Core Insights - CLEAR has partnered with Greenhouse to enhance hiring processes through the integration of CLEAR1, an identity verification platform, aimed at improving trust and reducing manual screening in recruitment [1][4][8] Industry Context - The recruitment landscape is increasingly challenged by a surge in candidate applications driven by remote work and economic uncertainty, alongside a rise in fraudulent applications facilitated by AI technologies [2][3] - Gartner forecasts that by 2028, up to 25% of job applicants may be fraudulent, utilizing advanced AI tools to circumvent traditional hiring controls [2] Company Benefits - The integration of CLEAR1 into Greenhouse's Real Talent solution will allow for seamless verification of candidates, enhancing the efficiency of the hiring process [3][8] - Organizations using this integrated solution can expect to save time and reduce the risk of hiring fraudulent candidates, thereby improving the overall quality of hires [8][9] Candidate Experience - Candidates will benefit from a streamlined verification process, which involves simply taking a selfie to confirm their identity, making the application experience faster and more secure [3][8] - The integration will also allow candidates to verify their identity quickly if they are already CLEAR users, minimizing friction in the hiring process [8] Launch Timeline - The Greenhouse Real Talent and CLEAR1 integration is set to launch for select customers in Q3 2025, with further details to be announced [6]

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]

Financial Data and Key Metrics Changes - The company ended the quarter with 31.2 million total members, up 42.3% year over year, indicating strong growth in the ClearONE platform [16] - Total bookings reached $207 million, representing a growth of 14.8% year over year, while free cash flow was $91 million, reflecting a 17.6% increase [17][20] - Active Clear plus members grew to 7.4 million, marking a 9.1% increase [17] - Gross dollar retention was 87.1%, down 140 basis points sequentially due to significant price increases implemented in 2023 and 2024 [17][18] Business Line Data and Key Metrics Changes - The travel business continued to show strong growth, with Clear active in 59 Clear plus airports and four domestic Clear mobile airports, reaching 74% of U.S. airline passengers [5][6] - The TSA PreCheck enrollment program is expanding, with 165 locations now operational, contributing to increased market share [18][19] Market Data and Key Metrics Changes - U.S. air travel demand increased, with TSA checkpoint volumes growing almost 1% [6] - The company is actively addressing the challenges faced by air travelers, with 64% citing long lines at security as a major pain point [7] Company Strategy and Development Direction - The company is focused on enhancing member experience through new products like NV Pods, ePassport, and eGates, which aim to create a seamless travel experience [8][10][11] - Clear is positioning itself to capitalize on major global events like the World Cup in 2026 and the Olympics in 2028, offering automated lanes at no cost to the government [12] - The company is also expanding its ClearONE platform to enhance security and trust across various sectors, including healthcare and finance [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's resilience despite macroeconomic uncertainties, noting that gross adds and conversion rates remain healthy [25][30] - The company is optimistic about future growth opportunities, particularly in expanding the Clear network and enhancing the B2B business [64] Other Important Information - The company ended the quarter with $533 million in cash and marketable securities, having returned $168 million to shareholders through share repurchases and dividends [21][39] - The company is reaffirming its free cash flow guidance of at least $310 million for the full year 2025 [21] Q&A Session Summary Question: What macro factors are being considered for bookings guidance? - Management noted that gross adds and conversion rates remain healthy, and they are not seeing softness in the business due to broader macro sentiment [25][30] Question: What is happening with family member retention after price increases? - Management indicated that overall member retention trends remain consistent, with net adds improving compared to the previous year [31][32] Question: How will the company express flexibility around long-term investments in a downturn? - Management emphasized the importance of automation and operating leverage, which are expected to drive efficiencies and support growth [34][38] Question: How does the company view pricing as a lever moving forward? - Management stated that pricing remains a key lever to drive bookings and revenue, with opportunities to refine the strategy using a data-driven approach [41][42] Question: What opportunities exist for growth outside the U.S.? - Management highlighted the potential for international travelers to utilize the ePassport product, expanding the total addressable market significantly [46][48] Question: What progress is being made in the B2B business? - Management discussed growth in healthcare partnerships and the importance of platform integration for both workforce and patient solutions [54][56]

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]

Core Insights - Clear Secure, Inc. has released its first quarter financial results for 2025 in a shareholder letter available on its Investor Relations website [1] - The company will host a conference call to discuss these results, providing access for both U.S. and international participants [2] - CLEAR's mission focuses on enhancing security while providing seamless experiences for its members, with over 31 million members and a growing global partner network [3] Financial Results - The financial results for the first quarter of 2025 are detailed in the shareholder letter, which is accessible online [1] - A conference call is scheduled to elaborate on these results, indicating the company's commitment to transparency with investors [2] Company Overview - CLEAR aims to transform everyday experiences by connecting members to secure and frictionless services, applicable in various settings such as travel and events [3] - The company emphasizes privacy, ensuring that members retain control over their personal information and that their data is not sold [3]

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].