Eying revenue growth
Alphabet-backed (GOOGL) healthcare insurance startup Clover Health is looking to grow its revenues by 23.6% to $330 million in 2018, as it expands beyond its New Jersey initial footprint. The startup generated $267 million in revenues in 2017, up from $184 million in 2016.
In a recent interview with Bloomberg, Clover co-founder and chief executive officer Vivek Garipalli revealed that the startup suffered a $22-million loss in 2017. But the loss narrowed from $35 million in the previous year.
Clover is looking to control costs more efficiently this year, even as it invests in more growth. Alphabet lost money through its investing activities in 2017, with the company reporting $18.2 billion in negative cash flow from investing activities in the year.
Clover on its expansion drive
Clover began its operations four years ago in New Jersey, and it’s now expanding into more markets. It recently expanded into parts of Georgia, Texas, and Pennsylvania—and more could follow.
Clover says its goal is to reduce insurance costs, and it does this by leveraging technology to improve data analysis and by providing preventative health measures.
Concern over healthcare costs
Rising costs have become a major concern for healthcare insurance purchasers, and this is believed to be the reason that Amazon.com (AMZN), Berkshire Hathaway (BRK.A) (BRK.B), and JPMorgan Chase (JPM) recently teamed up to try to shake up the health insurance market. The move caused shares of healthcare companies such as Express Scripts (ESRX) and CVS Health (CVS) to drop.
Clover was last valued at $1.2 billion
Alphabet, through its GV venture arm, helped raise $130 million for the San Francisco-based Clover in a May 2017 funding round that valued the startup at $1.2 billion.