Clarivate Plc · NYSE:CLVT
Clarivate — Q4 2024 Earnings Presentation
32 slides from Clarivate's earnings presentation, Feb 19, 2025
Slide 1: Q4 2024 Earnings Call
Q4 2024 Earnings Call February 19, 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 which have not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Inco
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: Earnings Call Objectives
Earnings Call Objectives 1 2 3 4 Value Creation Plan Strategic Review 2024 Results 2025 Outlook Provide additional detail Commenced strategic Summary and analysis Provide financial guidance and key initiatives review of portfolio of financial results including VCP implications © 2025 Clarivate. All
Slide 7: Value Creation Plan To Drive Focus, Growth and Innovation
Value Creation Plan To Drive 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 alternat
Slide 8: Focus On Driving Core Subscription and Re-occurring Revenue Improving Predictability
Focus On Driving Core Subscription and Re-occurring Revenue Improving Predictability A&G Books | Accelerate Transition From Transactional To e-Book Subscriptions Business Model Optimization Launched ProQuest e-Books, largest corpus of e-Book titles, ~700K through subscription- based platform in Febr
Slide 9: Drive Sales Execution, Customer Engagement And Retention
Drive Sales Execution, Customer Engagement And Retention Empower The Sales Organization Through Proven Leadership Business Model Optimization Hired and promoted proven sales leaders and industry experts into key leadership roles, strengthening go-to-market capabilities and driving closer alignment w
Slide 10: Invest In Proprietary Assets And Drive Development Velocity Through Customer Collaboration
Invest In Proprietary Assets And Drive Development Velocity Through Customer Collaboration A&G | Leverage Academic AI To Drive Innovation Business Model Optimization Accelerate development of Clarivate Academic AI technology platform, leveraging our proprietary and curated data assets to develop nov
Slide 11: Assess Strategic Alternatives To Increase Execution Focus And Optimize Capital Allocation
Assess Strategic Alternatives To Increase Execution Focus And Optimize Capital Allocation Evaluating Strategic Options Business Model Optimization Assess potential divestitures, including part of or an entire segment, to unlock value for shareholders; retained advisors to actively evaluate and pursu
Slide 12: Value Creation Plan Key Milestones
Value Creation Plan Key Milestones Q4 2024 Q1 2025 Q2 2025 H2 2025 • Hired and promoted • A&G | Launch ProQuest e- • Implement initiative to grow • A&G | Complete disposal of proven sales leaders and Books (subscription and scale customer success transactional books sales industry experts into pla
Slide 13: Financial Review
Financial Review Jonathan Collins Chief Financial Officer
Slide 14: Q4 and FY 2024 Financial Results
Q4 and FY 2024 Financial Results Changes from Prior Year Revenues $m except per share data Q4 ‘24 Q4 ‘23 Change FY 24 FY 23 Change • ~¾ of Q4 and ~½ of FY decline attributed to divestitures Revenues $663 $684 $(21) $2,557 $2,629 $(72) Net Income Income / (Loss) from Operations (62) (788) 726 (276) (
Slide 15: Q4 2024 Revenues and Adj. EBITDA
Q4 2024 Revenues and Adj. EBITDA1 Changes from Prior Year Organic Year + Better - Worse $ millions • Rate of decline pared from (1.5%) Revenues Q3 YTD to (0.7%) in Q4 on Adj. EBITDA1 improved transactional sales $684 Inorganic • Valipat and ScholarOne ($5) $663 divestitures net of nominal ($15) ($1)
Slide 16: FY 2024 Revenues and Adj. EBITDA
FY 2024 Revenues and Adj. EBITDA1 Changes from Prior Year Organic Year + Better - Worse $ millions • Revenue decline was entirely Revenues driven by transactional Adj. EBITDA1 • Modest operating cost reduction as efficiencies more than offset $2,629 Recurring2 $2 Transactional ($37) inflation Inorga
Slide 17: Q4 and FY 2024 Cash Flow
Q4 and FY 2024 Cash Flow Changes from Prior Year Free Cash Flow 1 $m Q4 ‘24 Q4 ‘23 Change FY 24 FY 23 Change • FY decline due to lower Adj. EBITDA, higher working capital Adj. EBITDA1 $285 $298 $(13) $1,060 $1,117 $(57) due to timing of payments, and One-Time Costs2 (13) (7) (6) (46) (61) 15 higher
Slide 18: FY 2024 Illustrative Implications of Value Creation Plan Strategic Disposals
FY 2024 Illustrative Implications of Value Creation Plan Strategic Disposals Key Metrics 2024A 2024A Exc. Disposals1 Organic Growth • Strategic disposals were ~70 bps drag on 2024 results Organic Growth (1.4)% ~(0.7)% ▲ ~+70 bps Revenues / Mix • Strategic disposals represent Revenues 2,557 ~2,357 ▼
Slide 19: FY 2025 Guidance
FY 2025 Guidance Mid Point vs. PY ~1.5% Organic ACV 1.0% 2.0% +60 bps Organic ACV • Expect inflection this year as return Recurring ~Flat on product investments will begin to (1.0)% 1.0% ~Flat materialize Organic Growth2 Recurring Organic Growth ~$2,340m Revenues $2,280m $2,400m ($215m) • Strategic
Slide 20: 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 21: 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 22: Shareholder Value Creation Focus
Shareholder Value Creation Focus Strong Foundation To Build Upon Multiple Paths To Drive Shareholder Value Execution of Value Creation Plan • Focus on recurring revenue business lines will improve execution Best-In-Class Trusted Provider, • Drive predictable and recurring organic growth Data & Workf
Slide 23: Q&A Session
Q&A Session
Slide 24: Appendix: Presentation of Certain Non-GAAP Financial Measures
Appendix Presentation of Certain Non-GAAP Financial Measures
Slide 25: 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 acquisition and/or disposal-relat
Slide 26: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Net income (loss) to Adjusted EBITDA and Adjusted EBITDA margin $m Q4 ‘24 Q4 ‘23 FY ’24 FY ’23 Descriptions 1. Includes the net impact of unrealized foreign Net income (loss) $(191.8) $(843.9) $(636.7) $(911.2) currency gains and losses and other items t
Slide 27: 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 Q4 ‘24 Q4 ‘23 FY ’24 FY ‘23 $m except per share data Amount Per Share Amount Per Share Amount Per Share Amount Per Share Net income (loss) and EPS $(191.8)
Slide 28: 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 Q4 ‘24 Q4 ‘23 FY ’24 FY ’23 Net cash provided by operating activities $141.3 $190.9 $646.6 $744.2 Capital expenditures (82.2) (63.9) (289.1) (242.5) Free cash fl
Slide 29: 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 30: 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 31: 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 for the same period: Net cash provide
Slide 32: 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