Core Insights - Clarivate Plc has launched DRG Commercial Analytics 360, a solution aimed at enhancing commercial performance for medtech companies by providing advanced insights into customer activity and market dynamics [1][2]. Group 1: Product Features - DRG Commercial Analytics 360 integrates the Procedure Finder's search capabilities with Clarivate's extensive provider and affiliations network, delivering real-world, data-driven intelligence [2]. - The platform enables precise omnichannel targeting, seamless integration, and intelligent bundling, allowing medtech companies to make data-driven decisions that improve patient access and business outcomes [3]. - The solution offers actionable intelligence by providing tailored insights into healthcare providers, their network affiliations, and the locations where procedures are performed [5]. Group 2: Market Impact - The platform categorizes procedures by type and eliminates code-level duplication, ensuring a reliable view of procedure volume and flow across the U.S. market [5]. - It provides 360-degree market visibility through modularized claims and code groupings, supporting accurate market sizing and informed resource allocation [5]. - Clarivate's data scientists apply tailored extrapolation methodologies to derive nuanced insights across various market segments, backed by expertise in medtech and U.S. healthcare [5].

Core Insights - Clarivate Plc has launched EndNote 2025, a reference management solution aimed at enhancing research efficiency and accuracy through new features including AI support and improved referencing tools [1][2]. Company Overview - Clarivate is recognized as a leading global provider of transformative intelligence, offering data, insights, analytics, and workflow solutions across various sectors including Academia & Government, Intellectual Property, and Life Sciences & Healthcare [4]. New Features of EndNote 2025 - The new version includes AI features that assist researchers in saving time, staying organized, and collaborating effectively during the research and writing process [2]. - Key features introduced in EndNote 2025 include: - A generative AI-powered tool for extracting insights from research papers [4]. - An enhanced machine learning tool for finding suitable journals for paper submissions [4]. - A feature to quickly insert highlighted quotes from PDFs along with citations [4]. - A redesigned summary panel for a more organized view of records [4]. - Tools for accessing citing articles and related records to build a comprehensive reference library [4]. - Improved access to Find Reference Updates and Find Full-Text tools for a streamlined user experience [4]. Future Developments - EndNote plans to introduce additional AI features later in 2025, including the EndNote Research Assistant, which will be available to subscribers [3].

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Clarivate PLC due to lower revenues, with the actual results being crucial for stock price movement [1][2] Earnings Expectations - Clarivate is expected to report quarterly earnings of $0.12 per share, reflecting a year-over-year decrease of 14.3% [3] - Revenues are projected to be $573.32 million, down 7.7% from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has been revised down by 1.39% over the last 30 days, indicating a reassessment by analysts [4] - A positive Earnings ESP of +7.76% suggests analysts have recently become more optimistic about Clarivate's earnings prospects [10][11] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the deviation of actual earnings from consensus estimates, with positive readings being more reliable [6][7] - Clarivate's combination of a positive Earnings ESP and a Zacks Rank of 3 suggests a likelihood of beating the consensus EPS estimate [11] Historical Performance - In the last reported quarter, Clarivate exceeded the expected earnings of $0.20 per share by delivering $0.21, resulting in a surprise of +5% [12] - Over the past four quarters, Clarivate has beaten consensus EPS estimates twice [13] Industry Context - Roper Technologies, another player in the IT Services industry, is expected to post earnings of $4.73 per share, indicating a year-over-year increase of 7.3% [17] - Roper Technologies has also shown a positive Earnings ESP and has consistently beaten consensus EPS estimates in the past four quarters [18]

Core Viewpoint - Clarivate Plc will report its financial results for Q1 2025 on April 29, 2025, before market opens [1] Group 1: Financial Reporting - The financial results will be available on the Clarivate investor website [1] - A conference call and webcast will be held at 9:00 AM Eastern Time on the same day to review the results [2] - Interested parties can access the live audio broadcast through specific phone numbers for U.S. and international participants [3] Group 2: Company Overview - Clarivate is a leading global provider of transformative intelligence, offering data, insights, analytics, and expert services across various sectors [4]

Core Insights - Clarivate Plc has announced a strategic partnership with Iprova to integrate Iprova's solutions with IP management software IPfolio, enhancing the invention process and patent workflow [1][3] - The partnership coincides with the launch of Invention Studio 3, Iprova's advanced software hosted on Microsoft Azure, designed to facilitate the creation of valuable inventions and manage intellectual property [2][3] - Clarivate's acquisition of Rowan Patents, an AI-driven patent drafting software, further strengthens its position as a central hub for IP management, providing comprehensive support throughout the IP lifecycle [4] Company Overview - Clarivate is a global provider of transformative intelligence, offering data, insights, analytics, and workflow solutions across various sectors including Intellectual Property [5] - Iprova specializes in developing AI technologies that enhance human inventiveness, aiming to democratize innovation and streamline the invention process for enterprises [5]

Core Insights - Royal Philips has been recognized as the top-ranked medical technology company in the Top 100 Global Innovators 2025, marking its 12th consecutive year in this assessment, which highlights its strong reputation in healthcare innovation [1][2] Company Performance - In 2024, Philips invested approximately EUR 1.7 billion, which is over 9% of its sales, in research and development to enhance healthcare delivery [2] - Philips generated sales of EUR 18 billion in 2024 and employs around 67,800 people across more than 100 countries [4] Innovation Focus - The company is increasingly concentrating its innovation efforts on data and AI applications in both hospital and home settings, dedicating about half of its R&D workforce to these areas [2] - Philips is a leader in AI-related patent applications in healthcare, emphasizing its commitment to advancing technology in this field [2] Product Innovations - Key AI-powered innovations include: - The Philips CT 5300, which integrates hardware, software, and AI for accessible imaging [6] - SmartSpeed Precise MRI technology, enabling scans to be completed up to three times faster while maintaining high image quality [6] - An AI-enabled cardiovascular ultrasound platform that enhances imaging and productivity [6] - The Azurion image-guided therapy system, which improves minimally invasive treatments for neurovascular patients [6]

Core Insights - The Top 100 organizations generate $4.6 trillion USD in annual revenues, representing 4.4% of the global economy [1] - The Top 100 organizations invest an average of 8.8% of their revenues in innovation, totaling almost $290 billion USD [2] - The report highlights the convergence phenomenon in innovation, with convergent inventions accounting for almost 40% of the most critical protected ideas [3] Geographical Spread - Eleven countries and regions are represented in the Top 100, with Japan contributing the most organizations at 33, despite a decrease of five from the previous year [4] - The United States has 18 organizations, Taiwan has 13, and other notable contributors include Germany and South Korea with eight each, and France with seven [4] Industry Sectors - The representation of industry sectors remains largely unchanged from 2024, with electronics and computing equipment having the most entities, followed by semiconductors, industrial systems, and automotive [5] Key Findings - The Top 100 Global Innovators rankings are based on rigorous research using the Derwent Strength Index, which assesses the influence and rarity of patented ideas [7] - Samsung Electronics retains its position as the 1 ranked global innovator, with six companies achieving Top 100 status for the first time [8] - Six companies re-enter the Top 100, while 16 organizations have maintained their status as all-time recipients [8]

Core Insights - The Latin American pharmaceutical market, valued at $98 billion, is projected to grow by 10.1% between 2021 and 2025, highlighting significant growth potential in the region [2] - Strategic partnerships, local API production, and regulatory modernization are essential for driving sustainable growth in the Latin American pharmaceutical industry [1][2] Industry Overview - The report from Clarivate emphasizes the need for collaboration among industry stakeholders, government agencies, and academia to enhance regional innovation and competitiveness [2] - Increasing global demand for pharmaceuticals positions Latin America as a potential key player by leveraging its manufacturing capabilities and investing in research and development [2] Strategic Partnerships - The importance of greater transparency and collaboration in strategic partnerships is highlighted as a means to foster trust and drive industry evolution [5] - The Brazilian Pharmaceutical Industry Association (ABIQUIFI) plays a crucial role in advancing local API production and strengthening regional supply chains [3] Local API Production - Local API production is seen as a way to reduce reliance on imports and enhance supply chain security, which is vital for economic growth in the region [5][3] - Investment in local production is essential for positioning Latin America competitively in the global pharmaceutical market [3] Regulatory Modernization - The role of artificial intelligence in modernizing regulatory processes is emphasized, aiming to improve efficiency within the pharmaceutical sector [5] - Consistent, long-term policies are necessary to encourage investment and innovation in the industry [5] Commitment to Innovation - Clarivate is committed to supporting the life sciences and healthcare sectors in Latin America by providing reliable, data-driven insights to foster sustainable innovation [3][2] - The company aims to contribute to an ecosystem of sustainable innovation through industry-wide dialogue and collaboration [3]

Financial Data and Key Metrics Changes - Q4 revenue was $663 million, bringing the full year to $2.56 billion, with a notable improvement in organic decline from 1.5% year-to-date to 0.7% in Q4 [29][30] - The fourth quarter net loss was $192 million, an improvement of $671 million compared to the same quarter in 2023, primarily due to lower non-cash asset impairment charges [30] - Adjusted diluted EPS was $0.21 in Q4, bringing the full year to $0.73, which was within the original guidance range [30] - Operating cash flow was $141 million in Q4, totaling $647 million for the full year, driven by lower adjusted EBITDA and higher working capital [31] Business Line Data and Key Metrics Changes - The organic revenue change for 2024 was negative 1.4%, with recurring revenues essentially flat and transactional lines of business declining 6.5% [34][35] - The company is transitioning to a subscription-only strategy for ProQuest ebooks and digital collections, which will make up 90% of the AMG portfolio [14][17] - In life sciences, the launch of DRG Fusion represents a shift from transactional data brokering to subscription-based products [15] Market Data and Key Metrics Changes - The decline in recurring revenue was largely driven by lower IP patent renewal volumes, with a 1% decline in recurring revenue types [32][68] - Foreign exchange impacts lowered revenue by $5 million and profit by $9 million compared to 2023 due to the strength of the US dollar [36][48] Company Strategy and Development Direction - The Value Creation Plan (VCP) focuses on improving execution, accelerating revenue growth, and portfolio rationalization through divestitures [11][25] - The company aims to increase its recurring revenue mix from 80% to 87% and improve profit margins by approximately 150 basis points [17][42] - Strategic alternatives are being evaluated to unlock value, which may include divesting business units or entire segments [9][10] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the future of the academia business, expecting growth in the low single-digit to mid-single-digit range over time [58] - The company anticipates that the strategic disposals will lower revenue by approximately $140 million in 2025 but will implement cost actions to mitigate profit impacts [47] - The expectation for 2025 includes revenue approximating $2.34 billion, with adjusted EBITDA in the range of $940 million to $1 billion [45] Other Important Information - The company has retained financial advisors to assist in evaluating strategic alternatives [9] - The transition to subscription models is expected to enhance predictability and profit margins going forward [45] Q&A Session Summary Question: Government exposure and funding impacts - Management acknowledged a small percentage of income from US government spending and expressed optimism about the academia sector's growth despite potential funding cuts [56][58] Question: Changes in sales force incentive models - The incentive models have been adjusted to align salespeople with a focus on subscription and recurring revenue, moving away from one-time deals [62][64] Question: Improving recurring patent revenue trends - The decline in recurring revenue was attributed to lower patent renewal volumes, with a focus on shifting incentives towards recurring revenue types to build the business [68][69] Question: Trade-offs in the Value Creation Plan - Management believes the transition from transactional to subscription models is necessary for long-term growth, despite short-term revenue impacts [73][78] Question: Investment in product innovation - Management confirmed that maintaining margins is linked to strategic disposals, allowing continued investment in core products to drive organic growth [81][84] Question: Revenue synergy potential and new products - New products are expected to both extend the total addressable market and improve existing offerings, with a focus on transitioning away from one-time sales [99][100] Question: Organic ACV inflection and strategic review criteria - The improvement in annual contract value (ACV) is expected from a combination of product investments and transitioning to subscription models, with strategic reviews focusing on monetizing undervalued assets [105][108]

Q4 2024 Earnings Call February 19, 2025 Safe Harbor Statement and Non-GAAP Financial Measures Safe Harbor Statement and Non-GAAP Financial Measures Non-GAAP Financial Measures This presentation contains financial measures which have not been prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted EPS, Free Cash Flow, and Free Cash Flow Conversion. Non-GAAP financial measures are not recognize ...