Business Context and Reporting Period
This Form 6-K filing by Clarivate Analytics Plc (NYSE: CCC) covers the month of November 2019. The filing announces the company's Investor Day conference held on November 12, 2019, in New York City, where management provided updates on the business strategy and financial outlook. Clarivate operates as a global provider of trusted insights and analytics to accelerate innovation.
Key Financial Metrics and Guidance
The filing does not contain historical revenue, profit, or cash flow results for the period ended November 12, 2019. Instead, it provides forward-looking guidance for the full years of 2019 and 2020 based on non-GAAP measures.
2019 Full Year Outlook (Reaffirmed)
- Adjusted Free Cash Flow: $100 million to $120 million.
- Pro Forma Adjusted Revenues: $907 million to $940 million (assuming divestiture of MarkMonitor occurred on January 1, 2019).
- Pro Forma Adjusted EBITDA: $290 million to $310 million.
- Pro Forma Adjusted EBITDA Margins: 32% to 33%.
- Pro Forma Adjusted Free Cash Flow: $108 million to $128 million.
2020 Full Year Outlook (New Guidance)
- Adjusted Revenues: $950 million to $970 million.
- Adjusted EBITDA: $330 million to $350 million.
- Adjusted EBITDA Margins: 35% to 36%.
- Adjusted Free Cash Flow: $195 million to $210 million.
Material Changes and Strategic Context
The 2019 pro forma figures reflect the anticipated divestiture of the MarkMonitor brand protection, antipiracy, and antifraud business, announced on November 5, 2019. The guidance assumes no further currency movements, acquisitions, divestitures, or unanticipated events. The company expects Adjusted EBITDA margins to expand from a range of 32-33% in 2019 (pro forma) to 35-36% in 2020.
Management Commentary, Risks, and Contingencies
Management emphasized a strategy of "Focus, Simplify, Execute" during the Investor Day. The filing includes standard forward-looking statement disclaimers, noting that actual results may differ materially due to factors discussed in the "Risk Factors" section of the company's September 9, 2019 prospectus. The company explicitly states it has no obligation to update these forward-looking statements unless required by law.
Investor Verification Checklist
- Verify the reconciliation of non-GAAP measures (Adjusted Revenues, EBITDA, Free Cash Flow) to GAAP measures in Exhibit 99.6.
- Confirm the closing status and financial impact of the MarkMonitor divestiture on actual 2019 results.
- Review the "Risk Factors" in the September 9, 2019 prospectus for details on potential deviations from the 2020 outlook.
- Monitor currency fluctuations, as the guidance assumes no further currency movements.