Clear Secure, Inc. (YOU) Bundle
A Brief History of H3 Company
H3 Company, known for its innovative approach in the tech sector, has experienced significant growth and transformation since its inception. As of 2024, the company has solidified its position in the market with impressive financial metrics and operational achievements.
Financial Performance
For the nine months ending September 30, 2024, H3 Company reported:
- Revenue: $564.2 million, a 27% increase from $442.6 million in the same period of 2023.
- Net Income: $108.7 million, compared to $26.6 million in the prior year.
- Net Income Margin: 19% for the nine months ended September 30, 2024, compared to 6% for the same period in 2023.
| Metric | 2024 | 2023 | Change | % Change |
|---|---|---|---|---|
| Revenue | $564.2 million | $442.6 million | $121.6 million | 27% |
| Net Income | $108.7 million | $26.6 million | $82.1 million | 308% |
| Net Income Margin | 19% | 6% | 13% | 217% |
Membership Growth
As of September 30, 2024, H3 Company reported:
- Total Cumulative Enrollments: 26,453,000, up from 18,594,000 in 2023, representing a 42% increase.
- Active CLEAR Plus Members: 7,150, up from 6,374, marking a 12% increase year-over-year.
| Metric | 2024 | 2023 | Change | % Change |
|---|---|---|---|---|
| Total Cumulative Enrollments | 26,453,000 | 18,594,000 | 7,859,000 | 42% |
| Active CLEAR Plus Members | 7,150 | 6,374 | 776 | 12% |
Cost and Expenses
For the nine months ending September 30, 2024, the company reported:
- Cost of Revenue Share Fee: $79.0 million, up from $63.7 million in 2023, an increase of 24%.
- Cost of Direct Salaries and Benefits: $125.2 million, compared to $102.7 million, a 22% increase.
| Expense Type | 2024 | 2023 | Change | % Change |
|---|---|---|---|---|
| Cost of Revenue Share Fee | $79.0 million | $63.7 million | $15.3 million | 24% |
| Cost of Direct Salaries and Benefits | $125.2 million | $102.7 million | $22.5 million | 22% |
Cash Flow and Liquidity
As of September 30, 2024, H3 Company had:
- Cash and Cash Equivalents: $32.9 million.
- Marketable Securities: $511.8 million.
- Net Cash Provided by Operating Activities: $159.1 million, compared to $130.9 million in the prior year.
| Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $32.9 million |
| Marketable Securities | $511.8 million |
| Net Cash Provided by Operating Activities | $159.1 million |
Stock Performance and Share Repurchases
For the nine months ending September 30, 2024, H3 Company repurchased:
- Shares Repurchased: 11,983,612 shares for a total of $225.2 million.
- Remaining Authorization for Share Repurchase: $100.5 million as of September 30, 2024.
| Metric | Amount |
|---|---|
| Shares Repurchased | 11,983,612 |
| Total Cost of Repurchases | $225.2 million |
| Remaining Authorization for Share Repurchase | $100.5 million |
A Who Owns Clear Secure, Inc. (YOU)
Ownership Structure
As of 2024, Clear Secure, Inc. has a multi-class share structure comprising Class A, Class B, Class C, and Class D shares. The ownership distribution is as follows:
| Class of Stock | Shares Outstanding | Ownership Percentage |
|---|---|---|
| Class A | 93,679,673 | 50.0% |
| Class B | 877,234 | 0.5% |
| Class C | 19,750,578 | 10.5% |
| Class D | 25,046,690 | 13.5% |
Major Shareholders
The following table outlines the major shareholders and their respective ownership stakes:
| Shareholder | Class of Stock | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Alclear Holdings LLC | Class C | 19,750,578 | 10.5% |
| Class A Shareholders | Class A | 93,679,673 | 50.0% |
| Class B Shareholders | Class B | 877,234 | 0.5% |
| Institutional Investors | Class A | ~30,000,000 | ~16.0% |
Institutional Investors
As of September 30, 2024, notable institutional investors include:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| The Vanguard Group | 7,500,000 | 8.0% |
| BlackRock, Inc. | 6,000,000 | 6.4% |
| State Street Corporation | 5,500,000 | 5.9% |
| Fidelity Investments | 4,500,000 | 4.8% |
Recent Share Transactions
In 2024, Clear Secure, Inc. repurchased approximately 11,983,612 shares of its Class A Common Stock for $225.2 million as part of its ongoing share repurchase program. The company has an authorization remaining of approximately $100.5 million for further repurchases.
Financial Overview
As of September 30, 2024, the total stockholders' equity attributable to Clear Secure, Inc. is reported at $128.97 million, down from $233.33 million at the beginning of the year.
Cash and Marketable Securities
As of September 30, 2024, Clear Secure, Inc. holds cash and cash equivalents of $32.9 million and marketable securities totaling $511.8 million.
Revenue and Profitability
For the nine months ended September 30, 2024, Clear Secure, Inc. reported revenue of $564.2 million, with a net income attributable to the company of $66.39 million.
Member Metrics
As of September 30, 2024, Clear Secure, Inc. has reported a total of 7,150 active CLEAR Plus members, representing a 12% increase from the previous year.
Clear Secure, Inc. (YOU) Mission Statement
Company Overview
Clear Secure, Inc. operates the CLEAR platform, which provides expedited security screening for travelers at airports and other venues. The mission of Clear Secure, Inc. is to enhance the travel experience by providing a seamless, secure way for individuals to move through security processes.
Mission Statement
As of 2024, Clear Secure, Inc. is committed to delivering its services with a focus on innovation, security, and customer satisfaction. The mission statement emphasizes the goal of making travel safer and more efficient through technology and personalized service.
Key Performance Metrics
In line with its mission, Clear Secure, Inc. tracks several key performance metrics that underline its operational effectiveness and growth trajectory. These metrics include:
| Metric | As of September 30, 2024 | As of September 30, 2023 | Change (%) |
|---|---|---|---|
| Total Cumulative Enrollments (in thousands) | 26,453 | 18,594 | 42% |
| Total Cumulative Platform Uses (in thousands) | 220,413 | 167,417 | 32% |
| Active CLEAR Plus Members | 7,150 | 6,374 | 12% |
Financial Performance
The financial performance of Clear Secure, Inc. reflects the effectiveness of its mission-driven approach. The company reported significant growth in its revenue and profitability metrics.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income (in thousands) | $38,024 | $26,863 | 42% |
| Adjusted EBITDA (in thousands) | $48,645 | $29,605 | 64% |
| Revenue (in thousands) | $198,424 | $160,387 | 24% |
Market Positioning
Clear Secure, Inc. has positioned itself as a leader in the travel security industry through strategic partnerships and technology enhancements. The company's focus on user experience and security continues to resonate with consumers and stakeholders alike.
Future Outlook
Looking ahead, Clear Secure, Inc. aims to expand its market presence and improve its service offerings. The company is focused on increasing enrollments, enhancing technology, and optimizing operations to support its mission of providing secure and efficient travel experiences.
Conclusion
Clear Secure, Inc.'s mission statement as of 2024 reflects its commitment to innovation, security, and customer satisfaction, driving its growth and operational success in the travel industry.
How Clear Secure, Inc. (YOU) Works
Business Model
Clear Secure, Inc. operates primarily through its subscription-based service, CLEAR Plus, which provides expedited security screening at airports. The company generates revenue from membership subscriptions, with various pricing tiers including family plans and promotional offers.
Financial Performance
For the nine months ended September 30, 2024, Clear Secure reported:
- Revenue: $564.2 million
- Net income: $108.7 million
- Operating income: $89.1 million
- Adjusted EBITDA: $136.9 million
| Metric | 2024 (9 Months) | 2023 (9 Months) | Change |
|---|---|---|---|
| Revenue | $564.2 million | $442.6 million | +27% |
| Net Income | $108.7 million | $26.6 million | +308% |
| Operating Income | $89.1 million | $4.4 million | +2025% |
| Adjusted EBITDA | $136.9 million | $60.2 million | +127% |
Membership Growth
The company has seen significant growth in its membership base:
- Total Cumulative Enrollments as of September 30, 2024: 26,453 (42% increase from 2023)
- Active CLEAR Plus Members: 7,150 (12% increase from 2023)
| Membership Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Total Cumulative Enrollments | 26,453 | 18,594 | +42% |
| Active CLEAR Plus Members | 7,150 | 6,374 | +12% |
Revenue Breakdown
Revenue from CLEAR Plus subscriptions includes:
- Membership Subscription Revenue: Net of taxes and refunds
- Family Pricing: Approximately 28% of members on family plans as of September 30, 2024
Cost Structure
Key operating expenses for the nine months ended September 30, 2024 include:
| Expense Type | Amount (in millions) | % of Revenue |
|---|---|---|
| Cost of Revenue Share Fee | $79.0 | 14% |
| Cost of Direct Salaries and Benefits | $125.2 | 22% |
| Research and Development | $54.9 | 10% |
| Sales and Marketing | $34.2 | 6% |
| General and Administrative | $162.2 | 29% |
Market Position
Clear Secure, Inc. is positioned as a leader in the aviation security industry, leveraging technology to enhance customer experience. The company continues to expand its partnerships with airports and airlines to increase its service offerings.
Stock Performance
As of September 30, 2024, the company's stock performance metrics include:
- Basic Net Income per Share: $0.71
- Diluted Net Income per Share: $0.71
- Weighted-average Shares Outstanding, Basic: 92,174,755
- Weighted-average Shares Outstanding, Diluted: 93,263,943
| Metric | Value |
|---|---|
| Basic Net Income per Share | $0.71 |
| Diluted Net Income per Share | $0.71 |
| Weighted-average Shares Outstanding (Basic) | 92,174,755 |
| Weighted-average Shares Outstanding (Diluted) | 93,263,943 |
Cash Flow Analysis
For the nine months ended September 30, 2024, cash flow metrics include:
- Net Cash Provided by Operating Activities: $159.1 million
- Free Cash Flow: $149.8 million
How Clear Secure, Inc. (YOU) Makes Money
Revenue Streams
Clear Secure, Inc. primarily generates revenue through its CLEAR Plus subscription service, which is designed for expedited airport security screening. As of September 30, 2024, the company reported total revenue of $564.2 million for the nine months ended, reflecting a 27% increase from $442.6 million during the same period in 2023.
The revenue for the three months ended September 30, 2024, was $198.4 million, a 24% increase compared to $160.4 million in the same quarter of the previous year. The growth in revenue is attributed to an increase in the number of CLEAR Plus members and pricing adjustments.
Membership Revenue
The bulk of the revenue is derived from membership subscriptions. The company offers various pricing structures, including individual and family plans. Approximately 28% of paying CLEAR Plus members were on a family plan as of September 30, 2024.
Membership subscription revenue is recognized net of taxes, refunds, and credit card chargebacks. The company also accounts for the funded portion of credit card benefits issued to members. The cost of revenue share fees associated with these memberships was $79.0 million for the nine months ended September 30, 2024, an increase of 24% from $63.7 million in the prior year.
CLEAR Verified Services
In addition to CLEAR Plus, the company offers CLEAR Verified services, which generate revenue through transaction fees charged per use or user. These contracts are typically multi-year and recurring. The revenue from this segment is also supplemented by one-time implementation fees and licensing fees, although they historically contribute a smaller portion of total revenue.
TSA PreCheck® Enrollment
Clear Secure also provides TSA PreCheck® enrollment services, which offer consumers additional options for signing up for this trusted traveler program. Revenue from TSA PreCheck is recognized upon completion of each enrollment or renewal.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $475.5 million, compared to $438.2 million for the same period in 2023. Key components of operating expenses include:
- Cost of revenue share fee: $79.0 million
- Cost of direct salaries and benefits: $125.2 million
- Research and development: $54.9 million
- Sales and marketing: $34.2 million
- General and administrative: $162.2 million
- Depreciation and amortization: $19.5 million
Net Income
For the nine months ended September 30, 2024, Clear Secure reported a net income of $108.7 million, a significant increase from $26.6 million in the same period in 2023. The net income margin was reported at 19% for the recent period compared to 6% previously.
Cash Flow and Financial Position
As of September 30, 2024, Clear Secure had cash and cash equivalents of $32.9 million, alongside marketable securities totaling $511.8 million. Net cash provided by operating activities for the nine months ended was $159.1 million, reflecting an increase from $130.9 million in the prior year.
Share Repurchase and Dividends
During the nine months ended September 30, 2024, the company repurchased 11,983,612 shares for $225.2 million. The Board also authorized a special cash dividend of $0.20 per share, reflecting the company's commitment to returning capital to shareholders.
| Financial Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Revenue | $198.4 million | $160.4 million | $564.2 million | $442.6 million |
| Net Income | $38.0 million | $26.9 million | $108.7 million | $26.6 million |
| Operating Expenses | $163.3 million | $141.1 million | $475.5 million | $438.2 million |
| Cash and Cash Equivalents | $32.9 million | - | $32.9 million | - |
| Marketable Securities | $511.8 million | - | $511.8 million | - |
Conclusion on Financial Health
Clear Secure's financial performance exhibits significant growth in revenue and net income, primarily driven by increased membership subscriptions and strategic pricing. The company’s robust cash flow and strong cash position enhance its capacity for future investments and shareholder returns.
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Resources:
- Clear Secure, Inc. (YOU) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Clear Secure, Inc. (YOU)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Clear Secure, Inc. (YOU)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.