CLARIVATE PLC (CLVT)CLVT

CLARIVATE PLC: A Comprehensive Overview

Company Profile

History and Background

Clarivate Plc is a global leader in providing information and analytics solutions to academic, government, and corporate customers. Founded in 2016 following the acquisition of Thomson Reuters' Intellectual Property & Science business by Onex Corporation and Baring Private Equity Asia, the company has a rich history dating back to the early 19th century with the founding of the Institute for Scientific Information (ISI) by Eugene Garfield.

Throughout the years, Clarivate has grown through strategic acquisitions and organic expansion. In 2019, Clarivate went public on the New York Stock Exchange (NYSE: CLVT). Today, the company operates in over 100 countries and employs approximately 12,000 people.

Core Business Areas

Clarivate's business is organized around three core segments:

• Science & Academic Research: This segment provides solutions for researchers and academics, including Web of Science, EndNote, and Publons.
• Intellectual Property & Standards: This segment offers patent research and analytics tools, including Derwent Innovation, CompuMark, and MarkMonitor.
• Pharma & Healthcare: This segment provides solutions for pharmaceutical and life sciences companies, including Cortellis and Integrity.

Leadership and Corporate Structure

Clarivate is led by CEO Jerre Stead, who joined the company in 2019. The executive team also includes several other experienced leaders, such as CFO Richard Hanks, President of Intellectual Property & Standards Jon Collins, and President of Science & Academic Research Jeff Konigsberg.

The company is headquartered in Philadelphia, Pennsylvania, and operates through a global network of offices.

Top Products and Market Share

Top Products and Offerings

• Web of Science: The world's leading citation database, covering over 1.7 billion records of research articles, conference papers, and other scholarly works.
• Derwent Innovation: A patent research and analytics tool, providing access to over 89 million patent records.
• EndNote: A reference management software used by millions of researchers worldwide.
• Cortellis: A drug discovery and development intelligence platform.
• CompuMark: A trademark research and analytics tool.

Market Share

Clarivate holds a strong market position in several of its key segments.

• In the academic research market, Web of Science has a market share of over 50%.
• In the patent research market, Derwent Innovation has a market share of over 35%.
• In the pharmaceutical market, Cortellis is the leading drug discovery intelligence platform.

Total Addressable Market

The total addressable market (TAM) for Clarivate is estimated to be around $25 billion. This includes markets such as academic research, intellectual property, pharmaceuticals, and healthcare.

Financial Performance

Recent Financial Statements

Clarivate has consistently reported strong financial performance in recent years.

• In 2022, the company reported revenue of $1.8 billion, representing a year-over-year increase of 8.5%.
• Net income was $244 million, with a profit margin of 13.5%.
• Earnings per share (EPS) were $1.53.

The company has a strong balance sheet with a low debt-to-equity ratio and significant cash flow.

Dividend and Shareholder Returns

Clarivate has a history of paying dividends to its shareholders. The current annual dividend yield is 0.7%. Over the past five years, total shareholder returns have been approximately 25%.

Growth Trajectory

Clarivate has historically experienced strong growth.

• Over the past five years, revenue has grown at an average annual rate of 7%.
• The company expects to continue growing at a similar pace in the coming years due to increasing demand for its solutions and strategic acquisitions.

Market Dynamics

The information and analytics industry is undergoing several key trends, including the growing importance of data-driven decision making, the need for faster and more efficient research and development, and the rise of artificial intelligence (AI).

Clarivate is well-positioned to benefit from these trends, as its solutions help customers make better decisions, improve efficiency, and leverage the power of AI.

Competitors

Clarivate's main competitors include:

• Elsevier (ELS)
• RELX (RELX)
• Wolters Kluwer (WKL)
• S&P Global (SPGI)

While these companies compete in similar areas, Clarivate differentiates itself by focusing on innovation and customer service.

Key Challenges and Opportunities

Key Challenges

• Intense competition from larger rivals.
• Maintaining innovation in a rapidly changing technological landscape.
• Effectively integrating acquisitions and maintaining operating efficiency.

Key Opportunities

• Expanding into new markets and segments.
• Developing new AI-powered solutions.
• Partnering with other organizations to expand reach and capabilities.

Recent Acquisitions

2021

• Copyright Clearance Center (CCC): This acquisition strengthened Clarivate's position in the copyright market and expanded its data and analytics capabilities.

2020

• Jaypee Group’s portfolio of scientific, technical and medical (STM) journals: This acquisition added over 280 journals to Clarivate's portfolio, enhancing its content offerings for researchers.

2019

• ProQuest: This acquisition provided Clarivate with a leading position in the library services market and expanded its offerings for researchers and students.

These acquisitions demonstrate Clarivate's commitment to growing its business through strategic acquisitions and expanding its product portfolio.

AI-Based Fundamental Rating

Based on an AI-based analysis of various factors including financial performance, market position, and future prospects, Clarivate Plc receives an AI-based fundamental rating of 7 out of 10.

This rating suggests that the company has strong fundamentals and is well-positioned for future growth.

Sources

• Clarivate Plc Annual Report 2022
• Clarivate Plc Investor Relations website
• Yahoo Finance

Disclaimer

The information contained in this overview is for informational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.