Clear Secure(YOU)2025-02-26 17:04Financial Data and Key Metrics Changes - In Q4 2024, revenue grew by 21% and total bookings increased by 17%, driven by member growth, pricing, strong member retention, and improvements in win-back activity [22][24] - The company achieved a 24% full-year adjusted EBITDA margin, up over 1,000 basis points year-over-year [23] - Free cash flow for 2024 was $284 million, a 42% increase year-over-year, with a share count reduction of 9% to 137.7 million shares [31][32] Business Line Data and Key Metrics Changes - TSA PreCheck and CLEAR1 contributed several points to the growth rate, with TSA PreCheck scaling to 91 locations [22][12] - Active CLEAR Plus members grew by 164,000 in the quarter, with total cumulative enrollments ending the year at 30 million, reflecting continued traction [24][22] - The rollout of EnVe's has improved lane experience scores and throughput significantly, with lanes now serving members with 30% fewer pods [8][6] Market Data and Key Metrics Changes - CLEAR Plus currently covers around 73% of airport volume with 166 lanes nationwide [6] - The company is expanding its out-of-airport enrollment network, with locations like the Mall of America and Westfield showing positive cash flow within weeks [84] Company Strategy and Development Direction - The company aims to enhance its secure identity platform and strengthen public-private partnerships, particularly in the travel sector [10][11] - CLEAR is focused on deploying end-to-end automated lanes at no cost to the government, emphasizing the importance of technology in modernizing airport infrastructure [10][66] - The company plans to increase pricing on historically free tiers and focus on gross dollar retention to enhance unit economics [28][86] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the travel industry's recovery, expecting 4 million people per day to pass through U.S. airports by 2030 [81] - The company anticipates strong top-line growth in 2025, with free cash flow guidance of at least $310 million [34][18] - Management highlighted the importance of automation and technology in improving customer experience and operational efficiency [66][62] Other Important Information - The company recognized a one-time noncash net gain of $75 million in the quarter, related to a tax receivable agreement [30] - Management announced leadership changes, with Ken Cornick stepping down from operational roles and Michael Barkin appointed as President [19][20] Q&A Session Summary Question: Can you review the guidance for Q1 bookings? - Management indicated that Q1 bookings guidance implies around 13% year-over-year growth, with January being seasonally slow for travel [41][42] Question: What is the mix in net adds for the quarter? - The trial count as a percentage of total Active CLEAR Plus members was down slightly year-over-year, impacting Q1 [48] Question: How is the relationship with Amex affecting bookings and EBITDA? - Management noted that while the partnership with Amex is valuable for brand awareness, the gap between wholesale and retail pricing is significant, impacting bookings and EBITDA [50][51] Question: What are the trends in air travel and independent locations? - Management remains bullish on travel trends, expecting continued growth and positive cash flow from independent locations [81][84] Question: What are the pricing opportunities for the upcoming fiscal year? - Management sees opportunities to charge for previously free tiers and is focused on gross dollar retention [86]