Clarivate Plc · Q2 2023 earnings

Briefing

Clarivate's financial performance was impacted by the divestiture of MarkMonitor and lower transactional sales, but operational progress was made with cost savings and integration programs.

Clarivate reported a decrease in revenues by 2.6% to $668.8 million, driven by the divestiture of MarkMonitor. Organic revenues decreased slightly by 0.4%. Net loss attributable to ordinary shares was $141.7 million. Adjusted EBITDA increased by 3.8% to $284.9 million, with an Adjusted EBITDA Margin of 42.6%.

• Revenues decreased by 2.6% to $668.8 million, and 3.5% at constant currency.
• Organic revenues decreased 0.4%, with subscription revenues increasing 2.9% but offset by declines in re-occurring and transactional revenues.
• Net loss attributable to ordinary shares was $141.7 million.
• Adjusted EBITDA increased 3.8% to $284.9 million, with an Adjusted EBITDA Margin of 42.6%.

Headline financials

Revenue & EPS history

Clarivate revised its 2023 outlook due to lower than expected transactional sales of Life Sciences and Healthcare products and consulting services, and lower recurring sales of patent renewals. The company reaffirmed its Adjusted EBITDA Margin outlook, and still expects revenues, Adjusted EBITDA, Adjusted Diluted EPS and Free Cash Flow to be within the original ranges.