Clear Secure, Inc. (NYSE:YOU) Q2 2023 Earnings Conference Call August 2, 2023 8:00 AM ET
Company Participants
Caryn Seidman-Becker – Co-Founder, Chairman and Chief Executive Officer
Ken Cornick – Co-Founder, President and Chief Financial Officer
Conference Call Participants
Josh Reilly – Needham
Dana Telsey – Telsey Group
Scott Devitt – Wedbush
Mark Kelley – Stifel
Ananda Baruah – Loop Capital
Operator
Good morning and welcome to Clear's Fiscal Second Quarter 2023 Conference Call. We have with us today, Caryn Seidman-Becker, Co-Founder, Chairman and Chief Executive Officer; and Ken Cornick, Co-Founder, President and Chief Financial Officer.
As a reminder, before we begin, today's discussion contains forward-looking statements about the company's future business and financial performance. These are based on management's current expectations and are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these statements are included in the company's reports on file with the SEC, including today's shareholder letter. The company disclaims any obligation to update any forward-looking statements that may be discussed during this call.
During this call, the company will discuss both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is provided in today's shareholder letter in the most recently filed annual report on Form 10-Q. These items can be found on the Investor Relations section of Clear's website.
With that, I will turn the call over to Caryn.
Caryn Seidman-Becker
Good morning. The second quarter was a strong quarter for Clear. Our bookings accelerated while margins expanded. We generated strong free cash flow and returned cash to shareholders while initiating a new quarterly dividend. We are making good progress on PreCheck testing and launch timelines. On the platform side, we are rebranding to CLEAR Verified to better represent the power of our platform. We are working with LinkedIn to expand to other markets later this year, and we were excited to hear Microsoft's CEO, Satya Nadella, highlight their commitment to identity on their recent earnings call. Eight quarters post IPO I am incredibly proud of the results our team delivered this quarter. Our growing suite of products, the partners that we support and members that we serve are a reflection of the power of the Clear platform. Identity is foundational. It is here and now. Clear has been leading an identity for 13 years and today you are seeing that in travel and beyond.
At Clear we believe actions speak louder than words and our philosophy has always been to put our members first, focus on innovation and live our mission of enhancing security and delighting travelers. But I want to set the record straight after some inaccurate media reporting. There are four key points I want to make. First, Clear enhances Homeland Security with a stellar security track record. We have biometrically verified over 130 million passengers since our founding in 2010. We have a remarkable industry leading track record of which we are incredibly proud. Our enrollment and verification processes are certified as qualified anti-terrorism technology by the Department of Homeland Security. Both our tech and our team members are force multipliers for airports, TSA and travelers. Second, a July 2022 incident has been mischaracterized. It was the unfortunate result of a human error having nothing to do with our biometric verification technology to conflate the two is just wrong.