Clear Secure: Letter to shareholders Q2 2022




Letter to shareholders

Letter to shareholders

Q2 2022

Second Quarter 2022 Financial Highlights

(all figures are for the second quarter of 2022 and the percentage change is expressed year-on-year, unless otherwise indicated)*

Revenue of $102.7 million increased 86.2% while total bookings of $122.9 million increased 75.6%

Net cash from operating activities of $50.9 million; Free cash flow of $41.2 million

Total cumulative registrations of 13.1 million increased by 107.2%

Annual net CLEAR Plus member retention of 94.3% increased 1,370 basis points year over year and decreased 100 basis points sequentially

Total cumulative platform usage of 106.6 million increased by 62.8%

Net loss ($12.3) million; Adjusted net profit of $0.5 million; Adjusted EBITDA $3.5 million

Net loss per basic and diluted common share ($0.09); Adjusted net earnings per common share, basic and diluted $0.00

Launch of Greer, SC and Milwaukee, WI bringing total number of CLEAR Plus airports to 45

Launched virtual queuing in JFK Terminal 4 and Newark Terminal B; now live in 7 airports

Spear Powered by CLEAR verification SDK, a low-code single app solution for mobile web experiences or native mobile apps

  • We’re proud of our team’s execution in Q2 – ensuring frictionless experiences and breaking new quarterly airport check-in and check-in records. The current travel environment highlights the imperative for future CLEAR innovations to ensure travelers enjoy the seamless experience they rightly deserve and have in many other settings. Our platform team has also
    reached a milestone by shipping our new Powered by CLEAR low-code, single-app partner solution.

-CarynSeidman-Becker, CEO of CLEAR

*A reconciliation of non-GAAP financial measures to the most comparable GAAP measures is provided at the end of this letter.

Clear Secure, Inc. | Q2 2022 | Page 1

Letter to shareholders

Q2 2022

Total GAAP reservations and revenue

in millions

Total cumulative registrations

in thousands

Clear Secure, Inc. | Q2 2022 | Page 2

Letter to shareholders

Q2 2022

Total Cumulative Platform Usages

in thousands

Annual retention of CLEAR Plus Net members

Clear Secure, Inc. | Q2 2022 | page 3

Letter to shareholders

Q2 2022

Dear shareholder,

Our goal in these quarterly letters is to give our shareholders (insofar as you are not a quantitative algorithm) insight into our thought process, our strategy, the underlying economics of our business as well as other macro or micro perspectives.

In our last letter, we discussed our obsession with our members’ experience and how we earned the right to bring CLEAR to new places. This concept of one-time sign-up and using your identity (connecting you to all that makes you, YOU) everywhere for frictionless experiences creates new product offerings and additional nodes in the CLEAR network. CLEAR has become a classic network-effect company that creates value for both our members and our shareholders.

The power of the network effect has been well demonstrated throughout history in various businesses. The value of CLEAR grows exponentially as we add new airports and new use cases powering the CLEAR flywheel we talked about. As our airport network accelerated in 2016, we saw firsthand the power of economic measures of network effect, including usage, new memberships, cost of acquisition and retention, all dramatically improved.

Retention is the lifeblood of a subscription business – a direct reflection of member experience and the ultimate gauge of network value. Retention can best be illustrated using retention curves that isolate factors such as unique member cohorts, various usage metrics, and join date (vintage) to calculate member lifetime value. Specifically, these curves show what percentage of a particular cohort of members is still active (paying) at various points in time.

CLEAR’s retention curves demonstrate increasing levels of 1 year retention for new members as well as members using CLEAR in multiple locations. These improving curves reflect our ability to scale the business while generating stronger unit economies. We are also seeing very high levels of retention after the first year, which provides a significant tailwind to our overall member retention and lifetime value. Although the pandemic temporarily impacted these trends, in the ensuing travel rebound, many members who might be considered “excessive churn” reactivated and returned to CLEAR.

New products and innovation will drive the expansion of our network and the continued growth of our total addressable market. We have just launched our new Powered by CLEAR Verification SDK, available for mobile web experiences and native mobile apps. This low-code integration creates a single application solution for our partners enabling a frictionless experience for their customers across both digital and physical environments. We are excited to welcome new partners to our network by creating new “nodes” for our existing +13 million CLEAR members and ensuring rapid adoption for our partners.

Our results for the second quarter of 2022 and our guidance for the third quarter reflect the continued strength of all lines of business and the power of the network effect. The second quarter of 2022 was our

Clear Secure, Inc. | Q2 2022 | Page 4

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ClearSecure Inc. published this content on August 15, 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unmodified, on Aug 15, 2022 10:42:14 AM UTC.

Public now 2022

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06:43a CLEAR SECURE : Letter to shareholders Q2 2022


Analyst Recommendations for CLEAR SECURE, INC.

2022 sales 418M

Net income 2022 -77.5M

Net cash 2022 346M

PER 2022 ratio -74.4x
2022 return
Capitalization 2,311 million
2,311 million
EV / Sales 2022 4.70x
EV / Sales 2023 3.65x
# of employees 2,251
Floating 29.8%


Duration :

Period :

Clear Secure, Inc. Technical Analysis Chart |  MarketScreener

Trends Technical Analysis CLEAR SECURE, INC.

Short term Middle term Long term
Tendencies Bullish Neutral Bearish

Evolution of the income statement


To buy

Medium consensus SURPASS
Number of analysts 6
Last closing price $29.03
Average target price $33.33
Average Spread / Target 14.8%


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