Transaction Overview - Clarivate will acquire ProQuest for $5.3 billion [9], including refinancing approximately $1.0 billion of ProQuest's net debt [9] - ProQuest shareholders will receive approximately $1.3 billion of Clarivate shares, representing about 7% combined ownership, and approximately $3.0 billion in cash [9] - The transaction is expected to close in Q3 2021 [9] Financial Highlights (Combined Business) - The combined adjusted revenue for 2020 is approximately $2.6 billion [6, 10] - The combined adjusted EBITDA for 2020 is approximately $1.2 billion [10] with adjusted EBITDA margins of approximately 45% [10] - The combined adjusted EBITDA less CapEx for 2020 is approximately $1.0 billion [10] - Clarivate anticipates double-digit adjusted diluted EPS accretion in 2022 and mid-teens accretion in 2023 [6, 10, 40] Synergies and Cost Savings - The acquisition is expected to generate more than $100 million in run-rate cost savings [9, 10, 36, 44] and $10 million in CapEx synergies [10, 36] - These cost savings are expected to be fully realized within 15-18 months [10, 39, 44] ProQuest Overview - ProQuest has access to >5 million Dissertations [15], 20 million pages of newspapers [15], >6 Billion Digital Pages [15], 285 million Journal Articles [15], Data on 40 million Books [15], > 450,000 eBooks [15] - ProQuest's 2020 revenue was $876 million [22] with a 4% organic growth rate [22] - ProQuest's adjusted EBITDA was $253 million [22] with a 30% margin [22]

Financial Performance & Guidance - In 2020, Clarivate's Adjusted Revenue was $1.3 billion, Adjusted EBITDA was $487 million, Adjusted EBITDA Margin was 38%, and Adjusted Free Cash Flow was $264 million[16] - The company's 2021 guidance projects Adjusted Revenue between $1.8 billion and $1.84 billion, Adjusted EBITDA between $795 million and $825 million, an Adjusted EBITDA Margin between 44% and 45%, and Adjusted Free Cash Flow between $450 million and $500 million[18,68] - The company is targeting a near-term Adjusted EBITDA margin of 47%-48% and a medium-term goal of 50%[174] Growth Strategy & Market Opportunity - Clarivate addresses a total addressable market (TAM) exceeding $100 billion across four customer segments[58,109] - The company estimates a potential revenue opportunity of over $1 billion through account retention, up/cross-sell, and new logos across its customer segments[118] - The Life Sciences and Healthcare client case study shows revenue growth from $1.4 million in 2017 to $4.9 million in 2021, with 81% organic growth and a 38% CAGR[113] - The Academic and Government client case study shows revenue growth from $1.7 million in 2017 to $3.6 million in 2021, with 58% organic growth and a 23% CAGR[115] Operational Efficiency & Cost Savings - Clarivate achieved run-rate savings of $235 million exiting 2021 through operational improvements, facilities rationalization, and digital transformation[61,171] - The Connected Workplace strategy resulted in $27 million in cost savings[80] Customer Focus & Engagement - Inside Sales significantly scaled this year with 24,000 accounts in Centers of Excellence, representing $375 million via continued investment in sales capacity[75] - The company aims to improve ease of doing business, with a goal to increase the score from 77 to 80 in the Customer Delight survey[90]

Core Insights - The Trademark filing trends 2025 report by Clarivate highlights the leading trademark filing jurisdictions and the largest trademark portfolios globally [1][2][3] Group 1: Trademark Filing Trends - Mainland China leads global trademark filings with 6.76 million applications in 2024, despite a three-year decline in activity [2][5] - The U.S. ranks second with 566,938 applications, while India is close behind with over 537,000 applications and a 10% average yearly growth over the last decade [2][5] - France, Mainland China, and Japan have experienced a consistent decline in trademark filing activity for three consecutive years, ending 2024 with the lowest filing volumes since 2017 [5] Group 2: Major Portfolio Owners - Seven brands consistently appear in the top 20 largest trademark portfolio lists, including Procter & Gamble, Nestlé, Apple, L'Oréal, Novartis, LG Electronics, and Unilever, each being among the largest portfolio owners in at least seven of the ten analyzed registers [1][5] - Australia has recovered to its 2021 trademark filing volume, primarily due to a 24% increase in applications by foreign-based brand owners in 2024 [5] Group 3: Strategic Insights - Gordon Samson from Clarivate emphasizes the importance for trademark attorneys to understand macro-trends and the economic interplay between jurisdictions to better manage intellectual property [3] - Integrating insights from the report into trademark and business strategies can help brands mitigate risks and capitalize on emerging opportunities [3]

Core Insights - Clarivate Plc has introduced Pathway Maps in its OFF-X platform, enhancing translational safety intelligence in drug development [1][3] - Over 30% of drug development failures are linked to safety issues, necessitating earlier identification of potential liabilities [1][2] - The integration of visual disease biology with comprehensive safety data allows researchers to make faster, more informed decisions [2][3] Company Overview - Clarivate is a global provider of transformative intelligence, offering data, insights, analytics, and workflow solutions across various sectors including Life Sciences & Healthcare [5] - The company aims to empower researchers with tools that streamline workflows and provide actionable insights to improve patient outcomes [3][5] Product Features - OFF-X supports researchers throughout the drug development lifecycle, from early discovery to post-marketing surveillance [4] - The platform combines proprietary physiological and disease pathway visualizations with curated safety data, enhancing risk evaluation [3][4] - The addition of Pathway Maps allows for disease-specific visualizations of key signaling pathways, facilitating quicker identification of safety liabilities [2][3]

Core Insights - The investment approach focuses on identifying businesses with potential for long-term growth and significant terminal value generation [1] - Emphasis is placed on understanding core business economics, including competitive advantages, unit economics, reinvestment opportunities, and management quality [1] - The analyst aims to provide accessible and analytical insights to help readers identify high-quality, long-term investment opportunities [1] Investment Philosophy - The investment strategy is fundamentally driven, prioritizing sectors with strong secular growth trends [1] - The analyst has a decade of self-education in investing and currently manages personal funds sourced from friends and family [1] - The goal is to share insights and receive feedback from the investment community to enhance understanding of long-term equity value drivers [1]

Financial Data and Key Metrics Changes - Q1 revenue was $594 million, with a net loss of $104 million attributed to higher restructuring expenses related to the value creation plan [22][23] - Adjusted diluted EPS was $0.14, flat compared to the same period last year [23] - Adjusted EBITDA margin increased by more than one percentage point due to improved cost management [24] Business Line Data and Key Metrics Changes - Organic annual contract value (ACV) grew sequentially, with total organic revenue increasing for the first time in over a year, and recurring organic revenue grew nearly 1% [6][8] - In the IP Patent Annuity business, organic recurring revenue grew 5% due to higher volumes [12] - Subscription renewal rates in Life Science and Health improved to 90%, an increase of three percentage points over the prior year [13] Market Data and Key Metrics Changes - The mix of recurring revenue to total revenue is now 83%, an improvement of 200 basis points compared to the prior year [6] - The company noted that less than 3% of total revenue comes directly from the U.S. Federal government, indicating limited exposure to government funding cuts [10] Company Strategy and Development Direction - The company is focused on optimizing revenue, improving sales execution, and accelerating innovation through a subscription-centric model [5][8] - The value creation plan is on track, with a focus on business model optimization, sales execution, and accelerated product innovation [15][18] - The company is evaluating strategic alternatives to unlock value and maximize shareholder returns [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future of research in academia despite potential government funding cuts, indicating minimal impact on business so far [39][40] - The company remains cautious about the macroeconomic environment but believes its products' recurring nature positions it well during uncertain times [34] Other Important Information - Free cash flow was strong at $110 million, with nearly half used for share repurchases [26][28] - The company expects annual contract value to accelerate by approximately 60 basis points to 1.5% at the midpoint of the range [29] Q&A Session Summary Question: Concerns about government funding exposure - Management indicated minimal impact from government actions and noted strong renewal rates in the A and G segment [39][42] Question: Inquiry about private equity interest in the IP segment - Management stated they are evaluating strategic options but had no specific comments on the private equity interest [47] Question: Drivers behind higher renewal volumes in IP - The primary driver for the increase in organic recurring revenues was a return to healthy growth in patent and trademark renewals [50][51] Question: Impact of funding cuts on large universities - Management confirmed that less than half of the A and G segment business is in the U.S., with a significant portion already renewed this year [55] Question: Expectations for transactional revenue growth - Management remains conservative about transactional revenue growth, focusing on improving recurring revenues [58] Question: Changes to the sales incentive model - Management highlighted upgrades in sales leadership and changes to the incentive model to reward subscription revenue growth [66] Question: Cyclical nature of patent renewals - Management acknowledged that while patent renewals can be cyclical, they expect the long-term trend to remain positive [70]

Q1 2025 Earnings Call Apr 29, 2025 Safe Harbor Statement and Non-GAAP Financial Measures Forward-Looking Statements This communication includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions, or projections regarding future events or future results and therefore are, or may be deemed to be, "forward-looking statements" within the meaning of the "safe harbor provisions" of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can g ...

Core Insights - Clarivate PLC (CLVT) reported revenue of $593.7 million for the quarter ended March 2025, reflecting a year-over-year decline of 4.4% [1] - The earnings per share (EPS) for the same period was $0.14, unchanged from the previous year, with a surprise of +16.67% compared to the consensus estimate of $0.12 [1] - The reported revenue exceeded the Zacks Consensus Estimate of $573.32 million, resulting in a surprise of +3.56% [1] Revenue Breakdown - Intellectual Property revenues were $192.70 million, surpassing the average estimate of $187.39 million, but showing a year-over-year decline of 4.1% [4] - Life Sciences & Healthcare revenues reached $98.30 million, exceeding the average estimate of $90.13 million, with a year-over-year decline of 4.2% [4] - Academia & Government revenues totaled $302.70 million, above the average estimate of $294.34 million, reflecting a year-over-year decline of 4.7% [4] - Transactional and other revenues were reported at $99.20 million, significantly higher than the estimated $63 million, but down 14.2% year-over-year [4] - Re-occurring revenues amounted to $105.90 million, slightly below the average estimate of $107.83 million, showing a year-over-year increase of 3.3% [4] - Subscription revenues were $388.60 million, below the average estimate of $409.15 million, indicating a year-over-year decline of 3.6% [4] Stock Performance - Clarivate's shares have returned -8.7% over the past month, compared to a -0.8% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Q1 revenue was $594 million, with a net loss of $104 million attributed to higher restructuring expenses related to the value creation plan [23][24] - Adjusted diluted EPS was $0.14, flat compared to the same period last year [24] - Adjusted EBITDA margin increased by more than one percentage point due to internal cost efficiencies, with free cash flow of $110 million [9][28] Business Line Data and Key Metrics Changes - Organic annual contract value (ACV) grew sequentially, driven by improved subscription renewals and new business wins [7][10] - Organic recurring revenue grew nearly 1%, with renewal rates across the subscription base improving by one percentage point [8][9] - In the IP Patent Annuity business, organic recurring revenue grew 5% due to higher volumes, with a double-digit increase in search volume for the Derwent innovation platform [13][19] Market Data and Key Metrics Changes - The mix of recurring revenue to total revenue is now 83%, an improvement of 200 basis points compared to last year [8][18] - Subscription renewal rates in the Life Science and Health segment improved to 90%, an increase of three percentage points over the prior year [14] Company Strategy and Development Direction - The company is focused on optimizing revenue, improving sales execution, and accelerating innovation through a subscription-centric model [6][10] - The value creation plan is on track despite a volatile macro environment, with a focus on business model optimization and increasing the subscription revenue mix [10][17] - The company is evaluating strategic alternatives to unlock value and maximize shareholder returns [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future of research in academia despite potential government funding cuts, indicating minimal impact on business so far [11][40] - The company remains cautious against a challenging macroeconomic environment but believes its products' recurring nature positions it well [35] Other Important Information - The company has engaged with advisors to analyze options for maximizing shareholder value and will provide updates when appropriate [20] - The company launched new subscription platforms and AI-powered features, enhancing competitive advantage and customer engagement [19][20] Q&A Session Summary Question: Concerns about government funding exposure - Management indicated minimal impact from government actions in Q1 and noted that half of government contracts have already been renewed [40][41] Question: Inquiry about private equity interest in the IP segment - Management stated they are evaluating strategic options but had no specific comments on the private equity interest [48][49] Question: Drivers behind higher renewal volumes in IP - The primary driver for the increase in organic recurring revenues was a return to healthy growth in patent and trademark renewals [52][55] Question: Impact of U.S. government funding on revenue - Less than half of the A and G segment business is in the U.S., with a meaningful portion already renewed this year, indicating confidence in guidance range [59][60] Question: Expectations for transactional revenue growth - Management expects transactional revenue to remain soft in the current macro environment, focusing on improving recurring revenues [62][63] Question: Changes to the sales incentive model - Management highlighted upgrades in sales leadership and changes to the customer success organization, which have contributed to improved renewal rates [67][68] Question: Cyclical nature of patent renewals - Management acknowledged that while patent renewals can fluctuate, the long-term trend is expected to head back in a healthy direction [72][73]

Clarivate PLC (CLVT) came out with quarterly earnings of $0.14 per share, beating the Zacks Consensus Estimate of $0.12 per share. This compares to earnings of $0.14 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 16.67%. A quarter ago, it was expected that this company would post earnings of $0.20 per share when it actually produced earnings of $0.21, delivering a surprise of 5%.Over the last four quarters, the company has su ...