IPO News: Everything you need to know about CLEAR Secure’s NYSE listing

Of late, tech startups have been making a beeline to list on stock markets to expand their reach in a market that is going through a major transformation, especially after the coronavirus outbreak. Biometric identity company CLEAR Secure, Inc., a leading provider of identity management services at airports, is set to take the business to the next level by going public.

Biometric Technology

The New York-headquartered tech firm, which facilitates secure and hassle-free movement of guests at places like airports, was founded more than a decade ago by Caryn Seidman Becker and Ken Cornick. Its solutions mainly use biometric technologies that involve scanning key physical features like the retina for automated identification. The key solutions are designed to facilitate the smooth passage of air travelers at various checkpoints, especially frequent flyers.

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Read management/analysts’ comments on quartelry earnings

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In the prospectus submitted to the Securities and Exchange Commission, CLEAR revealed plans to list on the New York Stock Exchange under the ticker symbol YOU. While the company plans to sell $100 million worth of shares, it did not provide the exact IPO date. The group of underwriters will be led by J.P.Morgan and Goldman Sachs.

Travel Slump a Drag

The continuing slowdown in passenger traffic, due to the pandemic-related travel restrictions, has had a negative impact on CLEAR’s performance. In the most recent quarter, revenues decreased 18% annually to $50.6 million. However, net loss narrowed to $13.1 million from last year’s loss of $51.3 million aided by a sharp fall in operating costs. The company operates at 38 airport locations and has total cumulative enrolments of about 5.6 million.

The ongoing market reopening, amid widespread vaccination drive, has put the aviation sector on the road to recovery, which bodes well for CLEAR. That, along with strategic partnerships and foray into new markets, should help CLEAR achieve its turnaround goal. In a move that would help the company in turning adversity into opportunity, it has rolled out the Health Pass app that stores COVID test results and vaccination records.

‘Frictionless Experience’

Besides airports, the services are also used in public places like theme parks and stadia where biometric-based screening is required, thereby offering guests a “frictionless experience while enhancing homeland security.” The addressable market also includes Hospitality, Live Sports & Entertainment, Healthcare and, Location Access.

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American Airlines sees signs of continued recovery in demand

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“We believed the CLEAR secure identity platform could change homeland security and create frictionless journeys. We aspired to build a company that served multiple stakeholders – our team, our members, and our partners. We knew we could build a growth company and generate strong economic returns. We wanted to build a culture that cared deeply about our people and held them to the highest standards. Importantly, we also believed that we could be great friends and business partners,” said the company in its latest regulatory filing.