Q1 2022 Clear Secure Inc Earnings Call

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.

Operator: 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.

Speaker 2: I would also remind you that today's discussion will contain forward-looking statements relating to future events and expectations.

Speaker 2: You can find factors that could cause the company's actual results to differ materially from those projections and our most recent SEC filings.

Operator: In addition, we've included some non-GAAP financial measures in our discussion. Reconciliations to the most directly comparable GAAP financial measures can be found in today's 8K.

Speaker 2: Reconciliations to the most directly comparable GAAP. Financial measures can be found in today's eight -k.

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

Caryn Gail 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.

Caryn Gail Seidman-Becker: As pandemic restrictions recede and people hit the road, consumers are spending a larger share of their wallets on travel experiences. There is a resurgence across the entire industry from airlines to hotels to car rentals.

Caryn Gail Seidman-Becker: 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 traveler. Some of Clear's earliest and largest markets are the ones that are growing the fastest.

Caryn Gail Seidman-Becker: Our Clear-plus member base has more than doubled versus 2019 and a number of those earliest markets saw airport enrollments grow by over 300% versus first quarter of 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.

Caryn Gail Seidman-Becker: 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 US. 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 growth ad and retention perspective.

Caryn Gail Seidman-Becker: Our reserve powered by Clear product is providing a predictable experience for a different type of traveler. We are seeing record numbers of travelers using reserve powered by Clear to book time slots for TSA screening in advance in cities like Phoenix, Seattle, LA, Orlando, Newark, and Calgary. As people come to expect technologies designed to make their lives easier, more travelers are utilizing Clear free home to gate tools to tell them exactly when to leave for their flight and even reserve an Uber ride ahead of time. We're excited about the platform side of our business and after a very successful fourth quarter, we continue to sign new partnerships and build our product and partner pipelines. As it's still in its early days, the platform metric can appear lumpy with timing mismatches between new deal signed and booking versus enrollments and utilization. With domestic travel back and physical and digital identity more important to trust and experiences than ever before, it is an exciting time at Clear. Our free cash flow coupled with cash on the balance sheet puts clear in a strong position with great long-term growth and significant capital allocation opportunities. With that, I'll turn it over to Ken.

Kenneth L. Cornick: Thanks, Karen. Good morning everyone. Our financial performance in Q1 was better than we expected, with revenue up 79% and bookings up 74%, driven by growth in Clear-plus as well as new deals on the platform side. As we discussed last quarter, our focus remains on growing members, bookings, and free cash flow. We generated roughly $20 million of free cash flow in the quarter and expect this to be our fifth consecutive year of free cash flow generation. Our business model is strong and following several years of platform investments, as well as the normalization of airport staffing levels post-pandemic, we are seeing operating leverage. Adjusted EBITDA this quarter was roughly breakeven. As we told you last quarter, we expect moderating year-over-year expense growth in 2022. 

Speaker 1: busthis model is strong and, following several years of platform investments, as well as the normalization of airport staffing levels post pandemic, we are seeing operating leverage.

Speaker 2: Adjusted EBITDA, this quarter was roughly breakeven.

Speaker 2: As we told you last quarter, we expect moderating year-over-year expense growth in 2020 -two.

Speaker 2: A quick word on retention. We reported 95% net member retention in the quarter, which remains above our long-term expectations of the operating.

Speaker 2: We are really pleased with how retention is trended coming out of the pandemic, and there are structural reasons for the strength, like network expansion, strong operational execution, customer centricity and brand passion, as we discussed in our letter.

Kenneth L. Cornick: Quick word on retention, we reported 95.3% net member retention in the quarter which remains above our long-term expectations of the operators. We are really pleased with how retention has trended coming out of the pandemic and there are structural reasons for the strength, like network expansion, strong operational execution, customer centricity, and brand passion, as we discussed in our letter.

Speaker 3: In addition, some of the strength also relates to W winbacks of the excess term we saw during the pandemic. As a reminder, the net retention calculation is the sum of gross retention plus winbacks. So in other words, gross retention which is in the low to mid- eighty's isnetting to the mid- ninety's with the benefit of winbacks. We do expect net retention to normalize above prepandemic levels in the upper eighty's and among best-in-class consumer subscription metrics.

Kenneth L. Cornick: In addition, some of the strength also relates to win-backs of the excess term we saw during the pandemic. As a reminder, the net retention calculation is the sum of gross retention plus win-backs. So in other words, gross retention which is in the low to mid-eighty's is netting to the mid- 90 with the benefit of win-backs. We do expect net retention to normalize above pre-pandemic levels in the upper eighty's and among best-in-class consumer subscription metrics.

Speaker 4: Some of you may have seen news of our planned price increase. Later this week we are raising the retail price of clear-plus subscription for the first time in our history by $10 to $189 for new members. Existing members will be grandfathered at 179 in 2020 -two.

Kenneth L. Cornick: Some of you may have seen news of our planned price increase. Later this week, we are raising the retail price of Clear-plus subscription for the first time in our history by $10 to $189 for new members. Existing members will be grandfathered at $179 in 2022. In this quarter, we added some disclosure around stock-based compensation expense. As owner operators we're strong believers in driving economic returns, and we are mindful of the true cost of shareholders of share count growth. At Clear, we have constructed a thoughtful, long-term total rewards program that encourages an ownership mentality while we remain focused on limiting dilution over time. Along those lines today, we announced a $100 million share repurchase program. As Clear owners, we're focused on economic capital allocation to maximize long-term returns, including opportunistic share repurchases.

Speaker 2: This quarter we added some disclosure around stock-based compensation expense.

Speaker 2: As owner operators. We are strong believers in driving economic returns and we are mindful of the true cost of shareholders of share count growth.

Speaker 1: At clear. We have constructed a thoughtful, long-term total rewards program that encourages an ownership mentality, while we remain focused on limiting dilution over time.

Speaker 1: Along those lines. Today we announced a hundred million dollar share repurchase program.

Speaker 1: As clear owners, we focused on economic capital allocation to maximize long-term returns, including opportunistic share repurchases.

Speaker 2: Our cash and equivalent balance at 331 with 663 million. Thus we have ample liquidity to support repurchases as well as our growth initiatives, both organic and inorganic.

Kenneth L. Cornick: Our cash and equivalent balance at 331 was 663 million, thus we have ample liquidity to support repurchases as well as our growth initiatives, both organic and inorganic.

Speaker 1: Now for guidance. In Q2, we expect GAAP revenues of 99 to 101 million and total bookings of 110 to hundred and Fourteen million.

Kenneth L. Cornick: Now for guidance. In Q2, we expect GAAP revenues of 99 to 101 million and total bookings of 110-114 million, excluding any contribution from TSA pre-checks. We're making steady progress in our launch timeline, setting us up for go live in the next several months. We'll now go to Q&A.

Speaker 2: Excluding any contribution from ksa PreCheck.

Speaker 2: We're making steady progress in our launch time line, setting us up for go-live in the next several months.

Speaker 1: We'll now go to tune.

Speaker 5: Thank you. Well, now be conducting the question-and-answer session now. If you'd like to ask a question today, please press star one from your telephone keypad in the confirmation tone. Indicate your lines in the question queue.

Operator: Thank you, we will now be conducting the question-and-answer session. If you would like to ask your question today, please press star one from your telephone keypad and the confirmation tone will indicate that your line is in the question queue.

Speaker 6: You press star two of you later move your question from the queue.

Speaker 7: For distance using speaker equipment.

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Operator: You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. One moment please while we poll for questions. Once again, that's star one. Thank you.

Speaker 6: one mode. Please will be pull for questions. Let's get that star 1, Thank you.

Speaker 2: For distancestead using speaker equipment. It may be necessary to pick up your handset before pressing the starkeys one morede, Please will be pull for questions once again. That' star 1, Thank you.

Speaker 5: Thank you. Our first question is from the line of Paul Choe with JV Morgan. Please dis see your questionions.

Operator: Thank you. Our first question is from the line of Paul Choe with JP Morgan. Please ask your question.

Speaker 5: Hi thanks, you're taking my questions and you very nice performance here. So just curious on the you know the health pass member kind of conversion to clear plus, how effective has that upsell progressed? What are some metrics you can share? And then temparately, we're also seeing, you know, the clear brand kind of pop up in in various different verticals. You know seeing in hospitals and others, where're where you see more opportunities to kind of grow the brand?

Paul Choe: Hi, thanks for taking my questions, and very nice performance here. So just curious on the health pass member kind of conversion to Clear-plus. How effective has that upsell progressed? What are some metrics you can share? And then separately, we're also seeing the Clear brand kind of pop up in various different verticals, seeing it in hospitals and others. Where are you seeing more opportunities to kind of grow the brand?

Speaker 9: So thanks, Paul. We are seeing organic upgrades from the platform to the clear plus side of the business. Interestingly, we really haven't kick started any internal initiatives around that, So it's really organic and I think that's incredibly exciting because it also introduces the brand to people in new ways, which makes it much easier at the airport for them to join. We're also hearing that from our ambassadors that we have much higher brand awareness, which gets people more interested and more excited about the brand.

Caryn Gail Seidman-Becker: So thanks, Paul. We are seeing organic upgrades from the platform to the Clear-plus side of the business. Interestingly, we really haven't kicked started any internal initiatives around that, so it's really organic, and I think that's incredibly exciting because it also introduces the brand to people in new ways, which makes it much easier at the airport for them to join. We're also hearing that from our ambassadors that we have much higher brand awareness, which gets people more interested and more excited about the brand.

Speaker 10: We're seeing the desire for frictionless experiences in multiple verticals, and I don't think it's just about the experience, right. So yes, that's the expectation for people coming out of the pandemic, but also automation, which drives cost efficiencies for partners, is a driver, and also connected experiences. So we are seeing it broad based in the travel industry. So, as I talked about that, return airports airlines hotels, car rentals, ride shares- you're seeing that desire across all of those and they also have a lot of partnerships between them and so I think it's a holistic view there. To your point, maybe you experience clear at HS here in New York City, we are seeing a lot of. Is that rethought?

Caryn Gail Seidman-Becker: We're seeing the desire for frictionless experiences in multiple verticals and I don't think it's just about the experience, right? So yes, that's the expectation for people coming out of the pandemic, but also automation, which drives cost efficiencies for partners, is a driver, and also connected experiences. So we are seeing it broad-based in the travel industry. So, as I talked about that, return airports, airlines, hotels, car rentals, rideshares, you're seeing that desire across all of those and they also have a lot of partnership between them and so I think it's a holistic view there. To your point, maybe you experience Clear at HSS here in New York City. We are seeing a lot of it--Is that where you saw it? Yes, I did see that. Well, hopefully, you're feeling okay. We are seeing interest in the health care side because again, Clear plays on both the physical and the digital side, right? So both on the digital front door, Tele-Health, Telemedicine as well as the physical experience

Speaker 11: Yeah see well, hopefully you're feeling OK. we are seeing interest in the health care side because again, clear plays on both the physical and the digital side right. So both on the digital front door- telehealth telemedicine, as well as the physical experience. And then the last thing I would say is we are seeing interest from, I would call it, digital trust. We did byy Atlas, certified at the very end of the fourth quarter, and this concept of knowing you and that you are certified or licensed for certain use cases, right or jobs, is also really important, So I would say, is broad based, both online and offline. The last piece, I would add, is as clear: built a lot of partnerships to help employees and employers return to work and obviously that's incredibly important right now. Thinking about that hybrid work environment which is now both physical and digital, we think there's a lot of opportunities there.

Speaker 12: Great and then follow-up on the airport count. You know you mentioned 43 today. You know how many lanes for airport today there are more runway to kind of add more lanes with your existing partners and then looking ahead, nice progress. The three airports today and in the quarter were are some key partners. You see in the pipeline any updates on the international efforts as well. Thank you.

Speaker 6: Then looking ahead, nice progress: the three airports today in the quarter. Where are some key partners you see in the pipeline? Any updates on the international efforts? As all, Thank you.

Speaker 13: So we do see growth on both the new airport and current airport pipeline and so you will see both of those coming throughout this year. In terms of where we see the opportunities, we don't announce partnerships before we sign them, So stay tuned. And internation: as I mentioned, we now have our reserve Lane in calgary. Where we're focused internationally is- I would call it, the, america-s, from Canada to South America, Western Europe - as really our first focus, and that's in multiple different kinds of products and I think about good better best, and I think we talked about this last quarter right. We have reserve will be launching PreCheck enrollment. We have clear plus and more products coming So we have more opportunities to launch different products in different airports and really serve our partners as they want to be served.

Speaker 3: So we do see growth on both the new airport and current airport pipeline and so you will see both of those coming throughout this year. In terms of where we see the opportunities, we don't announce partnerships before we sign them, So stay tuned. And internation: as I mentioned, we now have our reserve Lane in calgary. Where we're focused internationally is, I would call it, the americas- from Canada to South America, Western Europe - as really our first focus, and that's in multiple different kinds of products. When I think about good better, best- and I think we talked about this last quarter right, we we have reserve. We will be launching PreCheck enrollment. We have clear plus and more products coming So we have more opportunities to launch different products in different airports and really serve our partners as they want to be servedgreat. Thank youyesquestion comes from allightus.

Speaker 12: Great Thank you.

Speaker 5: Next' question comes from the line of Dan tel seat with lsey group. Please justsuuse your question.

Speaker 14: Good morning. Everyone's Congratulations on the nice progress. As you think about the TSA pre PreCheck launch, how is that going? And any update on the cadence there? And then on the B to B model on that you just mentioned any other guide post that we should be watching for as you go through the year? And lastly, with the operating expense leverage that you had, that that you had this quarter, how are you thinking about expenses going forward and the different buckets? Thank you.

Speaker 2: D tell T you please issu your question. Good morning, everyone's Congratulations on the nice progress. As you think about the T's a pre PreCheck launch, how is that going and any update on the cadence there and then on the B to B model, on the you just mentioned, any other guide post that we should be watching for as you go through the year? And lastly, with the operating expense leverage that you had, that you had this quarter, how are you thinking about expenes going forward and the different buckets? Thank you, I'll take the B to B and then can talk to PreCheck as well as expense and operating leverage. You know, as I talked about in my commentary an earlier stage business at the platform metrics ratherthere there can be mismatches between new deal signed in bookings versus enrollment utilization. Let me give you two examples of that. In this quarter we signed a large platform deal that contributed to bookings.

Speaker 13: So Dana, I'll take the B to B and then can talk to PreCheck as well as expense and operating leverage. You know, as I talked about in my commentaryies an earlier stage business, the platform metrics rathere- can be mismatches between new deal signed in bookings versus enrollment utilization. Let me give you two examples of that. In this quarter we signed a large platform deal that contributed to bookings but didn't yet launch, So it doesn't yet have an impact on members and utilization, as opposed to our plus business when you enroll pay, typically in the same quarter or in Q4, as we were successful driving new members with our Raiders partnership, but then the N? fl season ended, So we didn't have gross sads or utilization from that partnership in this quarter. So it's really, you know, what the guide posted you should be looking for are both product launches and partnner announcement. Some partners will run throughout a year and some partners would be in a quarter an event and so hence the potential lumpiness there, and so I would just stay tuned for product and partners.

Speaker 3: But didn't yet launch, So it doesn't yet have an impact on members and utilization, as opposed to our their plus business when you enroll pay typically in the same quarter or in Q4, as we were successful driving new members with our Raiders partnership, but then the N F? L season ended, So we didn't have growth as or utilization from that partnership in this quarter. So it's really you know what the guide post you should be looking for: our both product launches and partnner announcement. Some partners will run throughout a year and some partners would be in a quarter an event and so hence the potential lumpiness there, and so I would just stay tuned for product and partners. So the on the PreCheck piece: look, we're making really good progress. Everyone involves, motivated to bring this to the traveing public. Everyone wantchs a larger PreCheck enroment.

Speaker 15: H ina. So on the PreCheck piece look, we're making really good progress. Everyone involved motivated to bring this to the traveling public. Everyone wants a larger PreCheck enrollment.

Speaker 2: And so we continue to work and partnership with the T SA to bring our- you know, our strong networking capabilities to the PreCheck enrollment program as soon as possible and look, we're confident that we're well positioned to launch in the next several months. I'll leave at that. If I could just add to that. I was recently with some of our engineers who were showing off, you know, the product demonstration and and we're incredibly excited to launch it- and also for travelers- and I know our airport partners are also excited for the launch- the ability to leverage are really well positioned enrollment locations and our amazing staff of ambassadors and team of ambassadors across the country, you know, starting at 4: 30 in the morning and ending at 10 or 11 o, '.clock, whenever a certain Lane, our enrollment area closes, we are at the ready and incredibly excited to bring this to travelers and I would say our partners are deeply aligned on that.

Speaker 4: And so we continue to work in partnership with the T a to bring our- you know, our strong networking capabilities to the PreCheck enrollment program as soon as possible. And look, we're confident that we're well positioned to launch in the next several months. So I'll leave at that. If I could just add to that, I was recently with some of our engineers who were showing off, you know, the product demonstration and we're incredibly excited to launch it. And also for travelers- and I know our airport partners are also excited for the launch- the ability to leverage are really well positioned enrollment locations and our amazing staff of ambassadors and team of ambadors across the country, you know, starting at 4: 30 in the morning and ending at 10 or 11 o' c.lock, whenever a certain Lane, our enrollment area closes, we are at the ready and incredibly excited to bring this to travelers and I would say our partners are are deeply aligned on that.

Speaker 1: So your last question on expenses outlook. I'll reiterate what we said last time, which is we expect moderating growth rate in the year-over-year expenses. As you know, we've had a couple of years of investment in the platform. Last year, we spent the year normalizing our staffing levels to prepandemic levels, after cutting them in 2020, and so we're well positioned for operating leverage. And again I'll point to our free cash flow generations, our GAAP metric.

Speaker 4: So your last question on expenses outlook. I'll reiterate what we said last time, which is we expect moderating growth rate in the year-over-year expenses. As you know, we've had a couple of years of investment in the platform. Last year, we spent the year normalizing our staffing levels to prepandemic levels, after cutting them in 2020, and so we're well positioned for operating leverage. And again I'll point to our free cash flow generation, to our GAAP metrics understate the true profitability of the business.

Speaker 16: Understate the true profitability of the business.

Speaker 17: Thank you.

Speaker 9: Thanks.

Speaker 12: The next question comes from the line of Michael turn with well Fargo, Please receve your questions.

Speaker 8: Thank you thanksthe next question comes from the line of Michael turn with. Well Fargo, Please receieves your questionions.

Speaker 12: You got Michael Berry going from Michael turn gratson- a great core and thank for taking my question. I just wanted to double-click on being touched on last quarter to see if you might have some quanted metrics behind it. Again mentioned last quarter ste store book this good 50% year-over-year. Any sort of metrics around that this quarter?

Speaker 5: Got Michael ber from mhael turn gratson a great re and things for for taking my question. I just wanted to double click on being you touched on Boss quarter to see if you might have some quantity metrics behind it. Again mentioned last quarter steam store book, this grou of 50% year-over-year. Any sort of metrics around that this quarter?

Speaker 5: Yes we wanted to give some additional disclosure just to help everyone understand the true growth dynamics of the business on a same-store basis, as well as how widespread the growth is. Care made a few comments in our opening remarks. In general, we are seeing strong same-store growth. I don't have a metric for the- the full base for you this quarter, but we are seeing very, very widespread strong sales, same-store growth across our base.

Speaker 9: We wanted to give some additional disclosure just to help everyone understand the true growth dynamics of the business on the same store basis as well as how widespread the growth is. Care made a few comments and their opening remarks. In general, we are seeing strong same store growth. I don't have a metric for the full, the full base for you this quarter, but we are seeing very, very widespread strong sales, same store growth across our base. The quick followall up: how would you characterize the initial integration and demand for your recent acquisitions of was W ine? We're really pleased with the pipeline integrations going well and we very excited about the two acquisitions and what we can do to accelerate their growth as well as how they will help us accelerate our growth. When when I talked about automation, you know, I think that businesses are.

Speaker 12: B trassic and a quick follow-up. How would you characterize the initial integration and demand for your recent acquisitions of Atlas and wreline?

Speaker 12: We're really pleased with the pipeline integrations going well and we you very excited about them as two acquisitions and what we can do to accelerate their growth, as well as how they will help us accelerate our growth when, when we. When I talked about automation, you know, I think that businesses are fully understanding that the hours required to manually check and confirm individual credentials and licenses are staggering. When you think about health care or you think about online platforms to you know, for anything from caretakers to plumbers, the need and hours and people required to ensure compliance is really high, and so I think there's an appreciation of the automation and I do think there's an appreciation of both right, integrating the credentials as well as verified identity. So, and I think, with the clear brand, there were some ha moments for partners.

Speaker 7: Fully understanding that the hours required to manually check and confirm individual credentials and licenses are staggering. When you think about health care, or you think about online platforms to for anything from caretakers to plumbers, the need and hours and people required to ensure compliance is really high, and so I think there's an appreciation of the automation and I do think there's an appreciation of both right integrating the credentials as well as verified identity. So, and I think with the clear brand, there was some aha moments for partners.

Speaker 5: Good houssey. Thank you very much, Thank you.

Speaker 5: Thank you as a reminder. You forress star one to ask a question.

Speaker 5: Thank you very much. Thank youthank you as a reminder. You may forress star one to ask the question.

Speaker 8: Our next question comes from the line of BRI, an esex and Goldman Sachs. Please sha with your questions.

Speaker 18: Fin good morning and thank you for taking a question. I was wondering if I could touch on the price increases briefly, maybe if you could highlight the impact of those that you anticipate those increases will have on the partnner. So if you're, if you're increasing the retail price $10, what happens to airline partners that offer discounted, discounted membership, as well as the Amex relationship? And then I have a follow-up.

Speaker 2: Our nexts question comes from the line of Brian essics, from coldman's. Please sha your questions.

Speaker 10: goton a good morning and think you you for taking a question. I was wonder ING, I think, a touch on the price increases briefly, maybe if you could highlight the impact of those that you anticipate those increases will have on the partnner. So if you're, if you're increasing the retail price $10, what happens to you airline partners that offer you discounted, discounted membership, as well as the Amex relationship, and then I have a fallup? So right now, So in the past we've actually raised those prices. Currently we don't have a near term plan to do that, but certainly long term. We will look at that and we've done in the past. So, for example, when we first lost launched Delta, it came in at 79, 99 and those are now 109 1, 19 and as far as American express- and we will remain fully paid to the, to the consumergot it. So is fair to say that you know you're the one that decides what PR pricing point to.

Speaker 15: So right net. So in the past we've actually raised those prices. Currently we don't have a near-term plan to do that, but certainly long-term.

Speaker 1: We will look at that and we've done in the past. So, for example, when we first Lo launched Delta, it came in at 79 in' 99 and those are now 109, one hundred' 19 and as far as American Express, it will remain fully paid to the consumer.

Speaker 5: Got us. So is it fair to say that re only one that decides what pricing point set there? And particularly with regard to ammex to the economics, is that a renegotiation that happens on the part of the two parties?

Speaker 2: No it's not a renegotiation. When we signed the deal, all these things were considered.

Speaker 5: Got that's super helpful. And then maybe just on the bookings. There any impact to bookings is the net member retention, still relatively analogous to net revenue retention, and any impact to that number like from, I guess, true up from pricing on renewals that may previously have been discounted during the pandemic.

Speaker 19: Right So I mean the pandemic discounts have largely run through. As we mentioned, we're not going to raise price for existing members this year but certainly in the future. If prices were increased you would see dollar retention exceeds member retention because of the price increase that may.

Speaker 20: yep Ye. Thank you, that's very helpful, appreciate it.

Speaker 11: Member retention because of the price increase.

Speaker 12: That makes sense.

Speaker 9: Thank you. Thank you. Our next question is from the line of Ananda borough with bluke capital. Please re you with your questionions.

Speaker 10: Yes yes, Thank you. That's very helpful. I appreciate itthank you Thank.

Speaker 5: Yes Hey, good morning guys. Thanks to taking the questions and then congrat another quarter's strong results.

Speaker 2: yeahour next question is from the line of anda borough with Loop capital. Please Su your question. Hey the morning guys. Thanks to taking the questions and and can grant some on the another quarter strong results it's. It's really cool to see it. I guess a seeme for me if I could, can you guys? Can you guys, you guys have a sensor? Can you comment on if, if the membership conversion from the platform experiences are yet making an impact to the whats spen? You know really nice revenue the last couple of quarters.

Speaker 21: It's really cool to say it, I guess a seem for me, if I could, can you guys? Can you guys, you guys have a sensor? Can you comment on if, if the membership conversion from the platform experiences are yet making an impact to the what's been, you know, really nice revenue the last couple of quarters?

Speaker 5: I would say every dollar makes an impact. So it's been a small impact, not yet significantly material. We do think that it is an indication of what we can do as we continue to sew the platform together.

Speaker 3: I would say every dollar makes an impact. So it's been a small impact, not yet significantly material. We do think that it is an indication of what we can do as we continue to sew the platform together.

Speaker 5: That's helpful care and care with the same Bee for international, new international initiatives as well. To this point.

Speaker 13: That's helpful care, and care with the same BEE for international, international initiatives as well. To this point.

Speaker 12: Well as you're talking about the y-line acquisition. There's a small impact there, but again not yet reaching the level of significant materiality early days there as well.

Speaker 7: Well as you're talking about the w-line acquisition. There's a small impact there, but again not yet reaching the level of significant materiality early days there as well. Okay, that's per helpful and so.

Speaker 21: Okay that's super helpful and so.

Speaker 22: Could you guys just give us maybe a little additional context, if it's possible, sort of what might be like what all these see does not been mentioned again, if anything the dynamics that are driving the strong same-store sales growth that the V that been seeing. Just any context. You give us sort of like an experien of what you guys are seeing.

Speaker 14: Could you guys just give us maybe a little additional context, if it's possible, sort of what might be like what all these see does not been mentioned again, if anything, the dynamics that are driving the strong same-store sales growth that you guys have been seeing. Just any context? You give us sort of like an experience of what you guys are seeing?

Speaker 23: You know, I think it's hard to point to one thing. You know this sort of almost 13 years in the making. We launched our first airport, or Lando, mind you have can talked about price increases- a hundred and $79 in 2010- and we talked about over one hundred and twenty clear plus lanes today and use cases in sports stadium are h's's or other places, and so I think the more cases that clear, you know, shows up this, this concept of early product to market fit, which is really friction ionless experiences and giving people back there most precious asset, and that is time with a trusted brand. I think it also together I, you know I was visiting our team in the attle a few months ago in our ambassadors were saying that people who had use house passed now understood clear and we're excited to use it at the airport. I think successes is a lot of little things. We have an incredible team of ambassadors. We are fully staff today. They are welcoming travelers back. It is harder and more stressful today to travel than ever before and I think clear is a, you know, a Bastion of tranquillity in a see of stressed, not only in travel But in sports and other use cases as well. And so you know, when you look at our member growth, which is up more than a hundred percent versus 2000, and you know year over year, and then the airport side up, you know double over 2000 and nineteen, I think it's the power of the network, I think it's thetrust in brand, I think it's the word of mouth, I think it's the multiple use cases. You know I its that we've been as this for a long time and so there's a familiarity and maybe you didn't enroll a few years ago but you still see it today. You know, incredible people talk about our, our ambassadors, being just incredible and the greatest part of the airport. I think the technology has gotten better. The platform is stronger, faster. I RIS touchlist. You know I could keep going. It's a the so many little things that add up to the opportunities that we have. And then it's the world that we live in and again, I think we are probably early in 2010. but the desire for frictionless experiences and a trusted brand, which is why we wrote the letter. That we did on both the privacy side in the customer experience. It's a here and now opportunity for clear and I will also say we have an incredible team across the country and now around the world. Bring it to life.

Speaker 3: You know, I think it's hard to point to. one thing know, this is sort of almost 13 years in the making. We launched our first airport Orlando, mind. You can talk about price increases- one hundred and Seventy nine dollars in 2010- and we talked about over one hundred and twenty clear plus lanes today and use cases in sports stadiums are Hs's or other places, and so I think the more places that clear shows up this, this concept of early product markets fit, which is really friction with experiences and giving people back their most precious asset, and that is time with a trusted brand. I think it also together I. you know, I was visiting our team in Seattle a few months ago and our ambassadors were saying that people who had used health passth now understood clear and we're excited to use it at the airport. I think successes is a lot of little things. We have an incredible team of ambassadors. We are fully staff today. They are welcoming.

Speaker 7: Travelers back. It is harder and more stressful today to travel than ever before and I think clear is a a Bastion of tranquillity in a sea of stress, not only in travel But in sports and other use cases as well. And soknow, when you look at our member growth, which is up more than 100% versus 2000 and year over year, and then the airport side, up double over 2000 and nineteen, I think it's the power of the network, I think it's the trust in the brandi, think it's the word of mouth, I think it's the multiple use cases. You know, I think it's that we've been at this for a long time and so there's a familiarity. And maybe you didn't enroll a few years ago but you still see it today. Incredible people talk about our ambassadors being just incredible and the greatest part of the airport. I think the technology has gotten better. The platform is stronger, faster.

Speaker 21: That's great, that's helpful, FA for the context. And just one last quick one for 10 kenada. Is there any chance that in that retention can settle in kind of stronger than what your target is?

Speaker 24: The net has goodbye.

Speaker 5: Yeah exactly.

Speaker 2: Well we do expect it to settle in above prepandemic levels and we're seeing that. So I said upper eightiess and that age above prepandemic levels and among- look, we're going to work really hard to make sure at as high as possible- was want to maximize the every KPI.

Speaker 11: You know I said upper eies and that it's above pre pandemic levels and among you know we're we're going to work really hard to make sure it as high as possible is, want to maximize their every K P I.

Speaker 21: Ok get, that's great, that's great day, So I've go.

Speaker 5: Thank you.

Speaker 8: We've reached the end of our question-and answer session.

Speaker 13: That's great. That's great. Thanks, a goodthank you. We've reached the end of our question-and-answer session and this will also conclude today's conference call. Thank you for your participation and have a wonderful dayand. Thank you, bye.

Speaker 6: And this will also conclude today's conference call. Thank you for your participation and have a wonderful day.

Speaker 17: Thank you, goodbye.