Clarivate Reports $2.56 Billion Revenue for Fiscal Year 2024, Net Loss Decreases

Clarivate Plc reported a revenue of $2.56 billion for the fiscal year ending December 31, 2024, a decrease of 3% from $2.63 billion in 2023. The company's net loss attributable to ordinary shares was $668 million, compared to a loss of $987 million in the previous year. The decline in revenue was primarily attributed to lower transactional revenues, which fell by 11.7% to $500 million, while subscription revenues saw a slight increase of 0.5% to $1.63 billion, driven by price increases despite lower net volume in certain segments.

The company underwent significant changes during the fiscal year, including the divestiture of its ScholarOne business in November 2024, which contributed to a decline in revenues. Additionally, Clarivate recorded substantial goodwill impairments totaling $541 million, primarily due to sustained declines in share price and adverse macroeconomic conditions. The company also approved the wind-down of three product groups within its Life Sciences & Healthcare and Academia & Government segments, which is expected to reduce revenues and profits by less than 10% and 5%, respectively.

Operationally, Clarivate reported a total employee count of over 12,000 across more than 40 countries. The company maintained a high annual renewal rate of 92% for its subscription-based services, reflecting strong customer retention. However, the total annualized contract value (ACV) declined by 1.1% year-over-year, primarily due to the divestiture of the ScholarOne business. The company continues to focus on optimizing its business model, enhancing sales execution, and accelerating innovation through investments in artificial intelligence technologies.

Looking ahead, Clarivate's management expressed cautious optimism, emphasizing the importance of its Value Creation Plan aimed at increasing subscription and recurring revenue streams. The company anticipates that ongoing efforts to streamline operations and enhance product offerings will support future growth. However, management acknowledged potential challenges, including competition from free information sources and the need to adapt to rapidly changing technology and market conditions. The company remains committed to leveraging its extensive data and analytics capabilities to drive innovation and support its diverse customer base.