Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 23, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-40568 | ||
Entity Registrant Name | CLEAR SECURE, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 86-2643981 | ||
Entity Address, Address Line One | 85 10th Avenue | ||
Entity Address, Address Line Two | 9th Floor | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10011 | ||
City Area Code | 646 | ||
Local Phone Number | 723-1404 | ||
Title of 12(b) Security | Class A common stock, par value $0.00001 per share | ||
Trading Symbol | YOU | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,050,784,045 | ||
Documents Incorporated by Reference | Portions of Part III of this Annual Report on Form 10-K are incorporated by reference from the registrant’s definitive proxy statement (the “2024 Proxy Statement”) for its 2024 Annual Meeting of Shareholders to be filed with the Securities and Exchange Commission no later than 120 days after the end of the registrant’s fiscal year. | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001856314 | ||
Amendment Flag | false | ||
Class A Common Stock par value $0.00001 per share | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 93,313,393 | ||
Class B Common Stock par value $0.00001 per share | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 907,234 | ||
Class C Common Stock par value $0.00001 per share | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 30,609,111 | ||
Class D Common Stock par value $0.00001 per share | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 25,796,690 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | New York, New York |
Auditor Firm ID | 42 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 57,900 | $ 38,939 |
Marketable securities | 665,197 | 665,810 |
Accounts receivable | 526 | 1,169 |
Prepaid revenue share fee | 24,402 | 17,585 |
Prepaid expenses and other current assets | 22,009 | 18,097 |
Total current assets | 770,034 | 741,600 |
Property and equipment, net | 62,611 | 57,924 |
Right of use asset, net | 115,874 | 123,880 |
Intangible assets, net | 20,825 | 22,292 |
Goodwill | 62,757 | 58,807 |
Restricted cash | 4,501 | 29,945 |
Other assets | 8,407 | 3,069 |
Total assets | 1,045,009 | 1,037,517 |
Current liabilities: | ||
Accounts payable | 11,781 | 7,951 |
Accrued liabilities | 164,015 | 106,070 |
Deferred revenue | 376,253 | 283,452 |
Total current liabilities | 552,049 | 397,473 |
Other long term liabilities | 123,736 | 129,123 |
Total liabilities | 675,785 | 526,596 |
Commitments and contingencies (Note 18) | ||
Accumulated other comprehensive loss | 2,050 | (1,529) |
Treasury stock at cost, none and 80,505,000 shares as of December 31, 2023 and 2022, respectively | 0 | 0 |
Accumulated deficit | (73,714) | (101,797) |
Additional paid-in capital | 304,992 | 394,390 |
Total stockholders’ equity attributable to Clear Secure, Inc. | 233,329 | 291,065 |
Non-controlling interest | 135,895 | 219,856 |
Total stockholders’ equity | 369,224 | 510,921 |
Total liabilities and stockholders’ equity | 1,045,009 | 1,037,517 |
Common Class A | ||
Current liabilities: | ||
Common stock | 1 | 1 |
Common Class B | ||
Current liabilities: | ||
Common stock | 0 | 0 |
Common Class C | ||
Current liabilities: | ||
Common stock | 0 | 0 |
Common Class D | ||
Current liabilities: | ||
Common stock | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Par value (in USD per share) | $ 0.00001 | |
Treasury stock (in shares) | 0 | 80,505,000 |
Common Class A | ||
Par value (in USD per share) | $ 0.00001 | $ 0.00001 |
Shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Shares issued (in shares) | 91,786,941 | 87,841,336 |
Shares outstanding (in shares) | 91,786,941 | 87,760,831 |
Common Class B | ||
Par value (in USD per share) | $ 0.00001 | $ 0.00001 |
Shares authorized (in shares) | 100,000,000 | 100,000,000 |
Shares issued (in shares) | 907,234 | 907,234 |
Shares outstanding (in shares) | 907,234 | 907,234 |
Common Class C | ||
Par value (in USD per share) | $ 0.00001 | $ 0.00001 |
Shares authorized (in shares) | 200,000,000 | 200,000,000 |
Shares issued (in shares) | 32,234,914 | 38,290,964 |
Shares outstanding (in shares) | 32,234,914 | 38,290,964 |
Common Class D | ||
Par value (in USD per share) | $ 0.00001 | $ 0.00001 |
Shares authorized (in shares) | 100,000,000 | 100,000,000 |
Shares issued (in shares) | 25,796,690 | 25,796,690 |
Shares outstanding (in shares) | 25,796,690 | 25,796,690 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue | $ 613,579 | $ 437,434 | $ 253,953 |
Operating expenses: | |||
Cost of revenue share fee | 88,647 | 56,267 | 37,206 |
Cost of direct salaries and benefits | 142,820 | 104,787 | 67,730 |
Research and development | 74,444 | 66,799 | 47,490 |
Sales and marketing | 43,525 | 41,679 | 35,200 |
General and administrative | 222,356 | 278,174 | 168,902 |
Depreciation and amortization | 21,649 | 18,792 | 12,358 |
Operating income (loss) | 20,138 | (129,064) | (114,933) |
Other income (expense) | |||
Interest income (expense), net | 29,013 | 6,586 | (349) |
Other income (expense), net | 1,461 | 4,980 | 344 |
Income (loss) before tax | 50,612 | (117,498) | (114,938) |
Income tax benefit (expense) | (724) | 2,062 | (233) |
Net income (loss) | 49,888 | (115,436) | (115,171) |
Less: net income (loss) attributable to non-controlling interests | 21,780 | (49,863) | (79,089) |
Net income (loss) attributable to Clear Secure, Inc. | 28,108 | (65,573) | (36,082) |
Common Class A | |||
Other income (expense) | |||
Net income (loss) attributable to Clear Secure, Inc. | $ 27,825 | $ (64,768) | $ (35,590) |
Net income (loss) per share of Class A and B Common Stock (Note 16) | |||
Net income (loss) per common share, basic (in USD per share) | $ 0.31 | $ (0.80) | $ (0.48) |
Net income (loss) per common share, diluted (in USD per share) | $ 0.31 | $ (0.80) | $ (0.48) |
Weighted- average shares of Common Stock outstanding | |||
Weighted-average shares of Class A and B Common Stock outstanding, basic (in shares) | 89,695,439 | 81,117,184 | 75,515,242 |
Weighted-average shares of Class A and B Common Stock outstanding, diluted (in shares) | 90,709,811 | 81,117,184 | 75,515,242 |
Common Class B | |||
Other income (expense) | |||
Net income (loss) attributable to Clear Secure, Inc. | $ 282 | $ (805) | $ (492) |
Net income (loss) per share of Class A and B Common Stock (Note 16) | |||
Net income (loss) per common share, basic (in USD per share) | $ 0.31 | $ (0.80) | $ (0.48) |
Net income (loss) per common share, diluted (in USD per share) | $ 0.31 | $ (0.80) | $ (0.48) |
Weighted- average shares of Common Stock outstanding | |||
Weighted-average shares of Class A and B Common Stock outstanding, basic (in shares) | 907,234 | 1,007,686 | 1,042,234 |
Weighted-average shares of Class A and B Common Stock outstanding, diluted (in shares) | 907,234 | 1,007,686 | 1,042,234 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 49,888 | $ (115,436) | $ (115,171) |
Other comprehensive income (loss) | |||
Currency translation | (20) | (84) | 133 |
Unrealized gain (loss) on fair value of marketable securities | 5,961 | (2,586) | (304) |
Total other comprehensive income (loss) | 5,941 | (2,670) | (171) |
Comprehensive income (loss) | 55,829 | (118,106) | (115,342) |
Less: comprehensive income (loss) attributable to non-controlling interests | 24,142 | (51,107) | (79,156) |
Comprehensive income (loss) attributable to Clear Secure, Inc. | $ 31,687 | $ (66,999) | $ (36,186) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE CAPITAL UNITS AND STOCKHOLDERS’ EQUITY XUA in Thousands, $ in Thousands | USD ($) shares | Common Class A USD ($) shares | Common Class B shares | Common Class C shares | Common Class D shares | Capital Units USD ($) | Profit Units USD ($) | Total Equity Attributable to Clear Secure Inc. USD ($) | Total Equity Attributable to Clear Secure Inc. Capital Units USD ($) | Total Equity Attributable to Clear Secure Inc. Profit Units USD ($) | Common Stock Common Class A USD ($) shares | Common Stock Common Class B USD ($) shares | Common Stock Common Class C USD ($) shares | Common Stock Common Class D USD ($) shares | Additional Paid in Capital USD ($) | Accumulated Other Comprehensive Income USD ($) | Treasury Stock USD ($) shares | Accumulated Deficit USD ($) | Accumulated Deficit Capital Units USD ($) | Accumulated Deficit Profit Units USD ($) | Non-Controlling Interest USD ($) | Profit Units USD ($) shares | Profit Units XUA shares | Profit Units Profit Units USD ($) shares |
Beginning balance at Dec. 31, 2020 | $ 569,251 | |||||||||||||||||||||||
Total Redeemable Capital Units | ||||||||||||||||||||||||
Warrant expense | 1,100 | |||||||||||||||||||||||
Issuance of member units, net of costs | 81,567 | |||||||||||||||||||||||
Repurchase and retirement of capital units | (439) | |||||||||||||||||||||||
Exercise of warrants prior to the reorganization transaction | 34,224 | |||||||||||||||||||||||
Effect of reorganization transaction | (685,703) | |||||||||||||||||||||||
Ending balance at Dec. 31, 2021 | 0 | |||||||||||||||||||||||
Beginning balance (in shares) at Dec. 31, 2020 | shares | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Beginning balance at Dec. 31, 2020 | (486,896) | $ (486,896) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 27 | $ (494,769) | $ 0 | ||||||||||||||
Beginning balance (in shares) at Dec. 31, 2020 | shares | 1,868,322 | 1,868,322 | ||||||||||||||||||||||
Beginning balance at Dec. 31, 2020 | XUA | XUA 7,846 | |||||||||||||||||||||||
Beginning balance (in shares) at Dec. 31, 2020 | shares | 0 | |||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Net income (loss) | (115,171) | |||||||||||||||||||||||
Other comprehensive income (loss) | (171) | (78) | (78) | (93) | ||||||||||||||||||||
Equity-based compensation expense, net of forfeitures (in shares) | shares | 223,069 | 223,069 | 26,925 | 26,925 | ||||||||||||||||||||
Equity-based compensation expense, net of forfeitures | 31,697 | 16,574 | 15,894 | 15,123 | $ 680 | |||||||||||||||||||
Warrant expense | 2,890 | 1,847 | 1,847 | 1,043 | ||||||||||||||||||||
Exercise of warrants (in shares) | shares | 2,000,000 | |||||||||||||||||||||||
Tax distribution to members | (4,114) | (4,066) | (4,066) | (48) | ||||||||||||||||||||
Effect of reorganization transaction (in shares) | shares | 59,240,306 | 1,042,234 | (1,770,150) | (1,770,150) | ||||||||||||||||||||
Effect of reorganization transaction | 685,703 | 611,223 | $ 1 | 62,858 | (52) | 556,886 | 74,480 | $ (8,470) | ||||||||||||||||
Issuance of stock, net of costs (in shares) | shares | 15,180,000 | 44,598,167 | 26,709,821 | |||||||||||||||||||||
Proceeds from IPO, net of costs | 436,837 | 233,246 | 233,246 | 203,591 | ||||||||||||||||||||
Issuance of RSU's upon satisfaction of vesting terms (in shares) | shares | 196,019 | |||||||||||||||||||||||
Repurchased and retirement of equity (in shares) | shares | (71,247) | |||||||||||||||||||||||
Repurchase and retirement of equity | $ (3,005) | $ (8,302) | $ (3,005) | $ (8,302) | $ (3,005) | $ (8,246) | $ (56) | |||||||||||||||||
Ending balance (in shares) at Dec. 31, 2021 | shares | 76,393,256 | 1,042,234 | 44,598,167 | 26,709,821 | ||||||||||||||||||||
Ending balance at Dec. 31, 2021 | 539,468 | 277,613 | $ 1 | $ 0 | $ 0 | $ 0 | 313,845 | (103) | $ 0 | (36,130) | 261,855 | |||||||||||||
Ending balance (in shares) at Dec. 31, 2021 | shares | 0 | 0 | ||||||||||||||||||||||
Ending balance at Dec. 31, 2021 | XUA | XUA 0 | |||||||||||||||||||||||
Ending balance (in shares) at Dec. 31, 2021 | shares | 223,069 | |||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Net income (loss) | (115,436) | (65,573) | (65,573) | (49,863) | ||||||||||||||||||||
Other comprehensive income (loss) | (2,670) | (1,426) | (1,426) | (1,244) | ||||||||||||||||||||
Equity-based compensation expense, net of forfeitures (in shares) | shares | 215,229 | 215,229 | ||||||||||||||||||||||
Equity-based compensation expense, net of forfeitures | 61,462 | 36,266 | 36,266 | 25,196 | ||||||||||||||||||||
Net share settlements of stock-based awards (in shares) | shares | 365,320 | (357,793) | ||||||||||||||||||||||
Net share settlements of stock-based awards | (5,411) | (2,175) | (2,175) | (3,236) | ||||||||||||||||||||
IPO expenses | (297) | (156) | (156) | (141) | ||||||||||||||||||||
Warrant expense | 77,033 | 43,090 | 43,090 | 33,943 | ||||||||||||||||||||
Exercise of warrants (in shares) | shares | 3,881,207 | 194,043 | ||||||||||||||||||||||
Exercise of warrants | 0 | 9,477 | 9,477 | (9,477) | ||||||||||||||||||||
Tax distribution to members | (171) | (94) | (94) | (77) | ||||||||||||||||||||
Exchange of shares (in shares) | shares | 7,414,377 | 6,501,246 | 913,131 | |||||||||||||||||||||
Exchange of shares | 0 | 21,343 | 21,343 | (21,343) | ||||||||||||||||||||
Conversion of shares (in shares) | shares | 135,000 | 135,000 | ||||||||||||||||||||||
Special dividend/distribution to Alclear Members | (38,155) | (21,905) | (21,905) | (16,250) | ||||||||||||||||||||
Repurchased and retirement of equity (in shares) | shares | (213,100) | |||||||||||||||||||||||
Repurchase and retirement of equity | (4,902) | (5,395) | (5,395) | 493 | ||||||||||||||||||||
Ending balance (in shares) at Dec. 31, 2022 | shares | 87,760,831 | 907,234 | 38,290,964 | 25,796,690 | 87,760,831 | 907,234 | 38,290,964 | 25,796,690 | ||||||||||||||||
Ending balance at Dec. 31, 2022 | $ 510,921 | 291,065 | $ 1 | $ 0 | $ 0 | $ 0 | 394,390 | (1,529) | $ 0 | (101,797) | 219,856 | |||||||||||||
Ending balance (in shares) at Dec. 31, 2022 | shares | 80,505,000 | 80,505 | ||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Net income (loss) | $ 49,888 | 28,108 | 28,108 | 21,780 | ||||||||||||||||||||
Other comprehensive income (loss) | 5,941 | 3,579 | 3,579 | 2,362 | ||||||||||||||||||||
Equity-based compensation expense, net of forfeitures (in shares) | shares | 3,079 | 3,079 | ||||||||||||||||||||||
Equity-based compensation expense, net of forfeitures | 38,094 | 22,782 | 22,782 | 15,312 | ||||||||||||||||||||
Net share settlements of stock-based awards (in shares) | shares | 551,178 | (83,584) | ||||||||||||||||||||||
Net share settlements of stock-based awards | (6,814) | (2,436) | (2,436) | (4,378) | ||||||||||||||||||||
Warrant expense | 623 | 366 | 366 | 257 | ||||||||||||||||||||
Exercise of warrants (in shares) | shares | 534,655 | |||||||||||||||||||||||
Exercise of warrants | 0 | 1,615 | 1,615 | (1,615) | ||||||||||||||||||||
Distribution to members | (42,674) | (42,674) | ||||||||||||||||||||||
Tax distribution to members | (34,618) | (25) | (25) | (34,593) | ||||||||||||||||||||
Issuance of stock, net of costs (in shares) | shares | 6,056,050 | |||||||||||||||||||||||
Exchange of shares (in shares) | shares | 6,056,050 | 6,056,050 | ||||||||||||||||||||||
Exchange of shares | 0 | 20,691 | 20,691 | (20,691) | ||||||||||||||||||||
Special dividend/distribution to Alclear Members | (67,998) | (67,998) | (67,998) | |||||||||||||||||||||
Dividends | (14,466) | (14,466) | (14,466) | |||||||||||||||||||||
Repurchased and retirement of equity (in shares) | shares | (3,112,694,000) | (3,112,694) | ||||||||||||||||||||||
Repurchase and retirement of equity | (69,673) | $ (69,673) | (49,952) | (49,952) | (19,721) | |||||||||||||||||||
Ending balance (in shares) at Dec. 31, 2023 | shares | 91,786,941 | 907,234 | 32,234,914 | 25,796,690 | 91,786,941 | 907,234 | 32,234,914 | 25,796,690 | ||||||||||||||||
Ending balance at Dec. 31, 2023 | $ 369,224 | $ 233,329 | $ 1 | $ 0 | $ 0 | $ 0 | $ 304,992 | $ 2,050 | $ 0 | $ (73,714) | $ 135,895 | |||||||||||||
Ending balance (in shares) at Dec. 31, 2023 | shares | 0 | 0 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows provided by (used in) operating activities: | |||
Net income (loss) | $ 49,888 | $ (115,436) | $ (115,171) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||
Depreciation on property and equipment | 18,215 | 15,524 | 12,358 |
Amortization on intangible assets | 3,434 | 3,268 | 0 |
Noncash lease expense | 6,468 | 3,769 | 0 |
Impairment of assets | 4,975 | 3,068 | 4,567 |
Equity-based compensation | 37,293 | 138,495 | 36,511 |
Warrant liabilities | 0 | 0 | 12,796 |
Deferred income tax expense (benefit) | (722) | (2,471) | 0 |
Amortization of revolver loan costs | 339 | 440 | 358 |
Premium amortization (discount accretion) on marketable securities | (13,804) | (2,958) | 675 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 643 | 4,162 | (4,208) |
Prepaid expenses and other assets | (3,192) | 991 | (11,422) |
Prepaid revenue share fee | (6,817) | (7,313) | (4,798) |
Accounts payable | 4,525 | (752) | 1,451 |
Accrued and other long term liabilities | 33,714 | 34,979 | 50,045 |
Deferred revenue | 92,801 | 94,889 | 87,021 |
Operating lease liabilities | (2,727) | (2,345) | 0 |
Deferred rent | 0 | 0 | (476) |
Net cash used provided by operating activities | 225,033 | 168,310 | 69,707 |
Cash flows provided by (used in) investing activities: | |||
Business combinations, net of cash acquired | (3,750) | 0 | (75,834) |
Purchases of marketable securities | (952,655) | (1,462,550) | (987,966) |
Proceeds from Sale and Maturity of Marketable Securities | 973,032 | ||
Proceeds from sales and maturities of marketable securities | 1,134,864 | 689,572 | |
Purchase of strategic investment | (6,000) | 0 | 0 |
Purchases of property and equipment | (25,555) | (31,362) | (28,148) |
Purchases of intangible assets | (580) | (545) | (822) |
Net cash used in investing activities | (15,508) | (359,593) | (403,198) |
Cash flows provided by (used in) financing activities: | |||
IPO proceeds, net of underwriter fees and issuance costs | 0 | (297) | 436,837 |
Repurchase of Class A Common Stock | (69,673) | (4,902) | (11,744) |
Proceeds from issuance of members’ equity, net of issuance costs | 0 | 0 | 80,277 |
Issuance of warrants | 0 | 0 | 289 |
Proceeds from the exercise of warrants | 0 | 0 | 2,575 |
Payment of dividend | (14,483) | 0 | 0 |
Payment of special dividend | (68,038) | (21,843) | 0 |
Distributions to members | (42,674) | (16,250) | 0 |
Tax distribution to members | (13,929) | (171) | (4,114) |
Debt issuance costs | (396) | 0 | (718) |
Payment of taxes on net settled stock-based awards | (6,814) | (5,411) | 0 |
Net cash provided by (used in) financing activities | (216,007) | (48,874) | 503,402 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (6,482) | (240,157) | 169,911 |
Cash, cash equivalents, and restricted cash, beginning of period | 68,884 | 309,126 | 139,082 |
Exchange rate effect on cash and cash equivalents, and restricted cash | (1) | (85) | 133 |
Cash, cash equivalents, and restricted cash, end of period | $ 62,401 | $ 68,884 | $ 309,126 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CASH FLOWS (Parenthetical) $ in Thousands | Dec. 31, 2021 USD ($) |
Statement of Cash Flows [Abstract] | |
Cash and cash equivalents | $ 280,107 |
Restricted cash | 29,019 |
Total cash, cash equivalents, and restricted cash | $ 309,126 |
Description of Business and Rec
Description of Business and Recent Accounting Developments | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Recent Accounting Developments | Description of Business and Recent Accounting Developments Description and Organization Clear Secure, Inc. (the “Company” and together with its consolidated subsidiaries, “CLEAR,” “we,” “us,” “our”) is a holding company and its principal asset is the controlling equity interest in Alclear Holdings, LLC (“Alclear”). Alclear was formed as a Delaware limited liability company on January 21, 2010 and operates under the terms of the Second Amended and Restated Operating Agreement dated June 7, 2023 (the “Operating Agreement”). As the sole managing member of Alclear, the Company operates and controls all of the business and affairs of Alclear, and through Alclear and its subsidiaries, conducts the Company’s business. The Company operates an identity company under the brand name CLEAR primarily in the United States. CLEAR's current offerings include: CLEAR Plus, a consumer aviation subscription service, which enables access to predictable and fast experiences through dedicated entry lanes in airport security checkpoints within our nationwide network of 56 airports (as of the date of this filing); TSA PreCheck® Enrollment Provided by CLEAR, which offers consumers increased choice in how and where to sign up for this popular trusted traveler program; CLEAR Verified, our B2B offering, which enables our partners to leverage our digital identity technology and reusable member network to facilitate secure and frictionless experiences digitally and physically via our software development kits and application programming interfaces; and our free flagship CLEAR app, which offers consumer products like Home-to-Gate, RESERVE Powered by CLEAR, our virtual queuing technology that enables customers to prebook a spot in airport security line so they don’t have to wait. Reorganization and Initial Public Offering On June 29, 2021, prior to the completion of the initial public offering (“IPO”) of the Company’s shares of Class A common stock, $0.00001 par value per share (the “Class A Common Stock”), the Company, Alclear and its subsidiaries consummated an internal reorganization (the “Reorganization”) which resulted in the following: • Clear Secure, Inc. became the sole managing member of Alclear. • The certificate of incorporation of Clear Secure, Inc. was amended and restated to authorize the Company to issue four classes of Common Stock: Class A Common Stock, Class B common stock, $0.00001 par value per share (the “Class B Common Stock”), Class C common stock, $0.00001 par value per share (the “Class C Common Stock”) and Class D common stock, $0.00001 par value per share (the “Class D Common Stock” and, together with the Class A Common Stock, Class B Common Stock and Class C Common Stock, collectively, “Common Stock”). The Class A Common Stock and Class C Common Stock provide holders with one vote per share on all matters submitted to a vote of stockholders, and the Class B Common Stock and Class D Common Stock provide holders with twenty votes per share on all matters submitted to a vote of stockholders. The holders of Class C Common Stock and Class D Common Stock do not have any of the economic rights (including rights to dividends and distributions upon liquidation) provided to holders of Class A Common Stock and Class B Common Stock. • All of Alclear’s outstanding equity interests (including Class A units, Class B units and profit units) were reclassified into Alclear non-voting common units (“Alclear Units”). The number of Alclear Units issued to each member of Alclear was determined based on a hypothetical liquidation of Alclear and the initial public offering price per share of the Company’s Class A Common Stock in the IPO. Certain members exchanged their Alclear Units for an equal number of Class A Common Stock. • Alclear Investments, LLC, an entity controlled by Caryn Seidman-Becker, the Chair of the Board, our Co-Founder and our Chief Executive Officer, and Alclear Investments II, LLC, an entity controlled by Kenneth Cornick, our Co-Founder, President and Chief Financial Officer, contributed a portion of their Alclear Units to us in exchange for Class B Common Stock. • The remaining members of Alclear, including Alclear Investments, LLC and Alclear Investments II, LLC (“Alclear Members”) subscribed for and purchased shares of the Company’s Class C Common Stock and Class D Common Stock at a purchase price of $0.00001 per share and in an amount equal to the number of Alclear Units held by such members. • The Company entered into a Tax Receivable Agreement (“TRA”) which generally provides for payment by the Company to the remaining members of Alclear, the “TRA Holders,” of 85% of the net cash savings, if any, in U.S. federal, state and local income tax and franchise tax that the Company actually realizes or is deemed to realize in certain circumstances. The Company will retain the benefit of the remaining 15% of these net cash savings. • Alclear is treated as a partnership for U.S. federal income tax purposes and, as such, is itself generally not subject to U.S. federal income tax under current U.S. tax laws. Clear Secure, Inc, as a member of Alclear, will be required to take into account for U.S. federal income tax purposes its distributive share of the items of income, gain, loss and deduction of Alclear. As the Reorganization is considered a transaction between entities under common control, the consolidated financial statements for periods prior to the IPO and Reorganization have been adjusted to combine the previously separate entities for presentation purposes. Prior to the Reorganization, Clear Secure, Inc. had not engaged in any business or other activities, except in connection with its formation. On July 2, 2021, the Company completed the IPO of its Class A Common Stock. In the IPO, the Company sold an aggregate of 15,180,000 shares of Class A Common Stock, $0.00001 par value per share, at an offering price of $31 per share including as a result of the underwriters exercising their option to purchase up to 1,980,000 shares of Class A Common Stock. As a result, Clear Secure, Inc. received net proceeds from the IPO of approximately $445,875 after deducting underwriting discounts and commissions. As a result of the IPO, the Company contributed the net IPO proceeds to Alclear in exchange for 15,180,000 Alclear Units. For the years ended December 31, 2023, 2022 and 2021, the Company incurred none, $297, and $9,038, respectively, of issuance related costs as a result of the IPO that were recorded within additional paid in capital within the consolidated balance sheets. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The consolidated financial statements are prepared in accordance with U.S. GAAP and presented in U.S. Dollars in thousands. Intercompany transactions and balances are eliminated upon consolidation. The Company is managed and organized by major functional departments that operate on a consolidated basis. The Company has one operating and reportable segment. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgements, and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other market-specific and relevant assumptions that management believes to be reasonable under the circumstances. The Company’s most significant estimates include: • The measurement of partnership liabilities. • The estimated fair value of intangible assets acquired in conjunction with business combinations The Company evaluates, on an ongoing basis, its assumptions and estimates and adjusts prospectively, if necessary; however, actual results could differ from these estimates. Significant Accounting Policies Foreign currency Items included in the financial statements of each of the Company’s consolidated entities are measured using the currency of the primary economic environment in which the entity operates. The consolidated financial statements are presented in US Dollars, which is the Company’s reporting currency. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at period-end exchange rates are recognized in other income (expense), net within the consolidated statement of operations. The results and financial position of all the Company entities that have a functional currency different from the Company's reporting currency are translated into US Dollars as follows: • Assets and liabilities are translated at the closing rate at the reporting date; • Income and expenses for each statement of operation are translated at average exchange rates; and All resulting exchange differences are recognized within currency translation within the statements of comprehensive income (loss) and within accumulated comprehensive loss within the consolidated balance sheets. Concentration of credit risk Financial instruments that are exposed to concentrations of credit risk consist principally of cash and cash equivalents. The Company is exposed to credit risk in the event of default by the financial institutions to the extent of the amounts held in excess of federal insurance limits. Exposure to credit risk is reduced by placing such deposits or other temporary investments with high credit quality financial institutions. As of December 31, 2023 and 2022, the Company held cash balances in excess of insured limits. Revenue recognition The Company has derived substantially all of its historical revenue from subscriptions to its consumer aviation service, CLEAR Plus. The Company offers certain limited-time free trials, family pricing, and other beneficial pricing through several channels including airline and credit card partnerships. Membership subscription revenue is presented net of taxes, refunds, and credit card chargebacks. The membership subscription revenue is also reduced by the Company’s funded portion of credit card benefits issued to Members through a partnership with one credit card at the end of the contract period. The Company’s funded portion varies based on total number of Members enrolled each contract year. Under Accounting Standards Codification (“ASC”) 606, Revenue Recognition, the Company recognizes revenue upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. In determining how revenue should be recognized, the Company follows a five step process: • Identification of the contract, or contracts, with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when or as the Company satisfies the performance obligations. Subscription revenues are invoiced to subscribers in annual installments for subscriptions to the platform. There are no significant financing components included in the Company’s contracts with subscription customers. Overall, payments received in advance of transfer of control are recorded within deferred revenue within the consolidated balance sheets. The Company primarily recognizes revenue ratably from its consumer aviation subscription service, CLEAR Plus. This performance obligation is satisfied over time as the series of daily services, which are distinct from each other and the customer simultaneously receives and consumes the benefits. The Company uses a time-based output measure and revenue is recognized over the period in which each of the performance obligations are satisfied, as services are rendered, which is generally over the arrangement term as all arrangements are for a period of less than 12 months. The Company uses the practical expedient permitted to not adjust the transaction price of contracts with a duration of one year or less for the effects of a significant financing component at contract inception. The Company has certain other revenue streams which are not significant to the Company’s operating results. Contract costs The Company applies the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period is one year or less. This largely applies to sales commissions on partner subscriptions and renewals. Cost of revenue share fee The Company operates as a concessionaire in airports and shares a portion of the gross receipts generated from the Company’s Members with the host airports (“Cost of revenue share fee”). The Cost of revenue share fee is generally prepaid to the host airport in the period collected from the customer. The Cost of revenue share fee is capitalized and subsequently amortized to operating expense over each Member’s subscription period. Such prepayments are recorded in “Prepaid revenue share fee” in the consolidated balance sheets. Certain host airports have fixed minimum monthly payments. The fixed monthly payments are expensed as incurred in “Cost of revenue share fee” in the consolidated statements of operations since they are direct costs of service. Cost of direct salaries and benefits Cost of direct salaries and benefits includes employee-related compensation costs and allocated overhead associated with our field Ambassadors directly assisting Members and their corresponding travel-related costs. Employee-related costs recorded in direct salaries and benefits expenses consist of salaries, taxes, benefits and equity-based compensation. Such amounts are direct costs of services. Research and development Research and development expenses consist primarily of employee-related expenses and allocated overhead costs related to the Company’s development of new products and services and improving existing products and services. Research and development costs are generally expensed as incurred, except for costs incurred in connection with the development of internal-use software that qualify for capitalization as described in our internal-use software policy. Employee-related expenses recorded in research and development consist of salaries, taxes, benefits and equity-based compensation. Sales and marketing Sales and marketing expenses consist primarily of costs of general marketing and promotional activities, advertising fees used to drive subscriber acquisition, commissions, the production costs to create our advertisements, employee-related expenses and allocated overhead costs. Employee-related expenses recorded in sales and marketing are related to employees who manage the brand and consist of salaries, taxes, benefits and equity-based compensation. These expenses are recorded as incurred. The Company pays commissions to employees for enrolling customers into free trial memberships. These costs, along with most costs under sales and marketing, are expensed as incurred, since the Company incurs these costs regardless of whether contracts with customers are obtained. As such, these sales commissions are not incremental costs of obtaining a contract. General and administrative General and administrative expenses consist primarily of employee-related expenses for the executive, finance, accounting, legal, and human resources functions. Employee-related expenses consist of salaries, taxes, benefits and equity-based compensation. General and administrative costs also include the Company’s warrant expense. In addition, general and administrative expenses include non-personnel costs, such as legal, accounting and other professional fees, and all other supporting corporate expenses not allocated to other departments. Interest income (expense), net Interest income (expense), net primarily consists of interest income from our investment holdings and discount accretion on our marketable securities partially offset by issuance costs on our revolving credit facility. Other income (expense), net Other income (expense), net consists of certain non-recurring non-operating items including income recognized in relation to a minimum annual guarantee paid to us by a marketing partner. For the years ended December 31, 2023, 2022 and 2021, the Company recorded a minimum annual guarantee paid of approximately none, $7,100, and $5,799, respectively. Advertising costs Advertising costs are expensed as incurred and are included in sales and marketing expenses. For the years ended December 31, 2023, 2022 and 2021, the Company recorded $12,907, $10,903, and $16,140, respectively, of advertising costs. Cash and cash equivalents The Company defines cash equivalents as all highly liquid investments purchased with original maturities of three months or less when purchased. Cash and cash equivalents consist primarily of short-term treasury bills. Cash and cash equivalents as of December 31, 2023 and 2022 was $57,900 and $38,939, respectively, and includes amounts due from third party institutions which generally settle within three business days, of $10,243 and $6,497 as of December 31, 2023 and 2022, respectively. Restricted cash Restricted cash is composed of cash held as collateral for letters of credit. See Note 10 for additional information. Marketable securities The Company determines the appropriate classification of its investments in marketable securities at the time of purchase and reevaluates such designation at each balance sheet date. The Company has classified and accounted for its marketable securities as available-for-sale. The investments herein are intended to be held for an indefinite period of time although they may be sold at management’s discretion, in response to needs for liquidity or in response to changes in the market conditions and as such, are not recognized at amortized cost, and reported as current assets on the consolidated balance sheets. The Company carries its available-for-sale securities at fair value and reports the unrealized gains and losses as a component of other comprehensive income (loss). The Company monitors any continuous unrealized losses on its marketable securities for indication of impairment under ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326). Accounts receivable The Company records trade accounts receivable at the invoiced amount and they do not bear interest. The Company has a policy to review outstanding receivables on a periodic basis for collectability and does not maintain an allowance for doubtful accounts as of December 31, 2023 and 2022. The Company monitors and records any expected credit losses under ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) within general and administrative within the consolidated financial statements. The Company recorded no losses for the years ended December 31, 2023 and 2022. Property and equipment, net Property and equipment, net is stated at cost, less depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets, which range from 3 to 5 years. Leasehold improvements are amortized based on the shorter of the useful lives or the terms of the leases ranging from 1 to 15 years. The Company capitalizes qualifying internal-use software development costs. During the application development phase, costs are capitalized and amortized on a straight-line basis over such software’s estimated useful life, which is generally 3 to 5 years. Capitalized software development costs are reflected in “Property and equipment, net” in the consolidated balance sheets. Software development costs incurred in the design or maintenance phase and minor upgrades and enhancements of software without adding additional functionality are expensed as incurred and included in “Research and development” in the consolidated statements of operations. See Note 7 for additional details on property and equipment. Business combinations The Company evaluates acquisitions to determine whether it is a business combination or an asset acquisition. Identifiable assets acquired and liabilities assumed are measured initially at their fair values at the acquisition date. The excess of the fair value of the purchase consideration transferred over the fair value of the identifiable net assets acquired is recognized as goodwill. Acquisition-related costs are charged to the consolidated statement of operations within general and administrative as they are incurred. Intangible assets, net The Company’s intangible assets primarily consists of patents and acquired intangible assets in a business combination. Intangible assets with finite lives, including the Company’s patents and those assets acquired in a business combination are amortized on a straight-line basis over their estimated useful lives. Acquired intangible assets other than goodwill comprise acquired developed technology, trade names, customer lists and patents. At initial recognition, intangible assets acquired in a business combination are recognized at their fair value as of the date of acquisition. Following initial recognition, intangible assets are carried at cost less accumulated amortization and impairment losses, to the extent applicable. Goodwill Goodwill is the excess of the purchase price over the net identifiable assets acquired and liabilities assumed in a business combination. The Company assesses goodwill for impairment annually on the first day of the fourth quarter of the fiscal year, or whenever there is a triggering event indicating that an impairment may exist. The Company performs its evaluation at the reporting unit level. Impairment of long-lived assets The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its long-lived assets may not be recoverable. When such events or changes in circumstances occur, the Company first determines its asset group and then assesses the recoverability of long-lived assets within that asset group by determining whether the carrying value of such assets will be recovered through their undiscounted expected future cash flows. If the future undiscounted cash flows are less than the carrying amount of these assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. During 2022, the Company entered into a sublease for a portion of its previous headquarters. Although the Company continues to account for its headlease based on the policies described in the section below as a lessee, the Company identified and evaluated for impairment of any long-lived assets associated with this lease by evaluating the recoverability of the asset group. See Note 7 and Note 8 for further impact on the Company’s consolidated financial statements. Leases The Company has entered into agreements to lease certain office spaces. These leases require monthly lease payments that may be subject to annual increases throughout the lease term. Certain of these leases also include renewal options at the election of the Company to renew or extend the lease for an additional three years or terminate. These optional periods have not been considered in the determination of the ROU assets or lease liabilities as the Company did not consider it reasonably certain it would exercise the options. The Company performed evaluations of its contracts and determined it only has operating leases. The lease terms are between 1 and 16. Most of the Company’s lease agreements require payment of certain operating expenses in addition to base rent, such as taxes, insurance and maintenance costs. As allowed under ASC 842, the Company considers these as non-lease components and has elected to exclude these components from the measurement of its lease liabilities. The Company has elected to utilize the following practical expedients available under the transition guidance in ASC 842: • The Company did not reassess whether any expired or existing contracts are or contain leases; • The Company did not reassess the lease classification for any expired or existing leases; and • The Company did not reassess initial direct costs for any existing leases. The Company did not apply the guidance for leases with a term of 12 months of less in accordance with the short-term policy lease policy election available in ASC 842. The Company determines if an arrangement is a lease at inception and recognizes ROU assets and lease liabilities upon commencement. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. The classification of the Company's leases as operating or finance leases along with the initial measurement and recognition of the associated ROU assets and lease liabilities is performed at the lease commencement date. The measurement of lease liabilities is based on the present value of future lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of future lease payments. The incremental borrowing rate is based on a variety of factors to derive a rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment. The ROU asset is based on the measurement of the lease liability and also includes any lease payments made prior to or on lease commencement and excludes lease incentives and initial direct costs. As a Lessor During fiscal year 2022, the Company entered into certain transactions in the capacity of a sub-lessor. In a sublease, the original lease between the lessor and the Company (i.e., the head lease) remains in effect and the Company becomes the intermediate lessor. The Company accounts for the head lease and the sublease as separate contracts. The Company records sublease income within other income (expense), net in the consolidated statement of operations. Accrued partnership liabilities The Company has agreements to fund a portion of partner credit card benefits issued to Members at the end of the respective contract year. As the amount the Company funds during the respective contract year varies based on the total number of Members participating in the credit card partner’s programs at the end of the respective contract year, the determination of accrued partnership liabilities involves estimating enrollments during a contract year based on historical, current, and future trends and data. Income taxes The Company is taxed as a corporation of U.S. federal and state income tax purposes. The Company’s consolidated subsidiary, Alclear, is taxed as a partnership for U.S. federal and state income tax purposes. The provision for income taxes primarily consists of state and local jurisdictions where partnerships (i.e., flow through entities) are taxable. The Company accounts for income taxes in accordance with the liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recorded to recognize the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. The Company reduces deferred tax assets by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred income taxes are measured by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred income taxes is recognized in income in the period that includes the enactment date. Common and treasury stock The Company has four classes of issued and outstanding Common Stock, each measured at a par value of $0.00001. Amounts received by the Company in excess of the par value are recorded within additional-paid in capital. The Company has and will issue shares of its Common Stock as a result of transactions in relation to warrant exercises, exchanges, and vesting of restricted stock units (“RSUs”). Historically, the Company's treasury stock consisted of forfeited restricted stock awards (“RSAs”) that are legally issued shares held by the Company, and is recorded at par value, as well as any shares repurchased under the Company’s share repurchase program that are not retired by the Board. As of December 31, 2023, there are no Restricted Stock Awards outstanding. Treasury stock can be utilized to settle equity-based compensation awards issued by the Company and is excluded from the calculation of the non-controlling interest ownership percentage. . Investments in Equity Securities In accordance with ASC 321 "Investments—Equity Securities,” investments in equity securities in which the Company has no significant influence (generally less than a 20% ownership interest) with readily determinable fair values are accounted for at fair value based on quoted market prices. Equity securities without readily determinable fair values are accounted for either at fair value or using the measurement alternative which is at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. All gains, losses and impairments on investments in equity securities are recognized within other income (expense), net within the consolidated statements of operations. The Company regularly reviews its investments in equity securities not accounted for using the equity method or at fair value for impairment based on a qualitative assessment of a variety of factors. If an equity security is impaired, an impairment loss is recognized in the consolidated statements of operations equal to the difference between the fair value of the investment and its carrying amount. During the years ended December 31, 2023, 2022 and 2021, the Company recognized no impairment charges on its investments in equity securities. Equity-based compensation Under the fair value recognition provisions, the Company measures the equity-based compensation cost at the grant date based on the fair value of the award and recognizes the expense over the requisite service period, subject to the probable achievement of performance conditions, if any. The Company measures the fair value of non-employee equity- based compensation expense (primarily in relation to its issued and outstanding warrants) at the grant date based on the fair value of the award, typically using an option pricing model and recognizes the expense in the same period and in the same manner the entity would have if it had paid cash for the goods or services. The Company records forfeitures as they occur and does not estimate the number of awards expected to be forfeited. Prior to the Reorganization, the fair value of the Company’s members’ equity units underlying the awards was determined by the board of managers with input from management and independent third-party valuation specialists, as there was no public market for the Company’s members’ equity units. The board of managers determined the fair value of the members’ equity units by considering a number of objective and subjective factors including: the valuation of comparable companies, the Company’s operating and financial performance, the lack of liquidity of members’ equity units, transactions in the Company’s Class A and Class B redeemable capital units, and general and industry specific economic outlook, amongst other factors. Post the Reorganization, the fair value of the Company’s Common Stock is based on the ending NYSE closing stock price of the Company’s shares of Class A Common Stock. Basic and diluted earnings (loss) per share The Company applies the two-class method for calculating and presenting earnings (loss) per share by presenting earnings (loss) per share for Class A Common Stock and Class B Common Stock. In applying the two-class method, the Company allocates undistributed earnings equally on a per share basis between Class A Common Stock and Class B Common Stock. The holders of the Class A Common Stock and Class B Common Stock are entitled to participate in earnings equally on a per-share basis, as if all shares of Common Stock were of a single class. Holders of the Class A Common Stock and Class B Common Stock also have equal priority in liquidation and dividend distributions. Shares of Class C Common Stock and Class D Common Stock do not participate in earnings of the Company. As a result, the shares of Class C Common Stock and Class D Common Stock are not considered participating securities and are not included in the weighted-average shares outstanding for purposes of earnings (loss) per share. Basic loss per share of Class A Common Stock and Class B Common Stock is computed by dividing net income (loss) available to Clear Secure, Inc. by the respective weighted-average number of shares of Common Stock outstanding during the period, subject to certain adjustments in accordance to ASC 260. The Company applies the two-class method to calculate earnings per share for Class A Common Stock and Class B Common Stock. Accordingly, the Class A Common Stock and Class B Common Stock share equally in the Company’s net income and losses. Diluted earnings per share of Common Stock is computed by dividing net income attributable to Clear Secure, Inc., adjusted for the assumed exchange of all potentially dilutive instruments for Common Stock, by the weighted-average number of shares of Common Stock outstanding, adjusted to give effect to potentially dilutive securities. Refer to Note 16. Consolidation and Non-Controlling Interest The Company’s policy is to consolidate entities in which it has a controlling financial interest. The Company consolidates: • Voting interest entities (“VOEs”) where the Company holds a majority of the voting interest in such VOEs; and • Variable interest entities (“VIEs”) where the Company is the primary beneficiary. Since the Company is the sole managing member of Alclear, it consolidates the financial results of Alclear. Therefore, the Company reports a non-controlling interest based on Alclear Units held by the members of Alclear on the consolidated balance sheets. Income or loss is attributed to the non-controlling interests based on the weighted average common units outstanding during the period and is presented on the consolidated statements of operations and comprehensive income/(loss). Recently Adopted Accounting Pronouncements Business Combinations As of January 1, 2023, the Company adopted ASU No. 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08). There was no significant impact within the consolidated financial statements as a result of this adoption. Other Recent Accounting Pronouncements Adopted and New Standards and Interpretations Not Yet Effective Other than the items discussed above, there are no standards issued by the FASB and adopted by the Company during 2023 that had a material impact on the Company’s consolidated financial statements. Additionally, other than disclosed below, there are no standards that are not yet effective that are applicable to the Company’s consolidated financial statements. ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”) In November 2023, the FASB issued ASU 2023-07, which requires incremental disclosures about a public entity’s reportable segments but does not change the definition of a segment or the guidance for determining reportable segments. The new guidance requires disclosure of significant segment expenses that are (1) regularly provided to (or easily computed from information regularly provided to) the chief operating decision maker and (2) included in the reported measure of segment profit or loss. The new standard also allows companies to disclose multiple measures of segment profit or loss if those measures are used to assess performance and allocate resources. The guidance is effective for calendar year-end public entities in 2024 and should be adopted retrospectively unless impracticable. Early adoption is permitted. The Company did not early adopt this standard and does not anticipate a material impact of this standard on its consolidated financial statements. ASU No 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”) On December 13, 2023, the FASB issued ASU 2023-08, which provides accounting and disclosure guidance for crypto assets that meet the definition of an intangible asset and certain other criteria. In-scope assets are subsequently measured at fair value with changes recorded in the income statement. The standard requires separate presentation of (1) in-scope crypto assets from other intangible assets and (2) changes in the fair value of those crypto assets. Disclosure of significant crypto asset holdings and an annual reconciliation of the beginning and ending balances of crypto assets are also required. Companies will apply the new guidance by making a cumulative-effect adjustment to the opening balance of retained earnings as of the beginning of the annual period the guidance is adopted. The guidance will be effective for all calendar year-end companies in 2025, including interim periods, with early adoption permitted. The Company did not early adopt this standard and does not anticipate a material impact of this standard on its consolidated financial statements. ASU No 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”) On December 14, 2023, the FASB issued ASU 2023-09, which requires significant additional disclosures about income taxes, primarily focused on the disclosure of income taxes paid and the rate reconciliation table. The new guidance will be applied prospectively (with retrospective application permitted) and is effective for calendar year-end public |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations 2023 Acquisition On September 5, 2023, CLEAR acquired certain assets of Sora ID, Inc., a one-click know your customer (“KYC”) solution which provides technology that is KYC compliant, and is transferable across financial institutions – creating a unique, reusable verification product. The fair value of the purchase consideration was $5,250 including deferred consideration of $1,500 payable in two tranches at 15 and 30 months after closing. The acquisition was accounted for as a business combination. Of the total purchase consideration, $3,950 was recorded as goodwill and $1,300 as acquired intangible assets on the consolidated balance sheets. The intangible assets acquired relate to customer relationships and developed technology with useful lives of 3 and 5 years, respectively. The Company valued the intangible assets using the multi-period excess earnings method and the relief from royalty method, both under the income approach. The goodwill recognized was deductible for tax purposes. The Company’s allocation of purchase price was based upon valuations performed to determine the fair value of the net assets as of the acquisition date and is therefore subject to adjustments for up to one year after the closing date of the acquisition to reflect final valuations. The Company incurred $0.5 million in acquisition related costs, which were expensed as incurred and included in general and administrative expenses in the consolidated statement of operations. The Company also entered into an agreement to provide $4,000 of retention bonuses and $9,000 of post-combination remuneration in cash payments and RSUs upon satisfaction of certain post-closing financial metrics and continuing service requirements. These compensation expenses will be recognized within research and development and general and administrative expenses. The retention bonuses of $4,000 consist of (i) cash payments to be made monthly for the six months following the closing date, and (ii) RSUs that vest in various tranches on June 30, 2024 and December 31, 2024, 2025 and 2026. For the post-combination remuneration, the amount of $9,000 will consist of two equal tranches of RSUs that will vest upon the achievement of specified operating metrics during the twelve month periods ended December 31, 2024 and December 31, 2025, respectively. The Company has not recorded any compensation expense related to the post-combination remuneration for the year ended December 31, 2023, as the performance criteria is not probable. 2021 Acquisitions During the year ended December 31, 2021, the Company completed two acquisitions. Both acquisitions were accounted for as business combinations. The goodwill for both acquisitions represents the future economic benefits expected to arise from other intangible assets acquired that do not qualify for separate recognition, including expected future synergies and technical expertise of the acquired workforce. For the aforementioned acquisitions, the intangible assets acquired primarily relate to existing technology, customer relationships and brand names. The useful life of these intangible assets range from 3 to 12 years. The Company valued the intangible assets using the relief from royalty method and the multi-period excess earnings method, both under the income approach. For both acquisitions, the Company’s allocation of purchase price was based upon valuations performed to determine the fair value of the net assets as of the acquisition date and is therefore subject to adjustments for up to one year after the closing date of the acquisition to reflect final valuations. Refer below for additional details on the acquisitions. Whyline, Inc. On December 29, 2021, Alclear acquired 100% of Whyline, Inc., a provider of virtual queuing and appointment technology that the Company operates under the product name, RESERVE Powered by CLEAR. The cash consideration was $67,500 transferred upon closing, and an estimated contingent consideration of $100. The acquisition was accounted for as a business combination. Of the total purchase consideration, $54,792 was recorded as goodwill, $16,601 as acquired intangible assets, $3,792 as net deferred tax liabilities and $99 as net operating assets on the consolidated balance sheets. None of the goodwill recognized was deductible for tax purposes. During the twelve months ended December 31, 2022, the Company recorded a $984 decrease to goodwill, $2,100 to acquired intangible assets and a $1,116 increase to deferred tax liabilities, all on the consolidated balance sheets. In conjunction with the acquisition, the Company entered into an agreement to issue Class A Shares of Common Stock upon satisfaction of terms related to the contingent consideration and remuneration for post-combination services (collectively referred to as the “Earn-Out”). The first tranche would have been settled upon the achievement of specified operating metrics during the twelve month period ended December 31, 2022. The second tranche would have been settled upon the achievement of specified operating metrics during the twelve month period ended December 31, 2023. The maximum settlement of the contingent consideration was $6,666, which is not subject to the satisfaction of service based criteria. For remuneration for post-combination services, there was a maximum settlement of $13,334 that was based on performance and service based criteria being met; portions of these amounts would have been automatically be forfeited if the employment of specified individuals terminates prior to the end of the Earn-Out period. As none of the performance criteria for the Earn-Out were met, the Company did not record any expense for the years ended December 31, 2023, 2022 and 2021. Atlas Certified, LLC. On December 30, 2021, Alclear acquired certain assets of Atlas Certified LLC, which provides an automated solution to verify professional licenses and certification data across industries by communicating with certifying organizations for on demand, current and trusted data. The fair value of the purchase consideration was $9,000. The acquisition was accounted for as a business combination. Of the total purchase consideration, $5,000 was recorded as goodwill and $4,000 as acquired intangible assets on the consolidated balance sheets. The goodwill recognized was deductible for tax purposes. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company derives substantially all of its revenue from subscriptions to its consumer aviation service, CLEAR Plus. For the years ended December 31, 2023, 2022 and 2021, no individual airport accounted for more than 10% of membership revenue. Revenue by Geography For the years ended December 31, 2023, 2022 and 2021, substantially all of the Company’s revenue was generated in the United States. Contract liabilities and assets The Company’s deferred revenue balance primarily relates to amounts received from customers for subscriptions paid in advance of the services being provided that will be earned within the next twelve months. The following table presents changes in the deferred revenue balance as follows: For the year ended December 31, 2023 2022 2021 Balance as of January 1 $ 283,452 $ 188,563 $ 101,542 Deferral of revenue $ 704,472 532,323 339,064 Recognition of deferred revenue (611,671) (437,434) (252,043) Balance as of December 31 $ 376,253 $ 283,452 $ 188,563 The Company has obligations for refunds and other similar items of $3,727 and $3,837 as of December 31, 2023 and 2022, respectively, recorded within accrued liabilities. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets as of December 31, 2023 and 2022 consist of the following: As of December 31, 2023 2022 Prepaid software licenses $ 10,306 $ 9,362 Coronavirus aid, relief, and economic security act retention credit 1,002 1,002 Prepaid insurance costs 1,946 2,613 Other current assets 8,755 5,120 Total $ 22,009 $ 18,097 The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) is intended to provide economic relief resulting from the COVID-19 pandemic which includes, but is not limited to, employment related costs. The Company recorded a receivable of $2,036 related to submissions made under the CARES Act. During the twelve months ended December 31, 2022, the Company received partial payment on this receivable and expects to receive the remainder of the balance in the next twelve months. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company values its available-for-sale marketable securities and certain liabilities based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, a fair value hierarchy that prioritizes observable and unobservable inputs is used to measure fair value into three broad levels, which are described below: Level 1 – Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in inactive markets or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated with observable market data. Level 3 – Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs to the extent possible. In addition, the Company considers counterparty credit risk in its assessment of fair value. The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The following is a description of the valuation methodologies used for assets and liabilities measured at fair value, which are not considered Level 1 items. Corporate bonds – Valued at the closing price reported on the active market on which the individual securities, all of which have counterparts with high credit ratings, are traded. Commercial paper – Value is based on yields currently available on comparable securities of issuers with similar credit ratings. Money market funds – Valued at the net asset value (“NAV”) of units of a collective fund. The NAV is used as a practical expedient to estimate fair value. This practical expedient is not used when it is determined to be probable that the fund will sell the investment for an amount different than the reported NAV. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The contractual maturities of investments classified as marketable securities are as follows as of December 31, 2023 and 2022: As of December 31, 2023 2022 Due within 1 year $ 439,155 $ 549,213 Due within 2 years 226,042 116,597 Total marketable securities $ 665,197 $ 665,810 The following table represents the amortized cost, gross unrealized gains and losses, and fair market value of the Company’s marketable securities by significant investment category in addition to their fair value level at December 31, 2023 and 2022: For the Year Ended December 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Level Commercial paper $ 42,903 $ 16 $ (24) $ 42,895 2 U.S. Treasuries 324,274 2,896 (257) 326,913 1 Corporate bonds 294,540 969 (564) 294,945 2 Money market funds measured at NAV (a) 444 — — 444 N/A Total marketable securities $ 662,161 $ 3,881 $ (845) $ 665,197 For the Year Ended December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Level Commercial paper $ 69,762 $ 4 $ (352) $ 69,414 2 U.S. Treasuries 365,424 511 (1,448) 364,487 1 Corporate bonds 218,980 9 (1,310) 217,679 2 Money market funds measured at NAV (a) 14,230 — — 14,230 N/A Total marketable securities $ 668,396 $ 524 $ (3,110) $ 665,810 (a) Money market funds that were measured at NAV per share (or its equivalent) have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the line items presented in the consolidated balance sheets. |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net Property and equipment as of December 31, 2023 and 2022 consist of the following: Depreciation Period in Years As of December 31, 2023 2022 Internally developed software 3-5 $ 62,306 $ 53,788 Acquired software 3 6,539 6,536 Equipment 5 33,624 29,651 Leasehold improvements 1-15 9,113 7,731 Furniture and fixtures 5 12,709 1,608 Construction in progress 8,672 14,102 Total property and equipment, cost 132,963 113,416 Less: accumulated depreciation (70,352) (55,492) Property and equipment, net $ 62,611 $ 57,924 Depreciation and amortization expense related to property and equipment for the years ended December 31, 2023, 2022 and 2021 was approximately $18,215, $15,524 and $12,304 respectively. During the years ended December 31, 2023 and 2022, $8,517 and $13,000 was capitalized in connection with internally developed software inclusive of $1,424 and none of equity-based compensation, respectively. Amortization expense on internally developed software was $8,307, $7,676 and $5,416 for the years ended December 31, 2023, 2022 and 2021 respectively. Purchases of property and equipment with unpaid costs in accounts payable and accrued liabilities as of December 31, 2023 were $648 and $173, respectively and $1,428 and none as of December 31, 2022, respectively. During the years ended December 31, 2023, 2022 and 2021, the Company recognized impairment charges of $3,469, $2,047, and $4,567 on property and equipment. During the year ended December 31, 2023, these charges related to capitalized software and hardware for which the Company discontinued product development. During the year ended December 31, 2022, these charges were as a result of lease-related transactions discussed in Note 8 and because the Company decided to cancel certain development projects due to the change in market demand as a result of the COVID-19 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases Below is a reconciliation of the amounts reported on the consolidated balance sheets with respect to the Company’s operating leases: December 31, 2024 $ 14,959 2025 14,976 2026 14,766 2027 14,880 2028 15,430 Thereafter 132,669 Total future operating lease payments 207,680 Less: imputed interest (80,298) Total present value of lease payments 127,382 Lease liabilities, current 5,727 Lease liabilities, non-current 121,655 Total lease liabilities $ 127,382 In September 2022, the Company modified an existing lease agreement to terminate in March 2023. As a result, the Company reduced its lease liability by $5,988 and recognized the remeasurement as an adjustment to the corresponding ROU asset for the same amount. In October 2022, the Company modified a lease agreement and simultaneously entered into a sublease agreement whereby the Company will continue to be a lessee under the original operating lease but will act as a sublessor. Additionally, during the year ended December 31, 2023, the Company entered into another sublease agreement whereby the Company continues to be a lessee under the original operating lease but will act as a sublessor. As a result, during year ended December 31, 2023 and 2022, the Company recorded $1,506 and $1,021, respectively, of impairment to its right of use assets within general and administrative in the consolidated statements of operations. For the years ended December 31, 2023, 2022 and 2021, the Company recorded $1,557, $130 and none, respectively, of sublease income within other income (expense), net within the consolidated statements of operations. See Note 7 for further impact on the Company’s consolidated financial statements as a result of aforementioned transactions. In November 2022, the Company commenced recognition on its operating lease for real estate space to house the Company’s corporate headquarters. The Company determined the commencement date based on the date on which the landlord delivered possession of the premises with certain agreed upon completed improvements to be made by the landlord. The term of the lease is fifteen years after the date the rent obligations begin, with an option to renew for one 5-year period or 10-year period at Fair Market Value (as defined in the lease agreement) by providing the landlord with eighteen months’ notice and meeting certain other requirements. The lease term expires on April 1, 2038. The Company recorded an increase to ROU asset and lease liability of $107,683 on its consolidated balance sheets on the date of commencement during the fourth quarter of 2022. The weighted-average incremental borrowing rate applied to lease liabilities at the date of adoption was 4.3%. As of December 31, 2023, the weighted-average incremental borrowing rate was 7.59%. Additionally, the weighted-average remaining lease term as of December 31, 2023 was 13.06 years. Total operating lease expense recognized on the consolidated statements of operations for the years ended December 31, 2023, 2022 and 2021 was $16,021, $6,306, and $4,288, respectively. Cash paid for amounts included in the measurement of operating lease liabilities for the years ended December 31, 2023 and 2022was $12,322 and $4,893, respectively. |
Intangible Assets, net
Intangible Assets, net | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, net | Intangible Assets, net See below for Intangible assets, net as of December 31, 2023 and 2022: Weighted Average Useful Life in Years As of December 31, 2023 2022 Patents 20 $ 3,312 $ 2,643 Acquired intangibles - technology 3 5,130 4,300 Acquired intangibles - customer relationships 10.8 18,370 17,900 Acquired intangibles - brand names 5 500 500 Other indefinite lived intangible assets 310 310 Total intangible assets, cost 27,622 25,653 Less: accumulated amortization (6,797) (3,361) Intangible assets, net $ 20,825 $ 22,292 Amortization expense of intangible assets was $3,434, $3,268 and $54 for the years ended December 31, 2023, 2022 and 2021 respectively. |
Restricted Cash
Restricted Cash | 12 Months Ended |
Dec. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash | Restricted Cash As of December 31, 2023 and 2022, the Company maintained bank deposits of $4,501 and $7,708, respectively, which were primarily pledged as collateral for long-term letters of credit issued in favor of airports, in connection with the Company’s obligations under revenue share agreements. As of December 31, 2022, the Company also had a cash secured letter of credit in place for the amount of $6,099 in relation to the corporate headquarters lease agreement entered into in December 2021 that commenced in November 2022. In April 2023, the Company issued a standby letter of credit under the Credit Agreement (as defined in Note 21) to replace the previously issued cash secured letter of credit and reduced the restricted cash balance to none. In addition, the Company had a $16,138 restricted cash account for a letter of credit with a credit card company as a reserve against potential future refunds and chargebacks as of December 31, 2022. In June 2023, the Company issued a standby letter of credit under the Credit Agreement to replace the previously issued cash secured letter of credit and reduced the restricted cash balance to none. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2023 | |
Other Assets, Noncurrent [Abstract] | |
Other Assets | Other Assets Other assets as of December 31, 2023 and 2022 consist of the following: As of December 31, 2023 2022 Security deposits $ 273 $ 251 Loan fees 198 70 Certificates of deposit 459 459 Strategic investment 6,000 — Other long-term assets 1,477 2,289 Total $ 8,407 $ 3,069 In March 2023, the Company made a strategic investment in equity securities in a privately held company. As the investment does not have a readily determinable fair value, the Company elected the measurement alternative to record the investment at initial cost less impairments, if any, adjusted for observable changes in fair value for identical or similar investments of the same issuer. Adjustments resulting from these fluctuations are recorded within other income (expense) on the Company’s consolidated statements of operations. During the year ended December 31, 2023, there were no adjustments recorded by the Company in relation to its strategic investment. |
Accrued Liabilities and Other L
Accrued Liabilities and Other Long Term Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities and Other Long Term Liabilities | Accrued Liabilities and Other Long Term Liabilities Accrued liabilities As of December 31, 2023 2022 Accrued compensation and benefits $ 18,690 $ 17,362 Accrued partnership liabilities 96,284 71,195 Lease liability 5,727 4,963 Other accrued liabilities 43,314 12,550 Total $ 164,015 $ 106,070 The Company’s accrued partnership liabilities primarily relates to estimated amounts related to a portion of merchant credit card benefits that it expects to fund. Other accrued liabilities is inclusive of $14,422 and $8,140 third party vendor accruals as of December 31, 2023 and 2022, respectively. Other long term liabilities As of December 31, 2023 2022 Deferred tax liability $ 1,711 $ 2,435 Lease liability $ 121,655 $ 125,146 Other long term liabilities 370 1,542 Total $ 123,736 $ 129,123 |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Warrants | Warrants Historically, Alclear issued warrants for their holders to purchase shares of Class B redeemable capital units. These warrants were generally subject to performance-based vesting criteria. The Company recognizes the expense for those warrants expected to vest on a straight-line basis over the requisite service period of the warrants, which generally ranges from three months to six years. For warrants that vest upon issuance, the entire cost is expensed immediately. Prior to the Reorganization, in 2021, Alclear issued the following warrants for Class B redeemable capital units: Number of Units Weighted-average exercise price Liability awards 1,000 $ 1.00 Equity awards 114,797 $ 194.85 The fair values of warrants granted in 2021 were estimated based on the Black-Scholes option pricing model using the weighted-average significant unobservable inputs (Level 3 inputs) as follows: 2021 Risk-free interest rate 0.36% - 0.92% Exercise price $1.00 - $290.00 Expected term 3 - 5 years Expected volatility 45.0% - 50.8% The 114,797 equity classified warrants issued during 2021 had a weighted average grant date fair value per warrant of $287.55. Prior to the Reorganization, certain warrant holders exercised their warrants for Class B redeemable capital units as follows: Number of Warrants Weighted-average exercise price Liability awards 70,000 $ 36.74 Equity awards 3,400 $ 1.00 On the date of exercise, the Company recognized a fair value adjustment to the outstanding liability classified warrants which was estimated based on a Black-Scholes option pricing model using the weighted-average significant unobservable inputs (Level 3 inputs) as follows: 2021 Risk-free interest rate 0.16% - 0.19% Exercise price $1.00 - $36.74 Expected term 2 - 3 years Expected volatility 35.1% - 45.0% As part of the Reorganization, the remaining Alclear warrants were either exchanged for Clear Secure, Inc. warrants representing the right to receive Class A Common Stock or the right to receive Alclear Units. The exchange was completed at an approximate 19.98 per unit ratio, using a cashless exercise conversion method. The Clear Secure, Inc. warrants are subject to the same vesting terms as applied to Alclear warrants and maintained the same fair value immediately before and after the exchange of the warrants. As such, there was no additional expense that was recorded due to the exchange as the Company determined there was no modification. Subsequent to the Reorganization, the Company had 7,674,502 warrants exercisable for Class A Common Stock primarily held by United Airlines and 968,043 warrants exercisable for Alclear Units. Subsequent to the Reorganization, there were no outstanding warrants classified as liability awards. In December 2021, United Airlines exercised 2,000,000 vested warrants with an intrinsic value of $54,120. In January 2022, the same warrant holder exercised 1,207,932 vested warrants with an intrinsic value of $32,457. In May 2022, the Company extended the term for existing United Airlines warrants that would continue to be exercisable for Class A Common Stock. The Company concluded that the extension was a modification and accounted for these instruments as equity awards under ASC 718. As the performance of the remaining vesting conditions was not probable before and after the date of modification, no amount was recorded related to the modification. Due to the short duration to maturity and the nominal exercise price, the fair value of these warrants approximated the Class A Common Stock share price on the modification date. In September 2022, United Airlines also exercised 534,655 vested warrants with an intrinsic value of $12,757. These exercises resulted in the Company issuing shares of its Class A Common Stock and were completed in a cashless transaction. Additionally, in October 2022, 2,138,620 warrants granted to United Airlines became probable of vesting and were exercised with an intrinsic value of $51,241 for Class A Common Stock in a cashless exercise. The 534,655 final remaining United Airlines warrants became probable of vesting in the fourth quarter of 2022 and were subsequently vested and exercised in January 2023. As a result, the Company recorded $76,834 of expense within general and administrative expense in the consolidated statements of operations for the twelve months ended December 31, 2022. In January 2023, the Company recognized $1,038 of the remaining expense related to the 534,655 fully vested United Airlines warrants. These warrants were exercised for Class A Common Stock in a cashless exercise with an intrinsic value of $16,136. The warrant agreement with United Airlines expired in the first quarter of 2023. In July 2022, the Company cancelled 515,974 outstanding warrants that could have been exercisable for Class A Common Stock. These warrants were not considered as probable to vest as of the cancellation date. In August 2022, the Company issued 108,611 replacement warrants exercisable for Class A Common Stock to certain warrant holders whose warrants expired in June 2022. Due to the short duration to maturity and the nominal exercise price, the fair value of these warrants approximated the Class A Common Stock share price on the grant date. The Company did not recognize expense related to these warrants as the performance of the awards was not considered probable. These warrants expired on December 31, 2022. In December 2023, the remaining warrants exercisable for Class A Common Stock expired. In November 2022, certain warrant holders exercised 194,109 warrants exercisable for Alclear Units for an exercise price of $0.01. As a result, the Company net issued 194,043 shares of Class C Common Stock and the same number of Alclear Units. The following warrants remained outstanding as of December 31, 2023: Number of Warrants Weighted-Average Exercise Price Weighted average Remaining Contractual Term (years) Exercisable for Alclear Units 773,934 $ 0.01 0.71 years All outstanding warrants are subject to certain performance-based vesting criteria which the Company evaluates at each reporting period to determine the likelihood of achievement. Based on the likelihood of achievement of the vesting criteria, the Company’s estimated unrecognized warrant expense is none as of December 31, 2023. The Company recorded the following within general and administrative expense in the consolidated statements of operations: For the year ended December 31, 2023 2022 2021 Liability awards $ — $ — $ 12,796 Equity awards 623 77,033 4,813 Total $ 623 $ 77,033 $ 17,609 |
Stockholder_s Equity
Stockholder’s Equity | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholder's Equity | Stockholders’ Equity Share Repurchases On May 13, 2022, the Company's Board authorized a share repurchase program pursuant to which the Company may purchase up to $100,000 of its Class A Common Stock. On November 8, 2023, the Company announced that its Board authorized a $100,000 increase to its existing Class A Common Stock share repurchase program. Under the repurchase program, the Company may purchase shares of its Class A Common Stock on a discretionary basis from time to time through open market repurchases, privately negotiated transactions, or other means, including through Rule 10b5-1 trading plans. The timing and actual number of shares repurchased will be determined by management depending on a variety of factors, including stock price, trading volume, market conditions, and other general business considerations. The repurchase program has no expiration date and may be modified, suspended, or terminated at any time. During the year ended December 31, 2023, the Company repurchased and retired 3,112,694 shares of its Class A Common Stock for $69,673 at an average price of $22.36. As of December 31, 2023, $125,424 remains available under the repurchase authorization. The Company has elected to account for the repurchase price paid in excess of par value in additional paid in capital within the consolidated financial statements. Quarterly Dividend On August 2, 2023, the Company announced that its Board adopted a dividend policy (the "Dividend Policy") of paying a quarterly cash dividend to holders of Class A Common Stock and Class B Common Stock. The amount of such quarterly dividends is subject to approval of the actual amount by the Board at the time of such dividend declaration. It is expected that the dividends will be funded by proportionate cash distributions by Alclear to all of its members as of the applicable record date, including holders of non-controlling interests in Alclear and the Company. The declaration of cash dividends in the future is subject to final determination each quarter by the Board based on a number of factors, including the Company’s results of operations, cash flows, financial position and capital requirements, as well as general business conditions, legal, tax and regulatory restrictions and other factors the Board deems relevant at the time it determines to declare such dividends. On August 2, 2023, the Company announced that its Board declared a quarterly dividend of $0.07 per share, payable on August 18, 2023 to holders of record of the Class A Common Stock and Class B Common Stock as of the close of business on August 11, 2023. On November 8, 2023, the Company announced that its Board declared a quarterly dividend of $0.09 per share, payable on November 22, 2023 to holders of record of Class A Common Stock and Class B Common Stock as of the close of business on November 16, 2023. Special Dividends On May 9, 2023, the Company announced that a special committee of its Board declared a special cash dividend in the amount of $0.20 per share payable on May 25, 2023 to holders of record of the Class A Common Stock and Class B Common Stock as of the close of business on May 18, 2023. The Company funded the May payments of the special cash dividend from its pro rata share of tax distributions made by Alclear. In addition, the Board declared a special cash dividend of $0.55 per share, payable on November 22, 2023 to holders of record of Class A Common Stock and Class B Common Stock as of the close of business on November 16, 2023. The Company funded the November payments of the special cash dividend by proportionate cash distributions by Alclear to all of its members as of the applicable record date, including holders of non-controlling interests in Alclear and the Company. Non-Controlling Interest The non-controlling interest balance represents the economic interest in Alclear held by the founders and members of Alclear. The following table summarizes the ownership of common units in Alclear as of December 31, 2023: Alclear Units Ownership Percentage Alclear Units held by Alclear post-reorganization members (other than the Co-Founders and Clear Secure, Inc.) 32,234,914 21.39 % Alclear Units held by the Co-Founders 25,796,690 17.12 % Total 58,031,604 38.51 % The non-controlling interest holders have the right to exchange Alclear Units, together with a corresponding number of shares of Class C Common Stock for Class A Common Stock or Class D Common Stock for Class B Common Stock. As such, exchanges by non-controlling interest holders will result in a change in ownership and reduce the amount recorded as non-controlling interest and increase Class A Common Stock or B Common Stock and additional paid-in-capital for the Company. Upon the issuance of shares Class A Common Stock or B Common Stock, Alclear issues a proportionate number of Alclear Units to the Company in conjunction with the terms of the Reorganization. During the year ended December 31, 2023, certain non-controlling interest holders exchanged their Alclear Units and corresponding shares of Class C Common Stock for shares of the Company's Class A Common Stock, as applicable. As a result, the Company issued 6,056,050 shares of Class A Common Stock. The non-controlling interest ownership percentage changed from 42.02% as of December 31, 2022 to 38.51% as of December 31, 2023. The primary driver of this decrease was attributable to the issuance of shares of Class A Common Stock, due to the exercise of warrants and exchanges described above . |
Incentive Plans
Incentive Plans | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Incentive Plans | Incentive Plans 2021 Omnibus Incentive Plan The Clear Secure, Inc 2021 Omnibus Incentive Plan (“2021 Omnibus Incentive Plan”) became effective on June 29, 2021 to provide grants of equity-based awards to the employees, consultants, and directors of the Company and its affiliates. The 2021 Omnibus Incentive Plan authorized the issuance of up to 20,000,000 shares of Class A Common Stock as of the date of the Reorganization. The 2021 Omnibus Incentive Plan authorized the issuance of shares pursuant to the grant, settlement or exercise of RSUs, RSAs, stock options and other share-based awards. Beginning with the first business day of each calendar year beginning in 2022 through 2031, the number of shares available will increase in an amount up to 5% of the total number of common shares outstanding (assuming exchange and/or conversion of all classes of common shares into Class A Common Stock) as of the last day of the immediately preceding year or a lesser amount approved by our Board or its compensation committee, so long as the total share reserve available for future awards at the time is not more than 12% of common shares outstanding (assuming exchange and/or conversion of all classes of common shares into Class A Common Stock). As a result of this provision, in March 2022, the Company filed a Registration Statement on Form S-8 registering the issuance of an additional 5,693,082 shares of Class A Common Stock that are reserved for issuance in respect of awards that may be granted under the 2021 Omnibus Incentive Plan. For fiscal year 2023, the Compensation Committee approved no increase in the 2021 Omnibus Incentive Plan, which such increase would have been effective on the first business day of 2023. Effective July 1, 2022, the Company amended the vesting schedule of existing time-based restricted stock units that cliff-vest after a three-year period to vest ratably over the same three-year period. This amendment did not impact the Company's consolidated statements of operations for the year ended December 31, 2022. Although permitted by the Company’s 2021 Omnibus Plan, the Company did not withhold any taxes in connection with the delivery of RSUs during 2021. The Company withheld taxes in connection with the net settlement of vested RSUs during the years ended December 31, 2023 and 2022. Restricted Stock Awards In accordance with the Reorganization Agreement, Alclear Holdings’ profit units with service vesting conditions were substituted with RSAs, which are subject to the same vesting terms as applied to Alclear’s profit units; each also maintained the same fair value immediately before and after the exchange of the award. As such, there was no additional compensation expense that was recorded as a result of the substitution of the awards. The RSAs are subject to service-based vesting conditions and will vest on a specified date, provided the applicable service period, generally three years, has been satisfied. The Company determines the fair value of each RSA based on the grant date and records the expense over the vesting period or requisite service period. The following is a summary of activity related to the RSAs associated with compensation arrangements during year ended December 31, 2023: RSA - Class A Common Stock Weighted Average Unvested balance as of January 1, 2023 236,279 $ 0.87 Granted — — Vested (233,200) 0.87 Forfeited (3,079) 0.87 Unvested balance as of December 31, 2023 — $ — Below is the compensation expense (credit) related to the RSAs: For the year ended December 31, 2023 2022 2021 Cost of direct salaries and benefits $ — $ 8 $ (5) Research and development 4 106 230 Sales and marketing — 1 (33) General and administrative 6 133 1,078 Total $ 10 $ 248 $ 1,270 As of December 31, 2023, estimated unrecognized expense for RSAs was none. Restricted Stock Units The RSUs are subject to both service-based and, in some cases, business performance-based vesting conditions. RSUs will vest on a specified date, provided the applicable service (generally three years) and, if applicable, business performance condition, have been satisfied. The RSUs with performance conditions issued are also subject to long-term revenue and cash-basis earnings performance hurdles. The Company determines the fair value of each RSU based on the grant date and records the expense over the vesting period or requisite service period and, if applicable, the performance conditions are probable of being met. The following is a summary of activity related to the RSUs associated with compensation arrangements during years ended December 31, 2023: RSUs Weighted Average Unvested balance as of January 1, 2023 4,125,596 $ 27.88 Granted 2,822,344 23.43 Vested (846,234) 25.47 Forfeited (2,203,749) 29.18 Unvested balance as of December 31, 2023 3,897,957 $ 24.85 Below is the compensation expense recognized related to the RSUs: For the year ended December 31, 2023 2022 2021 Cost of direct salaries and benefits $ 233 $ 349 $ 321 Research and development 5,968 17,464 6,488 Sales and marketing 614 565 237 General and administrative 10,030 16,536 9,978 Total $ 16,845 $ 34,914 $ 17,024 As of December 31, 2023, estimated unrecognized compensation expense for RSUs that are probable of vesting was $59,668 with such expense expected to be recognized over a weighted-average period of approximately 2.12 years. Founder PSUs During June 2021, the Company established a long-term incentive compensation plan for the co-founders, which consists of performance restricted stock-unit awards (the “Founder PSUs”), that will be settled in shares of Class A Common Stock pursuant to the 2021 Omnibus Incentive Plan, subject to the satisfaction of both service and market based vesting conditions. The grant date fair value for the Founder PSUs was determined by a Monte Carlo simulation and discounted by the risk-free rate on the grant date and an expected volatility of 45%. The Founder PSUs are estimated to vest over a five year period, based on the achievement of specified price hurdles of the Company’s Class A Common Stock. The specified price hurdles of the Company’s Class A Common Stock will be measured on the volume-weighted average price per share for the trailing days during any 180 day period that ends within the applicable measurement period. In June 2021, the Company granted 4,208,617 Founder PSUs at a weighted average grant date fair value of $16.54. The Company records the compensation expense related to these awards within general and administrative in the consolidated statements of operations. As of December 31, 2023, estimated unrecognized expense for Founder PSUs was $10,100 with such expense expected to be recognized over a weighted-average period of approximately 0.59 years. Below is a summary of total compensation expense recorded in relation to the Company’s incentive plans, excluding additional expense related to repurchases: For the year ended December 31, 2023 2022 2021 RSAs $ 10 $ 248 $ 1,270 RSUs 16,845 34,914 17,024 Founder PSUs 19,815 26,301 13,403 Total $ 36,670 $ 61,463 $ 31,697 For the year ended December 31, 2023 2022 2021 Cost of direct salaries and benefits $ 233 $ 357 $ 317 Research and development $ 5,974 $ 17,570 $ 6,718 Sales and marketing 614 566 203 General and administrative 29,849 42,970 24,459 Total $ 36,670 $ 61,463 $ 31,697 |
Net Income (Loss) per Common Sh
Net Income (Loss) per Common Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Common Share | Net Income (Loss) per Common Share As described in Note 1, on June 29, 2021, Alclear's operating agreement was amended and restated to, among other things, (i) provide for a new single class of common membership interests, the Alclear Units, and (ii) exchange all of the then-existing membership interests of the original Alclear equity owners for Alclear Units. Basic and diluted net income (loss) per share of Class A Common Stock and Class B Common Stock is applicable only for periods after June 29, 2021, post the Reorganization, when the Company had outstanding shares of Class A Common Stock and Class B Common Stock. Shares of the Company’s Class C and Class D Common Stock do not participate in the earnings or losses of the Company and are therefore not participating securities. As such, separate presentation of basic and diluted earnings (loss) per share of Class C Common Stock and Class D Common Stock under the two-class method has not been presented. Each share of Class C Common Stock (together with a corresponding Alclear Unit) is exchangeable for one share of Class A Common Stock and each share of Class D Common Stock (together with a corresponding Alclear Unit) is exchangeable for one share of Class B Common Stock. Shares classified as treasury stock within the consolidated balance sheets are excluded from the calculation of basic net income (loss) per share. Additionally, the Company assumes the exercise for certain vested warrants exercisable for little to no consideration in its basic calculation to the extent applicable. Below is the calculation of basic and diluted net income (loss) per common share: Year Ended December 31, 2023 Class A Class B Basic: Net income attributable to Clear Secure, Inc. $ 27,825 $ 282 Weighted-average number of shares outstanding, basic 89,695,439 907,234 Net income per common share, basic: $ 0.31 $ 0.31 Diluted: Net income attributable to Clear Secure, Inc. used to calculate net income per common share, basic $ 27,825 $ 282 Add: reallocation of net income (loss) to Clear Secure, Inc. to reflect dilutive impact (25) (4) Net income (loss) attributable to Clear Secure, Inc. used to calculate net loss per common share, diluted 27,800 278 Weighted-average number of shares outstanding used to calculate net income per common share, basic 89,695,439 907,234 Effect of dilutive shares 1,014,372 — Weighted-average number of shares outstanding, diluted 90,709,811 907,234 Net income per common share, diluted: $ 0.31 $ 0.31 Year Ended December 31, 2022 Class A Class B Basic: Net loss attributable to Clear Secure, Inc. $ (64,768) $ (805) Weighted-average number of shares outstanding, basic 80,824,548 1,007,686 Add: weighted-average number of shares from the assumed exercise of certain warrants 292,636 — Weighted-average number of shares outstanding used to calculate net loss per common share, basic 81,117,184 1,007,686 Net loss per common share, basic: $ (0.80) $ (0.80) Diluted: Net loss attributable to Clear Secure, Inc. used to calculate net loss per common share, basic $ (64,768) $ (805) Weighted-average number of shares outstanding used to calculate net loss per common share, basic 81,117,184 1,007,686 Effect of dilutive shares — — Weighted-average number of shares outstanding, diluted 81,117,184 1,007,686 Net loss per common share, diluted: $ (0.80) $ (0.80) Year Ended December 31, 2021 Class A Class B Basic: Net loss attributable to Clear Secure, Inc. $ (35,590) $ (492) Add: reallocation of net loss attributable to non-controlling interests from the assumed exercise of certain warrants (534) (7) Net loss attributable to Clear Secure, Inc. used to calculate net loss per common share, basic (36,124) (499) Weighted-average number of shares outstanding, basic 72,537,156 1,042,234 Add: weighted-average number of shares from the assumed exercise of certain warrants 2,978,086 — Weighted-average number of shares outstanding used to calculate net loss per common share, basic 75,515,242 1,042,234 Net loss per common share, basic: $ (0.48) $ (0.48) Diluted: Net loss attributable to Clear Secure, Inc. used to calculate net loss per common share, basic $ (36,124) $ (499) Weighted-average number of shares outstanding used to calculate net loss per common share, basic 75,515,242 1,042,234 Effect of dilutive shares — — Weighted-average number of shares outstanding, diluted 75,515,242 1,042,234 Net loss per common share, diluted: $ (0.48) $ (0.48) After evaluating the potential dilutive effect under the if-converted method, the outstanding Alclear Units for the assumed exchange of non-controlling interests were determined to be anti-dilutive and thus were excluded from the computation of diluted earnings per share. The following tables present potentially dilutive securities excluded from the computations of diluted earnings (loss) per share of Class A and Class B common stock for the years ended December 31, 2023, 2022 and 2021 : Year Ended December 31, 2023 Class A Class B Exchangeable Alclear Units 32,234,914 25,796,690 RSA’s — — RSU’s 1,109,769 — Total 33,344,683 25,796,690 Year Ended December 31, 2022 Class A Class B Exchangeable Alclear Units 38,290,964 25,796,690 RSA’s 236,279 — RSU’s 3,450,881 — Total 41,978,124 25,796,690 Year Ended December 31, 2021 Class A Class B Exchangeable Alclear Units 44,598,167 26,709,821 RSA’s 1,429,883 — RSU’s 2,603,389 — Total 48,631,439 26,709,821 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes As a result of the IPO and Reorganization, the Company became the sole managing member of Alclear, which is treated as a partnership for U.S. federal and most applicable state and local income tax purposes. As a partnership, Alclear is generally not subject to U.S. federal and most state and local income taxes. Any taxable income or loss generated by Alclear is passed through to and included in the taxable income or loss of its members, including the Company, on a pro rata basis. The Company is subject to U.S. federal income taxes, in addition to state and local income taxes with respect to our allocable share of any taxable income or loss of Alclear, as well as any stand-alone income or loss generated by the Company. The Company is also subject to income taxes in Israel, Argentina, and Mexico. The components of income tax expense (benefit) are as follows: For the year ended December 31, 2023 2022 2021 Current Federal $ 163 $ 80 $ — State 1,005 266 207 Foreign 278 63 26 Total current income taxes 1,446 $ 409 $ 233 Deferred Federal (747) (822) — State 25 (1,649) — Foreign — — — Total deferred income taxes (722) (2,471) — Income tax expense (benefit) $ 724 $ (2,062) $ 233 A reconciliation of the U.S. statutory income tax rate to the Company’s effective tax rate is as follows: For the year ended December 31, 2023 2022 2021 Tax expense (benefit) at U.S. statutory rate 21.0 % 21.0 % 21.0 % Effect of flow-through entity 0.0 % 0.0 % (9.4) % State taxes 1.1 % (0.6) % 2.0 % Remeasurement of state tax 1.0 % 1.7 % 0.0 % Federal uncertain tax benefit 1.2 % 0.0 % 0.0 % Permanent differences 0.1 % (0.2) % 0.0 % Non-controlling interest (9.5) % (8.9) % (5.4) % Change in valuation allowance (10.7) % (11.5) % (8.0) % R&D Credit (3.1) % 0.7 % 0.0 % Other 0.3 % (0.5) % (0.4) % Effective income tax rate 1.4 % 1.7 % (0.2) % The Company’s effective tax rate was 1.4%, 1.7% and (0.2%) for December 31, 2023, 2022 and 2021, respectively. Significant changes in the reconciling items for the year ended December 31, 2023, compared to the year ended December 31, 2022, included non-controlling interest, state taxes, uncertain tax position, R&D credit, and change in valuation allowance. The Company paid $1,632 in estimated income taxes for the years ended December 31, 2023. The components of the deferred tax assets and liabilities are as follows: As of December 31, Deferred Taxes 2023 2022 Lease liability $ 506 $ 393 R&D credit 2,591 1,676 Accrued expenses 9 2 Stock-based compensation 446 293 Investment in partnership 214,711 187,969 Other 735 194 Net operating loss 13,357 16,870 Gross deferred tax assets 232,355 207,397 Depreciation and amortization (3,531) (3,520) Prepaid expenses and other (49) (39) ROU asset (460) (373) Gross deferred tax liabilities (4,040) (3,932) Deferred income tax assets before valuation allowance 228,315 203,465 Valuation allowance (230,026) (205,900) Net deferred tax asset (liability) $ (1,711) $ (2,435) The increase in the Company’s valuation allowance in 2023 and 2022 was primarily due to the increase in the Company’s investment in the partnership. The Company determined that it was not more likely than not that the benefits of these items will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. The estimation of future taxable income and our ability to utilize deferred tax assets can significantly change based on future events. The table below summarizes the significant movement year over year in the Company’s valuation allowance: As of December 31, 2023 2022 Balance as of January 1 $ 205,900 $ 176,381 Additions to valuation allowance through income tax expense — 265 Additions to valuation allowance through equity 27,092 29,270 Additions to valuation allowance through goodwill — (16) Release of valuation allowance through income tax expense (2,966) — Balance as of December 31 $ 230,026 $ 205,900 As of December 31, 2023, the Company had federal income tax net operating loss (NOL) carryforwards of $54,673 which will carryforward indefinitely. The Company had foreign income tax NOL carryforwards of $337, which, if unused, will expire in years 2023 through 2033. The Company had state income tax NOL carryforwards of $29,445, $19,587 of which, if unused, will expire in years 2034 through 2041. Future changes in the ownership of the Company may limit the future utilization of the NOL and tax credit carryforwards, as defined by the federal, foreign, state, and local tax codes (the “Code”). Accordingly, utilization of the net operating loss carryforwards and credits will be subject to the annual limitation provided by the Code and similar state provisions and may result in the expiration of the net operating losses and credits before utilization. The Company accrues liabilities for uncertain tax positions that are not more likely than not to be sustained upon examination. Interest and penalties related to uncertain tax positions are recorded in accrued liabilities in the accompanying consolidated balance sheets. The following is a tabular reconciliation of the total amounts of unrecognized tax benefit: For the year-ended December 31, 2023 2022 2021 Balance as of January 1 $ 437 $ 87 $ — Gross increases - tax positions in prior period 467 350 87 Gross decreases - tax positions in prior period — — Gross increases - tax positions in current period 232 — — Settlement — — Lapse of statute of limitations — — — Balance as of December 31 $ 1,136 $ 437 $ 87 The Company is subject to income taxes in the U.S., Israel, Argentina, and Mexico. The statute of limitations for adjustments to our historic tax obligations will vary from jurisdiction to jurisdiction. The tax years for U.S. federal and state income tax purposes open for examination are for the years ending December 31, 2019 and forward. The tax years for foreign jurisdictions open for examination are for the years ending December 31, 2018 and forward. The Company is asserting permanent reinvestment of all accumulated undistributed earnings of its foreign subsidiaries as of December 31, 2023. Due to the timing and circumstances of repatriation of such earnings, if any, it is not practicable to determine the unrecognized deferred tax liability relating to such amounts. Recent U.S. Tax Legislation On August 16, 2022, President Biden signed into law the Inflation Reduction Act. The Inflation Reduction Act creates a 15% corporate alternative minimum tax on profit of corporations whose average annual adjusted financial statement income for any consecutive three-tax-year period preceding the tax year exceeds $1 billion and is effective for tax years beginning after December 31, 2022. The Company does not currently expect this provision to have a material impact on the consolidated financial statements. Additionally, the Inflation Reduction Act creates an excise tax of 1% on the fair market value of net stock repurchases made afte r December 31, 2022. During the year ended December 31, 2023 , the Company repurchased 3,112,694 shares of its Class A Common Stock. However, there was no excise tax as of December 31, 2023 because the stock issuances were in excess of repurchases. Tax Receivable Agreement As stated in Note 1, in connection with the IPO, the Company entered into the TRA, which generally provides for payment by the Company to the TRA Holders of 85% of the net cash savings, if any, in U.S. federal, state and local income tax and franchise tax that Clear Secure, Inc. actually realizes or is deemed to realize as a result of (i) any increase in tax basis in Alclear’s assets resulting from (a) exchanges by Alclear Members (or their transferees or other assignees) of Alclear Units (along with the corresponding shares of our Class C Common Stock or Class D Common Stock, as applicable) for shares of the Company’s Class A Common Stock or Class B Common Stock, as applicable, and purchases of Alclear Units and corresponding shares of Class C Common Stock or Class D Common Stock, as the case may be, from the Alclear Members (or their transferees or other assignees) or (b) payments under the TRA, and (ii) tax benefits related to imputed interest arising as a result of payments made under the TRA. The Company will retain the benefit of the remaining 15% of these net cash savings. The TRA liability is calculated by determining the tax basis subject to TRA (“tax basis”) and applying a blended tax rate to the basis differences and calculating the iterative impact. The blended tax rate consists of the U.S. federal income tax rate and an assumed combined state and local income tax rate driven by the apportionment factors applicable to each state. Subsequent changes to the measurement of the TRA liability are recognized in the statements of operations as a component of other income (expense), net. The Company expects to obtain an increase in the share of the tax basis of its share of the assets of Alclear when Alclear Units are redeemed or exchanged by Alclear Members and other qualifying transactions. This increase in tax basis may have the effect of reducing the amounts that the Company would otherwise pay in the future to various tax authorities. The increase in tax basis may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets. During the year ended December 31, 2023 , the Company issued 6,056,050 shares of Class A Common Stock to certain non-controlling interest holders who exchanged their Alclear Units. Refer to Note 14 for further details. These exchanges resulted in a tax basis increase subject to the provisions of the TRA. The recognition of the Company’s liability under the tax receivable agreement mirrors the recognition related to its deferred tax assets. As of December 31, 2023, the Company has not recognized the deferred tax asset for the step-up in tax basis, as the asset is not more-likely-than-not to be realized. Additionally, the Company has determined the TRA liability is not probable and therefore has not recorded a tax receivable agreement liability that, if recorded, would be approximately $91,096 , except for realized tax benefit payments with respect to the 2022 tax year . Tax Distributions The members of Alclear, including Clear Secure, Inc., incur U.S. federal, state and local income taxes on their share of any taxable income of Alclear. The Operating Agreement provides for pro rata cash distributions (“tax distributions”) to the holders of the Alclear Units in an amount generally calculated to provide each member of Alclear with sufficient cash to cover its tax liability in respect of the taxable income of Alclear allocable to them. In general, these tax distributions are computed based on Alclear’s estimated taxable income, multiplied by an assumed tax rate as set forth in the Operating Agreement. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation From time to time, the Company is involved in various legal proceedings arising in the ordinary course of business. The Company records a liability when it believes that it is probable that a loss will be incurred and the amount of loss or range of loss can be reasonably estimated. Based on the currently available information, the Company does not believe that there are claims or legal proceedings that would have a material adverse effect on the business, or the consolidated financial statements of the Company. Commitments other than leases The Company is subject to minimum spend commitments of $1,917 over the next year under certain service arrangements. In conjunction with the Company’s revenue share agreements with the airports, certain agreements contain minimum annual contracted fees. These future minimum payments are as follows as of December 31, 2023: 2024 $ 20,798 2025 15,725 2026 6,775 2027 5,991 2028 4,774 Thereafter 938 Total $ 55,001 The Company also has commitments for future marketing expenditures to sports stadiums of $9,268 through 2026. For the year ended December 31, 2023, 2022 and 2021, marketing expenses related to sports stadiums were approximately $5,508, $4,898 and $3,585, respectively. Refer to Note 8 for the Company’s lease commitments. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions As of December 31, 2023, and December 31, 2022, the Company had total payables to certain related parties of $3,508 and $2,836. Additionally, for the years ended December 31, 2023, 2022 and 2021 the Company recorded $12,524, $7,739 and $6,640, respectively, within Cost of revenue share fee within the consolidated statements of operations. These amounts are subject to a Cost of revenue share fee arrangement with an airline. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit PlanThe Company has a 401(k) retirement savings and investment plan (the “401(k) Plan”). Participants make contributions to the 401(k) Plan in varying amounts, up to the maximum limits allowable under the Code. For the years ended December 31, 2023, 2022 and 2021 the Company recorded $2,045, $1,383 and $1,013, respectively within the consolidated statements of operations. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt In March 2020, the Company entered into a credit agreement for a three-year $50,000 revolving credit facility, with a group of lenders. In April 2021, the Company entered into Amendment No. 1 to the Credit Agreement that increased the commitments under the revolving credit facility to $100,000, which extended the maturity date to March 31, 2024. The revolving credit facility includes a letter of credit sub-facility. In June 2023, the Company entered into Amendment No. 2 to the Credit Agreement to transition from London Interbank Offered Rate to the Secured Overnight Financing Rate ("SOFR") as our benchmark interest rate and to extend the maturity date to June 28, 2026. The line of credit has not been drawn against as of December 31, 2023. Prepaid loan fees related to this facility are capitalized and amortized over the remaining term of the credit agreement. The balance expected to be amortized within twelve months from the balance sheet date is presented within Prepaid and other current assets on the consolidated balance sheets, while the long term portion is presented within Other assets in the consolidated balance sheets. The Company incurred $396 of debt issuance costs in connection to Amendment No. 2 to the Credit Agreement. As of December 31, 2023 and 2022, the balance of these loan fees were $419 and $362, respectively. The Credit Agreement contains customary terms and conditions, including limitations on consolidations, mergers, indebtedness, and certain payments, as well as a financial covenant relating to leverage. Borrowings under the Credit Agreement generally will bear a floating interest rate per year and will also include interest based on the greater of the prime rate, SOFR, or New York Federal Reserve Bank (NYFRB) rate, plus an applicable margin for specific interest periods. As of December 31, 2023, the Company had a remaining borrowing capacity of $68,406, net of standby letters of credit, and had no outstanding debt obligations. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Quarterly Dividend On February 15, 2024, the Company announced that its Board declared a quarterly dividend of $0.09 per share, payable on March 5, 2024 to holders of record of Class A Common Stock and Class B Common Stock as of the close of business on February 26, 2024. To the extent the quarterly dividend exceeds the Company's current and accumulated earnings and profits, a portion of the dividend may be deemed a return of capital gain to the holders of our Class A Common Stock or Class B Common Stock, as applicable. Share Repurchases |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income (loss) attributable to Clear Secure, Inc. | $ 28,108 | $ (65,573) | $ (36,082) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Richard Patterson, Jr [Member] | |
Trading Arrangements, by Individual | |
Arrangement Duration | 92 days |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The consolidated financial statements are prepared in accordance with U.S. GAAP and presented in U.S. Dollars in thousands. |
Principles of Consolidation | Description and Organization Clear Secure, Inc. (the “Company” and together with its consolidated subsidiaries, “CLEAR,” “we,” “us,” “our”) is a holding company and its principal asset is the controlling equity interest in Alclear Holdings, LLC (“Alclear”). Alclear was formed as a Delaware limited liability company on January 21, 2010 and operates under the terms of the Second Amended and Restated Operating Agreement dated June 7, 2023 (the “Operating Agreement”). As the sole managing member of Alclear, the Company operates and controls all of the business and affairs of Alclear, and through Alclear and its subsidiaries, conducts the Company’s business. The Company operates an identity company under the brand name CLEAR primarily in the United States. CLEAR's current offerings include: CLEAR Plus, a consumer aviation subscription service, which enables access to predictable and fast experiences through dedicated entry lanes in airport security checkpoints within our nationwide network of 56 airports (as of the date of this filing); TSA PreCheck® Enrollment Provided by CLEAR, which offers consumers increased choice in how and where to sign up for this popular trusted traveler program; CLEAR Verified, our B2B offering, which enables our partners to leverage our digital identity technology and reusable member network to facilitate secure and frictionless experiences digitally and physically via our software development kits and application programming interfaces; and our free flagship CLEAR app, which offers consumer products like Home-to-Gate, RESERVE Powered by CLEAR, our virtual queuing technology that enables customers to prebook a spot in airport security line so they don’t have to wait. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgements, and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other market-specific and relevant assumptions that management believes to be reasonable under the circumstances. The Company’s most significant estimates include: • The measurement of partnership liabilities. • The estimated fair value of intangible assets acquired in conjunction with business combinations The Company evaluates, on an ongoing basis, its assumptions and estimates and adjusts prospectively, if necessary; however, actual results could differ from these estimates. |
Foreign currency | Foreign currency Items included in the financial statements of each of the Company’s consolidated entities are measured using the currency of the primary economic environment in which the entity operates. The consolidated financial statements are presented in US Dollars, which is the Company’s reporting currency. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at period-end exchange rates are recognized in other income (expense), net within the consolidated statement of operations. The results and financial position of all the Company entities that have a functional currency different from the Company's reporting currency are translated into US Dollars as follows: • Assets and liabilities are translated at the closing rate at the reporting date; • Income and expenses for each statement of operation are translated at average exchange rates; and All resulting exchange differences are recognized within currency translation within the statements of comprehensive income (loss) and within accumulated comprehensive loss within the consolidated balance sheets. |
Concentration of credit risk | Concentration of credit risk |
Revenue recognition | Revenue recognition The Company has derived substantially all of its historical revenue from subscriptions to its consumer aviation service, CLEAR Plus. The Company offers certain limited-time free trials, family pricing, and other beneficial pricing through several channels including airline and credit card partnerships. Membership subscription revenue is presented net of taxes, refunds, and credit card chargebacks. The membership subscription revenue is also reduced by the Company’s funded portion of credit card benefits issued to Members through a partnership with one credit card at the end of the contract period. The Company’s funded portion varies based on total number of Members enrolled each contract year. Under Accounting Standards Codification (“ASC”) 606, Revenue Recognition, the Company recognizes revenue upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. In determining how revenue should be recognized, the Company follows a five step process: • Identification of the contract, or contracts, with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when or as the Company satisfies the performance obligations. Subscription revenues are invoiced to subscribers in annual installments for subscriptions to the platform. There are no significant financing components included in the Company’s contracts with subscription customers. Overall, payments received in advance of transfer of control are recorded within deferred revenue within the consolidated balance sheets. The Company primarily recognizes revenue ratably from its consumer aviation subscription service, CLEAR Plus. This performance obligation is satisfied over time as the series of daily services, which are distinct from each other and the customer simultaneously receives and consumes the benefits. The Company uses a time-based output measure and revenue is recognized over the period in which each of the performance obligations are satisfied, as services are rendered, which is generally over the arrangement term as all arrangements are for a period of less than 12 months. The Company uses the practical expedient permitted to not adjust the transaction price of contracts with a duration of one year or less for the effects of a significant financing component at contract inception. The Company has certain other revenue streams which are not significant to the Company’s operating results. Contract costs The Company applies the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period is one year or less. This largely applies to sales commissions on partner subscriptions and renewals. Cost of revenue share fee The Company operates as a concessionaire in airports and shares a portion of the gross receipts generated from the Company’s Members with the host airports (“Cost of revenue share fee”). The Cost of revenue share fee is generally prepaid to the host airport in the period collected from the customer. The Cost of revenue share fee is capitalized and subsequently amortized to operating expense over each Member’s subscription period. Such prepayments are recorded in “Prepaid revenue share fee” in the consolidated balance sheets. Certain host airports have fixed minimum monthly payments. The fixed monthly payments are expensed as incurred in “Cost of revenue share fee” in the consolidated statements of operations since they are direct costs of service. |
Cost of direct salaries and benefits | Cost of direct salaries and benefits Cost of direct salaries and benefits includes employee-related compensation costs and allocated overhead associated with our field Ambassadors directly assisting Members and their corresponding travel-related costs. Employee-related costs recorded in direct salaries and benefits expenses consist of salaries, taxes, benefits and equity-based compensation. Such amounts are direct costs of services. |
Research and development | Research and development Research and development expenses consist primarily of employee-related expenses and allocated overhead costs related to the Company’s development of new products and services and improving existing products and services. Research and development costs are generally expensed as incurred, except for costs incurred in connection with the development of internal-use software that qualify for capitalization as described in our internal-use software policy. Employee-related expenses recorded in research and development consist of salaries, taxes, benefits and equity-based compensation. |
Sales and marketing / Advertising costs | Sales and marketing Sales and marketing expenses consist primarily of costs of general marketing and promotional activities, advertising fees used to drive subscriber acquisition, commissions, the production costs to create our advertisements, employee-related expenses and allocated overhead costs. Employee-related expenses recorded in sales and marketing are related to employees who manage the brand and consist of salaries, taxes, benefits and equity-based compensation. These expenses are recorded as incurred. The Company pays commissions to employees for enrolling customers into free trial Advertising costs Advertising costs are expensed as incurred and are included in sales and marketing expenses. For the years ended December 31, 2023, 2022 and 2021, the Company recorded $12,907, $10,903, and $16,140, respectively, of advertising costs. |
General and administrative / Interest income (expense), net / Other income (expense), net Other | General and administrative General and administrative expenses consist primarily of employee-related expenses for the executive, finance, accounting, legal, and human resources functions. Employee-related expenses consist of salaries, taxes, benefits and equity-based compensation. General and administrative costs also include the Company’s warrant expense. In addition, general and administrative expenses include non-personnel costs, such as legal, accounting and other professional fees, and all other supporting corporate expenses not allocated to other departments. Interest income (expense), net Interest income (expense), net primarily consists of interest income from our investment holdings and discount accretion on our marketable securities partially offset by issuance costs on our revolving credit facility. Other income (expense), net |
Cash and cash equivalents | Cash and cash equivalents |
Restricted cash | Restricted cash |
Marketable securities | Marketable securities The Company determines the appropriate classification of its investments in marketable securities at the time of purchase and reevaluates such designation at each balance sheet date. The Company has classified and accounted for its marketable securities as available-for-sale. The investments herein are intended to be held for an indefinite period of time although they may be sold at management’s discretion, in response to needs for liquidity or in response to changes in the market conditions and as such, are not recognized at amortized cost, and reported as current assets on the consolidated balance sheets. The Company carries its available-for-sale securities at fair value and reports the unrealized gains and losses as a component of other comprehensive income (loss). |
Accounts receivable | Accounts receivable The Company records trade accounts receivable at the invoiced amount and they do not bear interest. The Company has a policy to review outstanding receivables on a periodic basis for collectability and does not maintain an allowance for doubtful accounts as of December 31, 2023 and 2022. The Company monitors and records any expected credit losses under ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) within general and administrative within the consolidated financial statements. The Company recorded no losses for the years ended December 31, 2023 and 2022. |
Property and equipment, net | Property and equipment, net Property and equipment, net is stated at cost, less depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets, which range from 3 to 5 years. Leasehold improvements are amortized based on the shorter of the useful lives or the terms of the leases ranging from 1 to 15 years. |
Internal-Use Software | The Company capitalizes qualifying internal-use software development costs. During the application development phase, costs are capitalized and amortized on a straight-line basis over such software’s estimated useful life, which is generally 3 to 5 years. Capitalized software development costs are reflected in “Property and equipment, net” in the consolidated balance sheets. Software development costs incurred in the design or maintenance phase and minor upgrades and enhancements of software without adding additional functionality are expensed as incurred and included in “Research and development” in the consolidated statements of operations. |
Business combination | Business combinations The Company evaluates acquisitions to determine whether it is a business combination or an asset acquisition. Identifiable assets acquired and liabilities assumed are measured initially at their fair values at the acquisition date. The excess of the fair value of the purchase consideration transferred over the fair value of the identifiable net assets acquired is recognized as goodwill. Acquisition-related costs are charged to the consolidated statement of operations within general and administrative as they are incurred. |
Intangible assets, net | Intangible assets, net The Company’s intangible assets primarily consists of patents and acquired intangible assets in a business combination. Intangible assets with finite lives, including the Company’s patents and those assets acquired in a business combination are amortized on a straight-line basis over their estimated useful lives. Acquired intangible assets other than goodwill comprise acquired developed technology, trade names, customer lists and patents. At initial recognition, intangible assets acquired in a business combination are recognized at their fair value as of the date of acquisition. Following initial recognition, intangible assets are carried at cost less accumulated amortization and impairment losses, to the extent applicable. |
Goodwill | Goodwill |
Impairment of long-lived assets | Impairment of long-lived assets The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its long-lived assets may not be recoverable. When such events or changes in circumstances occur, the Company first determines its asset group and then assesses the recoverability of long-lived assets within that asset group by determining whether the carrying value of such assets will be recovered through their undiscounted expected future cash flows. If the future undiscounted cash flows are less than the carrying amount of these assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. |
Leases | Leases The Company has entered into agreements to lease certain office spaces. These leases require monthly lease payments that may be subject to annual increases throughout the lease term. Certain of these leases also include renewal options at the election of the Company to renew or extend the lease for an additional three years or terminate. These optional periods have not been considered in the determination of the ROU assets or lease liabilities as the Company did not consider it reasonably certain it would exercise the options. The Company performed evaluations of its contracts and determined it only has operating leases. The lease terms are between 1 and 16. Most of the Company’s lease agreements require payment of certain operating expenses in addition to base rent, such as taxes, insurance and maintenance costs. As allowed under ASC 842, the Company considers these as non-lease components and has elected to exclude these components from the measurement of its lease liabilities. The Company has elected to utilize the following practical expedients available under the transition guidance in ASC 842: • The Company did not reassess whether any expired or existing contracts are or contain leases; • The Company did not reassess the lease classification for any expired or existing leases; and • The Company did not reassess initial direct costs for any existing leases. The Company did not apply the guidance for leases with a term of 12 months of less in accordance with the short-term policy lease policy election available in ASC 842. The Company determines if an arrangement is a lease at inception and recognizes ROU assets and lease liabilities upon commencement. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. The classification of the Company's leases as operating or finance leases along with the initial measurement and recognition of the associated ROU assets and lease liabilities is performed at the lease commencement date. The measurement of lease liabilities is based on the present value of future lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of future lease payments. The incremental borrowing rate is based on a variety of factors to derive a rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment. The ROU asset is based on the measurement of the lease liability and also includes any lease payments made prior to or on lease commencement and excludes lease incentives and initial direct costs. |
As a Lessor | As a Lessor During fiscal year 2022, the Company entered into certain transactions in the capacity of a sub-lessor. In a sublease, the original lease between the lessor and the Company (i.e., the head lease) remains in effect and the Company becomes the intermediate lessor. The Company accounts for the head lease and the sublease as separate contracts. The Company records sublease income within other income (expense), net in the consolidated statement of operations. |
Accrued partnership liabilities | Accrued partnership liabilities The Company has agreements to fund a portion of partner credit card benefits issued to Members at the end of the respective contract year. As the amount the Company funds during the respective contract year varies based on the total number of Members participating in the credit card partner’s programs at the end of the respective contract year, the determination of accrued partnership liabilities involves estimating enrollments during a contract year based on historical, current, and future trends and data. |
Income taxes | Income taxes The Company is taxed as a corporation of U.S. federal and state income tax purposes. The Company’s consolidated subsidiary, Alclear, is taxed as a partnership for U.S. federal and state income tax purposes. The provision for income taxes primarily consists of state and local jurisdictions where partnerships (i.e., flow through entities) are taxable. The Company accounts for income taxes in accordance with the liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recorded to recognize the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. The Company reduces deferred tax assets by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred income taxes are measured by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred income taxes is recognized in income in the period that includes the enactment date. |
Common and treasury stock | Common and treasury stock The Company has four classes of issued and outstanding Common Stock, each measured at a par value of $0.00001. Amounts received by the Company in excess of the par value are recorded within additional-paid in capital. The Company has and will issue shares of its Common Stock as a result of transactions in relation to warrant exercises, exchanges, and vesting of restricted stock units (“RSUs”). Historically, the Company's treasury stock consisted of forfeited restricted stock awards (“RSAs”) that are legally issued shares held by the Company, and is recorded at par value, as well as any shares repurchased under the Company’s share repurchase program that are not retired by the Board. As of December 31, 2023, there are no Restricted Stock Awards outstanding. Treasury stock can be utilized to settle equity-based compensation awards issued by the Company and is excluded from the calculation of the non-controlling interest ownership percentage. . |
Investments in Equity Securities | Investments in Equity Securities In accordance with ASC 321 "Investments—Equity Securities,” investments in equity securities in which the Company has no significant influence (generally less than a 20% ownership interest) with readily determinable fair values are accounted for at fair value based on quoted market prices. Equity securities without readily determinable fair values are accounted for either at fair value or using the measurement alternative which is at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. All gains, losses and impairments on investments in equity securities are recognized within other income (expense), net within the consolidated statements of operations. The Company regularly reviews its investments in equity securities not accounted for using the equity method or at fair value for impairment based on a qualitative assessment of a variety of factors. If an equity security is impaired, an impairment loss is recognized in the consolidated statements of |
Equity-based compensation | Equity-based compensation Under the fair value recognition provisions, the Company measures the equity-based compensation cost at the grant date based on the fair value of the award and recognizes the expense over the requisite service period, subject to the probable achievement of performance conditions, if any. The Company measures the fair value of non-employee equity- based compensation expense (primarily in relation to its issued and outstanding warrants) at the grant date based on the fair value of the award, typically using an option pricing model and recognizes the expense in the same period and in the same manner the entity would have if it had paid cash for the goods or services. The Company records forfeitures as they occur and does not estimate the number of awards expected to be forfeited. Prior to the Reorganization, the fair value of the Company’s members’ equity units underlying the awards was determined by the board of managers with input from management and independent third-party valuation specialists, as there was no public market for the Company’s members’ equity units. The board of managers determined the fair value of the members’ equity units by considering a number of objective and subjective factors including: the valuation of comparable companies, the Company’s operating and financial performance, the lack of liquidity of members’ equity units, transactions in the Company’s Class A and Class B redeemable capital units, and general and industry specific economic outlook, amongst other factors. |
Basic and diluted earnings (loss) per share | Basic and diluted earnings (loss) per share The Company applies the two-class method for calculating and presenting earnings (loss) per share by presenting earnings (loss) per share for Class A Common Stock and Class B Common Stock. In applying the two-class method, the Company allocates undistributed earnings equally on a per share basis between Class A Common Stock and Class B Common Stock. The holders of the Class A Common Stock and Class B Common Stock are entitled to participate in earnings equally on a per-share basis, as if all shares of Common Stock were of a single class. Holders of the Class A Common Stock and Class B Common Stock also have equal priority in liquidation and dividend distributions. Shares of Class C Common Stock and Class D Common Stock do not participate in earnings of the Company. As a result, the shares of Class C Common Stock and Class D Common Stock are not considered participating securities and are not included in the weighted-average shares outstanding for purposes of earnings (loss) per share. |
Consolidation and Non-Controlling Interest | Consolidation and Non-Controlling Interest The Company’s policy is to consolidate entities in which it has a controlling financial interest. The Company consolidates: • Voting interest entities (“VOEs”) where the Company holds a majority of the voting interest in such VOEs; and • Variable interest entities (“VIEs”) where the Company is the primary beneficiary. Since the Company is the sole managing member of Alclear, it consolidates the financial results of Alclear. Therefore, the Company reports a non-controlling interest based on Alclear Units held by the members of Alclear on the consolidated balance sheets. Income or loss is attributed to the non-controlling interests based on the weighted average common units outstanding during the period and is presented on the consolidated statements of operations and comprehensive income/(loss). |
Recently Adopted Accounting Pronouncements / Other Recent Accounting Pronouncements Adopted and New Standards and Interpretations Not Yet Effective | Recently Adopted Accounting Pronouncements Business Combinations As of January 1, 2023, the Company adopted ASU No. 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08). There was no significant impact within the consolidated financial statements as a result of this adoption. Other Recent Accounting Pronouncements Adopted and New Standards and Interpretations Not Yet Effective Other than the items discussed above, there are no standards issued by the FASB and adopted by the Company during 2023 that had a material impact on the Company’s consolidated financial statements. Additionally, other than disclosed below, there are no standards that are not yet effective that are applicable to the Company’s consolidated financial statements. ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”) In November 2023, the FASB issued ASU 2023-07, which requires incremental disclosures about a public entity’s reportable segments but does not change the definition of a segment or the guidance for determining reportable segments. The new guidance requires disclosure of significant segment expenses that are (1) regularly provided to (or easily computed from information regularly provided to) the chief operating decision maker and (2) included in the reported measure of segment profit or loss. The new standard also allows companies to disclose multiple measures of segment profit or loss if those measures are used to assess performance and allocate resources. The guidance is effective for calendar year-end public entities in 2024 and should be adopted retrospectively unless impracticable. Early adoption is permitted. The Company did not early adopt this standard and does not anticipate a material impact of this standard on its consolidated financial statements. ASU No 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”) On December 13, 2023, the FASB issued ASU 2023-08, which provides accounting and disclosure guidance for crypto assets that meet the definition of an intangible asset and certain other criteria. In-scope assets are subsequently measured at fair value with changes recorded in the income statement. The standard requires separate presentation of (1) in-scope crypto assets from other intangible assets and (2) changes in the fair value of those crypto assets. Disclosure of significant crypto asset holdings and an annual reconciliation of the beginning and ending balances of crypto assets are also required. Companies will apply the new guidance by making a cumulative-effect adjustment to the opening balance of retained earnings as of the beginning of the annual period the guidance is adopted. The guidance will be effective for all calendar year-end companies in 2025, including interim periods, with early adoption permitted. The Company did not early adopt this standard and does not anticipate a material impact of this standard on its consolidated financial statements. ASU No 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”) On December 14, 2023, the FASB issued ASU 2023-09, which requires significant additional disclosures about income taxes, primarily focused on the disclosure of income taxes paid and the rate reconciliation table. The new guidance will be applied prospectively (with retrospective application permitted) and is effective for calendar year-end public |
Fair Value Measurements | Fair Value Measurements The Company values its available-for-sale marketable securities and certain liabilities based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, a fair value hierarchy that prioritizes observable and unobservable inputs is used to measure fair value into three broad levels, which are described below: Level 1 – Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in inactive markets or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated with observable market data. Level 3 – Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs to the extent possible. In addition, the Company considers counterparty credit risk in its assessment of fair value. The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The following is a description of the valuation methodologies used for assets and liabilities measured at fair value, which are not considered Level 1 items. Corporate bonds – Valued at the closing price reported on the active market on which the individual securities, all of which have counterparts with high credit ratings, are traded. Commercial paper – Value is based on yields currently available on comparable securities of issuers with similar credit ratings. Money market funds – Valued at the net asset value (“NAV”) of units of a collective fund. The NAV is used as a practical expedient to estimate fair value. This practical expedient is not used when it is determined to be probable that the fund will sell the investment for an amount different than the reported NAV. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Changes in Deferred Revenue | The following table presents changes in the deferred revenue balance as follows: For the year ended December 31, 2023 2022 2021 Balance as of January 1 $ 283,452 $ 188,563 $ 101,542 Deferral of revenue $ 704,472 532,323 339,064 Recognition of deferred revenue (611,671) (437,434) (252,043) Balance as of December 31 $ 376,253 $ 283,452 $ 188,563 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets as of December 31, 2023 and 2022 consist of the following: As of December 31, 2023 2022 Prepaid software licenses $ 10,306 $ 9,362 Coronavirus aid, relief, and economic security act retention credit 1,002 1,002 Prepaid insurance costs 1,946 2,613 Other current assets 8,755 5,120 Total $ 22,009 $ 18,097 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Contractual Maturities of Investments | The contractual maturities of investments classified as marketable securities are as follows as of December 31, 2023 and 2022: As of December 31, 2023 2022 Due within 1 year $ 439,155 $ 549,213 Due within 2 years 226,042 116,597 Total marketable securities $ 665,197 $ 665,810 |
Schedule of Marketable Securities | The following table represents the amortized cost, gross unrealized gains and losses, and fair market value of the Company’s marketable securities by significant investment category in addition to their fair value level at December 31, 2023 and 2022: For the Year Ended December 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Level Commercial paper $ 42,903 $ 16 $ (24) $ 42,895 2 U.S. Treasuries 324,274 2,896 (257) 326,913 1 Corporate bonds 294,540 969 (564) 294,945 2 Money market funds measured at NAV (a) 444 — — 444 N/A Total marketable securities $ 662,161 $ 3,881 $ (845) $ 665,197 For the Year Ended December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Level Commercial paper $ 69,762 $ 4 $ (352) $ 69,414 2 U.S. Treasuries 365,424 511 (1,448) 364,487 1 Corporate bonds 218,980 9 (1,310) 217,679 2 Money market funds measured at NAV (a) 14,230 — — 14,230 N/A Total marketable securities $ 668,396 $ 524 $ (3,110) $ 665,810 (a) Money market funds that were measured at NAV per share (or its equivalent) have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the line items presented in the consolidated balance sheets. |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment as of December 31, 2023 and 2022 consist of the following: Depreciation Period in Years As of December 31, 2023 2022 Internally developed software 3-5 $ 62,306 $ 53,788 Acquired software 3 6,539 6,536 Equipment 5 33,624 29,651 Leasehold improvements 1-15 9,113 7,731 Furniture and fixtures 5 12,709 1,608 Construction in progress 8,672 14,102 Total property and equipment, cost 132,963 113,416 Less: accumulated depreciation (70,352) (55,492) Property and equipment, net $ 62,611 $ 57,924 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments | Below is a reconciliation of the amounts reported on the consolidated balance sheets with respect to the Company’s operating leases: December 31, 2024 $ 14,959 2025 14,976 2026 14,766 2027 14,880 2028 15,430 Thereafter 132,669 Total future operating lease payments 207,680 Less: imputed interest (80,298) Total present value of lease payments 127,382 Lease liabilities, current 5,727 Lease liabilities, non-current 121,655 Total lease liabilities $ 127,382 |
Intangible Assets, net (Tables)
Intangible Assets, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, net | See below for Intangible assets, net as of December 31, 2023 and 2022: Weighted Average Useful Life in Years As of December 31, 2023 2022 Patents 20 $ 3,312 $ 2,643 Acquired intangibles - technology 3 5,130 4,300 Acquired intangibles - customer relationships 10.8 18,370 17,900 Acquired intangibles - brand names 5 500 500 Other indefinite lived intangible assets 310 310 Total intangible assets, cost 27,622 25,653 Less: accumulated amortization (6,797) (3,361) Intangible assets, net $ 20,825 $ 22,292 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of Other Assets | Other assets as of December 31, 2023 and 2022 consist of the following: As of December 31, 2023 2022 Security deposits $ 273 $ 251 Loan fees 198 70 Certificates of deposit 459 459 Strategic investment 6,000 — Other long-term assets 1,477 2,289 Total $ 8,407 $ 3,069 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Long Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities As of December 31, 2023 2022 Accrued compensation and benefits $ 18,690 $ 17,362 Accrued partnership liabilities 96,284 71,195 Lease liability 5,727 4,963 Other accrued liabilities 43,314 12,550 Total $ 164,015 $ 106,070 |
Schedule of Other Long Term Liabilities | Other long term liabilities As of December 31, 2023 2022 Deferred tax liability $ 1,711 $ 2,435 Lease liability $ 121,655 $ 125,146 Other long term liabilities 370 1,542 Total $ 123,736 $ 129,123 |
Warrants (Tables)
Warrants (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Stockholders' Equity Note, Warrants or Rights | Prior to the Reorganization, in 2021, Alclear issued the following warrants for Class B redeemable capital units: Number of Units Weighted-average exercise price Liability awards 1,000 $ 1.00 Equity awards 114,797 $ 194.85 Prior to the Reorganization, certain warrant holders exercised their warrants for Class B redeemable capital units as follows: Number of Warrants Weighted-average exercise price Liability awards 70,000 $ 36.74 Equity awards 3,400 $ 1.00 The following warrants remained outstanding as of December 31, 2023: Number of Warrants Weighted-Average Exercise Price Weighted average Remaining Contractual Term (years) Exercisable for Alclear Units 773,934 $ 0.01 0.71 years The Company recorded the following within general and administrative expense in the consolidated statements of operations: For the year ended December 31, 2023 2022 2021 Liability awards $ — $ — $ 12,796 Equity awards 623 77,033 4,813 Total $ 623 $ 77,033 $ 17,609 |
Schedule of Black-scholes Option Pricing Model Using the Weighted-average | The fair values of warrants granted in 2021 were estimated based on the Black-Scholes option pricing model using the weighted-average significant unobservable inputs (Level 3 inputs) as follows: 2021 Risk-free interest rate 0.36% - 0.92% Exercise price $1.00 - $290.00 Expected term 3 - 5 years Expected volatility 45.0% - 50.8% On the date of exercise, the Company recognized a fair value adjustment to the outstanding liability classified warrants which was estimated based on a Black-Scholes option pricing model using the weighted-average significant unobservable inputs (Level 3 inputs) as follows: 2021 Risk-free interest rate 0.16% - 0.19% Exercise price $1.00 - $36.74 Expected term 2 - 3 years Expected volatility 35.1% - 45.0% |
Stockholder_s Equity (Tables)
Stockholder’s Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Noncontrolling Interest | The non-controlling interest balance represents the economic interest in Alclear held by the founders and members of Alclear. The following table summarizes the ownership of common units in Alclear as of December 31, 2023: Alclear Units Ownership Percentage Alclear Units held by Alclear post-reorganization members (other than the Co-Founders and Clear Secure, Inc.) 32,234,914 21.39 % Alclear Units held by the Co-Founders 25,796,690 17.12 % Total 58,031,604 38.51 % |
Incentive Plans (Tables)
Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of RSAs Associated With Compensation Arrangements | The following is a summary of activity related to the RSAs associated with compensation arrangements during year ended December 31, 2023: RSA - Class A Common Stock Weighted Average Unvested balance as of January 1, 2023 236,279 $ 0.87 Granted — — Vested (233,200) 0.87 Forfeited (3,079) 0.87 Unvested balance as of December 31, 2023 — $ — |
Schedule of Compensation expense | Below is the compensation expense (credit) related to the RSAs: For the year ended December 31, 2023 2022 2021 Cost of direct salaries and benefits $ — $ 8 $ (5) Research and development 4 106 230 Sales and marketing — 1 (33) General and administrative 6 133 1,078 Total $ 10 $ 248 $ 1,270 Below is the compensation expense recognized related to the RSUs: For the year ended December 31, 2023 2022 2021 Cost of direct salaries and benefits $ 233 $ 349 $ 321 Research and development 5,968 17,464 6,488 Sales and marketing 614 565 237 General and administrative 10,030 16,536 9,978 Total $ 16,845 $ 34,914 $ 17,024 Below is a summary of total compensation expense recorded in relation to the Company’s incentive plans, excluding additional expense related to repurchases: For the year ended December 31, 2023 2022 2021 RSAs $ 10 $ 248 $ 1,270 RSUs 16,845 34,914 17,024 Founder PSUs 19,815 26,301 13,403 Total $ 36,670 $ 61,463 $ 31,697 For the year ended December 31, 2023 2022 2021 Cost of direct salaries and benefits $ 233 $ 357 $ 317 Research and development $ 5,974 $ 17,570 $ 6,718 Sales and marketing 614 566 203 General and administrative 29,849 42,970 24,459 Total $ 36,670 $ 61,463 $ 31,697 |
Schedule of Restricted Stock Unit, Activity | The following is a summary of activity related to the RSUs associated with compensation arrangements during years ended December 31, 2023: RSUs Weighted Average Unvested balance as of January 1, 2023 4,125,596 $ 27.88 Granted 2,822,344 23.43 Vested (846,234) 25.47 Forfeited (2,203,749) 29.18 Unvested balance as of December 31, 2023 3,897,957 $ 24.85 |
Net Income (Loss) per Common _2
Net Income (Loss) per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Net Income (Loss) Per Common Share | Below is the calculation of basic and diluted net income (loss) per common share: Year Ended December 31, 2023 Class A Class B Basic: Net income attributable to Clear Secure, Inc. $ 27,825 $ 282 Weighted-average number of shares outstanding, basic 89,695,439 907,234 Net income per common share, basic: $ 0.31 $ 0.31 Diluted: Net income attributable to Clear Secure, Inc. used to calculate net income per common share, basic $ 27,825 $ 282 Add: reallocation of net income (loss) to Clear Secure, Inc. to reflect dilutive impact (25) (4) Net income (loss) attributable to Clear Secure, Inc. used to calculate net loss per common share, diluted 27,800 278 Weighted-average number of shares outstanding used to calculate net income per common share, basic 89,695,439 907,234 Effect of dilutive shares 1,014,372 — Weighted-average number of shares outstanding, diluted 90,709,811 907,234 Net income per common share, diluted: $ 0.31 $ 0.31 Year Ended December 31, 2022 Class A Class B Basic: Net loss attributable to Clear Secure, Inc. $ (64,768) $ (805) Weighted-average number of shares outstanding, basic 80,824,548 1,007,686 Add: weighted-average number of shares from the assumed exercise of certain warrants 292,636 — Weighted-average number of shares outstanding used to calculate net loss per common share, basic 81,117,184 1,007,686 Net loss per common share, basic: $ (0.80) $ (0.80) Diluted: Net loss attributable to Clear Secure, Inc. used to calculate net loss per common share, basic $ (64,768) $ (805) Weighted-average number of shares outstanding used to calculate net loss per common share, basic 81,117,184 1,007,686 Effect of dilutive shares — — Weighted-average number of shares outstanding, diluted 81,117,184 1,007,686 Net loss per common share, diluted: $ (0.80) $ (0.80) Year Ended December 31, 2021 Class A Class B Basic: Net loss attributable to Clear Secure, Inc. $ (35,590) $ (492) Add: reallocation of net loss attributable to non-controlling interests from the assumed exercise of certain warrants (534) (7) Net loss attributable to Clear Secure, Inc. used to calculate net loss per common share, basic (36,124) (499) Weighted-average number of shares outstanding, basic 72,537,156 1,042,234 Add: weighted-average number of shares from the assumed exercise of certain warrants 2,978,086 — Weighted-average number of shares outstanding used to calculate net loss per common share, basic 75,515,242 1,042,234 Net loss per common share, basic: $ (0.48) $ (0.48) Diluted: Net loss attributable to Clear Secure, Inc. used to calculate net loss per common share, basic $ (36,124) $ (499) Weighted-average number of shares outstanding used to calculate net loss per common share, basic 75,515,242 1,042,234 Effect of dilutive shares — — Weighted-average number of shares outstanding, diluted 75,515,242 1,042,234 Net loss per common share, diluted: $ (0.48) $ (0.48) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Year Ended December 31, 2023 Class A Class B Exchangeable Alclear Units 32,234,914 25,796,690 RSA’s — — RSU’s 1,109,769 — Total 33,344,683 25,796,690 Year Ended December 31, 2022 Class A Class B Exchangeable Alclear Units 38,290,964 25,796,690 RSA’s 236,279 — RSU’s 3,450,881 — Total 41,978,124 25,796,690 Year Ended December 31, 2021 Class A Class B Exchangeable Alclear Units 44,598,167 26,709,821 RSA’s 1,429,883 — RSU’s 2,603,389 — Total 48,631,439 26,709,821 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) are as follows: For the year ended December 31, 2023 2022 2021 Current Federal $ 163 $ 80 $ — State 1,005 266 207 Foreign 278 63 26 Total current income taxes 1,446 $ 409 $ 233 Deferred Federal (747) (822) — State 25 (1,649) — Foreign — — — Total deferred income taxes (722) (2,471) — Income tax expense (benefit) $ 724 $ (2,062) $ 233 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. statutory income tax rate to the Company’s effective tax rate is as follows: For the year ended December 31, 2023 2022 2021 Tax expense (benefit) at U.S. statutory rate 21.0 % 21.0 % 21.0 % Effect of flow-through entity 0.0 % 0.0 % (9.4) % State taxes 1.1 % (0.6) % 2.0 % Remeasurement of state tax 1.0 % 1.7 % 0.0 % Federal uncertain tax benefit 1.2 % 0.0 % 0.0 % Permanent differences 0.1 % (0.2) % 0.0 % Non-controlling interest (9.5) % (8.9) % (5.4) % Change in valuation allowance (10.7) % (11.5) % (8.0) % R&D Credit (3.1) % 0.7 % 0.0 % Other 0.3 % (0.5) % (0.4) % Effective income tax rate 1.4 % 1.7 % (0.2) % |
Schedule of Deferred Tax Assets and Liabilities | The components of the deferred tax assets and liabilities are as follows: As of December 31, Deferred Taxes 2023 2022 Lease liability $ 506 $ 393 R&D credit 2,591 1,676 Accrued expenses 9 2 Stock-based compensation 446 293 Investment in partnership 214,711 187,969 Other 735 194 Net operating loss 13,357 16,870 Gross deferred tax assets 232,355 207,397 Depreciation and amortization (3,531) (3,520) Prepaid expenses and other (49) (39) ROU asset (460) (373) Gross deferred tax liabilities (4,040) (3,932) Deferred income tax assets before valuation allowance 228,315 203,465 Valuation allowance (230,026) (205,900) Net deferred tax asset (liability) $ (1,711) $ (2,435) |
Schedule of Valuation Allowance | The table below summarizes the significant movement year over year in the Company’s valuation allowance: As of December 31, 2023 2022 Balance as of January 1 $ 205,900 $ 176,381 Additions to valuation allowance through income tax expense — 265 Additions to valuation allowance through equity 27,092 29,270 Additions to valuation allowance through goodwill — (16) Release of valuation allowance through income tax expense (2,966) — Balance as of December 31 $ 230,026 $ 205,900 |
Schedule of Unrecognized Tax Benefits Roll Forward | The following is a tabular reconciliation of the total amounts of unrecognized tax benefit: For the year-ended December 31, 2023 2022 2021 Balance as of January 1 $ 437 $ 87 $ — Gross increases - tax positions in prior period 467 350 87 Gross decreases - tax positions in prior period — — Gross increases - tax positions in current period 232 — — Settlement — — Lapse of statute of limitations — — — Balance as of December 31 $ 1,136 $ 437 $ 87 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments | In conjunction with the Company’s revenue share agreements with the airports, certain agreements contain minimum annual contracted fees. These future minimum payments are as follows as of December 31, 2023: 2024 $ 20,798 2025 15,725 2026 6,775 2027 5,991 2028 4,774 Thereafter 938 Total $ 55,001 |
Description of Business and R_2
Description of Business and Recent Accounting Developments (Details) | 12 Months Ended | ||||
Jul. 02, 2021 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) airport $ / shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) | Jun. 29, 2021 vote class $ / shares | |
Class of Stock [Line Items] | |||||
Number of airports | airport | 56 | ||||
Par value (in USD per share) | $ 0.00001 | ||||
Number of classes of common stock issued | class | 4 | ||||
Percent of savings for holders | 0.85 | ||||
Percent of savings for the company | 0.15 | ||||
IPO proceeds, net of underwriter fees and issuance costs | $ | $ 0 | $ (297,000) | $ 436,837,000 | ||
Stock issuance costs | $ | $ 0 | $ 297,000 | $ 9,038,000 | ||
Common Class A | |||||
Class of Stock [Line Items] | |||||
Par value (in USD per share) | $ 0.00001 | $ 0.00001 | |||
Number of votes per share | vote | 1 | ||||
Common Class A | IPO | |||||
Class of Stock [Line Items] | |||||
Par value (in USD per share) | $ 0.00001 | $ 0.00001 | |||
Shares issued (in shares) | shares | 15,180,000 | ||||
Share price (in USD per share) | $ 31 | ||||
IPO proceeds, net of underwriter fees and issuance costs | $ | $ 445,875,000 | ||||
Common Class A | Over-Allotment Option | |||||
Class of Stock [Line Items] | |||||
Shares issued (in shares) | shares | 1,980,000 | ||||
Common Class B | |||||
Class of Stock [Line Items] | |||||
Par value (in USD per share) | 0.00001 | 0.00001 | |||
Number of votes per share | vote | 20 | ||||
Common Class B | IPO | |||||
Class of Stock [Line Items] | |||||
Par value (in USD per share) | $ 0.00001 | ||||
Common Class C | |||||
Class of Stock [Line Items] | |||||
Par value (in USD per share) | 0.00001 | 0.00001 | |||
Number of votes per share | vote | 1 | ||||
Common Class C | IPO | |||||
Class of Stock [Line Items] | |||||
Par value (in USD per share) | $ 0.00001 | ||||
Common Class D | |||||
Class of Stock [Line Items] | |||||
Par value (in USD per share) | $ 0.00001 | $ 0.00001 | |||
Number of votes per share | vote | 20 | ||||
Common Class D | IPO | |||||
Class of Stock [Line Items] | |||||
Par value (in USD per share) | $ 0.00001 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Accounting Policies [Abstract] | |||
Number of reportable segments | segment | 1 | ||
Number of operating segments | segment | 1 | ||
Non-operating income | $ 0 | $ 7,100,000 | $ 5,799,000 |
Advertising costs | 12,907,000 | 10,903,000 | 16,140,000 |
Cash and cash equivalents | 57,900,000 | 38,939,000 | 280,107,000 |
Credit card receivables | 10,243,000,000 | 6,497,000,000 | |
Allowance for doubtful accounts | 0 | 0 | |
Equity method investment, other than temporary impairment | $ 0 | $ 0 | $ 0 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Property and Equipment, Net (Details) | Dec. 31, 2023 |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 1 year |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 15 years |
Internal-Use Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Internal-Use Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Nov. 30, 2022 |
Lessee, Lease, Description [Line Items] | |||
Right of use asset, net | $ 115,874 | $ 123,880 | |
Total lease liabilities | $ 127,382 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Term of contract | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Term of contract | 16 years | ||
Building | |||
Lessee, Lease, Description [Line Items] | |||
Renewal term (in years) | 3 years | ||
Building | Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Renewal term (in years) | 5 years | ||
Building | Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Renewal term (in years) | 10 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Common and Treasury Stock (Details) | Dec. 31, 2023 class $ / shares |
Accounting Policies [Abstract] | |
Number of classes issued and outstanding | class | 4 |
Par value (in USD per share) | $ / shares | $ 0.00001 |
Business Combinations (Details)
Business Combinations (Details) | 12 Months Ended | |||||
Sep. 05, 2023 USD ($) tranche | Dec. 30, 2021 USD ($) | Dec. 29, 2021 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) acquisition | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 62,757,000 | $ 58,807,000 | ||||
Number of acquisitions completed | acquisition | 2 | |||||
Compensation expense | $ 37,293,000 | 138,495,000 | $ 36,511,000 | |||
Acquired intangibles - customer relationships | ||||||
Business Acquisition [Line Items] | ||||||
Finite-live intangible assets useful life | 10 years 9 months 18 days | |||||
Sora ID, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Purchase consideration | $ 5,250,000 | |||||
Business combination, consideration transferred, liabilities incurred | $ 1,500,000 | |||||
Business combination, consideration transferred, number of tranches | tranche | 2 | |||||
Goodwill | $ 3,950,000 | |||||
Acquired intangible assets | $ 1,300,000 | |||||
Business combination, contingent consideration arrangements, payment due, period | 1 year | |||||
Acquisition-related costs | $ 500,000 | |||||
Sora ID, Inc. | Acquired intangibles - customer relationships | ||||||
Business Acquisition [Line Items] | ||||||
Finite-live intangible assets useful life | 3 years | |||||
Sora ID, Inc. | Developed Technology Rights | ||||||
Business Acquisition [Line Items] | ||||||
Finite-live intangible assets useful life | 5 years | |||||
Sora ID, Inc. | Retention Bonus | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, contingent consideration arrangements, payment due, period | 6 months | |||||
Contingent consideration arrangements | $ 4,000 | |||||
Sora ID, Inc. | Post-combination Remuneration | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, consideration transferred, number of tranches | tranche | 2 | |||||
Contingent consideration arrangements | $ 9,000 | |||||
Sora ID, Inc. | Minimum | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, deferred consideration arrangements, payable term | 15 months | |||||
Sora ID, Inc. | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, deferred consideration arrangements, payable term | 30 months | |||||
Atlas Certified, LLC. | ||||||
Business Acquisition [Line Items] | ||||||
Purchase consideration | $ 9,000,000 | |||||
Goodwill | 5,000,000 | |||||
Acquired intangible assets | $ 4,000,000 | |||||
Atlas Certified, LLC. | Minimum | ||||||
Business Acquisition [Line Items] | ||||||
Finite-live intangible assets useful life | 3 years | |||||
Atlas Certified, LLC. | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Finite-live intangible assets useful life | 12 years | |||||
Whyline, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 54,792,000 | |||||
Acquired intangible assets | $ 16,601,000 | |||||
Percentage acquired | 100% | |||||
Cash consideration transferred | $ 67,500,000 | |||||
Contingent consideration | 100,000 | |||||
Net deferred tax liabilities | 3,792,000 | |||||
Net operating assets | 99,000 | |||||
Goodwill, deductible for tax purposes | 0 | |||||
Accounting incomplete adjustment, decrease to goodwill | $ 984,000 | |||||
Accounting incomplete adjustment, acquired intangible assets | 2,100,000 | |||||
Accounting incomplete adjustment, increase to deferred tax liabilities | 1,116,000 | |||||
Compensation expense | $ 0 | $ 0 | $ 0 | |||
Whyline, Inc. | Not Subject to Satisfaction of Service Based Criteria | ||||||
Business Acquisition [Line Items] | ||||||
Contingent consideration arrangements | 6,666,000 | |||||
Whyline, Inc. | Based on Certain Performance and Service Based Criteria Being Met | ||||||
Business Acquisition [Line Items] | ||||||
Contingent consideration arrangements | $ 13,334,000 |
Revenue - Schedule of Changes i
Revenue - Schedule of Changes in Deferred Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change in Contract with Customer, Liability [Roll Forward] | |||
Beginning balance | $ 283,452 | $ 188,563 | $ 101,542 |
Deferral of revenue | 704,472 | 532,323 | 339,064 |
Recognition of deferred revenue | (611,671) | (437,434) | (252,043) |
Ending balance | $ 376,253 | $ 283,452 | $ 188,563 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||
Refund liability | $ 3,727,000 | $ 3,837,000 | |
Revenue recognized included in opening balance | $ 281,786,000 | $ 188,009,000 | $ 101,542,000 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Prepaid software licenses | $ 10,306 | $ 9,362 | |
Coronavirus aid, relief, and economic security act retention credit | 1,002 | 1,002 | $ 2,036 |
Prepaid insurance costs | 1,946 | 2,613 | |
Other current assets | 8,755 | 5,120 | |
Total | $ 22,009 | $ 18,097 |
Prepaid Expenses and Other Cu_4
Prepaid Expenses and Other Current Assets - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Coronavirus aid, relief, and economic security act retention credit | $ 1,002 | $ 1,002 | $ 2,036 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Contractual Maturities of Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Due within 1 year | $ 439,155 | $ 549,213 |
Due within 2 years | 226,042 | 116,597 |
Total marketable securities | $ 665,197 | $ 665,810 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 665,197 | $ 665,810 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 662,161 | 668,396 |
Gross Unrealized Gains | 3,881 | 524 |
Gross Unrealized Losses | (845) | (3,110) |
Fair Value | 665,197 | 665,810 |
Recurring | Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 42,903 | 69,762 |
Gross Unrealized Gains | 16 | 4 |
Gross Unrealized Losses | (24) | (352) |
Fair Value | 42,895 | 69,414 |
Recurring | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 294,540 | 218,980 |
Gross Unrealized Gains | 969 | 9 |
Gross Unrealized Losses | (564) | (1,310) |
Fair Value | 294,945 | 217,679 |
Recurring | Level 1 | U.S. Treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 324,274 | 365,424 |
Gross Unrealized Gains | 2,896 | 511 |
Gross Unrealized Losses | (257) | (1,448) |
Fair Value | 326,913 | 364,487 |
Recurring | Net Asset Value (NAV) | Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 444 | 14,230 |
Fair Value | $ 444 | $ 14,230 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Fair Value Disclosures [Abstract] | |
Continuous unrealized loss for 12 months or longer value. | $ 84,246 |
Property and Equipment, net - S
Property and Equipment, net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, cost | $ 132,963 | $ 113,416 |
Less: accumulated depreciation | (70,352) | (55,492) |
Property and equipment, net | $ 62,611 | 57,924 |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation Period in Years | 3 years | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation Period in Years | 5 years | |
Internally developed software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, cost | $ 62,306 | 53,788 |
Internally developed software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation Period in Years | 3 years | |
Internally developed software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation Period in Years | 5 years | |
Acquired software | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation Period in Years | 3 years | |
Total property and equipment, cost | $ 6,539 | 6,536 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation Period in Years | 5 years | |
Total property and equipment, cost | $ 33,624 | 29,651 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, cost | $ 9,113 | 7,731 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation Period in Years | 1 year | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation Period in Years | 15 years | |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation Period in Years | 5 years | |
Total property and equipment, cost | $ 12,709 | 1,608 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, cost | $ 8,672 | $ 14,102 |
Property and Equipment, net - N
Property and Equipment, net - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 21,649 | $ 18,792 | $ 12,358 |
Capitalized costs associated with internally developed software | 8,517 | 13,000 | |
Capitalized equity-based compensation | 1,424 | 0 | |
Amortization expense | 8,307 | 7,676 | 5,416 |
Purchase of fixed assets with accounts payable | 648 | 1,428 | |
Purchase of fixed assets with accrued liabilities | 173 | 0 | |
Impairment of assets | $ 3,469 | $ 2,047 | $ 4,567 |
Impairment Long Lived Asset Held For Use Statement Of Income Or Comprehensive Income Extensible Enumeration Not Disclosed Flag | impairment charges | impairment charges | impairment charges |
Property and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 18,215 | $ 15,524 | $ 12,304 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2024 | $ 14,959 | |
2025 | 14,976 | |
2026 | 14,766 | |
2027 | 14,880 | |
2028 | 15,430 | |
Thereafter | 132,669 | |
Total future operating lease payments | 207,680 | |
Less: imputed interest | (80,298) | |
Lease liabilities, current | 5,727 | $ 4,963 |
Lease liabilities, non-current | 121,655 | $ 125,146 |
Total lease liabilities | $ 127,382 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Nov. 30, 2022 renewalOption | Sep. 30, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 01, 2022 | |
Lessee, Lease, Description [Line Items] | |||||||
Lease liability remeasurement | $ 5,988 | ||||||
Operating lease, impairment | $ 1,506 | $ 1,021 | |||||
Sublease income | $ 1,557 | 130 | $ 0 | ||||
Weighted-average discount rate | 7.59% | 7.59% | 4.30% | ||||
Weighted-average remaining lease term | 13 years 21 days | 13 years 21 days | |||||
Operating lease expense | $ 16,021 | 6,306 | $ 4,288 | ||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 12,322 | $ 4,893 | |||||
Building | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Lease term (in years) | 15 years | ||||||
Options for renewal | renewalOption | 1 | ||||||
Renewal term (in years) | 3 years | 3 years | |||||
Renewal notice period (in months) | 18 months | ||||||
Increase to right-of-use asset | $ 107,683 | ||||||
Building | Minimum | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Renewal term (in years) | 5 years | ||||||
Building | Maximum | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Renewal term (in years) | 10 years |
Intangible Assets, net - Schedu
Intangible Assets, net - Schedule of Intangible Assets, net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Total intangible assets, cost | $ 27,622 | $ 25,653 |
Less: accumulated amortization | (6,797) | (3,361) |
Intangible assets, net | 20,825 | 22,292 |
Other Intangible Assets | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Other indefinite lived intangible assets | $ 310 | 310 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-live intangible assets useful life | 20 years | |
Finite-lived intangible assets | $ 3,312 | 2,643 |
Acquired intangibles - technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-live intangible assets useful life | 3 years | |
Finite-lived intangible assets | $ 5,130 | 4,300 |
Acquired intangibles - customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-live intangible assets useful life | 10 years 9 months 18 days | |
Finite-lived intangible assets | $ 18,370 | 17,900 |
Acquired intangibles - brand names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-live intangible assets useful life | 5 years | |
Finite-lived intangible assets | $ 500 | $ 500 |
Intangible Assets, net - Narrat
Intangible Assets, net - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization on intangible assets | $ 3,434,000 | $ 3,268,000 | $ 54,000 |
Impairment of intangible assets | 0 | 0 | 0 |
Goodwill impairment | $ 0 | $ 0 | $ 0 |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 | Apr. 30, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash | $ 4,501 | $ 29,945 | ||
Letters of credit | $ 0 | 6,099 | ||
Bank Time Deposits | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash | $ 4,501 | 7,708 | ||
Letter of Credit | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash | $ 0 | $ 16,138 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Assets, Noncurrent [Abstract] | ||
Security deposits | $ 273 | $ 251 |
Loan fees | 198 | 70 |
Certificates of deposit | 459 | 459 |
Strategic investment | 6,000 | 0 |
Other long-term assets | 1,477 | 2,289 |
Total | $ 8,407 | $ 3,069 |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Long Term Liabilities - Schedule of Accrued Liabilities and Other Long Term Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accrued Liabilities | ||
Accrued compensation and benefits | $ 18,690 | $ 17,362 |
Accrued partnership liabilities | 96,284 | 71,195 |
Lease liability | 5,727 | 4,963 |
Other accrued liabilities | 43,314 | 12,550 |
Total | $ 164,015 | $ 106,070 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Total | Total |
Other Long Term Liabilities | ||
Deferred tax liability | $ 1,711 | $ 2,435 |
Lease liability | 121,655 | 125,146 |
Other long term liabilities | 370 | 1,542 |
Total | $ 123,736 | $ 129,123 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Total | Total |
Accrued Liabilities and Other_4
Accrued Liabilities and Other Long Term Liabilities - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accrued Liabilities, Current [Abstract] | ||
Other accrued liabilities, vendor accruals | $ 14,422 | $ 8,140 |
Warrants - Narrative (Details)
Warrants - Narrative (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
Jun. 29, 2021 $ / shares | Jan. 31, 2023 USD ($) shares | Oct. 31, 2022 USD ($) shares | Sep. 30, 2022 USD ($) shares | Aug. 31, 2022 shares | Jul. 31, 2022 shares | Jan. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2023 USD ($) $ / shares shares | Jun. 29, 2021 $ / shares shares | Dec. 31, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Nov. 30, 2022 $ / shares shares | Jun. 30, 2021 shares | |
Class of Warrant or Right [Line Items] | |||||||||||||||
Exchange ratio | 19.98 | ||||||||||||||
Warrants, exercises in period (in shares) | 534,655 | 1,207,932 | 2,000,000 | 534,655 | |||||||||||
Warrants, aggregate intrinsic value, vested | $ | $ 16,136 | $ 12,757 | $ 32,457 | $ 54,120 | |||||||||||
Compensation expense | $ | $ 37,293 | $ 138,495 | $ 36,511 | ||||||||||||
Equity awards | |||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||
Warrants, exercises in period (in shares) | 534,655 | ||||||||||||||
Unrecognized expense | $ | $ 1,038 | ||||||||||||||
Common Class A Equity Awards | |||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||
Warrants vested and exercisable (in shares) | 7,674,502 | ||||||||||||||
Common Class A | |||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||
Warrants, exercises in period (in shares) | 2,138,620 | ||||||||||||||
Warrants, aggregate intrinsic value, vested | $ | $ 51,241 | ||||||||||||||
Compensation expense | $ | $ 76,834 | ||||||||||||||
Warrant settled and cancelled (in shares) | 515,974 | ||||||||||||||
Warrant settled and cancelled (in shares) | 108,611 | ||||||||||||||
Common Class C | |||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||
Warrants vested and exercisable (in shares) | 194,043 | ||||||||||||||
Warrants | |||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||
Future unrecognized expense | $ | $ 0 | $ 0 | |||||||||||||
Warrants | Minimum | |||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||
Award requisite service period (in years) | 3 months | ||||||||||||||
Warrants | Maximum | |||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||
Award requisite service period (in years) | 6 years | ||||||||||||||
Equity Awards | |||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||
Number of warrants issued (in shares) | 114,797 | ||||||||||||||
Weighted average exercise price of warrants or rights issued (in USD per share) | $ / shares | $ 194.85 | ||||||||||||||
Weighted-average exercise price (in USD per share) | $ / shares | $ 1 | 1 | |||||||||||||
Equity Awards | Warrants | |||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||
Weighted average exercise price of warrants or rights issued (in USD per share) | $ / shares | $ 287.55 | ||||||||||||||
Exercisable for Alclear Units | |||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||
Warrants vested and exercisable (in shares) | 194,109 | 968,043 | |||||||||||||
Weighted-average exercise price (in USD per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 |
Warrants - Schedule of Warrants
Warrants - Schedule of Warrants Outstanding (Details) - $ / shares | 6 Months Ended | |||
Jun. 29, 2021 | Jun. 29, 2021 | Dec. 31, 2023 | Nov. 30, 2022 | |
Liability Awards | ||||
Class of Warrant or Right [Line Items] | ||||
Number of warrants issued (in shares) | 1,000 | |||
Weighted average exercise price of warrants or rights issued (in USD per share) | $ 1 | |||
Number of warrants exercised (in shares) | 70,000 | |||
Weighted-average exercise price (in USD per share) | $ 36.74 | $ 36.74 | ||
Equity Awards | ||||
Class of Warrant or Right [Line Items] | ||||
Number of warrants issued (in shares) | 114,797 | |||
Weighted average exercise price of warrants or rights issued (in USD per share) | $ 194.85 | |||
Number of warrants exercised (in shares) | 3,400 | |||
Weighted-average exercise price (in USD per share) | $ 1 | $ 1 | ||
Exercisable for Alclear Units | ||||
Class of Warrant or Right [Line Items] | ||||
Weighted-average exercise price (in USD per share) | $ 0.01 | $ 0.01 | ||
Warrants outstanding (in shares) | 773,934 | |||
Weighted-average remaining contractual term (in years) | 8 months 15 days |
Warrants - Schedule of Black-sc
Warrants - Schedule of Black-scholes Option Pricing Model Using the Weighted-average (Details) - Valuation Technique, Option Pricing Model - Level 3 | Dec. 31, 2023 $ / shares | Dec. 31, 2021 $ / shares |
Risk-free interest rate | Warrants Granted | Minimum | ||
Class of Warrant or Right [Line Items] | ||
Exercise price (in USD per share) | 0.0036 | |
Risk-free interest rate | Warrants Granted | Maximum | ||
Class of Warrant or Right [Line Items] | ||
Exercise price (in USD per share) | 0.0092 | |
Risk-free interest rate | Warrants Exercised | Minimum | ||
Class of Warrant or Right [Line Items] | ||
Exercise price (in USD per share) | 0.0016 | |
Risk-free interest rate | Warrants Exercised | Maximum | ||
Class of Warrant or Right [Line Items] | ||
Exercise price (in USD per share) | 0.0019 | |
Exercise price | Warrants Granted | Minimum | ||
Class of Warrant or Right [Line Items] | ||
Exercise price (in USD per share) | 1 | |
Exercise price | Warrants Granted | Maximum | ||
Class of Warrant or Right [Line Items] | ||
Exercise price (in USD per share) | 290 | |
Exercise price | Warrants Exercised | Minimum | ||
Class of Warrant or Right [Line Items] | ||
Exercise price (in USD per share) | 1 | |
Exercise price | Warrants Exercised | Maximum | ||
Class of Warrant or Right [Line Items] | ||
Exercise price (in USD per share) | 36.74 | |
Expected term | Warrants Granted | Minimum | ||
Class of Warrant or Right [Line Items] | ||
Weighted-average remaining contractual term (in years) | 3 years | |
Expected term | Warrants Granted | Maximum | ||
Class of Warrant or Right [Line Items] | ||
Weighted-average remaining contractual term (in years) | 5 years | |
Expected term | Warrants Exercised | Minimum | ||
Class of Warrant or Right [Line Items] | ||
Weighted-average remaining contractual term (in years) | 2 years | |
Expected term | Warrants Exercised | Maximum | ||
Class of Warrant or Right [Line Items] | ||
Weighted-average remaining contractual term (in years) | 3 years | |
Expected volatility | Warrants Granted | Minimum | ||
Class of Warrant or Right [Line Items] | ||
Exercise price (in USD per share) | 0.450 | |
Expected volatility | Warrants Granted | Maximum | ||
Class of Warrant or Right [Line Items] | ||
Exercise price (in USD per share) | 0.508 | |
Expected volatility | Warrants Exercised | Minimum | ||
Class of Warrant or Right [Line Items] | ||
Exercise price (in USD per share) | 0.351 | |
Expected volatility | Warrants Exercised | Maximum | ||
Class of Warrant or Right [Line Items] | ||
Exercise price (in USD per share) | 0.450 |
Warrants - Schedule of Warrant
Warrants - Schedule of Warrant Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class of Warrant or Right [Line Items] | |||
Liability awards | $ 0 | $ 0 | $ 12,796 |
Equity-based compensation | 36,670 | 61,463 | 31,697 |
Total | 623 | 77,033 | 17,609 |
Equity awards | |||
Class of Warrant or Right [Line Items] | |||
Equity-based compensation | $ 623 | $ 77,033 | $ 4,813 |
Stockholder_s Equity - Narrativ
Stockholder’s Equity - Narrative (Details) - USD ($) | 12 Months Ended | ||||||
Nov. 08, 2023 | Aug. 02, 2023 | May 09, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | May 13, 2022 | |
Class of Stock [Line Items] | |||||||
Repurchase and retirement of equity | $ 69,673,000 | $ 4,902,000 | |||||
Common stock, dividends (in dollars per share) | $ 0.09 | $ 0.07 | $ 0.20 | ||||
Common stock, special dividend, per share, declared (in dollars per share) | $ 0.55 | ||||||
Non-Controlling Interest | |||||||
Class of Stock [Line Items] | |||||||
Repurchase and retirement of equity | $ 19,721,000 | $ (493,000) | |||||
Alclear Holdings LLC | Non-Controlling Interest | |||||||
Class of Stock [Line Items] | |||||||
Ownership Percentage | 38.51% | 42.02% | |||||
Common Class A | |||||||
Class of Stock [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 100,000,000 | $ 100,000,000 | |||||
Repurchase and retirement of equity (in shares) | 3,112,694,000 | ||||||
Repurchase and retirement of equity | $ 69,673,000 | ||||||
Average price per share | $ 22.36 | ||||||
Remaining authorized repurchase amount | $ 125,424,000 | ||||||
Issuance of stock, net of costs (in shares) | 6,056,050 | ||||||
Common Class A | Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Repurchase and retirement of equity (in shares) | 3,112,694 | 213,100 | |||||
Issuance of stock, net of costs (in shares) | 15,180,000 | ||||||
Exchange of shares (in shares) | 6,056,050 | 7,414,377 |
Stockholder_s Equity - Schedule
Stockholder’s Equity - Schedule of Noncontrolling Interest (Details) - Non-Controlling Interest - Alclear Holdings LLC - shares | Dec. 31, 2023 | Dec. 31, 2022 |
Class of Stock [Line Items] | ||
Alclear Units (in shares) | 58,031,604 | |
Ownership Percentage | 38.51% | 42.02% |
Post IPO Members | ||
Class of Stock [Line Items] | ||
Alclear Units (in shares) | 32,234,914 | |
Ownership Percentage | 21.39% | |
Founders | ||
Class of Stock [Line Items] | ||
Alclear Units (in shares) | 25,796,690 | |
Ownership Percentage | 17.12% |
Incentive Plans - Narrative (De
Incentive Plans - Narrative (Details) | 1 Months Ended | 12 Months Ended | |||
Jul. 01, 2022 | Jun. 29, 2021 shares | Mar. 31, 2022 shares | Jun. 29, 2021 $ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Additional compensation expense due to substitution of awards | $ | $ 0 | ||||
Time Based Restricted Stock Units (RSUs) | Cliff-vest at end of period | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period (in years) | 3 years | ||||
Time Based Restricted Stock Units (RSUs) | Vest ratably over period | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period (in years) | 3 years | ||||
RSA’s | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award requisite service period (in years) | 3 years | ||||
Unrecognized expense | $ | $ 0 | ||||
RSU’s | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award requisite service period (in years) | 3 years | ||||
Unrecognized expense | $ | $ 59,668,000 | ||||
Period for recognition (in years) | 2 years 1 month 13 days | ||||
Granted (in shares) | 2,822,344 | ||||
Granted (in USD per share) | $ / shares | $ 23.43 | ||||
Performance Restricted Stock Units (PSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period (in years) | 5 years | ||||
Unrecognized expense | $ | $ 10,100,000 | ||||
Period for recognition (in years) | 7 months 2 days | ||||
Expected volatility rate | 45% | ||||
Price volatility measurement period (in days) | 180 days | ||||
Granted (in shares) | 4,208,617 | ||||
Granted (in USD per share) | $ / shares | $ 16.54 | ||||
Common Class A | RSA’s | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 0 | ||||
Granted (in USD per share) | $ / shares | $ 0 | ||||
2021 Omnibus Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized (in shares) | 20,000,000 | 20,000,000 | |||
Percent increase in authorized shares | 0.05 | ||||
Maximum percentage of outstanding stock | 12% | ||||
2021 Omnibus Incentive Plan | Common Class A | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued (in share) | 5,693,082 |
Incentive Plans - Schedule of C
Incentive Plans - Schedule of Compensation Expense Related to the Unvested Profit Units RSAs and RSUs (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Restricted Stock Awards (RSAs) | Common Class A | ||
Share-based Payment Arrangement | ||
Unvested balance, beginning of period (in shares) | 236,279 | |
Granted (in shares) | 0 | |
Vested (in shares) | (233,200) | |
Forfeited (in shares) | (3,079) | |
Unvested balance, end of period (in shares) | 0 | |
Weighted Average Grant Date Fair Value | ||
Unvested balance, beginning of period (in USD per share) | $ 0 | $ 0.87 |
Granted (in USD per share) | 0 | |
Vested (in USD per share) | 0.87 | |
Forfeited (in USD per share) | 0.87 | |
Unvested balance, end of period (in USD per share) | $ 0 | |
Restricted Stock Units (RSUs) | ||
Share-based Payment Arrangement | ||
Unvested balance, beginning of period (in shares) | 4,125,596 | |
Granted (in shares) | 2,822,344 | |
Vested (in shares) | (846,234) | |
Forfeited (in shares) | (2,203,749) | |
Unvested balance, end of period (in shares) | 3,897,957 | |
Weighted Average Grant Date Fair Value | ||
Unvested balance, beginning of period (in USD per share) | $ 24.85 | $ 27.88 |
Granted (in USD per share) | 23.43 | |
Vested (in USD per share) | 25.47 | |
Forfeited (in USD per share) | 29.18 | |
Unvested balance, end of period (in USD per share) | $ 24.85 |
Incentive Plans - Schedule of_2
Incentive Plans - Schedule of Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 36,670 | $ 61,463 | $ 31,697 |
Cost of direct salaries and benefits | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 233 | 357 | 317 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 29,849 | 42,970 | 24,459 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 5,974 | 17,570 | 6,718 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 614 | 566 | 203 |
Restricted Stock Awards (RSAs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 10 | 248 | 1,270 |
Restricted Stock Awards (RSAs) | Cost of direct salaries and benefits | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 0 | 8 | (5) |
Restricted Stock Awards (RSAs) | Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 6 | 133 | 1,078 |
Restricted Stock Awards (RSAs) | Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 4 | 106 | 230 |
Restricted Stock Awards (RSAs) | General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 0 | 1 | (33) |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 16,845 | 34,914 | 17,024 |
Restricted Stock Units (RSUs) | Cost of direct salaries and benefits | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 233 | 349 | 321 |
Restricted Stock Units (RSUs) | Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 10,030 | 16,536 | 9,978 |
Restricted Stock Units (RSUs) | Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 5,968 | 17,464 | 6,488 |
Restricted Stock Units (RSUs) | General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 614 | 565 | 237 |
Performance Restricted Stock Units (PSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 19,815 | $ 26,301 | $ 13,403 |
Net Income (Loss) per Common _3
Net Income (Loss) per Common Share - Schedule of Calculation of Basic and Diluted Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Basic: | |||
Net income (loss) attributable to Clear Secure, Inc. | $ 28,108 | $ (65,573) | $ (36,082) |
Common Class A | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Stock exchange ratio | 1 | ||
Basic: | |||
Net income (loss) attributable to Clear Secure, Inc. | $ 27,825 | (64,768) | (35,590) |
Add: reallocation of net loss attributable to non-controlling interests from the assumed exercise of certain warrants | (534) | ||
Net income (loss) attributable to Clear Secure, Inc. used to calculate net income per common share, basic | $ 27,825 | $ (64,768) | $ (36,124) |
Weighted-average number of shares outstanding, basic (in shares) | 89,695,439 | 80,824,548 | 72,537,156 |
Add: weighted-average number of shares from the assumed exercise of certain warrants (in shares) | 292,636 | 2,978,086 | |
Weighted-average number of shares outstanding used to calculate net loss per common share, basic (in shares) | 89,695,439 | 81,117,184 | 75,515,242 |
Net income (loss) per common share, basic (in USD per share) | $ 0.31 | $ (0.80) | $ (0.48) |
Diluted: | |||
Net income (loss) attributable to Clear Secure, Inc. used to calculate net income per common share, basic | $ 27,825 | $ (64,768) | $ (36,124) |
Add: reallocation of net income (loss) to Clear Secure, Inc. to reflect dilutive impact | (25) | ||
Net income (loss) attributable to Clear Secure, Inc. used to calculate net loss per common share, diluted | $ 27,800 | ||
Weighted-average number of shares outstanding used to calculate net loss per common share, basic (in shares) | 89,695,439 | 81,117,184 | 75,515,242 |
Effect of dilutive shares (in shares) | 1,014,372 | 0 | 0 |
Weighted-average number of shares outstanding, diluted (in shares) | 90,709,811 | 81,117,184 | 75,515,242 |
Net loss per common share, diluted (in USD per share) | $ 0.31 | $ (0.80) | $ (0.48) |
Common Class B | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Stock exchange ratio | 1 | ||
Basic: | |||
Net income (loss) attributable to Clear Secure, Inc. | $ 282 | $ (805) | $ (492) |
Add: reallocation of net loss attributable to non-controlling interests from the assumed exercise of certain warrants | (7) | ||
Net income (loss) attributable to Clear Secure, Inc. used to calculate net income per common share, basic | $ 282 | $ (805) | $ (499) |
Weighted-average number of shares outstanding, basic (in shares) | 907,234 | 1,007,686 | 1,042,234 |
Add: weighted-average number of shares from the assumed exercise of certain warrants (in shares) | 0 | 0 | |
Weighted-average number of shares outstanding used to calculate net loss per common share, basic (in shares) | 907,234 | 1,007,686 | 1,042,234 |
Net income (loss) per common share, basic (in USD per share) | $ 0.31 | $ (0.80) | $ (0.48) |
Diluted: | |||
Net income (loss) attributable to Clear Secure, Inc. used to calculate net income per common share, basic | $ 282 | $ (805) | $ (499) |
Add: reallocation of net income (loss) to Clear Secure, Inc. to reflect dilutive impact | (4) | ||
Net income (loss) attributable to Clear Secure, Inc. used to calculate net loss per common share, diluted | $ 278 | ||
Weighted-average number of shares outstanding used to calculate net loss per common share, basic (in shares) | 907,234 | 1,007,686 | 1,042,234 |
Effect of dilutive shares (in shares) | 0 | 0 | 0 |
Weighted-average number of shares outstanding, diluted (in shares) | 907,234 | 1,007,686 | 1,042,234 |
Net loss per common share, diluted (in USD per share) | $ 0.31 | $ (0.80) | $ (0.48) |
Net Income (Loss) per Common _4
Net Income (Loss) per Common Share - Schedule of Anti-dilutive Securities (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Potentially dilutive shares (in shares) | 5,049,349 | ||
Common Class A | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Potentially dilutive shares (in shares) | 33,344,683 | 41,978,124 | 48,631,439 |
Common Class A | Exchangeable Alclear Units | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Potentially dilutive shares (in shares) | 32,234,914 | 38,290,964 | 44,598,167 |
Common Class A | RSA’s | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Potentially dilutive shares (in shares) | 0 | 236,279 | 1,429,883 |
Common Class A | RSU’s | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Potentially dilutive shares (in shares) | 1,109,769 | 3,450,881 | 2,603,389 |
Common Class B | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Potentially dilutive shares (in shares) | 25,796,690 | 25,796,690 | 26,709,821 |
Common Class B | Exchangeable Alclear Units | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Potentially dilutive shares (in shares) | 25,796,690 | 25,796,690 | 26,709,821 |
Common Class B | RSA’s | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Potentially dilutive shares (in shares) | 0 | 0 | 0 |
Common Class B | RSU’s | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Potentially dilutive shares (in shares) | 0 | 0 | 0 |
Net Income (Loss) per Common _5
Net Income (Loss) per Common Share - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 shares | |
Earnings Per Share [Abstract] | |
Potentially dilutive shares (in shares) | 5,049,349 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current | |||
Federal | $ 163 | $ 80 | $ 0 |
State | 1,005 | 266 | 207 |
Foreign | 278 | 63 | 26 |
Total current income taxes | 1,446 | 409 | 233 |
Deferred | |||
Federal | (747) | (822) | 0 |
State | 25 | (1,649) | 0 |
Foreign | 0 | 0 | 0 |
Total deferred income taxes | (722) | (2,471) | 0 |
Income tax expense (benefit) | $ 724 | $ (2,062) | $ 233 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Tax expense (benefit) at U.S. statutory rate | 21% | 21% | 21% |
Effect of flow-through entity | 0% | 0% | (9.40%) |
State taxes | 1.10% | (0.60%) | 2% |
Remeasurement of state tax | 1% | 1.70% | 0% |
Federal uncertain tax benefit | 1.20% | 0% | 0% |
Permanent differences | 0.10% | (0.20%) | 0% |
Non-controlling interest | (9.50%) | (8.90%) | (5.40%) |
Change in valuation allowance | (10.70%) | (11.50%) | (8.00%) |
R&D Credit | (3.10%) | 0.70% | 0% |
Other | 0.30% | (0.50%) | (0.40%) |
Effective income tax rate | 1.40% | 1.70% | (0.20%) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 1.40% | 1.70% | (0.20%) | |
Operating Loss Carryforwards [Line Items] | ||||
Effective income tax rate | 1.40% | 1.70% | (0.20%) | |
Income taxes paid | $ 1,632 | |||
Uncertain tax positions | $ 1,136 | $ 437 | $ 87 | $ 0 |
Percent of savings for holders | 0.85 | |||
Percent of savings for the company | 0.15 | |||
Tax receivable agreement, liabilities | $ 91,096 | |||
Alclear Holdings LLC | ||||
Operating Loss Carryforwards [Line Items] | ||||
Payments of tax distributions, net of tax withholdings | 13,255 | |||
Tax distribution liability | $ 20,690 | |||
Common Class A | ||||
Operating Loss Carryforwards [Line Items] | ||||
Issuance of stock, net of costs (in shares) | shares | 6,056,050 | |||
Federal | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax loss carryforwards | $ 54,673 | |||
Foreign | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax loss carryforwards | 337 | |||
State | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax loss carryforwards | 29,445 | |||
Operating loss carryforwards, subject to expiration | $ 19,587 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | |||
Lease liability | $ 506 | $ 393 | |
R&D credit | 2,591 | 1,676 | |
Accrued expenses | 9 | 2 | |
Stock-based compensation | 446 | 293 | |
Investment in partnership | 214,711 | 187,969 | |
Other | 735 | 194 | |
Net operating loss | 13,357 | 16,870 | |
Gross deferred tax assets | 232,355 | 207,397 | |
Depreciation and amortization | (3,531) | (3,520) | |
Prepaid expenses and other | (49) | (39) | |
ROU asset | (460) | (373) | |
Gross deferred tax liabilities | (4,040) | (3,932) | |
Deferred income tax assets before valuation allowance | 228,315 | 203,465 | |
Valuation allowance | (230,026) | (205,900) | $ (176,381) |
Net deferred tax asset (liability) | $ (1,711) | $ (2,435) |
Income Taxes - Schedule of Valu
Income Taxes - Schedule of Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Deferred Tax Assets, Valuation Allowance [Roll Forward] | ||
Balance as of January 1 | $ 205,900 | $ 176,381 |
Additions to valuation allowance through income tax expense | 0 | 265 |
Additions to valuation allowance through equity | 27,092 | 29,270 |
Additions to valuation allowance through goodwill | 0 | (16) |
Release of valuation allowance through income tax expense | (2,966) | 0 |
Balance as of December 31 | $ 230,026 | $ 205,900 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance as of January 1 | $ 437 | $ 87 | $ 0 |
Gross increases - tax positions in prior period | 467 | 350 | 87 |
Gross decreases - tax positions in prior period | 0 | 0 | |
Gross increases - tax positions in current period | 232 | 0 | 0 |
Settlement | 0 | 0 | |
Lapse of statute of limitations | 0 | 0 | 0 |
Balance as of December 31 | $ 1,136 | $ 437 | $ 87 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Long-term Purchase Commitment [Line Items] | |||
Long-term purchase commitment, amount | $ 1,917 | ||
Marketing expense | 5,508 | $ 4,898 | $ 3,585 |
General and administrative | |||
Long-term Purchase Commitment [Line Items] | |||
Long-term purchase commitment, amount | $ 9,268 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Payments (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2024 | $ 20,798 |
2025 | 15,725 |
2026 | 6,775 |
2027 | 5,991 |
2028 | 4,774 |
Thereafter | 938 |
Total | $ 55,001 |
Related-Party Transactions - Na
Related-Party Transactions - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Cost of revenue share fee | $ 88,647 | $ 56,267 | $ 37,206 |
Related Party | |||
Related Party Transaction [Line Items] | |||
Accounts payable | 3,508 | 2,836 | |
Cost of revenue share fee | $ 12,524 | $ 7,739 | $ 6,640 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Discretionary contribution amount | $ 2,045 | $ 1,383 | $ 1,013 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 1 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Apr. 30, 2021 | |
Line of Credit Facility [Line Items] | ||||
Debt issuance costs | $ 396,000 | |||
Prepaid loan fees | 419,000 | $ 362,000 | ||
Remaining borrowing capacity | 68,406,000 | |||
Revolving credit facility | Credit Agreement April 2021 | ||||
Line of Credit Facility [Line Items] | ||||
Long-term line of credit | 0 | |||
Revolving credit facility | Line of credit | Credit Agreement March 30, 2020 | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument term (in years) | 3 years | |||
Maximum borrowing capacity | $ 50,000,000 | |||
Long-term line of credit | $ 0 | |||
Revolving credit facility | Line of credit | Credit Agreement April 2021 | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 100,000,000 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Feb. 15, 2024 | Nov. 08, 2023 | Aug. 02, 2023 | May 09, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Subsequent Event [Line Items] | |||||||
Common stock, dividends (in dollars per share) | $ 0.09 | $ 0.07 | $ 0.20 | ||||
Repurchase and retirement of equity | $ 69,673 | $ 4,902 | |||||
Subsequent Event | Forecast | |||||||
Subsequent Event [Line Items] | |||||||
Repurchase and retirement of equity | $ 5,204 | ||||||
Repurchase and retirement of equity (in shares) | 289,196 | ||||||
Repurchase and retirement of equity (usd per share) | $ 17.99 | ||||||
Common Class A | |||||||
Subsequent Event [Line Items] | |||||||
Repurchase and retirement of equity | $ 69,673 | ||||||
Repurchase and retirement of equity (in shares) | 3,112,694,000 | ||||||
Common Class A | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Common stock, dividends (in dollars per share) | $ 0.09 | ||||||
Common Class B | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Common stock, dividends (in dollars per share) | $ 0.09 |
Uncategorized Items - you-20231
Label | Element | Value |
Noncontrolling Interest [Member] | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | $ (32,241,000) |
Retained Earnings [Member] | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | (46,848,000) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | (36,082,000) |
Parent [Member] | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | (36,082,000) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | $ (46,848,000) |