Clear Secure, Inc. (NYSE:YOU) Q3 2023 Earnings Conference Call November 8, 2023 8:00 AM ET
Company Participants
Caryn Seidman-Becker - Co-Founder, Chairman & Chief Executive Officer
Ken Cornick - Co-Founder, President & Chief Financial Officer
Conference Call Participants
Sarang Vora - Telsey
Joshua Reilly - Needham
Ben Miller - Goldman Sachs
Cory Carpenter - JPMorgan
Mark Kelley - Stifel
David Unger - Wells Fargo
Operator
Good morning and welcome to Clear's Fiscal Third 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 and 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'll turn the call over to Caryn.
Caryn Seidman-Becker
Good morning. The third quarter reflects our continued ability to drive strong top line growth, generate high incremental margins and allocate capital. Revenues grew by 38% and bookings grew by 32%, a reflection of Clear's continued strength even as seasonal travel patterns returned to pre-pandemic norms.
40% incremental EBITDA margins in the quarter yielded strong cash flow growth and positive operating margins. We bought Sora ID, acquiring important KYC capabilities and a great team. In addition, we repurchased 1.1 million shares since last quarter, increased our quarterly dividend 29% to $0.09 from $0.07 and today announced a $0.55 special dividend.
As we have said since the beginning, we believe in the end; growth and profitability, investments and returning cash to shareholders. Importantly, our repurchase program actually shrinks our shares outstanding. In the last two years our share count is down around 2% excluding pre-IPO warrants.
We are excited to be launching a new industry-leading identity standard NextGen Identity. With Clear's NextGen Identity, we will be the first and only company to operationalize an at-scale standardized digital identity. Not only will NextGen Identity set a new unified standard, but it enables face as the primary biometric both on mobile and at the airport. Led by face we are designing a CLEAR Lane experience at the airport, which means you will not have to break stride. In addition, members can soon expect a similar authentication experience physically and digitally whether on their phone, in the lane or through a partner's app.