Clear Secure(US:YOU)2022-05-16 18:17Financial Data and Key Metrics Changes - Revenue increased by 79% and bookings rose by 74% in Q1 2022 compared to the previous year, driven by growth in Clear Plus and new platform deals [9][10] - Free cash flow generated in the quarter was approximately $20 million, marking the expectation of the fifth consecutive year of free cash flow generation [9][10] - Adjusted EBITDA was roughly breakeven, with expectations of moderating year-over-year expense growth in 2022 [10][11] Business Line Data and Key Metrics Changes - Clear Plus member base has more than doubled compared to 2019, with in-airport enrollments growing by over 300% versus Q1 2019 [4][9] - Net member retention was reported at 95.3%, exceeding long-term expectations, with gross retention in the low to mid-80s [11][12] - A planned price increase for Clear Plus subscription was announced, raising the price for new members by $10 to $189, while existing members will be grandfathered at $179 [12][14] Market Data and Key Metrics Changes - The company has opened new Clear Plus lanes at three California airports, bringing the total to over 120 lanes in 43 airports across the U.S. [5][14] - The Reserve powered by Clear product is seeing record usage for booking TSA screening time slots in various cities [6][14] Company Strategy and Development Direction - The company is focused on expanding its network and launching new products, with a strong emphasis on partnerships and platform growth [5][7] - Clear is exploring opportunities in various verticals, including healthcare and digital trust, indicating a broad-based growth strategy [22][23] - The company announced a $100 million share repurchase program to enhance long-term returns [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resurgence in travel demand as pandemic restrictions ease, with expectations of continued growth in the travel industry [3][4] - The company is well-positioned for growth with ample liquidity and a strong cash balance of $663 million as of March 31 [14] - Management anticipates launching TSA PreCheck enrollment in the coming months, indicating a positive outlook for future growth [29][30] Other Important Information - The company is seeing strong same-store growth, although specific metrics were not disclosed for the full base [34] - Integration of recent acquisitions, including Atlas and Whyline, is progressing well, with expectations for accelerated growth [35][36] Q&A Session Summary Question: Health Pass member conversion to Clear Plus - Management noted organic upgrades from the platform to Clear Plus, indicating higher brand awareness and interest [18] Question: Airport count and lane expansion - Management confirmed growth opportunities in both new and existing airport partnerships, with a focus on the Americas and Western Europe for international expansion [24] Question: TSA PreCheck launch progress - Management reported good progress and motivation among partners to bring the PreCheck enrollment program to the public [29] Question: Impact of price increases on partners - Management clarified that while price increases are not expected to impact existing members this year, future increases could lead to higher dollar retention [39][42] Question: Membership conversion impact on revenue - Management indicated that while the impact from platform experiences is currently small, it is expected to grow as the platform develops [44] Question: Dynamics driving same-store sales growth - Management attributed strong growth to a combination of factors, including brand trust, network power, and improved technology [48][49]