Clarivate (CLVT) The 44th Annual William Blair Growth Stock Conference summary

Strategic business overview

• Operates in three segments: Academia & Government, Intellectual Property, and Life Sciences & Healthcare, each with strong recurring revenue and proprietary content moats.

• Academia & Government segment is on track for 3%-4% organic growth, driven by investments in research integrity tools and SaaS-based workflow solutions.

• Intellectual Property segment is refreshing its patent intelligence tools, seeing improved renewal rates and launching new products, targeting mid-single-digit growth.

• Life Sciences & Healthcare, about 20% of revenue, is pivoting to direct value-added real-world data solutions, aiming for high single-digit growth.

• Combined, these initiatives target a blended 4%-6% annual organic growth rate by 2026.

Financial model and capital allocation

• Business model features high EBITDA margins, low CapEx, and strong free cash flow conversion.

• Achieved net debt under 4x, with a long-term target of just under 3x.

• Capital allocation now considers buybacks and M&A tuck-ins, following improved leverage and removal of convertible preferred shares.

• Predictable mid-single-digit organic growth is expected to drive high single-digit EBITDA and low-teens EPS growth.

Execution and organizational transformation

• Restructured around three core segments, improving customer alignment and leadership.

• Enhanced product innovation and customer service, especially in Web of Science and patent intelligence.

• Focused on building a stable, predictable business with recurring revenue streams.