YOU Earnings Prediction
The chart below shows how YOU performed 10 days before and after its earnings report, based on data from the past quarters. Typically, YOU sees a -3.69% change in stock price 10 days leading up to the earnings, and a -1.25% change 10 days following the report. On the earnings day itself, the stock moves by +3.45%. This data can give you a slight idea of what to expect for the next quarter's release.
YOU Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
198.42M
23.72%
6.25%
Gross Margin
81.88%
-0.69%
-0.72%
Operating Margin
17.48%
42.00%
8.30%
Net Margin
19.16%
14.39%
-7.31%
EPS
0.25
47.06%
-3.85%
No Data Available
YOU Earnings Analysis
Clear Secure, Inc. Corporation (YOU.N) Earnings Conference Call
Positive
Membership Enrollment Surge: 1. Strong Membership Growth: CLEAR's total cumulative enrollments surpassed 27 million, increasing by 2.2 million in the quarter, with expectations to reach around 30 million by year-end.
Bookings Acceleration: 2. Significant Bookings Growth: Third quarter bookings growth accelerated, driven by improvements in the airport channel, pricing, and strong retention, with total bookings expected to be between $224 million and $226 million in Q4.
Operating Leverage Performance: 3. High Operating Leverage: The company demonstrated significant operating leverage with incremental operating income margins of 63% and incremental EBITDA margins of 50%.
Projected Free Cash Flow Growth: 4. Increased Free Cash Flow: CLEAR anticipates free cash flow of at least $280 million for 2024, representing a 40% year-over-year increase, despite a $182 million outflow for annual credit card partner payments.
Dividend Increase Announcement: 5. Quarterly Dividend Increase: The company raised its regular quarterly dividend by 25% to $0.125, reflecting confidence in its cash position and strong free cash flow profile.
Negative
Member Growth Decline: 1. Declining Net Member Adds: Active CLEAR Plus members grew by only 55,000 in Q3, indicating a sequential decline compared to Q2, which is typical for this quarter.
Price Increase Effects on Membership: 2. Impact of Price Increases on Family Membership: The price increase for family members from $70 to $119 resulted in a modest impact on family gross additions and retention rates, suggesting potential challenges in member growth.
Cash Management Concerns: 3. High Cash Outflow: The company reported a significant cash outflow of $182 million for the annual payment to its credit card partner, raising concerns about cash management.
Sequential Growth Outlook: 4. Lower Sequential Growth Expectations: Despite a strong performance in Q3, the company anticipates that Q4 net adds will be up sequentially from Q3, indicating a potential slowdown in growth momentum.
Operating Cost Increase: 5. Increased Operating Costs: The new ambassador compensation structure shifts dollars from sales and marketing into direct salaries, which may lead to increased operating costs in the short term.
YOU FAQs
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YOU Earning Call Sentiment
Clear Secure, Inc. (YOU) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
YOU.N
5.18%Positive
The earnings call summary and Q&A indicate a positive outlook: strong financial performance with record member growth, increased guidance, and a 25% dividend hike. The Q&A reveals confidence in pricing strategies and partnerships, such as with Uber. Concerns about unclear responses on seasonality and pricing impacts are noted but do not significantly overshadow the overall positive sentiment. The market cap suggests moderate sensitivity to news, leading to a prediction of a positive stock price movement (2% to 8%) over the next two weeks.
