Clear Secure, Inc. Q2 FY2025 earnings call

• Clear Secure identity platform is focused on travel and enterprise, with innovation in CLEAR Smart Network for secure identity. - Travel business had a record volume quarter for CLEAR Plus despite flat travel environment, with EnVe verification Pods 100% live, enhancing security and throughput. - International expansion: CLEAR Plus now available to travelers from UK, Canada, Australia, New Zealand, with plans to add more countries. - Product innovations: CLEAR Concierge live in 14 airports, REAL ID enabled for U.S. travelers via CLEAR app, EnVe enrollment Pods with Apple Pay integration. - ClearOne progress: Solving enterprise fraud challenges, partnerships with Greenhouse, CMS, and DocuSign, with Epic toolbox integration live by end of year.

CLEAR delivered a strong second quarter with $219.5 million in revenue, 17.5% growth; $222.9 million in total bookings, 13.1% growth; and $117.9 million in free cash flow. Active CLEAR Plus members grew to 7.6 million, up 7.5% year-over-year. TSA PreCheck had 231 enrollment locations as of Q2 end, nearly double the Q1 count. ClearOne signed over 25 deals in Q2 across workforce, healthcare, and consumer verticals, a record quarter for ClearOne. Revenue contribution: Travel business was strong, driving the quarter's results. International expansion is growing the total addressable market (TAM).

• Q3 revenue expected to be $223 million to $226 million, total bookings $253 million to $258 million. - Full-year adjusted EBITDA margins expected to expand year-over-year. - Free cash flow guidance reaffirmed at least $310 million. - Q3 expected to be the smallest net adds contributor in 2025 due to annual billing and seasonal travel demand.

Q: Joshua Reilly asked about international enrollment process, documents needed, and CLEAR Lanes in individual countries.

A: Caryn Seidman-Becker said enrollment is similar to domestic one-step with e-passport chip, starts with listed countries, no need to go country-by-country, and focused on growing domestic network first.

Q: Cory Carpenter asked about administration's focus on airport experience changes and CLEAR's role.

A: Caryn Seidman-Becker said administration values public-private partnerships, CLEAR uses no taxpayer money, and partners in innovation to modernize airports, focusing on security, traveler delight, privacy, and Made in America.

Q: Mark Kelley asked about international rollout adoption and pricing.

A: Caryn Seidman-Becker said pricing will be same as U.S., adoption driven by partners and communication, with more to say next quarter.

Q: Ronit Shah asked about macro environment and new product cadence.

A: Caryn Seidman-Becker said product innovation not the sole driver of growth, but efforts in product, technology, and service aim to improve travel experience for loyalty and retention.

Q: Dana Telsey asked about member retention, pricing going forward, and AI.

A: Caryn Seidman-Becker and Michael Barkin discussed focus on member experience, methodical pricing approach, AI's role in personalization and efficiency across business operations.