Clarivate Reports Fourth Quarter and Full Year 2023 Results

LONDON, Feb. 27, 2024

LONDON, Feb. 27, 2024 /PRNewswire/ -- Clarivate Plc (NYSE: CLVT) (the "Company" or "Clarivate"), a leading global provider of transformative intelligence, today reported results for the fourth quarter and full year ended December 31, 2023.

Fourth Quarter 2023 Financial Highlights

• Revenues of $683.7 million increased 1.2%, and decreased 0.6% at constant currency⁽²⁾
• Organic revenues increased 0.1% as increases in subscription revenues of 2.6% and re-occurring revenues of 3.8% were offset by a decline in transactional and other revenues of 8.3%
• Net loss attributable to ordinary shares of $863.0 million due to the $844.7 non-cash impairment of goodwill and intangible assets; Net loss per diluted share of $1.30
• Adjusted net income⁽¹⁾ of $163.4 million decreased 0.4%; Adjusted diluted EPS⁽¹⁾ of $0.23 increased 4.5% or $0.01
• Adjusted EBITDA⁽¹⁾ of $298.2 million decreased 2.0%; Adjusted EBITDA Margin⁽¹⁾ of 43.6% decreased 150 basis points
• Net cash provided by operating activities increased $54.0 million to $190.9 million; Free cash flow⁽¹⁾ increased $36.5 million to $127.0 million

Full Year 2023 Financial Highlights

• Revenues of $2,628.8 million decreased 1.2%, and 2.1% at constant currency⁽²⁾, driven primarily by the divestiture of MarkMonitor in October 2022, for which there were no comparable amounts in the current year period
• Organic revenues increased 0.3% as increases in subscription revenues of 2.4% and re-occurring revenues of 0.2% were offset by a decline in transactional and other revenues of 5.4%
• Net loss attributable to ordinary shares of $986.6 million improved from a loss of $4,035.6 million for the full year 2022 due to a $3,469.2 million reduction of non-cash impairment charges of goodwill and intangible assets; Net loss per diluted share of $1.47 improved by $4.77
• Adjusted net income⁽¹⁾ of $599.1 million decreased 4.6%; Adjusted diluted EPS⁽¹⁾ of $0.82 decreased 3.5% or $0.03
• Adjusted EBITDA⁽¹⁾ of $1,117.2 million increased 0.4% and Adjusted EBITDA Margin⁽¹⁾ of 42.5% increased 70 basis points
• Net cash provided by operating activities increased $234.9 million to $744.2 million; Free cash flow⁽¹⁾ increased $195.3 million to $501.7 million

"In 2023, we delivered subscription revenue growth and navigated through market headwinds. We achieved cost synergy targets and generated significant cash flow, which allowed us to increase the pay down of debt and repurchase ordinary shares," said Jonathan Gear, Chief Executive Officer. "With organic revenue growth below our expectations, we launched a multi-year transformation plan to return to market growth rates. The plan outlines how we will continue to make strategic investments to accelerate new product development and strengthen our focus by divesting non-core assets. I am confident we are making the right investments that, when combined with our extensive content, solutions and artificial intelligence capabilities, will drive organic growth and create shareholder value."

Selected Financial Information

The prior year results include MarkMonitor, which was divested on October 31, 2022, for which there are no comparable amounts in the current year periods.