Slide 1: Q2 2019 Earnings Supplemental Materials
Q2 2019 Earnings Supplemental Materials August 7, 2019 1
Slide 2: Forward-Looking Statements
2 Forward - Looking Statements The accompanying materials contain certain forward - looking statements regarding Clarivate Analytics Plc (the “Company” or “Clarivate”), its financial condition and its results of operations, anticipated synergies and other future expectations . Forward - looking stat
Slide 3: Q2 2019 Financial results
ou Q2 2019 Financial results
Slide 4: Q2 2019 Highlights
Q2 2019 Highlights 4 • Financial results in line with expectations • Adjusted Subscription revenues up 4.9% on a constant currency basis • Adjusted EBITDA $73.2 million, up 8.4% on reported basis • Significant progress on many best - in - class corporate initiatives – Completed first customer deligh
Slide 5: Q2 Results
$242.3 $243.3 Q2'19 Q2'18 $73.2 $67.5 Q2'19 Q2'18 Q2 Results 5 1. Adjusted Revenue excludes the divested IPM business revenues for all years, and adds back $0.1 million of deferred revenue pu rch ase accounting adjustment for Q2’19 and $0.9 million for Q2’18 excluding the Intellectual Property Manag
Slide 6: Q2 Revenue
Q2 Revenue ($ in millions) Q2 2019 Q2 2018 % Change [actual f/x] % Change [constant f/x] Science group $136.1 $132.5 2.7% 3.3% Intellectual property group $106 . 3 $105 . 9 0.4% 1.5% Adjusted Revenue (1) $242.4 $238.4 1.7% 2.5% IPM product line $ - $5.8 - - Deferred revenue adjustment ($0.1) ($0.9)
Slide 7: Q2 Financial summary
Q2 Financial summary ($ in millions) Q2 2019 Q2 2018 % Change [actual f/x] % Change [constant f/x] Revenue $242.3 $243.3 (0.4%) 0.4% Adjusted Revenue (1) $ 2 42 . 4 $238 . 4 1.7% 2.5% Adjusted EBITDA (2) $73 . 2 $ 6 7 . 5 8.4% Adjusted EBITDA margin % 30.2% 28.3% Net loss ($77.8) ($66.9) Net loss pe
Slide 8: First Half 2019 Financial results
8 First Half 2019 Financial results
Slide 9: Q2 YTD Results
$132.4 $130.8 Q2 YTD'19 Q2 YTD'18 $476.6 $470.2 Q2 YTD'19 Q2 YTD'18 Q2 YTD Results 9 1. Adjusted Revenue excludes the divested IPM business revenues for all years, and adds back $0.3 million of deferred revenue pu rch ase accounting adjustment for Q2 YTD’19 and $2.4 million for Q2 YTD’18 excluding I
Slide 10: Q2 YTD Revenue
Q2 YTD Revenue ($ in millions) Q2 YTD 2019 Q2 YTD 2018 % Change [actual f/x] % Change [constant f/x] Science group $265.2 $258.4 2.6% 3.3% Intellectual property group $211 . 4 $211 . 8 (0.2%) 1.2% Adjusted Revenue (1) $476.6 $470.2 1.4% 2.4% IPM product line $ - $12.5 - - Deferred revenue adjustment
Slide 11: Q2 YTD Financial summary
Q2 YTD Financial summary ($ in millions) Q2 YTD 2019 Q2 YTD 2018 % Change [actual f/x] % Change [constant f/x] Revenue $476.3 $480.3 (0.8%) 0.1% Adjusted Revenue (1) $476 . 6 $470 . 2 1.4% 2.4% Adjusted EBITDA (2) $132 . 4 $130 . 8 1.2% Adjusted EBITDA margin % 27.8% 27.8% Net loss ($137.0) ($144.0)
Slide 12: Selected balance sheet items
Selected balance sheet items 12 ($ in millions) June 30, 2019 December 31, 2018 Cash & cash equivalents $43.1 $25.6 Total debt outstanding $1,346 . 3 $2,029.0 Tax receivable agreement (1) $264.6 $ - Net debt $1,303.2 $2,003.4 Gross leverage ratio 4.3x 6.6x Net leverage ratio 4 . 1x 6 . 4x 1. Tax Rec
Slide 13: Historical annualized contract value (ACV)
Historical annualized contract value (ACV) (1) 1. Annual Contract Value (“ACV”) is the annualized value for a 12 - month period following a given date of all subscription - based cli ent license agreements, assuming that all license agreements that come up for renewal during that period are renewed.
Slide 14: 2019 Outlook
2019 Outlook ($ in millions, except percentages) Low Mid High Adjusted Revenue (1) $ 962 $ 979 $995 % Change YoY growth 1.2% 2.9% 4.6% Adjusted EBITDA $290 $300 $310 % Change YoY growth 6.3% 9.8% 13.6% Adjusted EBITDA margin % 30.1% 30.6% 31.2% 1. Adjusted Revenue adds back $0.3 million in deferred
Slide 15: Appendix
15 Appendix
Slide 16: Presentation of certain Non-GAAP financial measures
Presentation of certain Non - GAAP financial measures This presentation contains financial measures which have not been calculated in accordance with GAAP, including Adjusted Revenues and Adjusted EBITDA, because they are a basis upon which our management assesses our performance and we believe they
Slide 17: Presentation of certain Non-GAAP financial measures
Presentation of certain Non - GAAP financial measures The use of Adjusted EBITDA instead of GAAP measures has limitations as an analytical tool, and you should not consider Adjusted EBITDA in isolation, or as a substitute for analysis of the Company’s results of operations and operating cash flows a
Slide 18: Presentation of certain Non-GAAP financial measures
Presentation of certain Non - GAAP financial measures Standalone Adjusted EBITDA We are required to report Standalone Adjusted EBITDA pursuant to the reporting covenants contained in the Company’s Credit Agreement and Indenture . As a public company, we are required to report Standalone Adjusted EBI
Slide 19: Reconciliation of Non-GAAP financial measures (Q2)
Reconciliation of Non - GAAP financial measures and required reported data Reconciliation ($ in millions) June 30 QTD 2019 QTD 2018 LTM 2019 Revenue, Net $ 242.3 $ 243.3 $ 964.5 (+) Deferred revenue adjustment 0.1 0.9 1.1 ( - ) IPM Divested revenue - (5.8) (7.8) Adjusted revenue $ 242.4 $ 238.4 $ 95
Slide 20: Reconciliation of Non-GAAP financial measures (YTD)
Reconciliation of Non - GAAP financial measures and required reported data Reconciliation ($ in millions) June 30 YTD 2019 YTD 2018 LTM 2019 Revenue, Net $ 476.3 $ 480.3 $ 964.5 (+) Deferred revenue adjustment 0.3 2.4 1.1 ( - ) IPM Divested revenue - (12.5) (7.8) Adjusted revenue $ 476.6 $ 470.2 $ 9
Slide 21: 2018 Quarterly financial summary
2018 Quarterly financial summary ($ in millions) Q1 2018 Q2 2018 Q3 2018 Q4 2018 Science Group $125.9 $132.5 $131.8 $137.9 Intellectual Property Group $105 . 9 $105.9 $103.9 $107.6 Adjusted Revenue (1) $231.8 $238.4 $235.7 $245.5 IPM Product Line $6.7 $5.8 $7.8 $ - Deferred revenue adjustment ($1.5)
Slide 22: Diluted share count
Diluted share count Share price as of June 28, 2019 $15.38 Source: Yahoo Finance Number Type Shares Clarivate PLC ordinary shares outstanding as of June 30, 2019 (1) 305,268,497 Management options as of June 30, 2019 (2) 25,252,934 Public warrants (3) 34,500,000 Private placement warrants (4) 18,300
Slide 23: Thank you
Clarivate Analytics Thank you