Following the release of its earnings report, shares of Clear Secure, Inc. (NYSE: YOU) have surged during the current trading session, reflecting a favorable market reaction. As of the latest update, YOU stock has risen 19.90% on the US stock charts to trade at $23.34.
Second Quarter 2024 Performance Overview
For the second quarter ended June 30, 2024, Clear Secure (YOU) reported revenue of $186.7 million, representing a robust increase of 24.6% compared to the same period in 2023. Total bookings also saw a significant rise, growing by 12.5% to $197.0 million. These gains were primarily driven by an increase in member count and higher pricing.
Cumulative enrollments reached 24.2 million, up by 2.3 million sequentially, due to growth in both CLEAR Verified and CLEAR Plus enrollments at existing and new airports. Active CLEAR Plus membership expanded to 7.1 million, marking a 14.8% increase from the previous year, fueled by expansion in airports, partnerships, and organic channels in both existing and new markets.
Operational Metrics and New Developments
The total number of platform uses hit 206.7 million, with CLEAR Plus verifications as the main contributor. The annualized usage of CLEAR Plus members was recorded at 7.4 times. Annual gross dollar retention for CLEAR Plus stood at 89.3%, a year-over-year improvement of 160 basis points but a slight decrease of 50 basis points sequentially.
Net member retention was 83.2%, reflecting a sequential decline of 80 basis points. The company reported a net income of $38.6 million, with net income per common share, both basic and diluted, amounting to $0.26.
Clear Secure Moving Towards Strategic Innovations and Expansion
Clear Secure has extended its CLEAR experience from home to gate with the introduction of CLEAR Perks—exclusive, curated benefits designed to enhance travel experiences for members. The company is integrating its app, airport presence, and Ambassadors to offer a seamless, premium travel journey.
The TSA PreCheck enrollment, now available through CLEAR, began gaining traction in the second quarter. Clear Secure is currently operational in 46 U.S. airports and aims to expand further, offering TSA PreCheck enrollment and renewals starting as early as 4 AM.
With multiple revenue streams and a highly efficient cost structure, Clear Secure is generating strong free cash flow and experiencing margin expansion. The company’s significant net cash position enhances its financial flexibility and supports its continued growth trajectory.