Clarivate Plc · NYSE:CLVT
Clarivate — Q1 2025 Earnings Presentation
28 slides from Clarivate's earnings presentation, Apr 29, 2025
Slide 1: Q1 2025 Earnings Call
Q1 2025 Earnings Call Apr 29, 2025
Slide 2: Safe Harbor Statement and Non-GAAP Financial Measures
Safe Harbor Statement and Non-GAAP Financial Measures 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
Slide 3: Safe Harbor Statement and Non-GAAP Financial Measures
Safe Harbor Statement and Non-GAAP Financial Measures Non-GAAP Financial Measures This presentation contains financial measures that have not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Incom
Slide 4: Agenda
Agenda Business Review Matti Shem Tov Chief Executive Officer Financial Review Jonathan Collins Executive Vice President and Chief Financial Officer Q&A © 2025 Clarivate. All rights reserved. 4
Slide 5: Business Review
Business Review Matti Shem Tov Chief Executive Officer
Slide 6: Q1 2025 Overview
Q1 2025 Overview Academia & Government Revenues Early success in Q1 on new Web of Science $594M Organic ACV: 1.2% ▲ 30 bps sequentially commercial model with 15 customers signing Renewal Rate: 94% ▲ 1% YoY multiyear deals totaling over $80m TCV, 4% YoY ACV CAGR Recurring Organic Revenue Growth: 0.6%
Slide 7: Powering The Largest Libraries In The World With Our Cloud Solutions
Powering The Largest Libraries In The World With Our Cloud Solutions British Library Founded in 1973, national library for the United Kingdom; one of the largest libraries in the world, featuring 170 million items Long standing 20-year partnership; selected to implement next generation library servi
Slide 8: Expanding Our Partnership In Brazil To Advance Research Programs
Expanding Our Partnership In Brazil To Advance Research Programs Coordenação de Aperfeiçoamento de Pessoal de Nível Superior (CAPES) Brazilian government agency serving over 400 higher education and research institutions across the country Long standing 23-year partnership; supporting CAPES to drive
Slide 9: Value Creation Plan Driving Focus, Growth and Innovation
Value Creation Plan Driving Focus, Growth and Innovation Revenue Sales Product & AI Portfolio Business Model Optimization Improved Sales Execution Accelerated Innovation Solutions Rationalization Focus on driving core Drive sales execution, Invest in proprietary assets and Assess strategic alternati
Slide 10: Value Creation Plan on Track
Value Creation Plan on Track Q4 2024 Q1 2025 Q2 2025 H2 2025 • Hired and promoted • A&G | Launched ProQuest • Implement initiative to grow • Introduce agentic AI proven sales leaders and e-Books (subscription and scale customer success capabilities across Clarivate industry experts into platform
Slide 11: Financial Review
Financial Review Jonathan Collins Chief Financial Officer
Slide 12: Q1 2025 Financial Results
Q1 2025 Financial Results Changes from Prior Year Revenues • Decline due to inorganic $m except per share data Q1 ‘25 Q1 ‘24 Change divestitures, disposals, and Fx Revenues $594 $621 $(27) translation impacts partially offset by organic growth Income / (Loss) from Operations (21) 5 (26) Net Income I
Slide 13: Q1 2025 Revenues and Adj. EBITDA
Q1 2025 Revenues and Adj. EBITDA1 Changes from Prior Year Organic Year + Better - Worse $ millions • Return to growth in patent renewal Revenues volumes drove recurring2 organic Adj. EBITDA1 growth of 0.6% and strong cost discipline led to more than full $621 flow through to profit $2 Inorganic Disp
Slide 14: Q1 2025 Cash Flow
Q1 2025 Cash Flow Changes from Prior Year Free Cash Flow 1 $m Q1 ‘25 Q1 ‘24 Change • Results in line with prior year and expectations Adj. EBITDA1 $233 $236 $(3) One-Time Costs2 (23) (19) (4) Capital Allocation Interest (33) (37) 4 • Utilized nearly half of FCF to repurchase 11.7m shares at an Taxes
Slide 15: FY 2025 Guidance
FY 2025 Guidance ~1.5% Organic ACV 1.0% 2.0% Organic ACV • Expect inflection this year as return Recurring ~Flat on product investments will begin to (1.0)% 1.0% materialize Organic Growth2 Recurring Organic Growth ~$2,340m Revenues $2,280m $2,400m • Strategic disposal benefit affects transactional
Slide 16: FY 2025 Revenues and Adj. EBITDA Outlook
FY 2025 Revenues and Adj. EBITDA1 Outlook Changes from Prior Year Organic Year + Better - Worse $ millions • Expect modest revenue decline Revenues due to remaining transactional Adj. EBITDA1 business • Profit headwind due to continued $2,557 Transactional investments in product innovation partially
Slide 17: FY 2025 Cash Flow Outlook
FY 2025 Cash Flow Outlook Changes from Prior Year Free Cash Flow 1 $m 2025 Outlook 2024 Actuals Change • Lower interest, working capital, and capital spending expected to Adj. EBITDA1 ~$970 $1,060 ~$(90) largely offset lower profit to One-Time Costs2 ~(45) (46) ~0 improve FCF conversion by ~1% Inter
Slide 18: Business Model Provides Clear Path to Long-Term Profitable Growth
Business Model Provides Clear Path to Long-Term Profitable Growth Best-In-Class Trusted Provider, Data & Workflow Blue Chip Products Assets Customer Base Scaled Information Services Provider Across The Innovation Value Chain Talented Team Robust With Deep Colleagues Free Cash Flow Expertise © 2025 C
Slide 19: Q&A Session
Q&A Session
Slide 20: Appendix: Presentation of Certain Non-GAAP Financial Measures
Appendix Presentation of Certain Non-GAAP Financial Measures
Slide 21: Presentation of Certain Non-GAAP Financial Measures
Presentation of Certain Non-GAAP Financial 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, impairm
Slide 22: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Net income (loss) to Adjusted EBITDA and Adjusted EBITDA margin $m Q1 ‘25 Q1 ‘24 Descriptions 1. Includes the net impact of foreign exchange gains and losses related to Net income (loss) $(103.9) $(75.0) the remeasurement of balances and other items that
Slide 23: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Net income (loss) and Net income (loss) per share to Adjusted net income and Adjusted diluted EPS Q1 ‘25 Q1 ‘24 $m except per share data Amount Per Share Amount Per Share Net income (loss) and Diluted EPS $(103.9) $(0.15) $(75.0) $(0.11) Amortization rel
Slide 24: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Net cash provided by operating activities to Free cash flow and Free cash flow conversion $m Q1 ‘25 Q1 ‘24 Net cash provided by operating activities $171.2 $176.2 Capital expenditures (60.9) (64.4) Free cash flow $110.3 $111.8 Operating cash flow convers
Slide 25: Reconciliation of Non-GAAP Financial Measures – 2025 Outlook
Reconciliation of Non-GAAP Financial Measures – 2025 Outlook 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: Net income (l
Slide 26: Reconciliation of Non-GAAP Financial Measures – 2025 Outlook
Reconciliation of Non-GAAP Financial Measures – 2025 Outlook The following table presents our calculation of Adjusted diluted EPS for the 2025 outlook and reconciles this non-GAAP measure to our Net income (loss) per share for the same period: Net income (loss) per fully diluted weighted shares outs
Slide 27: Reconciliation of Non-GAAP Financial Measures – 2025 Outlook
Reconciliation of Non-GAAP Financial Measures – 2025 Outlook The following table presents our calculation of Free cash flow and Free cash flow conversion for the 2025 outlook and reconciles these non-GAAP measures to our Net cash provided by operating activities and operating cash flow conversion fo
Slide 28: About Clarivate
About Clarivate © 2025 Clarivate Clarivate is a leading global provider of transformative intelligence. We offer enriched data, insights & analytics, workflow solutions and expert services in Clarivate and its logo, as well as all other the areas of Academia & Government, Intellectual Property and L