Clarivate Q1 2020 Earnings Report
Key Takeaways
Clarivate reported a revenue increase of 2.8% to $240.6 million in Q1 2020. Adjusted EBITDA increased by 32.1% to $78.2 million. The company also updated its outlook for 2020, reflecting the impact of the COVID-19 pandemic.
Revenues increased by 2.8% to $240.6 million.
Adjusted revenues, excluding divested businesses, increased by 10.5% at constant currency.
Adjusted EBITDA increased by 32.1% to $78.2 million.
The company is implementing cost control measures to offset short-term effects on the business due to the COVID-19 pandemic.
Clarivate
Clarivate
Forward Guidance
Clarivate updated its 2020 outlook, reflecting the anticipated impact of the COVID-19 pandemic. While adjusted EBITDA and adjusted free cash flow forecasts remained unchanged, adjusted revenues were revised downward.
Positive Outlook
- The company expects the virus to be brought under control in late Q2 2020.
- A gradual lifting of restrictions is expected in mid-to-late Q3 2020.
- Economic activity is anticipated to begin recovering in early Q4 2020.
- Adjusted EBITDA forecast remains unchanged.
- Adjusted Free Cash Flow forecast remains unchanged.
Challenges Ahead
- The company saw early effects of the COVID-19 pandemic on its business in China.
- The company implemented a contingency plan and a tiered cost reduction approach.
- Adjusted revenues were revised from $1.16-1.19B to $1.13-1.16B.
- The above outlook assumes no further currency movements.
- The above outlook assumes no further acquisitions, divestitures, or unanticipated events.