Clover Health’s health insurance performance improved but the company remained in the red for the first quarter, the startup reported Tuesday.
Health insurance revenue increased 14% to $317 million. But the company posted a net loss of $72.6 million, 3.8% less than the same period a year ago, on total revenue of $527.8 million, down 39.6%. Membership dropped 1.4% to 83,800.
“This quarter’s results, combined with our recent cost-reduction initiatives, represent great progress in accelerating our progress towards profitability.
The medical insurance and physician support company last month announced plans to outsource “core plan activities” and lay off 10% of its staff in the pursuit of profits. Clover Health predicts its partnership with technology company UST Health Proof will generate $30 million in annual savings starting next year.
Clover updated its full-year revenue guidance for its insurance business to $1.18 billion – $1.23 billion. Non-insurance revenue is projected to fall from $750 million to $800 million. The company plans to expand Clover Home Care, which uses the Clover Assistant platform, to markets outside of New Jersey, Toy said.
Insurtech is in danger of being delisted from the Nasdaq Stock Exchange because its shares are under $1. The company must raise the price of its stock above that threshold for at least 10 consecutive days by October 17, or it may be removed from the market. Clover is considering a reverse stock split.
Clover Health closed at 93 cents on Tuesday, up 6.1% from its opening price but down 94% since its initial public offering in January 2021.
Nona Tepper contributed to this story.
