Clarivate Now Sees Wider Net Loss In FY23; Backs Adj. Earnings, Revenue Outlook

(RTTNews) - Analytics services provider Clarivate Plc (CLVT) Monday said it now sees sharply wider net loss in its fiscal 2023, as it expects a non-cash goodwill impairment charge of around $800 million to $900 million in the fourth quarter 2023. Meanwhile, the company maintained its adjusted earnings and revenue outlook.

The expected charge will be recorded across the Intellectual Property and Life Sciences & Healthcare segments.

Net loss attributable to ordinary shares is now expected to be $932 million to $1.08 billion, compared to previously expected net loss of $132 million to $182 million.

However, the company continues to expect adjusted earnings per share of $0.77 to $0.83, adjusted EBITDA of $1.09 billion to $1.14 billion, and revenues of $2.60 billion to $2.67 billion. Organic revenue growth is still projected to be 0% to 2%.

Further, Clarivate announced the launch of a process to refinance its 2026 Term Loan B credit facility that would extend the maturity to 2031 for a new combined term loan amount of $2.2 billion.

Jonathan Collins, Executive Vice President and Chief Financial Officer, said, "We are proactively capitalizing on the favorable debt market environment in order to provide further flexibility within our capital structure. With our strong free cash flow, we continue to focus on investing for growth and reducing our debt to drive long-term shareholder value."