Clear plans $100M IPO, sees biometric platform growth potential in healthcare
Clear is planning a $100 million an initial public offering (IPO) as its biometric access control business extends beyond the aviation industry, according to a filing with the U.S. Securities and Exchange Commission (SEC).
The Form S-1 and preliminary prospectus outlines Clear’s successes so far, and reasons to be optimistic about its growth prospects, including the expected recovery of air travel, “acceleration of digital and contactless experiences,” and the “accelerating consumerization of healthcare.” Clear sees its addressable markets as not just aviation and travel, hospitality and live sports and entertainment, but also healthcare for patient check-ins and digital medical records management, location access, in particular for North America’s 115 million “knowledge workers,” and global extensions.
The company plans to list on the New York Stock Exchange under the ticker symbol “YOU.”
Consumer subscriptions for Clear Plus cost $179 per year, with 72 percent of new sign-ups in airport in 2020, and 62 percent in-airport in 2019.
The company says it has enrolled the biometrics of 5.6 million people for access to 38 airport locations, 26 sports and entertainment venues, and has reached 61 million total cumulative uses of its platform. The company also says its net promoter score is 75. Clear’s revenues reached $230.8 million last year, 20 percent higher than the year before, with its net loss decreasing from $54.2 million to $9.3 million. This despite the impact of the pandemic on air travel, which the company said in its prospectus is expected to continue negatively affecting its airport enrollments and overall business this year, and possibly in the future.
In the first quarter of 2021, revenues were down 17 percent, compared to Q1 2020, which included two pre-pandemic months.
Clear also raised $100 million in funding already this year to accelerate the growth of its biometric platform.
Mobile sports and entertainment app partnership
Clear has also formed a strategic partnership with YinzCam, which makes apps for sports teams and entertainment events, to combine its biometric secure identity platform with the latter’s mobile technology to offer new solutions for innovative fan experiences, according to a company announcement.
The integration is intended to enhance fans’ digital journeys, and build engagement for sports and entertainment brands.
Clear’s verified identity platform will enable YinzCam to upgrade its existing capabilities with single sign-on for secure ticket purchases within its apps, biometric ticket entry and validation, enhanced user profiles which can include COVID-19 vaccination status, and age verification for purchases of goods like alcohol and content like sports gambling.