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Clear Secure Delivers Mixed Q2 Results; Shares Fall 5%
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Clear Secure Delivers Mixed Q2 Results; Shares Fall 5%

Clear Secure (YOU) delivered mixed second-quarter results characterized by a revenue decline and an increase in total bookings. Shares of the technology company fell 4.96% after the earnings report, its first as a public company.

Revenue in the quarter fell 8% year-over-year to $55.2 million but came in above consensus estimates of $54.21 million. Total bookings were up 102% compared to the same quarter last year to $70 million, benefiting from a rebound in the travel industry, which has helped drive strong membership growth and net retention.

The second-quarter net loss landed at $38.1 million, including $16.8 million in non-cash stock compensation. The loss per share of $0.03 does not reflect the full quarter’s results as Clear Secure went public on June 30, 2021. However, it still beat consensus estimates of a loss of $0.31 a share.

Total Cumulative Platform Uses increased 19% in the quarter to 65.5 million, mostly driven by airport verification and Health Passes uses. Additionally, cumulative enrollments were up 26% to 6.3 million and reached 7 million as of August 15.

Following the Q2 results, Clear Secure is projecting revenue in the range of $65.5 – $66 million for Q3. Total bookings are expected to be in the range of $90 – $95 million. (See Clear Secure stock charts on TipRanks)

“We continue to experience significant strength across sales channels (including the American Express partnership launched in early July) as well as net member retention. We are closely monitoring potential impacts of the Delta variant on travel trends which could impact our results,” Clear Secure said in a press release.

Yesterday, Stifel Nicolaus analyst Scott Devitt reiterated a Buy rating on the stock with a $54 price target, implying 8.30% upside potential to current levels.

Consensus among analysts is a Moderate Buy based on 2 Buys and 4 Holds. The average Clear Secure price target of $48.50 implies 2.73% downside potential to current levels.

YOU scores a 7 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to perform in line with market averages.

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