Accessibility Statement Skip Navigation
  • Resources
  • Blog
  • Journalists
  • +44 (0)20 7454 5110
  • Client Login
  • Send a Release
Return to PR Newswire homepage
  • News
  • Products
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All Public Company News
      • All Multimedia News
      • View All News Releases

      • Regulatory News

      • D/A/CH Regulatory News
      • UK Regulatory News
      • View All Regulatory News

  • Business & Money
      • Auto & Transportation

      • Aerospace & Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads & Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking & Road Transportation
      • View All Auto & Transportation

      • Business Technology

      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • View All Business Technology

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film & Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Financial Services & Investing

      • Accounting News & Issues
      • Acquisitions, Mergers & Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalisation
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • View All Financial Services & Investing

      • General Business

      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls & Research
      • Trade Show News
      • View All General Business

  • Science & Tech
      • Consumer Technology

      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • View All Consumer Technology

      • Energy & Natural Resources

      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil & Gas Discoveries
      • Utilities
      • Water Utilities
      • View All Energy & Natural Resources

      • Environ­ment

      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • Aerospace & Defence
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation & Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking & Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • Carriers & Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • Animals & Pets
      • Beers, Wines & Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics & Personal Care
      • Fashion
      • Food & Beverages
      • Furniture & Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewellery
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film & Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Health

      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • View All Health

      • Sports

      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • View All Sports

      • Travel

      • Amusement Parks & Tourist Attractions
      • Gambling & Casinos
      • Hotels & Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • Animal Welfare
      • Corporate Social Responsibility
      • Economic News, Trends & Analysis
      • Education
      • Environmental
      • European Government
      • Labour & Union
      • Natural Disasters
      • Not For Profit
      • Public Safety
      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • View All People & Culture

  • Overview
  • Distribution
  • Paid Placement
  • Multichannel Amplification
  • Disclosure Services
  • SocialBoost
  • Rooms
    • MediaRoom
    • ESG Rooms
  • AI Tools
  • General Enquiries
  • Media Enquiries
  • Partnerships
  • Hamburger menu
  • Cision PR Newswire UK provides press release distribution, targeting, monitoring, and marketing services
  • Send a Release
    • Phone

    • +44 (0)20 7454 5110 from 8 AM - 5:30 PM GMT

    • ALL CONTACT INFO
    • Contact Us

      +44 (0)20 7454 5110
      from 8 AM - 5:30 PM GMT

  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists
  • News in Focus
    • Browse News Releases
    • Regulatory News
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
    • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists
  • Overview
  • Distribution
  • Paid Placement
  • Multichannel Amplification
  • Disclosure Services
  • Cision Communications Cloud®
  • AI Tools
  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists
  • General Enquiries
  • Media Enquiries
  • Partnerships
  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists

Clarivate Reports First Quarter 2024 Results

This image opens in the lightbox

News provided by

Clarivate Plc

08 May, 2024, 10:00 GMT

Share this article

Share toX

Share this article

Share toX

— Reaffirms 2024 Outlook —

LONDON, May 8, 2024 /PRNewswire/ -- Clarivate Plc (NYSE: CLVT) (the "Company" or "Clarivate"), a leading global provider of transformative intelligence, today reported results for the first quarter ended March 31, 2024.

First Quarter 2024 Financial Highlights

  • Revenues of $621.2 million decreased 1.3%
  • Organic revenues decreased 1.7%, as an increase in subscription revenues of 2.4% was more than offset by a decrease in transactional and other revenues of 11.4% and re-occurring revenues of 5.1%
  • Net loss attributable to ordinary shares of $93.8 million; Net loss per diluted share of $0.14
  • Adjusted net income(1) of $103.5 million decreased 20.9%; Adjusted diluted EPS(1) of $0.14 decreased 22.2% or $0.04
  • Adjusted EBITDA(1) of $236.3 million decreased 6.5%; Adjusted EBITDA margin(1) of 38.0% decreased 220 basis points primarily due to lower revenues
  • Net cash provided by operating activities of $176.2 million decreased $51.3 million; Free cash flow(1) of $111.8 million decreased $56.4 million primarily due to the timing of working capital

"We are making great progress this year on key objectives including product investments and operational initiatives to drive future organic revenue growth," said Jonathan Gear, Chief Executive Officer. "Our Intellectual Property segment refined its go-to-market operating model and revived patent intelligence solutions, which is resulting in commercial success across our software solutions, particularly IPFolio, and improved Derwent renewal rates. We released a new real-world data framework in the Life Sciences & Healthcare segment and were awarded deals with two top-10 global pharmaceutical clients. Additionally, we recently acquired two startup companies, MotionHall and Global QMS, Inc. which will enhance our portfolio and expertise in the LS&H segment. We continue to make the necessary improvements to revitalize Clarivate and drive enhanced value for clients, colleagues, and shareholders."

Selected Financial Information


Three Months Ended
March 31,


Change

(In millions, except percentages and per share data), (unaudited)

2024


2023


$


%

Revenues

$      621.2


$     629.1


$        (7.9)


(1.3) %









Net income (loss) attributable to ordinary shares

$      (93.8)


$       24.7


$    (118.5)


N/M

Net income (loss) per share, diluted

$      (0.14)


$       0.04


$      (0.18)


N/M

Weighted-average ordinary shares (diluted)

666.9


679.3


(12.4)


(1.8) %

Adjusted EBITDA(1)

$      236.3


$     252.7


$      (16.4)


(6.5) %









Adjusted net income(1)

$      103.5


$     130.9


$      (27.4)


(20.9) %

Adjusted diluted EPS(1)(2)

$        0.14


$       0.18


$      (0.04)


(22.2) %

Adjusted weighted-average ordinary shares (diluted)(1)

727.6


734.7


(7.0)


(1.0) %

Net cash provided by operating activities

$      176.2


$     227.5


$      (51.3)


(22.5) %

Free cash flow(1)

$      111.8


$     168.2


$      (56.4)


(33.5) %

First Quarter 2024 Commentary

Revenues for the first quarter decreased $7.9 million, or 1.3%, to $621.2 million. Organic revenues decreased $10.5 million or 1.7%.

Subscription revenues for the first quarter increased $9.9 million, or 2.5%, to $403.1 million. Organic subscription revenues increased 2.4%, driven by price increases.

Re-occurring revenues for the first quarter decreased $5.2 million, or 4.8%, to $102.5 million. Organic re-occurring revenues decreased 5.1%, primarily due to lower IP patent renewal volumes.

Transactional and other revenues for the first quarter decreased $12.6 million, or 9.8%, to $115.6 million. Organic transactional and other revenues decreased 11.4%, due to lower A&G volumes and LS&H real world data sales.

Balance Sheet and Cash Flow

As of March 31, 2024, cash and cash equivalents of $361.8 million decreased $8.9 million compared to December 31, 2023.

The Company's total debt outstanding as of March 31, 2024 was $4,722.6 million, a decrease of $47.7 million compared to December 31, 2023, driven by an accelerated debt repayment.

Net cash provided by operating activities of $176.2 million for the three months ended March 31, 2024 decreased $51.3 million compared to $227.5 million for the prior year period, primarily due to timing differences in working capital. Free cash flow(1) for the three months ended March 31, 2024, was $111.8 million, a decrease of $56.4 million compared to the prior year period.

Reaffirmed Outlook for 2024 (forward-looking statement)

"With first quarter results in line with our expectations, we reaffirm our 2024 full year outlook," said Jonathan Collins, Executive Vice President and Chief Financial Officer. "Currently, we anticipate a sequential improvement in organic revenue growth in the second quarter compared to the first quarter. For the full year, we continue to expect to deliver improved growth across our three segments driven by the benefit of product investments and modestly improving market conditions."

The full year outlook presented below assumes no further acquisitions, divestitures, or unanticipated events.


2024 Outlook

Revenues

$2.57B to $2.67B

Organic revenue growth

0% to 2%

Adjusted EBITDA(1)

$1.055B to $1.115B

Adjusted EBITDA margin(1)    

41% to 42%

Adjusted diluted EPS(1)(2)

$0.70 to $0.80

Free cash flow(1)

$420M to $500M

Notes to earnings press release
(1) Non-GAAP measure. Please see "Reconciliations to Certain Non-GAAP Measures" in this earnings release for important disclosures and reconciliations of these financial measures to the most directly comparable GAAP measure. These terms are defined elsewhere in this earnings release.
(2) Adjusted diluted EPS for 2024 is calculated based on approximately 730 million fully diluted weighted average ordinary shares outstanding.
N/M - Represents a change approximately equal or in excess of 100% or not meaningful.

Conference Call and Webcast

Clarivate will host a conference call and webcast today to review the results for the first quarter at 9:00 a.m. Eastern Time. The webcast is open to all interested parties and may include forward-looking information.

The live webcast of the earnings call will be accessible through the investor relations section of the Company's website. To join the webcast please visit https://events.q4inc.com/attendee/319586540.

Interested parties may access the live audio broadcast by dialing +1 404-975-4839 or toll-free +1 833-470-1428 (in North America) and +44 208 068 2558 or toll free +44 808 189 6484 (internationally). The conference ID number is 143104.

A replay of the webcast will also be available on https://ir.clarivate.com beginning two hours after the conclusion of the live call, and will remain available for one year.

Use of Non-GAAP Financial Measures

Non-GAAP results are financial measures that are not prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and are presented only as a supplement to our financial statements based on GAAP. Non-GAAP financial information is provided to enhance the reader's understanding of our financial performance, but none of these non-GAAP financial measures are recognized terms under GAAP. They are not measures of financial condition or liquidity, and should not be considered as an alternative to profit or loss for the period determined in accordance with GAAP or operating cash flows determined in accordance with GAAP. As a result, you should not consider such measures in isolation from, or as a substitute for, financial measures or results of operations calculated or determined in accordance with GAAP.

We use non-GAAP measures in our operational and financial decision-making. We believe that such measures allow us to focus on what we deem to be a more reliable indicator of ongoing operating performance and our ability to generate cash flow from operations, and we also believe that investors may find these non-GAAP financial measures useful for the same reasons. Non-GAAP measures are frequently used by securities analysts, investors, and other interested parties in their evaluation of companies comparable to us, many of which present non-GAAP measures when reporting their results. These measures can be useful in evaluating our performance against our peer companies because we believe the measures provide users with valuable insight into key components of GAAP financial disclosures. However, non-GAAP measures have limitations as analytical tools and because not all companies use identical calculations, our presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies.

Definitions and reconciliations of non-GAAP measures, such as Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, Adjusted diluted EPS, and Free cash flow to the most directly comparable GAAP measures are provided within the schedules attached to this release. Our presentation of non-GAAP measures should not be construed as an inference that our future results will be unaffected by any of the adjusted items, or that any projections and estimates will be realized in their entirety or at all.

Forward-Looking Statements

This communication includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions, or projections regarding future events or future results and therefore are, or may be deemed to be, "forward-looking statements" within the meaning of the "safe harbor provisions" of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms "believes," "estimates," "anticipates," "expects," "seeks," "projects," "intends," "plans," "may," "will," or "should" or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts, and include statements regarding our intentions, beliefs, or current expectations concerning, among other things, anticipated cost savings, results of operations, financial condition, liquidity, prospects, growth, strategies, and the markets in which we operate. Such forward-looking statements are based on available current market material and management's expectations, beliefs, and forecasts concerning future events impacting us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks and uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in Item 1A. Risk Factors of our annual report on Form 10-K. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Please consult our public filings with the SEC or on our website at www.clarivate.com.

About Clarivate

Clarivate™ is a leading global provider of transformative intelligence. We offer enriched data, insights & analytics, workflow solutions and expert services in the areas of Academia & Government, Intellectual Property and Life Sciences & Healthcare. For more information, please visit www.clarivate.com.

Condensed Consolidated Balance Sheets (Unaudited)


(In millions)

March 31, 2024


December 31, 2023

ASSETS




Current assets:




Cash and cash equivalents, including restricted cash

$                      361.8


$                   370.7

Accounts receivable, net

822.9


908.3

Prepaid expenses

100.0


88.5

Other current assets

67.9


68.0

Assets held for sale

38.2


26.7

Total current assets

1,390.8


1,462.2

Property and equipment, net

49.2


51.6

Other intangible assets, net

8,874.2


9,006.6

Goodwill

2,023.4


2,023.7

Other non-current assets

68.5


60.8

Deferred income taxes

46.6


46.7

Operating lease right-of-use assets

52.0


55.2

Total assets

$                 12,504.7


$              12,706.8

LIABILITIES AND SHAREHOLDERS' EQUITY




Current liabilities:




Accounts payable

$                      102.7


$                   144.1

Accrued compensation

85.8


126.5

Accrued expenses and other current liabilities

365.1


315.2

Current portion of deferred revenues

1,010.1


983.1

Current portion of operating lease liability

24.3


24.4

Liabilities held for sale

26.8


6.7

Total current liabilities

1,614.8


1,600.0

Long-term debt

4,637.9


4,721.1

Non-current portion of deferred revenues

17.7


38.7

Other non-current liabilities

41.7


41.9

Deferred income taxes

246.2


249.6

Operating lease liabilities

58.0


63.2

Total liabilities

6,616.3


6,714.5

Commitments and contingencies




Shareholders' equity:




Preferred Shares, no par value; 14.4 shares authorized; 5.25% Mandatory Convertible Preferred Shares, Series A, 14.4 shares issued and outstanding as of both March 31, 2024 and December 31, 2023

1,392.6


1,392.6

Ordinary Shares, no par value; unlimited shares authorized; 668.2(1) and 666.1 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively

11,747.4


11,740.5

Accumulated other comprehensive loss

(512.3)


(495.3)

Accumulated deficit

(6,739.3)


(6,645.5)

Total shareholders' equity

5,888.4


5,992.3

Total liabilities and shareholders' equity

$                 12,504.7


$              12,706.8

(1) Refer to the Condensed Consolidated Statements of Changes in Equity within the 10-Q.

Condensed Consolidated Statements of Operations (Unaudited)



Three Months Ended March 31,

(In millions, except per share data)

2024


2023

Revenues

$                      621.2


$                      629.1

Operating expenses:




Cost of revenues

217.8


229.7

Selling, general and administrative costs

191.9


194.8

Depreciation and amortization

179.4


172.6

Restructuring

9.5


9.4

Other operating expense (income), net

17.6


(32.0)

Total operating expenses

616.2


574.5

Income (loss) from operations

5.0


54.6

Fair value adjustment of warrants

(5.2)


1.1

Interest expense, net

70.2


73.6

Income (loss) before income taxes

(60.0)


(20.1)

Provision (benefit) for income taxes

15.0


(63.6)

Net income (loss)

(75.0)


43.5

Dividends on preferred shares

18.8


18.8

Net income (loss) attributable to ordinary shares

$                      (93.8)


$                        24.7





Per share:




Basic

$                      (0.14)


$                        0.04

Diluted

$                      (0.14)


$                        0.04





Weighted average shares used to compute earnings per share:




Basic

666.9


674.8

Diluted

666.9


679.3

Condensed Consolidated Statements of Cash Flows (Unaudited)



Three Months Ended March 31,

(In millions)

2024


2023

Cash Flows From Operating Activities




Net income (loss)

$                     (75.0)


$                       43.5

Adjustments to reconcile net income (loss) to net cash provided by operating activities:




Depreciation and amortization

179.4


172.6

Share-based compensation

14.9


40.7

Gain on legal settlement

—


(49.4)

Amortization of debt issuance costs

4.7


5.1

Other operating activities

10.1


9.7

Changes in operating assets and liabilities:




Accounts receivable

74.8


42.3

Prepaid expenses

(11.8)


(21.7)

Other assets

(3.0)


13.7

Accounts payable

(37.3)


(0.1)

Accrued expenses and other current liabilities

(10.0)


(33.0)

Deferred revenues

31.0


85.5

Operating leases, net

(1.8)


(2.0)

Other liabilities

0.2


(79.4)

Net cash provided by operating activities

176.2


227.5

Cash Flows From Investing Activities




Capital expenditures

(64.4)


(59.3)

Payments for acquisitions

—


(1.1)

Net cash provided by (used for) investing activities

(64.4)


(60.4)

Cash Flows From Financing Activities




Principal payments on term loan

(47.4)


(125.0)

Payment of debt issuance costs and discounts

(20.0)


—

Cash dividends on preferred shares

(18.9)


(18.9)

Payments related to finance lease

(0.3)


(0.2)

Payments related to tax withholding for stock-based compensation

(8.6)


(7.5)

Net cash provided by (used for) financing activities

(95.2)


(151.6)

Effects of exchange rates

(6.3)


2.0

Net change in cash and cash equivalents, including restricted cash

$                       10.3


$                       17.5

Cash and cash equivalents, including restricted cash, beginning of period

370.7


356.8

Cash and cash equivalents, including restricted cash, end of period(1)

$                     381.0


$                     374.3

(1) Includes $19.2 of cash that was reclassified to current assets held for sale in the Condensed Consolidated Balance Sheet as of March 31, 2024.

Supplemental Revenues Information

Annualized contract value ("ACV") represents the annualized value for the next 12 months of subscription-based client license agreements, assuming that all expiring license agreements during that period are renewed at their current price level. Our ACV was $1,583.3 and $1,555.2 as of March 31, 2024 and 2023, respectively, which corresponds to an increase of 1.8%. The increase in ACV was primarily due to the impact of price increases.

The following tables present our revenues by type and by segment for the periods indicated, as well as the drivers of the variances between periods, including as a percentage of such revenues.


Three Months Ended
March 31,


Change


Percentage of Change

(In millions, except percentages); (unaudited)

2024


2023


$

%


Acquisitions

Disposals

FX
Impact

Organic

Subscription revenues

$       403.1


$      393.2


$           9.9

2.5 %


0.1 %

— %

— %

2.4 %

Re-occurring revenues

102.5


107.7


(5.2)

(4.8) %


— %

— %

0.3 %

(5.1) %

Transactional and other revenues

115.6


128.2


(12.6)

(9.8) %


0.1 %

0.9 %

0.6 %

(11.4) %

Revenues

$       621.2


$      629.1


$         (7.9)

(1.3) %


— %

0.2 %

0.2 %

(1.7) %




Three Months Ended
March 31,


Change


Percentage of Change

(In millions, except percentages); (unaudited)

2024


2023


$

%


Acquisitions

Disposals

FX
Impact

Organic

Academia & Government

$       317.7


$      314.7


$           3.0

1.0 %


— %

— %

0.4 %

0.6 %

Intellectual Property

200.9


209.1


(8.2)

(3.9) %


— %

0.5 %

0.1 %

(4.5) %

Life Sciences & Healthcare

102.6


105.3


(2.7)

(2.6) %


0.3 %

— %

(0.1) %

(2.8) %

Revenues

$       621.2


$      629.1


$         (7.9)

(1.3) %


— %

0.2 %

0.2 %

(1.7) %

Reconciliations to Certain Non-GAAP Measures

Adjusted EBITDA and Adjusted EBITDA margin

Adjusted EBITDA represents Net income (loss) before the Provision (benefit) for income taxes, Depreciation and amortization, and Interest expense, net, adjusted to exclude acquisition and/or disposal-related transaction costs, share-based compensation, mandatory convertible preferred share ("MCPS") dividend expense, unrealized foreign currency gains/losses, restructuring expenses, non-operating income and/or expense, the impact of certain non-cash fair value adjustments on financial instruments, legal settlements, impairments, and other items that are included in Net income (loss) for the period that we do not consider indicative of our ongoing operating performance. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by Revenues.

The following table presents our calculation of Adjusted EBITDA and Adjusted EBITDA margin for the three months ended March 31, 2024 and 2023 and reconciles these non-GAAP measures to our Net income (loss) for the same periods:


Three Months Ended March 31,

(In millions, except percentages); (unaudited)

2024


2023

Net income (loss) attributable to ordinary shares

$                (93.8)


$                  24.7

Dividends on preferred shares

18.8


18.8

Net income (loss)

(75.0)


43.5

Provision (benefit) for income taxes

15.0


(63.6)

Depreciation and amortization

179.4


172.6

Interest expense, net

70.2


73.6

Transaction related costs

4.4


1.7

Share-based compensation expense

15.4


41.2

Restructuring

9.5


9.4

Fair value adjustment of warrants

(5.2)


1.1

Other(1)

22.6


(26.8)

Adjusted EBITDA

$                236.3


$                252.7

Adjusted EBITDA margin

38.0 %


40.2 %


(1) Primarily reflects the net impact of foreign exchange gains and losses related to the remeasurement of balances and other items that do not reflect our ongoing operating performance. The three months ended March 31, 2024 also includes a $15.8 loss on a small divestiture. The three months ended March 31, 2023 also includes a $49.4 gain on legal settlement.

Adjusted net income and Adjusted diluted EPS

Adjusted net income is calculated using Net income (loss), adjusted to exclude acquisition and/or disposal-related transaction costs (such costs include net income from continuing operations before the provision for income taxes, depreciation and amortization, and interest income and expense from the divested business), amortization related to acquired intangible assets, share-based compensation, MCPS dividend expense, unrealized foreign currency gains/losses, restructuring expenses, the impact of certain non-cash fair value adjustments on financial instruments, legal settlements, impairments, and other items that are included in net income (loss) for the period that we do not consider indicative of our ongoing operating performance and the income tax impact of any adjustments.

Adjusted diluted EPS is calculated by dividing Adjusted net income by Adjusted diluted weighted average shares for the period. The Adjusted diluted weighted average shares assumes that all instruments in the calculation are dilutive.

The following table presents our calculation of Adjusted net income and Adjusted diluted EPS for the three months ended March 31, 2024 and 2023 and reconciles these non-GAAP measures to our Net income (loss) and diluted EPS for the same periods:


Three Months Ended March 31,


2024


2023

(In millions, except per share amounts); (unaudited)

Amount


Per Share


Amount


Per Share

Net income (loss) attributable to ordinary shares

(93.8)


(0.14)


24.7


0.04

Dividends on preferred shares

18.8


0.03


18.8


0.03

Net income (loss) and EPS

(75.0)


(0.11)


43.5


0.06

Transaction related costs

4.4


0.01


1.7


—

Share-based compensation expense

15.4


0.02


41.2


0.06

Amortization related to acquired intangible assets

138.5


0.21


144.4


0.21

Restructuring

9.5


0.01


9.4


0.01

Fair value adjustment of warrants

(5.2)


(0.01)


1.1


—

Other(1)

22.6


0.02


(26.8)


(0.04)

Income tax impact of related adjustments

(6.7)


(0.01)


(83.6)


(0.12)

Adjusted net income and Adjusted diluted EPS

$              103.5


$                 0.14


$              130.9


$                0.18

Adjusted weighted-average ordinary shares (diluted)

727.6


734.7

(1) Primarily reflects the net impact of foreign exchange gains and losses related to the remeasurement of balances and other items that do not reflect our ongoing operating performance. The three months ended March 31, 2024 also includes a $15.8 loss on a small divestiture. The three months ended March 31, 2023 also includes a $49.4 gain on legal settlement.

Free cash flow

Free cash flow is calculated using Net cash provided by operating activities less Capital expenditures. The following table reconciles this non-GAAP measure to Net cash provided by operating activities:


Three Months Ended March 31,

(In millions); (unaudited)

2024


2023

Net cash provided by operating activities

$                    176.2


$                    227.5

Capital expenditures

(64.4)


(59.3)

Free cash flow

$                    111.8


$                    168.2

Reconciliations to Certain Non-GAAP Measures - 2024 Outlook

Adjusted EBITDA and Adjusted EBITDA margin

The following table presents our calculation of Adjusted EBITDA and Adjusted EBITDA margin for the 2024 outlook and reconciles these non-GAAP measures to our Net income (loss) for the same period:


Year Ending December 31, 2024
(Forecasted)

(In millions); (unaudited)

Low


High

Net income (loss) attributable to ordinary shares

$                 (160)


$                 (100)

Dividends on preferred shares(1)

35


35

Net income (loss)

(125)


(65)

Provision (benefit) for income taxes

60


60

Depreciation and amortization

720


720

Interest expense, net

280


280

Restructuring(2)

10


10

Transaction related costs

15


15

Fair value adjustment of warrants

(5)


(5)

Share-based compensation expense

80


80

Other

20


20

Adjusted EBITDA

$                1,055


$                1,115

Adjusted EBITDA margin

41 %


42 %

(1) Dividends on our MCPS are payable quarterly at an annual rate of 5.25% of the liquidation preference of $100 per share. For the purposes of calculating net loss attributable to Clarivate, we have excluded the accrued and anticipated MCPS dividends.

(2) Reflects restructuring costs expected to be incurred in 2024 associated with the Segment Optimization restructuring program.

Adjusted diluted EPS

The following table presents our calculation of Adjusted diluted EPS for the 2024 outlook and reconciles this non-GAAP measure to our per share Net income (loss) for the same period:


Year Ending December 31, 2024

(Forecasted)


Low


High

(Unaudited)

Per Share


Per Share

Net income (loss) attributable to ordinary shares

$                    (0.24)


$                    (0.14)

Dividends on preferred shares(1)

0.05


0.05

Net income (loss)

(0.19)


(0.09)

Restructuring(2)

0.01


0.01

Transaction related costs

0.02


0.02

Share-based compensation expense

0.11


0.11

Amortization related to acquired intangible assets

0.75


0.75

Mark to market adjustment on financial instruments

(0.01)


(0.01)

Other

0.05


0.05

Income tax impact of related adjustments

(0.04)


(0.04)

Adjusted diluted EPS

$                      0.70


$                      0.80

Adjusted weighted-average ordinary shares (diluted)(3)

730 million

(1-2) Refer to associated line item descriptions provided for the Adjusted EBITDA outlook reconciliation table above.

(3) For the purposes of calculating Adjusted diluted EPS, we have excluded the accrued and anticipated MCPS dividends and assumed the "if-converted" method of share dilution.

Free cash flow

The following table presents our calculation of Free cash flow for the 2024 outlook and reconciles this non-GAAP measure to our Net cash provided by operating activities for the same period:


Year Ending December 31, 2024

(Forecasted)

(In millions); (unaudited)

Low


High

Net cash provided by operating activities

$                       685


$                       765

Capital expenditures

(265)


(265)

Free cash flow

$                       420


$                       500

Logo - https://mma.prnewswire.com/media/1159266/Clarivate_Logo.jpg

Modal title

Also from this source

Clarivate Unveils the 2025 Journal Citation Reports

Clarivate Unveils the 2025 Journal Citation Reports

Clarivate Plc (NYSE:CLVT), a leading global provider of transformative intelligence, today released the 2025 update to the Journal Citation Reports...

Clarivate Identifies Radioligand Therapy Innovators as Companies to Watch in the Future of Precision Oncology

Clarivate Identifies Radioligand Therapy Innovators as Companies to Watch in the Future of Precision Oncology

Clarivate Plc (NYSE:CLVT), a leading global provider of transformative intelligence, today announced the release of a new Companies to Watch report,...

More Releases From This Source

Explore

Computer & Electronics

Computer & Electronics

Computer Software

Computer Software

Computer Software

Computer Software

Earnings

Earnings

News Releases in Similar Topics

Contact PR Newswire

  • +44 (0)20 7454 5110
    from 8 AM - 5:30 PM GMT
  • General Enquiries
  • Media Enquiries
  • Partnerships

Products

  • Content Distribution
  • Multimedia Services
  • Disclosure Services
  • Cision Communications Cloud®

About

  • About PR Newswire
  • About Cision
  • Partnering Opportunities
  • Careers
  • Accessibility Statement
  • APAC
  • APAC - Simplified Chinese
  • APAC - Traditional Chinese
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Indonesia
  • Israel
  • Japan
  • Korea
  • Mexico
  • Middle East
  • Middle East - Arabic
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United States
  • Vietnam

My Services

  • All News Releases
  • Customer Portal
  • Resources
  • Blog
  • Journalists
  • Data Privacy

Do not sell or share my personal information:

  • Submit via Privacy@cision.com 
  • Call Privacy toll-free: 877-297-8921

Contact PR Newswire

Products

About

My Services
  • All News Releases
  • Customer Portal
  • Resources
  • Blog
  • Journalists
+44 (0)20 7454 5110
from 8 AM - 5:30 PM GMT
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2025 PR Newswire Europe Limited. All Rights Reserved. A Cision company.