YOU Q4 2021 Earnings

Call Details

• Call Title: Clear Secure Q4 2021 Earnings Call
• Date: March 23, 2022 at 12:00 PM UTC
• Management Team:
  • Caryn Seidman Becker (co-founder, chairman and chief executive officer)
  • Ken Cornick (co-founder, president and chief financial officer)

Call Summary

Financial Performance

• Clear generated positive free cash flow of $26 million in Q4 2021 and $42 million for the full year 2021.
• The company reported positive free cash flow for the fourth consecutive year and expects 2022 to be the fifth consecutive year of positive free cash flow.
• Ken stated that reported adjusted EBITDA was negative while free cash flow materially exceeded that negative adjusted EBITDA, highlighting a divergence between EBITDA-based non-GAAP metrics and cash generation.
• Cash and equivalents at 12/31/21 were $644 million after completing two all-cash acquisitions.
• Direct salaries and benefits, the largest component of Airport OPEX, grew 140% in Q4 2021 versus a depressed 2020 comparison.
• Same-store performance for the 33 airports open in all of Q4 2019 showed same-store bookings grew in excess of 50% in Q4 2021 versus Q4 2019 while total airport operating expenses rose around 15% over that period.

Guidance

• Clear expects Q1 FY2022 GAAP revenues of $88 million to $89 million.
• Clear expects Q1 FY2022 total bookings of $103.5 million to $104.5 million, excluding any contribution from TSA PreCheck.
• The company stated that Q1 is expected to be the lowest revenue quarter of fiscal 2022 consistent with historical seasonality.
• Ken expects the operational review for TSA PreCheck to start in the coming weeks, which would initiate a launch timeline over the next several months.
• The company expects a moderating growth rate in expenses in 2022 and therefore expects margin expansion and meaningful free cash flow generation for the year.
• Q1 guidance excludes TSA PreCheck contribution and management emphasized that timing of new airport launches will affect quarterly cadence.