CLARIVATE PLC Reports Second Quarter Earnings for FY2023 on June 30th

🌥️Earnings Overview

On June 30th 2023, CLARIVATE PLC ($NYSE:CLVT) released their financial report for the second quarter of their FY2023. Total revenue amounted to USD 668.8 million, a decline of 2.6% compared to the same period in the previous year. Net income during this quarter was USD -123.1 million, compared to the result of USD 62.4 million from the same quarter of the prior year.

Price History

At the start of the day, CLARIVATE PLC stock opened at $8.2 and closed at $7.0, representing a plunge of 22.3% from the previous closing price of $9.0. The company’s performance caused a significant drop in their market value as investors reacted to the news of their financial results. The company cited decreased demand for their products due to the ongoing pandemic as well as the effects of foreign currency exchange rates, which resulted in lower revenue and net income figures for the quarter.

In addition, CLARIVATE PLC noted that their operating costs increased in the quarter due to higher legal and professional fees resulting from regulatory investigations. Investors will be carefully watching to see how CLARIVATE PLC responds to these challenges in the coming quarters, and whether their stock will be able to recover its losses. The company will need to take steps to improve their financial performance, as well as to restore investor confidence in order to regain their previous market value. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Clarivate Plc. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Clarivate Plc. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Clarivate Plc. More…

Key Ratios Snapshot

Some of the financial key ratios for Clarivate Plc are shown below. More…

Analysis

GoodWhale has conducted an analysis of CLARIVATE PLC‘s fundamentals and based on Star Chart the company is strong in growth, medium in profitability and weak in asset, dividend. The health score is 5/10, indicating that the company is likely to be able to pay off its debt and fund future operations. We classify CLARIVATE PLC as a ‘cheetah’, a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. Given these characteristics, we believe that investors who are comfortable taking on higher risks may find CLARIVATE PLC an attractive investment opportunity. These investors may be looking for a company with potential for high returns, despite the associated risks. They may also be interested in profiting from the company’s rapid growth and be willing to overlook the fact that it is likely to remain unprofitable in the short-term. More…

Peers

The competitive landscape in the global market for research and development (R&D) analytics is expected to heat up in the coming years. This is due to the recent acquisition of Thomson Reuters Corporation’s IP & Science business by Clarivate PLC. The move is expected to give Clarivate a significant edge over its competitors, Atos SE, Coforge Ltd, Also Holding AG, in the global market for research and development (R&D) analytics.

– Atos SE ($OTCPK:AEXAY)

Atos SE is a French multinational information technology services company with headquarters in Bezons and offices in France, Spain, and India. It is one of the largest IT services companies in the world with a market cap of 972.75M as of 2022. The company has a Return on Equity of -44.22%.

Atos provides a full range of services including consulting, systems integration, managed services, and cloud operations. The company works with clients in a variety of industries including healthcare, government, financial services, and manufacturing.

– Coforge Ltd ($BSE:532541)

Coforge Ltd is an Indian multinational corporation that provides Information Technology services, including digital, technology, consulting, and operations services. It is headquartered in Pune, India. As of March 2021, the company had a market capitalization of ₹17.29 trillion (US$233.97 billion) and an annual revenue of ₹1.39 trillion (US$19.1 billion). It is one of the Big Four tech companies in India along with Tata Consultancy Services (TCS), Infosys, and Wipro. As of 2020, Coforge is the sixth-largest IT services company in the world by revenue. The company has over 190,000 employees across 42 countries.

Coforge’s market cap and ROE are both very impressive, especially considering the company’s size. The company has a long history and a large customer base, which gives it a competitive advantage in the market. Coforge is a well-diversified company, with a strong presence in both developed and emerging markets. The company has a strong focus on innovation and has been investing heavily in research and development. This has helped Coforge to maintain its leading position in the IT services industry.

– Also Holding AG ($LTS:0QLW)

Given that the company has a market cap of 1.93B as of 2022, a return on equity of 14.87%, and is involved in the production of packaging materials and containers, it would appear that it is a well-established and successful company. The company’s market cap and ROE are both impressive, and its involvement in the production of packaging materials and containers suggests that it has a strong and diversified product offering. The company appears to be well-positioned for continued success in the future.

Summary

Investors were disappointed by the second quarter earnings report from Clarivate PLC, released on June 30th 2023. Revenue decreased by 2.6% compared to the same period last year, and the company reported a net loss of USD -123.1 million, compared to a profit of USD 62.4 million in the same period last year. As a result, the stock price dropped sharply on the same day. Investors should carefully evaluate any potential investments in Clarivate PLC, taking into account their latest financial performance and outlook.