Clarivate Plc · NYSE:CLVT
Clarivate — Q3 2021 Earnings Presentation
28 slides from Clarivate's earnings presentation, Oct 28, 2021
Slide 1: Q3 2021 Earnings Supplemental Materials
Q3 2021 Earnings Supplemental Materials October 28, 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, tr ends, contingencies, financial performance, or fin
Slide 3: Financial Highlights
Financial Highlights Three Months Ended September 30, 20211 Delivering on Our Promises Nine Months Ended September 30, 20211 • 5% YTD adjusted organic revenue1,2 growth: ▪ On target to achieve full year 2021 organic +55% +54% +3% revenue growth of 6% to 6.5% +65% +64% +5% $442M $442M $9M $1,316M $1,
Slide 4: Q3 Business Highlights
Q3 Business Highlights • Announced $250M share repurchase program ▪ Extended through January 31, 2022 • Acquired Bioinfogate ▪ Reinforces position as premier provider of end-to-end research intelligence solutions for life sciences • Continue to expand new product launches and product enhancements wi
Slide 5: Q3 Financial Results
Q3 Financial Results Growth driven by the acquisition of CPA Global, increased organic subscription and transactional revenue, and cost savings initiatives, which drove significant Adjusted EBITDA growth and Margin expansion Reported Revenue Adjusted Revenue1 Adjusted EBITDA 1 +55% actual f/x +54% a
Slide 6: YTD Nine Months Ended September Financial Results
YTD Nine Months Ended September Financial Results Organic revenue growth of 5% with strong growth in Adjusted EBITDA; increases in revenue and over-delivering on cost savings initiatives are driving Adjusted EBITDA Margin expansion Reported Revenue Adjusted Revenue1 Adjusted EBITDA 1 +65% actual f/x
Slide 7: Financial Highlights
Financial Highlights Three Months Ended September 30, Nine Months Ended September 30, % % Q3’21 Commentary ($ in millions except per share data) 2021 2020 Change 2 Organic2 2021 2020 Change 2 Organic2 Acquisitions, higher life sciences and healthcare data solutions, and CompuMark Subscription revenu
Slide 8: Selected Balance Sheet and Cash Flow Information
Selected Balance Sheet and Cash Flow Information ($ in millions) September 30, 2021 December 31, 2020 $ Change Commentary on Change Primarily proceeds from June 2021 equity offering ($0.7B) and mandatory convertible preferred offering ($1.4B), Cash and cash equivalents $2,480 $258 $2,222 with procee
Slide 9: Delivering Increased Cost Savings
Delivering Increased Cost Savings Permanent cost savings of $210 million Total Savings Permanent Savings Completed Through Timing September 2021 2019 cost savings program $75 million $75 million $75 million Completed $75 million run-rate COVID related $30 million At least $5 million $5 million Compl
Slide 10: Reaffirmed 2021 Outlook
Reaffirmed 2021 Outlook* Continue to expect a strong fourth quarter with organic revenue growth towards the upper- end of target range of 6% to 8% ($ in millions) Current Outlook Low High Adjusted Revenue $1,800 $1,840 Adjusted EBITDA $795 $825 Adjusted EBITDA margin % 44% 45% Adjusted Diluted EPS1
Slide 11: YTD 2021 Sustainability Highlights
YTD 2021 Sustainability Highlights Good progress has been made in the first nine months of the year against our sustainability goals, including publishing our first sustainability report Q1-Q3 highlights Q4 focus Governance: Governance: • Board diversity statement published • Complete colleague enga
Slide 12: 2021 Virtual Investor Day
2021 Virtual Investor Day Please join us on November 8th Product Demo Day (10 am – 2 pm ET) – Covering academia, life sciences and healthcare, corporate, IP and Project Singularity November 9th Investor Day (10 am – 1 pm ET) – Business updates from: Jerre Stead, Executive Chairman and CEO Gordon Sam
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 US GAAP, including Adjusted Revenues and Adjusted EBITDA, because they are a basis upon which our management assesses our performance and we believe the
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 measures has limitations as an analytical tool, and you should not consider Adj usted EBITDA in isolation, or as a substitute for analysis of the Company’s results of operations and oper
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 fr ee 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 fre
Slide 18: Quarterly Financial Summary
Quarterly Financial Summary ($ in millions) Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Revenues, net $243.0 $255.0 $240.6 $273.5 $284.4 $455.6 $428.4 $445.6 $442.1 Deferred revenue adjustment $0.1 $0.1 $1.9 $3.4 $2.1 $15.7 $3.0 $1.4 $0.1 Adjusted Revenue1,2 $243.1 $255.1
Slide 19: Diluted Share Count
Diluted Share Count Comments Note: Th e analysis is not intended to replace the Treasury Stock Method as required under ASC 260, Earnings per Share 1. Inconsistent with the requiremen ts of ASC 260, but for illustrative purposes, this analysis uses hypothetical shares prices and not the actual avera
Slide 20: Reconciliation of Non-GAAP Financial Measures and Required Reported Data
Reconciliation of Non-GAAP Financial Measures and Required Reported Data 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 transaction
Slide 21: 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 22: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Three Months Ended Nine Months Ended Descriptions September 30, September 30, Adjusted EBITDA adjustments (in millions) 2021 2020 2021 2020 Net income (loss) attributable to ordinary shares $ 0.9 $ (182.0) $ (105.3) $ (336.9) 1. Reflects the deferred rev
Slide 23: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Twelve Months Descriptions Ended September 30, Adjusted EBITDA and Standalone Adjusted EBITDA Adjustments (in millions) 2021 1. Reflects the deferred revenues adjustments recorded as a result of purchase accounting Net loss attributable to ordinary share
Slide 24: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Descriptions Adjusted Net Income and Adjusted Diluted EPS adjustments Three Months Ended Three Months Ended 1. Reflects the deferred revenues adjustment as a result of purchase September 30, September 30, accounting. 2021 2020 2. Includes costs incurred
Slide 25: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Debt to Net Debt September 30, December 31, (in millions) 2021 2020 Total debt outstanding $ 5,368.5 $ 3,547.4 Cash and cash equivalents 2,479.9 257.7 Total net debt outstanding $ 2,888.6 $ 3,289.7 Net Cash Provided By (Used In) Operating Activities to F
Slide 26: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures The following table presents our calculation of Adjusted Revenues, net, Adjusted EBITDA and Adjusted EBITDA Margin for the Outlook for 2021 and reconciles this measure to Revenues for the same period: Adjusted Revenues, Net Year Ending December 31, 2021
Slide 27: 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 28: 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