Clear Secure, Inc. (NYSE:YOU) Q1 2022 Earnings Conference Call May 16, 2022 8:00 AM ET

Company Participants

Caryn Seidman-Becker - Chairman & Chief Executive Officer

Ken Cornick - President & Chief Financial Officer

Conference Call Participants

Paul Chung - JPMorgan

Dana Telsey - Telsey Group

Michael Berg - Wells Fargo

Brian Essex - Goldman Sachs

Ananda Baruah - Loop Capital

Operator

Good morning and welcome to the Clear First Quarter 2022 Earnings Conference Call. We have with us here, Ms. Caryn Seidman-Becker, Co-Founder, Chairman and Chief Executive Officer; Ken Cornick, Co-Founder, President and Chief Financial Officer. Please be advised that today's conference is being recorded.

I would also like to remind you that today's discussion will contain forward-looking statements relating to future events and expectations. You can find factors that could cause the company's actual results to differ materially from those projections in our most recent SEC filings. In addition, we've included some non-GAAP financial measures in our discussion. Reconciliation to the most directly comparable GAAP financial measures can be found in today's 8-K.

With that, I'll turn the call over to Caryn Seidman-Becker, Co-Founder, Chairman and Chief Executive Officer of Clear. Caryn?

Caryn Seidman-Becker

Thank you and good morning. Welcome to our first quarter 2022 earnings call. At Clear, we love travel and we love airports. The strong pent-up demand for travel we discussed last quarter is translating into action. As pandemic restrictions recede and people hit the road, consumers are spending a larger share of their wallet on travel experiences. There is a resurgence across the entire industry from airlines to hotels to car rentals. We have seen this firsthand at Clear in airports across the country. This March featured our highest verifications and enrollments to date. When we compare the numbers to 2019, we find the vast majority of our airports have already exceeded pre-pandemic levels. These numbers do not even take into account the full return of the traditional road warrior business traveler or international travelers.

Some of Clear's earliest and largest markets are the ones that are growing the fastest. Our Clear Plus member base has more than doubled versus 2019 and a number of those earliest markets saw in-airport enrollments grow by over 300% versus first quarter 2019. Our trial conversion rates are at record levels and more members are utilizing the family plan than ever before.

The power of the network is evident. You see it in record-high new joins, trial conversions and family attach rates. We have built Clear to meet this moment with a growing network and new product launches. In the last month, we have opened new Clear Plus lanes at three California airports, San Diego, Ontario and Palm Springs. These openings mean we now have over 120 Clear Plus lanes in 43 airports across the U.S. We will continue our efforts to expand this network. Network expansion is important as it drives growth in the new market and lifts existing markets, both from a gross add and retention perspective.