Clear Secure (YOU) Q3 2024 earnings summary

Executive summary

• Focused on improving member experience, scaling TSA PreCheck, and expanding Clear Verified, with foundational partnerships and new hardware to drive growth and efficiency.

• Revenue for Q3 2024 was $198.4M, up 24% year-over-year, driven by CLEAR Plus member growth and pricing increases.

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

• Cumulative enrollments exceeded 27 million, with active CLEAR Plus members growing by 55,000 in the quarter.

• 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 (+41% YoY); adjusted EBITDA: $60.2M (30% margin).

• Cumulative enrollments exceeded 27 million, up 2.2 million in the quarter.

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

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

• Q3 2024 EPS (Class A, basic/diluted): $0.25; adjusted net income per share: $0.30.

Outlook and guidance

• Expect to end 2024 with around 30 million members.

• Q4 revenue guidance of $202–$204 million and total bookings of $224–$226 million.

• Anticipate Q4 net member adds to be up sequentially from Q3.

• Quarterly dividend of $0.125 per share declared for Q4 2024.

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