Clear Secure Inc
For the period ended Jun 30, 2024. Filed Aug 6, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 6, 2024
YOU$55.81-1.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-08.
0001856314-24-000060
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-06.
0001856314-24-000108
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 152 previous paragraphs and 164 current paragraphs.
116 unchanged; 33 reworded; 10 added; 3 removed; 0 previous and 5 current paragraphs rearranged.
Tables are not compared: 26 previous and 26 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
Annual CLEAR Plus Gross Dollar Retention was 89.3% as of June 30, 2024 and 87.7% as of June 30, 2023, a year-over-year increase of 160 basis points. The year-over-year change was driven by pricing benefits, primarily from paying CLEAR Plus members on a family plan, and strong Member retention.
Current report
Annual Usage was 7.4x as of June 30, 2024 and 8.7x as of June 30, 2023, which represented a 15% decrease.
Current report
The Company generates additional revenue from TSA PreCheck® Enrollment Provided by CLEAR. The Company offers consumers increased choice in how and where to sign up for this popular trusted traveler program through both online and in person enrollments and renewals across multiple locations. The Company continues to launch additional locations on a rolling basis, subject to TSA approval. The Company recognizes the revenue from these services net of fees remitted to TSA and the Federal Bureau of Investigation within the Company’s condensed consolidated statements of operations. The Company recognizes these revenues on a per transaction basis upon completion of each enrollment or renewal.
Current report
Cost of direct salaries and benefits expenses increased by $13.0 million, or 19%, for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. The change was primarily due to increased employee compensation costs of $10.3 million caused by wage increases and higher average employee count.
Current report
Research and development expenses decreased by $4.9 million, or 22%, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. The change was primarily driven by a $4.5 million decrease in employee compensation costs.
Current report
Sales and marketing expenses increased by $0.2 million, or 2%, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. The change was primarily driven by a $2.1 million increase in higher discretionary marketing expense offset by a $2.0 million decrease in Ambassador commission expense.
Current report
General and administrative expenses decreased by $0.8 million, or 1%, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. The change was driven primarily by a decrease of $3.0 million in employee compensation cost and $1.6 million in professional service fees. The decrease was partially offset by a $3.5 million increase in technology costs.
Current report
Interest income, net increased by $4.4 million, for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. The change was primarily driven by higher interest rates.
Current report
Other income, net decreased by $0.2 million, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023.
Current report
Income tax expense
Removed paragraphs (3)
Previous report
Annual CLEAR Plus Gross Dollar Retention was 89.8% as of March 31, 2024 and 84.5% as of March 31, 2023, a year-over-year increase of 530 basis points. We view this new metric to be representative of underlying Member retention trends and less dependent upon the underlying growth rate of the total membership base versus Annual CLEAR Plus Net Member Retention.
Previous report
Annual Usage was 7.8x as of March 31, 2024 and 8.8x as of as of March 31, 2023, which represented a 11% decrease.
Previous report
Income tax (expense) benefit
Reworded paragraphs (33)
Previous wording
After the consummation of our IPO, we became subject to U.S. federal, state and local income taxes with respect to our allocable share of any taxable income of Alclear and will be taxed at the prevailing corporate tax rates. Alclear, is treated as flow-through entities for U.S. federal income tax purposes, and as such, has generally not been subject to U.S. federal income tax at the entity level. Accordingly, the historical results of operations and other financial information set forth in the Annual Report on Form 10-K do not include any material provisions for U.S. federal income tax for the periods prior to our IPO.
Current wording
After the consummation of our IPO, we became subject to U.S. federal, state and local income taxes with respect to our allocable share of any taxable income of Alclear and will be taxed at the prevailing corporate tax rates. Alclear is treated as flow-through entity for U.S. federal income tax purposes, and as such, has generally not been subject to U.S. federal income tax at the entity level. Accordingly, the historical results of operations and other financial information set forth in the Annual Report on Form 10-K do not include any material provisions for U.S. federal income tax for the periods prior to our IPO.
Previous wording
During the three months ended March 31, 2024, the Company recognized certain exchanges. As of March 31, 2024, the Company did not record a TRA liability as a result of these exchanges.
Current wording
During the three and six months ended June 30, 2024, the Company recognized certain exchanges. As of June 30, 2024, the Company did not record a TRA liability as a result of these exchanges.
Previous wording
Total Bookings increased by $30.9 million, or 21%, for the three months ended March 31, 2024 compared to the three months ended March 31, 2023. The increase was primarily driven by new Member enrollments, pricing increases, and strong retention of existing Members.
Current wording
Total Bookings increased by $21.9 million, or 13%, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. The increase was primarily driven by new Member enrollments, pricing increases, and strong retention of existing Members.
Previous wording
Total Cumulative Enrollments were 21,941 as of March 31, 2024 and 16,202 as of March 31, 2023, which represented a 35% increase. The year over year increase was driven by CLEAR Verified and CLEAR Plus enrollments.
Current wording
Total Cumulative Enrollments were 24,221 as of June 30, 2024 and 17,385 as of June 30, 2023, which represented a 39% increase. The year-over-year increase was driven by CLEAR Verified and CLEAR Plus enrollments.
Previous wording
Total Cumulative Platform Uses was 192,610 as of March 31, 2024 and 141,106 as of March 31, 2023, which represented a 37% increase, driven by CLEAR Plus verifications combined with increased contributions from CLEAR Verified uses.
Current wording
Total Cumulative Platform Uses was 206,673 as of June 30, 2024 and 154,317 as of June 30, 2023, which represented a 34% increase, driven by CLEAR Plus verifications combined with increased contributions from CLEAR Verified uses.
Previous wording
We define Annual CLEAR Plus Net Member Retention as one minus the CLEAR Plus net Member churn on a rolling 12 month basis. We define “CLEAR Plus net Member churn” as total cancellations net of winbacks in the trailing 12 month period divided by the average Active CLEAR Plus Members as of the beginning of each month within the same 12 month period. Winbacks are defined as reactivated Members who have been cancelled for at least 60 days. Active CLEAR Plus Members are defined as Members who have completed enrollment with CLEAR and have activated a payment method for our in-airport CLEAR Plus service, including their registered family plan Members. Active CLEAR Plus Members also include those in a grace period of up to 45 days after a billing failure during which time we attempt to collect updated payment information. Management views this metric as an important tool to analyze the level of engagement of our Member base, which can be a leading indicator of future growth and revenue, as well as an indicator of customer satisfaction and long term business economics.
Current wording
We define Annual CLEAR Plus Net Member Retention as one minus the CLEAR Plus net Member churn on a rolling 12 month basis. We define “CLEAR Plus net Member churn” as total cancellations net of winbacks in the trailing 12 month period divided by the average Active CLEAR Plus Members as of the beginning of each month within the same 12 month period. Winbacks are defined as reactivated Members who have been cancelled for at least 60 days. Active CLEAR Plus Members are defined as Members who have completed enrollment with CLEAR and have activated a payment method for our in-airport CLEAR Plus service, including their registered family plan Members. Active CLEAR Plus Members also include those in a grace period of up to 51 days after a billing failure during which time we attempt to collect updated payment information. Management views this metric as an important tool to analyze the level of engagement of our Member base, which can be a leading indicator of future growth and revenue, as well as an indicator of customer satisfaction and long term business economics.
Previous wording
Annual CLEAR Plus Net Member Retention was 84.0% as of March 31, 2024 and 91.3% as of March 31, 2023, a year-over year decrease of 730 basis points. The decline was primarily driven by a normalization of winbacks, a larger pool of Members up for renewal year over year, and NextGen Identity+ upgrades, which we prioritized over our typical focus on reactivating Members in the lane.
Current wording
Annual CLEAR Plus Net Member Retention was 83.2% as of June 30, 2024 and 90.7% as of June 30, 2023, a year-over year decrease of 750 basis points. The decrease was primarily driven by a larger pool of Members up for renewal year-over-year, a normalization of winbacks, and NextGen Identity+ upgrades, which we prioritized over our typical focus on reactivating Members in the lane.
Previous wording
Active CLEAR Plus Members was 6,798 as of March 31, 2024 and 5,711 as of March 31, 2023, which represented a 19% increase, driven by new Members added through new and existing airports as well as partner and organic channels.
Current wording
Active CLEAR Plus Members was 7,095 as of June 30, 2024 and 6,183 as of June 30, 2023, which represented a 15% increase, driven by new Members added through new and existing airports as well as partner and organic channels.
Previous wording
In addition to our results as determined in accordance with GAAP, we disclose Adjusted EBITDA, Free Cash Flow, Adjusted Net Income and Adjusted Net Income per Common Share, Basic and Diluted as non-GAAP financial measures that management believes provide useful information to investors. These measures are not financial measures calculated in accordance with GAAP and should not be considered as a substitute for net income (loss), net cash provided by (used in) operating activities or any other operating performance measure calculated in accordance with GAAP, and may not be comparable to a similarly titled measure reported by other companies. Our Non-GAAP financial measures are expressed in thousands.
Current wording
In addition to our results as determined in accordance with GAAP, we disclose Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Adjusted Net Income and Adjusted Net Income per Common Share, Basic and Diluted as non-GAAP financial measures that management believes provide useful information to investors. These measures are not financial measures calculated in accordance with GAAP and should not be considered as a substitute for net income (loss), net cash provided by (used in) operating activities or any other operating performance measure calculated in accordance with GAAP, and may not be comparable to a similarly titled measure reported by other companies. Our Non-GAAP financial measures are expressed in thousands.
Previous wording
We define Free Cash Flow as net cash provided by operating activities adjusted for purchases of property and equipment plus the value of share repurchases over fair value. With regards to our CLEAR Plus subscription service, we generally collect cash from our members upfront for annual subscriptions. As a result, when the business is growing Free Cash Flow can be a real time indicator of the current trajectory of the business.
Current wording
We define Free Cash Flow as net cash provided by operating activities adjusted for purchases of property and equipment. With regards to our CLEAR Plus subscription service, we generally collect cash from our members upfront for annual subscriptions. As a result, when the business is growing Free Cash Flow can be a real time indicator of the current trajectory of the business.
Previous wording
Comparison of the three months ended March 31, 2024 and 2023 (in millions):
Current wording
Comparison of the three and six months ended June 30, 2024 and 2023 (in millions):
Previous wording
Information about our operating results for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 is set forth below:
Current wording
Information about our operating results for the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023 is set forth below:
Previous wording
Revenue increased by $46.6 million, or 35%, for the three months ended March 31, 2024 compared to the three months ended March 31, 2023. The change was primarily due to an increase in the number of CLEAR Plus Members. Approximately 28% and 30% of paying CLEAR Plus members were on a family plan as of March 31, 2024 and 2023, respectively.
Current wording
Revenue increased by $36.9 million, or 25%, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. The change was primarily due to an increase in the number of CLEAR Plus Members. Approximately 29% and 30%, respectively, of paying CLEAR Plus Members were on a family plan as of June 30, 2024 and 2023, respectively.
Previous wording
Cost of revenue share fee increased by $4.8 million, or 24%, for the three months ended March 31, 2024 compared to the three months ended March 31, 2023. The change was driven primarily by an increase of $2.4 million, or a 46% increase, in fixed airport fees and $2.4 million, or a 17% increase, in per Member fees. COVID-related concessions reduced Cost of revenue share fee by $1.8 million and $0.6 million in three months ended March 31, 2024 and 2023, respectively.
Current wording
Cost of revenue share fee increased by $4.9 million, or 23%, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. The change was driven primarily by an increase of $2.4 million, or a 41% increase, in fixed airport fees and $2.5 million, or a 16% increase, in per Member fees. COVID-related concessions reduced Cost of revenue share fee by $0.6 million and $0.3 million in the three months ended June 30, 2024 and 2023.
Previous wording
Cost of direct salaries and benefits expenses increased by $7.2 million, or 22%, for the three months ended March 31, 2024 compared to the three months ended March 31, 2023. The change was primarily due to increased employee compensation costs of $7.1 million caused by select wage increases and higher average employee count.
Current wording
Cost of direct salaries and benefits expenses increased by $5.9 million, or 17%, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. The change was primarily due to increased employee compensation costs of $5.5 million caused by wage increases and higher average employee count.
Previous wording
Research and development expenses decreased by $1.8 million, or 8%, for the three months ended March 31, 2024 compared to the three months ended March 31, 2023. The change was primarily due to $1.1 million non-cash impairment of certain assets during the three months ended March 31, 2023 and a $0.8 million decrease in employee compensation costs, net of a $0.9 million increase in severance related to the closure of our Israel office.
Current wording
Research and development expenses decreased by $6.7 million, or 15%, for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. The change was primarily due to a $5.5 million decrease in employee compensation costs, net of a $0.9 million increase in severance related to the closure of our Israel office. In addition, during the six months ended June 30, 2023, we incurred a $1.2 million non-cash impairment of certain assets that did not occur in the current period.
Previous wording
Sales and marketing expenses increased by $2.1 million, or 22%, for the three months ended March 31, 2024 compared to the three months ended March 31, 2023. The change was driven primarily by $1.4 million of higher discretionary marketing expense and $0.4 million increased employee compensation costs.
Current wording
Sales and marketing expenses increased by $2.3 million, or 11%, for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. The change was driven primarily by $3.4 million of higher discretionary marketing expense and $1.2 million increased employee compensation costs, partially offset by a $2.2 million decrease in Ambassador commission expense.
Previous wording
General and administrative expenses decreased by $5.2 million, or 9%, for the three months ended March 31, 2024 compared to the three months ended March 31, 2023. The change was primarily driven by a $5.5 million decrease in employee related costs during the three months ended March 31, 2024. In addition, during the three months ended March 31, 2023, we incurred a $1.5 million lease impairment and $1.0 million write-off of certain assets that did not occur in the current period. The decrease was partially offset by a $2.5 million increase in technology costs and $2.0 million higher credit card fees due to higher bookings during the three months ended March 31, 2024.
Current wording
General and administrative expenses decreased by $6.0 million, or 5%, for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. The change was driven primarily by a decrease of $8.5 million in employee compensation cost and $2.4 million in professional service fees. In addition, during the six months ended June 30, 2023, we incurred a $1.5 million lease impairment and $1.0 million write-off of certain assets that did not occur in the current period. The decrease was partially offset by a $6.0 million increase in technology costs and $3.6 million higher credit card fees due to higher bookings during the six months ended June 30, 2024.
Previous wording
Interest income, net increased by $3.5 million, for the three months ended March 31, 2024 compared to the three months ended March 31, 2023. This change was primarily driven by higher interest rates.
Current wording
Interest income, net increased by $0.9 million, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. The change was primarily driven by higher interest rates.
Previous wording
Other income (expense), net increased by $0.1 million, for the three months ended March 31, 2024 compared to the three months ended March 31, 2023.
Current wording
Other income, net decreased by $0.1 million, for the six months ended June 30, 2024 compared to the six months ended June 30, 2023.
Previous wording
Income tax expense increased by $2.1 million for the three months ended March 31, 2024 compared to the three months ended March 31, 2023. Thechange was primarily due to the U.S. federal and state current taxes not offset by tax attributes (e.g. net operating losses and general business tax credits).
Current wording
Income tax expense increased by $0.2 million, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. The change was primarily due to the U.S. federal and state current taxes not offset by tax attributes (e.g. net operating losses and general business tax credits).
Previous wording
Our operations have been financed primarily through equity financing and cash flow from operating activities. As of March 31, 2024, we had cash and cash equivalents of $64.1 million and marketable securities of $634.3 million.
Current wording
Our operations have been financed primarily through equity financing and cash flow from operating activities. As of June 30, 2024, we had cash and cash equivalents of $39.1 million and marketable securities of $630.5 million.
Previous wording
On May 13, 2022, the Company's Board authorized a share repurchase program pursuant to which the Company may purchase up to $100 million of its Class A Common Stock. On November 8, 2023 and March 21, 2024, the Company announced that its Board authorized two $100 million increases to its existing Class A Common Stock share repurchase program, resulting in an aggregate remaining authorization on March 21, 2024 of $140.7 million. Under the repurchase program, the Company may purchase shares of its Class A Common Stock on a discretionary basis from time to time through open market repurchases, privately negotiated transactions, or other means, including through Rule 10b5-1 trading plans. The timing and actual number of shares repurchased will be determined by management depending on a variety of factors, including stock price, trading volume, market conditions, and other general business considerations. The repurchase program has no expiration date and may be modified, suspended, or terminated at any time. During the three months ended March 31, 2024, the Company repurchased 4,416,759 shares for $84.9 million. The repurchased shares were retired. As of March 31, 2024, $140.7 million remains available under the repurchase authorization.
Current wording
On May 13, 2022, the Company's Board authorized a share repurchase program pursuant to which the Company may purchase up to $100 million of its Class A Common Stock. On November 8, 2023, March 21, 2024 and August 5, 2024, the Company announced that its Board authorized three $100 million increases to its existing Class A Common Stock share repurchase program, resulting in an aggregate remaining authorization on August 5, 2024 of approximately $100 million. Under the repurchase program, the Company may purchase shares of its Class A Common Stock on a discretionary basis from time to time through open market repurchases, privately negotiated transactions, or other means, including through Rule 10b5-1 trading plans. The timing and actual number of shares repurchased will be determined by management depending on a variety of factors, including stock price, trading volume, market conditions, and other general business considerations. The repurchase program has no expiration date and may be modified, suspended, or terminated at any time. During the six months ended June 30, 2024, the Company repurchased 7,983,612 shares for $150.0 million. The repurchased shares were retired. As of June 30, 2024, $75.4 million remained available under the repurchase authorization.
Previous wording
On February 15, 2024, the Company announced that its Board declared a quarterly dividend of $0.09 per share, payable on March 5, 2024 to holders of record of Class A Common Stock and Class B Common Stock as of the close of business on February 26, 2024.
Current wording
On February 15, 2024, the Company announced that its Board declared a quarterly dividend of $0.09 per share, payable on March 5, 2024 to holders of record of Class A Common Stock and Class B Common Stock as of the close of business on February 26, 2024. The Company funded the dividend from proportionate cash distributions by Alclear to all of its members as of February 26, 2024, including holders of non-controlling interests in Alclear and the Company.
Previous wording
As of March 31, 2024, the Company had a remaining borrowing capacity of $68.3, net of standby letters of credit, and had no outstanding debt obligations. As of March 31, 2024, the Company was in compliance with all of the financial and non-financial covenants of the Credit Agreement. Refer to Note 20 within the condensed consolidated financial statements for further details.
Current wording
As of June 30, 2024, the Company had a remaining borrowing capacity of $68.3 million, net of standby letters of credit, and had no outstanding debt obligations. As of June 30, 2024, the Company was in compliance with all of the financial and non-financial covenants of the Credit Agreement. Refer to Note 20 within the condensed consolidated financial statements for further details.
Previous wording
The following summarizes our cash flows for the three months ended March 31, 2024 and 2023 (in millions):
Current wording
The following summarizes our cash flows for the six months ended June 30, 2024 and 2023 (in millions):
Previous wording
For the three months ended March 31, 2024, net cash provided by operating activities was $80.3 million compared to net cash provided by operating activities of $60.8 million for the three months ended March 31, 2023, an increase of $19.5 million primarily due to higher net income offset by year-over-year unfavorable changes in working capital of $14.3 million and a decrease in non-cash adjustments to net income of $6.5 million.
Current wording
For the six months ended June 30, 2024, net cash provided by operating activities was $194.9 million compared to net cash provided by operating activities of $135.8 million for the six months ended June 30, 2023, an increase of $59.2 million primarily due to year-over-year increase of net income of $70.9 million offset by unfavorable changes in working capital of $3.3 million and a decrease in non-cash adjustments to net income of $8.5 million.
Previous wording
For the three months ended March 31, 2024 net cash provided by investing activities was $26.2 compared to net cash used in investing activities of $50.6 for the three months ended March 31, 2023, an increase of $76.8 million. The change was primarily due to an increase in the net sales of marketable securities of $65.4 million and a decrease in capital expenditures of $6.6 million.
Current wording
For the six months ended June 30, 2024 net cash provided by investing activities was $26.4 compared to net cash used in investing activities of $58.0 for the six months ended June 30, 2023, an increase of $84.4 million. The change was primarily due to an increase in the net sales of marketable securities of $69.1 million, a decrease in the purchase of a strategic investment of $5.0 million and an decrease in capital expenditures of $10.6 million.
Previous wording
For the three months ended March 31, 2024, net cash used in financing activities was $101.3 million compared to net cash used in financing activities of $9.1 million for the three months ended March 31, 2023, an increase of $92.2 million. The change was primarily due to an increase in the amounts used to repurchase Class A Common Stock of $78.4 million and an increase in payments of dividends and distributions of $13.9 million.
Current wording
For the six months ended June 30, 2024, net cash used in financing activities was $241.1 million compared to net cash used in financing activities of $81.4 million for the six months ended June 30, 2023, an increase of $159.7 million. The change was due to increases in the amounts used to repurchase Class A Common Stock of $104.9 million, payments of special and regular dividends of $28.5 million, and distributions to members of $25.8 million.
Previous wording
We have non-cancelable operating lease arrangements for office space. As of March 31, 2024, we had future minimum payments of $203.9 million, with $15.0 million due within twelve months.
Current wording
We have non-cancelable operating lease arrangements for office space. As of June 30, 2024, we had future minimum payments of $200.2 million, with $15.0 million due within twelve months.
Previous wording
We have and continue to enter into agreements with airports for access to floor and office space. As of March 31, 2024, we had future minimum payments of $66.2 million.
Current wording
We have and continue to enter into agreements with airports for access to floor and office space. As of June 30, 2024, we had future minimum payments of $70.3 million.
Previous wording
We have commitments for future marketing expenditures to sports stadiums of $7.4 million as of March 31, 2024.
Current wording
We have commitments for future marketing expenditures to sports stadiums of $6.8 million as of June 30, 2024.
Previous wording
We are subject to certain minimum spend commitments of approximately $1.2 million over the next year under service arrangements.
Current wording
We are subject to certain minimum spend commitments of approximately $0.5 million over the next year under service arrangements.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
Total Bookings increased by $52.8 million, or 16%, for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. The increase was primarily driven by new Member enrollments, pricing increases, and strong retention of existing Members.
Current report — wording carried from elsewhere
Revenue increased by $83.6 million, or 30%, for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. The change was primarily due to an increase in the number of CLEAR Plus Members. Approximately 29% and 30%, respectively, of paying CLEAR Plus Members were on a family plan as of June 30, 2024 and 2023, respectively.
Current report — wording carried from elsewhere
Cost of revenue share fee increased by $9.7 million, or 24%, for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. The change was driven primarily by an increase of $4.9 million, or a 43% increase, in fixed airport fees and $4.8 million, or a 16% increase, in per Member fees. COVID-related concessions reduced Cost of revenue share fee by $2.0 million and $0.9 million in the six months ended June 30, 2024 and 2023.
Current report — wording carried from elsewhere
Income tax expense increased by $2.3 million, for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. The change was primarily due to the U.S. federal and state current taxes not offset by tax attributes (e.g. net operating losses and general business tax credits).
Current report — wording carried from elsewhere
On May 7, 2024, the Company announced that its Board declared a quarterly dividend of $0.10 per share, payable on June 18, 2024 to holders of record of Class A Common Stock and Class B Common Stock as of the close of business on June 10, 2024. The Company funded the dividend from proportionate cash distributions by Alclear to all of its members as of June 10, 2024, including holders of non-controlling interests in Alclear and the Company.