Clarivate Plc (NYSE:CLVT) Q1 2024 Earnings Call Transcript

Ashish Sabadra: Thanks for taking my question. I wanted to focus on the ACV that moderated a bit. And I was just wondering as we think about that 1.8% ACV growth in the quarter, how should we think about any implications for subscription growth going forward?

Jonathan Collins: Yes. Thank you, Ashish. We did see a nearly 2% growth in ACV in Q1. We think that’s a pretty good indicator of being able to deliver subscription growth as we move through the year around 2%. The two key areas that we still need to see improvement in as we move through this year and into next year the ones I just highlighted before we continue to have higher attrition within Patent Intelligence as the new Derwent search and watch features are in market this year. And as we bring the corporate and the R&D use cases to market later this year we think that will help to bolster the ACV growth within IP, particularly in the Patent Intelligence area. And then the investments that we’re making this year and the early indicators Jonathan touched on those two seminal wins with large pharma companies.

We think that projects well for the progress that we’ll make in ACV within the life sciences segment. So continued focus in those areas to improve the ACV and drive subscription growth over the next few years.

Mark Donohue: Thank you for your question. That’s our final question. I’m going to turn it over to Jonathan Gear for closing remarks.

Jonathan Gear: Okay. Great. Thanks, Mark. And everyone first thank you so much for joining our call this morning. We’ve enjoyed being able to share our Q1 results and outlook for the rest of the year. And I think most importantly, we’re excited on the impact we’re seeing now on investments of innovation, the proof points we’re seeing from new products and the commercial reaction in our three marketplaces to the investments which we’ve had to make. So look forward to updating all of you on future progress as we go forward. Thanks so much and have a great day.

Operator: That concludes today’s conference call. Thank you for your participation. You may now disconnect your lines.