Clarivate Plc (NYSE:CLVT) Q3 Earnings Overview

• Clarivate Plc reported a Q3 EPS of -$0.09128, missing estimates, with revenue at $622.2 million also below expectations.
• The company saw a 3.9% decrease in revenue to $622.2 million, with a net loss of $65.6 million for the quarter.
• Financial ratios indicate challenges, including a negative P/E ratio of -2.68 and a current ratio suggesting liquidity concerns.

Clarivate Plc (NYSE:CLVT) is a global leader in providing transformative intelligence, offering data and insights to accelerate innovation. The company operates in a competitive landscape, with peers like Thomson Reuters and Elsevier. On November 6, 2024, Clarivate reported its third-quarter earnings, revealing an EPS of -$0.09128, missing the estimated $0.19. Revenue was $622.2 million, below the expected $640.85 million.

During the earnings call, CEO Matti Shem Tov and CFO Jonathan Collins addressed analysts from major financial institutions, including Oppenheimer and Morgan Stanley. They discussed the company's financial performance and strategic initiatives. Clarivate's revenue decreased by 3.9% to $622.2 million, with organic revenues down 2.6%. Subscription revenues rose by 0.6%, but re-occurring and transactional revenues fell by 1.1% and 13.6%, respectively.

The net loss for the quarter was $65.6 million, translating to a net loss per diluted share of $0.09. Adjusted net income dropped by 12.1% to $134.1 million, and adjusted diluted EPS decreased by 9.5% to $0.19. Adjusted EBITDA was $264.4 million, a 6.0% decline, with the adjusted EBITDA margin falling by 100 basis points to 42.5%, mainly due to lower revenues.

For the nine months ending September 30, 2024, Clarivate's revenues decreased by 2.6% to $1.89 billion. Organic revenues declined by 1.5%, with subscription revenues increasing by 1.2%. However, re-occurring and transactional revenues decreased by 2.3% and 9.3%, respectively. The net loss for this period was $444.9 million, with a net loss per diluted share of $0.69.

Clarivate's financial ratios reflect its current challenges. The negative P/E ratio of -2.68 indicates ongoing losses, while the price-to-sales ratio of 1.35 suggests investors pay $1.35 for every dollar of sales. The debt-to-equity ratio of 0.85 shows moderate debt levels, but a current ratio of 0.88 raises liquidity concerns.