YOU - Clear Secure: High Potential 2024 FCF Yield Impressive Earnings Growth But I Remain Neutral

2024-06-10 22:41:32 ET

Summary

• Clear Secure has reported impressive operating leverage and steady revenue growth in recent quarters, clearing a path for impressive margins.
• The company has beat revenue and EPS estimates, and expects slightly slower revenue growth in Q2, but guides for great cash flows in 2024.
• Weak bookings in Q1, a steadily worsening retention rate, and potential regulatory risks pose risks to long-term growth.
• The stock now has a slight undervaluation if growth continues as expected, but due to the mentioned risks, the stock price seems balanced.

Clear Secure ( YOU ), the subscription service that allows for quicker security clearance in airports, has reported incredible operating leverage after my previous article as the company’s growth has continued into new airports and the company continues to attract new customers....

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