The following is a summary of the Clarivate Plc (CLVT) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Q3 2024 revenue at Clarivate was $622 million, marking a decrease of $25 million from the previous year.

• The company reported a significant net loss of $66 million, mainly due to a $40 million increase in FX losses and a $14 million non-cash goodwill impairment charge.

• Adjusted diluted EPS for Q3 was $0.19, a decline from the previous year mainly caused by lower adjusted EBITDA.

• Operating cash flow for Q3 rose by $40 million to $203 million, reflecting a partial offset of lower EBITDA by reduced one-time costs.

Business Progress:

• Clarivate Plc plans a significant shift towards recurring revenue models by rationalizing transactional product lines with low profitability and launching subscription models for services like the Life Science disease landscape and focus reports.

• The firm aims to improve sales execution by optimizing territory alignments, reviewing incentive plans, and dedicating more resources to customer success to boost renewal rates in some segments.

• Product innovation will be accelerated using a build-versus-buy approach, focusing on AI integration and launching the new Web of Science research intelligence platform.

Opportunities:

• Clarivate has multiple opportunities to increase its subscription and recurring revenue through the conversion of transactional sales and rationalization of low-profit product lines.

Risks:

• Transactional revenue streams are highly volatile and unpredictable, impacted significantly by macroeconomic conditions which led to lower-than-expected revenue and impaired operational performance in Q3 2024.

Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.