What happened
Shares of Clover Health Investments (CLOV -1.51%) were soaring 9.8% as of 11:28 a.m. ET on Wednesday after skyrocketing as much as 22.6% earlier in the day. The nice gain came after the company announced its second-quarter results following the market close on Tuesday.
Clover Health reported Q2 revenue of $513.6 million. This result topped the consensus revenue estimate of $490.8 million. The company posted a net loss of $28.8 million, or $0.06 per share. The average analysts' estimate was for a loss of nearly $0.14 per share.
In addition, Clover Health delivered its first positive quarterly adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) as a public company. It also raised the lower end of its full-year insurance revenue guidance range from $1.18 billion to $1.2 billion. The upper end of the range remained steady at $1.23 billion.
So what
Investors like positive surprises. Clover Health gave them some with its Q2 update. One especially notable achievement was the company's improvement in its medical coverage ratio (MCR) from 92.1% to 77.2%.
The one glaring negative in Q2 wasn't a surprise. Clover Health's noninsurance revenue plunged 67% year over year to $193.3 million. However, the company had already disclosed its strategic shift away from the segment.
Now what
Clover Health CEO Andrew Toy thinks the company will be able to keep its momentum going in the second half of 2024. One key thing for investors to watch for now is whether Clover Health will be able to attain its goal of generating positive adjusted EBITDA for the full year.
