CLEAR Secure Q1 2024 Earnings Report

CLEAR Secure EPS Results

• Actual EPS: $0.23
• Consensus EPS: $0.10
• Beat/Miss: Beat by +$0.13
• One Year Ago EPS: N/A

CLEAR Secure Revenue Results

• Actual Revenue: $179.05 million
• Expected Revenue: $173.28 million
• Beat/Miss: Beat by +$5.77 million
• YoY Revenue Growth: N/A

CLEAR Secure Announcement Details

• Quarter: Q1 2024
• Date: 5/8/2024
• Time: N/A
• Conference Call Date: Wednesday, May 8, 2024
• Conference Call Time: 8:00AM ET

CLEAR Secure (NYSE:YOU) operates a biometric identity platform designed to expedite identity verification for air travelers and venue guests. The company’s core offering is the CLEAR membership service, which uses fingerprint and iris scans to confirm a member’s identity and provide access to dedicated security lanes at participating airports. Members link government-issued IDs and personal biometric data via the CLEAR app, enabling faster processing through Transportation Security Administration (TSA) checkpoints and select event entrances.

Founded in 2010 by Caryn Seidman‐Becker and Ken Cornick, CLEAR is headquartered in New York City. The company first launched its service at LaGuardia Airport and has since expanded to more than 50 airports across the United States. CLEAR has also partnered with major sports leagues and entertainment venues, including National Football League stadiums and professional baseball parks, to offer accelerated entry for ticket holders. Beyond travel and events, the CLEAR identity platform has been adapted for health‐screening initiatives and corporate access control.

Under the leadership of CEO and co‐founder Caryn Seidman‐Becker, CLEAR has focused on enhancing its technology and broadening its service footprint. The company continues to invest in biometric advancements, mobile integration, and strategic partnerships with government and private entities. CLEAR’s platform underscores the growing demand for seamless, secure digital identity solutions in travel, live events, and beyond.

CLEAR Secure Q1 2024 Earnings Call Transcript

Key Takeaways

• Strong Q1 financial performance with revenue up 35%, adjusted EBITDA growing 285%, GAAP operating profit for the fourth consecutive quarter, and free cash flow of $77.6 million (+51% year-over-year).
• Upgraded member experience as over 90% of traffic is now on NextGen Identity, with digital identity integrations live in 9 airports (20% of volume) and a goal of 50% by quarter end to power the “lane of the future.”
• Launched TSA PreCheck enrollment in 6 airports with no-appointment renewals live nationwide, phased rollout to 33 more airports this summer, and a partnership with Staples to reach 100 stores by year-end for off-airport sign-ups.
• Scaled the Clear Verified identity platform, now offering four products—Verified Identity, account recovery, account creation, and Clear check-in—across travel, healthcare, financial services, and retail to enhance security and frictionless experiences.
• Q2 guidance calls for $182.5–184.5 million in revenue (+22% Y/Y) and $192–198 million in bookings (+11% Y/Y), with management expecting stronger second-half growth on expanding PreCheck, Verified volume, and selective pricing.

Presentation

[Operator]

Good morning and welcome to CLEAR's fiscal first quarter 2024 conference call. We have with us today Caryn Seidman-Becker, Co-founder, Chairman, and Chief Executive Officer, and Ken Cornick, Co-founder, President, and Chief Financial Officer. As a reminder, before we begin, today's discussion contains forward-looking statements about the company's future business and financial performance. These are based on management's current expectations and are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these statements are included in the company's reports on file with the SEC, including today's shareholder letter. The company disclaims any obligation to update any forward-looking statements that may be discussed during the call. During this call, the company will discuss both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is provided in today's shareholder letter and most recently filed annual report on Form 10-Q.

[Operator]

These items can be found on the investor relations section of CLEAR's website. With that, I'll turn it over to Caryn.

[Caryn Seidman-Becker, Co-Founder, Chairman, and CEO at Clear Secure]

Good morning, and thank you for joining our first quarter 2024 earnings call. The first quarter saw us executing on our three key priorities: improving the member experience, scaling TSA PreCheck, and scaling CLEAR Verified. Our CLEAR Plus member experience continues to improve. With over 90% of traffic already upgraded to NextGen Identity, the highest fidelity digital identity at scale, the member experience is smoother, IDs are staying in pockets, and members are getting through faster. These upgrades are enabling the Lane of the Future, which drives automation, customer experience, and security. Members are feeling and seeing the difference. Our digital identity integrations are live in nine airports, covering about 20% of our volume. We should be at 50% by the end of this quarter. Our new E+V, short for Enrollment and Verification Pods, will be a fast-follow later this year, where travelers will enjoy a face-first experience.

[Caryn Seidman-Becker, Co-Founder, Chairman, and CEO at Clear Secure]

CLEAR is proud to officially launch our TSA PreCheck enrollment program. We are bringing it to more people in more places at a lower cost, no appointment necessary. Renewals are live nationwide. Anyone can quickly renew online for less with CLEAR. Enrollments are now live in Newark, LaGuardia, Sacramento, Orlando, Seattle, and Salt Lake City. With multiple pods open over 12 hours a day and no appointment necessary, our airport footprint adds significant capacity to the PreCheck network. We expect a phased nationwide rollout of PreCheck in the coming months, using our existing infrastructure for a new product and adding new nodes through mobile pop-ups and our recently announced partnership with Staples. For the 90 million people who fly two or more times a year, TSA PreCheck costs less than a cup of coffee.

[Caryn Seidman-Becker, Co-Founder, Chairman, and CEO at Clear Secure]

CLEAR Verified is the universal identity platform powering trusted experiences and can be the identity layer of the internet. With casinos being taken offline for days or large-scale cyberattacks on our nation's healthcare system, the market needs a universal identity solution to enhance security and make the customer experience more frictionless. We now have four products that are built on top of the CLEAR Identity platform, delivering value to our consumers and to our enterprise partners. Our Verified Identity product not only confirms identity but also unique attributes like age or credentials. Verified Account Recovery is powerful for both customers and employees, bringing friction-free, lower cost, and significantly higher security to password reset and total account recovery. CLEAR's Account Creation product enables faster, more secure onboarding and one-click KYC.

[Caryn Seidman-Becker, Co-Founder, Chairman, and CEO at Clear Secure]

Our CLEAR Check-In product crosses multiple industries that make you stop at the desk, show your ID, and more to check in, from hotels to hospitals. The power of the network effect is important at CLEAR, and we have aggressively grown the network in travel and beyond. This network is a key value creator for our members, saving them time and bringing them joy in more places. Our historical pricing model has not properly reflected the value of the CLEAR network. There is a significant ARPU gap across our member base due to historical free or deeply discounted partner pricing, and we are committed to closing it.

[Caryn Seidman-Becker, Co-Founder, Chairman, and CEO at Clear Secure]

As we drive ARPU higher, rollout PreCheck, and offer other services such as CLEAR Mobile and scale CLEAR Verified, we are confident in our ability to drive attractive growth in gross profit dollars over a disciplined cost base, which will yield strong EBITDA and free cash flow growth. Now I will turn it over to Ken.

[Kenneth Cornick, Co-Founder, President, and CFO at Clear Secure]

Thanks, Caryn. First quarter results demonstrate our continued focus on profitable growth. Revenues increased 35%, and adjusted EBITDA grew 285%. Adjusted EBITDA margins were 23%, implying incremental margins of 65%. In the first quarter, our results include some items I want to highlight. Cost of revenue share had a $1.8 million COVID-related benefit, and we incurred approximately $4 million of expenses between NextGen upgrades and cash severance expense. On a clean basis, revenue share percentage was down sequentially and year-over-year, and each of our OPEX line items were down sequentially in dollars. Overall OPEX was down over 2,200 basis points as a percentage of revenues, and we achieved 78% incremental EBIT margins. Q1 marked our fourth consecutive quarter of positive GAAP operating profit and earnings per share.

[Kenneth Cornick, Co-Founder, President, and CFO at Clear Secure]

The margin drivers that we discussed last year, including the ramp of newly launched airports, high incremental margins for TSA PreCheck, and organizational streamlining combined with continued strong cost discipline, are all playing out. We will opportunistically invest in growth from here while remaining highly disciplined. Cash generation remained strong. Cash flow from operations was $80.3 million, and free cash flow was $77.6 million, up 51% year over year. After deducting normalized stock comp, free cash flow grew 85%. Our new dollar-based retention metric is consistent with our focus on the member experience and our strategy to drive ARPU through absolute pricing and reducing historical discounting. We have long been focused on this metric internally as it has aligned with how we run the business.

[Kenneth Cornick, Co-Founder, President, and CFO at Clear Secure]

Annual CLEAR Plus gross dollar retention was 89.8%, up 530 basis points year-over-year, and reflects the percentage of retained bookings from members who were active as of the end of the prior year 12-month period. For example, if we had 1,000 active members as of 12/31/2022, the 12/31/2023 retention metric measures their total 2023 bookings as a percent of their total 2022 bookings. If any of the 1,000 members are on a free plan or receive a full statement credit from our credit card partner, they would not impact the measure unless they had a family plan and were paying anything out of pocket. The new measure excludes reactivations, which would positively impact results by approximately 570 basis points. In Q1, we continued with our opportunistic approach to capital return.

[Kenneth Cornick, Co-Founder, President, and CFO at Clear Secure]

In addition to the $0.32 special dividend and $0.09 regular dividend, we accelerated our repurchase activity by retiring 4.4 million shares. Year to date, we have repurchased 6.2 million shares, representing 4% of the beginning shares outstanding. Inception to date, we have retired 9.5 million shares, representing about two-thirds of the shares issued in our IPO. We are increasing our regular quarterly dividend to $0.10 per share, reflecting the lower share count. In Q2, we expect revenue of $182.5 million-$184.5 million and total bookings of $192 million-$198 million, representing 22% and 11% growth, respectively. Last year this quarter, we had very strong net adds, and bookings growth accelerated to 43%, resulting in a 10% upside to our guidance. So we have a very strong growth comparison.

[Kenneth Cornick, Co-Founder, President, and CFO at Clear Secure]

Our guidance includes modest sequential growth in PreCheck revenue as we are in the early stages of a nationwide rollout. We are pleased to start seeing gross profit dollar contributions from both TSA and Verified, despite their more modest contribution to the top line. We continue to expect margin expansion on a year-over-year basis and free cash flow growth of at least 30% versus 2023. Before we go to Q&A, I want to comment on a California state senator's proposed bill. We are extremely proud of our California presence, including nine airports, over 600 employees, and millions of members. While the latest draft ensures no impact to CLEAR operations as it carves out all of our existing California airports, it will be very hard for this bill to become law.

[Kenneth Cornick, Co-Founder, President, and CFO at Clear Secure]

The strong value proposition that CLEAR represents to all stakeholders is evident by the powerful coalition of airports, airlines, and industry partners that collectively opposed the bill, not to mention the incredible love and support that was heard from our passionate CLEAR members. With that, let's go to Q&A.

[Operator]

At this time, we will be conducting the question-and-answer session. If you would like to ask a question, please press * then the number 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press * 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the * keys. We ask that each analyst in the queue to please limit themselves to only two questions. One moment, please, while we poll for questions. Your first question comes from Joshua Reilly with Needham. Please proceed with your question.

[Joshua Reilly, Managing Director, Senior Research Analyst, and Principal at Needham]

All right. Thanks for taking my questions, and nice job on the quarter here. With PreCheck now rolled out at six airports, can you give us an update on the cadence you expect for the balance of airports across the rest of 2024? And then along with that, any initial color on attach rates for the bundle to customers who renew or sign up net new to PreCheck, and what you're factoring into guidance given the timelines have changed somewhat of the rollout of PreCheck this year.

[Caryn Seidman-Becker, Co-Founder, Chairman, and CEO at Clear Secure]

All right, Josh. I like that turning three questions into one. We're on it. So let me take you through the PreCheck rollout. It's a three-phase rollout. We finished phase one yesterday, which is the first six airports with the launch of LaGuardia, Salt Lake City, and Seattle, and last week's official launch of the national online renewals. We're now moving on to phase two. That's the next 27 airports, which we expect to happen early to mid-summer. And then phase three is the rest of the airport network, which we expect to happen late summer. Of course, all of this is subject to TSA approval, but we are highly aligned and incented to flip the 30/70, which means today 30% of traffic is going through PreCheck and 70% is still not enrolled, to 70/30.

[Caryn Seidman-Becker, Co-Founder, Chairman, and CEO at Clear Secure]

So, really excited about this rollout, done with phase one, moving on to phase two, and it's a three-phase. In terms of attach rates, I would just tell you that we are very encouraged by early results, both online and at airports and at our mobile app. So there's many different ways to engage in CLEAR.

[Joshua Reilly, Managing Director, Senior Research Analyst, and Principal at Needham]

Got it. That's helpful. And then now that the updated family pricing has been out for a full quarter, what are you seeing in terms of renewals for family members at the $100 price point versus last year at a lower price point? And how is this impacting Net Member Retention and the new dollar-based retention figure? Thanks, guys.

[Kenneth Cornick, Co-Founder, President, and CFO at Clear Secure]

Sure. So from a retention perspective, I'll talk specifically about family and then just give sort of a bigger picture view. Specifically to family, we've seen very little impact from a member retention perspective. It's, I would say, approximately 200 basis point impact from that move from 60 to 70 to 99. So fairly significant pricing and fairly insignificant impact on member retention. And look, we look at it on a cost per use, right? It was just too inexpensive on a cost per use perspective. So as we've taken it up, we keep talking about narrowing the gap from an ARPU perspective. And so we think there's still more room to go there. But generally speaking, we're very pleased with the lack of impact on member retention from a family perspective. And in terms of the new retention metric, our focus is on driving ARPU.

[Kenneth Cornick, Co-Founder, President, and CFO at Clear Secure]

Historically, we've offered discounted memberships, and we're really driving ARPU both through absolute pricing and narrowing those discounts and reducing those discounts. And so the dollar retention metric that we introduced this quarter is really reflective of how we run the business. We've looked at it internally for a long time, and we think it demonstrates our success in driving ARPU in a balanced approach between member retention and dollar retention. And so we are very pleased with where retention is in general. We're seeing strong results.

[Caryn Seidman-Becker, Co-Founder, Chairman, and CEO at Clear Secure]

Josh, I should have added to the PreCheck rollout schedule. I gave you in airport. So we did announce our partnership with Staples. And going back to meeting travelers where they are, Staples is a great addition to the network, right? So it's great to be at the airport, but it's also great to stop by Staples on a Saturday morning to enroll in CLEAR. And the Staples team brings arms and legs to the PreCheck enrollment network, bringing more enrollers to the program. So we do expect to be in 100 stores by the end of the year with Staples and also other out-of-airport partners.

[Caryn Seidman-Becker, Co-Founder, Chairman, and CEO at Clear Secure]

And so again, I think it's really crucial when we talk about a $90 million TAM and less than a cup of coffee on a monthly basis, you've got to be where people are traveling, whether that be in hotels, at Staples in their neighborhood, at airports, no appointment necessary, open seven days a week, open 12-14 hours a day. You can really bring this from the 17, closing in on that 90, and make a really big difference on the airport experience for travelers.

[Operator]

Your next question comes from Dana Telsey with Telsey Advisory Group. Your line is open.

[Dana Telsey, CEO, Chief Research Officer, and Founder at Telsey Advisory Group]

Hi. Good morning, everyone. Caryn, as you think about the member experience, which has really been a focus in the enhancements, where are you on the progress of enhancing that member experience? How is that moving along? And then the B2B platform, obviously, you mentioned Staples, but any other updates that we should think about? And Ken, as you think about the cost of the business and the incremental margin and leverage, any cadence to the year that we should be mindful of? Thank you.

[Caryn Seidman-Becker, Co-Founder, Chairman, and CEO at Clear Secure]

Thanks, Dana. So you're absolutely right. Improving the member experience is a key priority, and we have seen steady improvements since February, and we expect that trajectory to accelerate. Lane of the Future will bring meaningful improvements to experience, speed, and efficiency, and you're going to see a series of technologies, including face-first verifications and new hardware, to make that experience more seamless. And that should be over the next few months rolling out through year-end. We expect to be substantially done from a volume perspective by year-end. Look, NextGen certainly was a hit to the member experience when you're taking 100,000 labor hours to upgrade millions of people. But that really is the unlock. We are significantly through that, right? Over 90% of the volume coming through CLEAR Lane is already upgraded to NextGen. So we're done with that and on to now unlocking the technology and the experience.

[Caryn Seidman-Becker, Co-Founder, Chairman, and CEO at Clear Secure]

So you should continue to see a meaningful impact. I think we said we're at 20% today of the volume for that digital integration interoperability, and we should be at 50% by the end of the second quarter. In terms of CLEAR Verified, it is a really exciting time. I think a few quarters ago, we put forth a slide of our original pitch deck in 2010. Today, we're a travel center company. Tomorrow, we're the de facto secure identity platform. That was the vision then, and it is coming to reality now. And perhaps in 2010, it was a solution looking for a problem. Now there's problems looking for solutions, and you see that across every industry. And so really talking about being the trusted identity layer of the internet is a here and now opportunity.

[Caryn Seidman-Becker, Co-Founder, Chairman, and CEO at Clear Secure]

LinkedIn continues to scale, and that badge is gaining recognition and will continue to be of more value to users and to partners. In healthcare, you will see us unlocking our first in-person check-in product in Atlanta in a few weeks, actually, yeah, in a week or so. And so you're seeing it for verified account recovery for patients and for healthcare professionals. You're seeing it for check-in. You're seeing it for identity fraud in retail, which is a significant problem. And we are seeing fraud rates drop precipitously. So our partners are seeing the impact. Our customers love using it. Right now, you're seeing about the same ratios with our partners, which is about 30% of the customers who are verifying our current CLEAR members, and then 70% are new to the platform.

[Caryn Seidman-Becker, Co-Founder, Chairman, and CEO at Clear Secure]

Obviously, as we continue to scale our member base, we expect that to swap, and that's really powerful because it's a one-click verification or a one-click KYC. So we are seeing significant traction in healthcare, in financial services, in the consumer space where trust and safety are crucial, specifically online but also in physical. And you're seeing that. We talked about the member acceleration. You saw that in the quarter, and that was really due to the growth of the CLEAR Verified platform.

[Kenneth Cornick, Co-Founder, President, and CFO at Clear Secure]

Yeah. And in terms of costs and margins, look, we're very focused on driving margins. A number of the things that we talked about last year that we said would lead to margin expansion, those are all playing out. So I don't have specific commentary on costs by quarter, but I will say we remain highly disciplined from a cost perspective. And as we look to the back half, we see increased contribution from PreCheck. Second half versus first half, we think Verified should be up in the back half versus the first half. And as we've come through the NextGen upgrades, we see improved growth from a CLEAR Plus perspective. We're also planning on taking some selective price.

[Kenneth Cornick, Co-Founder, President, and CFO at Clear Secure]

So all of those things in the back half should lead to stronger growth rates in the back half versus the Q2 implied growth rate, as well as strong underpinnings for margin expansion.

[Dana Telsey, CEO, Chief Research Officer, and Founder at Telsey Advisory Group]

Thank you.

[Operator]

Your next question comes from Mark Kelley with Stifel. Your line is open.

[Mark Kelley, Managing Director and Senior Equity Research Analyst at Stifel]

Thanks very much. Good morning. Two quick ones. As TSA PreCheck scales, and then you just mentioned LinkedIn and healthcare, a lot of growth opportunities for the business. As we look out over time, is there a right way to think about the bookings mix and revenue mix as all these newer products layer in? I don't care what time horizon you choose. It's going to answer that question. That's my first one. And the second one, I'm curious, does the TSA have to approve the non-airport partners you choose, or is that completely up to you, and you can kind of go wherever you think it makes sense for your product? Thank you.

[Caryn Seidman-Becker, Co-Founder, Chairman, and CEO at Clear Secure]

I'll answer your second question first. TSA does need to approve it. I think we're pragmatic people, and so I think we're all aligned to bring it to great places where travelers frequent that are conveniently located and good trusted partners, but they do need to approve it. That's number one. In terms of the mix, early days, here's how we look at the business: CLEAR Travel and CLEAR Verified, and then broadly speaking, gross profit dollars. I think when you look at CLEAR Travel, there's three things that we're doing. Obviously, we're improving the member experience. We're continuing to grow the networks. We launched Honolulu.

[Kenneth Cornick, Co-Founder, President, and CFO at Clear Secure]

Maui.

[Caryn Seidman-Becker, Co-Founder, Chairman, and CEO at Clear Secure]

Oh, sorry, Maui. Wrong part of Hawaii last week. So you'll continue to see more airports. You'll continue to see more lanes in our current airports, and you'll continue to see more products both around that experience to drive the home-to-gate experience. And then you'll see pricing on top of that. So when we talk about PreCheck and we talk about the TAM of the 90 million, do we think it's a $150 million-$200 million opportunity on both the renewal and the new ads? And so how that layers in over time, we look all of it at CLEAR Travel and gross profit dollars. And then on the CLEAR Verified side, we're scaling members today. It's a smaller piece on the revenue side. But obviously, we're going after three very large TAMs in healthcare, financial services, and consumers abroad, one physical and digital.

[Caryn Seidman-Becker, Co-Founder, Chairman, and CEO at Clear Secure]

And so I think it's too soon to tell, but I think we think of that as a billion-dollar opportunity. So we've always said we hope that they're even, and we hope that means that they're both growing aggressively. But obviously, CLEAR Verified would be having a significantly higher growth rate on the top line.

[Kenneth Cornick, Co-Founder, President, and CFO at Clear Secure]

Just to reiterate Caryn's gross profit dollar point, I think PreCheck, and we mentioned this in the call earlier, PreCheck and Verified, while less meaningful on a top line perspective today, they are starting to contribute gross profit dollars. We really are focused on growth in gross profit dollars over a relatively fixed cost structure, which would obviously drive EBITDA margins materially.

[Mark Kelley, Managing Director and Senior Equity Research Analyst at Stifel]

That's perfect. I appreciate all the color. Thanks very much.

[Operator]

Your next question comes from Michael Turrin with Wells Fargo. Your line is open.

[Company Representative at Wells Fargo]

Hey, good morning. Thanks for taking the question. It's David Unger from Michael Turrin. Ken, the 2Q bookings guide suggests 12% year-on-year growth. Can you please step through the seasonality factors at play there? And I know you've commented that TSA is not much contribution, but anything you could mention there would be great. Thanks.

[Kenneth Cornick, Co-Founder, President, and CFO at Clear Secure]

Sure. So just taking a step back, look, we've been growing bookings at a sustained 30% CAGR versus the 2019 pre-COVID levels, really for several years now. The Q2 guidance is around a 28% CAGR. Q1 was a 29% CAGR. So getting the NextGen upgrade rate to 90% has been the priority, and it impacted sales. Our field team, they're back to balancing enrollments and verification. With more products at our pod, such as PreCheck and the bundle opportunity, we have more opportunities than ever there to drive revenue. I would also highlight Q2 2023 was particularly strong. Bookings accelerated to a 43% growth rate last year, and we exceeded our guidance by around 10%. So the growth comparison was quite strong for Q2.

[Kenneth Cornick, Co-Founder, President, and CFO at Clear Secure]

And then lastly, to your point on PreCheck, the rollout is probably around a month behind where we wanted it to be and where we thought it would be for Q2. So that's an impact. So small impact in Q1, an incrementally larger impact in Q2, but still small. And again, as we look to the back half, we see increased contribution from PreCheck, Verified up in back half versus the first half, CLEAR Plus higher volumes and higher sales volumes, right, and some additional tailwinds from the selective pricing that we're planning in the August time frame. So our expectation is that the back half bookings growth would exceed the Q2 growth rate.

[Company Representative at Wells Fargo]

Okay. Great. Thanks for that. And then the Amex partnership extension, clearly a positive. Congratulations on that. Good to see further penetrations. We looked at the balance sheet metrics from the results. Anything that we should be mindful of from a seasonality perspective into 2Q for the Amex partnership? Thanks.

[Kenneth Cornick, Co-Founder, President, and CFO at Clear Secure]

Nothing specific to the Amex partnership from a seasonal perspective. I would say just to take a step back, last year, starting we talked about for the Q3 call, we talked about a normalization of travel trends. And so we've seen that continue through including in our Q2 guidance. So in Q3, I think we'll be back to sort of normalized year-over-year sort of pre-COVID travel trends, if you will. That's the only thing I would highlight there.

[Company Representative at Wells Fargo]

Thanks, Ken.

[Operator]

We have reached the end of the question and answer session, and I will now turn the call over to Caryn Seidman-Becker for closing remarks.

[Caryn Seidman-Becker, Co-Founder, Chairman, and CEO at Clear Secure]

Thank you for joining our first quarter 2024 earnings call. I am proud of how the CLEAR team is executing on our three priority initiatives: improving the member experience, scaling TSA PreCheck, and scaling CLEAR Verified. Thank you.

[Operator]

This concludes today's earnings call. You may disconnect your line at this time. Thank you for your participation.

Participants

Executives

• Kenneth Cornick, Co-Founder, President, and CFO

Analysts

• Caryn Seidman-Becker, Co-Founder, Chairman, and CEO at Clear Secure
• Dana Telsey, CEO, Chief Research Officer, and Founder at Telsey Advisory Group
• Joshua Reilly, Managing Director, Senior Research Analyst, and Principal at Needham
• Mark Kelley, Managing Director and Senior Equity Research Analyst at Stifel
• Company Representative at Wells Fargo