Clear Files for IPO in a Year Business Travelers Are Staying Away From Airports
Skift Take
The tech company Clear is hoping an IPO will help it fast-track a path to profitability. But for 11 years, it has been faster at speeding up security lanes than in getting to breakeven.
After 11 years, Clear Secure, the airport screening company, still isn't profitable, but CEO Caryn Seidman-Becker has seemingly turned it into IPO material. When will the breakthrough come?
The biometric identity company filed for an initial public offering, eyeing listing its shares on the New York Stock Exchange under the symbol YOU.
Strategic equity holders include Delta Air Lines (with a 5 percent equity stake) and United Airlines. It has partnerships with those carriers. For example, Delta and United offer discounted or free pricing for Clear's expedited screening offering at airports to members of their frequent flyer programs.
Clear is launching its public roadshow despite a year when pandemic restrictions kept most U.S. travelers stuck at home. The company said in financial filings released late Monday that its sales fell to $50.5 million in the three months ended March 31.
The filing to go public is a landmark moment for Clear CEO Seidman-Becker, who took over the company and relaunched it in 2010 after a failed first launch as Verified Identity Pass, founded by Steven Brill after the 9/11 terrorist attacks.
That said, Clear has never had a profit. It listed losses of $9 million in 2020, and $13.1 million in the three months ending March 31.
But the recovery in domestic travel holds promise for the company.
"We look forward to more opportunities to work alongside Clear to continue to innovate and deliver new services for our customers," said United CEO Scott Kirby in a statement.
Clear has said its planned new features for airline partners include touchless lounge access and bag drop for members. Clear and Alaska Airlines have let flyers board on some flights by using their fingerprints for boardin
