Clarivate Reports Second Quarter 2023 Results

LONDON, Aug. 3, 2023

LONDON, Aug. 3, 2023 /PRNewswire/ -- Clarivate Plc - (NYSE: CLVT) (the "Company" or "Clarivate"), a global leader in connecting people and organizations to intelligence they can trust, today reported results for the second quarter.

Second Quarter 2023 Financial Highlights

• Revenues of $668.8 million decreased 2.6%, and 3.5% at constant currency⁽¹⁾, driven primarily by the divestiture of MarkMonitor in October 2022, for which there were no comparable amounts in the current year period
• Organic revenues⁽¹⁾ decreased 0.4% as an increase in subscription revenues of 2.9% was offset by a decline in re-occurring revenues of 1.6% and transactional and other revenues of 7.5%
• Net loss attributable to ordinary shares of $141.7 million increased $185.4 million driven primarily by the impairment charge in the current year period; Net loss per diluted share of $0.21 decreased by $0.21
• Adjusted Net Income⁽¹⁾ of $152.2 million decreased 7.8%; Adjusted Income per diluted share⁽¹⁾ of $0.21 decreased 4.5% or $0.01
• Adjusted EBITDA⁽¹⁾ of $284.9 million increased 3.8% driven by cost savings from integration programs; Adjusted EBITDA Margin⁽¹⁾ of 42.6% increased 270 basis points
• Net cash provided by operating activities increased $65.2 million to $162.4 million; Free cash flow⁽¹⁾ increased $55.3 million to $104.8 million, allowing for continued deleveraging through further debt reduction and share repurchases 

First Half of 2023 Financial Highlights

• Revenues of $1,297.9 million decreased 3.8%, and 3.3% at constant currency⁽¹⁾, driven primarily by the divestiture of MarkMonitor in October 2022, for which there were no comparable amounts in the current year period
• Organic revenues⁽¹⁾ decreased 0.3% as an increase in subscription revenues of 2.9% was offset by a decline in re-occurring revenues of 1.7% and transactional and other revenues of 7.9%
• Net loss attributable to ordinary shares of $117.0 million decreased $211.5 million driven primarily by the impairment charge in the current year period and lower mark-to-market gain on financial instruments; Net loss per diluted share of $0.17 decreased by $0.10
• Adjusted Net Income⁽¹⁾ of $283.1 million decreased 11.6%; Adjusted Income per diluted share⁽¹⁾ of $0.39 decreased 9.3% or $0.04
• Adjusted EBITDA⁽¹⁾ of $537.6 million increased 0.2% driven by cost savings from integration programs; Adjusted EBITDA Margin⁽¹⁾ of 41.4% increased 160 basis points
• Net cash provided by operating activities increased $225.3 million to $389.9 million; Free cash flow⁽¹⁾ increased $197.5 million to $273.0 million 

"Clarivate continued to deliver on operational progress during the quarter, reinforcing the value proposition of our mission critical solutions across key sectors. The Academia & Government segment delivered improved results following the successful integration of ProQuest and recent product enhancements, which are driving new business, increased usage and higher retention rates," said Jonathan Gear, Chief Executive Officer. "We are taking steps to leverage the power of our portfolio, particularly in the Intellectual Property and  Life Sciences & Healthcare segments, which fell short of expectations this quarter. With an established, resilient business model, and a new organizational structure and leadership well in place to enhance accountability, we remain confident in our strategy to deliver accelerating organic growth and margin expansion, as highlighted in our March Investor Day.  We remain focused on creating value for our customers, colleagues,  and shareholders."  

Selected Financial Information