Clear Secure (YOU) Q2 2024 earnings summary

Executive summary

• Added a record 2.3 million members in Q2, with total cumulative enrollments reaching 24.2 million, up 39% year-over-year; Active CLEAR Plus Members grew 15% to 7.1 million.

• Revenue for Q2 2024 rose 25% year-over-year to $186.7M, driven by growth in CLEAR Plus Members and pricing increases.

• Launched new technology enhancements, including faster verifications and face-first technology, and rolled out CLEAR Perks to improve member experience.

• Announced plans for a formal airport innovation campaign and expanded partnerships for CLEAR Verified in retail, healthcare, and financial services.

• Quarterly and special dividends were paid, and $150M of Class A shares were repurchased in the first half of 2024.

Financial highlights

• Q2 2024 revenue: $186.7M (+25% YoY); six-month revenue: $365.8M (+30% YoY).

• Adjusted EBITDA for Q2 2024 was $47.5M (25% margin), up from $20.0M (13% margin) in Q2 2023; adjusted EBITDA grew 137% year-over-year.

• Net income for Q2 2024 was $38.6M, up from $8.0M in Q2 2023, with a 21% margin.

• Free cash flow for the first half of 2024 was $187.7M, up from $118.0M in the prior year period; Q2 cash flow from operations was $114.6M, free cash flow $110.1M, up 65% year-over-year.

• Cash and marketable securities totaled $669.6M as of June 30, 2024.

Outlook and guidance

• Q3 revenue expected at $193–$195 million, bookings at $220–$222 million, representing 21% and 15% growth, respectively.

• Fiscal year free cash flow growth guidance raised to at least 40% year-over-year, or $280 million.

• Q3 will see negative free cash flow due to annual repayment to credit card partner, consistent with prior years.

• Management expects continued growth in enrollments and platform usage, supported by new partnerships and product launches.

• Sufficient liquidity and capital resources are expected to fund operations, dividends, and share repurchases for at least the next 12 months.