•
Dec 31, 2021

Clarivate Q4 2021 Earnings Report

Clarivate's financial performance was solid, marked by revenue growth and improved Adjusted EBITDA margin, though transactional revenues faced headwinds.

Key Takeaways

Clarivate reported a 23.1% increase in revenues to $560.7 million for Q4 2021. Adjusted EBITDA increased by 28.3% to $256.6 million. The company reaffirms its outlook for 2022 and is taking steps to improve transactional revenues.

Revenues increased by 23.1% to $560.7 million.

Adjusted EBITDA increased by 28.3% to $256.6 million.

Adjusted organic revenues increased 4.0% at constant currency.

Net loss attributable to ordinary shares was $130.4 million, or $(0.20) per diluted share.

Total Revenue
$560M
Previous year: $471M
+18.9%
EPS
$0.23
Previous year: $0.22
+4.5%
Adjusted EBITDA
$257M
Previous year: $200M
+28.2%
Subscription Revenue
$306M
Previous year: $236M
+29.5%
Transactional Revenue
$135M
Previous year: $121M
+11.7%
Gross Profit
$373M
Previous year: $325M
+14.7%
Cash and Equivalents
$431M
Previous year: $258M
+67.2%
Free Cash Flow
-$14.1M
Previous year: $107M
-113.2%
Total Assets
$20.2B
Previous year: $15.2B
+32.8%

Clarivate

Clarivate

Forward Guidance

Clarivate anticipates significant growth driven by the acquisition of ProQuest and an increase in organic revenue. The company expects a 200-basis point improvement in organic revenue growth of approximately 6.5%. Adjusted EBITDA margin will slightly compress before fully recognizing cost synergies.

Positive Outlook

  • Significant growth driven by the acquisition of ProQuest.
  • Increase in organic revenue.
  • Expects to generate a 200-basis improvement in organic revenue growth of approximately 6.5%.
  • Enhanced inside sales model.
  • United go-to-market sales strategy centered around the One Clarivate vision.

Challenges Ahead

  • Adjusted EBITDA margin will slightly compress.
  • Need to fully recognize the more than $100 million of cost synergies related to the ProQuest acquisition by the end of 2023.
  • Assumes no further currency movements.
  • Assumes no further acquisitions.
  • Assumes no further divestitures.