Slide 1: Q3 2024 Earnings Call
Q3 2024 Earnings Call November 6, 2024
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 © 2024 Clarivate. All rights reserved. 4
Slide 5: Business Review
Business Review Matti Shem Tov Chief Executive Officer
Slide 6: CEO's Comprehensive Business Review
CEO’s Comprehensive Business Review Strategy and Product Deep Dives Conducted deep dive sessions across all segments, covering market dynamics, 90 Day Activities product portfolios, AI strategy, key growth initiatives and financial performance Conducted Comprehensive Business Review Execution Assess
Slide 7: Exceptional Foundation To Drive Long-Term Sustainable Growth
Exceptional Foundation To Drive Long-Term Sustainable Growth Scaled Information Services Provider Comprehensive, mission critical solutions across the innovation value chain Market Leading Solutions Best-in-class data and SaaS workflow solutions, e.g. ProQuest One, Web of Science, Derwent, Corte
Slide 8: Meaningful Opportunity To Renew Focus and Improve Business Performance
Meaningful Opportunity To Renew Focus and Improve Business Performance Declining and Volatile Transactional Revenue Opportunity to rationalize solutions with declining revenue and negligible cash flow Sub Optimal Go-To-Market Motion Opportunity to excel sales execution and commercial models Near t
Slide 9: 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 Streamline solutions port
Slide 10: Financial Review
Financial Review Jonathan Collins Chief Financial Officer
Slide 11: Q3 and YTD 2024 Financial Results
Q3 and YTD 2024 Financial Results Changes from Prior Year Revenues $m except per share data Q3 ‘24 Q3 ‘23 Change YTD ‘24 YTD ‘23 Change • Q3 decline due to transactional revenue and impact of the Valipat Revenues $622 $647 $(25) $1,894 $1,945 $(51) divestiture in April Income / (Loss) from Operation
Slide 12: Q3 2024 Revenues and Adj. EBITDA
Q3 2024 Revenues and Adj. EBITDA1 Changes from Prior Year Organic Year + Better - Worse $ millions • Transactional revenue decline of Revenues 14% caused 2.6% total decline Adj. EBITDA1 • Revenue decline partially offset by $647 lower operating expenses $1 $622 Inorganic ($17) • Valipat divestiture
Slide 13: YTD 2024 Revenues and Adj. EBITDA
YTD 2024 Revenues and Adj. EBITDA1 Changes from Prior Year Organic Year + Better - Worse $ millions • ACV / subs revenue growth at 1% Revenues Adj. EBITDA1 • Transactional revenue decline of 9% caused 1.5% total decline $1,945 • Revenue flowed through to EBITDA on essentially flat $1,894 operating e
Slide 14: Q3 and YTD 2024 Cash Flow
Q3 and YTD 2024 Cash Flow Changes from Prior Year Free Cash Flow 1 $m Q3 ‘24 Q3 ‘23 Change YTD ‘24 YTD ‘23 Change • Q3 growth driven by working capital / other improvement from Adj. EBITDA1 $264 $281 $(17) $775 $819 $(44) H1 decline One-Time Costs (8) (7) (1) (33) (54) 21 Capital Allocation Interest
Slide 15: Q&A Session
Q&A Session
Slide 16: About Clarivate
About Clarivate © 2024 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
Slide 17: Appendix: Presentation of Certain Non-GAAP Financial Measures
Appendix Presentation of Certain Non-GAAP Financial Measures
Slide 18: 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 19: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Net income (loss) to Adjusted EBITDA and Adjusted EBITDA margin $m Q3 ‘24 Q3 ‘23 YTD ’24 YTD ’23 Descriptions 1. Primarily reflects the net impact of unrealized foreign currency gains and losses, as well as other items that Net income (loss) $(65.6) $12.
Slide 20: 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 Q3 ‘24 Q3 ‘23 YTD ‘24 YTD ‘23 $m except per share data Amount Per Share Amount Per Share Amount Per Share Amount Per Share Net income (loss) and EPS $(65.6)
Slide 21: 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 Q3 ‘24 Q3 ‘23 YTD ’24 YTD ’23 Net cash provided by operating activities $202.9 $163.4 $505.3 $553.3 Capital expenditures (76.6) (61.7) (206.9) (178.6) Free cash