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  "docSlug": "d09125f46e4d",
  "documentTitle": "Clear Secure, Inc. (YOU)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2025-04-30 00:00:00",
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  "notes": "Uses a 'ceo-quote-contradiction' framework to highlight the gap between management guidance and actual performance.",
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      "text": "The outgoing CFO famously said in early 2023 that he saw nothing on the horizon that would change the ratio of Lifetime Value to Customer Acquisition Cost (LTV / CAC) after it improved from 2019 – 2022.",
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      "text": "Customer Lifetime Value To Acquisition Cost",
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      "kind": "framework",
      "text": "CFO, Q4 2022, March 1, 2023: \"So we talk about LTV to CAC... And so we don't see anything specifically in the horizon that would change the dynamics of the business.\"",
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      "text": "2024 Sales & Marketing Discussion: \"Sales and marketing expenses increased by $5.3 million... The change was primarily driven by a $9.6 million increase in discretionary marketing expense...\"",
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      "text": "LTV/CAC ratio: 10.0x",
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      "text": "The outgoing CFO famously said in early 2023 that he saw nothing on the horizon that would change the ratio of Lifetime Value to Customer Acquisition Cost (LTV / CAC) after it improved from 2019 – 2022. Naturally, the ratio plummeted substantially thereafter. In 2024, CLEAR reported a large increase of almost $10 million in discretionary marketing expense which indicates to us that it is stretching to recruit new members.",
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      "kind": "quote",
      "text": "\"So we talk about LTV to CAC, and you'll see that, that has actually improved in '22 versus '21, partly a function of cost of acquisition going down year-over-year. And as Caryn mentioned, as we have added to our network, both on the airport side and on the platform side, the network effect really drives unit economics. And so we don't see anything specifically in the horizon that would change the dynamics of the business.\" — CFO, Q4 2022, March 1, 2023",
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      "kind": "source-note",
      "text": "Source: CLEAR SEC Filings and conference calls",
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      "kind": "title",
      "text": "Customer LTV To CAC Is In Freefall",
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      "arcName": "Overcoming the Monster",
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