What were the key takeaways from Clarivate’s earnings call?

What does Clarivate do and what are its main business segments?

What is the revenue and EPS growth rate for Clarivate year over year?

What were the key takeaways from Clarivate's earnings call?

What guidance did Clarivate's management provide for the next earnings period?

What is Clarivate's latest dividend and current dividend yield?

Did Clarivate beat or miss consensus estimates last quarter?

What factors drove the changes in Clarivate's revenue and profit?

- **Operational Momentum**: 1.6% ACV growth, 93% renewal rate, and $115M share buybacks highlight execution of Value Creation Plan.
- **Segment Strengths**: A&G subscription mix at 93%, IP AI tools like Derwent Patent Monitor driving recovery, LS&H launching 12+ AI products.
- **Financial Update**: Raised 2025 revenue guidance to $2.44B, free cash flow of $340M expected, with 2026 strategic exits reducing transactional headwinds.
- **Growth Catalysts**: AI-native products (e.g., Web of Science Research Intelligence) targeting 2026, IP market recovery, and 88% recurring revenue mix.

**【CEO Summary Section】**
- **Value Creation Plan Progress**: ACV growth of 1.6% (up 30bps QoQ), 93% renewal rate (+100bps YoY), and $115M share buybacks year-to-date.
- **Segment Highlights**: 
  - **A&G**: 2% ACV growth, 93% subscription mix, 100+ contracts for new content frameworks.
  - **IP**: Flat YoY recurring revenue, 3% improvement in organic growth rate, AI tools like Derwent Patent Monitor and IPfolio launched.
  - **LS&H**: 2% ACV growth, new products like DRG Commercial Analytics 360 and AI-powered regulatory assistant.
- **Strategic Exits**: Completed exit from A&G transactional book sales and LS real-world data resale market.

**【CFO Financial Commentary】**
- **Q3 2025 Results**: 
  - Revenue: $623M (flat YoY), Net Loss: $28M (improved vs. prior year due to FX gains).
  - Adjusted EPS: $0.18 (flat QoQ), Free Cash Flow: $181M.
- **Year-to-Date**: 
  - Organic growth improved by 160bps, Recurring Revenue Mix: 88% (vs. 80% 2024).
  - Free Cash Flow: $276M (vs. $240M prior year), $150M shares repurchased.
- **Updated Guidance**: 
  - Revenue: $2.44B (midpoint, +$50M), Adjusted EBITDA: high end of range.
  - Strategic disposals to reduce 2026 revenue by ~$100M, offset by organic growth.

**【Q&A Highlights】**
- **IP Segment Recovery**: 
  - 2025 YoY recurring revenue flat vs. -3% 2024, driven by new products and market recovery.
  - AI tools like Derwent Patent Search and IPfolio expected to drive future growth.
- **AI Product Innovation**: 
  - AI-native products (e.g., Web of Science Research Intelligence) targeting 2026 launch with 20+ contracts secured.
  - AI integration in existing workflows improving retention and efficiency.
- **Transactional Revenue Impact**: 
  - Q3 2025 saw $20M+ e-book sales, delaying exit of transactional business by ~$100M to 2026.
  - Long-term focus on 88% recurring revenue mix to enhance predictability.
- **Long-Term Growth Outlook**: 
  - A&G: 3-4% market growth achievable through subscription model.
  - IP: Returning to 4-5% growth with new product pipeline.
  - LS&H: Higher growth driven by AI-enabled solutions.


Clarivate Plc (CLVT) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

CLVT

CLVT fundamentals

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