Clear Secure IPO And Financials Examined
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?
IPVM analyzes the company's financials, valuation, growth strategy, and risks.
*** ********* ********’* *-*
Executive *******
***** *** * ****** ** ** used *******, ** ** ** ***** a *** ****** *** ******* ******* of **** **** * *****, ***** would **** *** ******* ******* ***** its ******** ******** **********. **** ***** ***** ** ****, ** will ****** ******* *** ******* *********.
*******, *** ******* ***** * **** of **********:
- ***** ** ***********, **** ***-*****, ** was **.*%
- ***** ****** *********** *** ***, ** estimate ~* ******* ****** *** ********** headline ****** ** *.* *******
- ********** ******** **** *** ******** ***** is ** ***** ** ********* **** expensive *** *** ~** *** ****** of ****** *********
** **** *** ********* **** ****** of ******** **** **** *** *** wants, **** **** ****** * ********** and ********** *******, *** **** ******** expansion **** *** **** *********** ********* where ***** ***** ***-** **** *** competition ** **** *****.
Company ********
******* ** ****, ***** ******* ********* to **** **** ******** *** ** US ******** *** *** **** ** $179 ******** (****** ***** **** ***********) by ***** ************ ****** ***** ********, ******* ** waiting *** * *** ************** ** check ***** ******** ****/**.
***** ***** ** ****** *** ********* their ******** **** ***** **** ****** Pass (*.*., ******* ***** **** *******) to ***** ****** **** *** ***** ecosystem *** **** ************ ***-***** **** as ** ******** *** ***** ******. They **** ***** ** ** **** being **** ******* ** ***** **** multiple ***** * ***.
*** ******* ******* *,*** ********* ** of *** **, ****, *********** ** ** ** ********, *** 26 ****** *** ************* ********, ** ****** ****-******* ********, *** covering *** ****** ***** *********, ***** with **** *******, ***********, ********, *******, and ***** *****.
**** *-****** ***** **** ***** ******** ho* ***** **** ***** *** ********** typically *******:
5.6 ******* *********, *.** ******* ******
**** ******** *.* ******* ***** *********** which ************ ******** ******** *** ***** memberships, *** **** **** *** *.** million ******* ******* ******* ** ****. Clear **** ******* *********** **** ** a **** ** **% ** ****, versus **% ** ****.
Expansion: **-***** * **** ** **-***** * ***
*****'* ******* ********* ***** ***** ***** ** *********** increase *** ***** **** *** ******* application:
** **** ***** ** ****** **** of ******'* ***** *****, ** ** from ** ***** * **** ***** it—which ** *** ****** ** ******* were ***** ** ** ********—** ** times * ***,[...]** **** ** ****** frictionless, *********** *********** **** *** **** you ***** **** ***** ** **** you *** ** **** ****** ** the *******.
**** ******** ***** ********* ** ***** Clear ** **** **** *********** ***** and ****** *****-***** ****** *** ******** into ******** ******** ********* **** ** offices *** ********* *********. *******, ******** owners ********* *** *** ***** *** security ****** *** *** ** ********* to ***** ********* ** ******* ** pay *** ***** ** ***** ***** buildings. ** ********, ***** ****** *** very *********** **** *********** ***** ******* that **** ****** *********** *******. *******, with***** ****** ****** ****************** **** ***** ****** *** ***** smartphone ************* *********** *********, ** ** unclear **** ***** ***** **** ** this ***** **** ************.
******
*****************
***** ***** ** ********* ***** ***** Plus ********** ** ****** *** ******** and ********* *** ******* ******* ******** channels. *** ******* ******** ** ** airports **** **% ** ***** **** TSA ********* ******, ** ***** ** room ** ****** **** ***** ******** with **** ********* ******, *** ** they ****** *** ******** ******* ***** will ****** ******* *** **** ******** to *** ******* ******* ******. *******, t**** ******* *********** ****** ** ****** in *** ** *** *** ******** times * ****, ***** ** *** extremely *****, ** ****** ** **** channel ** *******. **** **** **** on ******* *********** ******* ***** ******** airports *** ************ **** ******** *******, United ********, *** ***** ********.
***** *********
**** *** *** ~$*** ******* **** raising, ***** **** ****** **** *** verticals *** *************** ** *** **** portfolio ** ******* ******* **********, ******** access, *********, *** **********, *** ****** profiles. ***** *** ******* ******* ********* Clear **** ** ***** ******* **** large ****** **** ** ******* *****, developed * ****** **** ** ******** to *****-**, ***. *** **** ******* that ** *** ***** ******* ******* have **** **********. **********-********** ******* ***** ******** **** ****** *****’* smallest ******** **** *** **** *** years:
** **** ** * *** ***** is **** ******** ** *** ******** vertical, ******* *** ***** **** *** so **** ******.
** ***** ** **** ** ****** into ***** ********* *** ** **** daily, ** ***** ****** **** ***** as ******** *** *** ***** *** have * **** ****** **** ********* past ****** *** *** **** ***** a ****. *** ****-**** ******** *** Clear ** ** ******* * ********** and ********* **** ** ****, **** is **** ** ***** **** ****** and ********* ***** ******** ************ ** required.
*** ******** ***********
***** ** ****,***** ** *** ** * ************* **** ***** ******** ******* *** enrolling, ********, ** **** ** ******** TSA ******** **** ***** ***********. ***** this **** ** * *** ******* stream *** *****, ******* *** ******* split *** *** **** *********.
Competitive *********
*********** *** ***** ****
*** ****** **** ** ********, ***** competes ******* *** ******** (***** ** 1/10th *** **** ** $** *** 5 *****). *************, ********** ********* *** pay ******* *** ****** ** ******* the ****** *******.
***** ***** ********* *** ********/******** ********* process, *** ******** ********* *** ******** screening ******* ** **** ** *** document/identity ********* *******. ********* **** **** time ** ******* ** **** ******** than **** ***** ** ******* ** one, ** ******** **** *** ******** and ***** **** *****. *******, *** less ******** ** *****-****** *********, *** PreCheck ** * *****-**** *********** ** reducing **** ** *********.
****, ***** ********* *** *** ***** for ************ *** *** ******** *** physical *********, *** *** ******** ************ line ** ********* ******* **** *** normal ************ **** *** *** *** be ************* ****** **** ***** *****.
*** ******** *************** ******* ******* ** ****, ** Clear's ******* ******* ******* ** **** and ** ***** ***** ********** ******* including *************, ********** **** ** ** more ****** ****.
************, ***** ************ **** ******** *** TSA *** ********* ***** *** *********-***** verification ***** **** ***** ******* **** Clear ****. ***** *********** **** *** advantage ** ******* **** (** *****) in ****** ** ** *** ****** safety, ******* **** **** **** **********.
*********** ** ***** *********
***** *** *********** ** *** ****** pass ****** *** ***** *** *************** foothold ** *** ** ********. *** example, ***** *** ************ **** ******* companies *** ********** ******** **** ********* health ****** **** ******* **** *****:
**** ***** *********, ********* ****** ****-*********** companies **** **********************, ********** *** ***, are ********* ** ********** ******** ******* to *** ****** **** ********.
** ***** ************** *********, ***** ***** is *** *** ***********, *********** ***** emerge *** ********* ********* *** ******* their *** *********. *** *******, ***** mentions ******, *****, ********, ** ******, which **** ***** *** ****** *********** technology ******* ******** ** ******** ** phones ******** ******* **** ** ********* systems ** ***********.
************, ********* ********* ****** ******* ********* (such ** ****** *** *******) ** well ** ******** ****** *********** ********* like *********, **********, *** ********** *** focusing **** ** ************ ***-***** *** may ******* ******** **** *****.
Moat ******* ***********
***** ******* **** **** ** ********* over ********* *** ******** ** *** airport ******** ********, *** ** ***** already *********** ******* ******* *** *********** with ***. ** ** ******** **** TSA **** ********* ******* ******* ******* to ******* * ********* ******* **** to *****.
****** ********** *** ********** ** ****** people, *** *** ******* ***** **** established ********* *****, ************** ** ****** members, ** *** ********* ***** **** Clear (*.*. ***** ******* ** **** incentives), *** ******* *********, ***** ***** be ***********.
****, ***** ***** ** ***-**, **** face **** ********** **** *** *********** than ***** *********-***** *********. ****** ****** to *** *****’* ******** *** ** through * ********* ********** *******, ** while **** *** ******* ********, **** do *** **** *** **** ******* companies **** **** ****** *********** ** other ********** *** ************ **.
Churn *******/*** *** ****** ********* ****
*****'* ***** ** ***********, ** **.*% in **** ***, **** ***-*****, ** 2019, *** **.*%. ******** **** *** relatively *** **** ********** ******, **** signifies ********** ** ***** ***** **** to **** ***** ******* ** ** will **** ** ******* *********** *** customers ****** ** ******* ***** **** churned.
** *** **** ***** *** ******* on *** ******** ** ********* *** often ***** ******* *** *** *******, churn ****** ********, ****** ******* *** how *** **** *** ** ** accomplishing **** ******* ** ** ****.
Bookings *******
******** ******** ** **% ** *** start ** *** ******** *** **** increased **% *** *** *** ***** to ** **** *** *** ******** to ******** ** ****, ****** ** how **** ** *******:
2020 ********** ******** ****, ******* **
***** *****'* **** ******* ****** *** strong, ** **%, **** ******** ********* that **** ******* **** ***-******** **** could *** ** ******** ****** *** Pandemic. *******, ******** ********* **.*%, ********** the ********* ***** *** ******** ********** to **** ** *** ** ******* convenience ******* ****** *** ********.
2021 ** ******** ****, ******* ****
** ** **** ******* ********* **% and ******** ********* **%. *** ******* decrease *** ******** ** ******** *** declined ** ****. *******, **** ******** decreased ****** *** ********** ****** ** the ********. ** **** ** ********* to *** *** ******** ****** ** Q2 **** ** *** *** **** the ******* ** ******** ****.
Loses ******** ** ****
***** ********* ** ****, *******, **** was *** * ****-**** ******** ***** for *** ******* ** ** ********* short ***** ****** ****** ** *** pandemic. ***, ******* ********* ** **** because ** ******* ********* ********* **** 2019. ********, *** ******* ******* ** slash ***** *** ********* *** *** able ** *** *** *********** ***** at ******** ***** ***** *** **** low *******.
Losses ******** ** ** **** *** ** **** **** *** *******
****** ********* $** ******* ******* ***** revenue ** ** **** ********* *** to * **** *** ********** ** shares ** $**.* ******* ** * 1 **** **** ***** **** ***** as ******* ** *** ****-**** ******** trend.
**** * ***** **** ******* ** fund ****** ****** ********* ***** ***, paired **** ***** ****** ******* *** total ***********, ***** **** **** ******** towards ************* ******* *****-**, *****’* ***** towards ************* ***** **** *** ****-********** to ******* * ********** ******* ********* business *** **** ********* ** *** travel ******** ****** ******* ** ****.
**** ******* *** $*** ******* ** cash ***** ** ***** ***, *** with ** ********** ~$*** ******* **** their ***, *** ******* *** ****** cash ** **** ** ***** ** expansion **** *** **** *** ********, but **** **** ***** *** *********.
Lifetime ***** *** ******** *********** ****
******** ***** ** ********* ** *** customer *********** **** *** ***** **** using **** **** **** ******. **** means **** *** ******** ** ****** in ***** *** *********.
Governments ********* *** ** *****
***** **** ******** ** *******, ********* profit-sharing ********** ** ******* *******. *** example ** ***** *****-************, ***** *** ** *** *** greater ** **% ** ******* **** members ********** **** ******* ******, **% for ******* ****** *****-****, ******, *** Collier ******** **** * ****** *** or $* * ************. *** ** a**** ******* ********, ***** **** *** **.*% ** Gross ********. **** ***** ******** *** incentivized ** ********* **** ** *********.**** ***** ******* *** ********** **** $***,***** ******** *** ** ****. **** is * ***** *** $***,************** ******* ****, ***** *** * $*** ******* ********* *** *** $** million ** ******* ** ****.
Shareholder *********
******** *******-************ ******* ** ***** **** ~**% of ****** ******, ***** *** **-******* Kenneth ******* **** ~**%.
“Long *****”, “**** **********”, “**** *****”
***** *** * *.* / * star ****** **** *** ******* ** their ******************** ***** *** ********** ***** ********* in ******** ******* *** *** ** positive ****.
*** ***** **** ********* **********:
**** ********** *** **** ******** ** 6 ***********:
*** ******* *** *** ********* **********, with ******* ********* *********** ***** “**** money” ** “**** ***” ** ******** reviews:
*******
***** *** * ********** *** *** has ******* $*** ******* ** **** on **** *** *********, ***** ** essential ******* **** **** ** ********* of *****, *** ***** ******** **** is ***, ***** ** ****, *** their ***** *********** ** ***** ********* is **** *****. **** ***** ******** their ********** *** ******** ** ****** a **** ** ***** **** ** the *** *******, *** **** ******** competing **** *********** ****** ******* *** offerings **** ********** **********, **** *** replace *****'* ************* ******* ********* ****** memberships.
********. ******* * ** *** *** nearly ** **** ** * **** to, *** ** ** ********** *** few ********* * *** ********* ******* had *****. *******, **** **** **, the ********** ** **** ****.
* **** *** *********** ***** ** a ******* *** ** *** ****** want **. * ***** ** ** an *** ******** *** ** ** take ******. ***** ** * *** creepy **** *** *** **** "**** know" ***** *** ******* *** ***** we **** ** **** * *** of ******** *********** ** ***** ** board * ***** ******, ****** ***** seems **** * ***** ****. * don't **** ** **** ** *** that **** ** ** ** * ballgame. **** **** * *****.
* ** * ****** ***** ******, and * *** *** ************ ***** because ** **** ****'* ** ****** airports ** ** ****** ** **.
****, * ***'* *** ***** ******* enough ******** ** ** **** ** times * ***. * ***** **** people ** ******** **** **** * day **** ****** ********* **** ******** the **** ** ****-********** **** ***** provides. ***** *** ******* * *** of ******* *** ********* ******-************ **** do *** **** ** *********, ** if ***** ** ****** ** ** after **** ******, **** ****.
*********** *******, *** *** ***** * have ** ***** *** ** **** there ** ** "***********" ******* ***** and ********. ***** ******** *********** ********. So **** ********.
**** * ****-******* ***********, ***** ** more ********** **** ********, *** **'* really *** *****. * *** *** this ******* * **** *********** ********** with *** ***** ********* -- ***** only ******* ********, ******** **** ******* Clear, *** ***** + ********. ********* Clear + ******** ** *** **** scenario, *** ** * *** ** choose *** ****** *** *** **** of ****, ** ***** ********** ** Clear, *** **** ** ***** ** my ********** ** ********* ******** ** flights ******* ******* ** ** ******** that *** *****.
***, ** ** ***** (*** *** intended...), ******** ******* ** **********. ** ******** ***** ****. ***'* have ** **** *** *****, ***'* have ** **** ****** *** ** your ***, ***. *** ******* ** the ********** ** ******** -- ********** at **** ***** -- *** ***** to *** ******* *** ************ ***** are ***** ********* ****, *** ***** allows *** ** **** *** ** that *** ** ******** ** *** front ** *** ****. *'** **** traveled **** ** **** * ****** of *****, *** ***'* **** ******** only *** *'** **** ***** **** and *'** ****** *** ******* ****** every ****.
****** **** -- * ***'* *** Clear ****** ** ******* * *** of ********** ******* ******** ********, ** I ***'* *** ** ** *********** with ******** ** ***. ****'** ******* on ******** ** ******** *********, *** I ***'* ***** *****'* *** ******** they *** **** * **** **** business *** ** **** ******. ******* it **** ** ****** ** ******* that ****** *********, * ***'* ****.
*'* * ***** ******, *** * do ***, ** **** ****, **** Precheck, *** **** **** * **** seen * **** ** **** **** of *** ******** *****, ***** **** save *** * ***** ** **** and *** **** ******, ** ******** when * **** ** ** **** travel ***********, **** ** **** ******** to **** *** ***** ** **********. Indeed, ** *** *** * ******** traveller, ***** ***** **** ** ********** "cheap".
***, *********, **** ** **** ***** to * ******* *********? ******** ***. Which **** *** ******** (***** *** do) *** ***** **** *** **** aggressively **** ** **** ** *** strengths ** *** *******/****** ***** ******. Bundle ** ** **** ****** ****** maybe, ** **** ***** ******** ***** perk. ***** ***** ******* ** **** more ***** ** *********. ***** ********** with *** ****** *** *** **** often *** *** ******* **** **** you ***** ****.
*'* *** **** ***** *** ***** stadium ****** ***** ******?
(DISCLOSURE: * ** * ****** ******** ** * ***** **********., ******.)
***** ** ****** ** *** ***** market. ****** ** *** "********" ******** is *** *** ** ***** *** car *******.*****, ***** ******* ** ***** ******* with ********* *****
* **** *** ******** ***** **** note **** ***** *** *** ******** are ************* ********, ******** **** ** compete ** ***** *** **** ** spend **** ******. (*** ***'* ****** that *****'* **** ***** ** ***** discounted *** ********** ********, ***** ******* the ***** ********** ******* ***** *** TSA ********.) **'** **** ** *** if *****'* ***** ** ** ******** TSA ******** ****** **** ****** *** landscape ********.
********* *** ********* *******, ********** ***** are ********* ** ***** ******* ** the ********, *** **** ** * thankless ***. (*** **** ********** ******* security ********* *** **** **** ***** THEIR ****.)
*** *** ***** *** ******* **** CLEAR ****** ***** ** *** **** business ** ********, ***'* ****** **** this ** ******* *.* ** *****. Version *.* ** *****, ***** *** focus ** *** ******* ********, ***** up ***** ************ - ********** ** ******** ******** Pass *** *** ******* ** ***** Registered ******** ****, ***** ** ***** *******-****** ** al ****** *** *******. ** *************** is *** ** *****'* ********; *** they're ** * **** ******* **** to *** ** ***** *** ****** as * ******* ******* ********.
**** *********** ****, ****** *** ****. Are *** ****** ****, ** **** opinion, ***** **** ** ***** *** of ***** ******* ***** ** **** wish ** ****** ******, ***** **** past ********** ** ***** ******* ** do **** ****?
*******. ** ***** **** **** ** compete ** *** ******* ******, *** churn ** *********** ***** ******** ** fatal. ** ********, ******** *** ***** make ** ********* ***** ** ****** that ***** ** ******* *** ** new ** ******** *** *********.
** ** ****'* **** *** *****, there's * *********** **** *****'* ******* presence ***** ** **** ******** ***** now. *******, *** ******* ** **** sporting/entertainment ****** ******** ******* ********* ***** for ***** (*** ******).
****, ** ***, ******* ************* ** you ***** **** **** ***** ****? Especially **, **** ***** ** ******, Tier * ******** (********, *********, **** Kong...etc)?
******* ******* **** *** **** *** stadium ****** **** **** ********, *** subject ** ********* ****-*****, **** **** airports, ***** ***** ** **** ********* times ***** **** * ***** **** originally *******. **, ** ******* ****, thank *** *** ******* ** **** to **** ** *** ****** ** the *********.
********* ** ***** ** ******** ******* of *** ****** ****** ***** ******* the *********** ** *** ******** ******** transportation *********** (** **** ** *** airports ********** ** ******).
***** *** ********* ******* ********* **** legwork ** *** ****** ******, *** I **** ** **** ** ***** has ********** *** ************** *********** ** the ****** *******, *********, *****, ***., or ******* ***** *********** (********** *****, which ** ******** **** *** **** influence **** **** ****) ***** ** receptive ** ** ******** ******* ****** their ******** **********.
*************** ** *** ** *****'* ********
* ***'* ********** ***** ***** ** going ** *********. ** *** ** anyone **** *** ******** ***** *** they *** ******** ***** ** ***** goal ** ** **** *** ***? (or **** * *** *** *** on *******)?
*** **** ******** *** *** ***** that * *** ***** ** *****'* daily *****-*** ****. ** ********* ** a ******* ****...
******: ***** ****** ***** ***** ** net **** **% ***** ****** ******* this ****, ****** *** **** ******** include ***** ***** ** ************* **** IPO *****:
* **** * *** ******* ***** the ******* -********** ******* ***** ****** *** ******** to ****** ****** - ***
**** ***** * ** * *** confused *** *** *** ***** **** temp ******* ********* ** ** ** effectively * **** *** *** ** direct ******* ****** ****** **** **** "help ****** ****** **** ***********", ** they ***********:
*** *** ***-*** ****** ****** ***** help ****** ****** **** *********** **** Clear’s ********* ******** *** *** *** value ** ***** ****** ******, **** Gabriel ******, ****** ********* ******** ******** at */**, * ******* ****** ***** by *********** ***** ** ***.
* ** * ***** ******. *** only ******** ** ** ********** ** they **** **** *********. ** * customer, *'* ****** **** ***** ** their **** ********.