Clover Health’s health insurance operations improved but the company remained in the red during the first quarter, the startup reported Tuesday.
Health insurance revenue increased 14% to $317 million. But the company suffered a $72.6 million net loss, 3.8% less than during the year-ago period, on $527.8 million in total revenue, which was down 39.6%. Membership declined 1.4% to 83,800.
“This quarter’s results, combined with our recent cost reduction initiatives, show great progress towards accelerating our timeline to profitability,” CEO Andrew Toy said during a call with investors.
The physician enablement and health insurance company last month announced plans to outsource its “core plan operations” and laid off 10% of its staff as it pursues profitability. Clover Health anticipates the partnership with technology company UST Health Proof to generate $30 million in annual savings beginning next year.
Clover updated its full-year revenue guidance for its insurance operations 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 its platform Clover Assistant, to markets outside New Jersey, Toy said.
The insurtech is at risk of being delisted from the Nasdaq Stock Exchange because its shares are below $1. The company must boost its stock price above that threshold for at least 10 consecutive days by Oct. 17 or it could be removed from the market. Clover is considering a reverse stock split.
Clover Health closed at 93 cents 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.
