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Dec 31, 2024
Clarivate Q4 2024 Earnings Report
Clarivate reported a decline in revenue and net income for Q4 2024 while continuing strategic restructuring efforts.
Key Takeaways
Clarivate's Q4 2024 revenue decreased by 3.0% year-over-year to $663.0 million, mainly due to divestitures. The company posted a net loss of $191.8 million, a significant improvement from the previous year's loss. Adjusted EPS came in at $0.21, down from $0.23. The company repurchased $200 million in shares and prepaid $198 million of debt as part of its capital allocation strategy.
Total revenue decreased by 3.0% to $663.0 million due to divestitures.
Net loss improved significantly to $191.8 million from $843.9 million in Q4 2023.
Adjusted EPS decreased to $0.21 from $0.23 in the prior-year quarter.
Clarivate repurchased $200 million in shares and prepaid $198 million of debt.
Revenue by Geographic Location
Forward Guidance
Clarivate expects flat recurring organic revenue growth in 2025 and plans to discontinue low-margin transactional products.
Positive Outlook
- Clarivate expects recurring organic revenue to remain stable in 2025.
- Company will continue focusing on subscription-based revenue growth.
- Cost structure will be aggressively managed to improve profitability.
- Capital allocation strategy includes continued share repurchases.
- Ongoing AI-powered product innovations expected to drive long-term growth.
Challenges Ahead
- Total revenue is expected to decline due to divestitures.
- Discontinuation of certain products may lead to short-term revenue losses.
- Macroeconomic challenges may impact transactional revenue streams.
- Lower IP patent renewal volumes continue to affect re-occurring revenue.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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