NEW YORK, June 12, 2025 (GLOBE NEWSWIRE) -- CLEAR (NYSE: YOU), the secure identity company, today announced a new partnership with Greenhouse, trusted HR tech leader and hiring platform, to implement CLEAR1, the identity platform for businesses, to improve hiring trust and reduce manual screening. This innovative partnership will elevate the Greenhouse Real Talent solution by verifying the candidate behind the application. Together, CLEAR1 and Greenhouse will deliver an unprecedented layer of trust with a r ...

Core Insights - T-Mobile has implemented CLEAR1, a biometric multi-factor authentication (MFA) solution, to enhance identity verification processes for its employees and team members [1][2][3] - The CLEAR1 platform allows for seamless identity verification through simple actions like taking a selfie, moving away from traditional methods such as passwords and one-time PINs [2][3] - The deployment of CLEAR1 is part of T-Mobile's strategy to strengthen cybersecurity by focusing on verifying the individual rather than just their credentials [4] Company and Industry Summary - CLEAR1 provides organizations with a robust identity verification solution that utilizes biometric data, documents, and device corroboration to enhance security while minimizing friction for users [5] - The increasing sophistication of cyber threats necessitates the adoption of identity-first strategies, as highlighted by the significant financial losses from scams involving impersonation of IT workers [4] - CLEAR's mission is to enhance security and create frictionless experiences, with over 31 million members and a growing network of partners, indicating a strong market presence [5]

Core Viewpoint - Clear Secure, Inc. has experienced a 10% decline in share price year to date, underperforming both the broader Computer and Technology sector and the Internet - Software industry [1] Financial Performance - The underperformance is linked to sluggish first-quarter 2025 results, with a sequential decline of 140 basis points in gross dollar retention due to earlier pricing increases [2] - Operating costs have risen, with salaries and benefits increasing by 150 basis points year over year, impacting margins [2] - For Q2 2025, the Zacks Consensus Estimate for earnings is 23 cents per share, reflecting a 20.7% decrease over the past 30 days and a year-over-year decline of 32.35% [11] - The revenue estimate for Q2 2025 is $214.72 million, indicating an 8.65% increase from the previous year [11] - The consensus for 2025 earnings is 94 cents per share, down 22.3% over the past 30 days, with a year-over-year decrease of 47.78% [12] - The revenue estimate for 2025 is $878.42 million, showing a year-over-year growth of 14.01% [12] Strategic Positioning - Despite near-term pressures, Clear Secure is strategically positioned with strong growth in its travel segment, focusing on enhancing member experience and expanding its network [3] - The company has expanded its travel footprint to 165 locations, increasing accessibility for members [5] - CLEAR Plus memberships grew by 9.1%, and cumulative enrollments reached 31.2 million, a 42.3% annual increase [5] - New product launches, including EnVe, ePassport, and eGates, aim to simplify enrollment and expand platform functionality [6] Partnerships and Innovations - The partnership with Docusign enhances document integrity through biometric identity verification, extending Clear Secure's identity platform into broader markets [7] - The company is focused on product innovation, including identity solutions like CLEAR1 and ePassport, to broaden its reach [4] Market Dynamics - The implementation of the REAL ID Act, effective May 7, 2025, is expected to increase demand for identity verification, although consumer adoption may vary [8] - Unpredictable consumer responses to REAL ID requirements could affect enrollment timing and revenue growth [9]

Financial Data and Key Metrics Changes - The company ended Q1 2025 with 31.2 million total members, a 42.3% year-over-year increase [16] - Total bookings reached $207 million, reflecting a 14.8% growth [17] - Free cash flow was $91 million, representing a 17.6% increase year-over-year [21] - Operating income was $37 million, with a 17.7% operating margin [20] - Adjusted EBITDA was $52 million, corresponding to a 24.7% adjusted EBITDA margin [20] Business Line Data and Key Metrics Changes - Active Clear Plus members grew to 7.4 million, a 9.1% increase [17] - Gross dollar retention was 87.1%, down 140 basis points sequentially due to previous price increases [18] - The company operates approximately 15% of total TSA PreCheck enrollment locations, with 165 locations currently active [19] Market Data and Key Metrics Changes - U.S. air travel demand increased, with TSA checkpoint volumes growing almost 1% [6] - Clear is active in 59 Clear Plus airports and four domestic Clear mobile airports, reaching 74% of U.S. airline passengers [5] Company Strategy and Development Direction - Clear is focused on enhancing member experience and expanding its network and product offerings [4] - The introduction of new products like ePassport and NV Pods aims to improve enrollment and verification processes [10][9] - The company is preparing for major global events like the World Cup in 2026 and the Olympics in 2028, positioning itself for increased visibility and demand [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's resilience despite macroeconomic uncertainties, noting healthy gross adds and conversion rates [27] - The company is optimistic about its growth trajectory, particularly in the TSA PreCheck segment and overall member acquisition [19][23] - Management highlighted the importance of public-private partnerships in navigating regulatory challenges and enhancing member experience [23] Other Important Information - The company ended the quarter with $533 million in cash and marketable securities after returning $168 million to shareholders [22] - The federal REAL ID enforcement date has heightened the importance of Clear's services, with a focus on ensuring members are REAL ID ready [13] Q&A Session Summary Question: Can you discuss the macro factors considered for Q2 bookings guidance? - Management noted that gross adds and conversion rates remain healthy, with no observed softness in business due to macro sentiment [27][30] Question: What is happening with family member retention post-price increases? - Management indicated that overall member retention trends remain consistent, with improvements in net adds compared to the previous year [32][33] Question: How will the company express flexibility around long-term investments in a downturn? - Management emphasized the focus on automation and operating leverage as key opportunities for growth, while maintaining flexibility in capital allocation [35][39] Question: What are the dynamics of the partnership with American Express? - Management highlighted the importance of credit card partnerships in member acquisition and the alignment of interests between Clear and its partners [53][55] Question: Can you elaborate on the progress in the B2B business, particularly in Healthcare and Financial sectors? - Management noted significant partnerships in healthcare and the importance of platform integration for both workforce and patient solutions [58][60]

Clear Secure (YOU) Q1 2025 Earnings Call May 08, 2025 08:00 AM ET Speaker0 Good morning, and welcome to Clear's Fiscal First Quarter twenty twenty five Conference Call. We have with us today Karen Seidman Becker, Co Founder, Chair and Chief Executive Officer Michael Barkin, President and Jen Hsu, Chief Financial Officer. As a reminder, before we begin, today's discussion contains forward looking statements about the company's future business and financial performance. These are based on management's current ...

Financial Performance - Revenue for the three months ended March 31, 2025, was $211.4 million, an 18% increase from $179.0 million in 2024 [175]. - Net income for the three months ended March 31, 2025, was $38.6 million, a 20% increase from $32.1 million in 2024 [175]. - Adjusted EBITDA for the three months ended March 31, 2025, was $52.2 million, compared to $40.9 million in 2024 [161]. - Free Cash Flow for the three months ended March 31, 2025, was $91.3 million, up from $77.6 million in 2024 [162]. - Operating income increased to $37.4 million for the three months ended March 31, 2025, a 58% increase from $23.7 million in 2024 [175]. Membership Growth - Total Bookings increased by $26.6 million, or 15%, for the three months ended March 31, 2025, compared to the same period in 2024, primarily driven by growth in Active CLEAR+ Members and price increases [146]. - Total Cumulative Enrollments reached 31,215 thousand as of March 31, 2025, representing a 42% increase from 21,941 thousand in the same period of 2024, driven by CLEAR1 and CLEAR+ Member enrollments [148]. - Active CLEAR+ Members increased to 7,415 thousand as of March 31, 2025, representing a 9% growth from 6,798 thousand in 2024 [152]. Usage Metrics - Total Cumulative Platform Uses was 248,895 thousand as of March 31, 2025, a 29% increase from 192,610 thousand in the same period of 2024, driven by CLEAR+ verifications and increased contributions from CLEAR1 uses [150]. - Annual CLEAR+ Gross Dollar Retention decreased to 87.1% as of March 31, 2025, down from 89.8% in 2024, a decline of 270 basis points [154]. - Annual CLEAR+ Member Usage declined to 7.1x as of March 31, 2025, a 9% decrease from 7.8x in 2024 [156]. Expenses and Costs - Cost of revenue share fee rose to $29.6 million for the three months ended March 31, 2025, a 21% increase from $24.4 million in 2024 [177]. - Cost of direct salaries and benefits increased by $10.6 million, or 26%, to $50.7 million for the three months ended March 31, 2025, compared to $40.3 million in the same period of 2024 [178]. - Research and development expenses decreased by $1.1 million, or 5%, to $19.0 million for the three months ended March 31, 2025, down from $20.1 million in 2024 [179]. - Sales and marketing expenses increased by $1.8 million, or 15%, to $13.4 million for the three months ended March 31, 2025, compared to $11.6 million in 2024 [180]. - General and administrative expenses rose by $1.8 million, or 3%, to $54.7 million for the three months ended March 31, 2025, from $52.9 million in 2024 [181]. Cash Flow and Investments - Net cash provided by operating activities increased by $18.0 million to $98.3 million for the three months ended March 31, 2025, compared to $80.3 million in 2024 [198]. - Net cash provided by investing activities increased by $67.1 million to $93.3 million for the three months ended March 31, 2025, from $26.2 million in 2024 [199]. - Net cash used in financing activities increased by $70.0 million to $(171.3) million for the three months ended March 31, 2025, compared to $(101.3) million in 2024 [200]. - As of March 31, 2025, the company had cash and cash equivalents of $87.6 million and marketable securities of $442.3 million [185]. - The company reported marketable securities amounting to $442.3 million, primarily invested in money market funds, commercial paper, corporate notes and bonds, and government securities [209]. Strategic Initiatives - The company relies on multiple channels to attract new CLEAR+ Members, including in-airport engagement and digital channels such as paid search and partnerships [128]. - The company has renewed its partnership with American Express for the second of two one-year renewal terms in March 2025, which helps efficiently scale membership in CLEAR+ [128]. - The company aims to innovate its product and platform to improve Member experience and introduce new use cases, which is essential for maintaining partnerships and generating new revenue streams [133]. - The timing of new partner, product, and location launches can significantly impact financial performance, with potential delays affecting results [134]. - The company plans to continue expanding TSA PreCheck® Enrollment locations, subject to TSA approval, to drive additional revenue [164]. Risks and Other Considerations - The company expects to incur increased compensation expenses related to equity awards granted under the 2021 Omnibus Incentive Plan [141]. - The business model is characterized by efficient Member acquisition and high retention rates, but increasing market penetration may raise acquisition costs and affect retention [137]. - Interest income, net decreased by $3.8 million, or 38%, to $6.2 million for the three months ended March 31, 2025, compared to $9.9 million in 2024 [182]. - Income tax expense increased by $3.5 million, or 176%, to $(5.4) million for the three months ended March 31, 2025, from $(2.0) million in 2024 [184]. - A hypothetical 100 basis points increase or decrease in overall interest rates would result in an unrealized loss or gain of approximately $2.9 million in the fair value of the company's "available for sale" investments [209]. - The company had no outstanding borrowings under its revolving credit facility as of March 31, 2025 [208]. - Foreign currency transaction and translation risk was insignificant for the three months ended March 31, 2025, as the majority of business is transacted in U.S. dollars [210].

Clear Secure (YOU) came out with quarterly earnings of $0.32 per share, beating the Zacks Consensus Estimate of $0.30 per share. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.67%. A quarter ago, it was expected that this airport security company would post earnings of $0.28 per share when it actually produced earnings of $0.90, delivering a surprise of 221.43%.Over the last four quarters, ...

Financial Performance - Q1 2025 revenue reached $211.4 million, an increase of 18.1% year-over-year, while total bookings were $207.2 million, up 14.8%[7] - Operating income was $37.4 million, representing a 17.7% operating margin, which is an increase of 450 basis points year-over-year[37] - Net income for Q1 2025 was $38.6 million, with earnings per share of $0.26[37] - Revenue for Q1 2025 was $211,368,000, representing a 18% increase from $179,049,000 in Q1 2024[46] - Operating income increased to $37,404,000 in Q1 2025, up from $23,689,000 in Q1 2024[46] - Net income attributable to Clear Secure, Inc. was $25,405,000, compared to $18,806,000 in the same period last year, marking a 35% increase[46] - Adjusted EBITDA for Q1 2025 was $52,178,000, up from $40,890,000 in Q1 2024, reflecting a 27.6% growth[68] - The company reported a Net Income Margin of 18% and an Adjusted EBITDA Margin of 25% for Q1 2025[68] Cash Flow and Shareholder Returns - Free cash flow for the quarter was $91.3 million, with net cash provided by operating activities totaling $98.3 million[37] - The company returned $168.3 million to shareholders, including $101.7 million in share repurchases and $66.6 million in dividends[38] - Free Cash Flow for Q1 2025 was $91,263,000, compared to $77,573,000 in Q1 2024, indicating a 17.6% increase[69] Membership and Enrollment Growth - Total cumulative enrollments reached 31.2 million, reflecting a growth of 42.3% year-over-year, driven by CLEAR1 and CLEAR+ enrollments[28] - Active CLEAR+ members grew to 7.4 million, a 9.1% increase year-over-year, supported by strong member acquisition[29] - Active CLEAR+ Members as of the end of the period are a key metric for growth, with management emphasizing its importance for future revenue[52] - Total Cumulative Enrollments and Total Cumulative Platform Uses are critical indicators of engagement and growth potential[50][51] Future Guidance and Business Health - The second quarter 2025 revenue guidance is projected to be between $214 million and $216 million, with total bookings expected between $215 million and $220 million[40] - Management views Total Bookings as a leading indicator of business health, reflecting sales to new and renewing CLEAR+ subscribers[49] Cost Management and Retention - Research and development expenses were $19.0 million, accounting for a decrease of 220 basis points as a percentage of revenue year-over-year[33] - Annual CLEAR+ gross dollar retention was 87.1%, down 140 basis points sequentially due to price increases implemented in 2023 and 2024[30] Product Development and Market Expansion - The company continues to focus on enhancing its CLEAR+ product and expanding its market presence[56]

NEW YORK, May 08, 2025 (GLOBE NEWSWIRE) -- Clear Secure, Inc. (NYSE: YOU), the secure identity platform, has posted a shareholder letter containing its 2025 first quarter financial results on its Investor Relations website at https://ir.clearme.com. CLEAR will host a conference call to discuss those results at 8:00 AM (ET) today. Investors and analysts can access the live teleconference call by dialing toll-free 888-645-4404 for U.S. participants and +1-862-298-0702 for international participants. Listeners ...

Core Viewpoint - Clear Secure (YOU) is expected to report first-quarter 2025 results on May 8, with anticipated revenues between $207 million and $209 million, reflecting a 16.26% increase year-over-year [1]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for revenues is $208.17 million, indicating a significant rise from the previous year's figures [1]. - The earnings estimate for the first quarter is set at 30 cents per share, showing a year-over-year growth of 7.14% [1]. Recent Performance - Clear Secure has beaten the Zacks Consensus Estimate for earnings in three of the last four quarters, with an average earnings surprise of 76.96% [2]. Key Factors Influencing Q1 Results - The expansion of TSA PreCheck enrollment services to 91 locations by the end of 2024 is expected to enhance member growth and revenue momentum [3]. - The launch of Clear1 and partnerships with companies like Okta are anticipated to positively impact top-line performance, particularly in the enterprise market [4]. - The implementation of NextGen Identity and EnVe pods is expected to improve efficiency and member experience, allowing faster processing for 91% of users [5]. Challenges Faced - A seasonal slowdown in travel during January may have hindered member growth and revenue expansion [5]. - Clear Secure is also facing challenges in improving gross dollar retention as it phases out deep-discount programs that previously affected unit economics [6]. Earnings Expectations - Clear Secure has an Earnings ESP of +7.86% and a Zacks Rank of 3, indicating a favorable outlook for an earnings beat [7]. Other Companies to Watch - Affirm (AFRM) and Baidu (BIDU) are also highlighted as companies with strong earnings potential, with respective Earnings ESPs of +63.27% and +8.67% [8][10].