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Jun 30, 2022

Clarivate Q2 2022 Earnings Report

Second quarter 2022 results were reported.

Key Takeaways

Clarivate reported a 54.0% increase in revenues to $686.6 million, with organic revenues increasing by 4.8%. Net income attributable to ordinary shares increased by $175.2 million to $43.7 million. Adjusted EBITDA increased by 45.2% to $274.4 million.

Revenues increased 54.0%, and 59.9% at constant currency.

Organic revenues increased 4.8%.

Net income attributable to ordinary shares increased $175.2 million.

Adjusted EBITDA increased 45.2%.

Total Revenue
$687M
Previous year: $447M
+53.6%
EPS
$0.22
Previous year: $0.17
+29.4%
Adjusted EBITDA
$274M
Previous year: $189M
+45.2%
Subscription Revenue
$407M
Previous year: $244M
+67.2%
Transactional Revenue
$168M
Previous year: $89.8M
+87.1%
Gross Profit
$443M
Previous year: $309M
+43.2%
Cash and Equivalents
$360M
Previous year: $2.6B
-86.2%
Free Cash Flow
$49.5M
Previous year: $58.6M
-15.6%
Total Assets
$18.8B
Previous year: $18.8B
+0.4%

Clarivate

Clarivate

Forward Guidance

Clarivate updated its 2022 outlook primarily due to significant foreign exchange headwinds and macro-economic pressure. The integration of ProQuest is ahead of schedule, which will result in additional cost synergies in 2022, helping to partially offset the reduction in this year's profit.

Positive Outlook

  • Revenues $2.70B to $2.76B
  • Adjusted EBITDA $1.12B to $1.16B
  • Adjusted EBITDA margin 41% to 42%
  • Adjusted Diluted EPS $0.80 to $0.90
  • Adjusted Free Cash Flow $600M to $650M

Challenges Ahead

  • Significant foreign exchange headwinds
  • Macro-economic pressure
  • Reduction in this year's profit
  • Revenues previous guidance $2.80B to $2.88B
  • Adjusted EBITDA previous guidance $1.16B to $1.22B