Clarivate Plc · NYSE:CLVT
Clarivate — William Blair's 42nd Annual Growth Stock Conference (June 2022)
23 slides from Clarivate's conference presentation, Jun 9, 2022
Slide 1: William Blair Conference Investor Presentation
William Blair Conference Investor Presentation June 9, 2022
Slide 2: Safe Harbor Statement and Non-GAAP Financial Measures
Safe Harbor Statement and Non-GAAP Financial Measures 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,
Slide 3: Jerre Stead, Executive Chair & Chief Executive Officer
Jerre Stead Executive Chair & Chief Executive Officer
Slide 4: The Clarivate Story
The Clarivate Story 2022 – 2023 • Launched ‘One Clarivate’ • Targeting organic growth rate of 2021 ~6.5% (+200 bps) • Outlined ‘One Clarivate’ • Adjusted EBITDA Margin • Launched inside sales expansion of ~300-500 bps • Continued inorganic growth • Poised to achieve mid-term 2019 – 2020 targets and
Slide 5: Business model provides clear path to long-term profitable growth
Business model provides clear path to long-term profitable growth Recurring subscription revenue with high Recurring revenue retention and revenue visibility + profitable ‘Build once, sell many times’ creates incremental growth significant operating leverage Low capital requirements allow high cash
Slide 6: Implemented One Clarivate
Implemented One Clarivate Over $100B of Addressable Opportunity Our strategy to capture growth opportunity while increasing Academia & Government Life Sciences & Healthcare customer delight Academia; Applied R&D; Pharma; Healthcare; Publishing; Gov’t; Non-Profit ~$1.36B Medical Devices ~$590M With t
Slide 7: Committed to Sustainability
Committed to Sustainability Goal: carbon neutral by 2024 Aiming to be listed on DJ Sustainability Index and FTSE 4 GOOD Index based on 2023 performance 7
Slide 8: Jonathan Collins, Executive Vice President & Chief Financial Officer
Jonathan Collins Executive Vice President & Chief Financial Officer
Slide 9: FY 2022 Quarterly Progression
FY 2022 Quarterly Progression Expect normal revenue Revenue Phasing seasonality with elevated $ millions levels in Q2 and Q4 due to $900 transactional sales Anticipate organic growth $800 rate to progressively improve ~$690 $700 $662 through the year Q2 organic growth expected $600 at ~5.5% to
Slide 10: FY 2022 Outlook
FY 2022 Outlook Affirming full year guidance Full Year Guidance Ranges ranges, which are unchanged Expect revenue growth of ~$2.84B nearly $1B bolstered by full $2.88B year of ProQuest business Revenue $2.8B and ~6.5% organic constant currency growth ~$1.19B Anticipate Adj. EBITDA Adj. EBITDA
Slide 11: Key Financial Metrics Trends
Key Financial Metrics Trends Revenue set to triple in 5 years Revenue Adjusted EBITDA bolstered by M&A and $ billions $ millions ~$2.8 ~$3.0 improving organic growth ~$1,190 ~6.5% $800 Adj. EBITDA expected to $1.9 increase by ~50% in 2022 and $478 $1.2 4.5% ~ 42% margins are poised to expand $0.
Slide 12: Investment Highlights
Investment Highlights Leading Brands Accomplished Global Leadership Customer Team Base Substantial $100B Free Cash Addressable Flow Market Generation ~80% Significant Subscription / Operating Re-occurring Leverage Revenue 90%+ Subscriber Retention Rates 12
Slide 13: Appendix
(S Clarivate” APPENDIX
Slide 14: 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 generally accepted accounting principles in the United States of America (“US GAAP“), including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net In
Slide 15: Presentation of Certain Non-GAAP Financial Measures
Presentation of Certain Non-GAAP Financial Measures Adjusted EBITDA The use of Adjusted EBITDA instead of US GAAP 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
Slide 16: 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 17: 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 flow is useful to investors because similar measures are
Slide 18: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Descriptions Net Loss to Adjusted EBITDA Adjusted EBITDA adjustments 1. Reflects the deferred revenues adjustment made as a result of purchase accounting prior to the adoption of FASB ASU No. 2021-08, Accounting for Contract Assets and Contract Liabiliti
Slide 19: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Net Loss and Net Loss Per Share to Adjusted Net Income and Adjusted Diluted EPS Year Ended December 31, Year Ended December 31, Descriptions 2021 2020 Adjusted Net Income and Adjusted Diluted EPS adjustments (in millions, except per share amounts); (unau
Slide 20: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Descriptions Net Cash Provided By (Used In) Operating Activities to Free Cash Flow and Adjusted Free Cash Flow Free Cash Flow and Adjusted Free Cash Flow Adjustments 1. Reflects cash payments for costs primarily related to restructuring and Year Ended De
Slide 21: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures The following table presents our calculation of Revenues, net, Adjusted EBITDA and Adjusted EBITDA Margin for the Outlook for 2022 and reconciles this measure to Revenues for the same period: Revenues, Net Variance Increase/(Decrease) Percentage of Facto
Slide 22: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures The following table presents our calculation of Adjusted Diluted EPS for the FY2022 Outlook 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 Decemb
Slide 23: 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 FY2022 Outlook and reconciles this measure to our Net cash provided by operating activities for the same period: Net Cash Provided by Operating Activities
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