Core Viewpoint - Clear Secure (YOU) shares have increased by 3% over the past four weeks, closing at $24.17, with a mean price target of $30.63 indicating a potential upside of 26.7% [1] Price Targets - The average price target consists of eight estimates ranging from a low of $23 to a high of $45, with a standard deviation of $8.43, indicating variability among analysts [2] - The lowest estimate suggests a decline of 4.8%, while the highest indicates an upside of 86.2% [2] - A low standard deviation suggests a higher agreement among analysts regarding price movement [7] Analyst Sentiment - Analysts are optimistic about YOU's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which historically correlates with stock price movements [4][9] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 6.4%, with three estimates moving higher and no negative revisions [10] Zacks Rank - YOU holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside [11] Caution on Price Targets - Solely relying on consensus price targets for investment decisions may not be wise, as empirical research shows they often mislead investors [5][8] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [6]

Financial Data and Key Metrics Changes - In Q4 2024, revenue grew by 21% and total bookings increased by 17%, driven by member growth, pricing, strong member retention, and improvements in win-back activity [22][24] - The company achieved a 24% full-year adjusted EBITDA margin, up over 1,000 basis points year-over-year [23] - Free cash flow for 2024 was $284 million, a 42% increase year-over-year, with a share count reduction of 9% to 137.7 million shares [31][32] Business Line Data and Key Metrics Changes - TSA PreCheck and CLEAR1 contributed several points to the growth rate, with TSA PreCheck scaling to 91 locations [22][12] - Active CLEAR Plus members grew by 164,000 in the quarter, with total cumulative enrollments ending the year at 30 million, reflecting continued traction [24][22] - The rollout of EnVe's has improved lane experience scores and throughput significantly, with lanes now serving members with 30% fewer pods [8][6] Market Data and Key Metrics Changes - CLEAR Plus currently covers around 73% of airport volume with 166 lanes nationwide [6] - The company is expanding its out-of-airport enrollment network, with locations like the Mall of America and Westfield showing positive cash flow within weeks [84] Company Strategy and Development Direction - The company aims to enhance its secure identity platform and strengthen public-private partnerships, particularly in the travel sector [10][11] - CLEAR is focused on deploying end-to-end automated lanes at no cost to the government, emphasizing the importance of technology in modernizing airport infrastructure [10][66] - The company plans to increase pricing on historically free tiers and focus on gross dollar retention to enhance unit economics [28][86] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the travel industry's recovery, expecting 4 million people per day to pass through U.S. airports by 2030 [81] - The company anticipates strong top-line growth in 2025, with free cash flow guidance of at least $310 million [34][18] - Management highlighted the importance of automation and technology in improving customer experience and operational efficiency [66][62] Other Important Information - The company recognized a one-time noncash net gain of $75 million in the quarter, related to a tax receivable agreement [30] - Management announced leadership changes, with Ken Cornick stepping down from operational roles and Michael Barkin appointed as President [19][20] Q&A Session Summary Question: Can you review the guidance for Q1 bookings? - Management indicated that Q1 bookings guidance implies around 13% year-over-year growth, with January being seasonally slow for travel [41][42] Question: What is the mix in net adds for the quarter? - The trial count as a percentage of total Active CLEAR Plus members was down slightly year-over-year, impacting Q1 [48] Question: How is the relationship with Amex affecting bookings and EBITDA? - Management noted that while the partnership with Amex is valuable for brand awareness, the gap between wholesale and retail pricing is significant, impacting bookings and EBITDA [50][51] Question: What are the trends in air travel and independent locations? - Management remains bullish on travel trends, expecting continued growth and positive cash flow from independent locations [81][84] Question: What are the pricing opportunities for the upcoming fiscal year? - Management sees opportunities to charge for previously free tiers and is focused on gross dollar retention [86]

Financial Performance - Total revenue for 2024 reached $770,488,000, a 25.6% increase from $613,579,000 in 2023 [422]. - Operating income for 2024 was $123,191,000, compared to $20,138,000 in 2023, marking a significant improvement [422]. - Net income attributable to Clear Secure, Inc. for 2024 was $169,676,000, up from $28,108,000 in 2023, reflecting a substantial growth [422]. - Comprehensive income attributable to Clear Secure, Inc. for 2024 was $167,969,000, compared to $31,687,000 in 2023 [425]. - The net income for the year ending December 31, 2024, was $225,274,000, compared to $49,888,000 for the previous year, indicating a significant growth [433]. - The company reported a net income per share of $1.81 for both Class A and B Common Stock in 2024, up from $0.31 in 2023 [422]. - Operating cash flow for 2024 was $295,677, up from $225,033 in 2023, indicating a 31.2% increase year-over-year [439]. Assets and Liabilities - Total assets increased to $1,194,932,000 in 2024 from $1,045,009,000 in 2023, representing a growth of 14.3% [420]. - Total liabilities rose to $956,992,000 in 2024, compared to $675,785,000 in 2023, indicating a 41.6% increase [420]. - The company had cash and cash equivalents of $66.9 million as of December 31, 2024 [398]. - The company recorded marketable securities totaling $543 million as of December 31, 2024, primarily invested in government securities and money market funds [400]. - The total paid-in capital as of December 31, 2024, was $114,231,000, showing a decrease from $394,390,000 at the beginning of the year [433]. - The company reported a depreciation expense of $21,749 for 2024, up from $18,215 in 2023, which is a 13.9% increase [439]. Tax and Financial Agreements - The company expects to pay approximately $462.7 million under the Tax Receivable Agreement over 15 years, assuming all future redemptions occur on December 31, 2024 [221]. - The Tax Receivable Agreement requires the company to pay 85% of cash savings from tax benefits realized, which could significantly impact liquidity [219]. - Payments under the Tax Receivable Agreement could exceed actual cash savings in income tax, leading to potential financial strain [224]. - The Tax Receivable Agreement requires payments based on tax reporting positions, which may be challenged by the IRS or other tax authorities, potentially affecting future cash payments [222]. Dividends and Stock Repurchase - The company has approved a quarterly dividend policy but may face limitations due to its holding company structure and contractual restrictions [211]. - The ability to pay dividends may be restricted by covenants in debt agreements and other factors [212]. - As of December 31, 2024, $52.7 million remained available under the stock repurchase program, which allows for the purchase of up to $600 million of Class A Common Stock [229]. - The company distributed $28,828,000 in special dividends during the year [433]. - The company repurchased Class A Common Stock amounting to $272,920 in 2024, compared to $69,673 in 2023, indicating a significant increase in stock buybacks [439]. Organizational Structure and Control - As of December 31, 2024, the Founder Post-IPO Members control approximately 82.1% of the combined voting power of the outstanding shares [214]. - The organizational structure may confer benefits to CLEAR Post-IPO Members that do not equally benefit Class A Common Stock holders [213]. - The company is subject to covenants in its Credit Agreement that limit its ability to incur additional debt, pay dividends, or engage in certain business activities, which may hinder future operations [227]. Market and Operational Challenges - The company’s decisions to enhance member experience may conflict with short-term financial results, potentially affecting stock price [205]. - The company expects continued variability in its operating and financial performance due to factors outside its control [242]. - The company anticipates that fluctuations in its stock price may occur due to factors unrelated to its operating performance [243]. Internal Controls and Compliance - The company may face challenges in maintaining effective internal controls, which could impair the accuracy of financial statements and compliance with regulations [235]. Revenue Generation - The Company primarily generates revenue from subscriptions to its consumer aviation service, CLEAR Plus, with membership subscription revenue presented net of taxes, refunds, and chargebacks [453]. - The Company recognizes revenue ratably from its consumer aviation subscription service, with performance obligations satisfied over time as services are rendered, typically over a period of less than 12 months [459]. - The Company’s revenue is primarily derived from subscriptions to its consumer aviation service, CLEAR Plus, with no individual airport accounting for more than 10% of membership revenue [529]. Acquisitions and Investments - The Company acquired assets of Sora ID, Inc. for a total purchase consideration of $5,250 thousand, including $1,500 thousand in deferred consideration [522]. - Goodwill recognized from the acquisition of Sora ID, Inc. amounted to $3,950 thousand, which is deductible for tax purposes [522]. - The Company evaluates acquisitions to determine if they are business combinations or asset acquisitions, with goodwill recognized as the excess of purchase price over net identifiable assets acquired [484].

Clear Secure (YOU) came out with quarterly earnings of $0.90 per share, beating the Zacks Consensus Estimate of $0.28 per share. This compares to earnings of $0.17 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 221.43%. A quarter ago, it was expected that this airport security company would post earnings of $0.33 per share when it actually produced earnings of $0.30, delivering a surprise of -9.09%.Over the last four quarters ...

[EMPLOYMENT AGREEMENT](index=1&type=section&id=Exhibit%2010.3%20EMPLOYMENT%20AGREEMENT) This document outlines the comprehensive terms and conditions of employment between Secure Identity, LLC and Jennifer Hsu, covering compensation, duties, termination, and restrictive covenants [Introduction](index=1&type=section&id=Introduction) This Employment Agreement, dated February 20, 2025, is between Secure Identity, LLC (the "Employer") and Jennifer Hsu ("Executive"), outlining the terms and conditions of Executive's employment - The agreement is between Secure Identity, LLC and Jennifer Hsu[2](index=2&type=chunk) - The effective date of the agreement is **February 20, 2025**[2](index=2&type=chunk) [1. Employment](index=1&type=section&id=1.%20Employment) This section formally establishes the employment relationship between the Employer and the Executive under the terms and conditions specified in the Agreement - The Employer agrees to employ the Executive, and the Executive agrees to be employed by the Employer, subject to the Agreement's terms[2](index=2&type=chunk) [2. Term of Employment](index=1&type=section&id=2.%20Term%20of%20Employment) The Executive's employment term commences on March 31, 2025, and continues until terminated as per Section 5. Employment is contingent upon successful completion of a background check and onboarding process - The Commencement Date for Executive's employment is **March 31, 2025**[3](index=3&type=chunk) - The Agreement is null and void if the Executive fails to complete a background check with acceptable results and the Company's onboarding process prior to the Commencement Date[3](index=3&type=chunk) - Continued employment is contingent on successful completion of any required background checks[3](index=3&type=chunk) [3. Duties and Responsibilities](index=1&type=section&id=3.%20Duties%20and%20Responsibilities) The Executive will serve as Chief Financial Officer, performing customary duties and other assigned tasks, primarily from the New York, NY office. The Executive must devote full working time to the Company's business and comply with all applicable laws and company policies - Executive's initial position is **Chief Financial Officer (CFO)**[4](index=4&type=chunk) - Primary work location is the Company's office in New York, NY, with in-person work required[4](index=4&type=chunk) - Executive must devote full working time to the Company and comply with all applicable laws and Company policies[4](index=4&type=chunk) [4. Compensation and Benefits](index=2&type=section&id=4.%20Compensation%20and%20Benefits) This section details the Executive's compensation structure, including base salary, expense reimbursement, eligibility for various benefit plans, a discretionary annual bonus, and equity grants, along with relocation assistance [4.(a) Base Salary](index=2&type=section&id=4.(a)%20Base%20Salary) This subsection specifies the Executive's annual base salary Annual Base Salary | Compensation Type | Amount | | :---------------- | :----- | | Annual Base Salary | $500,000 | - Base Salary is subject to review by the Compensation Committee[6](index=6&type=chunk) [4.(b) Expense Reimbursement](index=2&type=section&id=4.(b)%20Expense%20Reimbursement) This subsection outlines the policy for reimbursing the Executive's business expenses - Executive will be reimbursed for ordinary and necessary business expenses in accordance with Employer's customary practices and policy[6](index=6&type=chunk) [4.(c) Benefit Plans, Fringe Benefits and Vacations](index=2&type=section&id=4.(c)%20Benefit%20Plans,%20Fringe%20Benefits%20and%20Vacations) This subsection details the Executive's eligibility for various employee benefit plans and vacation policies - Executive is eligible to participate in 401(k), medical, dental, life insurance, disability, and other employee benefit plans generally available to executives[6](index=6&type=chunk) [4.(d) Discretionary Annual Bonus Policy](index=2&type=section&id=4.(d)%20Discretionary%20Annual%20Bonus%20Policy) This subsection describes the Executive's eligibility for a discretionary annual bonus - Executive is eligible for a discretionary annual bonus under the Company's Bonus Policy[6](index=6&type=chunk) Annual Bonus Target Opportunity | Bonus Type | Target Opportunity | | :--------- | :----------------- | | Annual Bonus | 80% of Base Salary | - Payment of the Annual Bonus is contingent on continuous employment through the payment date and determined by the Compensation Committee[6](index=6&type=chunk) [4.(e) Equity Grants](index=2&type=section&id=4.(e)%20Equity%20Grants) This subsection details the Executive's eligibility for equity awards, including initial and future grants - Executive is eligible for Annual Equity Awards, typically comprising time-based and performance-based restricted stock units (RSUs), subject to Compensation Committee approval and continued employment[6](index=6&type=chunk)[7](index=7&type=chunk) [4.(e)i. 2025 RSU Award](index=3&type=section&id=4.(e)i.%202025%20RSU%20Award) This sub-subsection specifies the details of the Executive's 2025 Restricted Stock Unit (RSU) award 2025 RSU Award Grant Date Value | Award Type | Grant Date Value | | :--------- | :--------------- | | 2025 RSU Award | $1,750,000.00 | - The 2025 RSU Award will be granted on the first day of the month following the Commencement Date[8](index=8&type=chunk) - Time-based portion vests in three annual installments on February 27; performance-based portion cliff-vests on February 27, 2028[8](index=8&type=chunk) [4.(e)ii. Future Annual Equity Awards](index=3&type=section&id=4.(e)ii.%20Future%20Annual%20Equity%20Awards) This sub-subsection outlines the Executive's eligibility for subsequent annual equity awards - Executive is eligible for Annual Equity Awards in 2026 and later years, subject to continued employment, Plan terms, CEO discretion, and Compensation Committee approval[8](index=8&type=chunk) [4.(f) Sign-On Equity Award](index=3&type=section&id=4.(f)%20Sign-On%20Equity%20Award) This subsection details the Executive's one-time sign-on equity award Sign-On RSU Award Total Target Value | Award Type | Total Target Value | | :----------- | :----------------- | | Sign-On RSU Award | $550,000.00 | - The Sign-On RSU Award will be composed solely of time-based restricted stock units, vesting 1/3 per year over three years[8](index=8&type=chunk) - Grant is subject to Compensation Committee approval and execution of award agreements[8](index=8&type=chunk) [4.(g) Relocation Assistance](index=3&type=section&id=4.(g)%20Relocation%20Assistance) This subsection describes the relocation assistance provided to the Executive Relocation Assistance Amount | Assistance Type | Amount | | :-------------- | :----- | | Relocation Assistance | $50,000 | - Payment is conditioned upon relocation to a primary residence within a reasonable daily commute of Employer's New York, NY location by **August 1, 2025**[8](index=8&type=chunk) - Repayment is required if Executive fails to relocate by August 1, 2025, or terminates employment without Good Reason or is terminated for Cause before the first anniversary of the Commencement Date[9](index=9&type=chunk) [5. Termination of Employment](index=4&type=section&id=5.%20Termination%20of%20Employment) This section outlines various circumstances under which Executive's employment may be terminated, including death, total disability, termination by the Employer (with or without Cause), and termination by the Executive (with or without Good Reason). Upon termination, the Executive is deemed to resign from all Company positions - Upon termination, Executive is deemed to have resigned as an officer and fiduciary of any employee benefit plan, and relinquished any signing authority[10](index=10&type=chunk) [5.(a) Death](index=4&type=section&id=5.(a)%20Death) This subsection specifies the immediate termination of employment upon the Executive's death - Executive's employment terminates immediately upon death[12](index=12&type=chunk) [5.(b) Total Disability](index=4&type=section&id=5.(b)%20Total%20Disability) This subsection defines total disability and its implications for employment termination - Employer may terminate employment if Executive becomes 'Totally Disabled,' defined as being unable to perform full-time duties for **180 consecutive days**[12](index=12&type=chunk) [5.(c) Termination by the Employer for Cause](index=4&type=section&id=5.(c)%20Termination%20by%20the%20Employer%20for%20Cause) This subsection defines "Cause" for termination and the process for such termination - Cause includes indictment/conviction of certain crimes, deliberate refusal to perform duties, fraud/embezzlement, misconduct with material adverse effect, or material breach of the Agreement[12](index=12&type=chunk)[13](index=13&type=chunk)[14](index=14&type=chunk) - If curable, Executive must be given written notice and a **10-day period** to correct the issue[12](index=12&type=chunk)[13](index=13&type=chunk) [5.(d) Termination by the Employer without Cause](index=5&type=section&id=5.(d)%20Termination%20by%20the%20Employer%20without%20Cause) This subsection describes the Employer's right to terminate employment without cause - Employer may terminate employment without Cause at any time with written notice[14](index=14&type=chunk) [5.(e) Termination by Executive without Good Reason](index=5&type=section&id=5.(e)%20Termination%20by%20Executive%20without%20Good%20Reason) This subsection outlines the Executive's ability to terminate employment without good reason - Executive may terminate employment with at least **thirty (30) days'** advance written notice[14](index=14&type=chunk) - Employer may accelerate the termination date without it being considered a termination without Cause[

Core Insights - Ken Cornick, Co-Founder, President, and CFO of CLEAR, is stepping down from his executive roles and transitioning to an advisory position, having been instrumental in the company's growth from 190,000 members in 2010 to over 30 million members today [1][4] - Michael Barkin has been appointed as the new President of CLEAR, effective March 31, 2025, bringing extensive experience from his previous roles, including Executive Vice President and CFO at Vail Resorts [2][4] - Jen Hsu will take over as Chief Financial Officer, also effective March 31, 2025, with a strong background in corporate finance and investor relations from her time at Chewy, JPMorgan, and Goldman Sachs [3][4] Company Overview - CLEAR's mission focuses on creating frictionless experiences for its members, with a secure identity platform that enhances safety and ease in various environments, including travel and digital interactions [5] - The company emphasizes privacy, ensuring that members retain control over their information and that their data is not sold [5]

NEW YORK, Feb. 26, 2025 (GLOBE NEWSWIRE) -- Clear Secure, Inc. (NYSE: YOU), the secure identity platform, has posted a shareholder letter containing its 2024 fourth quarter and full year 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 877-407-3089 for U.S. participants and +1-215-268-9854 for international partici ...

Core Insights - CLEAR has opened a new TSA PreCheck enrollment location at Plaza Las Américas in San Juan, Puerto Rico, marking its first non-airport site for this service [1][2][3] - The expansion of CLEAR's TSA PreCheck enrollment footprint aims to enhance consumer convenience by providing more locations and extended hours for enrollment and renewals throughout 2025 [2][3] - TSA PreCheck members enjoy expedited security screening, with 99% of members typically waiting less than 10 minutes at airport checkpoints nationwide [4][6] Company Overview - CLEAR is an authorized TSA PreCheck enrollment provider with over 27 million members and a mission to create frictionless experiences [7] - The company operates a growing network of enrollment locations, including 55 airport-based sites across the U.S. and select Staples stores [1][2][5] - CLEAR emphasizes privacy and data security, ensuring that members have control over their information [7] Location Details - The new enrollment site at Plaza Las Américas operates Monday to Saturday from 11 a.m. to 7 p.m. AST and Sunday from Noon to 7 p.m. AST [3] - Plaza Las Américas is the largest shopping center in the Caribbean, featuring over 300 retailers and services, and is strategically located near key transportation hubs [8][9]

Company Overview - Clear Secure (YOU) shares increased by 5.2% to $23.55, following a period of 7% loss over the past four weeks, indicating a significant recovery in stock performance [1] - The company is experiencing strong membership growth, increased TSA PreCheck enrollments, strategic enterprise partnerships, and enhanced operational efficiency, which are contributing to higher retention rates and free cash flow [1] Earnings Expectations - Clear Secure is projected to report quarterly earnings of $0.28 per share, reflecting a year-over-year increase of 64.7% [2] - Expected revenues for the upcoming quarter are $203.45 million, representing a 19% increase compared to the same quarter last year [2] Market Trends - The consensus EPS estimate for Clear Secure has remained stable over the last 30 days, suggesting that stock price movements may not sustain without changes in earnings estimate revisions [3] - Clear Secure holds a Zacks Rank of 3 (Hold), indicating a neutral outlook in the current market context [3] Industry Comparison - Clear Secure operates within the Zacks Internet - Software industry, where another company, Blend Labs (BLND), has also maintained a Zacks Rank of 3 (Hold) [3][4] - Blend Labs is expected to report an EPS of $0.01, which is a 114.3% increase from the previous year, but has not seen changes in its consensus EPS estimate over the past month [4]

Core Points - Clear Secure, Inc. declared a quarterly dividend of $0.125 per share and a special cash dividend of $0.27 per share, payable on March 18, 2025, to holders of record as of March 10, 2025 [1] - The dividends will be funded from cash distributions made by Alclear Holdings, LLC, which include mandatory tax distributions and discretionary distributions [2] - The Board authorized a $200 million increase to the existing Class A Common Stock share repurchase program, resulting in an aggregate remaining authorization of approximately $232 million after using approximately $68 million [3] Future Considerations - The declaration, timing, and amount of future dividends will depend on various factors including the Company's operational results, cash flows, financial position, capital requirements, and general business conditions [4] - The timing and actual number of shares repurchased will be determined by management based on stock price, trading volume, market conditions, and other business considerations [4] Company Overview - CLEAR's mission is to create frictionless experiences, with over 27 million members and a growing network of partners globally [5] - The identity platform aims to transform everyday experiences, ensuring members have control over their information and that member data is not sold [5]