Clarivate Plc · NYSE:CLVT
Clarivate — Q2 2021 Earnings Presentation
25 slides from Clarivate's earnings presentation, Jul 29, 2021
Slide 1: Q2 2021 Earnings Supplemental Materials
Q2 2021 Earnings Supplemental Materials July 29, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements This communication contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These statements, which express management’s current views concerning future business, events, trends, contingencies, financial performance, or fina
Slide 3: Financial and Business Highlights
Financial and Business Highlights Combination of operational enhancements and post pandemic business recovery driving improved year over year performance Financial(1) Business ✓ Announced proposed acquisition of ProQuest, creating a global provider of mission critical information and data-driven sol
Slide 4: Delivering on Revenue and Earnings Growth Objectives in 2021
Delivering on Revenue and Earnings Growth Objectives in 2021 With first half organic revenue growth of 6%, we are on target to achieve 6% to 8% organic revenue growth exiting 2021 Revenue(1) Adjusted EBITDA(2) $354 Adjusted Revenue(2) Recurring Transactional Subscription +89% +98% Organic Revenue $1
Slide 5: First Half 2021 Sustainability Highlights
First Half 2021 Sustainability Highlights Recognition: Earned ISO 27000 Certification. Earned Silver Status with EcoVadis for ESG Performance (80th Percentile) • Published first annual sustainability report, GRI and SASB Reporting • UN Global Compact Signatory • Submitted Ecovadis (100 questions) a
Slide 6: Financial Highlights
Financial Highlights 2021 2020 Actual Organic(2) 2021 2020 Actual Organic(2) 2Q Commentary ($ in millions except per share data) Three Months Ended June 30, Six Months Ended June 30, 2Q’20 was favorably impacted as a result of delayed renewals in 1Q’20 due to COVID Subscription revenue(1) $244 $217
Slide 7: Selected Balance Sheet and Cash Flow Information
Selected Balance Sheet and Cash Flow Information ($ in millions) June 30, 2021 December 31, 2020 $ Change Commentary on Change Increase a result of the June 2021 primary and convertible security offering to fund a portion of the Cash and cash equivalents $2,560 $258 $2,302 proposed acquisition of Pr
Slide 8: Delivering Increased Cost Savings
Delivering Increased Cost Savings Permanent cost savings increased to approximately $210 million Completed Permanent Total Savings Through June Timing Savings 2021 2019 cost savings program $75 million $75 million $75 million Completed $75 million run-rate COVID related $30 million At least $5 milli
Slide 9: Updated 2021 Outlook
Updated 2021 Outlook* Tightened financial outlook range as a result of the growth in revenue and Adjusted EBITDA in the first half of 2021 ($ in millions) Current Outlook Previous Outlook Low High Low High Adjusted Revenue $1,800 $1,840 $1,790 $1,840 Adjusted EBITDA $795 $825 $790 $825 Adjusted EBIT
Slide 10: Appendix
(> Clarivate” APPENDIX
Slide 11: Presentation of Certain Non-GAAP Financial Measures
Presentation of Certain Non-GAAP Financial Measures This presentation contains financial measures which have not been calculated in accordance with GAAP, including Adjusted Revenues and Adjusted EBITDA, because they are a basis upon which our management assesses our performance and we believe they r
Slide 12: Presentation of Certain Non-GAAP Financial Measures
Presentation of Certain Non-GAAP Financial Measures Adjusted EBITDA The use of Adjusted EBITDA instead of GAAP measures has limitations as an analytical tool, and you should not consider Adjusted EBITDA in isolation, or as a substitute for analysis of the Company’s results of operations and operatin
Slide 13: Presentation of Certain Non-GAAP Financial Measures
Presentation of Certain Non-GAAP Financial Measures Adjusted Net Income and Adjusted Diluted EPS We use Adjusted Net Income and Adjusted Diluted Earnings Per Share ("Adjusted Diluted EPS") in our analysis of the financial performance of the Company. We believe Adjusted Net Income and Adjusted Dilute
Slide 14: Presentation of Certain Non-GAAP Financial Measures
Presentation of Certain Non-GAAP Financial Measures Free Cash Flow and Adjusted Free Cash Flow We use free cash flow and adjusted free cash flow in our operational and financial decision-making and believe free cash flow and adjusted free cash is useful to investors because similar measures are freq
Slide 15: Quarterly Financial Summary
Quarterly Financial Summary ($ in millions) Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Revenues, net $242.3 $243.0 $255.0 $240.6 $273.5 $284.4 $455.6 $428.4 $445.6 Deferred revenue adjustment $0.1 $0.1 $0.1 $1.9 $3.4 $2.1 $15.7 $3.0 $1.4 Adjusted Revenue(1)(2) $242.4 $24
Slide 16: Diluted Share Count
Diluted Share Count Comments Note: the analysis is not intended to replace the Treasury Stock Method as required under ASC 260, Earnings per Share 1. Inconsistent with the requirements of ASC 260, but for illustrative purposes, this analysis uses hypothetical shares prices and not the actual average
Slide 17: 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 18: 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 19: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Descriptions Adjusted EBITDA adjustments 1. Reflects the deferred revenues adjustment as a result of purchase accounting associated with businesses that were acquired. Three Months Ended June 30, Six Months Ended June 30, 2. Includes costs incurred to co
Slide 20: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Descriptions Adjusted EBITDA adjustments Twelve Months Ended June 30, 1. Reflects the deferred revenues adjustments recorded as a result of purchase accounting for acquired businesses. (in millions) 2021 2. Includes costs incurred to complete business co
Slide 21: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Descriptions Adjusted Net Income and Adjusted Diluted EPS adjustments 1. Reflects the deferred revenues adjustment as a result of purchase accounting associated with businesses that were acquired. Three Months Ended June 30, Six Months Ended June 30, 2.
Slide 22: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Debt to Net debt June 30, December (in millions) 2021 31, 2020 Total debt outstanding $ 5,533.1 $ 3,547.4 Cash and cash equivalents 2,559.6 257.7 Total net debt outstanding $ 2,973.5 $ 3,289.7 Net Cash Provided by Operating Activities to Free Cash Flow a
Slide 23: 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 Year Ending December 31, 2021 Descriptions (Forecasted) (in million
Slide 24: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures The following table presents our calculation of Adjusted Diluted EPS for the Outlook for 2021 and reconciles this measure to our Net loss for the same period: Net Loss Per Fully Diluted Weighted Shares Outstanding to Adjusted Diluted EPS Year Ending Dece
Slide 25: 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