Clear Secure (YOU) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was $198.4M, up 24% year-over-year, driven by growth in CLEAR Plus members, pricing increases, and foundational partnerships to drive future growth.

• Net income for Q3 2024 was $38.0M, a 41% increase from $26.9M in Q3 2023.

• Over 27 million members on the platform, with strong enterprise adoption and integration with partners like Home Depot and LinkedIn.

• Rollout of new Face First Envy hardware has delivered three times faster verification and fewer steps for users.

• The company repurchased 12M shares for $225.2M and paid regular and special dividends during the period.

Financial highlights

• Q3 2024 revenue: $198.4M (+24% YoY); net income: $38.0M; adjusted EBITDA: $60.2M with a 30% margin.

• Total cumulative enrollments surpassed 27 million, up 2.2 million in the quarter.

• Gross dollar retention was 89%, up 100 basis points year-over-year.

• 2024 free cash flow expected to be at least $280 million, up 40% year-over-year.

• Free cash flow for nine months ended September 30, 2024: $149.8M.

Outlook and guidance

• Expect to end 2024 with around 30 million members.

• Q4 revenue guidance is $202–$204 million, with total bookings of $224–$226 million.

• Management expects existing cash, marketable securities, and operating cash flow to cover working capital, capital expenditures, dividends, and repurchases for at least the next 12 months.

• Continued growth anticipated from new partners and expanded PreCheck and Clear Verified offerings.

• Clear Verified and channel partnerships expected to be significant contributors to gross profit growth in 2025.