- Revenues decreased 1%, Adjusted Revenues increased 1% (2% on a constant currency basis)
- Annualized Contract Value (ACV) of Subscription-Based Agreements increased 4.6%
- Reaffirm Outlook for 2019
(15 May 2019) Clarivate Analytics Plc (NYSE: CCC, CCC.WS) (the “Company” or “Clarivate”), a global leader in providing trusted insights and analytics to accelerate the pace of innovation, today reported results for the first quarter ended March 31, 2019.
First Quarter 2019 Financial Performance
- Revenues decreased 1%, to $234.0 million in the first quarter of 2019 from $237.0 million in the first quarter of 2018
- Adjusted Revenues increased 1%, to $234.2 million in the first quarter of 2019 from $231.8 million in the first quarter of 2018 (2% on a constant currency basis)
- Net loss of $59.3 million in the first quarter of 2019 compares to a net loss of $77.0 million in the first quarter of 2018
- Adjusted EBITDA decreased 6%, to $59.3 million in the first quarter of 2019 from $63.3 million in the first quarter of 2018
- Cash flow from operations increased 11%, to $42.5 million in the first quarter of 2019 from $38.2 million in the first quarter of 2018
- Standalone Adjusted EBITDA increased 2%, to $312.0 million for the twelve month period ended March 31, 2019 from $305.9 million for the twelve month period ended March 31, 2018
Adjusted Revenues and Adjusted EBITDA are non-GAAP financial measures used by management to measure operating performance. In addition, we are required to report Standalone Adjusted EBITDA pursuant to the terms of our credit agreement and indenture. These terms are defined elsewhere in this release. Please see schedules appearing later in this release for reconciliations of these financial measures to the most directly comparable GAAP measures. For a definition of Annualized Contract Value (“ACV”) please refer to our Registration Statement on F-4, along with our other filings with the U.S. Securities and Exchange Commission (“SEC”).
Completes merger with Churchill Capital Corporation
On May 13, 2019, the Company completed its previously announced merger with Churchill Capital Corp (“Churchill”), following the receipt of stockholder approval at Churchill’s special meeting of stockholders.
Comments from Management
“We are delighted to have completed the merger earlier this week with Churchill shareholders voting overwhelmingly in favor of it,” said Jerre Stead, Executive Chairman of Clarivate. “We chose to merge with Clarivate because of the quality of the business, its competitive position, and attractive global portfolio of market leading, business-critical information and technology solutions that support its customers. Having completed the merger, expanded the number of our board members, and improved the capital structure, our focus is to enhance both growth and profitability. As Executive Chairman, I look forward to working closely with the Clarivate team and sharing my experience, as we position the company for future growth.”
Jay Nadler, Chief Executive Officer of Clarivate said, “We couldn’t be more excited to have Jerre Stead join our company as Executive Chairman. Jerre’s vision, leadership, experience, and successful track record, with a career that spans more than 40 years, are tremendously valuable to our company.”
“Separately, we are pleased with our financial results for the first quarter, which were in line with our expectations,” Mr. Nadler continued. “Adjusted revenues increased 2% on a constant currency basis, while Annual Contract Value (ACV) of subscription-based license agreements increased 4.6% compared to the prior year quarter, and revenue renewal rates remained solid at 93.4%. Having successfully completed our separation from Thomson Reuters six months ahead of schedule, and our merger with Churchill, Clarivate begins the next chapter of its transformational journey. Going forward, we’ll continue to invest in our market-leading brands and products while reaping the benefits of our previous investments to drive greater efficiency. Our investments will allow us to bring new products to market and to expand in key geographies so that our customers may transform the way that they bring innovation to life.”
For more details, see here for the original press release.