Core Insights - CLEAR is participating in the CMS Health Tech Ecosystem initiative to modernize healthcare through trusted identity solutions [1][2] - The initiative aims to enhance health data accessibility, interoperability, and patient empowerment while reducing provider burdens [2][3] Company Overview - CLEAR serves as an Identity Assurance Level 2 (IAL2) identity layer, facilitating secure and seamless patient experiences in healthcare [1][4] - The company has over 31 million members and a growing network of partners, focusing on privacy and user control over personal information [8] Technology and Solutions - CLEAR1 is a NIST IAL2/AAL2-compliant identity solution that provides reusable, privacy-centric credentials for patients and providers [4][7] - The platform is already in use by leading healthcare organizations, streamlining processes such as patient onboarding and access to medical records [3][5] Industry Impact - Over 60 companies have committed to the CMS Health Tech Ecosystem pledge, aiming to improve interoperability and reduce administrative burdens in healthcare [4][5] - The collaboration is expected to enhance the speed and reliability of identity verification across various healthcare providers [5][7]

Core Insights - CLEAR has launched CLEAR Concierge, a premium service designed to expedite the airport experience for CLEAR+ Members [1][3] - The service offers two options: Concierge Express for $99 per use and Concierge Gate Service for $179 per use, providing various levels of assistance [2][5] - CLEAR Concierge aims to address the increasing travel demands, with U.S. airports expected to see an additional one million travelers daily by 2030 [4] Company Overview - CLEAR's mission focuses on enhancing security while providing frictionless experiences, boasting over 31 million Members and a growing network of partners [6] - The company emphasizes privacy, ensuring that Members retain control over their information and that data is not sold [6] Service Availability - CLEAR Concierge is currently operational at several major U.S. airports, with plans to expand to more locations, including Hartsfield–Jackson Atlanta International Airport [3][4] - The service is exclusively available to CLEAR+ Members, with children under 17 allowed to join for free [5]

Financial Data and Key Metrics Changes - Fourth quarter revenues increased by 15% year-over-year, reaching a record $5,936,000 compared to $5,176,000 in Q4 2023 [31] - SaaS revenues for Q4 grew 17% quarter-over-quarter, totaling $5,900,000, while full-year SaaS revenues increased by 7% to $19,800,000 [8][32] - Adjusted EBITDA for the full year improved to a positive $520,000 compared to a loss of $377,000 in 2023 [39] Business Line Data and Key Metrics Changes - The automotive vertical saw significant growth, with volumes increasing by 2,500% year-over-year, while title insurance grew by 54% [9] - The company achieved a gross profit margin of 91% for both Q4 and the full year, down from 95% and 93% respectively in the prior year [33][37] - Operating expenses increased by 21% in Q4, totaling $4,928,000, primarily due to higher R&D costs [34] Market Data and Key Metrics Changes - Retail still represents approximately 75% of the company's scan volume, although transaction volumes in retail were down about 2.5% year-over-year [29][49] - The company is diversifying away from retail, focusing on verticals such as automotive and title insurance, which have higher transaction values [11][80] Company Strategy and Development Direction - The company is focused on vertical channel diversification and enhancing ID validation services, with a strong emphasis on technology solutions that outperform competitors [5][6] - Ongoing investments in IT initiatives, including a migration from Azure to AWS, are expected to improve efficiency and reduce costs [19][20] - The company aims to leverage marketing and customer service capabilities to enhance customer experience and drive growth [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth in the second half of 2025, driven by rollout schedules and proof of concepts [44][45] - The company is cautious about the retail environment, noting that consumer confidence and spending have declined, impacting transaction volumes [29][54] - Management anticipates continued improvements in adjusted EBITDA and gross margins, with a focus on maintaining operating expenses below revenue growth [41][60] Other Important Information - The company reported a GAAP loss of $918,000 for the full year, an improvement from a loss of $1,980,000 in 2023 [38] - The company has a $2,000,000 revolving credit facility with Citibank, which was not utilized during 2024 [39] Q&A Session Summary Question: Visibility on stronger back half of the year - Management indicated that visibility is based on rollout schedules and proof of concepts, with some delays due to IT integration [44][45] Question: Impact of macroeconomic conditions on sales - Management noted that sales conversations have not been disrupted, as fraud remains a consistent issue across industries [47][48] Question: Clarification on Q4 revenue strength and Q1 expectations - Management explained that Q4 strength was driven by non-retail sectors, while Q1 is expected to see a decline in retail transaction volumes [53][54] Question: Update on large social media customer - Management stated that procurement processes are ongoing, with testing completed and positive feedback received [58][59] Question: Future EBITDA expectations - Management expects continued improvement in EBITDA for 2025, with a focus on maintaining positive growth [60] Question: Sales team structure and focus - Management highlighted the addition of three new sales associates, emphasizing a consultative selling approach across various verticals [62][63] Question: Top priorities for 2025 - Management identified sales growth and enhancing customer success as top priorities for the year [64][66]