Clarivate Reports Second Quarter 2024 Results
Clarivate (NYSE: CLVT) reported its Q2 2024 financial results, showing a 2.8% revenue decrease to $650.3 million. Organic revenues dipped 0.6%, with an increase of 0.7% in subscription revenues offset by declines in re-occurring and transactional revenues.
The company posted a net loss of $304.3 million, with adjusted net income down 6.6% to $142.2 million. Adjusted diluted EPS fell 4.8% to $0.20. Adjusted EBITDA decreased by 3.7% to $274.4 million, with a margin contraction to 42.2%.
For the six months ending June 30, 2024, revenues totaled $1.27 billion, a 2% decline. Net loss for this period was $379.3 million, and adjusted net income dropped 13.2% to $245.7 million. Adjusted diluted EPS was down 12.8% to $0.34. Adjusted EBITDA was $510.7 million, a 5% decrease.
Free cash flow plummeted by $44.5 million in Q2 to $60.3 million and by $100.9 million for the first half of the year to $172.1 million.
The company reaffirmed its 2024 outlook and highlighted new product launches and positive customer responses.
Clarivate (NYSE: CLVT) ha riportato i risultati finanziari del secondo trimestre del 2024, evidenziando una riduzione del fatturato del 2,8% a 650,3 milioni di dollari. I fatturati organici sono diminuiti dello 0,6%, con un aumento dello 0,7% nei ricavi da abbonamenti compensato da cali nei ricavi ricorrenti e transazionali.
L'azienda ha registrato una perdita netta di 304,3 milioni di dollari, con un reddito netto rettificato in calo del 6,6% a 142,2 milioni di dollari. L'utile per azione diluito rettificato è sceso del 4,8% a 0,20 dollari. L'EBITDA rettificato è diminuito del 3,7% a 274,4 milioni di dollari, con una contrazione del margine al 42,2%.
Per i sei mesi conclusisi il 30 giugno 2024, i ricavi hanno totalizzato 1,27 miliardi di dollari, con un declino del 2%. La perdita netta per questo periodo è stata di 379,3 milioni di dollari, e il reddito netto rettificato è sceso del 13,2% a 245,7 milioni di dollari. L'utile per azione diluito rettificato è sceso del 12,8% a 0,34 dollari. L'EBITDA rettificato è stato di 510,7 milioni di dollari, con una diminuzione del 5%.
Il flusso di cassa libero è crollato di 44,5 milioni di dollari nel secondo trimestre a 60,3 milioni di dollari e di 100,9 milioni di dollari per il primo semestre dell'anno a 172,1 milioni di dollari.
L'azienda ha confermato le previsioni per il 2024 e ha messo in evidenza i lanci di nuovi prodotti e le risposte positive dei clienti.
Clarivate (NYSE: CLVT) informó sus resultados financieros del segundo trimestre de 2024, mostrando una disminución del ingreso del 2.8% a 650.3 millones de dólares. Los ingresos orgánicos cayeron un 0.6%, con un aumento del 0.7% en los ingresos por suscripción que fue compensado por caídas en los ingresos recurrentes y transaccionales.
La compañía reportó una pérdida neta de 304.3 millones de dólares, con un ingreso neto ajustado en disminución del 6.6% a 142.2 millones de dólares. Las ganancias por acción diluidas ajustadas cayeron un 4.8% a 0.20 dólares. El EBITDA ajustado disminuyó un 3.7% a 274.4 millones de dólares, con una contracción del margen al 42.2%.
Para los seis meses que terminaron el 30 de junio de 2024, los ingresos totalizaron 1.27 mil millones de dólares, una disminución del 2%. La pérdida neta para este período fue de 379.3 millones de dólares, y el ingreso neto ajustado cayó un 13.2% a 245.7 millones de dólares. Las ganancias por acción diluidas ajustadas bajaron un 12.8% a 0.34 dólares. El EBITDA ajustado fue de 510.7 millones de dólares, una disminución del 5%.
El flujo de caja libre se desplomó en 44.5 millones de dólares en el segundo trimestre a 60.3 millones de dólares y en 100.9 millones de dólares durante la primera mitad del año a 172.1 millones de dólares.
La compañía reafirmó su perspectiva para 2024 y destacó los lanzamientos de nuevos productos y las respuestas positivas de los clientes.
Clarivate (NYSE: CLVT)은 2024년 2분기 재무 결과를 발표하며 수익 2.8% 감소를 기록해 6억 5천 30만 달러에 이르렀습니다. 유기적 수익은 0.6% 감소했으며, 구독 수익은 0.7% 증가했지만 반복 수익과 거래 수익의 감소로 상쇄되었습니다.
회사는 순손실 3억 4천 30만 달러를 기록했으며, 조정된 순이익은 6.6% 감소한 1억 4천 220만 달러입니다. 조정된 희석 주당순이익은 4.8% 감소하여 0.20달러였습니다. 조정된 EBITDA는 3.7% 감소한 2억 7천 440만 달러로, 이익률은 42.2%로 축소되었습니다.
2024년 6월 30일로 종료된 6개월 동안의 수익은 12억 7천만 달러로, 2% 감소한 수치입니다. 이 기간의 순손실은 3억 7천 930만 달러였으며, 조정된 순이익은 13.2% 감소하여 2억 4천 570만 달러입니다. 조정된 희석 주당순이익은 12.8% 감소하여 0.34달러입니다. 조정된 EBITDA는 5% 감소한 5억 1천 70만 달러였습니다.
자유 현금 흐름은 2분기에 4천 450만 달러 줄어들어 6천 30만 달러가 되었고, 올해 상반기에는 1억 9천 900만 달러 줄어들어 1억 7천 210만 달러가 되었습니다.
회사는 2024년 전망을 재확인하고 새로운 제품 출시와 긍정적인 고객 반응을 강조했습니다.
Clarivate (NYSE: CLVT) a publié ses résultats financiers pour le deuxième trimestre 2024, révélant une baisse des revenus de 2,8% à 650,3 millions de dollars. Les revenus organiques ont diminué de 0,6%, tandis que les revenus d'abonnement ont augmenté de 0,7%, compensés par des baisses des revenus récurrents et transactionnels.
La société a annoncé une perte nette de 304,3 millions de dollars, avec un résultat net ajusté en baisse de 6,6% à 142,2 millions de dollars. Le bénéfice par action dilué ajusté a baissé de 4,8% à 0,20 dollar. L'EBITDA ajusté a diminué de 3,7% à 274,4 millions de dollars, avec une contraction de la marge à 42,2%.
Pour les six mois se terminant le 30 juin 2024, les revenus ont totalisé 1,27 milliard de dollars, une baisse de 2%. La perte nette pour cette période était de 379,3 millions de dollars, et le résultat net ajusté a chuté de 13,2% à 245,7 millions de dollars. Le bénéfice par action dilué ajusté a baissé de 12,8% à 0,34 dollar. L'EBITDA ajusté était de 510,7 millions de dollars, une diminution de 5%.
Le flux de trésorerie libre a chuté de 44,5 millions de dollars au deuxième trimestre à 60,3 millions de dollars et de 100,9 millions de dollars pour le premier semestre à 172,1 millions de dollars.
La société a réaffirmé ses prévisions pour 2024 et a souligné les lancements de nouveaux produits ainsi que les réactions positives des clients.
Clarivate (NYSE: CLVT) hat seine Finanzzahlen für das zweite Quartal 2024 veröffentlicht und dabei einen Umsatzrückgang von 2,8% auf 650,3 Millionen Dollar verzeichnet. Die organischen Einnahmen fielen um 0,6%, während die Einnahmen aus Abonnements um 0,7% stiegen, was durch Rückgänge bei wiederkehrenden und transaktionalen Einnahmen ausgeglichen wurde.
Das Unternehmen schrieb einen Nettoverlust von 304,3 Millionen Dollar, während das bereinigte Nettoeinkommen um 6,6% auf 142,2 Millionen Dollar fiel. Der bereinigte verwässerte EPS sank um 4,8% auf 0,20 Dollar. Das bereinigte EBITDA verringerte sich um 3,7% auf 274,4 Millionen Dollar, mit einer Ausweitung der Marge auf 42,2%.
Für die sechs Monate bis zum 30. Juni 2024 belief sich der Umsatz auf 1,27 Milliarden Dollar, ein Rückgang von 2%. Der Nettoverlust für diesen Zeitraum betrug 379,3 Millionen Dollar, und das bereinigte Nettoeinkommen fiel um 13,2% auf 245,7 Millionen Dollar. Der bereinigte verwässerte EPS sank um 12,8% auf 0,34 Dollar. Das bereinigte EBITDA betrug 510,7 Millionen Dollar, ein Rückgang um 5%.
Der freie Cashflow fiel im zweiten Quartal um 44,5 Millionen Dollar auf 60,3 Millionen Dollar und um 100,9 Millionen Dollar in der ersten Jahreshälfte auf 172,1 Millionen Dollar.
Das Unternehmen bekräftigte seinen Ausblick für 2024 und hob die Einführung neuer Produkte sowie positive Kundenreaktionen hervor.
- None.
- 2.8% decrease in Q2 revenues to $650.3 million.
- 0.6% decline in organic revenues.
- Net loss of $304.3 million for Q2.
- Adjusted net income down 6.6% to $142.2 million.
- Adjusted diluted EPS down 4.8% to $0.20.
- Adjusted EBITDA decreased by 3.7% to $274.4 million.
- Free cash flow down by $44.5 million in Q2 to $60.3 million.
- Six months revenue of $1.27 billion, a 2% decline.
- Net loss of $379.3 million for the first half of the year.
- Adjusted net income down 13.2% to $245.7 million for six months.
- Adjusted diluted EPS down 12.8% to $0.34.
- Adjusted EBITDA down 5% to $510.7 million for six months.
- Free cash flow down $100.9 million for the first half to $172.1 million.
Insights
Clarivate's Q2 2024 results paint a mixed picture. While the company reaffirmed its 2024 outlook, there are some concerning trends:
- Revenues decreased by
2.8% to$650.3 million , with organic revenues down0.6% . - Net loss widened to
$304.3 million , compared to$123.1 million in Q2 2023. - Adjusted EBITDA fell
3.7% to$274.4 million , with margins contracting 40 basis points to42.2% .
The silver lining is the
Clarivate's performance reflects broader market challenges in the information services sector. The
The improved renewal rates and new customer wins mentioned by CEO Jonathan Gear are positive indicators. If this trend continues, it could support the company's projection of returning to organic growth in the second half of 2024. However, investors should remain cautious, as the market for research and analytics tools is rapidly evolving and Clarivate will need to continuously innovate to maintain its competitive edge.
Clarivate's investment in next-generation product offerings across all segments is a strategic move in the right direction. The launch of Research Horizon Navigator™, Trademark Watch Analyzer and Epidemiology Intelligence demonstrates the company's commitment to innovation and digital transformation.
These new tools likely incorporate advanced analytics and AI capabilities, which are becoming increasingly important in the information services industry. The positive customer response to these products, as indicated by improved renewal rates and new customer wins, suggests that Clarivate is successfully addressing market needs.
However, the short-term financial impact of these investments is evident in the increased capital expenditures and lower free cash flow. The key will be monitoring how quickly these new products can drive revenue growth and improve profitability in the coming quarters.
— Reaffirms 2024 Outlook —
Second Quarter 2024 Financial Highlights
- Revenues of
decreased$650.3 million 2.8% - Organic revenues decreased
0.6% , as an increase in subscription revenues of0.7% was offset by a decrease in re-occurring revenues of0.7% and transactional and other revenues of4.1% - Net loss of
; Net loss per diluted share of$304.3 million $0.46 - Adjusted net income(1) of
decreased$142.2 million 6.6% ; Adjusted diluted EPS(1) of decreased$0.20 4.8% or$0.01 - Adjusted EBITDA(1) of
decreased$274.4 million 3.7% ; Adjusted EBITDA margin(1) of42.2% decreased 40 basis points primarily due to lower revenues - Net cash provided by operating activities of
decreased$126.2 million ; Free cash flow(1) of$36.2 million decreased$60.3 million primarily due to the timing of working capital$44.5 million
Six Months Ended June 30, 2024 Financial Highlights
- Revenues of
decreased$1,271.5 million 2.0% - Organic revenues decreased
1.1% as an increase in subscription revenues of1.5% was offset by a decline in re-occurring revenues of2.9% and transactional and other revenues of7.3% - Net loss of
; Net loss per diluted share of$379.3 million $0.61 - Adjusted net income(1) of
decreased$245.7 million 13.2% ; Adjusted diluted EPS(1) of decreased$0.34 12.8% or$0.05 - Adjusted EBITDA(1) of
decreased$510.7 million 5.0% ; Adjusted EBITDA margin(1) of40.2% decreased 120 basis points primarily due to lower revenues - Net cash provided by operating activities decreased
to$87.5 million ; Free cash flow(1) decreased$302.4 million to$100.9 million primarily due to lower operating income and increased capital expenditures$172.1 million
"We continue to invest in innovation and make progress on our strategy of returning to growth. During the last quarter, we launched several new, next-generation product offerings across all three segments such as the Research Horizon Navigator™, Trademark Watch Analyzer, and Epidemiology Intelligence," said Jonathan Gear, Chief Executive Officer. "We are seeing our customers respond positively to our operational and product improvements, and as a result improved renewal rates and new customer wins, which will drive a return to organic growth in the second half of this year."
Selected Financial Information
Three Months Ended | Change | Six Months Ended | Change | ||||||||||||
(in millions, except percentages and per share data), (unaudited) | 2024 | 2023 | $ | % | 2024 | 2023 | $ | % | |||||||
Revenues | $ 650.3 | $ 668.8 | $ (18.5) | (2.8) % | $ 1,271.5 | $ 1,297.9 | $ (26.4) | (2.0) % | |||||||
Net income (loss) | $ (304.3) | $ (123.1) | $ (181.2) | N/M | $ (379.3) | $ (79.6) | $ (299.7) | N/M | |||||||
Diluted EPS | $ (0.46) | $ (0.21) | $ (0.25) | N/M | $ (0.61) | $ (0.17) | $ (0.44) | N/M | |||||||
Weighted average ordinary shares, diluted | 685.6 | 675.9 | 9.7 | 1.4 % | 676.2 | 675.4 | 0.8 | 0.1 % | |||||||
Adjusted EBITDA(1) | $ 274.4 | $ 284.9 | $ (10.5) | (3.7) % | $ 510.7 | $ 537.6 | $ (26.9) | (5.0) % | |||||||
Adjusted net income(1) | $ 142.2 | $ 152.2 | $ (10.0) | (6.6) % | $ 245.7 | $ 283.1 | $ (37.4) | (13.2) % | |||||||
Adjusted diluted EPS(1)(2) | $ 0.20 | $ 0.21 | $ (0.01) | (4.8) % | $ 0.34 | $ 0.39 | $ (0.05) | (12.8) % | |||||||
Adjusted weighted average ordinary shares, diluted(1) | 726.8 | 734.9 | (8.1) | (1.1) % | 727.2 | 734.8 | (7.6) | (1.0) % | |||||||
Net cash provided by operating activities | $ 126.2 | $ 162.4 | $ (36.2) | (22.3) % | $ 302.4 | $ 389.9 | $ (87.5) | (22.4) % | |||||||
Free cash flow(1) | $ 60.3 | $ 104.8 | $ (44.5) | (42.5) % | $ 172.1 | $ 273.0 | $ (100.9) | (37.0) % |
Second Quarter 2024 Commentary
Revenues for the second quarter decreased
Subscription revenues for the second quarter decreased
Re-occurring revenues for the second quarter decreased
Transactional and other revenues for the second quarter decreased
Balance Sheet and Cash Flow
As of June 30, 2024, cash and cash equivalents of
The Company's total debt outstanding as of June 30, 2024 was
Net cash provided by operating activities of
Reaffirmed Outlook for 2024 (forward-looking statement)
"Our second quarter results were in line with the expectations we outlined on our prior earnings call. We continue to expect our full year 2024 financial results to be in the range of our existing outlook," said Jonathan Collins, Executive Vice President and Chief Financial Officer. "With our strong cash flow, we plan to take a more balanced approach to capital allocation during the second half of 2024."
The full year outlook presented below assumes no further acquisitions, divestitures, or unanticipated events.
2024 Outlook | |
Revenues | |
Organic Revenue Growth | |
Adjusted EBITDA(1) | |
Adjusted EBITDA Margin(1) | |
Adjusted Diluted EPS(1)(2) | |
Free Cash Flow(1) |
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 725 million fully diluted adjusted weighted average ordinary shares outstanding. |
N/M - Represents a change approximately equal or in excess of |
Conference Call and Webcast
Clarivate will host a conference call and webcast today to review the results for the second 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
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 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) | June 30, 2024 | December 31, 2023 | |
ASSETS | |||
Current assets: | |||
Cash and cash equivalents, including restricted cash | $ 376.4 | $ 370.7 | |
Accounts receivable, net | 796.3 | 908.3 | |
Prepaid expenses | 87.1 | 88.5 | |
Other current assets | 75.0 | 68.0 | |
Assets held for sale | — | 26.7 | |
Total current assets | 1,334.8 | 1,462.2 | |
Property and equipment, net | 46.0 | 51.6 | |
Other intangible assets, net | 8,771.3 | 9,006.6 | |
Goodwill | 1,736.5 | 2,023.7 | |
Other non-current assets | 91.6 | 60.8 | |
Deferred income taxes | 49.3 | 46.7 | |
Operating lease right-of-use assets | 48.2 | 55.2 | |
Total assets | $ 12,077.7 | $ 12,706.8 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 128.1 | $ 144.1 | |
Accrued compensation | 107.2 | 126.5 | |
Accrued expenses and other current liabilities | 314.1 | 315.2 | |
Current portion of deferred revenues | 912.4 | 983.1 | |
Current portion of operating lease liability | 23.3 | 24.4 | |
Liabilities held for sale | — | 6.7 | |
Total current liabilities | 1,485.1 | 1,600.0 | |
Long-term debt | 4,635.3 | 4,721.1 | |
Non-current portion of deferred revenues | 23.9 | 38.7 | |
Other non-current liabilities | 49.9 | 41.9 | |
Deferred income taxes | 229.0 | 249.6 | |
Operating lease liabilities | 49.9 | 63.2 | |
Total liabilities | 6,473.1 | 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; 724.1 and 666.1 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively | 13,157.7 | 11,740.5 | |
Accumulated other comprehensive loss | (497.0) | (495.3) | |
Accumulated deficit | (7,056.1) | (6,645.5) | |
Total shareholders' equity | 5,604.6 | 5,992.3 | |
Total liabilities and shareholders' equity | $ 12,077.7 | $ 12,706.8 |
Condensed Consolidated Statements of Operations (Unaudited) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
(In millions, except per share data) | 2024 | 2023 | 2024 | 2023 | |||
Revenues | $ 650.3 | $ 668.8 | $ 1,271.5 | $ 1,297.9 | |||
Operating expenses: | |||||||
Cost of revenues | 213.6 | 224.2 | 431.4 | 453.9 | |||
Selling, general and administrative costs | 185.2 | 192.9 | 377.1 | 387.7 | |||
Depreciation and amortization | 184.4 | 178.1 | 363.8 | 350.7 | |||
Goodwill and intangible asset impairments | 302.8 | 135.2 | 302.8 | 135.2 | |||
Restructuring and other impairments | 0.7 | 12.2 | 10.2 | 21.6 | |||
Other operating expense (income), net | 3.6 | 14.5 | 21.2 | (17.5) | |||
Total operating expenses | 890.3 | 757.1 | 1,506.5 | 1,331.6 | |||
Income (loss) from operations | (240.0) | (88.3) | (235.0) | (33.7) | |||
Fair value adjustment of warrants | — | (2.9) | (5.2) | (1.8) | |||
Interest expense, net | 71.1 | 73.0 | 141.3 | 146.6 | |||
Income (loss) before income taxes | (311.1) | (158.4) | (371.1) | (178.5) | |||
Provision (benefit) for income taxes | (6.8) | (35.3) | 8.2 | (98.9) | |||
Net income (loss) | (304.3) | (123.1) | (379.3) | (79.6) | |||
Dividends on preferred shares | 12.5 | 18.6 | 31.3 | 37.4 | |||
Net income (loss) attributable to ordinary shares | $ (316.8) | $ (141.7) | $ (410.6) | $ (117.0) | |||
Per share: | |||||||
Basic | $ (0.46) | $ (0.21) | $ (0.61) | $ (0.17) | |||
Diluted | $ (0.46) | $ (0.21) | $ (0.61) | $ (0.17) | |||
Weighted average shares used to compute earnings per share: | |||||||
Basic | 685.6 | 675.9 | 676.2 | 675.4 | |||
Diluted | 685.6 | 675.9 | 676.2 | 675.4 |
Condensed Consolidated Statements of Cash Flows (Unaudited) | |||
Six Months Ended June 30, | |||
(In millions) | 2024 | 2023 | |
Cash Flows From Operating Activities | |||
Net income (loss) | $ (379.3) | $ (79.6) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 363.8 | 350.7 | |
Share-based compensation | 33.9 | 71.6 | |
Restructuring and other impairments, including goodwill | 301.3 | 138.7 | |
Gain on legal settlement | — | (49.4) | |
Deferred income taxes | (24.6) | (47.8) | |
Amortization of debt issuance costs | 7.9 | 9.1 | |
Other operating activities | 14.3 | 17.0 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 103.2 | 121.7 | |
Prepaid expenses | 1.1 | (11.9) | |
Other assets | (5.4) | 38.6 | |
Accounts payable | (12.2) | 6.2 | |
Accrued expenses and other current liabilities | (38.3) | (74.2) | |
Deferred revenues | (59.7) | (18.4) | |
Operating leases, net | (4.8) | (4.5) | |
Other liabilities | 1.2 | (77.9) | |
Net cash provided by operating activities | 302.4 | 389.9 | |
Cash Flows From Investing Activities | |||
Capital expenditures | (130.3) | (116.9) | |
Payments for acquisitions, net of cash acquired | (17.1) | (1.1) | |
Proceeds from divestitures, net of cash divested | (19.2) | 10.5 | |
Net cash provided by (used for) investing activities | (166.6) | (107.5) | |
Cash Flows From Financing Activities | |||
Principal payments on term loans | (52.7) | (150.0) | |
Payment of debt issuance costs and discounts | (20.1) | 0.1 | |
Cash dividends on preferred shares | (37.7) | (37.7) | |
Payments related to finance lease | (0.4) | (0.5) | |
Payments related to tax withholding for share-based compensation | (9.9) | (9.7) | |
Net cash provided by (used for) financing activities | (120.8) | (197.8) | |
Effects of exchange rates | (9.3) | 1.7 | |
Net change in cash and cash equivalents, including restricted cash | $ 5.7 | $ 86.3 | |
Cash and cash equivalents, including restricted cash, beginning of period | $ 370.7 | $ 356.8 | |
Cash and cash equivalents, including restricted cash, end of period | $ 376.4 | $ 443.1 |
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
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 | ||||||||
(In millions, except percentages); | 2024 | 2023 | $ | % | Acquisitions | Disposals | FX | Organic | ||
Subscription revenues | $ 405.6 | $ 406.0 | $ (0.4) | (0.1) % | 0.1 % | — % | (0.9) % | 0.7 % | ||
Re-occurring revenues | 108.6 | 111.0 | (2.4) | (2.2) % | — % | — % | (1.5) % | (0.7) % | ||
Transactional and other revenues | 136.1 | 151.8 | (15.7) | (10.3) % | 0.1 % | (6.0) % | (0.3) % | (4.1) % | ||
Revenues | $ 650.3 | $ 668.8 | $ (18.5) | (2.8) % | 0.1 % | (1.4) % | (0.9) % | (0.6) % | ||
Six Months Ended June | Change | % of Change | ||||||||
(In millions, except percentages); | 2024 | 2023 | $ | % | Acquisitions | Disposals | FX | Organic | ||
Subscription revenues | $ 808.7 | $ 799.2 | $ 9.5 | 1.2 % | 0.1 % | — % | (0.4) % | 1.5 % | ||
Re-occurring revenues | 211.1 | 218.7 | (7.6) | (3.5) % | — % | — % | (0.6) % | (2.9) % | ||
Transactional and other revenues | 251.7 | 280.0 | (28.3) | (10.1) % | 0.1 % | (2.9) % | — % | (7.3) % | ||
Revenues | $ 1,271.5 | $ 1,297.9 | $ (26.4) | (2.0) % | 0.1 % | (0.6) % | (0.4) % | (1.1) % | ||
Three Months Ended | Change | % of Change | ||||||||
(In millions, except percentages); | 2024 | 2023 | $ | % | Acquisitions | Disposals | FX | Organic | ||
Academia & Government | $ 344.5 | $ 342.0 | $ 2.5 | 0.7 % | — % | — % | (0.6) % | 1.3 % | ||
Intellectual Property | 201.6 | 216.3 | (14.7) | (6.8) % | — % | (3.7) % | (1.3) % | (1.8) % | ||
Life Sciences & Healthcare | 104.2 | 110.5 | (6.3) | (5.7) % | 0.4 % | (1.1) % | (1.1) % | (3.9) % | ||
Revenues | $ 650.3 | $ 668.8 | $ (18.5) | (2.8) % | 0.1 % | (1.4) % | (0.9) % | (0.6) % | ||
Six Months Ended June | Change | % of Change | ||||||||
(In millions, except percentages); | 2024 | 2023 | $ | % | Acquisitions | Disposals | FX | Organic | ||
Academia & Government | $ 662.2 | $ 656.7 | $ 5.5 | 0.8 % | — % | — % | (0.1) % | 0.9 % | ||
Intellectual Property | 402.5 | 425.4 | (22.9) | (5.4) % | — % | (1.6) % | (0.6) % | (3.2) % | ||
Life Sciences & Healthcare | 206.8 | 215.8 | (9.0) | (4.2) % | 0.3 % | (0.6) % | (0.6) % | (3.3) % | ||
Revenues | $ 1,271.5 | $ 1,297.9 | $ (26.4) | (2.0) % | 0.1 % | (0.6) % | (0.4) % | (1.1) % |
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, 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. 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 three and six months ended June 30, 2024 and 2023 and reconciles these non-GAAP measures to our Net income (loss) and Net income (loss) margin for the same periods:
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
(In millions, except percentages); (unaudited) | 2024 | 2023 | 2024 | 2023 | |||
Net income (loss) | $ (304.3) | $ (123.1) | $ (379.3) | $ (79.6) | |||
Provision (benefit) for income taxes | (6.8) | (35.3) | 8.2 | (98.9) | |||
Depreciation and amortization | 184.4 | 178.1 | 363.8 | 350.7 | |||
Interest expense, net | 71.1 | 73.0 | 141.3 | 146.6 | |||
Transaction related costs | 3.1 | 0.7 | 7.5 | 2.4 | |||
Share-based compensation expense | 18.9 | 30.5 | 34.3 | 71.7 | |||
Goodwill and intangible asset impairments | 302.8 | 135.2 | 302.8 | 135.2 | |||
Restructuring and other impairments | 0.7 | 12.2 | 10.2 | 21.6 | |||
Fair value adjustment of warrants | — | (2.9) | (5.2) | (1.8) | |||
Other(1) | 4.5 | 16.5 | 27.1 | (10.3) | |||
Adjusted EBITDA | $ 274.4 | $ 284.9 | $ 510.7 | $ 537.6 | |||
Net income (loss) margin | (46.8) % | (18.4) % | (29.8) % | (6.1) % | |||
Adjusted EBITDA margin | 42.2 % | 42.6 % | 40.2 % | 41.4 % |
(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. In addition to the net unrealized foreign exchange loss, the six months ended June 30, 2024 also includes a |
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, 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 tables present our calculation of Adjusted net income and Adjusted diluted EPS for the three and six months ended June 30, 2024 and 2023 and reconciles these non-GAAP measures to our Net income (loss) and diluted EPS for the same periods:
Three Months Ended June 30, | |||||||
2024 | 2023 | ||||||
(In millions, except per share amounts); (unaudited) | Amount | Per Share | Amount | Per Share | |||
Net income (loss) and EPS | $ (304.3) | $ (0.44) | $ (123.1) | $ (0.18) | |||
Transaction related costs | 3.1 | — | 0.7 | — | |||
Share-based compensation expense | 18.9 | 0.03 | 30.5 | 0.05 | |||
Amortization related to acquired intangible assets | 139.7 | 0.20 | 143.5 | 0.21 | |||
Goodwill and intangible asset impairments | 302.8 | 0.44 | 135.2 | 0.20 | |||
Restructuring and other impairments | 0.7 | — | 12.2 | 0.02 | |||
Fair value adjustment of warrants | — | — | (2.9) | — | |||
Other(1) | 4.5 | — | 16.5 | — | |||
Income tax impact of related adjustments | (23.2) | (0.03) | (60.4) | (0.09) | |||
Adjusted net income and Adjusted diluted EPS | $ 142.2 | $ 0.20 | $ 152.2 | $ 0.21 | |||
Adjusted weighted average ordinary shares, diluted | 726.8 | 734.9 |
(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. |
Six Months Ended June 30, | |||||||
2024 | 2023 | ||||||
(In millions, except per share amounts); (unaudited) | Amount | Per Share | Amount | Per Share | |||
Net income (loss) and EPS | $ (379.3) | $ (0.56) | $ (79.6) | $ (0.12) | |||
Transaction related costs | 7.5 | 0.01 | 2.4 | — | |||
Share-based compensation expense | 34.3 | 0.05 | 71.7 | 0.11 | |||
Amortization related to acquired intangible assets | 278.2 | 0.41 | 287.9 | 0.43 | |||
Goodwill and intangible asset impairments | 302.8 | 0.45 | 135.2 | 0.20 | |||
Restructuring and other impairments | 10.2 | 0.02 | 21.6 | 0.03 | |||
Fair value adjustment of warrants | (5.2) | (0.01) | (1.8) | — | |||
Other(1) | 27.1 | 0.01 | (10.3) | (0.05) | |||
Income tax impact of related adjustments | (29.9) | (0.04) | (144.0) | (0.21) | |||
Adjusted net income and Adjusted diluted EPS | $ 245.7 | $ 0.34 | $ 283.1 | $ 0.39 | |||
Adjusted weighted average ordinary shares, diluted | 727.2 | 734.8 |
(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. In addition to the net unrealized foreign exchange loss, the six months ended June 30, 2024 also includes a |
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 June 30, | Six Months Ended June 30, | ||||||
(In millions); (unaudited) | 2024 | 2023 | 2024 | 2023 | |||
Net cash provided by operating activities | $ 126.2 | $ 162.4 | $ 302.4 | $ 389.9 | |||
Capital expenditures | (65.9) | (57.6) | (130.3) | (116.9) | |||
Free cash flow | $ 60.3 | $ 104.8 | $ 172.1 | $ 273.0 |
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) and Net income (loss) margin for the same period:
Year Ending December 31, 2024 (Forecasted) | |||
(In millions, except percentages); (unaudited) | Low | High | |
Net income (loss) | $ (415) | $ (355) | |
Provision (benefit) for income taxes | 35 | 35 | |
Depreciation and amortization | 730 | 730 | |
Interest expense, net | 283 | 283 | |
Transaction related costs | 11 | 11 | |
Share-based compensation expense | 71 | 71 | |
Goodwill impairment | 303 | 303 | |
Restructuring and other impairments(1) | 15 | 15 | |
Fair value adjustment of warrants | (5) | (5) | |
Other | 27 | 27 | |
Adjusted EBITDA | $ 1,055 | $ 1,115 | |
Net income (loss) margin | (16) % | (13) % | |
Adjusted EBITDA margin | 41 % | 42 % |
(1) 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) | |||
(Unaudited) | Low | High | |
Net income (loss) | $ (0.58) | $ (0.49) | |
Transaction related costs | 0.02 | 0.02 | |
Share-based compensation expense | 0.10 | 0.10 | |
Amortization related to acquired intangible assets | 0.76 | 0.76 | |
Goodwill impairment | 0.42 | 0.42 | |
Restructuring and other impairments(1) | 0.02 | 0.02 | |
Fair value adjustment of warrants | (0.01) | (0.01) | |
Other | 0.03 | 0.04 | |
Income tax impact of related adjustments | (0.06) | (0.06) | |
Adjusted diluted EPS | $ 0.70 | $ 0.80 | |
Adjusted weighted average ordinary shares, diluted(2) | 725 million |
(1) Refer to associated line item descriptions provided for the Adjusted EBITDA outlook reconciliation table above. | |||
(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 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 | $ 695 | $ 775 | |
Capital expenditures | (275) | (275) | |
Free cash flow | $ 420 | $ 500 |
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SOURCE Clarivate Plc
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