Clear Secure, Inc. (NYSE: YOU) shares gained 16.8% on March 23, after the company delivered a narrower-than-expected Q4 loss and also provided guidance for the first quarter of FY22, which was well above analysts’ expectations. YOU issued its initial public offering (IPO) in July 2021.
Clear Secure is an American technology company that operates biometric travel document verification systems at major airports and stadiums in the U.S.
The quarterly beat was driven by strong execution across the CLEAR Plus and platform businesses as well as impressive member growth as well as product expansion.
Q4 Outperformance
The company reported an adjusted loss of $0.09 per share, which was far superior to the street’s estimated loss of $0.24.
During the Q4 quarter, revenues totaled $80.7 million, up 52% year-over-year, against the consensus estimate of $78.12 million. Total bookings rose 99% to $109.6 million, acting as a tailwind.
Further, total cumulative enrollments grew 97% year-over-year to 10.4 million, while annual CLEAR Plus net member retention improved 1350 bps to 92.3%.
FY2022 Outlook
Clear Secure provided a financial outlook for the first quarter of FY2022. Revenues are forecast to be in the range of $88 million to $89 million, ahead of the consensus estimate of $83 million. Total Bookings expectations of $103.5 million to $104.5 million will drive revenue growth.
Notably, the company expects first quarter revenues to be the lowest compared to other quarters in FY2022, which is in line with historical trends.
CEO Comments
CLEAR’s CEO, Caryn Seidman-Becker, commented, “Throughout 2020 and 2021 we have made significant investments in our team, platform, and products. We are well positioned to grow members and bookings while also achieving operating leverage and generating strong free cash flow in 2022 and beyond.”
Wall Street’s Take
Following the upbeat Q4 results, Stifel Nicolaus analyst Scott Devitt reiterated a Buy rating on the stock with a price target of $34 (33.8% upside potential).
The rest of the Wall Street community is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on two Buys and one Hold. The average Clear Secure stock forecast of $29 implies 14.1% upside potential to current levels.
TipRanks’ Smart Score
YOU scores a 9 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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