Clarivate Reports Fourth Quarter and Full Year 2024 Results
Clarivate (NYSE: CLVT) reported Q4 2024 results with total revenue of $663.0 million, down 3.0% from Q4 2023, with organic revenues declining 0.7%. The company posted a Q4 net loss of $191.8 million ($0.27 per share), improving from a loss of $843.9 million in Q4 2023.
For full-year 2024, revenue was $2.56 billion, down 2.7% from 2023, with organic revenues decreasing 1.4%. The company generated $357.5 million in free cash flow and executed $200 million in share repurchases and $198.1 million in debt pre-payment. The board authorized a new $500 million share repurchase program for 2025-2026.
Looking ahead to 2025, Clarivate expects revenues between $2.28B-$2.40B, with recurring organic revenue growth between -1.0% to 1.0%. The company has initiated a strategic review, including potential divestitures, and plans to discontinue certain low-margin transactional products in 2025-2026.
Clarivate (NYSE: CLVT) ha riportato i risultati del quarto trimestre 2024 con un fatturato totale di 663,0 milioni di dollari, in calo del 3,0% rispetto al quarto trimestre 2023, con ricavi organici in diminuzione dello 0,7%. L'azienda ha registrato una perdita netta di 191,8 milioni di dollari ($0,27 per azione), migliorando rispetto a una perdita di 843,9 milioni di dollari nel quarto trimestre 2023.
Per l'intero anno 2024, il fatturato è stato di 2,56 miliardi di dollari, in calo del 2,7% rispetto al 2023, con ricavi organici in diminuzione dell'1,4%. L'azienda ha generato 357,5 milioni di dollari di flusso di cassa libero e ha eseguito riacquisti di azioni per 200 milioni di dollari e un pagamento anticipato del debito di 198,1 milioni di dollari. Il consiglio ha autorizzato un nuovo programma di riacquisto di azioni da 500 milioni di dollari per il 2025-2026.
Guardando al 2025, Clarivate prevede ricavi tra 2,28 miliardi e 2,40 miliardi di dollari, con una crescita dei ricavi organici ricorrenti compresa tra -1,0% e 1,0%. L'azienda ha avviato una revisione strategica, compresi potenziali disinvestimenti, e prevede di interrompere alcuni prodotti transazionali a basso margine nel 2025-2026.
Clarivate (NYSE: CLVT) informó los resultados del cuarto trimestre de 2024 con ingresos totales de 663,0 millones de dólares, una disminución del 3,0% en comparación con el cuarto trimestre de 2023, con ingresos orgánicos que cayeron un 0,7%. La compañía reportó una pérdida neta de 191,8 millones de dólares ($0,27 por acción), mejorando respecto a una pérdida de 843,9 millones de dólares en el cuarto trimestre de 2023.
Para el año completo 2024, los ingresos fueron de 2,56 mil millones de dólares, una disminución del 2,7% en comparación con 2023, con ingresos orgánicos en disminución del 1,4%. La empresa generó 357,5 millones de dólares en flujo de caja libre y ejecutó recompra de acciones por 200 millones de dólares y un prepago de deuda de 198,1 millones de dólares. La junta autorizó un nuevo programa de recompra de acciones de 500 millones de dólares para 2025-2026.
Mirando hacia 2025, Clarivate espera ingresos entre 2,28 mil millones y 2,40 mil millones de dólares, con un crecimiento de ingresos orgánicos recurrentes entre -1,0% y 1,0%. La compañía ha iniciado una revisión estratégica, incluyendo posibles desinversiones, y planea descontinuar ciertos productos transaccionales de bajo margen en 2025-2026.
Clarivate (NYSE: CLVT)는 2024년 4분기 결과를 보고하며 총 수익이 6억 6,300만 달러로, 2023년 4분기 대비 3.0% 감소했으며, 유기적 수익은 0.7% 감소했습니다. 회사는 4분기 순손실이 1억 9,180만 달러($0.27 per 주식)로, 2023년 4분기 8억 4,390만 달러의 손실에서 개선되었습니다.
2024년 전체 수익은 25억 6천만 달러로, 2023년 대비 2.7% 감소했으며, 유기적 수익은 1.4% 감소했습니다. 회사는 3억 5,750만 달러의 자유 현금 흐름을 창출하고 2억 달러의 자사주 매입 및 1억 9,810만 달러의 부채 선지급을 실행했습니다. 이사회는 2025-2026년을 위한 5억 달러의 새로운 자사주 매입 프로그램을 승인했습니다.
2025년을 바라보며, Clarivate는 수익이 22억 8천만 달러에서 24억 달러 사이가 될 것으로 예상하며, 반복적인 유기적 수익 성장률은 -1.0%에서 1.0% 사이가 될 것으로 보입니다. 회사는 전략적 검토를 시작했으며, 잠재적인 자산 매각을 포함하고, 2025-2026년에 일부 저마진 거래 제품을 중단할 계획입니다.
Clarivate (NYSE: CLVT) a annoncé les résultats du quatrième trimestre 2024 avec un chiffre d'affaires total de 663,0 millions de dollars, en baisse de 3,0% par rapport au quatrième trimestre 2023, les revenus organiques ayant diminué de 0,7%. La société a enregistré une perte nette de 191,8 millions de dollars (0,27 $ par action), s'améliorant par rapport à une perte de 843,9 millions de dollars au quatrième trimestre 2023.
Pour l'année entière 2024, le chiffre d'affaires s'élevait à 2,56 milliards de dollars, en baisse de 2,7% par rapport à 2023, avec des revenus organiques en baisse de 1,4%. L'entreprise a généré 357,5 millions de dollars de flux de trésorerie libre et a effectué des rachats d'actions de 200 millions de dollars ainsi qu'un remboursement anticipé de la dette de 198,1 millions de dollars. Le conseil d'administration a autorisé un nouveau programme de rachat d'actions de 500 millions de dollars pour 2025-2026.
En regardant vers 2025, Clarivate s'attend à des revenus compris entre 2,28 milliards et 2,40 milliards de dollars, avec une croissance des revenus organiques récurrents comprise entre -1,0% et 1,0%. L'entreprise a lancé un examen stratégique, y compris des cessions potentielles, et prévoit de cesser certains produits transactionnels à faible marge en 2025-2026.
Clarivate (NYSE: CLVT) hat die Ergebnisse für das vierte Quartal 2024 veröffentlicht, mit einem Gesamtumsatz von 663,0 Millionen Dollar, was einem Rückgang von 3,0% im Vergleich zum vierten Quartal 2023 entspricht, während die organischen Umsätze um 0,7% gesunken sind. Das Unternehmen verzeichnete im vierten Quartal einen Nettoverlust von 191,8 Millionen Dollar (0,27 Dollar pro Aktie), was eine Verbesserung im Vergleich zu einem Verlust von 843,9 Millionen Dollar im vierten Quartal 2023 darstellt.
Für das gesamte Jahr 2024 betrug der Umsatz 2,56 Milliarden Dollar, was einem Rückgang von 2,7% im Vergleich zu 2023 entspricht, wobei die organischen Umsätze um 1,4% gesunken sind. Das Unternehmen generierte einen freien Cashflow von 357,5 Millionen Dollar und führte Aktienrückkäufe in Höhe von 200 Millionen Dollar sowie eine vorzeitige Rückzahlung von Schulden in Höhe von 198,1 Millionen Dollar durch. Der Vorstand genehmigte ein neues Aktienrückkaufprogramm über 500 Millionen Dollar für 2025-2026.
Im Hinblick auf 2025 erwartet Clarivate Umsätze zwischen 2,28 Milliarden und 2,40 Milliarden Dollar, mit einem wiederkehrenden organischen Umsatzwachstum zwischen -1,0% und 1,0%. Das Unternehmen hat eine strategische Überprüfung eingeleitet, einschließlich potenzieller Veräußern, und plant, bestimmte Produkte mit niedrigen Margen im Jahr 2025-2026 einzustellen.
- Net loss improved significantly from $843.9M in Q4 2023 to $191.8M in Q4 2024
- Board authorized new $500M share repurchase program for 2025-2026
- Completed $200M share repurchase and $198.1M debt pre-payment in 2024
- Strategic review initiated including potential divestitures to maximize shareholder value
- Q4 2024 revenue declined 3.0% to $663.0M year-over-year
- Full-year 2024 organic revenues decreased 1.4%
- Free cash flow decreased 28.7% to $357.5M in 2024
- Adjusted EBITDA declined 5.1% to $1,060.4M in 2024
- 2025 guidance suggests continued revenue decline
Insights
The Q4 and FY2024 results reveal a company in strategic transition, facing both challenges and opportunities. The
Three critical developments warrant attention: First, the company's aggressive debt management, having pre-paid
Most significantly, the strategic alternatives review, including potential divestitures, suggests a comprehensive portfolio optimization effort. This coincides with the company's Value Creation Plan (VCP), which includes AI-powered product enhancements and new subscription-based solutions. The transition away from low-margin transactional products, while causing near-term revenue pressure, should lead to improved predictability and potentially higher quality earnings.
The 2025 outlook, projecting revenues of
The company's investment in AI capabilities and product innovation, particularly in ProQuest e-Books and DRG Fusion, positions it well for future growth in the digital intelligence market. However, the execution of this transformation will be crucial, as evidenced by the current pressure on free cash flow, which declined to
— Accelerates transition from transactional to subscription and re-occurring revenue —
— Launches new product innovation for Academia & Government and Life Sciences & Healthcare —
— Repurchased
— Initiates review of strategic alternatives including potential divestitures —
— Provides 2025 Outlook —
Total revenue for the fourth quarter of 2024 was
Net loss for the fourth quarter of 2024 was
Total revenue for the full year of 2024 was
Net loss for the full year of 2024 was
Clarivate generated
"We are committed to reinvigorating our business to deliver healthy organic growth and build for the future," said Matti Shem Tov, Chief Executive Officer. "Last year we released a string of AI-powered product enhancements, and as part of our Value Creation Plan (VCP), we recently launched new subscription-based solutions including ProQuest e-Books, ProQuest Digital Collections and DRG Fusion. We are focused on driving subscription and re-occurring revenue growth and plan to discontinue sales of certain low-margin transactional products in 2025 and 2026, which will improve our revenue predictability."
Mr. Shem Tov continued: "Under our VCP initiatives, we are improving our sales execution by enhancing key leadership roles, realigning account management models around specialist areas, and investing in customer success teams. We are harnessing the power of technology and AI to accelerate product innovation and drive development velocity through customer collaboration. We believe the steps we are taking will improve our financial performance and operational efficiency."
Selected Financial Information
Three Months Ended | Change | Year Ended December 31, | Change | ||||||||||||
(in millions, except percentages and per | 2024 | 2023 | $ | % | 2024 | 2023 | $ | % | |||||||
Revenues | $ 663.0 | $ 683.7 | $ (20.7) | (3.0) % | $ 2,556.7 | $ 2,628.8 | $ (72.1) | (2.7) % | |||||||
Net income (loss) | $ (191.8) | $ (843.9) | $ 652.1 | 77.3 % | $ (636.7) | $ (911.2) | $ 274.5 | 30.1 % | |||||||
Adjusted net income(1) | $ 145.5 | $ 163.4 | $ (17.9) | (11.0) % | $ 525.3 | $ 599.1 | $ (73.8) | (12.3) % | |||||||
Adjusted EBITDA(1) | $ 285.3 | $ 298.2 | $ (12.9) | (4.3) % | $ 1,060.4 | $ 1,117.2 | $ (56.8) | (5.1) % | |||||||
Diluted EPS | $ (0.27) | $ (1.30) | $ 1.03 | 79.2 % | $ (0.96) | $ (1.47) | $ 0.51 | 34.7 % | |||||||
Adjusted diluted EPS(1) | $ 0.21 | $ 0.23 | $ (0.02) | (8.7) % | $ 0.73 | $ 0.82 | $ (0.09) | (11.0) % | |||||||
Net cash provided by operating | $ 141.3 | $ 190.9 | $ (49.6) | (26.0) % | $ 646.6 | $ 744.2 | $ (97.6) | (13.1) % | |||||||
Free cash flow(1) | $ 59.1 | $ 127.0 | $ (67.9) | (53.5) % | $ 357.5 | $ 501.7 | (28.7) % | ||||||||
Fourth Quarter 2024 Commentary
Revenues for the fourth quarter decreased
Subscription revenues for the fourth quarter decreased
Re-occurring revenues for the fourth quarter decreased
Transactional revenues for the fourth quarter decreased
Full Year 2024 Commentary
Revenues for the full year 2024 decreased
Subscription revenues for the full year 2024 increased
Re-occurring revenues for the full year 2024 decreased
Transactional revenues for the full year 2024 decreased
Balance Sheet and Cash Flow
As of December 31, 2024, cash and cash equivalents of
The Company's total debt outstanding as of December 31, 2024 was
Net cash provided by operating activities of
Review of Strategic Alternatives
Clarivate also announced that it has initiated the exploration of strategic alternatives including potential divestitures. The Company, in consultation with financial and legal advisors, will review and consider a full range of options focused on maximizing shareholder value, including divesting business units or an entire segment.
The Company intends to be diligent and thorough in reviewing its options and completing its review in a timely manner, but does not intend to comment until the process is concluded or it is otherwise determined that further disclosure is necessary or appropriate. There can be no assurance that the review process will result in any transaction or any other strategic change or outcome, or as to the timing of any of the foregoing.
Morgan Stanley & Co. LLC and Moelis & Company LLC are serving as financial advisors to the Company.
Outlook for 2025 (forward-looking statement)
"Our 2025 outlook includes the disposal of specific Academia & Government and Life Sciences & Healthcare transactional products, which are expected to be completed by the end of 2026," said Jonathan Collins, Executive Vice President and Chief Financial Officer. "We currently expect recurring organic revenues (subscription and re-occurring revenues combined) to be flat, at the mid-point in 2025. We will continue to aggressively manage our cost structure and currently expect a balanced approach to capital allocation in 2025."
The full year outlook presented below assumes no further acquisitions, divestitures, or unanticipated events.
2025 Outlook | |
Organic ACV | |
Recurring Organic Revenue Growth | (1.0)% to |
Revenues | |
Adjusted EBITDA(1) | |
Adjusted EBITDA Margin(1) | |
Adjusted Diluted EPS(1)(2) | |
Free Cash Flow(1) |
Notes to press release |
(1) Non-GAAP measure. Please see "Reconciliations to Certain Non-GAAP Measures" in this release for important disclosures and reconciliations of these financial measures to the most directly comparable GAAP measure. These terms are defined elsewhere in this press release. |
(2) Adjusted diluted EPS for 2025 is calculated based on approximately 696 million fully diluted adjusted weighted average ordinary shares outstanding. |
Conference Call and Webcast
Clarivate will host a conference call and webcast today to review the results for the fourth quarter and full year 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/673591630.
Interested parties may access the live audio broadcast.
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
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 under the caption "Risk Factors" in our annual report on Form 10-K, along with our other filings with the
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.
Consolidated Balance Sheets (Unaudited) | |||
As of December 31, | |||
(In millions) | 2024 | 2023 | |
ASSETS | |||
Current assets: | |||
Cash and cash equivalents, including restricted cash | $ 295.2 | $ 370.7 | |
Accounts receivable, net | 798.3 | 908.3 | |
Prepaid expenses | 85.9 | 88.5 | |
Other current assets | 65.2 | 68.0 | |
Assets held for sale | — | 26.7 | |
Total current assets | 1,244.6 | 1,462.2 | |
Property and equipment, net | 53.5 | 51.6 | |
Other intangible assets, net | 8,441.2 | 9,006.6 | |
Goodwill | 1,566.6 | 2,023.7 | |
Other non-current assets | 82.2 | 60.8 | |
Deferred income taxes | 48.5 | 46.7 | |
Operating lease right-of-use assets | 53.6 | 55.2 | |
Total assets | $ 11,490.2 | $ 12,706.8 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 124.5 | $ 144.1 | |
Accrued compensation | 119.2 | 126.5 | |
Accrued expenses and other current liabilities | 310.1 | 315.2 | |
Current portion of deferred revenues | 859.1 | 983.1 | |
Current portion of operating lease liability | 20.6 | 24.4 | |
Liabilities held for sale | — | 6.7 | |
Total current liabilities | 1,433.5 | 1,600.0 | |
Long-term debt | 4,518.7 | 4,721.1 | |
Non-current portion of deferred revenues | 16.6 | 38.7 | |
Other non-current liabilities | 55.9 | 41.9 | |
Deferred income taxes | 273.3 | 249.6 | |
Operating lease liabilities | 53.2 | 63.2 | |
Total liabilities | 6,351.2 | 6,714.5 | |
Commitments and contingencies | |||
Shareholders' equity: | |||
Preferred Shares, no par value; 14.4 shares authorized; | — | 1,392.6 | |
Ordinary Shares, no par value; unlimited shares authorized; 691.4 and 666.1 shares issued and | 12,978.8 | 11,740.5 | |
Accumulated other comprehensive loss | (526.3) | (495.3) | |
Accumulated deficit | (7,313.5) | (6,645.5) | |
Total shareholders' equity | 5,139.0 | 5,992.3 | |
Total liabilities and shareholders' equity | $ 11,490.2 | $ 12,706.8 | |
Consolidated Statements of Operations (Unaudited) | |||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||
(In millions, except per share data) | 2024 | 2023 | 2024 | 2023 | |||
Revenues | $ 663.0 | $ 683.7 | $ 2,556.7 | $ 2,628.8 | |||
Operating expenses: | |||||||
Cost of revenues | 227.7 | 231.6 | 869.2 | 906.4 | |||
Selling, general and administrative costs | 180.8 | 180.4 | 727.6 | 739.7 | |||
Depreciation and amortization | 186.0 | 180.8 | 727.0 | 708.3 | |||
Goodwill and intangible asset impairments | 224.1 | 844.7 | 540.7 | 979.9 | |||
Restructuring and other impairments | 5.4 | 14.7 | 19.6 | 40.0 | |||
Other operating expense (income), net | (98.7) | 19.7 | (51.8) | (10.8) | |||
Total operating expenses | 725.3 | 1,471.9 | 2,832.3 | 3,363.5 | |||
Income (loss) from operations | (62.3) | (788.2) | (275.6) | (734.7) | |||
Fair value adjustment of warrants | — | (1.5) | (5.2) | (15.9) | |||
Interest expense, net | 69.9 | 75.2 | 283.4 | 293.7 | |||
Income (loss) before income taxes | (132.2) | (861.9) | (553.8) | (1,012.5) | |||
Provision (benefit) for income taxes | 59.6 | (18.0) | 82.9 | (101.3) | |||
Net income (loss) | (191.8) | (843.9) | (636.7) | (911.2) | |||
Dividends on preferred shares | — | 19.1 | 31.3 | 75.4 | |||
Net income (loss) attributable to ordinary shares | $ (191.8) | $ (863.0) | $ (668.0) | $ (986.6) | |||
Per share: | |||||||
Basic | $ (0.27) | $ (1.30) | $ (0.96) | $ (1.47) | |||
Diluted | $ (0.27) | $ (1.30) | $ (0.96) | $ (1.47) | |||
Weighted average shares used to compute earnings per | |||||||
Basic | 702.8 | 665.0 | 693.6 | 671.6 | |||
Diluted | 702.8 | 665.0 | 693.6 | 671.6 | |||
Consolidated Statements of Cash Flows (Unaudited) | |||
Year Ended December 31, | |||
(In millions) | 2024 | 2023 | |
Cash Flows From Operating Activities | |||
Net income (loss) | $ (636.7) | $ (911.2) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 727.0 | 708.3 | |
Share-based compensation | 59.9 | 109.0 | |
Restructuring and other impairments, including goodwill | 540.3 | 986.2 | |
Fair value adjustment of warrants | (5.2) | (15.9) | |
Gain on sale from divestitures | (54.7) | — | |
Gain on legal settlement | — | (49.4) | |
Deferred income taxes | 21.2 | (78.4) | |
Amortization of debt issuance costs | 16.4 | 18.2 | |
Other operating activities | 3.3 | 37.8 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 92.6 | (25.5) | |
Prepaid expenses | 1.5 | 1.7 | |
Other assets | (0.8) | 35.1 | |
Accounts payable | (15.0) | 41.2 | |
Accrued expenses and other current liabilities | 3.8 | (44.4) | |
Deferred revenues | (106.2) | 20.3 | |
Operating leases, net | (9.6) | (8.0) | |
Other liabilities | 8.8 | (80.8) | |
Net cash provided by operating activities | 646.6 | 744.2 | |
Cash Flows From Investing Activities | |||
Capital expenditures | (289.1) | (242.5) | |
Payments for acquisitions, net of cash acquired | (32.0) | (5.4) | |
Proceeds from divestitures, net of cash divested | 84.4 | 10.5 | |
Net cash provided by (used for) investing activities | (236.7) | (237.4) | |
Cash Flows From Financing Activities | |||
Principal payments on term loans | (198.1) | (300.0) | |
Repayments of revolving credit facility | — | — | |
Payment of debt issuance costs and discounts | (20.1) | 0.1 | |
Repurchases of ordinary shares | (200.0) | (100.0) | |
Cash dividends on preferred shares | (37.7) | (75.5) | |
Payments related to tax withholding for share-based compensation | (15.6) | (20.6) | |
Other financing activities | 1.4 | (0.5) | |
Net cash provided by (used for) financing activities | (470.1) | (496.5) | |
Effects of exchange rates | (15.3) | 3.6 | |
Net change in cash and cash equivalents, including restricted cash | (75.5) | 13.9 | |
Cash and cash equivalents, including restricted cash, beginning of period | 370.7 | 356.8 | |
Cash and cash equivalents, including restricted cash, end of period | $ 295.2 | $ 370.7 | |
Supplemental Cash Flow Information: | |||
Cash paid for interest | $ 265.3 | $ 273.5 | |
Cash paid for income tax | $ 52.9 | $ 42.9 | |
Supplemental Revenues Information
Annualized contract value ("ACV"), at any point in time, represents the annualized value of all active customer subscription-based license agreements for the next 12 months, assuming those coming up for renewal during the measurement period are renewed at their current price level. Our organic ACV grew
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 | Change | % of Change | ||||||||
2024 | 2023 | $ | % | Acquisitions | Disposals | FX | Organic | |||
Subscription | $ 407.0 | $ 410.8 | $ (3.8) | (0.9) % | 0.2 % | (1.2) % | — % | 0.1 % | ||
Re-occurring | 112.0 | 119.1 | (7.1) | (6.0) % | — % | — % | (0.6) % | (5.4) % | ||
Recurring revenues | $ 519.0 | $ 529.9 | $ (10.9) | (2.1) % | 0.1 % | (0.9) % | (0.2) % | (1.1) % | ||
Transactional | 144.0 | 153.8 | (9.8) | (6.4) % | 0.3 % | (7.3) % | — % | 0.6 % | ||
Revenues | $ 663.0 | $ 683.7 | $ (20.7) | (3.0) % | 0.2 % | (2.4) % | (0.1) % | (0.7) % | ||
Year Ended December 31, | Change | % of Change | ||||||||
2024 | 2023 | $ | % | Acquisitions | Disposals | FX | Organic | |||
Subscription | $ 1,626.8 | $ 1,618.1 | $ 8.7 | 0.5 % | 0.1 % | (0.3) % | (0.2) % | 0.9 % | ||
Re-occurring | 429.8 | 444.6 | (14.8) | (3.3) % | — % | — % | (0.2) % | (3.1) % | ||
Recurring revenues | $ 2,056.6 | $ 2,062.7 | $ (6.1) | (0.3) % | 0.1 % | (0.2) % | (0.3) % | 0.1 % | ||
Transactional | 500.1 | 566.1 | (66.0) | (11.7) % | 0.2 % | (5.3) % | — % | (6.6) % | ||
Revenues | $ 2,556.7 | $ 2,628.8 | $ (72.1) | (2.7) % | 0.1 % | (1.3) % | (0.1) % | (1.4) % | ||
Three Months Ended | Change | % of Change | ||||||||
2024 | 2023 | $ | % | Acquisitions | Disposals | FX | Organic | |||
Academia & Government | $ 342.9 | $ 339.4 | $ 3.5 | 1.0 % | — % | (1.4) % | 0.1 % | 2.3 % | ||
Intellectual Property | 209.1 | 225.6 | (16.5) | (7.3) % | 0.2 % | (4.5) % | (0.3) % | (2.7) % | ||
Life Sciences & Healthcare | 111.0 | 118.7 | (7.7) | (6.5) % | 0.7 % | (1.2) % | (0.2) % | (5.8) % | ||
Revenues | $ 663.0 | $ 683.7 | $ (20.7) | (3.0) % | 0.2 % | (2.4) % | (0.1) % | (0.7) % | ||
Year Ended December 31, | Change | % of Change | ||||||||
2024 | 2023 | $ | % | Acquisitions | Disposals | FX | Organic | |||
Academia & Government | $ 1,326.4 | $ 1,323.3 | $ 3.1 | 0.2 % | — % | (0.4) % | (0.1) % | 0.7 % | ||
Intellectual Property | 811.4 | 862.7 | (51.3) | (5.9) % | 0.1 % | (3.1) % | (0.2) % | (2.7) % | ||
Life Sciences & Healthcare | 418.9 | 442.8 | (23.9) | (5.4) % | 0.6 % | (0.8) % | (0.4) % | (4.8) % | ||
Revenues | $ 2,556.7 | $ 2,628.8 | $ (72.1) | (2.7) % | 0.1 % | (1.3) % | (0.1) % | (1.4) % | ||
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 share-based compensation, impairments, restructuring expenses, the impact of certain non-cash fair value adjustments on financial instruments, acquisition and/or disposal-related transaction costs, unrealized foreign currency gains/losses, legal settlements, and other items that are included in Net income (loss) for the period that we do not consider indicative of our ongoing operating performance. Net income (loss) margin is calculated by dividing Net income (loss) by Revenues. 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 fourth quarter and full year of 2024 and 2023, respectively, and reconciles these non-GAAP measures to our Net income (loss) and Net income (loss) margin for the same periods:
Three Months Ended | Year Ended December 31, | ||||||
(In millions, except percentages); (unaudited) | 2024 | 2023 | 2024 | 2023 | |||
Net income (loss) | $ (191.8) | $ (843.9) | $ (636.7) | $ (911.2) | |||
Provision (benefit) for income taxes | 59.6 | (18.0) | 82.9 | (101.3) | |||
Depreciation and amortization | 186.0 | 180.8 | 727.0 | 708.3 | |||
Interest expense, net | 69.9 | 75.2 | 283.4 | 293.7 | |||
Share-based compensation expense | 10.9 | 11.8 | 60.6 | 108.9 | |||
Goodwill and intangible asset impairments | 224.1 | 844.7 | 540.7 | 979.9 | |||
Restructuring and other impairments | 5.4 | 14.7 | 19.6 | 40.0 | |||
Fair value adjustment of warrants | — | (1.5) | (5.2) | (15.9) | |||
Transaction related costs | 4.3 | 3.1 | 17.9 | 8.2 | |||
Other(1) | (83.1) | 31.3 | (29.8) | 6.6 | |||
Adjusted EBITDA | $ 285.3 | $ 298.2 | $ 1,060.4 | $ 1,117.2 | |||
Net income (loss) margin | (28.9) % | (123.4) % | (24.9) % | (34.7) % | |||
Adjusted EBITDA margin | 43.0 % | 43.6 % | 41.5 % | 42.5 % | |||
(1) Includes the net impact of unrealized foreign currency gains and losses and other items that do not reflect our ongoing operating performance. The fourth quarter and full year 2024 amount includes a gain of |
Adjusted net income and Adjusted diluted EPS
Adjusted net income represents Net income (loss), adjusted to exclude amortization related to acquired intangible assets, share-based compensation, impairments, restructuring expenses, the impact of certain non-cash fair value adjustments on financial instruments, acquisition and/or disposal-related transaction costs, unrealized foreign currency gains/losses, legal settlements, 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 associated income tax impact of such adjustments.
Adjusted diluted EPS is calculated by dividing Adjusted net income by Adjusted diluted weighted average shares. The Adjusted diluted weighted average shares calculation assumes that all instruments in the calculation are dilutive.
The following tables present our calculation of Adjusted net income and Adjusted diluted EPS for the fourth quarter and full year of 2024 and 2023, respectively, and reconciles these non-GAAP measures to our Net income (loss) and Diluted EPS for the same periods:
Three Months Ended December 31, | |||||||
2024 | 2023 | ||||||
(In millions, except per share amounts); (unaudited) | Amount | Per Share | Amount | Per Share | |||
Net income (loss) and Diluted EPS | $ (191.8) | $ (0.27) | $ (843.9) | $ (1.27) | |||
Amortization related to acquired intangible assets | 137.2 | 0.20 | 134.5 | 0.20 | |||
Share-based compensation expense | 10.9 | 0.02 | 11.8 | 0.02 | |||
Goodwill and intangible asset impairments | 224.1 | 0.32 | 844.7 | 1.27 | |||
Restructuring and other impairments | 5.4 | 0.01 | 14.7 | 0.02 | |||
Fair value adjustment of warrants | — | — | (1.5) | — | |||
Transaction related costs | 4.3 | 0.01 | 3.1 | — | |||
Other(1) | (83.1) | (0.13) | 31.3 | 0.04 | |||
Income tax impact of related adjustments | 38.5 | 0.05 | (31.3) | (0.05) | |||
Adjusted net income and Adjusted diluted EPS | $ 145.5 | $ 0.21 | $ 163.4 | $ 0.23 | |||
Adjusted weighted average ordinary shares, diluted | 707.7 | 724.4 | |||||
(1) Includes the net impact of unrealized foreign currency gains and losses and other items that do not reflect our ongoing operating performance. The fourth quarter 2024 amount includes a gain of |
Year Ended December 31, | |||||||
2024 | 2023 | ||||||
(In millions, except per share amounts); (unaudited) | Amount | Per Share | Amount | Per Share | |||
Net income (loss) and Diluted EPS | $ (636.7) | $ (0.92) | $ (911.2) | $ (1.36) | |||
Amortization related to acquired intangible assets | 554.1 | 0.80 | 564.3 | 0.84 | |||
Share-based compensation expense | 60.6 | 0.09 | 108.9 | 0.16 | |||
Goodwill and intangible asset impairments | 540.7 | 0.78 | 979.9 | 1.46 | |||
Restructuring and other impairments | 19.6 | 0.03 | 40.0 | 0.06 | |||
Fair value adjustment of warrants | (5.2) | (0.01) | (15.9) | (0.02) | |||
Transaction related costs | 17.9 | 0.03 | 8.2 | 0.01 | |||
Other(1) | (29.8) | (0.08) | 6.6 | (0.06) | |||
Income tax impact of related adjustments | 4.1 | 0.01 | (181.7) | (0.27) | |||
Adjusted net income and Adjusted diluted EPS | $ 525.3 | $ 0.73 | $ 599.1 | $ 0.82 | |||
Adjusted weighted average ordinary shares, diluted | 721.5 | 731.3 | |||||
(1) Includes the net impact of unrealized foreign currency gains and losses and other items that do not reflect our ongoing operating performance. The 2024 amount includes a net gain of |
Free cash flow
Free cash flow represents Net cash provided by operating activities less Capital expenditures. The following table reconciles this non-GAAP measure to Net cash provided by operating activities for the same periods:
Three Months Ended December 31, | Year Ended December 31, | ||||||
(In millions); (unaudited) | 2024 | 2023 | 2024 | 2023 | |||
Net cash provided by operating activities | $ 141.3 | $ 190.9 | $ 646.6 | $ 744.2 | |||
Capital expenditures | (82.2) | (63.9) | (289.1) | (242.5) | |||
Free cash flow | $ 59.1 | $ 127.0 | $ 357.5 | $ 501.7 | |||
Reconciliations to Certain Non-GAAP Measures - 2025 Outlook
Adjusted EBITDA and Adjusted EBITDA Margin
The following table presents our calculation of Adjusted EBITDA and Adjusted EBITDA margin for the 2025 outlook and reconciles these non-GAAP measures to our Net income (loss) and Net income (loss) margin for the same period:
Year Ending December 31, 2025 (Forecasted) | |||
(In millions, except percentages); (unaudited) | Low | High | |
Net income (loss) | $ (203) | $ (127) | |
Provision (benefit) for income taxes | 55 | 59 | |
Depreciation and amortization | 697 | 687 | |
Interest expense, net | 262 | 252 | |
Share-based compensation expense | 84 | 84 | |
Restructuring and other impairments(1) | 30 | 30 | |
Transaction related costs | 10 | 10 | |
Other | 5 | 5 | |
Adjusted EBITDA | $ 940 | $ 1,000 | |
Net income (loss) margin | (8.9) % | (5.3) % | |
Adjusted EBITDA margin | 40.5 % | 42.5 % | |
(1) Reflects restructuring costs expected to be incurred in 2025 associated with the Value Creation Plan. |
Adjusted diluted EPS
The following table presents our calculation of Adjusted diluted EPS for the 2025 outlook and reconciles this non-GAAP measure to our per share Net income (loss) for the same period:
Year Ending December 31, 2025 (Forecasted) | |||
(Unaudited) | Low | High | |
Net income (loss) | (0.28) | (0.18) | |
Amortization related to acquired intangible assets | 0.75 | 0.75 | |
Share-based compensation expense | 0.12 | 0.12 | |
Restructuring and other impairments(1) | 0.04 | 0.04 | |
Transaction related costs | 0.01 | 0.01 | |
Other | 0.01 | 0.01 | |
Income tax impact of related adjustments | (0.05) | (0.05) | |
Adjusted diluted EPS | $ 0.60 | $ 0.70 | |
Adjusted weighted-average ordinary shares (diluted)(2) | 696 million | ||
(1) Reflects restructuring costs expected to be incurred in 2025 associated with the Value Creation Plan. | |||
(2) For the purposes of calculating adjusted diluted EPS, we have assumed the "if-converted" method of share dilution on a full year basis. |
Free cash flow
The following table presents our calculation of Free cash flow for the 2025 outlook and reconciles this non-GAAP measure to our Net cash provided by operating activities for the same period:
Year Ending December 31, 2025 (Forecasted) | |||
(In millions); (unaudited) | Low | High | |
Net cash provided by operating activities | $ 555 | $ 635 | |
Capital expenditures | (255) | (255) | |
Free cash flow | $ 300 | $ 380 | |
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SOURCE Clarivate Plc
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