Clarivate(CLVT) - 2024 Q4 - Annual Results

Financial Performance - Total revenue for Q4 2024 was $663.0 million, a decrease of 3.0% from $683.7 million in Q4 2023[3] - Net loss for Q4 2024 improved to $191.8 million, or $0.27 per diluted share, compared to a net loss of $843.9 million, or $1.30 per diluted share, in Q4 2023[4] - Full year 2024 total revenue was $2.56 billion, down 2.7% from $2.63 billion in 2023[5] - Adjusted EBITDA for Q4 2024 was $285.3 million, a decrease of 4.3% from $298.2 million in Q4 2023[4] - Total revenues for the year ended December 31, 2024, were $2,556.7 million, down 2.7% from $2,628.8 million in 2023[40] - Adjusted EBITDA for Q4 2024 was $285.3 million, with an adjusted EBITDA margin of 43.0%, compared to $298.2 million and 43.6% in Q4 2023[43] - Net income for Q4 2024 was $(191.8) million, improving from $(843.9) million in Q4 2023[43] - The company reported a decline in recurring revenues of 2.1% for the year, totaling $2,056.6 million compared to $2,062.7 million in 2023[40] Cash Flow and Capital Management - Free cash flow for the full year 2024 was $357.5 million, a decrease of 28.7% compared to $501.7 million in the prior year[15] - Free cash flow for Q4 2024 was $59.1 million, down from $127.0 million in Q4 2023[48] - Cash flows from operating activities for the year were $646.6 million, a decrease from $744.2 million in 2023[36] - The company repurchased $200 million of ordinary shares and prepaid $198 million of debt in 2024[1] - The company repurchased ordinary shares worth $200.0 million in 2024, compared to $100.0 million in 2023[36] Revenue Breakdown - Subscription revenues for the full year 2024 increased by $8.7 million, or 0.5%, to $1.63 billion[12] - Subscription revenues for Q4 2024 were $407.0 million, a decrease of 0.9% compared to $410.8 million in Q4 2023[40] - Transactional revenues for Q4 2024 were $144.0 million, a decrease of 6.4% from $153.8 million in Q4 2023[40] - The company achieved organic growth of 0.1% in subscription revenues for the year ended December 31, 2024[40] - Organic Annualized Contract Value (ACV) grew by 0.9% in 2024 compared to 2023, primarily driven by price increases[38] - Total ACV for 2024 declined by 1.1% compared to 2023, mainly due to the divestiture of ScholarOne in November 2024[38] Strategic Initiatives - The company initiated a review of strategic alternatives, including potential divestitures, to maximize shareholder value[16] - The company plans to discontinue certain low-margin transactional products in 2025 and 2026 to improve revenue predictability[8] Future Outlook - The 2025 outlook projects revenues between $2.28 billion and $2.40 billion, with recurring organic revenue growth expected to be flat[20] - Forecasted Net income (loss) for 2025 ranges from $(203) million to $(127) million[50] - Adjusted EBITDA is projected to be between $940 million and $1,000 million, with an Adjusted EBITDA margin of 40.5% to 42.5%[50] - Adjusted diluted EPS is expected to be between $0.60 and $0.70, with a net income (loss) per share ranging from $(0.28) to $(0.18)[51] - Free cash flow is forecasted to be between $300 million and $380 million, with net cash provided by operating activities estimated at $555 million to $635 million[52] - Capital expenditures for 2025 are projected to be $(255) million[52] - The company anticipates restructuring costs of $30 million related to the Value Creation Plan in 2025[50] Asset Management - The total assets decreased from $12,706.8 million in 2023 to $11,490.2 million in 2024, a decline of approximately 9.6%[32] - The company's cash and cash equivalents, including restricted cash, decreased from $370.7 million in 2023 to $295.2 million in 2024, a reduction of 20.3%[36] Expenses - Total operating expenses for Q4 2024 were $725.3 million, significantly lower than $1,471.9 million in Q4 2023[34] - Goodwill and intangible asset impairments for the year were $540.7 million, down from $979.9 million in 2023[34] - Capital expenditures for the year ended December 31, 2024, were $289.1 million, compared to $242.5 million in 2023[48] - Depreciation and amortization expenses are expected to be around $687 million to $697 million[50] - Interest expense is projected to be between $252 million and $262 million[50]