Part I. Financial Information [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Clarivate reported a 1.3% revenue decrease and a net loss of $75.0 million for Q1 2024, with total assets and operating cash flow declining [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | March 31, 2024 ($M) | December 31, 2023 ($M) | | :--- | :--- | :--- | | **Total Assets** | **$12,504.7** | **$12,706.8** | | Cash and cash equivalents | $361.8 | $370.7 | | Other intangible assets, net | $8,874.2 | $9,006.6 | | Goodwill | $2,023.4 | $2,023.7 | | **Total Liabilities** | **$6,616.3** | **$6,714.5** | | Long-term debt | $4,637.9 | $4,721.1 | | **Total Shareholders' Equity** | **$5,888.4** | **$5,992.3** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2024 Statement of Operations Summary (Unaudited) | Metric (in millions, except per share) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenues | $621.2 | $629.1 | | Income (loss) from operations | $5.0 | $54.6 | | Net income (loss) | $(75.0) | $43.5 | | Net income (loss) attributable to ordinary shares | $(93.8) | $24.7 | | Basic EPS | $(0.14) | $0.04 | | Diluted EPS | $(0.14) | $0.04 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Q1 2024 Comprehensive Income (Loss) (Unaudited) | Metric (in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income (loss) | $(75.0) | $43.5 | | Other comprehensive income (loss), net of tax | $(17.0) | $88.4 | | **Comprehensive income (loss)** | **$(92.0)** | **$131.9** | [Condensed Consolidated Statements of Changes in Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) - Total shareholders' equity decreased from **$5,992.3 million** at the end of 2023 to **$5,888.4 million** as of March 31, 2024. The decrease was primarily driven by a net loss of **$75.0 million** and other comprehensive loss of **$17.0 million**[23](index=23&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2024 Cash Flow Summary (Unaudited) | Cash Flow Activity (in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $176.2 | $227.5 | | Net cash used for investing activities | $(64.4) | $(60.4) | | Net cash used for financing activities | $(95.2) | $(151.6) | | **Net change in cash** | **$10.3** | **$17.5** | [Notes to the Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) - The company operates in three reportable segments: Academia & Government (A&G), Intellectual Property (IP), and Life Sciences & Healthcare (LS&H)[54](index=54&type=chunk) Revenue by Transaction Type (in millions) | Revenue Type | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Subscription revenues | $403.1 | $393.2 | | Re-occurring revenues | $102.5 | $107.7 | | Transactional and other revenues | $115.6 | $128.2 | | **Total Revenues** | **$621.2** | **$629.1** | - In Q2 2023, the company initiated a sale of a small product group within the IP segment, which closed on April 1, 2024. A loss of **$15.8 million** was recognized in Q1 2024 related to this divestiture[58](index=58&type=chunk) - In January 2024, the company refinanced its credit facilities, extending debt maturities and lowering annual cash interest costs. This included reducing the revolving credit facility to **$700.0 million** and refinancing term loans into a new **$2,150 million** tranche maturing in 2031[70](index=70&type=chunk)[73](index=73&type=chunk) - The company incurred **$9.5 million** in restructuring costs in Q1 2024, primarily related to the Segment Optimization Program initiated in Q2 2023[77](index=77&type=chunk)[102](index=102&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 1.3% revenue decline to lower IP patent renewals and transactional sales, impacting Adjusted EBITDA and free cash flow, despite ACV growth and stable renewal rates [Key Performance Indicators](index=22&type=section&id=Key%20Performance%20Indicators) - Annualized Contract Value (ACV) increased by **1.8%** to **$1,583.3 million** as of March 31, 2024, from **$1,555.2 million** a year prior, primarily due to price increases[147](index=147&type=chunk) - The annual renewal rate for subscription products was stable at **93%** for both the three months ended March 31, 2024, and 2023[148](index=148&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Revenue by Segment (in millions) | Segment | Q1 2024 | Q1 2023 | % Change | Organic % Change | | :--- | :--- | :--- | :--- | :--- | | Academia & Government | $317.7 | $314.7 | 1.0% | 0.6% | | Intellectual Property | $200.9 | $209.1 | (3.9)% | (4.5)% | | Life Sciences & Healthcare | $102.6 | $105.3 | (2.6)% | (2.8)% | | **Total Revenues** | **$621.2** | **$629.1** | **(1.3)%** | **(1.7)%** | - Cost of revenues decreased by **5.2%**, primarily driven by a reduction in share-based compensation expense[154](index=154&type=chunk) - Other operating expense was **$17.6 million**, compared to income of **$32.0 million** in the prior year, driven by a **$15.8 million** loss on divestiture and the absence of a **$49.4 million** gain on a legal settlement that occurred in Q1 2023[130](index=130&type=chunk) - Interest expense decreased by **4.6%** to **$70.2 million**, driven by lower outstanding borrowings from debt prepayments[131](index=131&type=chunk) [Adjusted EBITDA and Adjusted EBITDA margin (non-GAAP measures)](index=27&type=section&id=Adjusted%20EBITDA%20and%20Adjusted%20EBITDA%20margin%20(non-GAAP%20measures)) Adjusted EBITDA Reconciliation (in millions) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income (loss) | $(75.0) | $43.5 | | **Adjusted EBITDA** | **$236.3** | **$252.7** | | **Adjusted EBITDA margin** | **38.0%** | **40.2%** | [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) - As of March 31, 2024, the company had **$361.8 million** in cash and cash equivalents and **$691.5 million** of available borrowing capacity under its revolving credit facility[182](index=182&type=chunk) Free Cash Flow (non-GAAP measure, in millions) | Component | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $176.2 | $227.5 | | Capital expenditures | $(64.4) | $(59.3) | | **Free cash flow** | **$111.8** | **$168.2** | - The decrease in free cash flow was driven by lower operating cash flows and increased capital expenditures for product and content development[163](index=163&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes in its market risks, including foreign currency exchange rate and interest rate risks, from those disclosed in its 2023 annual report on Form 10-K - Market risks as of March 31, 2024, have not materially changed from those discussed in the annual report for the year ended December 31, 2023[168](index=168&type=chunk) [Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that as of March 31, 2024, the company's disclosure controls and procedures were not effective due to a material weakness in internal control over financial reporting. This weakness relates to the design and maintenance of controls for preparing and reviewing footnote disclosures. Remediation efforts began in Q4 2023 and are ongoing - The CEO and CFO concluded that disclosure controls and procedures were not effective as of March 31, 2024, due to a **material weakness**[189](index=189&type=chunk) - A **material weakness** was identified related to ineffective controls over the preparation and review of footnote disclosures, which resulted in immaterial misstatements in prior periods[190](index=190&type=chunk) - The company has designed and implemented new control activities to address the weakness, but they have not yet operated long enough to be considered fully remediated[190](index=190&type=chunk)[191](index=191&type=chunk) Part II. Other Information [Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) The company is vigorously defending against ongoing securities class action lawsuits alleging internal control weaknesses and misleading statements, with potential loss currently inestimable - The company is defending against consolidated securities class action complaints alleging failure to disclose weaknesses in internal controls and making misleading statements related to product quality and organic growth[141](index=141&type=chunk) - Defendants' motions to dismiss the amended complaint are currently pending. The company believes the claims are without merit and is unable to estimate a reasonably possible loss[141](index=141&type=chunk) [Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors associated with the company's business since the filing of its annual report on Form 10-K for the year ended December 31, 2023 - No material changes to risk factors were reported from those in the most recent annual report on Form 10-K[171](index=171&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Clarivate did not repurchase shares in Q1 2024, but withheld 1,185,129 shares for employee tax obligations, with $400 million remaining for repurchases - No shares were purchased as part of the publicly announced repurchase program in Q1 2024[172](index=172&type=chunk)[199](index=199&type=chunk) - Approximately **$400.0 million** remained available for share repurchases under the program as of March 31, 2024[199](index=199&type=chunk) [Other Information](index=29&type=section&id=Item%205.%20Other%20Information) William Graff was promoted to EVP and CIO on April 1, 2024, becoming a Section 16 officer with an existing Rule 10b5-1 trading plan - William Graff was promoted to EVP and CIO on April 1, 2024, becoming a Section 16 officer. He has an existing Rule 10b5-1 trading plan for up to **25,000 ordinary shares**, which terminates by May 31, 2024[199](index=199&type=chunk) [Exhibits](index=30&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including incentive plans, employment agreements, and CEO/CFO certifications - The report includes filed exhibits such as incentive award plan documents, employment agreements, and CEO/CFO certifications pursuant to Sarbanes-Oxley Sections 302 and 906[201](index=201&type=chunk)

Clarivate Reports First Quarter 2024 Results London, UK -- May 8, 2024 Clarivate Plc (NYSE: CLVT) (the "Company" or "Clarivate"), a leading global provider of transformative intelligence, today reported results for the first quarter ended March 31, 2024. • Revenues of $621.2 million decreased 1.3% • Net loss attributable to ordinary shares of $93.8 million; Net loss per diluted share of $0.14 (1) • Net cash provided by operating activities of $176.2 million decreased $51.3 million; Free cash flow of $111.8 ...

Empowering biopharma with unified epidemiology, incidence and prevalence data alongside claims-based population insights, for precise market sizing and patient population analysis LONDON, May 7, 2024 /PRNewswire/ -- Clarivate Plc (NYSE: CLVT), a leading global provider of transformative intelligence, today announced the launch of Epidemiology Intelligence™. The new solution combines rich insights from epidemiology, incidence and prevalence database solutions. It includes U.S. claims-based population insight ...

Enhancements enable pharma, biotech and generics companies to streamline regulatory tracking and optimize life cycle management for small molecules and biologics  LONDON, May 2, 2024 /PRNewswire/ -- Clarivate Plc (NYSE:CLVT), a leading global provider of transformative intelligence, today announced the launch of the newly enhanced Cortellis CMC Intelligence™ solution, featuring a new post-approval variations module. The module for post-approval variations covers regulatory changes across multiple countries, ...

The market expects Clarivate PLC (CLVT) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released ...

Three-part report investigates rapid pipeline growth, partnerships, clinical trials, and patient access challenges in cancer treatment LONDON, April 30, 2024 /PRNewswire/ -- BioWorld™ published by  Clarivate Plc (NYSE:CLVT), a leading global provider of transformative intelligence, explores the growing investment in CAR T therapy development in mainland China in a new series titled "China's CAR T market comes of age." The report examines the dynamic realm of CAR T-cell therapies in China, including the rapi ...

LONDON, April 24, 2024 /PRNewswire/ -- Clarivate Plc (NYSE:CLVT), a leading global provider of transformative intelligence, today announces it has signed the United Nations Sustainable Development Goals (UN SDGs) Publishers Compact. Signatories of the compact pledge to develop sustainable practices and act as champions of the SDGs during the Decade of Action (2020-2030). Liliana Hinderman, Senior Vice President, Chief Risk and Sustainability Officer said: "We have signed the UN SDG Publishers Compact as a c ...

Acquisition supports critical client workflow and reporting needs with proprietary SaaS platform, automating regulatory report authoring and compliance across manufacturing operations, supply chain and quality management LONDON, April 23, 2024 /PRNewswire/ -- Clarivate Plc (NYSE:CLVT) a leading global provider of transformative intelligence, today announced that it has acquired Global QMS, Inc., known as Global Q, a provider of cloud-based solutions that enable life sciences clients to automate regulatory ...

New solution offers comprehensive tracking and analysis of market share and size in Brazil, Colombia, Argentina, Chile, Peru and Ecuador LONDON, April 17, 2024 /PRNewswire/ -- Clarivate Plc (NYSE:CLVT), a leading global provider of transformative intelligence, today released its LatAm market tracking solution, in collaboration with Global Healthcare Intelligence, a leading provider of market intelligence on healthcare infrastructure in frontier markets. The new solution is the next phase of an expanding par ...

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Clarivate PLC (CLVT) , which belongs to the Zacks Internet - Software industry, could be a great candidate to consider.This company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 13.10%.For the last reported quarter, Clariv ...