Clear Secure : Shareholder Letter Q1 2024

Shareholder Letter

Q1 2024

Shareholder Letter

Q1 2024

First Quarter 2024 Financial Highlights

(all figures are for First Quarter 2024 and percentage change is expressed as year-over-year, unless otherwise specified)*

Revenue of $179.0 million was up 35.3% while Total Bookings of $180.6 million were up 20.6%

Operating income of $23.7 million; Adjusted EBITDA of $40.9 million

Net Income of $32.1 million, Earnings per Common Share Basic and Diluted of $0.20

Net cash provided by operating activities of $80.3 million; Free Cash Flow of $77.6 million

Q124 results include: (1) $3.1 million of NextGen Identity+ related expenses, (2) $0.9 million of cash severance expenses and (3) $1.8 million of COVID-19 relief benefits

Share repurchase activity: 4,416,759 shares at an average price of $19.22 in Q124

Active in 57 CLEAR Plus airports with the launch of Kahului Airport (Maui) in April

Renewed American Express partnership for an additional year

TSA PreCheck® Enrollment Provided by CLEAR: online renewal available nationwide and live in 6 airports

"In the first quarter we executed on our three key priorities-improving the Member experience, scaling TSA PreCheck®, and scaling CLEAR Verified. Our financial results demonstrate our continued focus on profitable growth-with significant incremental margins and strong Free Cash Flow enabling aggressive capital return," said Caryn Seidman Becker, CLEAR's CEO

• A reconciliation of non-GAAP financial measures to the most comparable GAAP measures is provided at the end of this letter.

Clear Secure, Inc. | Q1 2024 | Page 2

Shareholder Letter

Q1 2024

Total GAAP Revenue & Bookings

				$191.7		$195.3	$180.6
	$149.7	$149.9	$175.1	$160.4	$171.0	$179.0
$132.4

Q1 '23	Q2 '23	Q3 '23	Q4 '23
	2023
			Revenue			Total Bookings

in millions

Q1 '24

2024

Total Cumulative Enrollments

16,20217,38518,594

20,194

21,941

Q1 '23	Q2 '23	Q3 '23	Q4 '23
		2023

Q1 '24

2024

in thousands

Clear Secure, Inc. | Q1 2024 | Page 3

Shareholder Letter

Q1 2024

Total Cumulative Platform Uses

141,106

154,317

167,417

180,807 192,610

Q1 '23	Q2 '23	Q3 '23	Q4 '23
		2023

Q1 '24

2024

in thousands

Annual CLEAR Plus Net Member Retention

91.3%	90.7%	88.5%	86.3%
		84.0%

Q1 '23		Q2 '23		Q3 '23		Q4 '23
			2023

Q1 '24

2024

Clear Secure, Inc. | Q1 2024 | Page 4

Shareholder Letter

Q1 2024

Active CLEAR Plus Members

6,7206,798

6,374

6,183

5,711

Q1 '23	Q2 '23	Q3 '23	Q4 '23
		2023

Q1 '24

2024

in thousands

Annual CLEAR Plus Member Usage

8.8x	8.7x	8.5x

8.1x

7.8x

Q1 '23	Q2 '23	Q3 '23	Q4 '23
		2023

Q1 '24

2024

Clear Secure, Inc. | Q1 2024 | Page 5

Shareholder Letter

Q1 2024

Annual CLEAR Plus Gross Dollar Retention

82.5%			82.1%	84.5%	87.7%	88.0%	89.3%	89.8%
	80.3%
76.7%

Q1 '22	Q2 '22	Q3 '22	Q4 '22
		2022

Q1 '23	Q2 '23	Q3 '23	Q4 '23
		2023

Q1 '24

2024

Clear Secure, Inc. | Q1 2024 | Page 6

Shareholder Letter

Q1 2024

Dear Shareholder,

This quarter we continued our focus on improving the Member experience, launching new products to serve all travelers and building momentum in CLEAR Verified, our enterprise identity platform.

The CLEAR Lane of the Future is rolling out nationwide. With over 90% of traffic upgraded to NextGen Identity+, IDs are staying in pockets and verifications are faster. Lane experience scores have been climbing since February as NextGen upgrades peaked and we introduced new automation. Face-first verifications are launching next, so Members won't have to break stride. We expect further gains in experience and reduction in average wait times.

We are live with TSA PreCheck® Enrollment Provided by CLEAR for both renewals and new enrollments (https://tsaprecheckbyclear.tsa.dhs.gov). We plan to roll out enrollment locations nationwide this year, subject to TSA approval. Convenience is crucial for TSA PreCheck®-you have to meet travelers where they are. With CLEAR you can renew or enroll at a lower cost from 5AM to 9PM* daily with no appointment necessary. There are approximately 90 million people in the United States that fly two or more times a year without TSA PreCheck®; we believe these travelers should enroll in TSA PreCheck® and enjoy the benefits. With the breadth of our airport network, our recently announced Staples partnership and mobile pop-ups-CLEAR is bringing TSA PreCheck® to more people, in more places, at a lower cost.

Aligned with our philosophy of meeting travelers where they are and bringing friction-free travel across the country-we launched a CLEAR Mobile pilot in Louisville, KY-just in time for the Kentucky Derby and the PGA Tour. CLEAR Mobile Lanes are capital-light and expand our airport network to smaller, seasonal, or event-driven markets. CLEAR Mobile allows travelers to access this fast lane on a pay-per-use basis using a QR code (no biometrics necessary). CLEAR Plus Members have on-demand access to these Mobile Lanes included in their Membership. Importantly, we can also include TSA PreCheck® enrollment services for these smaller and often underserved markets.

CLEAR Verified continued to build momentum in the quarter, as trust and safety are paramount. Verified enrollments were a key driver of the 1.75 million increase in Total Cumulative Enrollments. We expanded our partnership with LinkedIn, signed new partners across multiple verticals, and continued to build our sales pipeline. Our CLEAR Verified Account Recovery product has never been more important as entire enterprises have been taken offline for extended periods due to falsified credentials and unauthorized access. CLEAR Check-in is going live with our first partner introducing seamless physical check-in to your doctor appointment. We also launched identity verification ensuring you are who you say you are for in-store retail fraud reduction. Importantly, CLEAR's identity products leverage our existing platform and bring instant-on access to over 22 million Members

as of today.

Since Day 1, we have been focused on total Members, Bookings, and Free Cash Flow. Our platform and network continue to expand and while we are seeing higher customer demand for our services we need to ensure pricing is in line with the value we are delivering. There is a significant average revenue per user ("ARPU") gap across our Member base due to historical free or deeply discounted partner pricing-recent price increases across various channels have begun to close that gap with

* Hours vary by location; indicative hours of operation presented.

Clear Secure, Inc. | Q1 2024 | Page 7

Shareholder Letter

Q1 2024

modest impact on Member retention. Consistent with our focus on growing ARPU and our approach to value creation, this quarter we introduced a dollar based retention metric. Specifically, Annual CLEAR Plus Gross Dollar Retention measures our success growing ARPU, upselling family memberships and introducing value-added services while optimizing lane experience.

Year-to-date we repurchased approximately 4% of our shares, leveraging higher Free Cash Flow over fewer shares outstanding. We are confident in our ability to drive Bookings, expand margins and grow Free Cash Flow.

Best,

Clear Secure, Inc. | Q1 2024 | Page 8

Shareholder Letter

Q1 2024

First Quarter 2024 Financial Discussion

First quarter 2024 Revenue of $179.0 million grew 35.3% as compared to the first quarter of 2023 while Total Bookings of $180.6 million grew 20.6%. Revenue and Total Bookings benefited from Member growth and price increases.

First quarter 2024 Total Cumulative Enrollments reached 21.9 million, up 1.7 million sequentially driven by growth in CLEAR Verified enrollments, and CLEAR Plus enrollments at existing and new airports.

First quarter 2024 Active CLEAR Plus Members reached 6.8 million, up 19.0% as compared to the first quarter of 2023 driven by airport, partner and organic channels in existing and new markets.

First quarter 2024 Total Cumulative Platform Uses reached 192.6 million, driven primarily by CLEAR Plus verifications.

First quarter 2024 Annualized CLEAR Plus Member Usage was 7.8x, down 11% as compared to the first quarter of 2023.

We are including a new dollar retention metric, consistent with our focus on growing ARPU and representing how we are optimizing the overall CLEAR Plus business. First quarter 2024 Annual CLEAR Plus Gross Dollar Retention was 89.8%, up 530 basis points year-over-year and 50 basis points sequentially, driven by a reduction in the discounts available to the airline channel and family membership price increases. The metric is gross and therefore does not include the benefit of reactivations, which would add an additional 570 basis points. First quarter 2024 Annual CLEAR Plus Net Member Retention was 84.0%, down 730 basis points year-over-year and down 230 basis points sequentially.

Cost of revenue share fee was $24.4 million in the first quarter of 2024 and includes a COVID-19 related benefit of $1.8 million. Excluding COVID-related benefits in all periods, cost of revenue share fee as a percentage of revenue was down 65 basis points year-over-year and down 25 basis points sequentially. Cost of revenue share fee percentage may vary by quarter, but on an annual basis we expect it to remain relatively stable over time.

Cost of direct salaries and benefits was $40.3 million in the first quarter of 2024 and includes approximately $2.0 million of surge staffing related to NextGen Identity+ upgrades. Excluding the surge staffing as well as previously disclosed prior-period surge staffing and prior-periodnon-cash items, cost of direct salaries and benefits expense of $38.3 million was up 15.6% year-over-year, and down 0.5% sequentially; as a percentage of revenue it was down 364 basis points year-over-year and down 112 basis points sequentially. We continue to expect cost of direct salaries and benefits in 2024 to decline as a percentage of revenues on a full year basis versus 2023.

Research and development expense of $20.1 million in the first quarter of 2024 includes $0.9 million of severance expense. Excluding severance as well as previously disclosed prior-periodnon-cash

Clear Secure, Inc. | Q1 2024 | Page 9

Shareholder Letter

Q1 2024

First Quarter 2024 Financial Discussion (Cont.)

items, research and development expense of $19.2 million was down 6.8% year-over-year and down 7.2% sequentially; as a percentage of revenue it was down 483 basis points year-over-year and down 138 basis points sequentially. We continue to expect research and development expense in 2024 to decline as a percentage of revenues on a full year basis versus 2023.

Sales and marketing expense was $11.6 million in the first quarter of 2024. Excluding previously disclosed prior-periodnon-cash items, sales and marketing expense increased 20.4% year-over-year and decreased 14.1% sequentially; as a percentage of revenue it was down 80 basis points year-over- year and down 142 basis points sequentially. While we continue to expect sales and marketing expense in 2024 to decline as a percentage of revenues on a full year basis versus 2023, we will invest in marketing on an opportunistic basis.

General and administrative expense of $52.9 million in the first quarter of 2024 includes $1.1 million of NextGen Identity+ expenses. Excluding NextGen Identity+ expenses as well as previously disclosed prior-period NextGen Identity+ expenses and prior-periodnon-cash items, general and administrative expense of $51.8 million declined 4.4% year-over-year and 4.0% sequentially; as a percentage of revenue general and administrative expense was down 1,201 basis points year-over- year and 263 basis points sequentially. We continue to expect general and administrative expense in 2024 to decline as a percentage of revenues on a full year basis versus 2023.

Stock compensation expense was $10.7 million in the first quarter of 2024. Excluding previously disclosed prior-periodnon-cash items, stock compensation expense of $10.7 million was down 29.7% year-over-year and 9.7% sequentially.

Operating Income of $23.7 million in the first quarter of 2024 includes a $1.8 million COVID-related benefit to cost of revenue share fees, $0.9 million of severance expense and $3.1 million of NextGen Identity+ expenses. Excluding the COVID-related benefit and severance and NextGen Identity+ expenses, as well as previously disclosed prior-period NextGen Identity+ and prior-periodnon-cash items, Operating Income was $25.9 million; as a percentage of revenue it was up 2,244 basis points year-over-year and 704 basis points sequentially.

Net Income in the first quarter 2024 was $32.1 million, Earnings per Common Share, Basic and Diluted was $0.20.

First quarter 2024 net cash provided by operating activities was $80.3 million, Free Cash Flow was $77.6 million and Adjusted EBITDA was $40.9 million.

As of March 31, 2024, our cash and cash equivalents, marketable securities and restricted cash, totaled $702 million.

As of May 3, 2024, the following shares of common stock were outstanding: Class A Common Stock 93,022,861, Class B Common Stock 907,234, Class C Common Stock 25,103,193, and Class D Common Stock 25,796,690 totaling 144,829,978 shares of common stock.

Clear Secure, Inc. | Q1 2024 | Page 10