Clarivate (CLVT) Q2 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Tue, April 21, 2026 astatine 12:08 PM CDT 28 min read

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Wednesday, July 30, 2025 astatine 9 a.m. ET

• Chief Executive Officer — Matitiahu Shem Tov

• Chief Financial Officer — Jonathan M. Collins

• Head of Investor Relations — Mark J. Donohue

With maine contiguous are Matitiahu Shem Tov, Chief Executive Officer; and Jonathan Collins, our Chief Financial Officer. After prepared remarks, we'll unfastened the telephone up to your questions. And with that, it's a pleasance to crook the telephone implicit to Matitiahu.

Matitiahu Shem Tov: Good morning, everyone, and convey you for joining us. We reported coagulated 2nd 4th fiscal show and delivered maturation successful our cardinal metrics. We besides made advancement connected the Value Creation Plan, including the AI-led merchandise innovation improving income execution and enhancing operational efficiency. On Slide 6. In the 2nd quarter, we demonstrated our strategical positioning wrong the market. Organic ACV grew 1.3% compared to the anterior twelvemonth play and improved 40 ground points from the extremity of past year. This was driven by an important betterment successful the subscription publication owed to higher renewal rates and caller concern wins. Total integrated gross successful the 2nd 4th grew 50 ground points, and recurring integrated gross grew astir 1%.

Adjusted EBITDA borderline for the archetypal fractional of the twelvemonth accrued 50 ground points to 41%, driven by interior outgo efficiencies. Free currency travel continued to beryllium beardown arsenic we generated $50 cardinal successful the 2nd 4th and $161 cardinal for the archetypal 6 months of this year. I'd similar to item that each of our segments shown betterment for the archetypal fractional of the year. Our A&G concern delivered 2% integrated ACV and subscription gross growth. IP returned to integrated maturation successful patent annuities and is good positioned to payment from AI tailwind and Life Science and Health returned to integrated ACV growth. With a coagulated archetypal half, we are reaffirming our afloat twelvemonth 2025 outlook.

Jonathan volition screen the fiscal results successful much item shortly. On Slide 7. Our Value Creation Plan was launched successful the autumn of 2024, and it is connected way with measurable advancement crossed each cardinal initiatives and KPIs. We person launched each large concern optimization programme to summation halfway subscription and reoccurring revenue, which is enhancing income predictability. We person completed astir of the large operating exemplary changes wrong our income enactment to amended caller concern generation, lawsuit engagement and retention.

Since the motorboat of the VCP program past October, we person delivered 10 cutting-edge merchandise and AI-powered capabilities portion focusing connected processing AI-enabled world-class subscription-based solution successful concern with customers, and we are undertaking strategical reappraisal to measure alternatives crossed the business. If you crook to Slide 8, I'll supply an update connected the VCP starting with the A&G segment. Our proactive concern exemplary optimization, coupled with decades of acquisition successful delivering information and analytics solution to our clients has strategically positioned america to expect and accommodate to existent marketplace dynamics. We are connected way to discontinue transactional income of integer collections and books implicit the adjacent year.