QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from to |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
x | Accelerated filer | o | |||||||||
Non-accelerated filer | o | Smaller reporting company | |||||||||
Emerging growth company |
Class A Common Stock par value $0.00001 per share (the “Class A Common Stock”) | |||||
Class B Common Stock par value $0.00001 per share (the “Class B Common Stock”) | |||||
Class C Common Stock par value $0.00001 per share (the “Class C Common Stock”) | |||||
Class D Common Stock par value $0.00001 per share (the “Class D Common Stock”) |
Page | ||||||||
March 31, 2024 | December 31, 2023 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Marketable securities | |||||||||||
Accounts receivable | |||||||||||
Prepaid revenue share fee | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Right of use asset, net | |||||||||||
Intangible assets, net | |||||||||||
Goodwill | |||||||||||
Restricted cash | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and stockholders' equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued liabilities | |||||||||||
Deferred revenue | |||||||||||
Total current liabilities | |||||||||||
Other long term liabilities | |||||||||||
Total liabilities | |||||||||||
Class A Common Stock, $ | |||||||||||
Class B Common Stock, $ | |||||||||||
Class C Common Stock, $ | |||||||||||
Class D Common Stock, $ | |||||||||||
Accumulated other comprehensive loss | |||||||||||
Treasury stock at cost, | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Additional paid-in capital | |||||||||||
Total stockholders’ equity attributable to Clear Secure, Inc. | |||||||||||
Non-controlling interest | |||||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Revenue | $ | $ | |||||||||
Operating expenses: | |||||||||||
Cost of revenue share fee | $ | ||||||||||
Cost of direct salaries and benefits | $ | ||||||||||
Research and development | $ | ||||||||||
Sales and marketing | $ | ||||||||||
General and administrative | $ | ||||||||||
Depreciation and amortization | $ | ||||||||||
Operating income (loss) | ( | ||||||||||
Other income (expense): | |||||||||||
Interest income, net | $ | ||||||||||
Other income, net | $ | ||||||||||
Income (loss) before tax | ( | ||||||||||
Income tax (expense) benefit | ( | $ | |||||||||
Net income (loss) | ( | ||||||||||
Less: net income (loss) attributable to non-controlling interests | ( | ||||||||||
Net income (loss) attributable to Clear Secure, Inc. | $ | $ | ( | ||||||||
Net income (loss) per share of Class A Common Stock and Class B Common Stock (Note 15) | |||||||||||
Net income (loss) per common share basic, Class A | $ | $ | ( | ||||||||
Net income (loss) per common share basic, Class B | $ | $ | ( | ||||||||
Net income (loss) per common share diluted, Class A | $ | $ | ( | ||||||||
Net income (loss) per common share diluted, Class B | $ | $ | ( | ||||||||
Weighted-average shares of Class A Common Stock outstanding, basic | |||||||||||
Weighted-average shares of Class B Common Stock outstanding, basic | |||||||||||
Weighted-average shares of Class A Common Stock outstanding, diluted | |||||||||||
Weighted-average shares of Class B Common Stock outstanding, diluted |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net income (loss) | $ | $ | ( | ||||||||
Other comprehensive income (loss) | |||||||||||
Currency translation | |||||||||||
Unrealized (loss) gain on fair value of marketable securities | ( | ||||||||||
Total other comprehensive (loss) income | ( | ||||||||||
Comprehensive income (loss) | ( | ||||||||||
Less: comprehensive income (loss) attributable to non-controlling interests | ( | ||||||||||
Comprehensive income (loss) attributable to Clear Secure, Inc. | $ | $ | ( |
Class A | Class B | Class C | Class D | Additional paid in capital | Accumulated other comprehensive loss | Treasury Stock | Accumulated deficit | Total stockholders’ equity attributable to Clear Secure, Inc. | Non-controlling Interest | Total stockholders’ equity | ||||||||||||||||||||||||||||||||||||||||
Number of shares | Amount | Number of Shares | Amount | Number of Shares | Amount | Number of Shares | Amount | Number of Shares | Amount | |||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2024 | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | — | — | ( | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Equity-based compensation expense, net of forfeitures | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Net share settlements of stock-based awards | — | — | — | — | — | — | — | ( | — | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Distribution to members | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Tax distribution to members | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Exchange of shares | — | — | — | ( | — | — | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||
Dividends | — | — | — | — | — | — | — | — | ( | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Repurchase and retirement of Class A Common Stock | ( | — | — | — | — | — | — | — | ( | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Balance, March 31, 2024 | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2023 | $ | $ | $ | $ | $ | $ | ( | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Equity-based compensation expense, net of forfeitures | ( | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Net share settlements of stock-based awards | — | — | — | — | — | — | — | ( | — | ( | — | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Warrant expense | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Exercise of warrants | — | — | — | — | — | — | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||
Tax distribution to members | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Exchange of shares | — | — | — | ( | — | — | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||
Repurchase and retirement of Class A Common Stock | ( | — | — | — | — | — | — | — | ( | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||
Balance, March 31, 2023 | $ | $ | $ | $ | $ | $ | ( | $ | $ | ( | $ | $ | $ |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cash flows provided by (used in) operating activities: | |||||||||||
Net income (loss) | $ | $ | ( | ||||||||
Adjustments to reconcile net loss to net cash provided from operating activities: | |||||||||||
Depreciation of property and equipment | |||||||||||
Amortization of intangible assets | |||||||||||
Noncash lease expense | |||||||||||
Impairment of assets | |||||||||||
Equity-based compensation | |||||||||||
Deferred income tax | |||||||||||
Amortization of revolver loan costs | |||||||||||
Premium amortization and (discount accretion), net on marketable securities | ( | ( | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | ( | ||||||||||
Prepaid expenses and other assets | ( | ( | |||||||||
Prepaid revenue share fee | ( | ||||||||||
Accounts payable | ( | ||||||||||
Accrued and other long term liabilities | |||||||||||
Deferred revenue | |||||||||||
Operating lease liabilities | ( | ||||||||||
Net cash provided by operating activities | $ | $ | |||||||||
Cash flows provided by (used in) investing activities: | |||||||||||
Purchases of marketable securities | ( | ( | |||||||||
Sales of marketable securities | |||||||||||
Purchase of strategic investment | ( | ( | |||||||||
Purchases of property and equipment | ( | ( | |||||||||
Purchases of intangible assets | ( | ( | |||||||||
Net cash provided by (used in) investing activities | $ | $ | ( | ||||||||
Cash flows used in financing activities: | |||||||||||
Repurchase of Class A Common Stock | ( | ( | |||||||||
Payment of dividend | ( | ||||||||||
Payment of special dividend | ( | ||||||||||
Distributions to members | ( | ||||||||||
Tax distribution to members | ( | ( | |||||||||
Payment of taxes on net settled stock-based awards | ( | ( | |||||||||
Other financing activities | ( | ||||||||||
Net cash used in financing activities | $ | ( | $ | ( | |||||||
Net increase in cash, cash equivalents, and restricted cash | |||||||||||
Cash, cash equivalents, and restricted cash, beginning of period | |||||||||||
Exchange rate effect on cash and cash equivalents, and restricted cash | |||||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | $ |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Total cash, cash equivalents, and restricted cash | $ | $ |
2024 | |||||
Balance as of January 1 | $ | ||||
Deferral of revenue | |||||
Recognition of deferred revenue | ( | ||||
Balance as of March 31 | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Prepaid software licenses | $ | $ | |||||||||
Coronavirus aid, relief, and economic security act retention credit | |||||||||||
Prepaid insurance costs | |||||||||||
Other current assets | |||||||||||
Total | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Due within 1 year | $ | $ | |||||||||
Due after 1 year through 2 years | |||||||||||
Total marketable securities | $ | $ |
As of March 31, 2024 | |||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Level | |||||||||||||||||||||||||
Commercial paper | $ | $ | $ | ( | $ | 2 | |||||||||||||||||||||||
U.S. Treasuries | ( | 1 | |||||||||||||||||||||||||||
Corporate bonds | ( | 2 | |||||||||||||||||||||||||||
Money market funds measured at NAV (a) | — | — | N/A | ||||||||||||||||||||||||||
Total marketable securities | $ | $ | $ | ( | $ |
As of December 31, 2023 | |||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Level | |||||||||||||||||||||||||
Commercial paper | $ | $ | $ | ( | $ | 2 | |||||||||||||||||||||||
U.S. Treasuries | ( | 1 | |||||||||||||||||||||||||||
Corporate bonds | ( | 2 | |||||||||||||||||||||||||||
Money market funds measured at NAV (a) | — | — | N/A | ||||||||||||||||||||||||||
Total marketable securities | $ | $ | $ | ( | $ |
Depreciation period in years | March 31, 2024 | December 31, 2023 | |||||||||||||||
Internally developed software | $ | $ | |||||||||||||||
Acquired software | |||||||||||||||||
Equipment | |||||||||||||||||
Leasehold improvements | |||||||||||||||||
Furniture and fixtures | |||||||||||||||||
Construction in progress | |||||||||||||||||
Total property and equipment, cost | |||||||||||||||||
Less: accumulated depreciation | ( | ( | |||||||||||||||
Total property and equipment, net | $ | $ |
Weighted Average Useful Life in Years | March 31, 2024 | December 31, 2023 | |||||||||||||||
Patents | $ | $ | |||||||||||||||
Acquired intangibles - technology | |||||||||||||||||
Acquired intangibles - customer relationships | |||||||||||||||||
Acquired intangibles - brand names | |||||||||||||||||
Indefinite lived intangible assets | |||||||||||||||||
Total intangible assets, cost | |||||||||||||||||
Less: accumulated amortization | ( | ( | |||||||||||||||
Intangible assets, net | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Security deposits | $ | $ | |||||||||
Loan fees | |||||||||||
Certificates of deposit | |||||||||||
Coronavirus aid, relief, and economic security act retention credit | |||||||||||
Strategic investment | |||||||||||
Other long-term assets | |||||||||||
Total | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Accrued compensation and benefits | $ | $ | |||||||||
Accrued partnership liabilities | |||||||||||
Lease liability | |||||||||||
Other accrued liabilities | |||||||||||
Total | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Deferred tax liability | $ | $ | |||||||||
Lease liability | |||||||||||
Other accrued liabilities | |||||||||||
Total | $ | $ |
Number of Warrants | Weighted-Average Exercise Price | Weighted average Remaining Contractual Term (years) | ||||||||||||||||||
Exercisable for Alclear Units | $ |
Alclear Units | Ownership Percentage | ||||||||||
Alclear Units held by Alclear post-reorganization members (other than the Co-Founders and Clear Secure, Inc.) | % | ||||||||||
Alclear Units held by the Co-Founders | % | ||||||||||
Total | % |
RSU’s | Weighted- Average Grant-Date Fair Value | ||||||||||
Unvested balance as of January 1, 2024 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Unvested balance as of March 31, 2024 | $ |
Three months ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Cost of direct salaries and benefits | $ | $ | ||||||||||||
Research and development | ||||||||||||||
Sales and marketing | ( | |||||||||||||
General and administrative | ||||||||||||||
Total | $ | $ |
Three months ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
RSAs | $ | $ | ||||||||||||
RSUs | ||||||||||||||
Founder PSUs | ||||||||||||||
Total | $ | $ |
Three months ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Cost of direct salaries and benefits | $ | $ | ||||||||||||
Research and development | ||||||||||||||
Sales and marketing | ( | |||||||||||||
General and administrative | ||||||||||||||
Total | $ | $ |
Three Months Ended March 31, 2024 | ||||||||||||||
Class A | Class B | |||||||||||||
Basic: | ||||||||||||||
Net income attributable to Clear Secure, Inc. | $ | $ | ||||||||||||
Weighted-average number of shares outstanding, basic | ||||||||||||||
Net income per common share, basic: | $ | $ | ||||||||||||
Diluted: | ||||||||||||||
Net income attributable to Clear Secure, Inc. used to calculate net income per common share, basic | $ | $ | ||||||||||||
Add: reallocation of net income (loss) to Clear Secure, Inc. to reflect dilutive impact | ( | |||||||||||||
Net income attributable to Clear Secure, Inc. used to calculate net loss per common share, diluted | ||||||||||||||
Weighted-average number of shares outstanding used to calculate net income per common share, basic | ||||||||||||||
Effect of dilutive shares | ||||||||||||||
Weighted-average number of shares outstanding, diluted | ||||||||||||||
Net income per common share, diluted: | $ | $ |
Three Months Ended March 31, 2023 | ||||||||||||||
Class A | Class B | |||||||||||||
Basic: | ||||||||||||||
Net loss attributable to Clear Secure, Inc. | $ | ( | $ | ( | ||||||||||
Weighted-average number of shares outstanding, basic | ||||||||||||||
Weighted-average vested warrants | ||||||||||||||
Weighted-average number of shares outstanding used to calculate net loss per common share, basic | ||||||||||||||
Net loss per common share, basic: | $ | ( | $ | ( | ||||||||||
Diluted: | ||||||||||||||
Net loss attributable to Clear Secure, Inc. used to calculate net loss per common share, basic | $ | ( | $ | ( | ||||||||||
Weighted-average number of shares outstanding used to calculate net loss per common share, basic | ||||||||||||||
Effect of dilutive shares | ||||||||||||||
Weighted-average number of shares outstanding, diluted | ||||||||||||||
Net loss per common share, diluted: | $ | ( | $ | ( |
Three Months Ended March 31, 2024 | ||||||||||||||
Class A | Class B | |||||||||||||
Exchangeable Alclear Units | ||||||||||||||
RSU’s | ||||||||||||||
Total |
Three Months Ended March 31, 2023 | ||||||||||||||
Class A | Class B | |||||||||||||
Exchangeable Alclear Units | ||||||||||||||
RSA’s | ||||||||||||||
RSU’s | ||||||||||||||
Total |
2024 | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
Thereafter | |||||
Total | $ |
Three months ended March 31, | |||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Total Bookings (in millions) | $ | 180.6 | $ | 149.7 | $ | 30.9 | 21 | % |
As of March 31, | |||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Total Cumulative Enrollments (in thousands) | 21,941 | 16,202 | 5,739 | 35% |
As of March 31, | |||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Total Cumulative Platform Uses (in thousands) | 192,610 | 141,106 | 51,504 | 37% |
As of March 31, | |||||||||||||||||
2024 | 2023 | % Change | |||||||||||||||
Annual CLEAR Plus Net Member Retention | 84.0% | 91.3% | (7.3%) |
As of March 31, | |||||||||||||||||
2024 | 2023 | % Change | |||||||||||||||
Annual CLEAR Plus Gross Dollar Retention | 89.8% | 84.5% | 5.3% |
As of March 31, | |||||||||||||||||
2024 | 2023 | Change | |||||||||||||||
Active CLEAR Plus Members | 6,798 | 5,711 | 19% |
As of March 31, | |||||||||||||||||
2024 | 2023 | Change | |||||||||||||||
Annual CLEAR Plus Member Usage | 7.8x | 8.8x | (11 | %) |
Three months ended March 31, | |||||||||||
(In thousands) | 2024 | 2023 | |||||||||
Net income (loss) | $ | 32,088 | $ | (8,273) | |||||||
Income tax (benefit) expense | 1,965 | (119) | |||||||||
Interest income, net | (9,925) | (6,392) | |||||||||
Other (income) expense, net | 5 | (38) | |||||||||
Depreciation and amortization | 6,092 | 5,167 | |||||||||
Impairment on assets | — | 3,633 | |||||||||
Equity-based compensation expense | 10,665 | 16,649 | |||||||||
Adjusted EBITDA | $ | 40,890 | $ | 10,627 |
Revenue | $ | 179,049 | $ | 132,356 | |||||||
Net income Margin | 18 | % | (6) | % | |||||||
Adjusted EBITDA Margin | 23 | % | 8 | % |
Three months ended March 31, | |||||||||||
(In thousands) | 2024 | 2023 | |||||||||
Net income (loss) attributable to Clear Secure, Inc. | $ | 18,806 | $ | (5,224) | |||||||
Reallocation of net loss attributable to non-controlling interests | 13,282 | (3,049) | |||||||||
Net income (loss) | 32,088 | (8,273) | |||||||||
Equity-based compensation expense | 10,665 | 16,649 | |||||||||
Amortization of acquired intangibles | 871 | 790 | |||||||||
Income tax effect | (1,526) | (350) | |||||||||
Adjusted Net Income | $ | 42,098 | $ | 8,816 |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Weighted-average number of shares outstanding, basic for Class A Common Stock | 91,831,639 | 89,614,791 | |||||||||
Adjustments | |||||||||||
Assumed weighted-average conversion of issued and outstanding Class B Common Stock | 907,234 | 907,234 | |||||||||
Assumed weighted-average conversion of issued and outstanding Class C Common Stock | 31,010,244 | 36,867,471 | |||||||||
Assumed weighted-average conversion of issued and outstanding Class D Common Stock | 25,796,690 | 25,796,690 | |||||||||
Adjusted Weighted-Average Number of Shares Outstanding, Basic | 149,545,807 | 153,186,186 | |||||||||
Weighted-average impact of unvested RSAs | — | 110,641 | |||||||||
Weighted-average impact of unvested RSUs | 653,721 | 896,720 | |||||||||
Weighted-average impact of unvested performance based RSUs | 20,748 | — | |||||||||
Total incremental shares | 674,469 | 1,007,361 | |||||||||
Adjusted Weighted-Average Number of Shares Outstanding, Diluted | 150,220,276 | 154,193,547 |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Adjusted Net Income in thousands | $ | 42,098 | $ | 8,816 | |||||||
Adjusted Weighted-Average Number of Shares Outstanding, Basic | 149,545,807 | 153,186,186 | |||||||||
Adjusted Net Income per Common Share, Basic | $ | 0.28 | $ | 0.06 |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Adjusted Net Income in thousands | $ | 42,098 | $ | 8,816 | |||||||
Adjusted Weighted-Average Number of Shares Outstanding, Diluted | 150,220,276 | 154,193,547 | |||||||||
Adjusted Net Income per Common Share, Diluted: | $ | 0.28 | $ | 0.06 |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Adjusted Net Income per Common Share, Basic | $ | 0.28 | $ | 0.06 | |||||||
Adjusted Net Income per Common Share, Diluted | $ | 0.28 | $ | 0.06 |
Three months ended March 31, | |||||||||||
(In thousands) | 2024 | 2023 | |||||||||
Net cash provided by operating activities | $ | 80,349 | $ | 60,757 | |||||||
Purchases of property and equipment | (2,776) | (9,410) | |||||||||
Free Cash Flow | $ | 77,573 | $ | 51,347 |
Three months ended March 31, | |||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Revenue | $ | 179.0 | $ | 132.4 | $ | 46.6 | 35 | % | |||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Cost of revenue share fee | 24.4 | 19.6 | 4.8 | 24 | % | ||||||||||||||||||
Cost of direct salaries and benefits | 40.3 | 33.1 | 7.2 | 22 | % | ||||||||||||||||||
Research and development | 20.1 | 21.9 | (1.8) | (8) | % | ||||||||||||||||||
Sales and marketing | 11.6 | 9.5 | 2.1 | 22 | % | ||||||||||||||||||
General and administrative | 52.9 | 58.1 | (5.2) | (9) | % | ||||||||||||||||||
Depreciation and amortization | 6.1 | 5.2 | 0.9 | 17 | % | ||||||||||||||||||
Operating income (loss) | 23.7 | (15.1) | 38.8 | — | |||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Interest income, net | 9.9 | 6.4 | 3.5 | 55 | % | ||||||||||||||||||
Other income, net | 0.4 | 0.3 | 0.1 | N/A | |||||||||||||||||||
Income (loss) before tax | 34.1 | (8.4) | 42.5 | — | |||||||||||||||||||
Income tax (expense) benefit | (2.0) | 0.1 | (2.1) | N/A | |||||||||||||||||||
Net income (loss) | $ | 32.1 | $ | (8.3) | $ | 40.4 | $ | — |
Three months ended March 31, | |||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Revenue | $ | 179.0 | $ | 132.4 | $ | 46.6 | 35 | % |
Three months ended March 31, | |||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Cost of revenue share fee | $ | 24.4 | $ | 19.6 | $ | 4.8 | 24 | % |
Three months ended March 31, | |||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Cost of direct salaries and benefits | $ | 40.3 | $ | 33.1 | $ | 7.2 | 22 | % |
Three months ended March 31, | |||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Research and development | $ | 20.1 | $ | 21.9 | $ | (1.8) | (8) | % |
Three months ended March 31, | |||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Sales and marketing | $ | 11.6 | $ | 9.5 | $ | 2.1 | 22 | % |
Three months ended March 31, | |||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
General and administrative | $ | 52.9 | $ | 58.1 | $ | (5.2) | (9) | % |
Three months ended March 31, | |||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Interest income, net | $ | 9.9 | $ | 6.4 | $ | 3.5 | 55 | % |
Three months ended March 31, | |||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Other income, net | $ | 0.4 | $ | 0.3 | $ | 0.1 | N/A |
Three months ended March 31, | |||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Income tax (expense) benefit | $ | (2.0) | $ | 0.1 | $ | (2.1) | N/A |
Three months ended March 31, | |||||||||||||||||
2024 | 2023 | $ Change | |||||||||||||||
Net cash provided by operating activities | $ | 80.3 | $ | 60.8 | $ | 19.5 | |||||||||||
Net cash provided by (used in) investing activities | 26.2 | (50.6) | 76.8 | ||||||||||||||
Net cash used in financing activities | (101.3) | (9.1) | (92.2) | ||||||||||||||
Net increase in cash, cash equivalents, and restricted cash | 5.3 | 1.1 | 4.2 | ||||||||||||||
Cash, cash equivalents, and restricted cash, beginning of year | 62.4 | 68.9 | (6.5) | ||||||||||||||
Net exchange differences on cash, cash equivalents, and restricted cash | — | — | — | ||||||||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 67.7 | $ | 70.0 | $ | (2.3) |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan or Program | ||||||||||
January 1, 2024 - January 31, 2024 | — | $ | — | — | $ | 125 | ||||||||
February 1, 2024 - February 29, 2024 | 636,096 | $ | 18.45 | 636,096 | $ | 114 | ||||||||
March 1, 2024 - March 31, 2024 | 3,780,663 | $ | 19.35 | 3,780,663 | $ | 141 | ||||||||
Total | 4,416,759 | $ | 19.22 | 4,416,759 |
Name | Title | Date of Adoption of Rule 10b5-1 Trading Plan | Scheduled Expiration Date of Rule 10b5-1 Trading Plan | Number of Shares to be Sold under the Plan | ||||||||||
May 30, 2025 |
Exhibit Number | Description | |||||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
CLEAR SECURE, INC. | |||||||||||||||||
Date: | May 8, 2024 | By: | /s/ Caryn Seidman Becker | ||||||||||||||
Caryn Seidman Becker | |||||||||||||||||
Chairman and Chief Executive Officer |
Date: | May 8, 2024 | By: | /s/ Kenneth Cornick | ||||||||||||||
Kenneth Cornick | |||||||||||||||||
President and Chief Financial Officer |
Date: | May 8, 2024 | By: | /s/ Caryn Seidman Becker | |||||||||||||||||
Caryn Seidman Becker | ||||||||||||||||||||
Chairman and Chief Executive Officer | ||||||||||||||||||||
(Principal Executive Officer) |
Date: | May 8, 2024 | By: | /s/ Kenneth Cornick | |||||||||||||||||
Kenneth Cornick | ||||||||||||||||||||
President and Chief Financial Officer | ||||||||||||||||||||
(Principal Financial Officer) |
Date: | May 8, 2024 | By: | /s/ Caryn Seidman Becker | |||||||||||||||||
Caryn Seidman Becker | ||||||||||||||||||||
Chairman and Chief Executive Officer | ||||||||||||||||||||
(Principal Executive Officer) | ||||||||||||||||||||
Date: | May 8, 2024 | By: | /s/ Kenneth Cornick | |||||||||||||||||
Kenneth Cornick | ||||||||||||||||||||
President and Chief Financial Officer | ||||||||||||||||||||
(Principal Financial Officer) |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Treasury stock (in shares) | 0 | 0 |
Common Class A | ||
Par value (in USD per share) | $ 0.00001 | $ 0.00001 |
Shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Shares issued (in shares) | 89,179,152 | 91,786,941 |
Shares outstanding (in shares) | 89,179,152 | 91,786,941 |
Common Class B | ||
Par value (in USD per share) | $ 0.00001 | $ 0.00001 |
Shares authorized (in shares) | 100,000,000 | 100,000,000 |
Shares issued (in shares) | 907,234 | 907,234 |
Shares outstanding (in shares) | 907,234 | 907,234 |
Common Class C | ||
Par value (in USD per share) | $ 0.00001 | $ 0.00001 |
Shares authorized (in shares) | 200,000,000 | 200,000,000 |
Shares issued (in shares) | 30,609,111 | 32,234,914 |
Shares outstanding (in shares) | 30,609,111 | 32,234,914 |
Common Class D | ||
Par value (in USD per share) | $ 0.00001 | $ 0.00001 |
Shares authorized (in shares) | 100,000,000 | 100,000,000 |
Shares issued (in shares) | 25,796,690 | 25,796,690 |
Shares outstanding (in shares) | 25,796,690 | 25,796,690 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 32,088 | $ (8,273) |
Other comprehensive income (loss) | ||
Currency translation | 0 | 8 |
Unrealized (loss) gain on fair value of marketable securities | (2,983) | 1,588 |
Total other comprehensive (loss) income | (2,983) | 1,596 |
Comprehensive income (loss) | 29,105 | (6,677) |
Less: comprehensive income (loss) attributable to non-controlling interests | 12,134 | (2,391) |
Comprehensive income (loss) attributable to Clear Secure, Inc. | $ 16,971 | $ (4,286) |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CASH FLOWS (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Mar. 31, 2023 |
---|---|---|
Statement of Cash Flows [Abstract] | ||
Cash and cash equivalents | $ 64,134 | $ 39,089 |
Restricted cash | 3,590 | 30,882 |
Total cash, cash equivalents, and restricted cash | $ 67,724 | $ 69,971 |
Description of Business and Recent Accounting Developments |
3 Months Ended |
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Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Recent Accounting Developments | Description of Business and Recent Accounting Developments Description and Organization Clear Secure, Inc. (the “Company” and together with its consolidated subsidiaries, “CLEAR,” “we,” “us,” “our”) is a holding company and its principal asset is the controlling equity interest in Alclear Holdings, LLC (“Alclear”). In connection with the Company’s reorganization (the “Reorganization”) completed prior to the completion of its initial public offering (“IPO”), Alclear was formed as a Delaware limited liability company on January 21, 2010 and operates under the terms of the Second Amended and Restated Operating Agreement dated June 7, 2023 (the “Operating Agreement”). As the sole managing member of Alclear, the Company operates and controls all of the business and affairs of Alclear, and through Alclear and its subsidiaries, conducts the Company’s business. The Company operates a secure identity platform under the brand name CLEAR primarily in the United States. CLEAR's current offerings include: CLEAR Plus, a consumer aviation subscription service, which enables access to predictable and fast experiences through dedicated entry lanes in airport security checkpoints within our nationwide network of 57 airports (as of the date of this filing); TSA PreCheck® Enrollment Provided by CLEAR, which offers consumers increased choice in how and where to sign up for this popular trusted traveler program; CLEAR Verified, our B2B offering, which enables our partners to leverage our digital identity technology and reusable member network to facilitate secure and frictionless experiences digitally and physically via our software development kits and application programming interfaces; and our free flagship CLEAR app, which offers consumer products like Home-to-Gate, RESERVE Powered by CLEAR, our virtual queuing technology that enables customers to prebook a spot in airport security line so they don’t have to wait.
|
Basis of Presentation and Summary of Significant Accounting Policies |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies These condensed consolidated financial statements have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments consisting only of normal recurring adjustments necessary for a fair presentation have been reflected in these condensed consolidated financial statements. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2024. The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts that are reported in the condensed consolidated financial statements and accompanying disclosures. Although these estimates are based on management’s best knowledge of current events and actions that the Company may undertake in the future, actual results may differ from those estimates. These condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “2023 Form 10-K”). The condensed consolidated financial statements are presented in US Dollars, which is the Company’s reporting currency. Recently Adopted Accounting Pronouncements The Company adopted all applicable standards effective as of December 31, 2023, within these condensed consolidated financial statements. There was no material impact as a result. There are no newly issued standards since December 31, 2023 that are applicable to the Company
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Revenue |
3 Months Ended | ||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||
Revenue | Revenue The Company derives substantially all of its revenue from subscriptions to its consumer aviation service, CLEAR Plus. For the three months ended March 31, 2024 and 2023, no individual airport accounted for more than 10% of membership revenue. Revenue by Geography For the three months ended March 31, 2024 and 2023, substantially all of the Company’s revenue was generated in the United States. Contract liabilities and assets The Company’s deferred revenue balance primarily relates to amounts received from customers for subscriptions paid in advance of the services being provided that will be earned within the next twelve months. The following table presents changes in the deferred revenue balance for the three months ended March 31, 2024.
The Company has obligations for refunds and other similar items of $3,070 as of March 31, 2024 recorded within accrued liabilities. During the three months ended March 31, 2024 and 2023, the Company recognized 154,830 and $111,137, respectively, of revenue which was included in the opening deferred revenue balances.
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Prepaid Expenses and Other Current Assets |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets as of March 31, 2024 and December 31, 2023 consist of the following:
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Fair Value Measurements |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The Company values its available-for-sale securities and certain liabilities based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, a fair value hierarchy that prioritizes observable and unobservable inputs is used to measure fair value into three broad levels, which are described below: Level 1 – Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in inactive markets or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated with observable market data. Level 3 – Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs to the extent possible. In addition, the Company considers counterparty credit risk in its assessment of fair value. The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The following is a description of the valuation methodologies used for certain assets and liabilities measured at fair value, which are not considered Level 1 items. Corporate bonds – Valued at the closing price reported on the active market on which the individual securities, all of which have counterparts with high credit ratings, are traded. Commercial paper – Value is based on yields currently available on comparable securities of issuers with similar credit ratings. Money market funds – Valued at the net asset value (“NAV”) of units of a collective fund. The NAV is used as a practical expedient to estimate fair value. This practical expedient is not used when it is determined to be probable that the fund will sell the investment for an amount different than the reported NAV. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The contractual maturities of investments classified as marketable securities are as follows:
The following table represents the amortized cost, gross unrealized gains and losses, and fair market value of the Company’s marketable securities by significant investment category in addition to their fair value level at March 31, 2024 and December 31, 2023.
(a)Money market funds that were measured at NAV per share (or its equivalent) have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the line items presented in the condensed consolidated balance sheets. Of the total marketable securities held at fair value as of March 31, 2024, $104,041 was in a continuous unrealized loss position for 12 months or longer. The Company had no continuous unrealized loss positions in relation to marketable securities as of March 31, 2024 or December 31, 2023 that were as a result of credit deterioration. For the periods presented the Company does not intend to nor will it be required to sell any securities before recovery of their amortized cost bases. For certain other financial instruments, including accounts receivable, accounts payable, accrued liabilities, as well as other current liabilities, the carrying amounts approximate the fair value of such instruments due to the short maturity of these balances.
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Property and Equipment, net |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment, net | Property and Equipment, net Property and equipment as of March 31, 2024 and December 31, 2023 consist of the following:
Depreciation and amortization expense related to property and equipment for the three months ended March 31, 2024 and 2023 was $5,168 and $4,345, respectively. During the three months ended March 31, 2024 and 2023, $1,827 and $3,154, respectively, was capitalized in connection with internally developed software inclusive of $204 and $382, respectively, of equity-based compensation. Amortization expense on internally developed software was $3,162 and $1,751 for the three months ended March 31, 2024 and 2023, respectively. During the three months ended March 31, 2024 and 2023, the Company recognized impairment charges of none and $2,127, respectively, on certain long-lived assets. Purchases of property and equipment with unpaid costs in accounts payable and accrued liabilities as of March 31, 2024 were $225 and $300, respectively, and $2,101 and $6,122 as of March 31, 2023, respectively.
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Leases |
3 Months Ended |
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Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases Cash paid for amounts included in the measurement of operating lease liabilities for the three months ended March 31, 2024 and 2023 was $3,732 and $1,082 respectively. During the three months ended March 31, 2023, the Company entered into a sublease agreement whereby the Company will continue to be a lessee under the original operating lease but will act as a sublessor. The Company recorded $1,506 of impairment to its right of use asset within general and administrative in the condensed consolidated statements of operations. Sublease income is recorded within other income (expense), net within the condensed consolidated statements of operations. The Company had $444 and $235 sublease income for the three months ended March 31, 2024 and 2023, respectively.
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Intangible Assets, net |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets, net | Intangible Assets, net See below for Intangible assets, net as of March 31, 2024 and December 31, 2023:
Amortization expense on intangible assets for the three months ended March 31, 2024 and 2023 was $924 and $822, respectively. The Company did not recognize any impairment charges on intangible assets, net for any periods presented.
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Restricted Cash |
3 Months Ended |
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Mar. 31, 2024 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash | Restricted CashAs of March 31, 2024 and December 31, 2023, the Company maintained bank deposits of $3,590 and $4,501, respectively, which were primarily pledged as collateral for long-term letters of credit issued in favor of airports, in connection with the Company’s obligations under revenue share agreements. |
Other Assets |
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Other Assets, Noncurrent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets | Other Assets Other assets consist of the following of March 31, 2024 and December 31, 2023:
During the three months ended March 31, 2024, the Company made an incremental strategic investment in equity securities of a privately held company, which the Company previously invested in during three months ended March 31, 2023. As the investment does not have a readily determinable fair value, the Company elected the measurement alternative to record the investment at initial cost less impairments, if any, adjusted for observable changes in fair value for identical or similar investments of the same issuer. Adjustments resulting from these fluctuations are recorded within other income (expense) on the Company’s condensed consolidated statements of operations. During the three months ended March 31, 2024 and 2023, there were no fair value adjustments recorded by the Company in relation to its strategic investment.
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Accrued Liabilities and Other Long Term Liabilities |
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Accrued Liabilities, Current [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities and Other Long Term Liabilities | Accrued Liabilities and Other Long Term Liabilities consist of the following as of March 31, 2024 and December 31, 2023:
The Company has estimated accrued partnership liabilities related to a portion of merchant credit card benefits that it expects to settle in the second half of the current year. Other accrued liabilities is inclusive of $58,578 and $20,690 accrued dividends and distributions as of March 31, 2024 and December 31, 2023, respectively. consist of the following as of March 31, 2024 and December 31, 2023:
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Warrants |
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warrants | Warrants In January 2023, the Company recognized $1,038 of the remaining expense related to the 534,655 fully vested United Airlines warrants. These warrants were exercised for shares of the Company’s Class A Common Stock in a cashless exercise with an intrinsic value of $16,136. The existing warrant agreement with United Airlines expired in the first quarter of 2023. The following warrants remained outstanding as of March 31, 2024:
All outstanding warrants are subject to certain performance-based vesting criteria which the Company evaluates at each reporting period to determine the likelihood of achievement. Based on the probability of vesting, the Company recorded net none and $623 for the three months ended March 31, 2024 and 2023, respectively, within general and administrative expense in the condensed consolidated statements of operations.
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Stockholder’s Equity |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholder's Equity | Stockholders’ Equity Common Stock The Company has and will issue shares of its common stock as a result of transactions in relation to warrant exercises, exchanges, and vesting of restricted stock units (“RSUs”). Treasury Stock Historically, the Company's treasury stock consisted of forfeited Restricted Stock Awards (“RSAs”) that were legally issued shares held by the Company, and recorded at par value, as well as any shares repurchased under the Company’s share repurchase program that are not retired by the Company’s board of directors (the “Board”). As of March 31, 2024, all RSAs have been either vested or forfeited. The Company’s treasury stock can be utilized to settle equity-based compensation awards issued by the Company and is excluded from the calculation of the non-controlling interest ownership percentage. Share Repurchases During the three months ended March 31, 2024, the Company repurchased and retired 4,416,759 shares of its Class A Common Stock for $84,891 at an average price of $19.22. As of March 31, 2024, $140,688 remains available under the repurchase authorization. The Inflation Reduction Act created an excise tax of 1% on the fair market value of net stock repurchases made after December 31, 2022. During the three months ended March 31, 2024, the Company recorded a $491 accrual related to this tax within its condensed consolidated financial statements. Refer to Note 16 for further information regarding the Inflation Reduction Act. Quarterly Dividend On August 2, 2023, the Company announced that its Board adopted a dividend policy (the "Dividend Policy") of paying a quarterly cash dividend to holders of Class A Common Stock and Class B Common Stock. The amount of such quarterly dividends is subject to approval of the actual amount by the Board at the time of such dividend declaration. It is expected that the dividends will be funded by proportionate cash distributions by Alclear to all of its members as of the applicable record date, including holders of non-controlling interests in Alclear and the Company. The declaration of cash dividends in the future is subject to final determination each quarter by the Board based on a number of factors, including the Company’s results of operations, cash flows, financial position and capital requirements, as well as general business conditions, legal, tax and regulatory restrictions and other factors the Board deems relevant at the time it determines to declare such dividends. On February 15, 2024, the Company announced that its Board declared a quarterly dividend of $0.09 per share, payable on March 5, 2024 to holders of record of Class A Common Stock and Class B Common Stock as of the close of business on February 26, 2024. On March 21, 2024, the Company announced the declaration of a special cash dividend in the amount of $0.32 per share payable on April 8, 2024 to holders of record of the Class A Common Stock and Class B Common Stock as of the close of business on April 1, 2024. The Company accrued for this payment as of March 31, 2024. Refer to Note 11 for the accrued balance and Note 21 for additional information. To the extent the quarterly or special dividends exceed the Company's current and accumulated earnings and profits, a portion of such dividends may be deemed a return of capital gain to the holders of our Class A Common Stock or Class B Common Stock, as applicable. Non-Controlling Interest The non-controlling interest balance represents the economic interest in Alclear held by our co-founders, Caryn Seidman Becker and Kenneth Cornick (the “Co-Founders”), and members of Alclear. The following table summarizes the ownership of non-voting common units of Alclear (“Alclear Units”) as of March 31, 2024:
The non-controlling interest holders have the right to exchange Alclear Units, together with a corresponding number of shares of Class C Common Stock for Class A Common Stock or Class D Common Stock for Class B Common Stock. As such, exchanges by non-controlling interest holders will result in a change in ownership and reduce the amount recorded as non-controlling interest and increase Class A Common Stock or B Common Stock and additional paid-in-capital for the Company. Upon the issuance of shares Class A Common Stock or B Common Stock, the Company issues a proportionate number of Alclear Units in conjunction with the terms of the Reorganization. During the three months ended March 31, 2024, certain non-controlling interest holders exchanged their Alclear Units and corresponding shares of Class C Common Stock for shares of the Company's Class A Common Stock. As a result, the Company issued 1,625,803 shares of Class A Common Stock. The non-controlling interest ownership percentage changed from 38.51% as of December 31, 2023 to 38.50% as of March 31, 2024.
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Incentive Plans |
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Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Incentive Plans | Incentive Plans 2021 Omnibus Incentive Plan The Clear Secure, Inc 2021 Omnibus Incentive Plan (“2021 Omnibus Incentive Plan”) became effective on June 29, 2021 to provide grants of equity-based awards to the employees, consultants, and directors of the Company and its affiliates. The 2021 Omnibus Incentive Plan authorized the issuance of up to 20,000,000 shares of Class A Common Stock as of the date of the Reorganization. The 2021 Omnibus Incentive Plan authorized the issuance of shares pursuant to the grant, settlement or exercise of RSUs, RSAs, stock options and other share-based awards. Beginning with the first business day of each calendar year beginning in 2022 through 2031, the number of shares available will increase in an amount up to 5% of the total number of common shares outstanding (assuming exchange and/or conversion of all classes of common shares into Class A Common Stock) as of the last day of the immediately preceding year or a lesser amount approved by the Board or its compensation committee, so long as the total share reserve available for future awards at the time is not more than 12% of common shares outstanding (assuming exchange and/or conversion of all classes of common shares into Class A common stock). For fiscal year 2023, the Compensation Committee of the Board approved no increase in the 2021 Omnibus Incentive Plan, which such increase would have been effective on the first business day of 2023. Restricted Stock Units RSUs are subject to both service-based and, in some cases, performance-based vesting conditions. RSUs will vest on a specified date, provided the applicable service (generally three years) and, if applicable, when certain performance conditions are probable of satisfaction. The RSUs with performance-based vesting conditions are subject to long-term revenue and cash-basis earnings performance hurdles. The Company determines the fair value of each RSU based on the grant date and records the expense over the vesting period or requisite service period on a straight-line basis and for performance-based vesting awards, whether they are probable or not. The following is a summary of activity related to the RSUs associated with compensation arrangements during the three months ended March 31, 2024:
Below is the compensation expense recognized related to the RSUs:
As of March 31, 2024, estimated unrecognized expense for RSUs that are probable of vesting was $65,657 with such expense to be recognized over a weighted-average period of approximately 2.27 years. Founder PSUs During June 2021, the Company established a long-term incentive compensation plan for the Co-Founders, which consists of performance restricted stock-unit awards (the “Founder PSUs”), that will be settled in shares of Class A Common Stock pursuant to the 2021 Omnibus Incentive Plan, subject to the satisfaction of both service and market based vesting conditions. The grant date fair value for the Founder PSUs was determined by a Monte Carlo simulation and discounted by the risk-free rate on the grant date and an expected volatility of 45%. The Founder PSUs are estimated to vest over a five year period, based on the achievement of specified price hurdles of the Company’s Class A Common Stock. The specified price hurdles of the Company’s Class A Common Stock will be measured on the volume-weighted average price per share for the trailing days during any 180 day period that ends within the applicable measurement period. In June 2021, the Company granted 4,208,617 Founder PSUs at a weighted average grant date fair value of $16.54. The Company records the expense related to these awards within general and administrative in the condensed consolidated statements of operations. As of March 31, 2024, estimated unrecognized expense for Founder PSUs was $7,110 with such expense to be recognized over a weighted-average period of approximately 0.52 years. Below is a summary of total compensation expense recorded in relation to the Company’s incentive plans:
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Net Income (Loss) per Common Share |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) per Common Share | Net Income (Loss) per Common Share Below is the calculation of basic and diluted net loss per common share:
After evaluating the potential dilutive effect under the if-converted method, the outstanding Alclear Units for the assumed exchange of non-controlling interests were determined to be anti-dilutive and thus were excluded from the computation of diluted earnings per share. The following tables present potentially dilutive securities excluded from the computations of diluted earnings (loss) per share of Class A and Class B common stock for the three months ended March 31, 2024 and 2023:
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Income Taxes |
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Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes As a result of the IPO and Reorganization, the Company became the sole managing member of Alclear, which is treated as a partnership for U.S. federal and most applicable state and local income tax purposes. As a partnership, Alclear is generally not subject to U.S. federal and most state and local income taxes. Any taxable income or loss generated by Alclear is passed through to and included in the taxable income or loss of its members, including us, on a pro rata basis. The Company is subject to U.S. federal income taxes, in addition to state and local income taxes with respect to our allocable share of any taxable income or loss of Alclear, as well as any stand-alone income or loss generated by the Company. The Company is also subject to income taxes in Israel, Argentina, and Mexico. The Company reported a tax expense of $1,965 on a pretax income of $34,053 for the three months ended March 31, 2024 as compared to a tax benefit of $119 on a pretax loss of $8,392 for the three months ended March 31, 2023. This resulted in an effective tax rate of 5.8% for the three months ended March 31, 2024 as compared to 1.4% percent for the three months ended March 31, 2023. The Company's effective tax rate differs from the statutory rate primarily due to the following: (1) the impact of Alclear being a partnership and allocating its taxable results to its non-controlling members, (2) movement in valuation allowance, (3) foreign taxes, and (4) the impact of U.S. federal and state taxes in excess of applicable tax attributes (e.g., net operating losses and general business tax credits). The Company paid $130 in estimated income taxes for the three months ended March 31, 2024. The Company is subject to income taxes in the U.S. and its territories, Israel, Argentina, and Mexico. The statute of limitations for adjustments to our historic tax obligations will vary from jurisdiction to jurisdiction. The tax years for U.S. federal and state income tax purposes open for examination are for the years ending December 31, 2018 and forward. The tax years for foreign jurisdictions open for examination are for the years ending December 31, 2019 and forward. Recent U.S. Tax Legislation On August 16, 2022, President Biden signed into law the Inflation Reduction Act. The Inflation Reduction Act creates a 15% corporate alternative minimum tax on profit of corporations whose average annual adjusted financial statement income for any consecutive three-tax-year period preceding the tax year exceeds $1 billion and is effective for tax years beginning after December 31, 2022. The Company does not currently expect this provision to have a material impact on the condensed consolidated financial statements for the three months ended March 31, 2024. Additionally, the Inflation Reduction Act creates an excise tax of 1% on the fair market value of net stock repurchases made after December 31, 2022. During the three months ended March 31, 2024, the Company repurchased 4,416,759 shares of its Class A Common Stock and recorded a liability of $491 related to 1% excise tax on the fair market value of net stock repurchases made as of March 31, 2024. Tax Receivable Agreement In connection with the IPO, the Company entered into a Tax Receivable Agreement (“TRA”), which generally provides for payment by the Company to the remaining members of Alclear of 85% of the net cash savings, if any, in U.S. federal, state and local income tax and franchise tax that Clear Secure, Inc. actually realizes or is deemed to realize as a result of (i) any increase in tax basis in Alclear’s assets resulting from (a) exchanges by the post-IPO members of Alclear (the “Alclear Members”) (or their transferees or other assignees) of Alclear Units (along with the corresponding shares of our Class C Common Stock or Class D Common Stock, as applicable) for shares of the Company’s Class A Common Stock or Class B Common Stock, as applicable, and purchases of Alclear Units and corresponding shares of Class C Common Stock or Class D Common Stock, as the case may be, from the Alclear Members (or their transferees or other assignees) or (b) payments under the TRA, and (ii) tax benefits related to imputed interest deemed arising as a result of payments made under the TRA. The Company will retain the benefit of the remaining 15% of these net cash savings. The TRA liability is calculated by determining the tax basis subject to TRA (“tax basis”) and applying a blended tax rate to the basis differences and calculating the iterative impact. The blended tax rate consists of the U.S. federal income tax rate and an assumed combined state and local income tax rate driven by the apportionment factors applicable to each state. Subsequent changes to the measurement of the TRA liability are recognized in the condensed consolidated statements of operations as a component of other income (expense), net. The Company expects to obtain an increase in the share of the tax basis of its share of the assets of Alclear when Alclear Units are redeemed or exchanged by Alclear Members and other qualifying transactions. This increase in tax basis may have the effect of reducing the amounts that the Company would otherwise pay in the future to various tax authorities. The increase in tax basis may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets. During the three months ended March 31, 2024, the Company issued 1,625,803 shares of Class A Common Stock to certain non-controlling interest holders who exchanged their Alclear Units. Refer to Note 13 for further details. These exchanges resulted in a tax basis increase subject to the provisions of the TRA. The recognition of the Company’s liability under the tax receivable agreement mirrors the recognition related to its deferred tax assets. As of March 31, 2024, the Company has not recognized the deferred tax asset for the step-up in tax basis, as the asset is not more-likely-than-not to be realized. Additionally, as of March 31, 2024, the Company has determined the TRA liability is not probable and therefore has not recorded a tax receivable liability that, if recorded, would be approximately $96,890. Tax Distributions The members of Alclear, including Clear Secure, Inc., incur U.S. federal, state and local income taxes on their share of any taxable income of Alclear. The Operating Agreement provides for pro rata cash distributions (“tax distributions”) to the holders of the Alclear Units in an amount generally calculated to provide each member of Alclear with sufficient cash to cover its tax liability in respect of the taxable income of Alclear allocable to them. In general, these tax distributions are computed based on Alclear’s estimated taxable income, multiplied by an assumed tax rate as set forth in the Operating Agreement. During the three months ended March 31, 2024, Alclear recorded a liability of $3,573 related to tax distributions to non-controlling interest holders which was subsequently paid in full in April 2024.
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Commitments and Contingencies |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Litigation From time to time, the Company is involved in various legal proceedings arising in the ordinary course of business. The Company records a liability when it believes that it is probable that a loss will be incurred and the amount of loss or range of loss can be reasonably estimated. Based on the currently available information, the Company does not believe that there are claims or legal proceedings that would have a material adverse effect on the business, or the condensed consolidated financial statements of the Company. Commitments other than leases The Company is subject to minimum spend commitments of $1,229 over the next one year under certain service arrangements. In conjunction with the Company’s revenue share agreements with the airports, certain agreements contain minimum annual contracted fees. These future minimum payments are as follows as of March 31, 2024:
The Company has commitments for future marketing expenditures to sports stadiums of $7,415 through 2027. For the three months ended March 31, 2024 and 2023, marketing expenses related to sports stadiums were approximately $1,249 and $1,269, respectively.
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Related-Party Transactions |
3 Months Ended |
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Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related Party Transactions As of March 31, 2024, and December 31, 2023, the Company had total payables to certain related parties of $3,246 and $3,508, respectively. For the three months ended March 31, 2024 and 2023, the Company recorded $3,237 and $2,851, respectively, in cost of revenue share fee within the condensed consolidated statements of operations, in connection with certain related parties. Refer to Note 16 for information regarding the TRA liability.
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Employee Benefit Plan |
3 Months Ended |
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Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan The Company has a 401(k) retirement, savings and investment plan (the “401(k) Plan”). Participants make contributions to the 401(k) Plan in varying amounts, up to the maximum limits allowable under the Internal Revenue Code. For the three months ended March 31, 2024 and 2023, the Company recorded expense of $902 and $842, respectively, within the condensed consolidated statements of operations.
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Debt |
3 Months Ended |
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Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt In March 2020, the Company entered into a credit agreement for a three-year $50,000 revolving credit facility, with a group of lenders. In April 2021, the Company entered into Amendment No. 1 to the Credit Agreement that increased the commitments under the revolving credit facility to $100,000, which extended the maturity date to March 31, 2024. The revolving credit facility includes a letter of credit sub-facility. In June 2023, the Company entered into Amendment No. 2 to the Credit Agreement to transition from London Interbank Offered Rate to the Secured Overnight Financing Rate ("SOFR") as our benchmark interest rate and to extend the maturity date to June 28, 2026. The line of credit has not been drawn against as of March 31, 2024. Prepaid loan fees related to this facility are capitalized and amortized over the remaining term of the credit agreement. The balance expected to be amortized within twelve months from the balance sheet date is presented within Prepaid and other current assets on the condensed consolidated balance sheets, while the long term portion is presented within Other assets in the condensed consolidated balance sheets. The Company incurred $396 of debt issuance costs in connection to Amendment No. 2 to the Credit Agreement. As of March 31, 2024 and December 31, 2023, the balance of these loan fees were $312 and $419, respectively. The Credit Agreement contains customary terms and conditions, including limitations on consolidations, mergers, indebtedness, and certain payments, as well as a financial covenant relating to leverage. Borrowings under the Credit Agreement generally will bear a floating interest rate per year and will also include interest based on the greater of the prime rate, SOFR, or New York Federal Reserve Bank (NYFRB) rate, plus an applicable margin for specific interest periods. As of March 31, 2024, the Company had a remaining borrowing capacity of $68,334, net of standby letters of credit, and had no outstanding debt obligations. In addition, the Credit Agreement contains certain other covenants (none of which relate to financial condition), events of default and other customary provisions. As of March 31, 2024, the Company was in compliance with all of the financial and non-financial covenants of the Credit Agreement.
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Subsequent Events |
3 Months Ended |
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Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Special and Quarterly Dividends On March 21, 2024, the Company announced the declaration of a special cash dividend in the amount of $0.32 per share payable on April 8, 2024 to holders of record of the Class A Common Stock and Class B Common Stock as of the close of business on April 1, 2024. The Company funded the payment of the special cash dividend with cash held by the Company following its receipt of a pro rata cash distribution made by Alclear to all of its members, including the Company, together with cash held by the Company following its receipt of tax distributions made by Alclear. Tax distributions are required under Alclear’s Operating Agreement, generally at a tax rate higher than the Company's. As a result, together with the Company’s utilization of certain tax attributes, the Company has received cash from tax distributions in excess of what is required to fund its tax liabilities and obligations under its Tax Receivable Agreement. On May 7, 2024, the Company announced that its Board declared a quarterly dividend of $0.10 per share, payable on June 18, 2024 to holders of record of Class A Common Stock and Class B Common Stock as of the close of business on June 10, 2024 (the “Record Date”). The Company will fund the dividend from proportionate cash distributions by Alclear to all of its members as of the Record Date, including holders of non-controlling interests in Alclear and the Company. To the extent the quarterly or special dividends exceed the Company's current and accumulated earnings and profits, a portion of such dividends may be deemed a return of capital gain to the holders of our Class A Common Stock or Class B Common Stock, as applicable. Share Repurchases During the second quarter of 2024, the Company used $33,922 to repurchase and retire 1,750,000 shares of Class A Common Stock at an average price of $19.38.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Pay vs Performance Disclosure | ||
Net income (loss) attributable to Clear Secure, Inc. | $ 18,806 | $ (5,224) |
Insider Trading Arrangements |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024
shares
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Trading Arrangements, by Individual | ||||||||||||||||||||||||||||||||||||||||||||||
Non-Rule 10b5-1 Arrangement Adopted | false | |||||||||||||||||||||||||||||||||||||||||||||
Rule 10b5-1 Arrangement Terminated | false | |||||||||||||||||||||||||||||||||||||||||||||
Non-Rule 10b5-1 Arrangement Terminated | false | |||||||||||||||||||||||||||||||||||||||||||||
Kenneth Cornick [Member] | ||||||||||||||||||||||||||||||||||||||||||||||
Trading Arrangements, by Individual | ||||||||||||||||||||||||||||||||||||||||||||||
Material Terms of Trading Arrangement | The adoption or termination of contracts, instructions or written plans for the purchase or sale of our securities by our Section 16 officers and directors for the three months ended March 31, 2024, each of which is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act (“Rule 10b5-1 Plan”), were as follows:
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Name | Kenneth Cornick | |||||||||||||||||||||||||||||||||||||||||||||
Title | President and Chief Financial Officer | |||||||||||||||||||||||||||||||||||||||||||||
Rule 10b5-1 Arrangement Adopted | true | |||||||||||||||||||||||||||||||||||||||||||||
Adoption Date | March 12, 2024 | |||||||||||||||||||||||||||||||||||||||||||||
Arrangement Duration | 444 days | |||||||||||||||||||||||||||||||||||||||||||||
Aggregate Available | 979,935 |
Basis of Presentation and Summary of Significant Accounting Policies (Policies) |
3 Months Ended |
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Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Description and Organization | Description and Organization Clear Secure, Inc. (the “Company” and together with its consolidated subsidiaries, “CLEAR,” “we,” “us,” “our”) is a holding company and its principal asset is the controlling equity interest in Alclear Holdings, LLC (“Alclear”). In connection with the Company’s reorganization (the “Reorganization”) completed prior to the completion of its initial public offering (“IPO”), Alclear was formed as a Delaware limited liability company on January 21, 2010 and operates under the terms of the Second Amended and Restated Operating Agreement dated June 7, 2023 (the “Operating Agreement”). As the sole managing member of Alclear, the Company operates and controls all of the business and affairs of Alclear, and through Alclear and its subsidiaries, conducts the Company’s business. The Company operates a secure identity platform under the brand name CLEAR primarily in the United States. CLEAR's current offerings include: CLEAR Plus, a consumer aviation subscription service, which enables access to predictable and fast experiences through dedicated entry lanes in airport security checkpoints within our nationwide network of 57 airports (as of the date of this filing); TSA PreCheck® Enrollment Provided by CLEAR, which offers consumers increased choice in how and where to sign up for this popular trusted traveler program; CLEAR Verified, our B2B offering, which enables our partners to leverage our digital identity technology and reusable member network to facilitate secure and frictionless experiences digitally and physically via our software development kits and application programming interfaces; and our free flagship CLEAR app, which offers consumer products like Home-to-Gate, RESERVE Powered by CLEAR, our virtual queuing technology that enables customers to prebook a spot in airport security line so they don’t have to wait.
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Basis of Accounting | These condensed consolidated financial statements have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments consisting only of normal recurring adjustments necessary for a fair presentation have been reflected in these condensed consolidated financial statements. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2024. The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts that are reported in the condensed consolidated financial statements and accompanying disclosures. Although these estimates are based on management’s best knowledge of current events and actions that the Company may undertake in the future, actual results may differ from those estimates. These condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “2023 Form 10-K”). The condensed consolidated financial statements are presented in US Dollars, which is the Company’s reporting currency.
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Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements The Company adopted all applicable standards effective as of December 31, 2023, within these condensed consolidated financial statements. There was no material impact as a result. There are no newly issued standards since December 31, 2023 that are applicable to the Company
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Fair Value Measurements | Fair Value Measurements The Company values its available-for-sale securities and certain liabilities based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, a fair value hierarchy that prioritizes observable and unobservable inputs is used to measure fair value into three broad levels, which are described below: Level 1 – Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in inactive markets or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated with observable market data. Level 3 – Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs to the extent possible. In addition, the Company considers counterparty credit risk in its assessment of fair value. The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The following is a description of the valuation methodologies used for certain assets and liabilities measured at fair value, which are not considered Level 1 items. Corporate bonds – Valued at the closing price reported on the active market on which the individual securities, all of which have counterparts with high credit ratings, are traded. Commercial paper – Value is based on yields currently available on comparable securities of issuers with similar credit ratings. Money market funds – Valued at the net asset value (“NAV”) of units of a collective fund. The NAV is used as a practical expedient to estimate fair value. This practical expedient is not used when it is determined to be probable that the fund will sell the investment for an amount different than the reported NAV. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
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Revenue (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule of Changes in Deferred Revenue | The following table presents changes in the deferred revenue balance for the three months ended March 31, 2024.
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Prepaid Expenses and Other Current Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Prepaid Expenses and Other Current Asset | Prepaid expenses and other current assets as of March 31, 2024 and December 31, 2023 consist of the following:
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Contractual Maturities of Investments | The contractual maturities of investments classified as marketable securities are as follows:
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Schedule of Marketable Securities | The following table represents the amortized cost, gross unrealized gains and losses, and fair market value of the Company’s marketable securities by significant investment category in addition to their fair value level at March 31, 2024 and December 31, 2023.
(a)Money market funds that were measured at NAV per share (or its equivalent) have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the line items presented in the condensed consolidated balance sheets.
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Property and Equipment, net (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property and Equipment | Property and equipment as of March 31, 2024 and December 31, 2023 consist of the following:
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Intangible Assets, net (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets | See below for Intangible assets, net as of March 31, 2024 and December 31, 2023:
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Other Assets (Tables) |
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Other Assets, Noncurrent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Assets | Other assets consist of the following of March 31, 2024 and December 31, 2023:
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Accrued Liabilities and Other Long Term Liabilities (Tables) |
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Accrued Liabilities, Current [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Liabilities | consist of the following as of March 31, 2024 and December 31, 2023:
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Schedule of Other Long Term Liabilities | consist of the following as of March 31, 2024 and December 31, 2023:
|
Warrants (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Warrants Outstanding | The following warrants remained outstanding as of March 31, 2024:
|
Stockholder’s Equity (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Noncontrolling Interest | The non-controlling interest balance represents the economic interest in Alclear held by our co-founders, Caryn Seidman Becker and Kenneth Cornick (the “Co-Founders”), and members of Alclear. The following table summarizes the ownership of non-voting common units of Alclear (“Alclear Units”) as of March 31, 2024:
|
Incentive Plans (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of RSAs Associated With Compensation Arrangements | The following is a summary of activity related to the RSUs associated with compensation arrangements during the three months ended March 31, 2024:
|
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Schedule of Compensation Expense Related to the RSAs | Below is the compensation expense recognized related to the RSUs:
Below is a summary of total compensation expense recorded in relation to the Company’s incentive plans:
|
Net Income (Loss) per Common Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Calculation of Basic and Diluted Net Income (Loss) Per Common Share | Below is the calculation of basic and diluted net loss per common share:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following tables present potentially dilutive securities excluded from the computations of diluted earnings (loss) per share of Class A and Class B common stock for the three months ended March 31, 2024 and 2023:
|
Commitments and Contingencies (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Payments | These future minimum payments are as follows as of March 31, 2024:
|
Description of Business and Recent Accounting Developments (Details) |
3 Months Ended |
---|---|
Mar. 31, 2024
airport
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of airports | 57 |
Revenue - Schedule of Changes in Deferred Revenue (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Change in Contract with Customer, Liability [Roll Forward] | |
Beginning balance | $ 376,253 |
Deferral of revenue | 179,386 |
Recognition of deferred revenue | (177,879) |
Ending balance | $ 377,760 |
Revenue - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Revenue from Contract with Customer [Abstract] | ||
Refund liability | $ 3,070 | |
Revenue recognized included in opening balance | $ 154,830 | $ 111,137 |
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid software licenses | $ 10,489 | $ 10,306 |
Coronavirus aid, relief, and economic security act retention credit | 0 | 1,002 |
Prepaid insurance costs | 1,109 | 1,946 |
Other current assets | 8,992 | 8,755 |
Total | $ 20,590 | $ 22,009 |
Fair Value Measurements - Schedule of Contractual Maturities of Investments (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Fair Value Disclosures [Abstract] | ||
Due within 1 year | $ 441,293 | $ 439,155 |
Due after 1 year through 2 years | 193,034 | 226,042 |
Total marketable securities | $ 634,327 | $ 665,197 |
Fair Value Measurements - Narrative (Details) $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
Fair Value Disclosures [Abstract] | |
Continuous unrealized loss for 12 months or longer value. | $ 104,041 |
Property and Equipment, net - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization | $ 6,092 | $ 5,167 |
Capitalized costs associated with internally developed software | 1,827 | 3,154 |
Capitalized equity-based compensation | 204 | 382 |
Amortization expense | 3,162 | 1,751 |
Impairment of assets | $ 0 | $ 2,127 |
Impairment Long Lived Asset Held For Use Statement Of Income Or Comprehensive Income Extensible Enumeration Not Disclosed Flag | impairment charges | impairment charges |
Purchase of fixed assets with accounts payable | $ 225 | $ 2,101 |
Purchase of fixed assets with accrued liabilities | 300 | 6,122 |
Property and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization | $ 5,168 | $ 4,345 |
Leases (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 3,732 | $ 1,082 |
Impairment on ROU asset | 1,506 | |
Sublease income | $ 444 | $ 235 |
Intangible Assets, net - Narrative (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 924,000 | $ 822,000 |
Impairment of intangible assets | $ 0 | $ 0 |
Restricted Cash (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Cash and Cash Equivalents [Line Items] | ||
Restricted cash | $ 3,590 | $ 4,501 |
Bank Time Deposits | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted cash | $ 3,590 | $ 4,501 |
Other Assets (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Other Assets, Noncurrent [Abstract] | ||
Security deposits | $ 280 | $ 273 |
Loan fees | 165 | 198 |
Certificates of deposit | 459 | 459 |
Coronavirus aid, relief, and economic security act retention credit | 1,002 | 0 |
Strategic investment | 7,000 | 6,000 |
Other long-term assets | 3,673 | 1,477 |
Other assets | $ 12,579 | $ 8,407 |
Accrued Liabilities and Other Long Term Liabilities - Schedule of Accrued Liabilities and Other Long Term Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Accrued Liabilities | ||
Accrued compensation and benefits | $ 14,405 | $ 18,690 |
Accrued partnership liabilities | 138,521 | 96,284 |
Lease liability | $ 5,823 | $ 5,727 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Total | Total |
Other accrued liabilities | $ 81,202 | $ 43,314 |
Total | 239,951 | 164,015 |
Other Long Term Liabilities | ||
Deferred tax liability | 1,766 | 1,711 |
Lease liability | $ 120,193 | $ 121,655 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Total | Total |
Other accrued liabilities | $ 1,030 | $ 370 |
Total | $ 122,989 | $ 123,736 |
Accrued Liabilities and Other Long Term Liabilities - Narrative (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Accrued Liabilities, Current [Abstract] | ||
Other accrued liabilities, vendor accruals | $ 58,578 | $ 20,690 |
Warrants - Narrative (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
Jan. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Class of Warrant or Right [Line Items] | |||
Warrants, aggregate intrinsic value, vested | $ 16,136 | ||
Share-based compensation expense | $ 10,665 | $ 16,026 | |
Warrant | Exercisable for Alclear Units | |||
Class of Warrant or Right [Line Items] | |||
Share-based compensation expense | $ 0 | $ 623 | |
Warrant | |||
Class of Warrant or Right [Line Items] | |||
Unrecognized expense | $ 1,038 | ||
Warrants, exercises in period (in shares) | 534,655 |
Warrants - Schedule of Warrants Outstanding (Details) - Exercisable for Alclear Units |
Mar. 31, 2024
$ / shares
shares
|
---|---|
Class of Warrant or Right [Line Items] | |
Number of Warrants (in shares) | shares | 773,934 |
Weighted-average exercise price (in USD per share) | $ / shares | $ 0.01 |
Weighted average Remaining Contractual Term (years) | 5 months 15 days |
Stockholder’s Equity - Non-controlling Interest (Details) - Non-controlling Interest - Alclear Holdings LLC - shares |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Class of Stock [Line Items] | ||
Alclear Units (in shares) | 56,405,801 | |
Ownership Percentage | 38.50% | 38.51% |
Alclear Units held by Alclear post-reorganization members (other than the Co-Founders and Clear Secure, Inc.) | ||
Class of Stock [Line Items] | ||
Alclear Units (in shares) | 30,609,111 | |
Ownership Percentage | 20.89% | |
Alclear Units held by the Co-Founders | ||
Class of Stock [Line Items] | ||
Alclear Units (in shares) | 25,796,690 | |
Ownership Percentage | 17.61% |
Incentive Plans - Schedule of Compensation Expense Related to the Unvested Profit Units RSAs and RSUs (Details) - RSUs - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Number of shares | ||
Unvested balance, beginning of period (in shares) | 3,897,957 | |
Granted (in shares) | 1,079,232 | |
Vested (in shares) | (294,056) | |
Forfeited (in shares) | (241,798) | |
Unvested balance, end of period (in shares) | 4,441,335 | |
Weighted- Average Grant-Date Fair Value | ||
Unvested balance, beginning of period (in USD per share) | $ 23.50 | $ 24.85 |
Granted (in dollars per share) | 18.61 | |
Vested (in USD per share) | 24.26 | |
Forfeited (in USD per share) | 26.37 | |
Unvested balance, end of period (in USD per share) | $ 23.50 |
Net Income (Loss) per Common Share - Narrative (Details) |
3 Months Ended |
---|---|
Mar. 31, 2024
shares
| |
Earnings Per Share [Abstract] | |
Potentially dilutive shares (in shares) | 4,824,090 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Operating Loss Carryforwards [Line Items] | ||
Income tax expense (benefit) | $ 1,965 | $ (119) |
Pretax income (loss) | $ 34,053 | $ (8,392) |
Effective income tax rate | 5.80% | 1.40% |
Income taxes paid | $ 130 | |
Percent of savings for holders | 0.85 | |
Percent of savings for the company | 0.15 | |
Tax receivable liabilities | $ 96,890 | |
Alclear Holdings LLC | ||
Operating Loss Carryforwards [Line Items] | ||
Tax distribution liability | $ 3,573 | |
Common Class A | ||
Operating Loss Carryforwards [Line Items] | ||
Repurchased and retirement of equity (in shares) | 4,416,759 | |
Excise tax on fair market value of stock repurchases | $ 491 |
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Long-term Purchase Commitment [Line Items] | ||
Long-term purchase commitment, amount | $ 1,229 | |
Long-term purchase commitment, period | 1 year | |
Marketing expense | $ 1,249 | $ 1,269 |
Sales and marketing | ||
Long-term Purchase Commitment [Line Items] | ||
Long-term purchase commitment, amount | $ 7,415 |
Commitments and Contingencies - Schedule of Future Minimum Payments (Details) $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
2024 | $ 17,860 |
2025 | 19,414 |
2026 | 10,339 |
2027 | 9,279 |
2028 | 8,062 |
Thereafter | 1,230 |
Total | $ 66,184 |
Related-Party Transactions (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Related Party Transaction [Line Items] | |||
Cost of revenue share fee | $ 24,364 | $ 19,570 | |
Related Party | |||
Related Party Transaction [Line Items] | |||
Accounts payable | 3,246 | $ 3,508 | |
Cost of revenue share fee | $ 3,237 | $ 2,851 |
Employee Benefit Plan (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Retirement Benefits [Abstract] | ||
Discretionary contribution amount | $ 902 | $ 842 |
Debt (Details) - USD ($) |
1 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2024 |
Dec. 31, 2023 |
Apr. 30, 2021 |
|
Line of Credit Facility [Line Items] | ||||
Debt issuance costs | $ 396,000 | |||
Prepaid loan fees | 312,000 | $ 419,000 | ||
Remaining borrowing capacity | 68,334,000 | |||
Revolving credit facility | Credit Agreement April 2021 | ||||
Line of Credit Facility [Line Items] | ||||
Long-term line of credit | 0 | |||
Line of credit | Revolving credit facility | Credit Agreement March 30, 2020 | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument term | 3 years | |||
Maximum borrowing capacity | $ 50,000 | |||
Long-term line of credit | $ 0 | |||
Line of credit | Revolving credit facility | Credit Agreement April 2021 | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 100,000 |
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 3 Months Ended | |||
---|---|---|---|---|---|
May 07, 2024 |
Mar. 21, 2024 |
Feb. 15, 2024 |
May 08, 2024 |
Mar. 31, 2024 |
|
Subsequent Event [Line Items] | |||||
Dividends declared (usd per share) | $ 0.32 | $ 0.09 | |||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Repurchased and retirement of equity (in shares) | 1,750 | ||||
Repurchase and retirement of equity (usd per share) | $ 19.38 | ||||
Common Class A | |||||
Subsequent Event [Line Items] | |||||
Dividends declared (usd per share) | 0.32 | ||||
Repurchased and retirement of equity (in shares) | 4,416,759 | ||||
Common Class A | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Dividends declared (usd per share) | $ 0.10 | ||||
Payments to repurchase common stock | $ 33,922 | ||||
Common Class B | |||||
Subsequent Event [Line Items] | |||||
Dividends declared (usd per share) | $ 0.32 | ||||
Common Class B | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Dividends declared (usd per share) | $ 0.10 |
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