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Clear Secure, Inc. (YOU)
:YOU
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Clear Secure
(NYSE:YOU)
Rating:75Outperform
Price Target:
$27.00
▲( 6.17% Upside)
Positive Factors
Bookings Performance
CLEAR reported a strong Q1 including a bookings beat despite a more challenging macro-environment.
Customer Experience
The introduction of new ENVE Pods is anticipated to enhance customer experience, improving perceived customer value.
Revenue Growth
Clear Secure, Inc. has started charging United Premier 1K members for CLEAR+, which is expected to generate additional revenue.
Negative Factors
Future Bookings Expectations
Shares are trading lower post the print as consensus bookings is likely re-set modestly lower for FY25.
Management Changes
Ken Cornick, President and CFO, announced his resignation in conjunction with the Q4 call.
Clear Secure (YOU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.38B
Dividend Yield1.79%
Average Volume (3M)1.96M
Price to Earnings (P/E)13.6
Beta (1Y)0.52
Revenue Growth21.59%
EPS Growth223.84%
CountryUS
Employees4,022
SectorTechnology
Sector Strength77
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.34
Shares Outstanding92,266,335
10 Day Avg. Volume2,023,931
30 Day Avg. Volume1,957,542
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$28.71Price Target Upside12.90% Upside
Rating ConsensusHold
Number of Analyst Covering7
Clear Secure Business Overview & Revenue Model
Company DescriptionClear Secure, Inc. (YOU) is a technology company specializing in identity verification solutions. Operating primarily in the travel and aviation sectors, Clear Secure offers a membership-based service that enables users to expedite security screening processes at airports and other venues. By using biometric technology such as fingerprint and iris scanning, Clear Secure aims to provide a seamless and secure experience for travelers and venue attendees.
How the Company Makes MoneyClear Secure makes money primarily through a subscription-based revenue model. Members pay an annual fee to access the service, which allows them to move through security checkpoints more quickly at participating airports and venues. The company also partners with airports, airlines, and other travel-related businesses to expand its network and enhance service offerings. Additional revenue streams may include partnerships and collaborations with other organizations seeking to utilize their biometric technology for identity verification purposes.
Clear Secure Financial Statement Overview
Summary
Clear Secure has demonstrated strong financial performance with substantial revenue and profit growth, backed by a solid cash flow position. The balance sheet is strong with no debt, though there is a slight decline in equity, which should be monitored.Income Statement
Clear Secure has shown impressive revenue growth, with a 25.5% increase from 2023 to 2024. The gross profit margin has improved significantly, reaching 85.9% in 2024. Additionally, the net profit margin has increased to 22.0%, reflecting enhanced profitability. The EBIT and EBITDA margins have also strengthened, indicating overall improved operational efficiency.85
Very Positive
Balance Sheet
The company maintains a strong equity position with an equity ratio of 16.6%, although this has decreased from previous years. The debt-to-equity ratio is favorable at 0, indicating no reliance on debt financing. However, there has been a decline in stockholders' equity, which could be a concern if it continues.75
Positive
Cash Flow
Operating cash flow has grown to $295.7 million, supporting a robust free cash flow of $283.7 million in 2024. The free cash flow to net income ratio indicates strong cash flow generation relative to profit. However, the high financing cash outflows suggest significant cash used for debt retirement or shareholder returns.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 770.49M | 613.58M | 437.43M | 253.95M | 230.80M | Gross Profit |
| 489.34M | 382.11M | 276.38M | 149.02M | 157.08M | EBIT |
| 123.19M | 20.14M | -129.06M | -114.93M | -18.93M | EBITDA |
| 149.67M | 41.79M | -94.94M | -102.58M | -9.51M | Net Income Common Stockholders |
| 169.68M | 28.11M | -115.44M | -115.17M | -9.31M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 609.50M | 723.10M | 704.75M | 615.34M | 154.04M | Total Assets |
| 1.19B | 1.05B | 1.04B | 812.75M | 232.27M | Total Debt |
| 121.25M | 127.38M | 130.11M | 0.00 | 0.00 | Net Debt |
| 54.36M | 69.48M | 91.17M | -280.11M | -116.23M | Total Liabilities |
| 956.99M | 675.79M | 526.60M | 273.28M | 149.91M | Stockholders Equity |
| 198.35M | 233.33M | 291.06M | 277.61M | 82.36M |
| Cash Flow | Free Cash Flow | |||
| 283.67M | 198.90M | 136.40M | 40.74M | -29.26M | Operating Cash Flow |
| 295.68M | 225.03M | 168.31M | 69.71M | -12.34M | Investing Cash Flow |
| 113.78M | -15.51M | -359.59M | -403.20M | -21.58M | Financing Cash Flow |
| -401.55M | -216.01M | -48.87M | 503.40M | -63.05M |
Clear Secure Technical Analysis
Negative
25.43
Price Trends
25.64
Negative
24.92
Negative
27.18
Negative
Market Momentum
-0.20
Positive
41.47
Neutral
56.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YOU, the sentiment is Negative. The current price of 25.43 is above the 20-day moving average (MA) of 24.96, below the 50-day MA of 25.64, and below the 200-day MA of 27.18, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 41.47 is Neutral, neither overbought nor oversold. The STOCH value of 56.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for YOU.
Clear Secure Risk Analysis
Clear Secure disclosed 52 risk factors in its most recent earnings report. Clear Secure reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Clear Secure Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.38B | 13.64 | 124.77% | 1.79% | 21.59% | 223.84% | |
73 Outperform | $4.70B | ― | -63.52% | ― | 30.08% | -196.62% | |
71 Outperform | $4.32B | ― | -6.85% | ― | 20.46% | 39.37% | |
68 Neutral | $4.90B | ― | -10.47% | ― | 21.66% | -50.24% | |
61 Neutral | $11.29B | 10.07 | -7.05% | 2.96% | 7.47% | -10.75% | |
59 Neutral | $2.97B | ― | -0.82% | 1.45% | -26.04% | 85.84% | |
58 Neutral | $2.92B | ― | -3.84% | ― | 4.82% | 73.90% |
* Technology Sector Average
Performance Comparison
YOU
Clear Secure
23.98
7.90
49.13%
FROG
JFrog
42.49
9.55
28.99%
ALIT
Alight
5.39
-2.71
-33.46%
GBTG
Global Business Travel Group
5.99
0.16
2.74%
GRND
Grindr
24.00
14.63
156.14%
FRSH
Freshworks
14.42
1.18
8.91%
Clear Secure Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: -3.23%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Positive
The call highlighted significant membership growth, innovations, and strategic partnerships, with positive financial performance in terms of revenue and free cash flow. However, there are concerns about retention impacts from pricing changes and potential risks from macroeconomic factors and Real ID implementation.Q1-2025 Updates
Positive Updates
Strong Membership Growth
CLEAR ended the quarter with 31.2 million total members, up 42.3% year-over-year, indicating strong traction for CLEAR1.
Revenue and Free Cash Flow Growth
Total bookings were $207 million and free cash flow was $91 million, representing 14.8% and 17.6% growth respectively year-over-year.
Expansion of TSA PreCheck Enrollment
165 locations are now live, expanding the reach and availability of TSA PreCheck enrollment and enhancing member acquisitions.
New Product Innovations
Introduction of EnVe Pods and ePassport, which enhance member experience through automation and faster verification.
Partnership with DocuSign
A significant partnership with DocuSign will integrate CLEAR's identity verification for secure digital agreements.
Operating Income and EBITDA Margins
Generated $37 million of operating income with a 17.7% margin and $52 million of adjusted EBITDA with a 24.7% margin.
Negative Updates
Gross Dollar Retention Decline
Gross dollar retention was 87.1%, down 140 basis points sequentially due to previous pricing increases.
Potential Macro and Real ID Implementation Risks
There is uncertainty in the macroeconomic environment and potential disruptions from the Real ID implementation.
Company Guidance
During the fiscal first quarter of 2025, CLEAR provided robust guidance, reflecting strong growth and strategic initiatives. The company reported 31.2 million total members, marking a 42.3% year-over-year increase. Total bookings reached $207 million, with a 14.8% growth rate, and free cash flow stood at $91 million, up by 17.6%. Active CLEAR+ members grew by 9.1% to 7.4 million, while gross dollar retention was 87.1%, down slightly due to prior pricing increases. CLEAR reaffirmed its full-year 2025 free cash flow guidance of at least $310 million and projected Q2 revenue of $214 million to $216 million, with bookings anticipated to grow between 10.4% to 15.1% at the midpoint. The company highlighted its strategic focus on enhancing member experience, expanding its network, and leveraging new technologies like ePassport and eGates to drive future growth.Clear Secure Corporate Events
Executive/Board ChangesFinancial Disclosures
Clear Secure Announces Leadership Changes Amid Strong Growth
Positive
Feb 26, 2025
On February 20, 2025, Clear Secure announced the resignation of Kenneth Cornick as President and CFO, effective March 31, 2025, with Michael Barkin and Jennifer Hsu appointed as his successors. The company reported strong financial performance in Q4 2024, with a 20.7% increase in revenue and significant growth in member enrollments, positioning itself for continued expansion in 2025.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.