Company will slash costs this year to keep earnings on track.
Clarivate Analytics (NYSE: CCC), parent company of MarkMonitor’s domain name business, released earnings today.
Revenues were up 2.8% year-over-year for the first quarter of 2020, coming in at $240.6 million. The company had a net loss of $74.0 million but its Adjusted EBITDA number climbed 32.% year-over-year to $78.2 million. Adjusted net income was $25.5 million.
The company expects a revenue hit this year due to Covid-19 and is slashing costs to compensate. It has lowered its annual adjusted revenue guidance from $1.16 billion to $1.19 billion down to $1.13 billion to $1.16 billion.
It plans to cut costs $30 million this year due to Covid, on top of the $70-$75 million it cut in 2019. $5 million of the $30 million will be permanent savings. This should keep its adjusted measures on track to meet prior guidance.
Its guidance is predicated on the virus being brought under control by the end of Q2, a gradual lifting of restrictions/movement of labor in mid-to-late Q3, and a recovery starting in early Q4.