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Clear Secure, Inc. (YOU)
:YOU
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Clear Secure
(NYSE:YOU)
79Outperform
Positive Factors
Bookings Growth
Bookings growth is anticipated to be closer to 17.5%-18.0%, exceeding guidance.
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
Cash Flow
The company will be paying cash taxes going forward, which is a headwind to free cash flow in the future.
Leadership Change
Ken Cornick, President and CFO, announced his resignation in conjunction with the Q4 call.
Net Member Additions
Net member adds of 55K in Q3 are below investor expectations and are impacting the stock negatively.
Clear Secure (YOU) vs. S&P 500 (SPY)
Market Cap
$3.51B
Dividend Yield1.62%
Average Volume (3M)2.86M
Price to Earnings (P/E)16.5
Beta (1Y)0.61
Revenue Growth25.57%
EPS Growth476.09%
CountryUS
Employees4,022
SectorTechnology
Sector Strength51
IndustrySoftware - Application
Share Statistics
EPS (TTM)1.80
Shares Outstanding96,100,080
10 Day Avg. Volume3,083,118
30 Day Avg. Volume2,861,780
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)N/A
Price to Sales (P/S)4.56
Price to Cash Flow (P/CF)6.40
P/FCF Ratio6.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$30.67Price Target Upside19.43% Upside
Rating ConsensusHold
Number of Analyst Covering6
Clear Secure Business Overview & Revenue Model
Company DescriptionClear Secure, Inc. provides a member-centric secure identity platform in the United States. The company's secure identity platform is a multi-layered infrastructure consisting of front-end, including enrollment, verification, and linking. It also offers CLEAR Plus, a consumer aviation subscription service, which enables access to predictable entry lanes in airport security checkpoints, as well as access to broader network; and CLEAR app, a consumer-facing digital product that facilitates new user enrollment and member engagement from their mobile device. In addition, the company provides Reserve powered by CLEAR, a virtual queuing technology that provides users with the choice of how they queue either at home or on the move; and Atlas Certified, an automated solution to verify professional licenses and certification data across industries by communicating with certifying organizations for on-demand, current, and trusted data. The company was founded in 2010 and is headquartered in New York, New York.
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
Positive
25.68
Price Trends
24.16
Positive
26.02
Positive
25.78
Positive
Market Momentum
0.76
Negative
59.75
Neutral
58.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YOU, the sentiment is Positive. The current price of 25.68 is above the 20-day moving average (MA) of 24.84, above the 50-day MA of 24.16, and below the 200-day MA of 25.78, indicating a bullish trend. The MACD of 0.76 indicates Negative momentum. The RSI at 59.75 is Neutral, neither overbought nor oversold. The STOCH value of 58.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $3.51B | 16.47 | 78.61% | 1.62% | 25.57% | 476.09% | |
69 Neutral | $19.75B | 1,986.01 | 0.46% | ― | 15.33% | ― | |
67 Neutral | $1.11B | 13.30 | 6.35% | 12.88% | 26.34% | 79.07% | |
67 Neutral | $17.40B | 1,777.39 | -5.91% | ― | 33.10% | -20.31% | |
58 Neutral | $22.11B | 10.47 | -17.86% | 2.40% | 4.75% | -24.81% | |
54 Neutral | $53.75M | ― | -3.84% | ― | 5.23% | 80.84% | |
49 Neutral | $80.44M | ― | -21.97% | ― | -63.51% | -326.18% |
* Technology Sector Average
Performance Comparison
YOU
Clear Secure
26.50
6.00
29.27%
INVE
Identiv
3.36
-4.15
-55.26%
IDN
Intellicheck Mobilisia
2.69
-0.79
-22.70%
MFA
MFA Financial
10.94
0.93
9.29%
CYBR
CyberArk Software
351.00
87.51
33.21%
OKTA
Okta
116.38
11.95
11.44%
Clear Secure Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: 9.74% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook with significant growth in revenue, member enrollments, and free cash flow. The expansion of TSA PreCheck locations and the successful deployment of NextGen Identity and EnVe Pods highlight innovation and operational improvements. However, slight declines in gross dollar retention and the impact of the Amex partnership on financial metrics pose challenges. Overall, the highlights significantly outweigh the lowlights.Highlights
Revenue and Growth Metrics
Fourth quarter revenue and total bookings grew 21% and 17%, respectively. Full year adjusted EBITDA margin improved by over 1,000 basis points year-over-year, reaching 24%.
Member Growth
Total cumulative enrollments ended the year at 28.9 million, up 2.5 million in the quarter, marking record growth. Active CLEAR Plus members grew by 164,000 in the quarter.
Free Cash Flow Increase
In 2024, free cash flow increased by 42% year-over-year, reaching $284 million. The company expects free cash flow of at least $310 million in 2025.
Expansion of TSA PreCheck Locations
TSA PreCheck continued to scale with 91 locations now in operation, contributing to growth.
Introduction of NextGen Identity and EnVe Pods
The rollout of EnVe Pods and NextGen Identity has significantly improved member experience. EnVe Pods are 5x faster, delivering a seamless customer experience.
Lowlights
Slight Decline in Gross Dollar Retention
Q4 gross dollar retention was 88.5%, a modest sequential decline due to fewer parent members adding their first family member at higher price points.
Impact of Amex Partnership on Bookings and EBITDA
The Amex partnership, while beneficial for brand awareness, is said to depress total bookings and EBITDA due to the significant gap between wholesale and retail prices.
Company Guidance
During CLEAR's Fiscal Fourth Quarter 2024 Conference Call, the company discussed its strong financial performance and strategic initiatives. CLEAR's revenue and total bookings grew by 21% and 17%, respectively, with a 24% full year adjusted EBITDA margin, reflecting a year-over-year improvement of over 1,000 basis points. The company reported $284 million in free cash flow for 2024, up 42% year-over-year, and projected at least $310 million in free cash flow for 2025, marking a continued focus on top-line growth and margin expansion. CLEAR's membership base reached over 30 million, with active CLEAR Plus members increasing by 164,000 in the quarter. The rollout of NextGen Identity and EnVe's technology has enhanced member experiences, with 50% of members clearing lanes in less than 2 minutes. The company is also expanding its TSA PreCheck program and exploring opportunities to strengthen security and streamline operations through public-private partnerships. As they transition leadership roles, CLEAR remains committed to driving innovation and value for members and partners.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.