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  "documentTitle": "Clear Secure, Inc. (YOU)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2025-04-30 00:00:00",
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  "notes": "Includes a long verbatim quote from a former employee to support the thesis.",
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      "kind": "callout",
      "text": "CLEAR Stopped Quantifying The % of Members Verifying With TSA PreCheck After 2022",
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      "text": "What happened though is through this process, TSA changed the rules of engagement and prevented CLEAR from cross-marketing to that population. And I think that highly diminishes the value of the TSA pre-check element financially in the ecosystem.",
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      "text": "In 2020, CLEAR became the 3rd TSA PreCheck enrollment partner. For various reasons it was not until 2024 that CLEAR began processing TSA PreCheck members. CLEAR is neither the cheapest provider for a new PreCheck enrollment or for a renewal in person or online. We understand CLEAR receives a small fee but we believe the real intention with this partnership was the ability to market CLEAR memberships to PreCheck members. It appears the TSA will not allow the marketing and the top of the funnel only works if the consumer at that point in time is willing to pay for a bundle package (CLEAR PreCheck pricing).",
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      "text": "Okay, so the strategy started before, first of all, the strategy started before TSA Digital ID. The strategy for CLEAR to get TSA PreCheck goes way a long time ago when Congress actually required TSA to open that bid and accept more partners. So CLEAR's been in the running to accomplish this year after year after year with a reluctant TSA to allow it to do so as that evolved. And to some degree it works that way because usually if you're a CLEAR member, there's a more sticky to a better experience and ultimately value paying both to some degree. What happened though is through this process, TSA changed the rules of engagement and prevented CLEAR from cross-marketing to that population. And I think that highly diminishes the value of the TSA pre-check element financially in the ecosystem. Because originally it was a top of the funnel concept, okay, you're not ready to pay $199, let me get you close to my brand, close to my service by paying the $79 every five years. Next time you travel, maybe next year when you come to the airport, you see I have an offer, I send you an offer. I notice you travel on your way out. Maybe you want to try CLEAR on your return for a three month trial. And I start leveraging the information I have from your travels of TSA PreCheck to kind of get you to bite at CLEAR at the bigger, higher rated membership later. That got broken. When TSA prevented, given the fact that it's a government database that I don't understand how this was not, I really, really don't understand how this was not clear in the onset or clarified or explicit, that you can't market to this population, that you don't have access to their email addresses, that you can't bundle two products together because they get charged two different, they have to be charged by two different processing merchants, etc, etc. So it created a lot of a Chinese wall between one population and the other, and your only opportunity to market them is the day they signed up. After that, you have no way to reach them.",
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      "text": "We believe that approximately 56% of CLEAR Plus members are verifying with TSA PreCheck®, and that there is a significant opportunity for us to process their TSA PreCheck® membership renewals.",
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      "text": "Spruce Point Research Interview of Former CLEAR Employee",
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      "text": "“Okay, so the strategy started before, first of all, the strategy started before TSA Digital ID. The strategy for CLEAR to get TSA PreCheck goes way a long time ago when Congress actually required TSA to open that bid and accept more partners. So CLEAR's been in the running to accomplish this year after year after year with a reluctant TSA to allow it to do so as that evolved.” — Former CLEAR Employee",
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      "text": "Source: TSA PreCheck partner enrollment cost and Spruce Point interview.",
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      "kind": "title",
      "text": "Is PreCheck Enrollment A Growth Driver?",
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