On this page of StockholderLetter.com we present the latest annual shareholder letter from CLARIVATE PLC — ticker symbol CLVT. Reading current and past CLVT letters to shareholders can bring important insights into the investment thesis.
Annual Report
2023
Dear Clarivate Shareholders,
160 years ago, our founding heritage began
as the world   s oldest continuing database
of animal biology, the Zoological Record.
We evolved over the years as we brought
together companies, founders and industry
pioneers that were respected for their deep
subject-matter and technical expertise.
In recent years, we have continued to
build on these strong foundations by
broadening and deepening our range
of curated content, layering in cutting
edge technology, and integrating with
our clients    workflows. Through it all, our
vision has remained true: at Clarivate we
fuel the world   s greatest breakthroughs by
harnessing the power of human ingenuity.
At the core, we are achieving this by
connecting people and organizations to
intelligence they can trust to transform their
perspectives, their work and, ultimately,
our world. Put simply, at Clarivate we help
people and organizations Think forward   .
In 2023, we saw an extension of the
volatile world we live in post-2019. We
are living through a period of historic
change which has required us to be
adaptable and nimble across all fronts.
The macroeconomic environment has
remained challenging, and our customers
continue to experience uncertainty    
but there is reason for optimism. Inflation
levels are still elevated, but slowing, and
interest rate pressures are expected to ease
over time. The demand environment has
largely stabilized across our core markets,
and many economists are predicting that
we could see improving macroeconomic
business conditions throughout the
year, barring any exogenous shocks.
Looking beyond the near-term economic
push and pull factors, longer-dated trends
including digital modernization, the
exponential growth of data and recent
innovations around artificial intelligence
(AI) are firmly planting roots and rapidly
reshaping how our clients connect with
and consume information that drives their
business outcomes. Our opportunity at
Clarivate has never been greater. Our
mission-critical solutions are relied upon
every day by our 50K+ global clients.
While the economic environment may
continue to fluctuate in the short-term,
we are accelerating progress on our
transformation from a data-centric solutions
provider to an insights-driven strategic
partner. All of which is underpinned by our
Think forward brand promise to our clients.
3
Revenues
$2.63B
2023
highlights
Adjusted EBITDA  
$1.12B
We continue to action our multiyear transformation plan to return
to market growth rates. Agility,
innovation and accountability
are the cornerstones of our
plan, and we have now laid
the necessary groundwork to
catalyze our future success.
Despite difficult macro conditions
and the transformation we have
undertaken, we delivered improved
performance compared with 2022
across a number of metrics, such as:
In 2023, we faced some challenges
which impacted our growth rates.
Total revenues were $2.63 billion,
a decrease of 1% compared to 2022,
primarily due to the divestiture of
MarkMonitor and macro headwinds.
Organic revenues increased
slightly from 2022 to 2023. Adjusted
EBITDA   was $1.12 billion, a slight
increase over 2022, and Adjusted
EBITDA Margin   was 42.5%, an
increase of 70 basis points.
    Improved revenue retention
from 91% to 92%.
    Grew organic subscription
revenue by 2.4%.
    Increased net cash provided
by operating activities by $235
million, to $744 million.
    Increased free cash flow   by
$196 million, to $502 million.
    Invested $180 million in R&D
to drive product innovation.
   Please see Appendix A to our Proxy Statement for the 2024 Annual General Meeting for important disclosures
and reconciliations of our non-GAAP financial measures to the most directly comparable GAAP measures.
4
Decrease of 1%, while
organic revenues increased
slightly compared to 2022.
Slight increase over 2022.
Adj. EBITDA Margin   was 42.5%,
an increase of 70 basis points.
    Reduced our net debt to
Adjusted EBITDA   leverage
ratio to below 4 times.
    Repurchased $100 million
of our ordinary shares.
Our new segment-based operating
model and subsequent segment
leader appointments in May
2023 are seeing early signs of
success as we are experiencing
accelerated decision-making and
strategic product investments.
Through our Academia & Government segment,
we empower institutions, libraries, researchers
and governments to drive research excellence
and responsible innovation.
Academia &
Government
During the year, we invested in
our core flagship products and
added further integrations across
key brands to enhance value
for our users. We are starting
to see the benefits of prior
investments which are evident
through improving usage rates,
higher retention and account
upgrades. Account wins are also
trending higher as we continue
to land contract wins with top
U.S. universities and state libraries
who are adopting our workflow
and library management solutions
to drive a best-in-class experience
for their students and users.
We have strong momentum in
our Academia & Government
segment. Our work enhancing
content, cross-pollinating products,
and investing in technology to
improve user workflows, positions
us well for future growth.
A few key segment
highlights during 2023:
    Achieved Web of Science    growth
inflection point, with organic growth
moving from flat to low-single digit
growth in 2023, bolstered by a more
than 2% increase in renewal rates.
    Launched beta Web of Science   
AI Research Assistant, infusing
generative AI, including
conversational discovery,
into our academic solutions.
    Secured key wins across workflow
software solutions with Alma   ,
our flagship library software
solutions, at Yale University, Duke
University, and OhioLink (entire
state of Ohio across 117 libraries).
    Established Academia &
Government Innovation Incubator
and acquired Alethea, an AI
student engagement solution.
5
 • shareholder letter icon 3/25/2024 Letter Continued (Full PDF)
 • stockholder letter icon 3/23/2023 CLVT Stockholder Letter
 • stockholder letter icon More "Business Services & Equipment" Category Stockholder Letters
 • Benford's Law Stocks icon CLVT Benford's Law Stock Score = 71


CLVT Shareholder/Stockholder Letter Transcript:

Annual Report
2023


Dear Clarivate Shareholders,
160 years ago, our founding heritage began
as the world   s oldest continuing database
of animal biology, the Zoological Record.
We evolved over the years as we brought
together companies, founders and industry
pioneers that were respected for their deep
subject-matter and technical expertise.
In recent years, we have continued to
build on these strong foundations by
broadening and deepening our range
of curated content, layering in cutting
edge technology, and integrating with
our clients    workflows. Through it all, our
vision has remained true: at Clarivate we
fuel the world   s greatest breakthroughs by
harnessing the power of human ingenuity.
At the core, we are achieving this by
connecting people and organizations to
intelligence they can trust to transform their
perspectives, their work and, ultimately,
our world. Put simply, at Clarivate we help
people and organizations Think forward   .
In 2023, we saw an extension of the
volatile world we live in post-2019. We
are living through a period of historic
change which has required us to be
adaptable and nimble across all fronts.
The macroeconomic environment has
remained challenging, and our customers
continue to experience uncertainty    
but there is reason for optimism. Inflation
levels are still elevated, but slowing, and
interest rate pressures are expected to ease
over time. The demand environment has
largely stabilized across our core markets,
and many economists are predicting that
we could see improving macroeconomic
business conditions throughout the
year, barring any exogenous shocks.
Looking beyond the near-term economic
push and pull factors, longer-dated trends
including digital modernization, the
exponential growth of data and recent
innovations around artificial intelligence
(AI) are firmly planting roots and rapidly
reshaping how our clients connect with
and consume information that drives their
business outcomes. Our opportunity at
Clarivate has never been greater. Our
mission-critical solutions are relied upon
every day by our 50K+ global clients.
While the economic environment may
continue to fluctuate in the short-term,
we are accelerating progress on our
transformation from a data-centric solutions
provider to an insights-driven strategic
partner. All of which is underpinned by our
Think forward brand promise to our clients.
3

Revenues
$2.63B
2023
highlights
Adjusted EBITDA  
$1.12B
We continue to action our multiyear transformation plan to return
to market growth rates. Agility,
innovation and accountability
are the cornerstones of our
plan, and we have now laid
the necessary groundwork to
catalyze our future success.
Despite difficult macro conditions
and the transformation we have
undertaken, we delivered improved
performance compared with 2022
across a number of metrics, such as:
In 2023, we faced some challenges
which impacted our growth rates.
Total revenues were $2.63 billion,
a decrease of 1% compared to 2022,
primarily due to the divestiture of
MarkMonitor and macro headwinds.
Organic revenues increased
slightly from 2022 to 2023. Adjusted
EBITDA   was $1.12 billion, a slight
increase over 2022, and Adjusted
EBITDA Margin   was 42.5%, an
increase of 70 basis points.
    Improved revenue retention
from 91% to 92%.
    Grew organic subscription
revenue by 2.4%.
    Increased net cash provided
by operating activities by $235
million, to $744 million.
    Increased free cash flow   by
$196 million, to $502 million.
    Invested $180 million in R&D
to drive product innovation.
   Please see Appendix A to our Proxy Statement for the 2024 Annual General Meeting for important disclosures
and reconciliations of our non-GAAP financial measures to the most directly comparable GAAP measures.
4
Decrease of 1%, while
organic revenues increased
slightly compared to 2022.
Slight increase over 2022.
Adj. EBITDA Margin   was 42.5%,
an increase of 70 basis points.
    Reduced our net debt to
Adjusted EBITDA   leverage
ratio to below 4 times.
    Repurchased $100 million
of our ordinary shares.
Our new segment-based operating
model and subsequent segment
leader appointments in May
2023 are seeing early signs of
success as we are experiencing
accelerated decision-making and
strategic product investments.

Through our Academia & Government segment,
we empower institutions, libraries, researchers
and governments to drive research excellence
and responsible innovation.
Academia &
Government
During the year, we invested in
our core flagship products and
added further integrations across
key brands to enhance value
for our users. We are starting
to see the benefits of prior
investments which are evident
through improving usage rates,
higher retention and account
upgrades. Account wins are also
trending higher as we continue
to land contract wins with top
U.S. universities and state libraries
who are adopting our workflow
and library management solutions
to drive a best-in-class experience
for their students and users.
We have strong momentum in
our Academia & Government
segment. Our work enhancing
content, cross-pollinating products,
and investing in technology to
improve user workflows, positions
us well for future growth.
A few key segment
highlights during 2023:
    Achieved Web of Science    growth
inflection point, with organic growth
moving from flat to low-single digit
growth in 2023, bolstered by a more
than 2% increase in renewal rates.
    Launched beta Web of Science   
AI Research Assistant, infusing
generative AI, including
conversational discovery,
into our academic solutions.
    Secured key wins across workflow
software solutions with Alma   ,
our flagship library software
solutions, at Yale University, Duke
University, and OhioLink (entire
state of Ohio across 117 libraries).
    Established Academia &
Government Innovation Incubator
and acquired Alethea, an AI
student engagement solution.
5



shareholder letter icon 3/25/2024 Letter Continued (Full PDF)
 

CLVT Stockholder/Shareholder Letter (CLARIVATE PLC) | www.StockholderLetter.com
Copyright © 2023 - 2025, All Rights Reserved

Nothing in StockholderLetter.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy.