YOU Q3 2024 Earnings

Call Details

• Call Title: Clear Secure Q3 2024 Earnings Call
• Date: November 7, 2024 at 1:00 PM UTC
• Management Team:
  • Caryn Seidman Becker (Co-Founder, Chair, and Chief Executive Officer)
  • Ken Cornick (Co-Founder, President, and Chief Financial Officer)

Call Summary

Financial Performance

• Total cumulative enrollments are now over 27 million, up 2.2 million in the quarter.
• Active Clear Plus members grew by 55,000 in the quarter.
• Incremental operating income margins were 63% and incremental EBITDA margins were 50% for the period.
• Gross dollar retention was 89%, up 100 basis points year-over-year.
• Q3 included a $182 million cash outflow for the annual payment to the credit card partner.
• Bookings growth accelerated in Q3 driven by airport channel improvements, pricing, retention, and increased contribution from PreCheck and ClearVerified.

Guidance

• The company expects to end the year with around 30 million members.
• The company expects 2024 free cash flow of at least $280 million, up 40% year-over-year.
• Q4 revenue guidance is $202 to $204 million and Q4 total bookings guidance is $224 to $226 million.
• The company expects to be in roughly 59 airports by year-end and to have over 75 total PreCheck locations.
• The company expects Q4 net ads to be up sequentially from Q3.
• Ambassador compensation changes will be implemented over the next few quarters and are expected to be largely complete by Q1 with potential bleed into Q2.