YOU Q1 2022 Earnings

Call Details

• Call Title: Clear Secure Q1 2022 Earnings Call
• Date: May 16, 2022 at 12:00 PM UTC
• Management Team:
  • Caryn Seidman Becker (Chief Executive Officer)
  • Ken Cornick (Chief Financial Officer)

Call Summary

Financial Performance

• Revenue was up 79% in Q1 versus prior year on a reported basis.
• Bookings were up 74% in Q1 versus prior year on a reported basis.
• The company generated roughly $20 million of free cash flow in the quarter.
• Adjusted EBITDA for the quarter was roughly break-even.
• Net member retention was 95.3% in the quarter, with gross retention described in the low- to mid-80s.
• Cash and equivalents were $663 million as of 3/31.
• Member growth was characterized as up more than 100% year-over-year and airport activity was described as up double versus 2019.

Guidance

• Q2 GAAP revenue guidance is $99 to $101 million.
• Q2 total bookings guidance is $110 to $114 million excluding any contribution from TSA PreCheck.
• The company expects to go live with TSA PreCheck in the next several months.
• The company expects moderating year-over-year expense growth in 2022 after prior platform investments and staffing normalization.
• The company expects this to be its fifth consecutive year of free cash flow generation.
• The announced $10 retail price increase to $189 for new Clear Plus members will not apply to existing members in 2022, who will be grandfathered at $179.
• Net retention is expected to normalize to the upper 80s over time, above pre-pandemic levels.