Identity platform Clear Secure sees revenue fall in Q2

Clear Secure, the tech company that operates the Clear identity platform used at airports and other venues, published its second quarter financial results on Monday, its first quarterly report as a publicly-traded company.

Revenue declined year-over-year, though total bookings grew 102 percent year-over-year thanks to a strong rebound in traveling during the second quarter. Shares fell in after-hours trading.

The company reported basic and diluted net loss per share of 3 cents. However, that does not reflect a full quarter of results since Clear Secure’s initial public offering occurred on June 30. Revenue for the quarter was $55.2 million, down 8 percent year-over-year.

Analysts had been expecting a net loss of 31 cents per share on revenue of $54.21 million.

“We entered the year bullish on travel and the recovery has been faster and stronger than we expected,” CEO Caryn Seidman-Becker and CFO Kenneth Cornick, co-founders of the company, wrote in a shareholder letter. “Aligned with the convenience economy, travelers are craving CLEAR’s touchless, frictionless, predictable travel journey. We are gaining share in existing airports, opening new airports and launching new products.”

The rebound in travel led to strong Total Bookings growth. However, the strength in Total Bookings was not reflected in revenues, since revenues lag behind Total Bookings — Clear Secure bills members upfront and recognizes that revenue over the life of a membership, usually 12 months.

Meanwhile, Clear Secure’s non-aviation platform, particularly Health Pass, gained significant momentum in the quarter with new partners and existing and new members.

“In just over a year since its launch, Health Pass has scaled and become a trusted product. Our partners are looking for an easy, secure, and privacy-centric solution for testing and vaccination attestation,” Seidman-Becker and CFO Kenneth Cornick wrote. “Health Pass gives consumers access to and control of their health data.”

Clear Secure partnered with the state of Hawaii in the quarter to bring Health Pass to travelers to meet entry requirements without quarantine. Health Pass integrates with hundreds of providers and partners like Walmart, Atlantic Health, California and New York State.

Clear Secure’s Total Cumulative Enrollments grew 26 percent year-over-year to 6.3 million, reaching 7 million on August 15. The growth was driven by both CLEAR Plus enrollments and platform enrollments. Incremental enrollments in the quarter were 760,000, more than double the first quarter of 2021. The company experienced overall strength in new member growth, though many of its markets remained below 2019 levels.

Second quarter Total Cumulative Platform Uses grew 19 percent year-over-year to 65.5 million, driven by airport verifications as well as Health Passes uses.

For Q3 2021, Clear Secure expects revenue of $65.5 million to 66 million.

Analysts are expecting revenue of $65.32 million.