LONDON - Clarivate Plc (NYSE: CLVT), a global leader in providing trusted insights and analytics, reported its fourth quarter earnings, slightly surpassing analyst expectations for adjusted earnings per share (EPS) but falling short on revenue.
The company announced a fourth quarter adjusted EPS of $0.23, which was $0.02 higher than the analyst consensus of $0.21. However, revenue for the quarter was $683.7 million, narrowly missing the consensus estimate of $684.59 million.
The fourth quarter revenue represented a 1.2% increase compared to the same period last year. Despite the slight revenue shortfall relative to analyst expectations, the company's adjusted net income remained stable with a marginal decline of 0.4%. The adjusted diluted EPS increased by 4.5% or $0.01. Clarivate's adjusted EBITDA for the quarter decreased by 2.0% to $298.2 million, with the adjusted EBITDA margin contracting by 150 basis points to 43.6%.
Jonathan Gear, Chief Executive Officer of Clarivate, commented on the company's performance, stating, "In 2023, we delivered subscription revenue growth and navigated through market headwinds." He highlighted the achievement of cost synergy targets and significant cash flow generation, which facilitated debt repayment and share repurchase. Gear acknowledged that organic revenue growth was below expectations and detailed the company's multi-year transformation plan to return to market growth rates.
Looking ahead, Clarivate provided its full-year 2024 outlook, expecting improved organic growth in subscription and re-occurring revenue, although this is anticipated to be partially offset by soft transactional revenue.
The company projects revenues between $2.57 billion and $2.67 billion, with organic revenue growth ranging from 0% to 2%. The forecasted adjusted EBITDA is between $1.055 billion and $1.115 billion, with an adjusted EBITDA margin of 41% to 42%. Adjusted diluted EPS is expected to be between $0.70 and $0.80, and free cash flow is projected to be between $420 million and $500 million.
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