LONDON - Clarivate Plc (NYSE: CLVT), a global leader in providing trusted insights and analytics, reported first-quarter earnings that met analyst expectations and revenue that slightly exceeded forecasts.
For the quarter ended March 31, 2024, the company posted adjusted earnings per share (EPS) of $0.14, aligning with the consensus estimate. Revenue reached $621.2 million, surpassing the analyst consensus of $614.85 million and marking a slight decline of 1.3% from the previous year's $629.1 million.
The company's organic revenue saw a decrease of 1.7%, primarily due to a drop in transactional and other revenues of 11.4% and re-occurring revenues of 5.1%. This decline was partially offset by a 2.4% increase in subscription revenues. The net loss attributable to ordinary shares stood at $93.8 million, a significant shift from the net income of $24.7 million reported in the same quarter last year.
Jonathan Gear, Chief Executive Officer of Clarivate, highlighted the company's progress in key objectives, including product investments and operational initiatives aimed at driving future organic revenue growth.
"Our Intellectual Property segment refined its go-to-market operating model and revived patent intelligence solutions, resulting in commercial success across our software solutions, particularly IPFolio, and improved Derwent renewal rates," said Gear.
For the full year 2024, Clarivate reaffirmed its outlook, anticipating adjusted EPS in the range of $0.70 to $0.80, with the midpoint of $0.75 falling slightly above the consensus estimate of $0.74. The company expects revenue to be between $2.57 billion and $2.67 billion, with the midpoint of $2.62 billion matching the analyst consensus.
The company's financial performance reflects ongoing investments in product development and strategic acquisitions, such as MotionHall and Global QMS, Inc., aimed at enhancing its portfolio in the Life Sciences & Healthcare segment. Despite a decrease in free cash flow, which fell by $56.4 million to $111.8 million, and a decrease in net cash provided by operating activities, which dropped by $51.3 million to $176.2 million, Clarivate remains committed to revitalizing its operations and delivering value to clients, colleagues, and shareholders.
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