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Dec 31, 2023
Clarivate Q4 2023 Earnings Report
Clarivate's Q4 2023 performance was reported, noting revenue increase and challenges from transactional revenue decline.
Key Takeaways
Clarivate's Q4 2023 saw a revenue increase of 1.2% to $683.7 million, but experienced a net loss of $863.0 million due to non-cash impairment charges. Subscription and re-occurring revenues grew, offsetting a decline in transactional revenue. The company is implementing a transformation plan to improve organic revenue growth.
Revenues increased by 1.2% to $683.7 million, but decreased 0.6% at constant currency.
Net loss attributable to ordinary shares was $863.0 million due to non-cash impairment of goodwill and intangible assets.
Adjusted EBITDA decreased by 2.0% to $298.2 million with a margin of 43.6%.
Free cash flow increased by $36.5 million to $127.0 million.
Revenue by Geographic Location
Forward Guidance
Clarivate anticipates improved organic growth in 2024 in subscription and re-occurring revenue, offset by soft transactional revenue and a small divestiture. Growth investments are expected to cause a modest contraction of the profit margin, while capital spending will increase to drive product innovation. Strong cash flow will be used to reduce debt.
Positive Outlook
- Improved organic growth in subscription revenue
- Improved organic growth in re-occurring revenue
- Increased capital spending to drive product innovation
- Strong cash flow
- Continued debt reduction
Challenges Ahead
- Soft transactional revenue
- Small divestiture in the IP segment
- Modest contraction of profit margin
- Increased capital spending
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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