Clarivate Plc · NYSE:CLVT
Clarivate — Q1 2021 Earnings Presentation
20 slides from Clarivate's earnings presentation, Apr 29, 2021
Slide 1: Q1 2021 Earnings Supplemental Materials
Q1 2021 Earnings Supplemental Materials April 29, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements These materials contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on management’s current belie
Slide 3: Q1 Highlights
Q1 Highlights Financial Highlights(1) Operational Highlights “One Clarivate” Improving overdue renewal discipline Transforming from being a collection of distinct $31M / 85% decline compared to 1Q’20 market-leading products and services to +75% +75% +7% becoming a key partner to our customers
Slide 4: Published First Ever Annual Sustainability Report
Published First Ever Annual Sustainability Report We’re committed to maintaining the highest level of integrity and ethics, protecting our planet, empowering our colleagues to thrive and building collaborative global communities Our goals are aligned to the United Nations (UN) Sustainable Develo
Slide 5: Q1 Results
Q1 Results Growth was driven by the acquisitions of DRG and CPA Global and a recovery in adjusted organic revenue of 7%(1) Revenue(2) Adjusted Revenue(3) Adjusted EBITDA(3) +78% actual f/x +78% actual f/x Adjusted EBITDA +75% constant f/x +75% constant f/x Margin(4) 38% up 600 basis points $428 $432
Slide 6: Q1 Financial Highlights
Q1 Financial Highlights Three Months Ended March 31, Commentary Excluding ($ in millions except per share data) 2021 2020 Change Divestitures(2) Organic(2) Acquisitions, timing benefits due to tighter operating procedures and price increases, partially offset by divested Subscription revenue(1) $235
Slide 7: Selected Balance Sheet and Cash Flow Information
Selected Balance Sheet and Cash Flow Information ($ in millions) March 31, 2021 December 31, 2020 $ Change Commentary on Change Cash and cash equivalents $399 $258 $143 Increase a result of significant growth in cash flow from operations Total debt outstanding $3,540 $3,547 ($7) N/A Net debt(1) $3,1
Slide 8: Annualized Contract Value (ACV)
Annualized Contract Value (ACV)(1) As Reported Adjusted to Include Acquisitions and Exclude Divestitures $909 $907 $909 $820 +11% $817 $823 $786 $712 $720 $727 Q1 '20 Q1 '21 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1'21 Organic ACV Growth of 6% Quarters include acquisitions as of the period
Slide 9: Updated 2021 Outlook
Updated 2021 Outlook* ($ in millions) Current Outlook Previous Outlook Low High Low High Adjusted Revenue $1,790 $1,840 $1,780 $1,840 Adjusted EBITDA $790 $825 $785 $825 Adjusted EBITDA margin % No change No change 44% 45% Adjusted Free Cash Flow No change No change $450 $500 *See Appendix for recon
Slide 10: Efficiently Managing Cost Structure and Freeing up Resources
Efficiently Managing Cost Structure and Freeing up Resources Approximately $185 million in permanent cost reductions Permanent Completed Total Savings Timing Savings Through 2020 2019 cost savings program $75 million $75 million $73 million Completed $75 million run-rate COVID related $30 million At
Slide 11: Appendix
(S Clarivate” APPENDIX
Slide 12: Presentation of Certain Non-GAAP Financial Measures
Presentation of Certain Non-GAAP Financial Measures This presentation contains financial measures which have not been calculated in accordance with GAAP, including Adjusted Revenues and Adjusted EBITDA, because they are a basis upon which our management assesses our performance and we believe they r
Slide 13: Presentation of Certain Non-GAAP Financial Measures
Presentation of Certain Non-GAAP Financial Measures The use of Adjusted EBITDA instead of GAAP measures has limitations as an analytical tool, and you should not consider Adjusted EBITDA in isolation, or as a substitute for analysis of the Company’s results of operations and operating cash flows as
Slide 14: Presentation of Certain Non-GAAP Financial Measures
Presentation of Certain Non-GAAP Financial Measures Free Cash Flow and Adjusted Free Cash Flow We use free cash flow and adjusted free cash flow in our operational and financial decision-making and believe free cash flow and adjusted free cash is useful to investors because similar measures are freq
Slide 15: Quarterly Financial Summary
Quarterly Financial Summary ($ in millions) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Revenues, net $234.0 $242.3 $243.0 $255.0 $240.6 $273.5 $284.4 $455.6 $428.4 Deferred revenue adjustment $0.2 $0.1 $0.1 $0.1 $1.9 $3.4 $2.1 $15.7 $3.0 Adjusted Revenue(1)(2) $234.2 $24
Slide 16: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Growth in organic revenue illustrates growth in businesses owned by the Company as of January 1, 2020, the beginning of the earliest period presented. The following tables present the amounts of our subscription and transactional revenues, including as a
Slide 17: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Descriptions Adjusted EBITDA adjustments Three Months Ended March 31, 1. In 2020, this is related to a new transition services agreement and offset by the (in millions) 2021 2020 reverse transition services agreement from the sale of MarkMonitor assets.
Slide 18: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Debt to Net debt March 31, December 31, (in millions) 2021 2020 Total debt outstanding $ 3,540.3 $ 3,547.4 Cash and cash equivalents 399.0 257.7 Total net debt outstanding $ 3,141.3 $ 3,289.7 Net Cash Provided by Operating Activities to Free Cash Flow an
Slide 19: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures The following table presents our calculation of Adjusted Revenues for the Outlook for 2021 and reconciles this measure to Revenues for the same period: Revenues, Net to Adjusted Revenues Descriptions Year Ending December 31, 2021 (Forecasted) 1. Reflects
Slide 20: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures The following table presents our calculation of Free Cash Flow and Adjusted Free Cash Flow for the Outlook for 2021 and reconciles this measure to our Net cash provided by operating activities for the same period: Net Cash Provided by Operating Activitie