CLEAR files S-1 for IPO as post-pandemic travel increases
Clearly directors Ken Cornick and Caryn Seidman-Becker.
CLEAR, the company best known for helping travelers clear airport security lines, has filed its IPO prospectus Monday, and said business is picking up as vaccinations increase.
The New York-based company’s revenue rose 20% last year to $ 230.8 million. The net loss decreased to $ 9.3 million from $ 54.2 million. The company plans to be listed on the New York Stock Exchange under the symbol “YOU”.
Launched in 2010, CLEAR’s biometric security service is popular among frequent travelers, who buy subscriptions for $ 179 per year. In addition to having the ability to speed up on airport lines, subscribers can also use the service in sports stadiums and entertainment venues.
In the first quarter of 2021, revenue fell 17% from the same period a year earlier, which included two months of normal activity before the pandemic. Passenger volumes among U.S. domestic airlines plunged 60% in 2020 and total bookings fell 11%, the company said.
“We expect Covid-19 to continue to negatively impact our registrations and activities at airports in 2021 and possibly beyond,” CLEAR said in its prospectus.
Yet, as more people get vaccinated and concerts, sporting events and conferences return, CLEAR’s business is poised to rebound. And for some activities, customers will need to digitally transmit their vaccination or Covid test status to be admitted.
In May, after the drop in airport travel, CLEAR launched Health Pass, a major new feature in the company’s iOS and Android app that securely stores Covid information, such as test results or vaccination records. Checking that all participants have tested negative should reduce the risk of the virus spreading.
Since the launch of the Health Pass, it has gained ground in stadiums for sporting events that need to quickly check the status of many people. In February, 100 vaccinated health workers were able to attend the Super Bowl in Tampa, Florida, by verifying their status through Health Pass. A third of NBA teams use the app to apply their Covid protocols to fans, and people attending National Hockey League games in Arizona also use the Health Pass.
CLEAR is poised to be the latest New York company to enter public markets, joining a growing list that includes names like Etsy, MongoDB and platoon. While the biggest deals usually come from Silicon Valley and San Francisco, 2021 turns out to be a successful year for New York, with DigitalOcean, UiPath and Compass all of which have already been made public.
In February, CLEAR announced a $ 100 million funding round, with backers including investment firms linked to Shake Shack founder Danny Meyer, the NFL and the Partnership Fund for New York City.
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