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Mar 31, 2023

Clarivate Q1 2023 Earnings Report

Clarivate's Q1 2023 performance was reported, showing a mix of revenue decreases and strong cash flow.

Key Takeaways

Clarivate reported a 5.0% decrease in revenues to $629.1 million, driven by the divestiture of MarkMonitor and currency headwinds. Despite this, the company saw a 3.1% increase in subscription revenues and a significant rise in free cash flow to $168.2 million. The company reaffirmed its 2023 outlook, anticipating an acceleration of organic growth.

Revenues decreased by 5.0% to $629.1 million, with a 3.1% decrease at constant currency.

Organic revenues decreased by 0.2%, as subscription revenue growth was offset by declines in re-occurring and transactional revenues.

Net income attributable to ordinary shares decreased by $26.1 million to $24.7 million.

Free cash flow increased significantly by $142.2 million to $168.2 million.

Total Revenue
$629M
Previous year: $662M
-5.0%
EPS
$0.18
Previous year: $0.21
-14.3%
Adjusted EBITDA
$253M
Previous year: $262M
-3.7%
Subscription Revenue
$393M
Previous year: $404M
-2.6%
Gross Profit
$399M
Previous year: $413M
-3.3%
Cash and Equivalents
$364M
Previous year: $500M
-27.2%
Free Cash Flow
$168M
Previous year: $26M
+546.9%
Total Assets
$13.9B
Previous year: $19.7B
-29.4%

Clarivate

Clarivate

Forward Guidance

Clarivate reaffirmed its 2023 outlook, expecting an acceleration of organic growth and strong cash flows to invest in product innovation and strengthen the balance sheet.

Positive Outlook

  • Revenues between $2.63B to $2.73B
  • Organic Revenue Growth of 2.75% to 3.75%
  • Adjusted EBITDA between $1.10B to $1.16B
  • Adjusted EBITDA Margin of 42.0% to 42.5%
  • Free Cash Flow between $450M to $550M