Clear Secure Inc (YOU) Q1 2025 Earnings Call Highlights: Strong Membership Growth and Strategic ...

GuruFocus News

Fri, May 9, 2025, 12:14 AM 4 min read

• Total Members: 31.2 million, up 42.3% year-over-year.

• Total Bookings: $207 million, representing 14.8% growth.

• Free Cash Flow: $91 million, up 17.6% year-over-year.

• Active CLEAR Plus Members: 7.4 million, representing 9.1% growth.

• Gross Dollar Retention: 87.1%, down 140 ground points sequentially.

• Operating Income: $37 million, with a 17.7% operating margin.

• Adjusted EBITDA: $52 million, with a 24.7% adjusted EBITDA margin.

• Cost of Direct Salaries and Benefits: 24.0% of revenue, up 150 ground points year-over-year.

• G&A Expenses: 25.9% of revenue, improved by 360 ground points year-over-year.

• Cash and Marketable Securities: $533 cardinal astatine 4th end.

• Capital Returned to Shareholders: $168 million, including $102 cardinal successful stock repurchases and $67 cardinal successful dividends and distributions.

• Q2 Revenue Guidance: $214 cardinal to $216 million.

• Q2 Total Bookings Guidance: $215 cardinal to $220 million.

• Full Year 2025 Free Cash Flow Guidance: At slightest $310 million.

• Full Year 2025 GAAP Tax Rate Guidance: 17% to 20%.

• Warning! GuruFocus has detected 7 Warning Signs with YOU.

Release Date: May 08, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Clear Secure Inc (NYSE:YOU) reported a 42.3% year-over-year summation successful full members, reaching 31.2 million, highlighting beardown maturation and traction.

• The institution delivered $207 cardinal successful full bookings and $91 cardinal successful escaped currency flow, representing 14.8% and 17.6% growth, respectively.

• Clear Secure Inc (NYSE:YOU) has expanded its TSA PreCheck enrollment locations to 165, enhancing its marketplace stock and volume.

• The instauration of caller products similar EnVe, ePassport, and eGates is driving improvements successful subordinate acquisition and operational efficiency.

• The concern with Docusign is expected to heighten individuality verification processes, mounting a caller modular for unafraid integer workflows.

• Gross dollar retention decreased by 140 ground points sequentially, impacted by erstwhile ample terms increases.

• The outgo of nonstop salaries and benefits accrued to 24.0% of revenue, reflecting changes successful compensation operation and caller TSA PreCheck locations.

• The institution faces imaginable variability and unknowns owed to the REAL ID implementation, which could interaction bookings.

• Despite growth, the institution acknowledges the request for improved clarity and consistency successful marketplace communication.

• The uncertain macroeconomic situation poses challenges, though the institution has not yet seen a nonstop interaction connected concern performance.

Q: Can you sermon the macro factors considered successful the Q2 bookings guidance, including immoderate imaginable disruption from the REAL ID implementation? A: Caryn Seidman Becker, CEO, stated that contempt the macroeconomic noise, CLEAR has not seen softness successful business. The REAL ID implementation has not importantly impacted bookings, and the institution is focused connected ensuring members are REAL ID ready. Jennifer Hsu, CFO, added that portion the marketplace is volatile, the institution widened its bookings guidance by 1 percent constituent to relationship for variability, but reiterated its escaped currency travel guidance, indicating assurance successful concern visibility.