Clear Secure(YOU) - 2025 Q1 - Quarterly Results

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]