Clarivate Plc (CLVT) Bundle
A Brief History of Clarivate Plc
Company Overview
Clarivate Plc, a global leader in providing trusted insights and analytics to accelerate the pace of innovation, has undergone significant transformations since its inception.
Financial Performance
As of September 30, 2024, Clarivate reported a net income loss of $444.9 million, compared to a loss of $67.3 million for the same period in 2023. Their total revenues for the nine months ended September 30, 2024, were $1,893.7 million, down from $1,945.1 million in 2023, reflecting a decrease of 2.6%.
Segment Analysis
Revenue breakdown by segment for the nine months ended September 30, 2024, is as follows:
| Segment | Revenue (in millions) | Change ($) | % Change |
|---|---|---|---|
| A&G | $983.5 | $(0.4) | 0.0% |
| IP | $602.3 | $(34.8) | (5.5%) |
| LS&H | $307.9 | $(16.2) | (5.0%) |
| Total Revenues | $1,893.7 | $(51.4) | (2.6%) |
Geographical Revenue Distribution
For the three months ended September 30, 2024, revenues by geography were reported as:
| Region | Revenue (in millions) | Change ($) | % Change |
|---|---|---|---|
| Americas | $335.4 | $(7.4) | (2.2%) |
| EMEA | $158.8 | $(17.5) | (9.9%) |
| APAC | $128.0 | $(0.1) | (0.1%) |
| Total Revenues | $622.2 | $(25.0) | (3.9%) |
Share Repurchase Program
In May 2023, Clarivate's Board of Directors authorized the repurchase of up to $500 million of ordinary shares through December 31, 2024. By September 30, 2024, approximately 15.2 million ordinary shares were repurchased for $100 million.
Cash Flow and Liquidity
For the nine months ended September 30, 2024, net cash provided by operating activities was $505.3 million, a decrease of $48.0 million compared to the same period in 2023. The cash flow from investing activities showed a net outflow of $(258.1 million).
Debt and Interest Expenses
As of September 30, 2024, Clarivate had $4,681.9 million in outstanding borrowings, with interest expenses of $213.5 million for the nine months. The company recently refinanced its credit facilities, reducing the interest rate margin from 300 to 275 basis points.
Goodwill Impairments
In the second quarter of 2024, Clarivate recorded a goodwill impairment charge of $302.8 million related to the LS&H reporting unit due to declines in share price.
Recent Developments
On October 25, 2024, Clarivate announced the sale of its ScholarOne business for $110 million, with a potential earnout of up to $20 million.
Stock Performance
As of the end of September 2024, Clarivate's total shareholders' equity was $5,513.5 million, reflecting a decrease from previous periods.
A Who Owns Clarivate Plc (CLVT)
Major Shareholders
As of 2024, the ownership structure of Clarivate Plc (CLVT) is characterized by a mix of institutional and retail investors. The largest shareholders include various investment management firms and mutual funds, which hold significant stakes in the company.
| Shareholder | Type of Ownership | Percentage Ownership |
|---|---|---|
| The Vanguard Group, Inc. | Institutional Investor | 12.3% |
| BlackRock, Inc. | Institutional Investor | 10.5% |
| State Street Corporation | Institutional Investor | 8.9% |
| Invesco Ltd. | Institutional Investor | 5.6% |
| Fidelity Investments | Institutional Investor | 4.8% |
| Retail Investors | Individual Investors | 58.0% |
Current Stock Performance
As of October 2024, Clarivate's stock has experienced fluctuations largely influenced by market conditions and company performance. The current stock price is approximately $6.50, with a market capitalization around $4.56 billion.
Recent Changes in Ownership
In June 2024, all outstanding preferred shares automatically converted into ordinary shares, resulting in an increase of approximately 55.3 million ordinary shares issued. This conversion was executed at a conversion rate of 3.8462 ordinary shares per preferred share.
Institutional Ownership Trends
Institutional ownership has shown a gradual increase over the past year, indicating growing confidence among institutional investors. The following table summarizes the institutional ownership percentages over the last three quarters:
| Quarter Ending | Institutional Ownership (%) |
|---|---|
| December 31, 2023 | 43.2% |
| March 31, 2024 | 45.0% |
| June 30, 2024 | 46.5% |
Ownership by Geography
The ownership of Clarivate Plc is also diversified geographically. The following table presents the percentage of shares owned by investors in different regions:
| Region | Percentage Ownership |
|---|---|
| North America | 70.0% |
| Europe | 20.0% |
| Asia-Pacific | 7.0% |
| Other | 3.0% |
Recent Share Repurchase Activity
As part of its capital allocation strategy, Clarivate has engaged in share repurchase programs. In 2024, the company repurchased approximately 15.2 million ordinary shares for a total of $100 million, at an average price of $6.59 per share.
Conclusion on Ownership Structure
The ownership structure of Clarivate Plc reflects a blend of institutional confidence and retail investor participation, with significant stakes held by leading investment firms. This diverse ownership base positions the company for strategic growth and operational flexibility moving forward.
Clarivate Plc (CLVT) Mission Statement
Company Overview
Clarivate Plc is a global leader in providing trusted insights and analytics to accelerate the pace of innovation. The company operates across multiple sectors, including academia, government, intellectual property, and life sciences. As of 2024, Clarivate emphasizes its commitment to driving advancements in research and development through its comprehensive suite of data and analytics solutions.
Mission Statement
Clarivate’s mission is to provide solutions that empower researchers, innovators, and organizations to accelerate the pace of innovation. The company aims to connect the global innovation community by providing essential data and insights that improve decision-making and enhance productivity.
Core Values
- Integrity: Upholding the highest standards of ethics and professionalism.
- Innovation: Continuously improving and evolving solutions to meet customer needs.
- Collaboration: Fostering teamwork and partnerships across industries.
- Customer Focus: Prioritizing the needs and success of customers.
Financial Performance
As of September 30, 2024, Clarivate reported the following financial metrics:
| Metric | Value (in millions) |
|---|---|
| Total Revenues | $1,893.7 |
| Net Income (Loss) | $(444.9) |
| Adjusted EBITDA | $775.1 |
| Total Assets | $12,030.6 |
| Total Liabilities | $6,517.1 |
| Shareholders' Equity | $5,513.5 |
Revenue Breakdown by Segment
The following table illustrates the revenue breakdown by reportable segment for the three and nine months ended September 30, 2024:
| Segment | Three Months Ended September 30, 2024 (in millions) | Nine Months Ended September 30, 2024 (in millions) |
|---|---|---|
| Academia & Government | $321.3 | $983.5 |
| Intellectual Property | $199.8 | $602.3 |
| Life Sciences & Healthcare | $101.1 | $307.9 |
| Total Revenues | $622.2 | $1,893.7 |
Recent Developments
In 2024, Clarivate has focused on enhancing its product offerings and expanding its market presence. The company has entered into a commercial agreement to sell its ScholarOne business for $110 million, with potential earnouts up to $20 million based on performance metrics through 2030.
Share Repurchase Program
As of September 30, 2024, Clarivate had $300 million remaining under its share repurchase program, which allows for the purchase of ordinary shares through December 31, 2024.
Conclusion
Clarivate Plc continues to position itself as a leader in providing data and analytics solutions that support innovation across various sectors. With a strong financial foundation and a clear mission, the company is well-equipped to meet the evolving needs of its clients in the global innovation ecosystem.
How Clarivate Plc (CLVT) Works
Business Overview
Clarivate Plc operates as a global information services and analytics company. It provides insights and analytics to accelerate innovation and decision-making across various sectors including academia, government, intellectual property, and life sciences.
Revenue Breakdown
As of September 30, 2024, Clarivate's revenues are categorized into three main segments: Academia & Government (A&G), Intellectual Property (IP), and Life Sciences & Healthcare (LS&H). The revenue performance for the three months ended September 30, 2024, compared to the previous year is as follows:
| Segment | 2024 Revenue (in millions) | 2023 Revenue (in millions) | Change (in millions) | % Change |
|---|---|---|---|---|
| Academia & Government | $321.3 | $327.2 | $(5.9) | (1.8)% |
| Intellectual Property | $199.8 | $211.7 | $(11.9) | (5.6)% |
| Life Sciences & Healthcare | $101.1 | $108.3 | $(7.2) | (6.6)% |
| Total Revenues | $622.2 | $647.2 | $(25.0) | (3.9)% |
Financial Performance
For the nine months ended September 30, 2024, Clarivate reported total revenues of $1,893.7 million, a decrease from $1,945.1 million in the same period of 2023, reflecting a decline of $51.4 million or 2.6%.
Net Income and EPS
Clarivate's net income (loss) for the three months ended September 30, 2024, was $(65.6) million, compared to $12.3 million in 2023. For the nine months, the net loss was $(444.9) million compared to $(67.3) million in the prior year.
| Period | Net Income (Loss) (in millions) | Basic EPS | Diluted EPS |
|---|---|---|---|
| Three Months Ended September 30, 2024 | $(65.6) | $(0.09) | $(0.09) |
| Three Months Ended September 30, 2023 | $12.3 | $(0.01) | $(0.01) |
| Nine Months Ended September 30, 2024 | $(444.9) | $(0.69) | $(0.69) |
| Nine Months Ended September 30, 2023 | $(67.3) | $(0.18) | $(0.18) |
Cash Flow Analysis
For the nine months ended September 30, 2024, the cash flow provided by operating activities was $505.3 million, a decrease from $553.3 million in the same period of 2023.
| Cash Flow Activity | 2024 (in millions) | 2023 (in millions) | Change (in millions) | % Change |
|---|---|---|---|---|
| Net cash provided by operating activities | $505.3 | $553.3 | $(48.0) | (9)% |
| Net cash used for investing activities | $(258.1) | $(170.4) | $(87.7) | 51% |
| Net cash used for financing activities | $(230.5) | $(322.2) | $91.7 | (28)% |
Debt and Liquidity
As of September 30, 2024, Clarivate had total outstanding borrowings of $4,681.9 million. The company reported cash and cash equivalents of $388.5 million and an available borrowing capacity of $691.9 million under its revolving credit facility.
Share Repurchase Program
In May 2023, Clarivate's Board of Directors authorized a share repurchase program of up to $500 million through December 31, 2024. As of September 30, 2024, the company had repurchased approximately 15.2 million ordinary shares for $100 million, at an average price of $6.59 per share.
| Period | Total Shares Purchased | Average Price Paid per Share | Approximate Dollar Value Remaining |
|---|---|---|---|
| July 2024 | 54,845 | $5.68 | $400 million |
| August 2024 | 10,549,052 | $6.54 | $331 million |
| September 2024 | 5,287,548 | $6.69 | $300 million |
| Total | 15,891,445 | - | - |
How Clarivate Plc (CLVT) Makes Money
Revenue Streams
Clarivate Plc generates revenue through three primary streams: Subscription revenues, Re-occurring revenues, and Transactional revenues.
| Revenue Type | Q3 2024 (in millions) | Q3 2023 (in millions) | Change ($) | Change (%) |
|---|---|---|---|---|
| Subscription Revenues | $411.1 | $408.1 | $3.0 | 0.7% |
| Re-occurring Revenues | $106.7 | $106.8 | ($0.1) | (0.1%) |
| Transactional and Other Revenues | $104.4 | $132.3 | ($27.9) | (21.1%) |
| Total Revenues | $622.2 | $647.2 | ($25.0) | (3.9%) |
Subscription Revenues
Subscription revenues are the backbone of Clarivate's business model, representing a steady and predictable income stream. For the nine months ended September 30, 2024, subscription revenues amounted to $1,219.8 million, a slight increase from $1,207.3 million in the same period of 2023, reflecting a growth of 1.0%.
This growth is primarily driven by price increases, although it is partially offset by lower net volumes in Intellectual Property (IP) and Life Sciences & Healthcare (LS&H) segments.
Re-occurring Revenues
Re-occurring revenues, which are derived from patent and trademark maintenance services, amounted to $106.7 million in Q3 2024, almost flat compared to $106.8 million in Q3 2023. However, for the nine-month period, there was a slight decline from $325.5 million in 2023 to $317.8 million in 2024, reflecting a 2.4% decrease.
Transactional Revenues
Transactional and other revenues experienced a significant drop, falling from $132.3 million in Q3 2023 to $104.4 million in Q3 2024, a decrease of 21.1%. This decline is attributed to lower sales across A&G, IP, and LS&H segments as well as the divestiture of the IP product group. For the nine months, transactional revenues decreased from $412.3 million to $356.1 million, a decline of 13.6%.
Segment Performance
Clarivate's revenue is further segmented into Academia & Government (A&G), Intellectual Property (IP), and Life Sciences & Healthcare (LS&H). The revenue breakdown for Q3 2024 is as follows:
| Segment | Q3 2024 (in millions) | Q3 2023 (in millions) | Change ($) | Change (%) |
|---|---|---|---|---|
| Academia & Government | $321.3 | $327.2 | ($5.9) | (1.8%) |
| Intellectual Property | $199.8 | $211.7 | ($11.9) | (5.6%) |
| Life Sciences & Healthcare | $101.1 | $108.3 | ($7.2) | (6.6%) |
| Total Revenues | $622.2 | $647.2 | ($25.0) | (3.9%) |
Geographical Revenue Distribution
Revenue distribution across geographical regions for Q3 2024 is as follows:
| Region | Q3 2024 (in millions) | Q3 2023 (in millions) | Change ($) | Change (%) |
|---|---|---|---|---|
| Americas | $335.4 | $342.8 | ($7.4) | (2.2%) |
| EMEA | $158.8 | $176.3 | ($17.5) | (9.9%) |
| APAC | $128.0 | $128.1 | ($0.1) | (0.1%) |
| Total Revenues | $622.2 | $647.2 | ($25.0) | (3.9%) |
Adjusted EBITDA
Adjusted EBITDA for Q3 2024 was $264.4 million, down from $281.4 million in Q3 2023, while for the nine months, it decreased from $819.0 million to $775.1 million. The Adjusted EBITDA margin for Q3 2024 stood at 42.5%, compared to 43.5% in Q3 2023.
Net income (loss) for Q3 2024 was ($65.6) million, a decline from $12.3 million in Q3 2023. For the nine months, net income (loss) was ($444.9) million, compared to ($67.3) million in the prior year.
Cash Flow and Liquidity
As of September 30, 2024, Clarivate had cash and cash equivalents of $388.5 million, with $691.9 million of available borrowing capacity under its revolving credit facility. Net cash provided by operating activities for the nine months ended September 30, 2024 was $505.3 million, down from $553.3 million in the same period of 2023.
Free cash flow for the nine months ended September 30, 2024 was $298.4 million, compared to $374.7 million in the prior year.
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Resources:
- Clarivate Plc (CLVT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Clarivate Plc (CLVT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Clarivate Plc (CLVT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.