Clear Secure, Inc. (NYSE:YOU) Q3 2023 Earnings Call Transcript

Caryn Seidman-Becker: If I can just add to that. I think we were impressed by not only Sora’s strong team but their partner dashboard capabilities. And so marrying front end and back end, marrying our both identity capabilities today and then NextGen identity plus Sora’s capabilities makes it an incredibly powerful and importantly economically efficient because we already have a large user base capability for our partners. I would also just say there’s a lot of focus here at CLEAR focus on travel, focus on health care, focus on financial services. And there’s a lot of structural similarities between those industries both from a regulated environment, which also creates a sense of urgency, but our obsession with the customer experience.

And so I think this is a very exciting moment both launching new products like PreCheck, we talked about but Sora health care, expanding our travel capabilities, and leveraging that off a streamlined cost structure. And these are our sweet spots. We have a long track record in regulated industries driving customer experience and outcomes. And so there is a natural connection to both health care and financial services.

Cory Carpenter: Thank you. And just a follow-up on the NextGen Identity. What are some of the next steps or technologies you need before launching the CLEAR Lane of The Future kind of now that you have or you’re rolling out NextGen Identity? And is there any way to frame just how much this could potentially speed up the check-in process for Clear Lanes over time? Thank you.

Caryn Seidman-Becker: So, we have the capabilities today and we’ll be rolling them out. You might see some new hardware in the Lane, which we’re very excited about. But I think it’s really important to know when you think about face first and customers not breaking stride, when you think about seamlessly integrating into TSA’s hardware that it should be materially faster and scalable from where we are today. And we’re incredibly focused on that rate. We need to continue to drive our member experience forward in an at-scale way. Travel the mass and volumes are going to continue to grow. So the onus is on us to deploy this kind of technology right? So, face from fingerprint and eyes not breaking stride seamless digital integration into TSA hardware.

And so NextGen Identity and face are the unlock for that. And while I can’t give you an exact second what I can say is it’s materially faster as well as scalable because we expect volumes to grow from here going back to our 1 million more everyday theme coming in 2030 which is kind of around the corner.

Cory Carpenter: Thank you.

Operator: Your next question comes from Mark Kelley with Stifel. Your line is open.

Mark Kelley: Thank you very much. Good morning everyone. I have two quick ones. Just on the NextGen Identity whatever that does completely get up and running and you’re kind of at scale there does that give you an opportunity to maybe have fewer ambassadors per terminal? Or given how fast I’m assuming the whole process will be maybe you need fewer of those folks at the airports? I guess what’s the right way to think about that? And then second just quickly on the Sora ID acquisition. And Ken maybe you just answered this by saying it will be integrated in the next couple of months. But when there’s a change of ownership do you have to go through like a requalification process given that your industry is highly regulated or is that not something that happens in your industry? Thank you.

Ken Cornick: I will take the Sora one first and put to Caryn. No, there’s no issue with change of control and licensing or anything of that nature. The system would be compliant. And so as long as the system is compliant that’s all that matters.