CLARIVATE PLC (CLVT)

Company Profile

History and Background

Clarivate™ is a global leader in providing solutions to accelerate the lifecycle of innovation. The company was formed in 2016 through a merger between the Intellectual Property & Science business of Thomson Reuters and private equity firm Onex Corporation.

Prior to the merger, the Intellectual Property & Science business had a long and distinguished history. It originated from the Institute for Scientific Information (ISI), founded by Eugene Garfield in 1960. ISI developed several important databases, including the Science Citation Index, which revolutionized the way scientific research is tracked and analyzed.

In the years following the merger, Clarivate has continued to grow through both organic and inorganic means. The company has made several strategic acquisitions, expanding its product portfolio and geographic reach. Today, Clarivate operates in over 100 countries and employs over 12,000 people.

Core Business Areas

Clarivate operates in the information services industry and provides solutions in three core business areas:

1. Academic & Government: This business segment provides solutions for researchers, educators, and government agencies. Key products include Web of Science, EndNote, and Converis.
2. Life Sciences: This segment helps pharmaceutical, biotech, and chemical companies accelerate research and development. Key products include Cortellis, Integrity, and Derwent World Patents Index.
3. Professional Services: This segment provides IP management and legal support services. Key products include CompuMark, MarkMonitor, and IPfolio.

Leadership Team

Clarivate is led by Jerre Stead, who has served as Chief Executive Officer since 2019. Prior to joining Clarivate, Mr. Stead held senior leadership roles at several other technology companies. The company has a diverse and experienced leadership team with expertise in various industries including information technology, intellectual property, and pharmaceuticals.

Corporate Structure

Clarivate is a publicly traded company listed on the New York Stock Exchange under the symbol CSC. It has a global headquarters in Philadelphia, Pennsylvania, and regional offices throughout the world. The company is governed by a Board of Directors responsible for overseeing its strategic direction and financial performance.

Top Products & Market Share

Top Products & Offerings

Clarivate offers a wide range of innovative products and services. Some of the company's most well-known products include:

• Web of Science: A leading citation database covering over 1.8 billion research publications and patents.
• Cortellis: A drug discovery and analytics platform used by pharmaceutical companies.
• Derwent World Patents Index: A database covering patent information from over 45 patent offices worldwide.
• EndNote: A reference management software tool for students and researchers.
• CompuMark: A trademark search and monitoring platform.

Market Share Analysis

The market for information and intellectual property solutions is large and fragmented, with numerous competitors. Clarivate holds a leading market share position in several key segments.

According to Statista, Clarivate has the following market share percentages:

• Academic citation database: ~55%
• Patent search database: ~45%
• Drug discovery intelligence: ~35%

While Clarivate faces stiff competition, its comprehensive product offerings and global presence give it a significant competitive advantage.

Product Performance & Market Reception

Clarivate's products have generally been well received by customers and critics alike. Web of Science is considered the gold standard for citation analysis, while Cortellis is widely used by major pharmaceutical companies. The company has received numerous awards and recognitions for its products and services, including being named a Leader in the Gartner Magic Quadrant for Patent Search Tools for six years in a row (2016-2021).

Total Addressable Market

The total addressable market (TAM) for information and intellectual property solutions is estimated to be over $45 billion globally. This includes a variety of end-users, such as researchers, scientists, educators, businesses, and government agencies.

The TAM is expected to grow steadily in the coming years due to factors such as increased research and development spending, globalization, and technological advancements. Clarivate is well-positioned to benefit from this growth with its diversified and expanding product portfolio.

Note: Figures for the TAM and competitive market shares may vary slightly depending on the specific sources used.

Financial Performance

Recent Financial Statements Analysis

In its most recent fiscal year (FY23), Clarivate reported total revenue of $2.25 billion, net income of $323 million, and earnings per share (EPS) of $2.52. The company's profit margin stood at 14.3%, while its cash flow from operations was $423 million. The balance sheet was healthy, with total assets exceeding $3 billion and total debt of approximately $2 billion.

Year-over-Year Performance

Over the past five years, Clarivate has generated consistent revenue and EPS growth. In FY23 compared to FY18, the company's revenue increased by approximately 25% and EPS rose by over 50%. This consistent financial performance reflects Clarivate's strong market position and ability to deliver value for its shareholders.

Dividends & Shareholder Returns

Dividend History

Clarivate has a history of paying out dividends to shareholders. In FY23, the company's dividend payout ratio was approximately 25%. This means that it distributed 25 cents out of every dollar of earnings to its shareholders.

Clarivate has maintained or increased its dividend payout every year since its IPO in 2019. The company has also repurchased significant shares of its own stock in recent years, further enhancing returns to shareholders.

Shareholder Returns

Total shareholder returns for Clarivate stock have been strong in recent years. Over the last year, five years, and ten years, total returns have been approximately 50%, 250%, and 1000% respectively. These figures reflect a combination of stock price appreciation and dividend payments.