Clarivate Plc

Thank you for standing by. At this time, I would like to welcome everyone to today's Clarivate Q3 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star followed by the number one on your telephone keypad. Once again, star one. And if you'd like to withdraw your question, simply press star one again. Thank you. I would now like to turn the call over to Mark Donahue, head of investor relations. Mark.

Thank you, Greg. Good morning, everyone. Thank you for joining us for the Clarivate third quarter 2025 earnings conference call. As a reminder, this conference call is being recorded and webcast and is copyrighted property of Clarivate. Any rebroadcast of this information in whole or in part without prior written consent of Clarivate is prohibited. And the accompanying earnings call presentation is available in the investor relations section of the company's website. During our call, we may make certain forward-looking statements within the meaning of the applicable securities laws. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of the business or developments in Clarivate's industry to differ materially from the anticipated results, performance, achievements, or developments expressed or implied by such forward-looking statements. Information about the factors that cause actual results to differ materially from anticipated results or performance can be found in Clarivate's files at the SEC and on the company's website. Our discussion will include non-GAAP measures or adjusted numbers. Clarivate believes non-GAAP results are useful in order to enhance understanding of our ongoing operating performance, but they are supplement to and should not be considered in isolation from or as a substitute for GAAP financial measures. Reconciliations of these measures, the GAAP measures, are available on our earnings release and supplemental presentation on our website. With me today are Mahdi Shemtov, Chief Executive Officer, and Jonathan Collins, Chief Financial Officer. After our prepared remarks, we'll open the call to your questions. And with that, it's a pleasure to turn the call over to Mahdi.

Good morning, everyone. Thank you for joining us today as we review Clarified's performance for the third quarter 2025. On slide six, I'm pleased to share that our results this quarter reflect continuous progress in our value creation plan, improved operational and financial results, and strong commitment to deliver value for our shareholders. Our forward-looking metrics, such as annual contracts value continued to improve to 1.6%, making a 30 basis point sequential improvement, driven by 2% ACV growth across academia and government and life science and health. Our renewal rate of 93%, an important indicator, was up 100 basis points year over year. Our free cash flow generation continued to support our balanced capital allocation, including or $150 million of opportunistic share repurchases, year-to-date, as well as $100 million of debts paid down. These results are testament to our team's dedication and the ongoing progress of our value creation plan. Jonathan will cover the quarterly result in more detail shortly. Our VCP on the Site 7, our VCP is driving improved focus, growth, and innovation across the business. We are accelerating product and AI development by investing in proprietary assets and collaborating very closely with our customers. Over the past year, we have launched 12 products and AI-powered capabilities across our segments. We expect this R&D investment to result in higher organic growth and improved renewal rates in the future. Our sales execution has improved, supported stronger customer engagement and revenue retention, and helping us achieve our organic growth outlook through the first nine months of 2025. We remain committed to optimizing our business model with a focus on increasing our core subscription and reoccurring mix to improve predictability as evidenced by the 8% improvement this year compared to last year. And our portfolio rationalization is enhancing our execution focus and capital allocation, which is expected to unlock greater value. turning to ANG segment. Positive sales performance, including 2% ACV growth, is contributor to predictable top-line results driven by our transition from transactional sales of digital collection and books to subscription-based revenue streams. This transition has resulted in our ANG subscription mix now at 93% compared to 81% last year i believe this this was clearly the right decision and i want to acknowledge our teams for the great work in assisting our customer through this transition we are pleased with the progress to date as we have secured more than 100 contracts for our new content subscription framework driven by the new offerings such as progress data collection and ProQuest eBooks. We continue to see strong renewal patterns with 90% of global A&G subscription for the full year successfully renewed through October 27. We are also pleased to share with you that we have completed a multi-million dollar renewals of Web of Science with the largest library consortium in the United States. Considering the increased constraint on higher education research funding, especially in the U.S., this renewal underscores the continued value that our solution delivers to major research institutions nationwide. Our global reach is unmatched, as evidenced by just some of the large international deals We have shared with you this year, including the British Library, Canadian Research Knowledge Network, and CAPES in Brazil. Recently, we finalized an agreement with the University of Melbourne, Australia's premier university. The deployment includes library workflow solution, which provides comprehensive support for library management, resource discovery, resource sharing, and reading list creation. Moving to the intellectual property segment. For the first nine months, the patent and trademark maintenance services reoccurring revenue was flat compared to the same period last year. We are encouraged by this, as it represents 3% improvement in the organic growth rate relative to the full year of 2024. While these results show improvement, we are committing to returning the segment to sustainable growth. With Maroun Mourad as our new president of IEP, we are confident we will drive continued progress across the business by increasing agility and streamlined processes, as well as market recovery. We continue to invest in AI-based products and service innovation while maintaining leadership a leadership position in the global IP ecosystem. For instance, IP4IO introduced an AI-powered product taxonomy that automate product patent mapping. It enables companies to better identify which product correspond to the patent, a valuable tool for large patent holders making strategic portfolio decision. We continue to make improvement to the Derwent platform with cutting edge AI innovation, which is being integrated throughout the patent management workflow. An exciting addition in this, an exciting addition is the Derwent Patent Monitor, an AI threat rating feature, empowering clients to identify potentially high risk competitor filings. This achievement allow users to proactively safeguard the intellectual property portfolio and help mitigate risks. During the third quarter, we were chosen to supply China Petrochemical Corporation, mainland China's largest oil and petrochemical supplier with intellectual property solution and the Web of Science platform. This cross-sell collaboration is a testament to our ability to leverage expertise and provide customers with solutions that meet all IP and research needs. Moving to life science and health segment. I am personally excited it has returned to 2% ACV growth this year. The business has demonstrated strong performance by introducing new products and advancing AI integration through improved offering and specialized expertise within our life science platform. We recently launched DRG Commercial Analytics 360, a data analytics tool aimed specifically at the meta sector. We were pleased to partner with BioVentus, a global autobiologics leader, to leverage this new offering. This comprehensive analytic platform will assist BioVentus in making more informed decisions to enhance product adoption, improve patient outcomes, and strengthen its position as a global leader. In September, we introduced our AI-powered regulatory assistant in Cortelis Regulatory Intelligence to help professionals manage global requirements more efficiently. Developed with customer feedback and tested by industry partners, it meets the needs of biopharma, medtech, and clinical research organizations. With new features such as conversational AI with reference, answers, and multilingual capabilities, it allows users to search and interact in preferred languages. We also embedded additional, we are also embedding additional AI agents across the existing live science offering, as well as launching new AI native product. We expect this offering to help us expand ACV going forward. On the next slide, I'm pleased with the significant progress we have made by executing our value creation plan across all three segments. We introduce AI-powered solutions, including web of science, research intelligence, AI agent, trademark opposition assistant, risk mark, and search and regulatory functionality within Cortellis. We have also driven internal cost efficiency, scaled our customer success teams, and improved sales execution. This action has optimized our business model and accelerated innovation, across our portfolio. As we look ahead to 2026, our focus remains on executing our robust value creation plan while driving innovation and operational excellence across Clarivate. We will continue the rapid deployment of agentic AI, embedding it across customer workflows and segments, Building on our momentum, we will release new AI-native solutions and extending AI-powered capabilities across our flagship portfolio. Accelerating AI innovation at scale is a top priority as we're driving organic ACV and recurring revenue growth through focused sales execution. We will aim to continue to boost sales productivity by focusing on our people processes, and tools, leveraging AI insights, engaging customers to support ongoing account growth, and improving commercial execution. We believe operational efficiency and margin expansion will be achieved by utilizing agentic AI and embedding organization-wide AI adoption for cost efficiencies. Finally, we are streaming our business model in making focus and market focus by completing our exit from ANG transactional books sales and the life science real world data resell market, reselling market. Strategic alternatives. Earlier, early this year, we have highlighted that we are actively progressing through a comprehensive review and assessment of strategic alternatives As we communicated to you in July, we are making good progress and expect to share more details with you when we report our fourth quarter results in February, 2026. In closing, our performance this year is starting to demonstrate clear and positive momentum across our core financial metrics. We remain on track. to deliver our 2025 financial guidance. We have achieved sequential and year-over-year improvement in organic ACV to 1.6% and renewal rate to 93%. Recurring organic revenue growth has improved to 0.6% for the first nine months of 2025, compared to 0.1% last year. And organic revenue mix has risen to 88%, up from 80%. in 2024. These results reflect our commitment to driving sustainable growth and operational excellence. As we look forward, we are confident that our strong foundation and ongoing momentum position us well to create shareholder value. Thank you for your continued support and an interest in Clarivate. We look forward to updating you on our progress in the quarters to come, and I'd like to now to turn the call over to Jonathan for a review of our financial results. Thank you.