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Sep 30, 2020

Clarivate Q3 2020 Earnings Report

Clarivate's Q3 2020 results were reported, showing revenue growth and increased adjusted EBITDA, with the CPA Global acquisition completed and integration underway.

Key Takeaways

Clarivate reported a 17.0% increase in revenues to $284.4 million for Q3 2020. Adjusted EBITDA increased by 40.5% to $108.2 million. The company completed the acquisition of CPA Global and is focused on integration and realizing strategic benefits.

Revenues increased by 17.0% to $284.4 million.

Adjusted revenues increased by 17.9% to $286.5 million.

Adjusted EBITDA increased by 40.5% to $108.2 million.

Net loss was $37.2 million, or $(0.10) per diluted share.

Total Revenue
$287M
Previous year: $243M
+17.9%
EPS
$0.14
Previous year: $0.14
+0.0%
Adjusted EBITDA
$108M
Previous year: $77M
+40.5%
Subscription Revenue
$222M
Transactional Revenue
$64.4M
Gross Profit
$193M
Previous year: $156M
+23.5%
Cash and Equivalents
$601M
Previous year: $88.8M
+576.8%
Free Cash Flow
-$5.49M
Previous year: $50.8M
-110.8%
Total Assets
$5.15B
Previous year: $3.65B
+41.1%

Clarivate

Clarivate

Forward Guidance

Clarivate provided an updated outlook for 2020, including the fourth quarter of CPA Global, with adjusted revenues expected between $1.28B and $1.295B and adjusted EBITDA between $480M and $495M.

Positive Outlook

  • Adjusted Revenues: $1.28B to $1.295B
  • Adjusted EBITDA: $480M to $495M
  • Adjusted EBITDA margin: 37% to 38%
  • Adjusted diluted EPS: $0.55 to $0.61
  • Adjusted Free Cash Flow: $240M to $260M