Financial Data and Key Metrics Changes - Third quarter revenue grew 15.5% year-over-year to $229.2 million, exceeding guidance [12] - Total bookings increased 14.3% year-over-year to $260.1 million, also exceeding guidance [12] - Operating income reached $52.6 million, representing a 23% operating margin, with a 5.3 percentage points margin expansion year-over-year [16] - Adjusted EBITDA was $70.1 million, reflecting a 30.6% adjusted EBITDA margin, with a 6.1 percentage points margin expansion year-over-year [16] - Free cash flow was negative $53.5 million, impacted by an annual payment to a credit card partner [16] Business Line Data and Key Metrics Changes - Active Clear Plus members grew to 7.7 million, up 7.5% year-over-year [12] - Total members reached 35.8 million, up 35.1% year-over-year, indicating strong momentum in Clear One [15] - Gross dollar retention was 86.9%, down 40 basis points sequentially, consistent with expectations [14] Market Data and Key Metrics Changes - Member acquisition in airports remains strong, supported by an increase in total air travelers [8] - International enrollment is off to a strong start, with Clear Plus now offered to over 40 international country passport holders [12] Company Strategy and Development Direction - Clear is focusing on enhancing customer experience through product innovations like eGates and Clear Concierge [5][7] - The company is expanding its Clear Plus member base and exploring partnerships to tap into international travelers [8][10] - Clear One is scaling and delivered a record quarter of bookings, indicating growth in enterprise identity solutions [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the upcoming travel boom, driven by events like the World Cup and the Olympics [52] - The company anticipates continued growth in bookings and revenue for Q4, with guidance of $234-$237 million in revenue [16][17] - Management noted that improvements in customer experience are positively impacting retention and acquisition [24] Other Important Information - The rollout of eGates has commenced, with members verifying in approximately five seconds and moving through screening in 30 seconds [7] - Clear Concierge is now live at 23 airports, enhancing the travel experience for members [7] Q&A Session Summary Question: How should investors think about the strong bookings guidance for Q4? - Management indicated that product and member experience improvements are impacting both retention and acquisition, with Clear One contributing more meaningfully to the top line [20][21] Question: What are the moving parts affecting gross dollar retention? - Management explained that recent price increases are expected to positively impact gross dollar retention over time, with no material impact on retention observed from recent pricing changes [22][23] Question: How is Clear addressing TSA staffing issues? - Management noted that traffic has been trending upwards despite the government shutdown, and Clear's technology is improving the overall airport experience [27][28] Question: How is the partnership with American Express evolving? - Management expressed satisfaction with the partnership and highlighted Clear Plus as a key benefit of the American Express Platinum Card [31] Question: What is the impact of eGates on member experience? - Management reported significant improvements in member experience scores and NPS, with eGates providing a predictable and efficient travel experience [42][46] Question: How is Clear marketing to international travelers? - Management plans to leverage strategic partnerships and marketing efforts to drive awareness and enrollment among international travelers [50][51]

Financial Data and Key Metrics Changes - Third quarter revenue grew 15.5% year over year to $229.2 million, exceeding guidance [10] - Total bookings increased 14.3% year over year to $260.1 million, also exceeding guidance [10] - Active Clear Plus members grew to 7.7 million, up 7.5% year over year [10] - Gross dollar retention was 86.9%, down 40 basis points sequentially [11] - Operating income reached $52.6 million, representing a 23% operating margin, with a margin expansion of 5.3 percentage points year over year [13] - Adjusted EBITDA was $70.1 million, with a margin of 30.6%, reflecting a 6.1 percentage points year-on-year margin expansion [14] - Free cash flow was negative $53.5 million, impacted by a $229 million annual payment to a credit card partner [14] Business Line Data and Key Metrics Changes - Clear One delivered its strongest quarter yet with a record number of enterprise customers signed [7] - Clear Plus member acquisition in airports remains strong, supported by an increase in total air travelers [6] - The eGate rollout has commenced, with members verifying in approximately five seconds and moving to physical screening in 30 seconds [5] Market Data and Key Metrics Changes - The company is now offering Clear Plus to over 40 international country passport holders, with early enrollment showing promise [10] - Traffic through airports has been trending upwards, with a nearly 4% increase in October despite government shutdowns [24] Company Strategy and Development Direction - The company is focused on enhancing customer experience through product innovation, including eGates and Clear Concierge services [5][6] - Clear is expanding its partnerships, particularly with American Express, to enhance member benefits and drive awareness [6][26] - The company aims to leverage public-private partnerships to improve security and customer experience [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the upcoming holiday travel season despite challenges in the airport experience [24] - The company anticipates continued growth in bookings and revenue for Q4, with guidance indicating revenue of $234-$237 million [14] - Management highlighted the importance of improving customer experience and retention as key drivers for future growth [20] Other Important Information - The company ended Q3 with $533 million in cash and marketable securities after returning $16.7 million to shareholders through dividends [14] - The anticipated rollout of eGates is expected to enhance operational efficiency and member experience significantly [5][41] Q&A Session Summary Question: How should investors think about the strong bookings guidance for Q4? - Management indicated that improvements in product and member experience across all business dimensions are driving retention and acquisition [17] Question: What are the moving parts affecting gross dollar retention? - Management explained that recent price increases are expected to positively impact gross dollar retention in the coming quarters [18][19] Question: How is Clear addressing TSA staffing issues? - Management noted that traffic is trending upwards and emphasized Clear's role in improving the overall airport experience [23][24] Question: What considerations are there for the upcoming credit card renewal? - Management highlighted the value of the partnership with American Express and the importance of reflecting that value in future agreements [26] Question: How does Clear plan to market to international travelers? - Management plans to utilize strategic partnerships and targeted marketing efforts to drive awareness and enrollment among international travelers [46] Question: What is the status of the Concierge service? - Management reported positive feedback and repeat usage from members utilizing the Concierge service, with plans to expand awareness [60]

Financial Data and Key Metrics Changes - The company reported revenue of $219.5 million, representing a 17.5% growth year-over-year [16] - Total bookings reached $222.9 million, reflecting a 13.1% increase [16] - Free cash flow was $117.9 million, showing a 37.1% year-over-year growth [23] Business Line Data and Key Metrics Changes - Active Clear Plus members grew to 7.6 million, up 7.5% year-over-year [17] - The TSA PreCheck business expanded significantly, operating 231 enrollment locations, nearly double the count from the previous quarter [18] - Gross dollar retention improved to 87.3%, up 20 basis points sequentially [18] Market Data and Key Metrics Changes - Total members reached 33.5 million, an increase of 38.2% year-over-year [20] - The company signed over 25 ClearOne deals in Q2, marking a record for both the number of deals and aggregate contract value [20] Company Strategy and Development Direction - The company is focused on expanding its Clear Plus service to international travelers, enhancing its total addressable market (TAM) [7][17] - Clear Concierge, a premium on-demand service, is being introduced to improve member experience and increase revenue per member [8][19] - The company aims to modernize the travel experience through partnerships with the TSA and the aviation community, emphasizing public-private partnerships [8][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the travel industry's trajectory, noting record travel volume despite a flat overall travel environment [60] - The administration's focus on improving airport experiences aligns with the company's goals, providing opportunities for innovation and modernization [41][43] - The company anticipates continued growth in adjusted EBITDA margins and free cash flow for the full year [24] Other Important Information - The company is now a certified REAL ID issuer, allowing travelers to meet federal identification standards through the Clear app [10][11] - The introduction of Clear ID aims to create a mobile-first identity credential recognized beyond travel [11] Q&A Session Summary Question: International enrollment process and requirements - The enrollment process for international travelers will mirror the domestic one-step enrollment, utilizing e-passport capabilities [28] Question: Impact of recent price increases on retention - Retention has been as expected following the recent coordinated price increases, with a focus on optimizing bookings [34][35] Question: Administration's focus on airport experience improvements - The administration is focused on security, traveler delight, and public-private partnerships, which positions the company favorably [41][43] Question: Drivers behind gross dollar retention increase - Gross dollar retention increased due to retention and pricing impacts, with no significant effect from Real ID in the quarter [45] Question: Adoption expectations for international travelers - Pricing for international travelers will remain the same as in the U.S., with significant opportunities for adoption through partnerships [50][51] Question: Travel demand outlook for the second half of the year - The company remains optimistic about travel demand, expecting to penetrate both domestic and international markets [60][61]

Financial Data and Key Metrics Changes - The company reported revenue of $219.5 million, representing a 17.5% growth year-over-year [17] - Total bookings reached $222.9 million, reflecting a 13.1% increase [17] - Free cash flow was $117.9 million, marking a 7.3% year-over-year growth [24] Business Line Data and Key Metrics Changes - Active Clear Plus members grew to 7.6 million, up 7.5% year-over-year [17] - The TSA PreCheck business expanded significantly, operating 231 enrollment locations, nearly double the count from the previous quarter [18] - Gross dollar retention improved to 87.3%, up 20 basis points sequentially [18] Market Data and Key Metrics Changes - Total members reached 33.5 million, a 38.2% increase year-over-year [21] - The company signed over 25 ClearOne deals in Q2, achieving record numbers in both the number of deals and aggregate contract value [21] Company Strategy and Development Direction - The company is focused on expanding its Clear Plus service to international travelers, enhancing its total addressable market (TAM) [7][17] - Clear Concierge, a premium on-demand service, is being introduced to improve member experience and increase revenue per member [20] - The company aims to modernize the travel experience through partnerships with TSA and the aviation community, emphasizing public-private partnerships [8][41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the travel industry's trajectory, noting that despite flat travel volumes, Clear achieved record travel volume [62] - The administration's focus on improving airport experiences aligns with the company's goals, and management is excited about potential partnerships to drive innovation [42][43] - The company anticipates expanding adjusted EBITDA margins year-over-year and reaffirmed free cash flow guidance of at least $310 million for the year [25] Other Important Information - The company is now a certified REAL ID issuer, allowing travelers to meet federal identification standards through the Clear app [11][12] - The operating income was $42.6 million, representing a 19.4% operating margin, with significant margin expansion [22] Q&A Session Summary Question: Can you provide more details on the international opportunity and enrollment process? - The enrollment process for international travelers will mirror the domestic one-step enrollment, utilizing e-passport capabilities [27] Question: How do you expect retention to be affected by the recent price increases? - Retention has been as expected following the July 1 price increase, with a more coordinated pricing strategy in place [33][34] Question: What is the administration focused on regarding airport experience improvements? - The administration is focused on security, traveler delight, and modernizing airports through public-private partnerships, which positions Clear favorably [41][43] Question: What factors contributed to the increase in gross dollar retention? - The increase in gross dollar retention was influenced by retention and pricing actions, with a modest benefit from the previous quarter's ID upgrades [45] Question: How does the company view the macro environment and travel demand for the second half of the year? - The company remains optimistic about travel demand, noting that it continues to penetrate the U.S. travel population effectively [62]