Hello,

GSP & MKE

Shareholder Letter

Q2 2022

Shareholder Letter

Q2 2022

Second Quarter 2022 Financial Highlights

(all figures are for Second Quarter 2022 and percentage change is expressed as year-over-year, unless otherwise specified)*

Revenue of $102.7 million was up 86.2% while Total Bookings of $122.9 million were up 75.6%

Net cash provided by operating activities of $50.9 million; Free Cash Flow of $41.2 million

Total Cumulative Enrollments of 13.1 million were up 107.2%

Annual CLEAR Plus Net Member Retention of 94.3% was up 1,370 basis points year-over-year and down 100 basis points sequentially

Total Cumulative Platform Uses of 106.6 million were up 62.8%

Net loss ($12.3) million; Adjusted net income $0.5 million; Adjusted EBITDA $3.5 million

Net loss per common share basic and diluted ($0.09); Adjusted net income per common share, basic and diluted $0.00

Launched Greer, SC and Milwaukee, WI bringing total CLEAR Plus airports to 45

Launched virtual queueing in JFK Terminal 4 and Newark Terminal B; now live in 7 airports

Launched Powered by CLEAR verification SDK, a low-code single app solution for mobile web experiences or native mobile applications

  • We are proud of our team's execution in the second quarter - ensuring frictionless experiences and breaking new quarterly airport enrollment and verification records. The current travel environment highlights the imperative for CLEAR's future facing innovations to ensure travelers enjoy the seamless experience they rightfully deserve and have in so many other settings. Our platform team also
    reached a significant milestone, shipping our new Powered by CLEAR low-code, single app partner solution."

-CarynSeidman-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. | Q2 2022 | Page 1

Shareholder Letter

Q2 2022

Total Bookings & GAAP Revenue

in millions

Total Cumulative Enrollments

in thousands

Clear Secure, Inc. | Q2 2022 | Page 2

Shareholder Letter

Q2 2022

Total Cumulative Platform Uses

in thousands

Annual CLEAR Plus Net Member Retention

Clear Secure, Inc. | Q2 2022 | Page 3

Shareholder Letter

Q2 2022

Dear Shareholder,

Our goal in these quarterly letters is to give our shareholders (to the extent you are not a quantitative algorithm) insights into our thought process, strategy, underlying economics of our business as well as other macro or micro perspectives.

In our last letter, we discussed our obsession with our members' experience and how we have earned the right to bring CLEAR to new places. This concept of enrolling once and using your identity (connecting you to all the things that make you, YOU) everywhere for frictionless experiences creates new product offerings and additional nodes in the CLEAR network. CLEAR has become a classic network effect business creating value for both our members and our shareholders.

The power of the network effect has been well demonstrated throughout history in various businesses. The value of CLEAR increases exponentially as we add new airports and new use cases fueling the CLEAR flywheel that we have spoken about. When our airport network accelerated in 2016, we saw first hand the power of network effect economics-metrics including utilization, new joins, cost of acquisition and retention all improved dramatically.

Retention is the lifeblood of a subscription business-a direct reflection of the member experience and the ultimate gauge of the value of the network. Retention can be best illustrated using retention curves which isolate factors such as unique member cohorts, various utilization metrics and join date (vintage) to calculate member lifetime value. Specifically, these curves demonstrate what percentage of a particular cohort of members are still active (paying) at various points in time.

CLEAR's retention curves demonstrate increasing levels of Year 1 retention for newer members as well as members who use CLEAR in multiple places. These improving curves reflect our ability to scale the business while yielding stronger unit economics. We also see very high levels of retention after Year 1 which provides a significant tailwind to our overall member retention and lifetime value. Although the pandemic temporarily impacted these trends, during the subsequent travel rebound many members who could be considered 'excess churn' reactivated and came back to CLEAR.

New products and innovation will further our network expansion and the continued increase in our total addressable market. We have just launched our new Powered by CLEAR verification SDK, available for mobile web experiences and native mobile applications. This low-code integration creates a single app solution for our partners enabling a frictionless experience for their customers in both digital and physical environments. We are excited to welcome new partners to our network creating new 'nodes' for our +13 million existing CLEAR members and ensuring rapid adoption for our partners.

Our second quarter 2022 results and third quarter guidance reflect continued broad-based strength across business lines and the power of the network effect. Second quarter 2022 was our

Clear Secure, Inc. | Q2 2022 | Page 4

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Clear Secure Inc. published this content on 15 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 August 2022 10:42:14 UTC.