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Jun 30, 2020

Clarivate Q2 2020 Earnings Report

Clarivate's financial performance in Q2 2020 showed revenue growth, driven by strategic initiatives and the integration of recent acquisitions.

Key Takeaways

Clarivate reported a 12.9% increase in revenues to $273.5 million and a 36.7% increase in Adjusted EBITDA to $100.1 million. The company reaffirmed its outlook for 2020, anticipating adjusted revenues between $1.13B and $1.16B and adjusted EBITDA between $395M and $420M.

Revenues increased by 12.9% to $273.5 million.

Adjusted revenues increased by 14.2% to $276.9 million.

Adjusted EBITDA increased by 36.7% to $100.1 million.

Net loss was $1.5 million, while adjusted net income was $69.5 million.

Total Revenue
$277M
Previous year: $242M
+14.2%
EPS
$0.18
Previous year: -$0.29
-162.1%
Adjusted EBITDA
$100M
Previous year: $73.2M
+36.7%
Subscription Revenue
$217M
Previous year: $203M
+6.8%
Transactional Revenue
$60.4M
Previous year: $39.7M
+52.1%
Gross Profit
$183M
Previous year: $156M
+17.2%
Cash and Equivalents
$609M
Previous year: $43.1M
+1313.0%
Free Cash Flow
$28.2M
Previous year: -$24.4M
-215.4%
Total Assets
$5.21B
Previous year: $3.69B
+41.3%

Clarivate

Clarivate

Forward Guidance

Clarivate reaffirmed its outlook for 2020, with adjusted revenues expected to be between $1.13 billion and $1.16 billion, and adjusted EBITDA between $395 million and $420 million.

Positive Outlook

  • Adjusted Revenues: $1.13B to $1.16B
  • Adjusted EBITDA: $395M to $420M
  • Adjusted EBITDA margin: 35% to 36%
  • Adjusted diluted EPS: $0.53 to $0.59
  • Adjusted Free Cash Flow: $220M to $240M

Challenges Ahead

  • Assumes a gradual lifting of restrictions governing the free movement of labor in mid-to-late third quarter of 2020.
  • Assumes economic activity begins to recover early in the fourth quarter of 2020.
  • Does not reflect any impact from our planned combination with CPA Global.
  • Assumes no further currency movements, acquisitions, or divestitures.
  • Assumes no unanticipated events.