YOU

Clear Secure Inc - Ordinary Shares Class A

TMT


Presented:06/23/2022
Price:$21.52
Cap:$1.71B
Current Price:$35.49
Cap:$3.31B

Presented

Date06/23/2022
Price$21.52
Market Cap$1.71B
Ent Value$1.74B
P/E RatioN/A
Book Value$3.51
Div Yield0%
Shares O/S79.62M
Ave Daily Vol1,132,061
Short Int44.24%

Current

Price$35.49
Market Cap$3.31B
Clear Secure, Inc. provides a technology platform, which enables frictionless and safe journeys using biometric identity. Its identity platform connects passengers to the cards in their wallet transforming the way passengers live, work, and travel, and also focuses on providing verification in several areas, such as events, healthcare, and sporting stadiums. The firm offers secured biometric identity verification to its customers from different industries through its CLEAR brand. The company was founded by Caryn Seidman-Becker and Kenneth Cornick in 2010 and is headquartered in New York, NY.

Publicly traded companies mentioned herein: American Airlines Group Inc (AAL), American Express Company (AXP), Clear Secure Inc (YOU), Delta Airlines Company Inc (DAL)

Highlights

The presenter is short shares of Clear Secure Inc (YOU), a travel technology and document verification company that operates in 43 airports in the US. The company has a $3.3B market cap and is fairly liquid, trading ~$24MM in volume per day. The presenter believes this to be a good cyclical downturn story in the travel industry, and YOU should donate share to its main competitor TSA PreCheck which costs only $85 for 5 years compared to YOU’s $189/year. The company’s profits have grown 80% this past quarter compared to the same period in 2021 off the back of increased airline bookings, but as travel demand tapers off it faces tremendous pressure scaling with a limited selection of new profitable sites and a number of competitive technologies coming to market. As booking growth declines from 40% to mid teens, the presenter expects the EV/Sales multiple to compress from its current 7.1x to as low as 3x, yielding a stock price of ~$11 per share (50% downside).

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Idea Discussion

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