On August 6, 2024, Clear Secure Inc (YOU, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. Clear Secure Inc is an identity company focused on making experiences safer and easier both digitally and physically, primarily through its biometric identity verification platform used in airports.
Performance and Challenges
Clear Secure Inc (YOU, Financial) reported a revenue of $186.7 million for Q2 2024, marking a 24.6% increase year-over-year. Total Bookings also saw a 12.5% rise, reaching $197.0 million. The company achieved an operating income of $30.3 million and a net income of $38.6 million, translating to earnings per share of $0.26. These results underscore the company's ability to scale profitably and enhance its market presence.
Financial Achievements
Clear Secure Inc (YOU, Financial) demonstrated significant financial achievements, including an adjusted EBITDA of $47.5 million and a free cash flow of $110.1 million. The company also repurchased 3.6 million shares at an average price of $18.25, reflecting strong cash flow management and shareholder value enhancement.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $186.7 million | $149.9 million |
| Net Income | $38.6 million | $8.0 million |
| Operating Income | $30.3 million | $0.2 million |
| Adjusted EBITDA | $47.5 million | $20.0 million |
Balance Sheet and Cash Flow
As of June 30, 2024, Clear Secure Inc (YOU, Financial) reported cash and cash equivalents, marketable securities, and restricted cash totaling $673.2 million. The company generated $114.6 million in net cash from operating activities and maintained a strong balance sheet with total assets of $982.4 million and total liabilities of $754.1 million.
Key Metrics
Clear Secure Inc (YOU, Financial) reported several key performance indicators:
- Total Cumulative Enrollments: 24.2 million, up 2.3 million sequentially
- Active CLEAR Plus Members: 7.1 million, up 14.8% year-over-year
- Total Cumulative Platform Uses: 206.7 million
- Annual CLEAR Plus Gross Dollar Retention: 89.3%
Commentary
"In the second quarter we continued to execute on our three key priorities—improving the Member experience, scaling TSA PreCheck®, and scaling CLEAR Verified. We added a record 2.3 million Members, expanded margins and generated significant operating and Free Cash Flow—clear evidence of the traction we are seeing in the marketplace and our ability to scale profitably," said Caryn Seidman Becker, CLEAR’s CEO.
Analysis
Clear Secure Inc (YOU, Financial) has shown robust growth in revenue and net income, driven by increased member enrollments and effective cost management. The company's ability to generate significant free cash flow and maintain a strong balance sheet positions it well for future growth. However, challenges such as maintaining high retention rates and managing operational costs will be critical for sustained success.
For more detailed insights, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Clear Secure Inc for further details.
