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 ...

Core Insights - Clarivate PLC reported a revenue of $663 million for the quarter ended December 2024, reflecting a 3% decline year-over-year, with EPS at $0.21 compared to $0.23 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $658.05 million by 0.75%, while the EPS also surpassed the consensus estimate of $0.20 by 5% [1] Revenue Breakdown - Intellectual Property revenues were $209.10 million, falling short of the average estimate of $212.56 million, representing a year-over-year decline of 7.3% [4] - Life Sciences & Healthcare revenues totaled $111 million, below the average estimate of $114.48 million, marking a 6.5% decrease year-over-year [4] - Academia & Government revenues reached $342.90 million, exceeding the estimated $333.63 million, showing a 1% increase compared to the previous year [4] - Transactional and other revenues were reported at $144 million, surpassing the average estimate of $130.13 million, but reflecting a 6.4% decline year-over-year [4] - Re-occurring revenues amounted to $112 million, below the average estimate of $121.63 million, indicating a 6% decrease year-over-year [4] - Subscription revenues were $407 million, compared to the average estimate of $425.73 million, representing a slight decline of 0.9% year-over-year [4] Stock Performance - Clarivate's shares have returned -9.9% over the past month, contrasting with the Zacks S&P 500 composite's +4.7% change [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [3]

Core Viewpoint - Clarivate PLC (CLVT) reported quarterly earnings of $0.21 per share, exceeding the Zacks Consensus Estimate of $0.20 per share, but down from $0.23 per share a year ago, indicating a 5% earnings surprise [1][2] Financial Performance - The company posted revenues of $663 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.75%, but down from $683.7 million year-over-year [2] - Over the last four quarters, Clarivate has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Clarivate shares have declined approximately 3.5% since the beginning of the year, contrasting with the S&P 500's gain of 4% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $603.35 million, and for the current fiscal year, it is $0.72 on revenues of $2.51 billion [7] - The estimate revisions trend for Clarivate is currently favorable, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [6] Industry Context - The Computers - IT Services industry, to which Clarivate belongs, is currently ranked in the top 24% of over 250 Zacks industries, indicating a positive outlook for the sector [8]

Revenue Performance - Total revenues for 2024 were $2,556.7 million, a decrease of 2.7% compared to $2,628.8 million in 2023[224]. - Revenues for 2024 were $2,556.7 million, a decrease of $72.1 million or 2.7% compared to 2023[156]. - Subscription revenues increased slightly to $1,626.8 million in 2024 from $1,618.1 million in 2023, while transactional revenues decreased to $500.1 million from $566.1 million[281]. - The Americas segment revenues decreased by $24.1 million or 1.7%, primarily due to lower contributions from A&G and LS&H[161]. - Revenues denominated in non-U.S. dollar currencies represented approximately 26% of total revenues for 2024, with a 10% change in the Euro and British pound potentially impacting annual revenues by approximately $50 million[203]. Contract Value and Renewal Rates - Organic annualized contract value (ACV) grew by 0.9% in 2024 compared to 2023, primarily driven by price increases[128]. - Total ACV declined by 1.1% in 2024 compared to 2023, mainly due to the divestiture of ScholarOne in November 2024[128]. - The annual renewal rate for both 2024 and 2023 remained stable at 92%[130]. Goodwill and Impairment Charges - Total goodwill impairment charges recorded for 2024 amounted to $451.9 million, primarily due to declines in market conditions and share price[144]. - Goodwill impairment charges were $465.7 million in 2024, down from $847.7 million in 2023, primarily due to declines in share price and market conditions[169]. - Goodwill impairment charges totaled $540.7 million in 2024, down from $979.9 million in 2023, indicating a reduction in asset write-downs[224]. - The company performed goodwill impairment assessments using a discounted cash flow model, with a WACC discount rate of 10.5% for A&G and 9% for LS&H[145]. - A 50 basis point increase in the discount rate could have resulted in an additional impairment charge of approximately $62 million for the LS&H reporting unit[145]. Financial Performance and Income - Net income attributable to ordinary shares was a loss of $668.0 million in 2024, an improvement from a loss of $986.6 million in 2023[156]. - The net income (loss) for 2024 was $(636.7) million, an improvement from $(911.2) million in 2023, reflecting a decrease in losses[184]. - The company reported a net loss of $636.7 million for 2024, compared to a net loss of $911.2 million in 2023, reflecting an improvement in financial performance[224]. - Comprehensive loss for 2024 was $(667.7) million, compared to $(740.6) million in 2023 and $(4,952.8) million in 2022[227]. Cash Flow and Capital Expenditures - Free cash flow for 2024 was $357.5 million, down from $501.7 million in 2023, attributed to lower operating results and increased capital spending[190]. - Net cash provided by operating activities decreased by 13% to $646.6 million in 2024 from $744.2 million in 2023, primarily due to lower operating results and higher working capital requirements[188]. - The company expects capital expenditures of approximately $255 million in 2025, primarily for product and content development[197]. - Cash and cash equivalents at the end of 2024 were $295.2 million, down from $370.7 million at the end of 2023[231]. Operating Expenses - Total operating expenses decreased to $2,832.3 million in 2024, down from $3,363.5 million in 2023[156]. - Selling, general and administrative costs decreased by 1.6% compared to 2023, but as a percentage of revenues, they increased by 0.4%[165]. - Depreciation and amortization expenses increased by 2.6% compared to 2023, driven by increased investment in internally developed software and content assets[167]. Debt and Financing - Long-term debt was reported at $4,518.7 million in 2024, a slight decrease from $4,721.1 million in 2023, indicating efforts to manage debt levels[222]. - The total debt outstanding as of December 31, 2024, was $4,571.1 million, down from $4,770.3 million as of December 31, 2023[311]. - The company refinanced its credit facilities in January 2024, extending debt maturities and lowering annual cash interest costs[192]. - The refinancing provides improved financial flexibility, extending debt maturities and lowering annual cash interest costs[317]. Impairment and Restructuring - The company recorded an intangible assets impairment charge of $75.0 million in December 2024 related to the wind-down of three product groups[169]. - Restructuring and other impairments totaled $540.3 million in 2024, a decrease from $986.2 million in 2023[231]. - The company expects to incur approximately $30 million in additional restructuring costs associated with the Value Creation Plan, primarily during 2025[173]. Foreign Currency and Translation - The net foreign exchange loss for 2024 was $4.2 million, compared to a gain of $38.9 million in 2023[269]. - The company reported a foreign currency translation adjustment loss of $(24.7) million in 2024, compared to a gain of $193.6 million in 2023[227]. Internal Controls and Compliance - The company maintained effective internal control over financial reporting as of December 31, 2024, according to the independent auditor's opinion[210]. - As of December 31, 2024, the company was in compliance with all indenture covenants[314].