CLVT Earnings Prediction
The chart below shows how CLVT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CLVT sees a +13.10% change in stock price 10 days leading up to the earnings, and a -1.66% change 10 days following the report. On the earnings day itself, the stock moves by -5.95%. This data can give you a slight idea of what to expect for the next quarter's release.
CLVT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
663.00M
-3.03%
6.56%
Gross Margin
37.60%
-5.24%
-0.40%
Operating Margin
9.92%
-26.03%
-13.06%
Net Margin
-28.93%
-76.56%
174.48%
EPS
-0.27
-79.23%
200.00%
No Data Available
CLVT Earnings Analysis
Clarivate PLC Corporation (CLVT.N) Earnings Conference Call
Positive
Earnings Per Share Beat: Clarivate Plc reported an adjusted diluted EPS of $0.21 for Q4 2024, exceeding expectations of $0.20, indicating strong financial performance.
Q4 Revenue Achievement: The company achieved Q4 revenue of $663 million, contributing to a full year revenue of $2.56 billion, showcasing resilience despite challenges.
Organic Revenue Improvement: The organic revenue decline improved from 1.5% year-to-date to 0.7% in Q4, reflecting better performance in the business segments.
Subscription-Only Strategy Transition: Clarivate is transitioning to a subscription-only strategy for ProQuest ebooks and digital collections, which is expected to enhance revenue predictability and growth.
New Product Launch Impact: The launch of DRG Fusion, a new modular subscription-based product in life sciences, is anticipated to increase the value proposition and recurring revenue.
Sales Execution Improvement: The company is focusing on improving sales execution by attracting experienced sales leaders and optimizing the reporting structure, which is expected to drive new business.
AI and Technology Investments: Investments in AI and technology are leading to positive usage trends across various product lines, enhancing customer adoption and engagement.
Value Creation Strategy: The value creation plan (VCP) is well underway, with strategic disposals and a focus on recurring revenues expected to improve profit margins and operational efficiency.
Strong Free Cash Flow: Clarivate's free cash flow for Q4 was $59 million, contributing to a full year total of $358 million, demonstrating strong cash generation capabilities.
Recurring Revenue Improvement: The company anticipates a recurring revenue mix improvement from 80% to 85% in 2025, which will enhance predictability and profit margins.
Negative
Net Loss Reported: The company reported a net loss of $192 million in Q4, despite an improvement from the previous year, indicating ongoing financial challenges.
Revenue Decline Analysis: Organic revenue declined by 1.4% for the full year, with a significant drop in transactional revenues by 6.5%, highlighting struggles in core business areas.
Decline in Recurring Revenue: Recurring revenue types saw a decline of 1% in Q4, primarily due to the timing of year-end patent renewals, suggesting instability in subscription-based revenue streams.
Impact of Divestitures: The divestitures of ScholarOne and Valleypad resulted in a $15 million decline in top-line revenue and an $8 million decline in bottom-line performance, indicating the impact of strategic exits on financial results.
Currency Impact on Revenue: Foreign exchange fluctuations negatively impacted revenue by $5 million and profit by $9 million, reflecting vulnerability to currency market changes.
Revenue Reduction Concerns: The anticipated revenue reduction of approximately $140 million due to strategic disposals in 2025 raises concerns about future growth prospects and revenue stability.
EPS Decline Forecast: Adjusted diluted EPS is expected to decline by $0.08 from the previous year, indicating potential challenges in maintaining profitability amidst strategic changes.
CLVT FAQs
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CLVT Earning Call Sentiment
Clarivate Plc (NYSE:CLVT) Q4 2024 Earnings Call Transcript
CLVT.N
-2.16%Positive
The earnings call presents a mixed picture: while there are positive aspects like a share repurchase program and an improved recurring revenue mix, there are also concerns such as foreign exchange risks, competitive pressures, and a net loss. The lack of guidance and clarity in management responses further tempers optimism. Given the company's market cap, the stock is likely to remain relatively stable, leading to a neutral prediction.
