IP solution maximizes operational efficiency for leading automation company LONDON, May 9, 2024 /PRNewswire/ -- Clarivate Plc (NYSE: CLVT), a leading global provider of transformative intelligence, announced today that OMRON has selected IPfolio™, an intellectual property management software from Clarivate to transform their IP operations. This solution will enable OMRON, a leading automation company to make smarter decisions and plan strategically using IP data and analytical insights. With IPfolio's help, ...

Clarivate Plc (NYSE:CLVT) Q1 2024 Earnings Conference Call May 8, 2024 9:00 AM ET Company Participants Mark Donohue - Vice President, Investor Relations-ICR Jonathan Gear - Chief Executive Officer Jonathan Collins - Chief Financial Officer Conference Call Participants Toni Kaplan - Morgan Stanley Wahid Amin - Bank of America George Tong - Goldman Sachs Surinder Thind - Jefferies Andrew Nicholas - William Blair Owen Lau - Oppenheimer Shlomo Rosenbaum - Stifel Ashish Sabadra - RBC Capital Markets Operator Goo ...

This presentation contains financial measures which have not been calculated in accordance with generally accepted accounting principles in the United States of America ("US GAAP"), including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, Adjusted diluted EPS and Free cash flow because they are a basis upon which our management assesses our performance, and we believe they reflect the underlining trends and indicators of our business. 22 Adjusted EBITDA – interest expense, or the cash require ...

Clarivate PLC (CLVT) reported $621.2 million in revenue for the quarter ended March 2024, representing a year-over-year decline of 1.3%. EPS of $0.14 for the same period compares to $0.18 a year ago.The reported revenue represents a surprise of +1.08% over the Zacks Consensus Estimate of $614.57 million. With the consensus EPS estimate being $0.14, the company has not delivered EPS surprise.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compa ...

Clarivate PLC (CLVT) came out with quarterly earnings of $0.14 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.18 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this company would post earnings of $0.21 per share when it actually produced earnings of $0.23, delivering a surprise of 9.52%.Over the last four quarters, the company has surpassed consensus EPS estimates three times.Clarivate, which belongs to the ...

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 ...