diseases earlier, which improves care for Medicare beneficiaries," Toy stated.
Toy assumed the role of CEO in January of this year after first serving as Clover's CTO and then president and board member.
In a recent exclusive interview with HealthLeaders, Toy discussed the company's leadership transition and how his tech background benefits him in his new position.
He also talked about how Clover Assistant is a major asset for not just the company, but for physicians who can utilize it to support what they do.
"The analogy I use for Clover Assistant is the GPS. It provides useful, specific data that could inform a better route that supplements or complements a provider’s clinical care," Toy said.
With Toy now at the helm, Clover is eyeing continued growth in 2023. The company stated that insurance revenue is expected to be in the range of $1.15 billion to $1.20 billion this year, representing a growth rate of 6% to 11% as compared to 2022. Non-insurance revenue, meanwhile, is expected to be in the range of $750 million to $800 million.
One way to keep up growth is by increasing membership once again, as the company did last year. Clover saw an increase from 68,120 insurance members in 2021 to 88,627 for 2022, and a drastic rise in non-insurance beneficiaries from 61,876 in 2021 to 164,887 in 2022.
"I'm pleased we are achieving real momentum towards profitability," Toy said in the company's release. "We intentionally priced our Insurance plans for 2023 with profitability in mind while still expecting to grow our top-line Insurance revenue.
"We believe this, coupled with a maturing membership base and increased reimbursements based on our improved star ratings, will enable us to achieve continued meaningful improvement in our Insurance MCR in 2023."
Jay Asser is the contributing editor for strategy at HealthLeaders.
KEY TAKEAWAYS
Insurtech company Clover Health released its 2022 fourth quarter earnings report, showing an encouraging trajectory.
Losses fell from $187.2 million in Q4 of 2021 to $84 million over the same period in 2022, while revenue shot up from $432 million in 2021 to $898.8 million last year.
New CEO Andrew Toy stated the company is positively trending towards profitability and expects more growth in 2023.