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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": "Uses comparative disclosure analysis to justify reclassification of expenses.",
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      "text": "By adjusting CLEAR's gross margins for labor and transaction fees, we see that its gross margin is 2,430 basis points lower than the promoted margin and 800 basis points lower than the peer group average.",
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      "text": "gross margin: 2,430 bps",
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      "text": "In addition to overlooking the labor cost of delivering its service, CLEAR also includes “variable credit card fees” and “mobile enrollment costs” as general and administrative expenses.",
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      "text": "General and administrative expenses consist primarily of employee-related expenses for the executive, finance, accounting, legal, and human resources functions. Employee-related expenses consist of salaries, taxes, benefits and equity-based compensation. In addition, general and administrative expenses include non-personnel costs, such as legal, accounting and other professional fees, warrant expense, variable credit card fees, variable mobile enrollment costs, and all other supporting corporate expenses not allocated to other departments including overhead and acquisition-related costs. — Clear Secure",
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      "text": "1) Assumes 2% of gross sales are transaction processing fees 2) Includes cost of revenue share fees and direct salaries and benefits 3) Includes 2024A GM%: MTCH, DBX, PTON, ALRM, RPD, GOGO, BMBL, GEN, ZM",
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      "text": "Disclosure of Credit Card Fees comparison between Clear Secure, Dropbox, and Peleton.",
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      "text": "We Estimate That CLEAR's Gross Margins Are Vastly Below Peers",
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