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Mar 31, 2024

Clarivate Q1 2024 Earnings Report

Reported a decrease in revenues and a net loss attributable to ordinary shares due to lower transactional and re-occurring revenues.

Key Takeaways

Clarivate's first quarter results showed a slight decrease in revenues, driven by declines in transactional and re-occurring revenues, which offset growth in subscription revenues. The company reported a net loss attributable to ordinary shares and a decrease in adjusted EBITDA. However, Clarivate reaffirmed its full-year 2024 outlook.

Revenues decreased by 1.3% to $621.2 million.

Organic revenues decreased by 1.7%.

Net loss attributable to ordinary shares was $93.8 million, or $0.14 per diluted share.

Adjusted EBITDA decreased by 6.5% to $236.3 million.

Total Revenue
$621M
Previous year: $629M
-1.3%
EPS
$0.14
Previous year: $0.18
-22.2%
Adjusted EBITDA
$236M
Previous year: $253M
-6.5%
Subscription Revenue
$403M
Previous year: $393M
+2.5%
Transactional Revenue
$116M
Gross Profit
$403M
Previous year: $399M
+1.0%
Cash and Equivalents
$362M
Previous year: $364M
-0.7%
Free Cash Flow
$112M
Previous year: $168M
-33.5%
Total Assets
$12.5B
Previous year: $13.9B
-10.3%

Clarivate

Clarivate

Forward Guidance

Clarivate reaffirmed its 2024 full year outlook, anticipating a sequential improvement in organic revenue growth in the second quarter compared to the first quarter.

Positive Outlook

  • Revenues between $2.57B to $2.67B
  • Organic revenue growth between 0% to 2%
  • Adjusted EBITDA between $1.055B to $1.115B
  • Adjusted EBITDA margin between 41% to 42%
  • Adjusted diluted EPS between $0.70 to $0.80

Challenges Ahead

  • Assumes no further acquisitions.
  • Assumes no further divestitures.
  • Assumes no unanticipated events.
  • Organic revenue growth is only expected to be between 0% and 2%.
  • Free cash flow between $420M to $500M