Clear Secure IPO And Financials Examined

By Haris Khurshid and Zach Segal, Published Jul 15, 2021, 10:55am EDT

Clear Secure IPOed successfully, up 30% from opening, and valued at ~$6 billion, a robust 25+ times its 2020 revenue. The company aims to increase its usage by 360x to achieve its vision. Can it get there?

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IPVM analyzes the company's financials, valuation, growth strategy, and risks.

*** ********* ********’* *-*

Executive *******

***** *** * ****** to ** **** *******, up ** ** ***** a *** ****** *** current ******* ** **** once * *****, ***** would **** *** ******* airport ***** *** ******** vertical **********. **** ***** ***** ** this, ** **** ****** justify *** ******* *********.

*******, *** ******* ***** a **** ** **********:

  • ***** ** ***********, **** pre-COVID, ** *** **.*%
  • ***** ****** *********** *** low, ** ******** ~* million ****** *** ********** headline ****** ** *.* million
  • ********** ******** **** *** PreCheck ***** ** ** order ** ********* **** expensive *** *** ~** the ****** ** ****** customers

** **** *** ********* into ****** ** ******** life **** *** *** wants, **** **** ****** a ********** *** ********** company, *** **** ******** expansion **** *** **** competitive ********* ***** ***** value ***-** **** *** competition ** **** *****.

Company ********

******* ** ****, ***** enables ********* ** **** time ******** *** ** US ******** *** *** cost ** $*** ******** (called ***** **** ***********) by ***** ************ ****** ***** ********, instead ** ******* *** a *** ************** ** check ***** ******** ****/**.

***** ***** ** ****** and ********* ***** ******** with ***** **** ****** Pass (*.*., ******* ***** test *******) ** ***** people **** *** ***** ecosystem *** **** ************ use-cases **** ** ** stadiums *** ***** ******. They **** ***** ** go **** ***** **** monthly ** ***** **** multiple ***** * ***.

*** ******* ******* *,*** employees ** ** *** 31, ****, *********** ** ** ** airports, *** ** ****** and ************* ********, ** ****** ****-******* partners, *** ******** *** unique ***** *********, ***** with **** *******, ***********, theatres, *******, *** ***** parks.

**** *-****** ***** **** Clear ******** *** ***** **** ***** and ********** ********* *******:

5.6 ******* *********, *.** ******* ******

**** ******** *.* ******* total *********** ***** ************ includes ******** *** ***** memberships, *** **** **** had *.** ******* ******* monthly ******* ** ****. Clear **** ******* *********** grew ** * **** of **% ** ****, versus **% ** ****.

Expansion: **-***** * **** ** **-***** * ***

*****'* ******* ********* ***** ***** ***** to *********** ******** *** times **** *** ******* application:

** **** ***** ** become **** ** ******'* daily *****, ** ** from ** ***** * year ***** **—***** ** how ****** ** ******* were ***** ** ** airports—to ** ***** * day,[...]We **** ** ****** frictionless, *********** *********** **** the **** *** ***** your ***** ** **** you *** ** **** office ** *** *******.

**** ******** ***** ********* of ***** ***** ** used **** *********** ***** and ****** *****-***** ****** and ******** **** ******** everyday ********* **** ** offices *** ********* *********. However, ******** ****** ********* pay *** ***** *** security ****** *** *** be ********* ** ***** residents ** ******* ** pay *** ***** ** enter ***** *********. ** addition, ***** ****** *** very *********** **** *********** large ******* **** **** facial *********** *******. *******, with***** ****** ****** ****************** **** ***** ****** and ***** ********** ************* potentially *********, ** ** unclear **** ***** ***** adds ** **** ***** over ************.

******

*****************

***** ***** ** ********* their ***** **** ********** by ****** *** ******** and ********* *** ******* through ******** ********. *** company ******** ** ** airports **** **% ** total **** *** ********* volume, ** ***** ** room ** ****** **** other ******** **** **** departure ******, *** ** they ****** *** ******** without ***** **** ****** smaller *** **** ******** to *** ******* ******* growth. *******, ***** ******* *********** ****** is ****** ** *** US *** *** ******** times * ****, ***** is *** ********* *****, so ****** ** **** channel ** *******. **** also **** ** ******* memberships ******* ***** ******** airports *** ************ **** American *******, ****** ********, and ***** ********.

***** *********

**** *** *** ~$*** million **** *******, ***** will ****** **** *** verticals *** *************** ** its **** ********* ** include ******* **********, ******** access, *********, *** **********, and ****** ********. ***** has ******* ******* ********* Clear **** ** ***** avenues **** ***** ****** such ** ******* *****, developed * ****** **** in ******** ** *****-**, etc. *** **** ******* that ** *** ***** revenue ******* **** **** immaterial. **********-********** ******* ***** ******** **** become *****’* ******** ******** over *** **** *** years:

** **** ** * few ***** ** **** aviation ** *** ******** vertical, ******* *** ***** ones *** ** **** bigger.

** ***** ** **** to ****** **** ***** verticals *** ** **** daily, ** ***** ****** many ***** ** ******** for *** ***** *** have * **** ****** time ********* **** ****** who *** **** ***** a ****. *** ****-**** scenario *** ***** ** it ******* * ********** and ********* **** ** life, **** ** **** to ***** **** ****** and ********* ***** ******** verification ** ********.

*** ******** ***********

***** ** ****,***** ** *** ** 3 ************* **** ***** ******** support *** *********, ********, as **** ** ******** TSA ******** **** ***** memberships. ***** **** **** be * *** ******* stream *** *****, ******* and ******* ***** *** not **** *********.

Competitive *********

*********** *** ***** ****

*** ****** **** ** airports, ***** ******** ******* TSA ******** (***** ** 1/10th *** **** ** $85 *** * *****). Alternatively, ********** ********* *** pay ******* *** ****** go ******* *** ****** process.

***** ***** ********* *** document/identity ********* *******, *** PreCheck ********* *** ******** screening ******* ** **** as *** ********/******** ********* process. ********* **** **** time ** ******* ** both ******** **** **** would ** ******* ** one, ** ******** **** TSA ******** *** ***** Plus *****. *******, *** less ******** ** *****-****** travelers, *** ******** ** a *****-**** *********** ** reducing **** ** *********.

****, ***** ********* *** use ***** *** ************ and *** ******** *** physical *********, *** *** PreCheck ************ **** ** typically ******* **** *** normal ************ **** *** may *** ** ************* longer **** ***** *****.

*** ******** *************** ******* ******* ** 2020, ** *****'* ******* average ******* ** **** and ** ***** ***** cumulative ******* ********* *************, showcasing **** ** ** more ****** ****.

************, ***** ************ **** airlines *** *** *** exploring ***** *** *********-***** verification ***** **** ***** compete **** ***** ****. These *********** **** *** advantage ** ******* **** (or *****) ** ****** of ** *** ****** safety, ******* **** **** past **********.

*********** ** ***** *********

***** *** *********** ** the ****** **** ****** and ***** *** *************** foothold ** *** ** airports. *** *******, ***** has ************ **** ******* companies *** ********** ******** have ********* ****** ****** that ******* **** *****:

**** ***** *********, ********* larger ****-*********** ********* **** PricewaterhouseCoopers, ********** *** ***, are ********* ** ********** services ******* ** *** Health **** ********.

** ***** ************** *********, where ***** ** *** yet ***********, *********** ***** emerge *** ********* ********* may ******* ***** *** solutions. *** *******, ***** mentions ******, *****, ********, or ******, ***** **** their *** ****** *********** technology ******* ******** ** billions ** ****** ******** through **** ** ********* systems ** ***********.

************, ********* ********* ****** control ********* (**** ** Idemia *** *******) ** well ** ******** ****** recognition ********* **** *********, Paravision, *** ********** *** focusing **** ** ************ use-cases *** *** ******* directly **** *****.

Moat ******* ***********

***** ******* **** **** an ********* **** ********* new ******** ** *** airport ******** ********, *** to ***** ******* *********** airport ******* *** *********** with ***. ** ** unlikely **** *** **** authorize ******* ******* ******* to ******* * ********* service **** ** *****.

****** ********** *** ********** to ****** ******, *** new ******* ***** **** established ********* *****, ************** to ****** *******, ** add ********* ***** **** Clear (*.*. ***** ******* or **** **********), *** various *********, ***** ***** be ***********.

****, ***** ***** ** opt-in, **** **** **** regulatory **** *** *********** than ***** *********-***** *********. People ****** ** *** Clear’s ******** *** ** through * ********* ********** process, ** ***** **** are ******* ********, **** do *** **** *** same ******* ********* **** sell ****** *********** ** other ********** *** ************ do.

Churn *******/*** *** ****** ********* ****

*****'* ***** ** ***********, at **.*% ** **** and, **** ***-*****, ** 2019, *** **.*%. ******** with *** ********** *** paid ********** ******, **** signifies ********** ** ***** being **** ** **** total ******* ** ** will **** ** ******* significant *** ********* ****** to ******* ***** **** churned.

** *** **** ***** can ******* ** *** strategy ** ********* *** often ***** ******* *** the *******, ***** ****** diminish, ****** ******* *** how *** **** *** go ** ************* **** remains ** ** ****.

Bookings *******

******** ******** ** **% at *** ***** ** the ******** *** **** increased **% *** *** low ***** ** ** 2021 *** *** ******** to ******** ** ****, though ** *** **** is *******:

IPVM Image

2020 ********** ******** ****, ******* **

***** *****'* **** ******* growth *** ******, ** 20%, **** ******** ********* that **** ******* **** pre-pandemic **** ***** *** be ******** ****** *** Pandemic. *******, ******** ********* 10.6%, ********** *** ********* churn *** ******** ********** to **** ** *** an ******* *********** ******* during *** ********.

2021 ** ******** ****, ******* ****

** ** **** ******* decreased **% *** ******** decreased **%. *** ******* decrease *** ******** ** bookings *** ******** ** 2020. *******, **** ******** decreased ****** *** ********** impact ** *** ********. It **** ** ********* to *** *** ******** change ** ** **** to *** *** **** the ******* ** ******** back.

Loses ******** ** ****

***** ********* ** ****, however, **** *** *** a ****-**** ******** ***** for *** ******* ** it ********* ***** ***** shifts ****** ** *** pandemic. ***, ******* ********* to **** ******* ** already ********* ********* **** 2019. ********, *** ******* decided ** ***** ***** and ********* *** *** able ** *** *** operational ***** ** ******** while ***** *** **** low *******.

IPVM Image

Losses ******** ** ** **** *** ** **** **** *** *******

****** ********* $** ******* despite ***** ******* ** Q1 **** ********* *** to * **** *** repurchase ** ****** ** $49.2 ******* ** * 1 **** **** ***** fair ***** ** ******* to *** ****-**** ******** trend.

IPVM Image

**** * ***** **** balance ** **** ****** growth ********* ***** ***, paired **** ***** ****** revenue *** ***** ***********, which **** **** ******** towards ************* ******* *****-**, Clear’s ***** ******* ************* means **** *** ****-********** to ******* * ********** airport ********* ******** *** take ********* ** *** travel ******** ****** ******* up ****.

**** ******* *** $*** million ** **** ***** to ***** ***, *** with ** ********** ~$*** million **** ***** ***, the ******* *** ****** cash ** **** ** spend ** ********* **** not **** *** ********, but **** **** ***** new *********.

Lifetime ***** *** ******** *********** ****

******** ***** ** ********* at *** ******** *********** cost *** ***** **** using **** **** **** report. **** ***** **** can ******** ** ****** in ***** *** *********.

Governments ********* *** ** *****

***** **** ******** ** operate, ********* ******-******* ********** in ******* *******. *** example ** ***** *****-************, ***** *** ** pay *** ******* ** 10% ** ******* **** members ********** **** ******* county, **% *** ******* within *****-****, ******, *** Collier ******** **** * rental *** ** $* a ************. *** ** a**** ******* ********, ***** **** *** 12.5% ** ***** ********. This ***** ******** *** incentivized ** ********* **** of *********.**** ***** ******* *** Clear***** **** $***,***** ******** *** ** 2020. **** ** * times *** $***,************** ******* ****, ***** *** a $*** ******* ********* *** did $** ******* ** revenue ** ****.

Shareholder *********

******** *******-************ ******* ** ***** with ~**% ** ****** rights, ***** *** **-******* Kenneth ******* **** ~**%.

IPVM Image

“Long *****”, “**** **********”, “**** *****”

***** *** * *.* / * **** ****** with *** ******* ** their ******************** ***** *** ********** being ********* ** ******** reviews *** *** ** positive ****.

*** ***** **** ********* negatively:

IPVM Image

**** ********** *** **** repeated ** * ***********:

IPVM Image

*** ******* *** *** mentioned **********, **** ******* Glassdoor *********** ***** “**** money” ** “**** ***” in ******** *******:

IPVM Image

*******

***** *** * ********** IPO *** *** ******* $500 ******* ** **** on **** *** *********, which ** ********* ******* they **** ** ********* of *****, *** ***** customer **** ** ***, churn ** ****, *** their ***** *********** ** other ********* ** **** clear. **** ***** ******** their ********** *** ******** to ****** * **** of ***** **** ** the *** *******, *** this ******** ********* **** traditional ****** ******* *** offerings **** ********** **********, that *** ******* *****'* functionality ******* ********* ****** memberships.

Comments (13)

* ** * ***** member. *** **** ******** in ** ********** ** they **** **** *********. As * ********, *'* prefer **** ***** ** their **** ********.

Agree: 2
Disagree
Informative
Unhelpful
Funny

******* **** ******** ** more ******** ** ****?

Agree
Disagree
Informative
Unhelpful
Funny

********. ******* * ** not *** ****** ** much ** * **** to, *** ** ** experience *** *** ********* I *** ********* ******* had *****. *******, **** they **, *** ********** is **** ****.

* **** *** *********** Clear ** * ******* and ** *** ****** want **. * ***** it ** ** *** position *** ** ** take ******. ***** ** a *** ****** **** you *** **** "**** know" ***** *** ******* but ***** ** **** to **** * *** of ******** *********** ** order ** ***** * plane ******, ****** ***** seems **** * ***** step. * ***'* **** to **** ** *** that **** ** ** to * ********. **** line * *****.

Agree
Disagree
Informative
Unhelpful
Funny

* ** * ****** Clear ******, *** * let *** ************ ***** because ** **** ****'* at ****** ******** ** be ****** ** **.

****, * ***'* *** Clear ******* ****** ******** to ** **** ** times * ***. * doubt **** ****** ** anything **** **** * day **** ****** ********* that ******** *** **** of ****-********** **** ***** provides. ***** *** ******* a *** ** ******* for ********* ******-************ **** do *** **** ** attendant, ** ** ***** is ****** ** ** after **** ******, **** luck.

Agree: 1
Disagree
Informative
Unhelpful
Funny

*********** *******, *** *** thing * **** ** point *** ** **** there ** ** "***********" between ***** *** ********. Clear ******** *********** ********. So **** ********.

**** * ****-******* ***********, Clear ** **** ********** then ********, *** **'* really *** *****. * can *** **** ******* I **** *********** ********** with *** ***** ********* -- ***** **** ******* Precheck, ******** **** ******* Clear, *** ***** + Precheck. ********* ***** + Precheck ** *** **** scenario, *** ** * had ** ****** *** solely *** *** **** of ****, ** ***** definitely ** *****, *** that ** ***** ** my ********** ** ********* hundreds ** ******* ******* roughly ** ** ******** that *** *****.

***, ** ** ***** (pun *** ********...), ******** results ** **********. ** ******** ***** that. ***'* **** ** take *** *****, ***'* have ** **** ****** out ** **** ***, etc. *** ******* ** the ********** ** ******** -- ********** ** **** times -- *** ***** to *** ******* *** verification ***** *** ***** extremely ****, *** ***** allows *** ** **** all ** **** *** go ******** ** *** front ** *** ****. I've **** ******** **** my **** * ****** of *****, *** ***'* used ******** **** *** I've **** ***** **** and *'** ****** *** through ****** ***** ****.

****** **** -- * don't *** ***** ****** to ******* * *** of ********** ******* ******** business, ** * ***'* see ** ** *********** with ******** ** ***. They're ******* ** ******** or ******** *********, *** I ***'* ***** *****'* any ******** **** *** make * **** **** business *** ** **** market. ******* ** **** be ****** ** ******* that ****** *********, * don't ****.

Agree: 3
Disagree
Informative: 2
Unhelpful
Funny

*'* * ***** ******, but * ** ***, at **** ****, **** Precheck, *** **** **** I **** **** * have ** **** **** of *** ******** *****, Clear **** **** *** a ***** ** **** and *** **** ******, me ******** **** * look ** ** **** travel ***********, **** ** more ******** ** **** the ***** ** **********. Indeed, ** *** *** a ******** *********, ***** might **** ** ********** "cheap".

***, *********, **** ** have ***** ** * leisure *********? ******** ***. Which **** *** ******** (which *** **) *** Clear **** *** **** aggressively **** ** **** to *** ********* ** the *******/****** ***** ******. Bundle ** ** **** lounge ****** *****, ** some ***** ******** ***** perk. ***** ***** ******* to **** **** ***** or *********. ***** ********** with *** ****** *** fly **** ***** *** who ******* **** **** you ***** ****.

*'* *** **** ***** the ***** ******* ****** piece ******?

Agree
Disagree
Informative
Unhelpful
Funny

(DISCLOSURE: * ** * ****** ******** ** * ***** **********., ******.)

***** ** ****** ** one ***** ******. ****** in *** "********" ******** is *** *** ** CLEAR *** *** *******.*****, ***** ******* ** speed ******* **** ********* scans

* **** *** ******** above **** **** **** CLEAR *** *** ******** are ************* ********, ******** they ** ******* ** where *** **** ** spend **** ******. (*** don't ****** **** *****'* list ***** ** ***** discounted *** ********** ********, which ******* *** ***** difference ******* ***** *** TSA ********.) **'** **** to *** ** *****'* entry ** ** ******** TSA ******** ****** **** change *** ********* ********.

********* *** ********* *******, presumably ***** *** ********* by ***** ******* ** the ********, *** **** is * ********* ***. (Ask **** ********** ******* security ********* *** **** feel ***** ***** ****.)

*** *** ***** *** believe **** ***** ****** stick ** *** **** business ** ********, ***'* forget **** **** ** version *.* ** *****. Version *.* ** *****, which *** ***** ** the ******* ********, ***** up ***** ************ - ********** ** Verified ******** **** *** the ******* ** ***** Registered ******** ****, ***** ** ***** Seidman-Becker ** ** ****** the *******. ** *************** is *** ** *****'* survival; *** ****'** ** a **** ******* **** to *** ** ***** can ****** ** * leading ******* ********.

Agree
Disagree
Informative: 3
Unhelpful
Funny

**** *********** ****, ****** for ****. *** *** saying ****, ** **** opinion, ***** **** ** break *** ** ***** airport ***** ** **** wish ** ****** ******, based **** **** ********** of ***** ******* ** do **** ****?

Agree
Disagree
Informative
Unhelpful
Funny

*******. ** ***** **** only ** ******* ** the ******* ******, *** churn ** *********** ***** possibly ** *****. ** addition, ******** *** ***** make ** ********* ***** in ****** **** ***** is ******* *** ** new ** ******** *** expansion.

** ** ****'* **** for *****, *****'* * possibility **** *****'* ******* presence ***** ** **** stronger ***** ***. *******, the ******* ** **** sporting/entertainment ****** ******** ******* expansion ***** *** ***** (and ******).

Agree: 1
Disagree
Informative
Unhelpful
Funny

****, ** ***, ******* opportunities ** *** ***** that **** ***** ****? Especially **, **** ***** be ******, **** * airports (********, *********, **** Kong...etc)?

******* ******* **** *** with *** ******* ****** even **** ********, *** subject ** ********* ****-*****, even **** ********, ***** could ** **** ********* times ***** **** * might **** ********** *******. So, ** ******* ****, thank *** *** ******* my **** ** **** of *** ****** ** the *********.

Agree
Disagree
Informative
Unhelpful
Funny

********* ** ***** ** airports ******* ** *** United ****** ***** ******* the *********** ** *** relevant ******** ************** *********** (as **** ** *** airports ********** ** ******).

***** *** ********* ******* performed **** ******* ** the ****** ******, *** I **** ** **** if ***** *** ********** the ************** *********** ** the ****** *******, *********, China, ***., ** ******* those *********** (********** *****, which ** ******** **** and **** ********* **** Hong ****) ***** ** receptive ** ** ******** company ****** ***** ******** perimeters.

Agree
Disagree
Informative
Unhelpful
Funny

*************** ** *** ** CLEAR's ********

* ***'* ********** ***** CLEAR ** ***** ** diversify. ** *** ** anyone **** *** ******** about *** **** *** anywhere ***** ** ***** goal ** ** **** per ***? (** **** 1 *** *** *** on *******)?

Agree
Disagree
Informative
Unhelpful
Funny

*** **** ******** *** the ***** **** * had ***** ** *****'* daily *****-*** ****. ** certainly ** * ******* goal...

Agree
Disagree
Informative
Unhelpful
Funny
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