NYSE$YOU

Clear Secure Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

CLEAR's Q2 2021 results reflected strong growth in bookings and enrollments, driven by the faster-than-expected rebound in travel and the expansion of the Health Pass platform.

CLEAR Secure, Inc. reported a decrease in revenue but a significant increase in total bookings for Q2 2021. The company saw growth in cumulative enrollments and platform uses, with a strong net member retention rate. Health Pass gained traction with new partners and members.

  • Revenue decreased by 8% to $55.2 million, while Total Bookings increased by 102% to $70.0 million.
  • Total Cumulative Enrollments grew by 26% to 6.3 million.
  • Annual CLEAR Plus Net Member Retention was 80.6%, up 340 basis points vs. first quarter 2021.
  • Total Cumulative Platform Uses grew by 19% to 65.5 million.

Headline financials

Total Revenue

$55.2M

Previous: $60M-8.0%
EPS (adj)

$0.20

Previous: $0.39-48.7%
Total Bookings

$70M

No prior period
Total CLEAR Members

6.3M

No prior period
Total Platform Uses

65.5M

No prior period
Gross Dollar Retention

80.6%

No prior period
Capital Expenditures

-$15.2M

No prior period
Free Cash Flow

-$17.2M

No prior period
Net Income

-$2M

Previous: $22.3M-109.0%
Operating Income

-$37.7M

Previous: $22.3M-269.4%
Gross Profit

-$15.8M

Previous: $46.5M-134.1%
Cash & Equivalents

$168M

No prior period
Total Assets

$304M

No prior period

Revenue & EPS history

Clear · Revenue · Quarterly

$55.2M

Q2 2021-8%vs Q2 2020
Beat estimate in 5 of 11 quarters(45%)
ActualEstimate

Forward guidance

The company expects third quarter 2021 revenue of $65.5-66.0 million and Total Bookings of $90-95 million. The guidance excludes any contribution from the launch of our TSA PreCheck enrollment service, which we expect in the fourth quarter of 2021. They are closely monitoring potential impacts of the Delta variant on travel trends which could impact our results.

Tailwinds

  • Revenue is expected to be between $65.5 and $66.0 million.
  • Total Bookings are projected to be between $90 and $95 million.
  • The company continues to experience significant strength across sales channels.
  • Net member retention remains strong.
  • Positive variances in Total Bookings may lead to positively benefitting operating cash flow and free cash flow.

Headwinds

  • Certain expenses such as Cost of Revenue Share and Sales and Marketing have variable components and can fluctuate based on the level of Total Bookings in the quarter.
  • Positive variances in Total Bookings may lead to near term negative variances in profitability metrics.
  • Operating expenses will continue to be incurred in the third quarter associated with the future launch of the TSA PreCheck program.
  • The potential impacts of the Delta variant on travel trends could impact the company's results.
  • Revenue and Total Bookings guidance exclude any contribution from the launch of our TSA PreCheck enrollment service.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+2.3%

Avg return

Earnings day

+4.8%

Avg return

5 days after

+3.4%

Avg return

30 days after

53%

10 / 19 earnings

Positive

+39.3%

Q4 2025

Best reaction

-10.7%

Q2 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.7%-3.3%-8.3%
Q4 2025+39.3%+43.5%+41.7%
Q3 2025+0.8%+17.2%+5.4%
Q1 2025-0.2%-4.2%+2.7%
Q4 2024-6.5%+0.0%+11.7%
Q3 2024-0.3%-24.6%-25.7%
Q2 2024-9.6%+13.3%+42.3%
Q1 2024+0.2%-3.8%-5.4%
Q4 2023+4.5%+2.7%+15.5%
Q3 2023-1.0%+10.1%+25.1%
Q2 2023-0.1%-0.7%-5.7%
Q1 2023+3.7%-1.1%+2.5%
Q4 2022-6.2%-4.6%-14.9%
Q3 2022+2.9%+25.1%+22.9%
Q2 2022+3.4%-5.1%-14.3%
Q1 2022+12.3%+36.6%-7.8%
Q4 2021+10.0%+14.0%+34.3%
Q3 2021-2.2%-14.2%-41.8%
Q2 2021-10.7%-9.0%-15.5%
Q1 2021
Q4 2020
Q3 2020
Q2 2020
Q1 2020

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