YOU Q4 2024 Earnings

Call Details

• Call Title: Clear Secure Q4 2024 Earnings Call
• Date: February 26, 2025 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)
  • Michael Barkin (President)
  • Jennifer Hsu (Chief Financial Officer)

Call Summary

Financial Performance

• Q4 revenue grew 21% year-over-year and total bookings grew 17% year-over-year as reported on the call.
• Full-year adjusted EBITDA margin was 24%, which management stated is up over 1,000 basis points year-over-year on a non-GAAP basis.
• Free cash flow for 2024 was $284 million, which management stated was up 42% year-over-year.
• Total cumulative enrollments ended the year at $28.9 million, with the company stating it is now over 30 million members as of the call.
• Active Clear Plus members increased by 164,000 in the quarter and annual net member retention was 81.4%, which was down 10 basis points sequentially.
• Q4 gross dollar retention was 88.5%, down 50 basis points sequentially, and management said they will report gross dollar retention going forward instead of annual net member retention.

Guidance

• Q1 2025 revenue guidance range was $207 million to $209 million and total bookings guidance range was $202 million to $204 million.
• Full-year 2025 free cash flow was guided to be at least $310 million, which management said includes incremental year-over-year cash taxes and NV spend totaling $30 million.
• Full-year 2025 GAAP P&L tax rate was guided to be between 17% and 20% based on prevailing tax rates and share ownership structure.
• Free cash flow guidance assumes the existing credit card partnership will renew for the final year of the contract through June 2026, which is an explicit guidance assumption.
• Guidance disclosed $25 million incremental year-over-year cash taxes and $9 million of NV CapEx in 2025, with $5 million of that NV CapEx described as incremental year-over-year.
• Management stated that on a comparable basis the free cash flow guidance implies at least 20% free cash flow growth year-over-year.