MarkMonitor parent Clarivate notes earnings

Acquisitions boost top line.

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Clarivate (NYSE: CCC), the parent firm of brand protection domain name registrar MarkMonitor, noted Q3 earnings this morning.

The firm noted stellar growth over the same period of 2019 thanks to two acquisitions.

Q3 revenue came in at $284.4 million, up 17.0% from Q3 of 2019.

But that includes revenue from Decision Resources Group, which Clarivate purchased at the end of February 2020, and Darts-ip, which it purchased in November 2019. And the comparison number omits the revenue from its divested MarkMonitor Brand Protection, Antipiracy, and Antifraud products, which are separate from the brand protection registrar.

Taking out the acquisitions paints a different picture. Organic subscription revenues increased $7.1 million, or 3.5% on a constant currency basis, compared to the third quarter of 2019, but organic transactional revenues decreased $6.8 million, or 16.2% on a constant currency basis.

The firm credits fresh business and price increases for the subscription revenue increase and blames Covid-19 for the transactional revenue drop.

Clarivate posted a net loss of $37.2 million for the quarter, which it attributes to higher amortization and buyout-related costs.

Shares in Clarivate are down regarding 4% at 11 am EDT today, but investors might be forgiving: shares have doubled in price over the past year.