Clarivate Plc reported a decline in financial performance for the first quarter of 2025, with revenues totaling $593.7 million, down 4.4% from $621.2 million in the same period last year. The company experienced a net loss of $103.9 million, compared to a loss of $75.0 million in the prior year. This resulted in a basic and diluted loss per share of $0.15, slightly worse than the $0.14 loss per share reported in the first quarter of 2024. The decrease in revenue was attributed to the divestiture of the ScholarOne product group and the wind-down of certain product lines within the Life Sciences & Healthcare (LS&H) and Academia & Government (A&G) segments.
Operating expenses for the quarter were $614.5 million, a marginal decrease from $616.2 million in the previous year. Notably, restructuring and impairment costs surged to $24.7 million from $9.5 million, reflecting ongoing efforts to optimize operations under the company's Value Creation Plan initiated in late 2024. The cost of revenues decreased by 5% to $207.0 million, primarily due to reduced royalty fees and the impact of the Valipat product group divestiture. Selling, general, and administrative costs also fell by 7% to $178.4 million, driven by cost management initiatives.
In terms of operational metrics, Clarivate's annual renewal rate improved to 94% from 93% year-over-year, indicating a slight increase in customer retention. However, the total annualized contract value (ACV) decreased by 3.6% to $1,526.1 million, primarily due to the aforementioned divestitures. The company reported a total of 689.8 million weighted average shares outstanding, an increase from 666.9 million in the prior year, reflecting share repurchase activities.
Looking ahead, Clarivate anticipates continued challenges due to the impact of product line divestitures and ongoing restructuring efforts. The company is focused on enhancing its operational efficiency and adapting to market conditions, which may include further adjustments to its product offerings. Management remains committed to executing its Value Creation Plan, which aims to streamline operations and improve profitability over the long term. The company has also indicated that it will continue to monitor its cash flow and liquidity to support its strategic initiatives and meet its financial obligations.
About CLARIVATE PLC
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