CLEAR Secure Inc. closed out its fiscal year 2024 on a high note, marking a transformative period for the company. Caryn Seidman-Becker, the CEO and co-founder, kicked off the earnings call by highlighting the significance of the past year, which saw the company’s secure identity platform gain momentum across various sectors, particularly in travel and enterprise security. The need for robust security solutions has never been more pressing, especially as industries like travel continue to recover and grow. CLEAR’s mission to provide a seamless and secure experience is resonating with consumers and enterprises alike. Key innovations, such as the rollout of NextGen Identity and the introduction of EnVes (enrollment and verification pods), are driving operational efficiencies and enhancing customer satisfaction, ensuring that CLEAR remains at the forefront of the identity verification space.
The travel industry, in particular, has been a major focus for CLEAR. With 73% of airport volume now covered by CLEAR Plus lanes, the company is leading the charge in redefining airport security. The deployment of NextGen Identity has significantly improved the member experience, with 50% of users moving through CLEAR lanes in under two minutes, 85% in under five minutes, and 91% in under seven minutes. This level of efficiency is not just a convenience for travelers; it’s a game-changer for the industry. EnVes, which are being rolled out nationwide, are revolutionizing the enrollment process, making it faster and more seamless. These pods are not just about speed; they also lay the groundwork for future innovations, such as integration with e-gates, which could further automate the travel experience. CLEAR’s vision is clear: to make airports great again by leveraging cutting-edge technology to enhance both security and customer satisfaction.
Beyond the travel sector, CLEAR’s identity platform is gaining traction in other industries, most notably healthcare. CLEAR1, the company’s vertically integrated identity platform, is being adopted by healthcare providers to streamline operations, reduce insider risk, and improve patient experiences. For instance, Community Health Network has seen a 90% adoption rate among its workforce, with a 13% reduction in password reset calls, highlighting the practical benefits of the platform. Similarly, healthcare data platforms are using CLEAR to enhance the security and efficiency of clinical trials. This diversification underscores the versatility of CLEAR’s technology and its potential to solve identity-related challenges across multiple industries.
Looking ahead, CLEAR is poised for continued growth in 2025, with a focus on expanding its member base, increasing total bookings, and generating strong free cash flow. The company expects to achieve at least $310 million in free cash flow for the year, driven by the success of CLEAR Travel and CLEAR1. Leadership transitions are also on the horizon, as Ken Cornick steps down from his operational roles, and Michael Barkin and Jen Hsu join as President and CFO, respectively. These changes signal a new chapter for the company, with a renewed focus on innovation and global expansion. Caryn Seidman-Becker emphasized the importance of maintaining a strong brand that members and partners trust and love, a sentiment echoed by the entire leadership team.
In terms of financial performance, CLEAR delivered strong results in the fourth quarter, with revenue and total bookings growing by 21% and 17%, respectively. The company’s margins also saw significant improvement, with adjusted EBITDA margins reaching 24% for the full year, up by over 1,000 basis points year-over-year. The success of TSA PreCheck and CLEAR1 contributed meaningfully to these results, with TSA PreCheck now available at 91 locations and CLEAR1 gaining traction in the enterprise market. CLEAR’s ability to balance growth with profitability is a testament to its operational efficiency and strategic execution. The company also highlighted the importance of public-private partnerships, particularly in the context of airport modernization. By investing in automation and advanced security solutions, CLEAR is positioning itself as a key player in the modernization of U.S. airports, an effort that is expected to gain momentum under the new administration.
The call also addressed the company’s pricing strategy, which is designed to reflect the growing value of its services. CLEAR is focusing on gross dollar retention as a key metric, recognizing that the company’s pricing model must evolve to align with the value it delivers. The rollout of EnVes and the continued expansion of CLEAR1 are expected to support this strategy, enabling the company to maintain its pricing power while continuing to enhance the customer experience. Looking ahead, CLEAR’s commitment to innovation and customer-centric solutions positions it well for sustained growth and success. As Caryn Seidman-Becker aptly put it, “We’ve invested in it, and it’s time to deploy it.” With a clear vision, strong leadership, and a robust product pipeline, CLEAR is ready to take on the challenges and opportunities of 2025 and beyond.
