Clarivate Plc CLVT recently partnered with OhioLINK and SearchOhio to integrate their INN-Reach platforms. Together, these three entities will develop a unified library solution for Ohio. The unification of OhioLINK and SearchOhio’s resource platforms will enrich the database, giving the users extended choices.
Users will now be able to access content from 87 institutions and 45 public library systems throughout the state of Ohio. This partnership will also enable Clarivate to simplify resource sharing across libraries.
This partnership with OhioLINK and SearchOhio will help CLVT expand its market presence in the academic space.
Clarivate PLC Price and Consensus 
Clarivate PLC price-consensus-chart | Clarivate PLC Quote
Expanding Partner Base Aids Clarivate
Clarivate provides its technology solutions to academia, government, intellectual property, life sciences and healthcare markets. Its Academia and Government segment accounted for 50% of its revenues in 2023.
CLVT seems to capitalize on the growing academic software market. Per a report by Future Data Stats, the global educational software market is projected to witness a CAGR of 8.2% from 2024 to 2030.
The company has expanded its presence in the academia market in the past year with a number of business moves. Clarivate collaborated with EveryLibrary and Yale University, renewed its partnership with The Federal Library, launched the Academia & Government Innovation Incubator and acquired artificial intelligence-based student engagement solution, Alethea.
Clarivate Faces Near-Term Challenges
Clarivate faced an organic decline in its top line in the first quarter of 2024. This decline can be attributed to a decrease in non-subscription revenues of the company. Organizations are facing budgetary challenges due to still high interest rates and persistent macroeconomic headwinds, leading them to delay their plans. The company also expects exchange rate headwinds throughout 2024.
CLVT was also facing minimal growth and low potential from its Valipat business, so it sold the asset in April 2024. This might have a temporary effect on the company’s top line by reducing revenues by $30 million. However, the sale of the Valipat business will help Clarivate focus on high-growth business divisions.
Conclusion
Clarivate is expanding its capabilities through partnerships. However, a number of factors are weighing down the company’s performance. Besides macroeconomic challenges, the company also faces enormous competitive pressure in the analytics and intelligence space.
In the healthcare and life science space where Clarivate provides analytics and intelligence, big players like IQVIA IQV, Oracle’s ORCL Cerner and Dassault Systems’ DASTY Medidata Solutions operate. These organizations have substantial financial resources, renowned brand names and technological expertise.
Cerner and Medidata were some of the most popular healthcare intelligence providers, which now enjoy the resources provided by big organizations like Oracle and Dassault respectively. Moreover, IQVIA has been in the information intelligence market since the 1980s, giving its significant market experience over Clarivate which entered this space much later.
CLVT also faces the risk of a growing number of inexpensive information sources driven by technological advancements, which could reduce the demand for its products and services in the long run.
Shares of this Zacks Rank #3 (Hold) company have plunged 28.8% in the year-to-date period against the Zacks Internet - Software industry’s growth of 8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Free Report – 3 Stocks Sneaking Into Hydrogen Energy
Demand for clean hydrogen energy is projected to reach $500 billion by 2030 and grow 5-FOLD by 2050. No guarantees, but three companies are quietly getting the jump on their competition.
Zacks Investment Research is temporarily offering an urgent Special Report naming and explaining these emerging powerhouses primed to boom. Click below for Hydrogen Energy: 3 Industrial Giants to Ride the Next Renewable Energy Wave.
Oracle Corporation (ORCL) : Free Stock Analysis Report
Dassault Systemes SA (DASTY) : Free Stock Analysis Report
IQVIA Holdings Inc. (IQV) : Free Stock Analysis Report
Clarivate PLC (CLVT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
