Clear Secure Leverages Whyline Acquisition For Growth

CLEAR, biometrics

Photo Credit: Tumisu from Pixabay

As the pandemic restrictions have eased, air travel has increased significantly. The number of air passengers carried from January to April 2022 increased by 65%, while aircraft flight departures increased by 30% during this period. Recently listed CLEAR (NYSE: YOU) is a leading provider of biometrics screening for security services used especially at airports. The company is benefiting from this increased travel.

CLEAR’s Financials

CLEAR’s revenues for the first quarter grew 79% to $90.5 million. Net loss was $5 million, or $0.03 per share. CLEAR has grown its user base significantly. Today, it has more than 12 million members, and hundreds of partners across the world. Annual CLEAR Plus Net Member Retention of 95.3% was up 1,810 basis points over the year, and up 300 basis points sequentially.

For the year ended December 31, 2021, CLEAR’s revenue increased 10% to $254 million due to a 11.7%
increase in the number of average monthly CLEAR Plus members. Approximately 28.9% of paying CLEAR Plus members were on a family plan.

For the second quarter, CLEAR forecast revenues of $99-$101 million versus the analyst forecast of $100.15 million.

CLEAR’s Growth Focus

CLEAR continues to make significant geographic expansion. Recently, it announced a partnership with Greenville-Spartanburg International Airport (GSP), making it the first airport in the Carolinas with CLEAR. The partnership will create 17 jobs and generate $1.5 million annually in local economic activity. Members in the CLEAR program have the ability to verify their identity with their eyes or fingerprint, replacing the need to show their driver’s license. After verification, they’re able to go directly to TSA screening, significantly reducing the time waiting in line at security. It also launched expedited lanes at the San Diego Airport, Palm Springs International Airport, and at the Ontario Airport.

Earlier this year, CLEAR had acquired Whyline, a leading provider of virtual queuing and appointment technology, in an all-cash transaction. Founded in 2015, Whyline’s services help organizations across industries manage customer flows through its virtual queuing technology. Its mobile app or webflow allows users to see live wait-times, enter into the queue remotely or pre-book their appointment, and let the software wait on their behalf. CLEAR has already leveraged Whyline’s technology to launch virtual queuing capabilities in seven airports in the country. The service allows fliers to make TSA reservations to be made up to three days before their flight. Terms of the acquisition were not disclosed. Prior to being acquired, Whyline had raised $5.6 million in funds from four funding rounds from investors including e.Republic Ventures and CivStart.

Its stock is currently trading at $23.48 with a market capitalization of $3.6 billion. It hit a 52-week high of $65.70 in August last year and a 52-week low of $18.79 in June. CLEAR went public in June last year when it listed at $31 and raised $409 million at a valuation of $4.5 billion.

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Disclosure: All investors should make their own assessments based on their own research, informed interpretations, and risk appetite. This article expresses my own opinions based on my own research ...

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