Clarivate Plc (CLVT) Earnings Call Transcript & Summary

Hello, and welcome to the 2023 Clarivate Investor Day. I'm Mark Donohue, Vice President of Investor Relations. Thank you all for joining us here in this iconic venue on the New York Stock Exchange. And for those who are watching us live via video streamed webcast, we want to welcome you as well. So I hope those in the room had the opportunity to view some of our wonderful demos, we have outside the room. My colleagues will be around after today's presentation, if you didn't get a chance to stop by and view some of the products. So before we get started, I, of course, have to go through some brief couple of items. Our safe harbor statement, of course. So today's presentation is being recorded and copyright material of Clarivate. Presentation does include forward-looking statements. And of course, forward-looking statements involve known and unknown risks and other factors and uncertainties. And so I would refer you to review our SEC filings for these risk factors, et cetera. Additional information regarding these factors that are in our presentation that we filed. So those either in the room here or watching online, you can see the presentation and download it from our Investor Relations website or from the conference website. Our discussion will include non-GAAP measures or adjusted numbers, and we publish these reconciliations of these measures or GAAP measures in the SEC filings this morning as well, and they're also available on the Investor Relations website. So turning to our agenda. Jonathan Gear, our CEO, will lead us off in a moment. Then Gordon Samson, our Chief Product Officer, will lead a short panel discussion with members of our 3 segments. Following this insightful discussion, Jonathan Gear will return with some additional remarks. Then Jonathan Collins, our Chief Financial Officer, will provide an in-depth look at our growth plan and our outlook. At the conclusion of the presentation, we will have time for Q&A. For those that are attending remotely can submit questions through the online platform at any time. We'll get those as many questions as we possibly can. And with that, thank you very much. [Presentation]

Great, and good morning, everyone. It is wonderful on behalf of the management team and the Board of Directors to welcome you to the 2023 Clarivate Investor Day. We're going to spend the next few hours talking through our vision and more specifically our plan for growth. We're going to talk about our tremendous markets. Our goal standing leading products and how all of this combined together is going to create a cash generation and compounding machine for our shareholders. Let's go ahead and get started. We're going to cover a lot today. We're going to go to products markets, customers and again, our model. But there are 4 key things I really want you to take away from this discussion this morning. First, and you're going to hear this word over and over again, we provide absolutely mission-critical solutions for the customers and markets that we serve. We're going to talk about what that means and why they're so critical for our clients. We're going to talk about the incredible scale that we provide by connecting the markets that we serve with our 3 core end markets. We're going to talk about very importantly, the road map that our team has developed to accelerate our organic growth rate. We're going to get into details of that, talk about what we will do to execute to elevate our organic growth rate. And we'll talk about the financial implications, the great financial implications of the results of that organic growth rate. And finally, we're going to wrap this together and talk about how this important story and the plan and execution behind the story will unlock significant value for all of our shareholders. It's kind of worth I think just taking a step back and looking where Clarivate is in this story as a corporation. And we're about to enter Phase III. Phase I started with the with Clarivate going public in 2019. And over the next 3 years, the focus of Clarivate was on rapidly building scale, and we did that through doing large very focused acquisitions. All this happened in the middle of COVID, and it's actually as someone who wasn't there at the time, I'm amazed at the progress that was made during this time period, and it was critical foundational work. The next phase, kind of shorter traditional phase are the last 6 months of Clarivate. That's when I joined the company, I started doing my strategic assessment, working closely with our team and with our customers and lay that and begin to build a road map behind this, and a critical piece of this was a restructuring of the business to focus, focus around our customers, focus around our end markets and again, develop the framework and plan for accelerated organic growth. And that leads us now to Phase III. And this is what we're launching today. This is the next 3 years. And what you hear from me now, what you'll hear from the team on the stage and what you will continue to hear from us going forward is how we're investing in the product, driving innovation, connecting together the critical pieces of Clarivate that is going to drive organic growth. And you can hear from us how that organic growth will flow through to profit, to accelerating compounded cash flows, and you're going to hear about the disciplined use we're going to do around capital allocation to drive shareholder value. Let me start now talk about the DNA, the core of Clarivate. And you see on this slide, the critical piece, which pulls our 11,000-plus colleagues together is our purpose, our mission, our vision and our values. But I'm going to focus on the first one, our purpose. At Clarivate, we benefit lives every single day in what we do for our clients. We benefited within Academia & Government by helping our clients drive cutting-edge research that improves the world. We do it in IP as we help our clients maintain and create and support innovation and breakthrough technologies. And we do it in Life Science & Healthcare, where we help our clients create drugs that save and improve lives. This is the purpose that drives our 11,000-plus colleagues around the world. Core to this is our commitment and focus to sustainability, diversity, equity and inclusion. And you see lots of great things up on the slide here. You see on the right-hand side, how we help our clients and the end markets that we serve drive sustainability in improving lives, improving research, improving breakthrough innovations. And you see on the left hand of the side, what we focus on internally and the importance we place on diversity and inclusion because as you'll see in the next few slides, it is our team that is driving this company. But the thing I'm going to call about at the bottom is a metric. We are a very metric-focused company, it's kind of what we do. We always measure how we're doing. And when this company went public, there was very little focus on this area. We weren't measuring it. And frankly, if you measured us on the key ESGNX, we would have been bottom quartile. Given the focus of the teams in the last 3 years, we've now risen to the top 10% of the S&P Global ESG index, and we're now serving the top 10% of our peer group there. Great progress. I'm proud of the team and what they've done here, and you should expect to see continued focus in this area. I talked a lot about our colleagues. We have a little over 11,000 colleagues around the world. And what is unique about our colleagues is the expertise that they bring to our products, to our solutions, to our customers. They are truly experts they're experts in academic research, they're experts around IP and of course, they're experts in the Life Cycle -- Life Science, Healthcare process. And you see it just examples on the right-hand side are some of the key thought leadership pieces we put out, Citation Laureates, we actually identify and predict who are the Noble Prize winners of the future based upon our knowledge of the innovation taking place. Our drugs to watch, we're able to identify drugs early in the cycle and predict which of the blockbusters, which are going to change lives and our top 100 global innovators, and this should be important for all you investors out there, we identify which are the companies which are innovating the most, and that is a way to predict where the innovation will come out in the future. Just some examples of the thought leadership and depth of our expertise in our markets. On our investment thesis, this is a great slide. Now I've been in the information business industry for over 2 decades, work with many of you in over that time period. It is a wonderful neighborhood to be in. You know how the economic value works. You know the value proposition and the scale that it brings. But traditionally, in our industry, there are 2 models. There's a model you see on the left-hand side, more horizontal information services companies. And the value driven there is through diversity, of different end markets and driving scale. And that's very similar to my -- the company I was most recently at. You can create a lot of value in doing that. We also have examples on the -- you have it right. The right-hand side, the right-hand side, where you have single-threaded companies who go very, very deep in one end market, and they drive value by really driving that expertise around a single competency, but just going very, very deep there. Again, if we can think about the examples there, wonderful economic examples of how that drives shareholder value. At Clarivate, we have a unique proposition because we bring the best of both worlds together. On the one hand, we serve 3 very distinct diversified end markets. We'll talk about those markets over the next few slides. And in doing so, we bring scale and the economic benefits of doing that. However, unlike most diversified companies, we tie together with a single thread leveraging common content, common technologies all around the theme of innovation. And that's what ties these together. So in looking at this, we have an incredibly unique differentiated proposition within our peer group, which will then drive significant growth and value for shareholders. Looking at our business model, there are 4 things I'm going to call out, and I'm going to go in a little bit deeper slide by slide here. First, we have stong secular growth markets. These 3 markets that we serve have grown. They're growing now. They have always grown and they will grow in the future, and I'll walk through why we have such faith and confidence behind that. These markets are also wonderful, particularly in these challenging times because they're economically insulated. Nobody likes a macro challenges,[ lease about me ], but what had happened is we -- that impact on this is throttled down compared to others. We have, and I've said this before, I'll keep saying it, we have absolutely mission-critical solutions in how we serve our customers. And then we have fundamentally an incredibly robust business model that as we tie it all together, creates a machine again, for just generating cash, which every year increases and increases. Let me go in each one in depth here. So let me start first with the secular growth markets. As you know, we serve 3 markets, Academia & Government, Life Science & Healthcare and Intellectual Property. These are markets that just -- they just keep growing. They're just machines that keep growing. If you look at Academia & Government, it's an end market as we've defined it. That grows in kind of the low to mid-single digits historically. The fundamental driver behind this is the investments made in research funding across multidisciplinary areas. And as an example, university spending, which is a critical point for us, investment in that has grown 80% over the last 10 years. And we expect that to continue, and you see news about [ Grand speed ] measured by the federal government investing in this area. Life Science & Healthcare, this is a great end market for us. Growing at 10% a year. So a lot of tailwinds of growth behind this. This is driven by the absolute proliferation of data in the Healthcare industry. And this is like a fun stat for someone who's lived in the information services industry for years, as many of you have, 30% of the world's data. All the data in the world, 30% is from Healthcare. It is by far the greatest producer of data around. And we see that accelerating at a faster pace compared to others. And we view that by 2025, we expect Healthcare to produce 36%. So it's growing at a faster rate in manufacturing, the media is growing even at a faster rate than the data within financial industries, which you all know is an incredibly data-intensive industry. Finally, with IP, it is a great, steady grower. We estimate grows about 6%. Again, very steady. If you look back years, years, years you'll see it. You look forward, you'll see similar growth rates. It's really driven here by investments in R&D. R&D drives this industry. And one of the leading publications in our -- in this space, R&D world, they forecast that we're spending this year at $2.5 trillion around the world on R&D and expect that has increased about 5.5% over the prior year, and that's just what you see. Investment in R&D continues to grow year after year in this diversified market. These markets are, as I said in my initial remarks, incredibly economically insulated. And I'll again say, I would prefer not to have a global recession. I don't want that. But when it happens, compare it to other companies, the impact on us is insulated. And you see a graph here, we threw up, we threw probably the 2 most challenging economic times of my professional life, the Dotcom Bust in 2000, 2001 and the Global Financial Crisis that took place in '08, '09, and you see the impact on GDP, declined 1% and then declining 5%. We then pulled out some of the key drivers of consumption in our end markets. So in Academia & Government, almost half of our revenues, a key driver there is the quantity of scientific and technical journals produced. And as you can see there, it just grows. It grows and it grows and it grows. You see in Life Science & Healthcare, we pulled out the spend on R&D in U.S. pharma. And as you can see, tremendous growth in the initial bubble, slight decline in the Global Financial Crisis, but certainly much more muted than what happened to the economy. And finally, in IP Key driver there is the amount of the quantity of patents being applied for every year, and you see just this continued growth every single year. And what this demonstrates is frankly something that intuitively, I think everyone in this room knows, university spend and academic research is just not impacted in near term by economic cycles. Investments in R&D, which is all about long-term returns for these companies, which live on the returns of R&D. Again, they do not cut back on those in economic cycles and finally the focus on saving and improving lives through spend in R&D and pharma, it's not impacted. And so this is a wonderful way as we kind of protect and mitigate downturns of the economy. Now mission-critical solutions, we do provide these mission-critical solutions. We have some of the gold standard products in each of the 3 end markets that we serve. So Academia & Government, we've torn up in 3. ProQuest One Academic, Web of Science, Alma credible products. I have a kid in college right now, didn't know what I did. I pulled up this pole, went to his library university library, pulled it up ProQuest. Now I challenge you to go ahead and take a look at yourself, sometimes it's white labeled. But if you have kids or friends in college, odds are very high, they're using that database. But we have in Web of Science our leading product there, over 2 billion citations, curated citations within that database. Life Science & Healthcare, products like Dialog, Cortellis, absolute leading brands in those industries. And we have, for example, in Cortellis Drug Discovery, over 3 million curated pharmaceutical studies. And in IP, it sets a litany of leading brands from Derwent to CompuMark to IPfolio. And we have over 100 million editorially enhanced patent records within Derwent. These are just some examples of the breadth that we have with these gold-standard products. And as high as to get them in a robust business model, and this is a virtuous circle of happiness. It starts on the top left-hand side, we are highly recurring revenue. 80% of our revenue is recurring in nature. If we peel it back, we look at the subscription. We have over 90% renewal rates within our subscriptions. So it's incredibly sticky and predictable revenue that we deliver. It's also given the scale of our business model incredibly profitable. We have over 40% profit margins. And then as it flips through unbelievably cash generative with 50% free cash flow conversion. So this is a cash machine. That's the nature of the business model that we have. And as we drive and accelerate our growth, the compounding effect through the cash increases even more. I'm going to flip now and talk about our core competencies. And I think it's helpful to start to see how Clarivate has come together over the last 3 years. It started with carving out of Thomson Scientific, which brought 3 core assets. They brought Web of Science a leading product of Academia & Government. We bought Derwent and CompuMark, 2 leading products in IP -- and it brought Cortellis a leading product in Life Science & Healthcare. Those were the 3 foundations. And then rapidly over the next 3 years, we've built on those platforms. First, with the acquisition of DRG compliant with Cortellis, created a leading platform within Life Science & Healthcare. We acquired CPA Global, Combine that with Derwent, CompuMark leading platform around IP management. And finally, most recently acquired ProQuest, combining those assets with Web of Science, bring them together leading solutions in Academia & Government. And this combination, a lot of heavy lifting done the last 3 years has provided us the seeds of how we're going to grow. That growth is deeply tied to our relationships with our customers that we serve, and they are deep. If you're going to have gold standard products, it should be followed with goal standard relationships with the leading organizations in the markets that we serve. We have them. You'll see here virtually all the world's largest 400 research universities are clients. Essentially, all of the world's largest pharma, medtech and biotech companies are clients. And again, virtually all of the largest R&D clients, R&D customers in the world, our clients of Clarivate and use our products to drive R&D. And this speaks to the criticality of our solutions. It also provides a road map that we have the relations as we continue to innovate in new products, expand our footprint, we have the customer relationships to grow into. We look at our solutions along 4 key elements. And it starts on the left-hand side, enrich data, and this is the core to any business and information services, you have to start with the enriched data and we have it. We have it in all 3 of the end markets that we've discussed. We're moving left to right. We're moving from that enrich data, which is a history of Clarivate and our historical companies to provide analysts and insights that's taking the data, putting intelligence on top of that data and providing solutions for our clients. It starts moving us up the value chain with clients. We have workflow solutions. These are SaaS-based solutions embedded in our customers' workflow that customers are using literally every minute. It's what they use to drive their processes. And finally, we wrap it all with expert services, as expert services take our solutions, make them even more relevant for our clients by driving additional value and they make their relationships stickier. We have a remarkable set of products that serve what we call the innovation life cycle. And let me start by just explaining the life cycle. This is a new construct I don't think we've shared with you before. You see on the chevrons on the very top, it starts with knowledge and learning. [Tender moves] to you take that knowledge learning, moves to discovery and more in-depth research. From that research, ideas come out, products come out, and they need protection and they need to be published. And finally, as that happens, they get commercialized. This is what links all the elements of Clarivate together because we serve all 3 of our segments across this innovation life cycle. And you'll see some examples of products here across Academia & Government, IP and Life Science & Healthcare. And I think I would call out specifically is you'll see products in multiple boxes because products like Derwent like CPA Global, like CompuMark, serve multiple elements of the change, Web of Science same story, and they become differentiators for us. As we can connect content together and connect piece of the value chain together in ways that our competitors cannot do. The core of what we do is -- and the proof point here is really how much -- how do our customers react when we get this right. And I've called out 4 examples, and these are good examples for each one of these different product types. But let's look at enrich data, I mentioned ProQuest 1, what my son is using right now at University is a critical way that universities use to help educate students and help them conduct research, absolutely cores, how the content comes together. We have a 99% renewal rate within that product. Analytics & insights, example I'll give in Life Science & Healthcare, is our dialogue used for the absolutely mission-critical step for Life Science companies around regulatory approval and drug safety. They have to get that right, and we help them get that right with a 97% renewal rate. Workflow Solutions, Alma. Alma is an incredible workflow SaaS-based solution that's used by the leading libraries around the world. Again, it runs the library. And you see approximately 99% renewal rate there. And then expert services, our IP renewal service helps ensure that those R&D-intensive companies are protecting that incredibly important asset, and you see, again, close to 100% renewal rate. And this shows that when we get it right, which we do, this product becomes even more and more sticky. Let me talk about our operating model. And this is, again, a new slide that you'll see, but I announced at the end of Q4, a pivot of our operating model. And I pivot primarily to be structured, as you see on the top end of this slide, organizationally around our 3 core end markets of Academia & Government, Life Science, Healthcare and IP. Now I've created those 3 units. Each is going to be led by a president and they became the primary P&Ls within Clarivate and all the key parts within that to be successful, product technology, product management, operations, sales, et cetera. And I've already seen the benefit, as we've done that to have the organization be nimbler, closer to customers, make decisions faster, I'm already seeing the benefits, I'm already seeing the speed move up in the organization. But it's important to note that we're not simply a holding company because of what lies underneath. These 3 segments, which will be strong by themselves are going to be even stronger as we leverage common content as we leverage common technology of where it makes sense, common customer channels and finally, just the economic scale of this business. This slide shows fundamentally what we do. So if you look at that [short bond] at the top, we pulled in data, we enhance it, Fuse it together. And from that, we create market-specific solutions. And finally, we take that to serve all those various pieces across the innovation life cycle that I described on the previous slide. And what I'm going to call out on the next few slides is the key part to see at the bottom, how we pull it together and how we enhance those segments by shared content, share tech and shared commercial channels. Let me start with the shared content. And this is I love all the slides, I love, love, love this slide because this shows how we lift the entire organization through shared content. And our content certainly resides and I would call this home market. So we have Academia & Government content living in the A&G segment as core to that segment. We have Life Science content core to that, so on and so forth. But the power of this model really comes together when we can leverage that content out of its home market and enhance the value of additional products in the other 2 segments. And these are some examples of how we do it. But I'll use one to kind of make it real pulling together as an example, Web of Science. So Web of Science since, as you know, core product within Academia & Government. However, we have begun to pull Derwent patent data into Web of Science. And if you can imagine, if you're a researcher, at a university, doing research on the topic, you'd love to have the Academia & Government Research. It's also helpful in value-enhancing to find out what's being patented, what's the innovation out there. We pulled that in there and had over 1.5 million queries last year as we pulled that content into Web of Science. It also goes the other way around. Within Cortellis, [imagine] doing drug research within Cortellis Drug discovery is helpful to not only have the industry information, but to pull the Academic Research that's taking place into your discovery process, and we do that with Web of Science literature that we have now begun to pull into the Cortellis product. And that was assessed over 150,000 times last year. And finally, looking at IP in the Derwent patent citation,[ Zoom] patent discovery. Again, it's helpful to know what's happened at the University of research as you're looking into different ways to patent your patent technology. We've embedded Web of Science citations now into Derwent, have almost 40 million citations now into Derwent And this is a great way of doing 2 key things: one, it enhances value for our clients. And the second thing is it creates unique solutions that cannot be replicated, elevating our position in the marketplace. The second piece around shared technology. And 4 things I would call out -- caught here. And this is again is technology that we share across all 3 of our segments. First, data infrastructure, we have now a common data infrastructure that really enables the lots of these things I've talked about. But for an a data lake. We've now created a green data lake common across all the Clarivate segments that pulls us together all the elements around green technology, green innovation. So for example, whether you're an Academic & Government or IP, you can pull the latest collective view and our insight around, say, investments in wind or in solar. Data science. Data science is a key enabler as we lift up from pure data into Insights and Analytics. We have a central team there that is leveraging AI and machine learning to drive it. An example of how this gets implemented is that AI team is helping our Life Science team predict how long it's going to take for a drug to move through the drug development life cycle into approval. Scalable & Interoperable Products, this is about the customer experience. And we now have common products. So rather than have customers having different experiences as they do their workflow, it's a common experience so that they can access, say, the Derwent and the Web of Science content together in one unique way. And finally, we're leaning forward with technology-driven innovation, leveraging blockchain, leveraging natural language models across all of our segments from a central team. We do have shared commercial channels. And what I would say here is we do this where it makes sense. We certainly have examples of channels where they're going to be single threaded. So our patent law firms, for example, very important segment for us within IP are unlikely to be consumers of our other segments information. But we also have end markets, which absolutely want to buy and have value driven from all 3 segments. So think about pharma, biotech, manufacturing, technology-driven companies, R&D-intensive companies and a couple of things I will call out. We trifurcated our customer base on size. And first, we looked at all customers with sales over $50,000 to us, represents approximately 7,000 customers across Clarivate. Of that said, 7% by 2 or more segments. Then we did another slide. We looked at clients which buy over $100,000 of products or services from us, represents a little over 4,000 clients. Of those, almost 25% buy from 2 or more segments. Finally, we looked at all clients who buy spend $1 million and more from us, a little under 500 clients globally. Approximately half buy from 2 or more of our segments and almost 20% buy from all 3 segments. And this just demonstrates to me that as we become very focused on where we have those customers who are going to buy it from multiple segments, we go and leverage a common commercial model because as we move up that value chain, those customers become stickier and stickier for us and become opportunities for growth. And you see that -- with the example on the right-hand side here, this is a large pharma company. 2020, and you see the breakdown years, a little hard to see on the screen, but that middle block is Life Science & Healthcare content. So of course, significant revenue for Life Science & Healthcare. But you see the growth of our other segments in there. And this example grew 15% from '20 to '22, driven by leveraging our full -- the full breadth of our segments into that customer. Scale. The one thing this company has done very, very well, as is brought together the different assets over the last 3 years is drive scale. And you see it demonstrated here, $300 million of cost synergies over the last 3 years as we leverage common content operations as we leverage common technology infrastructure and as we leverage overall shared services. And you'll see us continue to be very disciplined and find ways to drive out efficiencies as we build scale as we grow this business. This then leads to a great accelerated compounding revenue model to us. And again, this is another slide I absolutely love because this kind of it brings it together. On the inside, you see those numbers and metrics I talked before about this flywheel of cash generation. You couple that about the overall the markets that we play in, the operating leverage that we have, the cash flow generation and the disciplined capital allocation that Jonathan Collins is going to talk about shortly, this retain is a compounding story that will drive ever-increasing cash out of this business. With that, I'll pass it over to Gordon, and Gordon is going to lead a panel of our experts. You can get a chance to see some of the great expertise we have at Clarivate and get a little bit deeper dive as to how we help our clients. Gordon?

Good morning, everyone. So it's a real pleasure for me to take us on a bit of a deep dive on the 3 segments. The good news to make it pleasurable for you is that I'm joined by 6 of our senior vice presidents who are domain experts who drive our business day to day in each of the 3 segments. So we're going to start with the Academia & Government. So I can join the first 2 panels and pop up on stage. So while they're walking up, let me just do a brief intro -- and I'm joined by 2 colleagues. First of all, nearest to me are Dr. Nandita Quaderi. Nandita, you talked about the gold standard Web of Science partner and Nandita is editor in chief for Web of Science. But more interestingly, in a previous life, during her scholarly in publishing Career as a [ GetAssist ]. She was also a user and a customer of those products. So pretty well qualified to talk about the market to us today. And Next is Jim Holmes. Jim came with a Progress acquisition and was a revenue officer there and it's also running revenue and sales across Academia & Government for Clarivate. So hopefully, we've got 2 of the best experts you could find to talk to us today. This is our largest segment, as Jonathan said, a GBP 1.3 billion, and we believe we're well positioned to capitalize on some of the really good strong macro trends that hopefully the panels will bring to life. Before I ask the first question, perhaps just a couple of things to share, just to set the scene on this segment for you. So Almost half of our turnover, half of our revenues is in the Academia & Government sector. It's largely a footprint around higher education, although we also see other parts of the industry I hear that. We have 10,000 of the world's leading academic institutions using these gold standard products day in and day out. So 10,000. Perhaps more interestingly, is the 99% of the world's top 400 universities use these products, again, day in, day out, and I have promised Jim, I wouldn't ask the 1% question, but 99% is good, but 1% to go. We estimate that we have about a $7 billion serviceable addressable market from the research we've done. And I think, as Jonathan said, growing about 4%, so low single digits, low to middle. So these are mission-critical products that help our university customers, our public libraries and indeed government research and education to deliver access to information, knowledge and learning. So you've heard enough from me. Let's start with the first question.

Jim, could you just talk a bit about the trends that are affecting the Academia & Government market.

Sure. Thank you, Gordon, and good morning, everyone. The -- in addition to the increase in research funding you heard Jonathan speak about just before, there are 3 key themes that I consistently hear from our customers. The first one is all around complexity. Think of the research processes. The second is around demonstrating the value of their research. This is the requirement of the funders. And thirdly, it's about improving efficiencies and effectiveness in the institutions operating model. So let me go into a little bit more detail on some of these to give you a feel what our customers, the challenges they are facing and you'll see how later on today how we'll help them meet these challenges. So around complexity, there's more and more government requirements. An example of this, just to put a flavor around it is in the U.S., all federal funding now for research needs to have that research publicly accessible. This raises a number of questions for our customers. Like what does it mean to be public? Where should I publish -- and where should I apply for grant money based on that, that I would have to make it publicly accessible. These are all challenges that our customers are facing. Then there's the research collaboration, the increases you see in research collaborations. The most recent, I think that was obvious to everyone was around the COVID vaccine and medical collaboration between public and private. And that's a big growth area for our customers. There's also a cross-border collaboration. And this is areas where our researchers need to go across border, China now being the research publisher as well as funding, a big funder in the research space, publishers need to work together across those borders. This adds a lot of complexity that the institution needs to deal with, increased regulation, IP considerations as well as just simply communicating and efficiently working together as a team, as a research group. And to navigate all this complexity, research administrators are seeking more tools and data to help them support in these endeavors. Around demonstrating their value, think of this as ROI for the funders. Their funding research, they're constantly now asking tougher and more sophisticated questions, what's the value that I'm getting from my funding? What's the impact of that research? And then finally, where should I look to further award grants where I get the most return on my investment? Now this is driving universities to really have to demonstrate ROI and they're seeking much more in sophisticated analytics around bibliometric societal, the IP impact of their researchers. And then tying this all together is about operational efficiencies and effectiveness. Our customers are under increased pressure from their stakeholders, across students, governments, faculty, their communities to use their resources much more efficiently and effectively as they bring this together. Now there are 2 ways I think about this. One is around the efficiency of just streamlining their processes. Think of content acquisition. How do I do it the most efficient way possible. And then effectiveness, I think about digital transformation. Now this has been an ongoing theme within our customer base, but the whole hybrid learning and cross-border learning that's been going on over the last several years has really accelerated that print to electronic, and that's a key theme that I hear consistently from our customers. And this is all reinforced last week at our Customer Advisory Board that we had in Arizona. So Gordon, those are the 3 key themes that I consistently hear from our customers.

Thank you, Jim. Maybe just move away from trends. I wonder if we could just talk a bit about our solution sets, so research and analytics, content aggregation and of course, workflow solutions. Nandita, you have to take research analytics and perhaps you'd share with a journey with Jim with his progress heritage as well in terms of the other 2 areas, but over to you.

Absolutely. Thank you, Gordon, and good morning, everyone. So we're going to start on the left-hand side of this slide. So our research and analytics portfolio helps researchers university leaders and governments accelerate the pace of research and accelerate the pace of research assessment by focusing on 3 key areas: firstly, analyzing the ever-growing research landscape, facilitating the research process, Jim has already told us how complex that is, and by helping make decisions based on published research from trustworthy sources. Now our flagship platform is called the Web of Science you already heard Jonathan mentioned that a few times. And the Web of Science is a highly curated and rich database of general articles, books and conference proceedings that have gone through and passed our rigorous evaluation selection process. And the Web of Science helps researchers in a variety of ways. It helps researchers identify new collaborators. It helps them determine which articles to read and where to publish. It also helps them to join the dots between articles, discover related research using the 2 billion citation links between articles, the so-called citation network that's revealed in the Web of Science. We also have tools researchers such as EndNote that help them create and manage their own personal collection of research articles of interest. But it's not just research as we said. We also serve university leaders and governments, and we help them to track the impact of research and to set research strategy at the departmental at the university and at the national level. And this is through our analytics platforms such as InCites, which are powered by the high-quality data found in the website. So now I'm going to hand over to Jim to talk about our other 2 segments.

Great. Thank you, Nandita. So I'm going to start off with Content Aggregation. This consists of highly curated content and rich data sourced from thousands of publishers across the globe. This helps students and faculty efficiently find the most relevant content -- the most relevant journal article, news article, video or book to solve the questions they're asking and to help further their research and also their education. Example of products we have here around Ebook Central. This is one of our flagship book aggregation products, which aggregates over 2 million books monographs as well as a sophisticated product that lets a university build a core collection of books in a subscription of academic complete, which is just over 200,000 books now. And then our flagship product ProQuest One Academic. This is where we bring all of our content together in a cost-effective manner for our customers that allows them to search across multimedia for the content they're looking for. And then bringing this all together is our software solutions. These software products, our workflow and engagement solutions that help our customers, one, manage the content they own, the investments they've made in content and services allow them to manage that the most effectively, buy the right content at the right time for just not now, but what they should be looking for in the future. And then finally, increasing engagement with their users across the institution from students to faculty. And we have example products that will give you an idea of how we solve these needs are around our flagship content procurement product called Rialto. This allows customers to buy books in the most efficient manner for the university. And then our integrated library systems or ILS, as you'll hear us talk about. This is our flagship products, Alma and Polaris. It really helps the university manage the whole ecosystem or their enterprise of their knowledge, resources and their library. Let me hand it back to you, Gordon.

Thank you both. Maybe just one more question. Nandita, we talk about helping our customers in this space for students, researchers and faculty access knowledge and expand knowledge and access information. The what and the why are pretty clear, but -- so how do we do that? Could you just bring that to life for us?

Sure, let me do my best. So Clarivate, we have 3 major aims in helping our Academic & Government governors, and they're shown on the slide here, and let me go into a little bit more detail. Firstly, we are helping customers in this segment, enhance global research, providing them with the data, the workflows and the insights they need to accelerate innovation. And this happens primarily through our research and analytics offerings that I spoke about briefly in the previous slide. We already have a really robust client base covering the vast majority of research-intensive universities. You remember, we have over 99% of the 400 top universities using our solutions. And we're also now aggressively expanding into the white space of less research-intensive universities, especially those that are actively trying to grow their research portfolio. And ProQuest has a much larger customer base that covers a broader range of universities. And this extra depth and breadth of ProQuest coverage is really helping our acceleration to expand. Our second aim is to work with researchers and to empower them to tackle today's global challenges, such as sustainability and DEI. So that's diversity, equity and inclusion. And here, it's both our research and analytics and our Content Aggregation products that we help to address this. So whether you're a researcher or a student, we already provide a vast amount of content and data through these portfolios. And we're increasingly investing in additional content type, particularly new video aggregation products and also multidisciplinary subject areas such as the progress black studies collection and also English language content. And our goal here is to empower all researchers to tackle the global challenges that affects all of our lives. And last, but by no means least, we're improving operational efficiency and effectiveness across universities and governments. Our workplace software tools help maximize existing resources in a rapidly changing world. Content is becoming ever more open access and users are becoming increasingly digital fast. And what we're hoping to do here is expand by providing new types of tools to enhance community engagement and student success by new tools that help them in new and in innovative ways.

Thank you, Nandita -- thank you to both of you. Just before we move on to our next segment area. Perhaps just a word about some of the white space that we're addressing at the moment. And earlier on, we talked about how ProQuest and Clarivate gave access to a broader market and Academia & Government together than apart. So Clarivate has a deep global history and of doing deals across all 3 of our primary regions. ProQuest also has a rich history of international software sales and some large content deals, but historically largely focused on the English language area. So one of the parts of the thesis was that we'd be able to expand the recurring revenue streams for Progress as part of Clarivate by giving access to these new markets, particularly APAC, but also in parts of EMEA. So the good news is it's true. We've recently added some really great German content and got some new relationships with a number of key German publishers. And that experience is encouraging us to look in other areas, and we have some really exciting opportunities to do these other non-English language deals, particularly in the Middle East and in Asia Pac, and I'm sure you'll hear more about that in the future. As part of accelerating the sort of internationalization or non-English content aggregation, the byproduct for our existing customers is great because they're also tasked with expanding their own library collections away from just core English. So it's a nice synergistic move between those 2. So let's move on to our next segment. I'm joined by another couple of colleagues. So introducing too. So on the far side for me is Dr. Rob Poolman. So Rob is a biochemist by training. He is responsible for all of our products in Life Science & Healthcare. And he's also spent quite a bit of his career in big pharma in 2 of the household names, Pfizer and Novartis, I think, Rob will nod. And Rob's right is Tom Halliday. Tom joined Clarivate as part of the Decision Resource Group acquisition, where he served as Chief Commercial Officer now runs our revenue and sales organization across Life Science & Healthcare. So before I pose a couple of questions, let me just give a thumbnail of what we're going to talk about or hopefully, what you're going to talk about, not me. We're pretty excited about Life Science & Healthcare. And if you think I'm excited, then wait for Tom. 17% of our revenues are a smaller part right now. But of course, we expect that proportion to change over time given the growth in those markets. We predominantly support big pharma, pharmaceutical biotech and medtech companies, but we also have a growing relationship with the U.S. health care payers and providers. We're very proud about these large relationships are deep relationships we have with large pharma's. But when you look at the many thousands of other drug and medtech companies out there, you get to a very large serviceable addressable market for our solutions of about $12 billion and a growth rate of about 10%. So pretty exciting growing industries, and we are well positioned to capitalize on that with the solutions we have at various points along the innovation and the drug life cycle that Jonathan talked about. So again, more than enough from me. I think we'll start off. So the sort of trends in the same way with A&G. So Tom talk to us a bit about what are those trends that are affecting the business in Life Science and Healthcare, particularly life science, that's our largest customer base.

Thank you, Gordon. I'm really proud and excited to be here. And I think I'll address your question in 3 parts or 3 key themes that we're seeing. And firstly, related to what Jonathan said in his opening remarks, there are massive volumes of clinical and real-world data being generated every single day across the entire globe. And there's growing urgency from our life sciences customers, pharmaceutical companies, biotech companies, medical device companies to translate this data into insights and evidence. And they're doing that for 3 key reasons. One, they really want to improve and advance their R&D productivity. This is an ongoing challenge in our industry for many, many years. They also want to gain market access and optimal reimbursement for their assets they're taking to patients. And then ultimately, they really want to ensure they maximize the number of patients they reach and ultimately, the impact they have on society. And this has becoming especially true because therapeutics are becoming much more complex. And we're sort of seeing the disease states being targeted are increasingly rare with much smaller patient -- target patient populations and also even in pharma and medtech medical device area, technology evolves. For example, improvements in AI and ML for bioinformatics is now allowing our customers to analyze and interpret biological and biomedical data. Now we always going on, our customers are really quite stringent on what they expect their partners to be fluent in. And this includes things like data management and data integration. The affluency in the technology is required to turn and transform all that disparate information into meaningful intelligence have clear understand of disease and market dynamics in the areas that they're focusing on. And all this has to come together to ensure that they receive actionable insights to drive their business forward. Now secondly, second theme is around the cost of health care, the ever present cost of health care challenges that we're seeing. And to address this, we're seeing more novel payment methods and models being brought into the marketplace, focusing around value and patient outcomes. And our customers are evolving alongside these changes in the health care ecosystem, requiring enriched data and enhanced analytical tools to be able to generate what we call real-world evidence, and this allows them to demonstrate and clearly communicate the value of their assets, their products to payers, prescribers and increasingly more importantly, patients. The third theme I want to talk about -- we've heard a little bit already today is around the growing burden for our customers to maintain regulatory compliance. And this landscape is shifting almost daily and in many cases, with the oversight increasing. And we see a lot of our customers, small customers, biotechs and small medical device companies, now looking for the very first time to see to commercialize their assets on their own, which is a great dynamic for Clarivate. Now this requires them to be able to commercialize your drug and take it to market requires to have deep domain expertise and understanding of the regulatory environment in each of those markets you're choosing to launch in. And for these companies, especially the smaller ones, any delays in regulatory -- regulatory related delay will have significant impact in their business. And so their success is dependent on quality intelligence and workflow tools that allow them to stay up to date with all -- and fully compliant with all the regulatory and safety monitoring commitments they must fulfill to be successful and to reach as many patients as possible. Now interestingly, all these 3 themes require connecting a broad range of data, intelligence and knowledge from across what we call the care journey or the patient journey. And that's what we ultimately do. We help our customers, the scientists, the marketeers, the brand managers, the therapeutic leads. We help them address these complex challenges with our proprietary data, our rich contextualized insights, our predictive analytics and really most importantly, our expertise.

Thank you, Tom. Rob, could we Peterson would you just explain and put a bit of shape around our subsegments and how we view the market and how we go to market.

Sure. Thanks, Gordon, for the question. Let me start by saying that we have a vast portfolio of solutions and data that covers the entirety of the what we call the drug and the device life cycle. I'm going to start from a research and development perspective. This is primarily our heritage, Thompson Scientific Solutions, which includes the flagship Cortellis platform. And hopefully, you had a chance today to see Kinsey do a fantastic demonstration of Cortellis -- this supports our Life Science & Healthcare customers really with regards to drug discovery, preclinical development, portfolio licensing and business development and also clinical trial optimization. And the key personas that are engaging with Cortellis are research scientists. These are biologists and chemists. These are business and competitive intelligence professionals. And their key aim in terms of these percentages to advance innovative therapeutics through the drug discovery process and into the clinic and into patients. Now once a drug has obviously got into patients and hopefully has been successful into the clinical trial testing, our customers they need to apply for regulatory approval for that particular therapeutic. And that's where our regulatory and drug safety data comes into its own. We have gold standard regulatory intelligence data and services. And these are complemented by proprietary toxicology and drug safety solutions. And recently, through the acquisition of ProQuest, we also supplemented that portfolio with Pharmacovigilance workflow solutions. Now these data and these solutions ensure that our customers are compliant with regulations globally that change significantly depending on which country you go to, and also the manufacturing and delivering high-quality, safe and efficacious therapeutics to get to patients. The third and final part of our portfolio is the commercialization part, and this is primarily composed of the Heritage Decision Resources Group, or DRG solutions, and given Tom's vast experience with DRG. I'm going to pass back to Tom to talk about this portfolio.

So this part of the portfolio as well as commercialization. Addresses such things as launch excellence, market access activities, commercial excellence and life cycle management. And the way I'd like to think of it is we help commercial teams and our customers use our data and solutions every single day to better understand the patient journey and the unmet needs that are in that particular setting. We help market access and pricing teams using solutions like Fingertip Formulary to really understand the reimbursement and payer dynamics they face with the asset they either have in market or they're looking to take to market. Every day also we're helping marketers engage with prescribers and patients with the support of our proprietary omnichannel insights as well as our recently acquired digital messaging capabilities. I should also mention in the commercialization piece, this is where we also -- a lot of our medical device medtech solutions also sit. Which primarily do align to the subsegment, but we are helping our med tech customers with research and development strategy and as well as regulatory requirements as well. But medical device, medical equipment and digital health is a really exciting space also from a Clarivate perspective. And these companies, again, utilizing our solutions every single day, including MedTech 360, market and price track, they're using our solutions, our services, our expertise to plan their product launches, the most important thing for them from a success perspective, optimize pricing to ensure that they reach as many patients that they possibly can. And then importantly, once they're launched to track their progress to understand what their market share is looking like and how they're competing in that particular area. So that's our medical device area as well.

One more question. Rob, one of the things we say is that we help our customers to innovate faster -- so again, could you just try and bring to life so how do we do that? We're not the tools are, we're not the problem statement is, but how do we do it?

Sure. Thank you, Gordon. So if we think about how we work across that drug and that device life cycle that Tom and myself were talking about a few minutes ago, Clarivate is in a fantastic position to really help our customers overcome some of the industry and healthcare's biggest challenges. Tom talked to these a few minutes ago, R&D productivity and trying to improve that is a key thing. Clinical trial optimization, overcoming regulatory hurdles around the world and finally being very patient-centric. We've got 4 main outcomes and they're detailed on this slide that we're delivering to help our customers overcome some of these challenges. I'll start with the first one, which is to help our customized maximize the value of their assets and their portfolios. We support our customers every day with regards to identifying, evaluating and prioritizing opportunities for innovative treatments. And we do this by supplying a vast amount of data, data around patient populations, for example, in epidemiology, market and competitive landscape data and also partnering and licensing. This is critical because it enables our customers then to be able to take those informed decisions in terms of which asset they take through the research and development process and into clinical trials. And talking about that, the second key outcome we're focused on is around supporting our customers advance those innovative candidates through that R&D process and into the clinic. Here is our systems biology data, our preclinical and clinical intelligence that gives our customers the confidence that they need to take those candidates through the pipeline and improve that important metric of R&D productivity. Now we and our customers want these medicines, these devices to reach the market and reach patients. It's our commercialization and market access data and also our regulatory data as well, which equips our customers with the answers they need to accelerate that path to both patients and to markets. We support our customers with regulatory intelligence data that deep level data, depending on which country you are around the world, pricing and reimbursement information, which is critical and also engagement data in terms of health care practitioner, provider engagement and also patient engagement as well. In addition to what I've just been through, a key aspect that we support our customers with is to understand the patient journey. There is a unique needs of patients around the world, depending on where the patient is located. And what we can help our customers do is tailor their go-to-market solutions and design what I call a holistic care package or care solution around a particular drug and a particular device. And then finally, once our customers on the market with their drug or their device, we supply our customers with the intelligence they may need to measure, protect and grow their position within the market. Our customers come to us to help them define and contextualize their end markets to help them track their penetration and their movement. And it's our market share solutions that support our pharma and biotech customers in terms of some of the specialty drugs that they're developing for some of those rare and niche diseases that Tom referred to earlier and also our medtech customers to get their medical devices to the market. And finally, an important area in this particular outcome is around growing their position as well. And that's where we work with our customers to support their communication channels. It's our omnichannel data, our digital messaging data, which Tom referred to a second ago, which helps ensure patient uptake in terms of the drug or the device and also patient compliance. So hopefully, Gordon, that gives you a flavor of the 4 outcomes we're driving towards.

Thank you both. Enthusiasts clear as well as the knowledge. Before we move on to the third segment, maybe just to talk a bit about one opportunity that is emerging. It pulls on the thread that Jonathan, you mentioned around regulatory issues, and you talked about the burden of regulation. So sorry, I've also gotten [Marriott] Float this morning, which came on a bit earlier. So the world of regulation is mandatory. So fixed process and procedures, things that have to be done, and it's not optional for compliance. We already have solutions in this space and some of our professional service team actually provide web app support and we have a product called ClaRITA that offers an alerting, monitoring and triaging of global regulatory updates from time to time. But by using our expertise in workflow solutions, and this is the key to this. So by combining workflow solutions in what's a very messy and very fragmented problem for companies -- and that work for expertise, of course, sits in Clarivate with our ANG team and other IP teams you'll hear about shortly, and leveraging that across the group to build workflow solutions, building on top of our connected intelligence products really addresses that fundamental challenge of monitoring and being on top of regulation. So we're developing a fully SaaS-based product, scalable, which will address multi-user cases in that space. And again, you'll hear more about that in the future. But thank you both right. We're going to move on and we're going to talk to another 2 of our colleagues from the IP segment. So I'll do a quick intro whilst they're coming up on stage. First of all, -- on my immediate left, Irmina Stroud, Irmina looks after the revenue and sales organization for IP and has over 30 years' experience in a variety of industries and to come full circle from part of her education career actually had a paralegal undergraduate degree in IP, so well qualified to comment on the market and the segment. She joined by Jack White, Jack like myself, joined Clarivate as part of the acquisition of CPA Global back in 2020 in the middle of pandemic, as you pointed out. Jack looks after the patent side of the business, and he'll talk a bit more about that. It's the largest part of the IP segment by revenue. And prior to that Jack was a consultant for Deloitte. So before we start, again, so a bit of framing on IP. So we talk about intellectual property. First of all, we're talking principally about patents and trademarks. And these are registered, protected and always global rights. They're also really core company assets that either directly relating to a product or a service that generates revenue or licensing revenue or they're a brand which underpins the entire company value in some cases, particularly for FMCG or high-quality goods. So these are indeed mission-critical services because losing those rights as you'll hear from the panelist is not really an option, has a massive impact. IP cuts across all industries. So we provide our solutions. I can't think of an industry we don't provide them to. But if you can, let me know. And that's one of the reasons why we have such a great connectivity between the 3 segments with the IP services. addressable market, about $5.3 billion and growth rate, as Jonathan said, about 6%. So just to set the scene, we've got great foundations in this business to really benefit from the tailwinds that we'll talk about in the IP segment. So first question, I'm going to start with trends again. So Irmina, could you just talk a bit about the trends that are affecting the IP segment?

Sure. Thank you, everybody. Thank you, Gordon. So as we speak with our customers globally, we continue to hear 3 key trends at just our -- and every single customer. And as Gordon had mentioned, it's important to first understand the ecosystem as we discuss IP. It starts with the law firm, the IP law firm. It is in-house counsel. It is the PTOs, the examination offices that provide the registration application ultimately grant that either patent or that trademark. And then you have managed service providers. So this ecosystem is incredibly complex globally. And our customers are facing such challenges to navigate this complexity. And as they're trying to figure out their registration routes, their protection routes and then their commercialization, this network is a requirement to have local agents on the ground to be able to navigate that PTO or to be able to navigate the regulations that continue to change. This network requires an incredible amount of outdated technology right now, and we're trying to face that technology gap, but it also requires an incredible amount of collaboration, the willingness to connect and then going back to that technology, the willingness to change and to be able to bring more forward future thinking types of technologies. So the first and foremost trend that we're seeing that is really challenging for this market is just the complexity of it. The second one is great because it goes back to technology, it's AI, machine learning and predictive analytics. While this is fascinating and everybody is on this bandwagon as we all know, it really is also driving the speed of IP right now. And so with our PTOs, we're seeing that the [inroads] are really moving quickly. Our patent and trademark offices are facing this incredible backlog of patents and trademarks that need to be processed. And this is where AI is allowing them to be able to move through this backlog much more efficiently with much more accuracy. And really then for the information professional, it's allowing them to spend more time on highly valued tests that they be able to perform. So this technology in our space in the IP space is definitely making [inroads], but yet it's still in its infancy. We see great opportunity in this area. The third one is honestly that IP is truly an asset. It's an asset within every single corporation that innovates, and all leaders globally are looking at how do we actually manage this asset. There's so many complexities, as I mentioned, with the geopolitical factors with supply chain resilience as we saw through COVID, there were challenges there. But then also just sustainability itself. And so every single corporation is looking at how do we not only bring our innovation to market, but then how do we protect it, how do we leverage it and it's part of that corporate strategy. So those are the key trends that we're consistently seeing from all of our customers. And as I mentioned, that ecosystem. It's the law firm that's facing these challenges. It's in-house counsel that's facing the challenges, PTOs themselves, the examiners and then also the service providers as well. So Gordon?

Thanks, Irmina. Jack talk to us about why we're well positioned to serve the market given the complexity that I mean as outlined?

Absolutely. Thank you, Gordon. So the IP division is really focused on 3 core areas: our patent and trademark intelligence Patent & Trademark Management and Patent & Trademark maintenance solutions. So starting on the left, the Patent Trademark Intelligence. This is really a combination of our proprietary data, our analytical software and our deep technical expertise in our people teams supporting critical IP decisions across the innovation life cycle. Our customers trust us and those solutions to help them navigate some of their key decisions, the filing type accelerating their R&D and also how they really focus on their IP strategy and tied that to the wider business strategy and business outcomes that they're looking to achieve. We have some flagship products in the space, which you all heard of earlier from Jonathan, Derwin, being one of them, which is demonstrated here today by Mark, and we have [ another ] IncoPat also in the patent space. And then on trademark space, we have CompuMark. The second area, patent and trademark management. So this is essentially our workflow software solutions. These help customers manage their IP portfolio in a very structured environment. And we have on-premise and SaaS-based solutions for both corporate and low firms to provide this needs. We combine then our IP services team to our people-based teams as well as integrations into our intelligence suite to provide a solution across the whole of that life cycle of innovation. And again, we have some flagship products. One of them here today is demonstrated IPfolio by Catena. And we also have Inprotech and FoundationIP for our law firm customers. The third area, Pattern and Trademark Maintenance Solutions, so we have a range of services for our customers to help them navigate the protection of their IP and the management of their IP. We have 2,000 colleagues across the globe the work either in our customers' solutions for them or work for us in our ecosystem but provide those outputs to those customers And these activities are mission critical for organizations. So for an example, in certain geographies if you laps in patents and there's an issue with renewal or filling activity and you can't restore that afterwards that means you've lost that patent forever. So to help bring that to life, approximately 60% of new patent filings are in the technology and compute space. So imagine one of these high-tech companies that have a pattern in a certain geography that is not restorable, and they lose that patent through that renewal process. They could lose out on millions of dollars of licensing fees. They could lose their first mover advantage in that market. And then in doing so, that opens up the market competition, which then can impact their revenue and sales in the future. So to counter this, we have a robust processing payment system built over decades of work from experts, and it solves those solutions for tens of thousands of customers with their portfolios. We renew 3.5 million patent and trademarks every year, and that's $2 billion of payments, which are going globally across 270 jurisdictions and within those jurisdictions, there's different laws which are updated and change regularly, which we need to keep on top of. So Gordon's essentially, we have the intelligence suite, we have our workflow management suite. And then we have the maintenance of those solutions as well.

So by now, you've got the format, you know what's coming next. So we understand the problem statement and the environment and the tool set. And perhaps a shared question, if we could, focusing on corporates and law firms because they're slightly different. But so how do we help customers establish, manage and protect IP.So just trying to bring that to life to people.

Thanks, Gordon. So at Clarivate, we have a broad range of solutions across this life cycle that we've just talked about, which puts us in a unique position because of the depth and breadth of the services we have. We really aim to deliver 3 outcomes, which are called out here. So the first is really a supporting effective decision-making. We have a rich history in the space, and we've talked about Derwent and CompuMark earlier on the Patent and Trademark side. But really the foundation, and you've heard this as a theme before in some of the other areas is our curated data. So we have millions of records each year in the patent side that go through a deep cleaning and filtering process with additional insight added to those before they even go near an analytics platform or into any of our tools. This provides customers with a unique opportunity to manage their innovation cycle, manage their risk and manage their brand activity. So the second area and again, this is a theme you've heard across the other segments as well is around how we manage our efficiency in our IP management tools and processes. So Irmina as mentioned already, it's a very complex landscape that's getting even more complex as the filing numbers are going up across the world, globalization, technology trends and the laws and the rules constantly evolving. And our software and services really help customers streamline and automate those processes across their portfolio, freeing up their time so they can do more value-add activities helping with decision-making and really saving them time. And finally, the other benefit of the services we offer in this space is we actually have the opportunity to provide a compelling saving opportunity for customers in terms of cost because we have the scale to do this across a breadth of customers rather than if they undertook those tasks in-house. So Irmina, with your IP Power and legal experience, do you want to cover the third point around low firms?

Sure. So as many of you know, a law firm does operate very differently than a corporation. And in many ways, we see that Clarivate truly as a critical partner to that law firm. The services they ultimately desire to provide is stellar legal service, legal opinions and helping their clients not only bring their innovations to market, but then to protect them and to help them commercialize it. So Clarivate is that critical partner where oftentimes the client is facing some aggressive challenges in their market. And with Clarivate solutions where we have our software, and we also have our managed services, we're able to allow that law firm to be able to expand as their client base changes as well as it goes out further into the geographic areas that, that client wants to be able to go into. And as Jack mentioned, with patents, it's very similar with the trademark as some of you may know. So think about your favorite brand of software or your favorite food. And that right now is one of the highest filings for trademarks. We're seeing that globally, it's dominating 37% of the filings. And so think about if one of those brands, I won't mention one, but your favorite soda, for example, if that brand lapsed, what would happen to that company? What would happen to that law firm? So first, the ability to commercialize and impact their revenue is at first most for that company, then it's brand reputation. And of course, for that law firm, it's their client. So the fact that we are such a critical partner for the law firm to be able to protect what is important to their client is so critical. Oftentimes, just like with the patent, if a trademark is lapsed, it may be very, very difficult to reinstate it back into the market. And therefore, you've exposed that company, that corporation who has spent millions of dollars to bring that product to market to then be able to commercialize it to license it and all of the revenue challenge channels that come with that is now in jeopardy. So we truly partner with our law firms to be able to deliver the best services for their clients in a very profitable manner because that backbone of their operating system, which is our software that we provide in our managed services allow them to be able to scale their services according to what their customers' needs are. So Clarivate certainly is in a position to be able to offer the services that are needed to this entire ecosystem.

Thank you both. Just to close this part of the session, maybe just to talk for a moment about one of the unique opportunities that we've been addressing in the IP segment space. We talked about this ecosystem. And it's fair to say you can get nothing done in IP by operating a loan. So it's not a choice thing. You have to collaborate with these people who are either law firms, IP creators, internal legal teams or indeed patent and trademark offices, you simply can't get the job done globally without it. In what we call filing and prosecution which is quite upstream in the processor before grant [ a patent ] or trademark, there's a huge amount of communication goes on often between 5, 6 or even 8 parties, multiple law firms involved supporting on corporate. It's unstructured, it's e-mail based or even worse in some cases, and it drives a huge amount of cost and risk into that process. So we have a unique opportunity with our workflow capabilities and our customers are asking us to help solve this problem of this unstructured data flowing around. So we have, we started to. And I think Jonathan Collins will talk a bit more about this example later in the operating space. We built something called Connect working in partnership with a very large global customer. And it addresses that fundamental structured data exchange based on a workflow tool that allows them to communicate with as many actors in the ecosystem as they want in a way that drives efficiency, improves execution eliminates risk and improves accuracy. So it really fits our IP. And in fact, it fits Clarivate, motto of making better decisions to innovate faster. So it's a great example. Can I just say thank you to all the panelists, and thank you to all of you for listening to them as well. And I think now we're going to have a short break, and then we'll come back. Jonathan Gear is going to talk about our strategy. 10-minute break. [Break]

Great, everyone welcome back. We'll now move the next section with 2 things I'm going to cover, then we're going to pass it on to Jonathan Collins. I'm going to start with our strategy. And you've heard in the beginning part of the day kind of the buildup of what makes Clarivate and why we can win. You've also heard from Gordon and a great example of the expertise we have across Clarivate. Talk about our market segments, our products and how we help our clients. So now we're going to talk about our strategy because while we have great products, and we have great solutions and great relationships. As we know, we have room to grow and improve this business. It starts with the core of this, Clarivate as a company and all the pieces we brought together have historically been data-centric providers, focus on data. And data is important. I talked about in my slide, the criticality of starting with proprietary data. But we're now going to take Clarivate up the value chain to the left and become an insight-driven strategic partner to help our clients drive the innovation life cycle. Now I shared with you this framework back. I think it was the October, the Q3 earnings call is the 5 key pillars of growth that will drive the execution of our strategy. I'm going to remind you here, and as Jonathan Wash through his section, he's going to bring it to life. But it starts with having a customer-centric go-to-market model. An example I gave a few slides ago talking about our ability to penetrate multiple segment products into single customers is an example of how we focus on that. Number two, we're going to leverage interconnected data and that chart that I talked about, that lovely kind of colorful spaghetti chart that shows how we enhance products by leveraging our different data sets into unique solution for our clients as an example of that. We're going to, as I've said many times now, shift beyond just being data into value-added analytics and insights. And this takes us up the value chain. It also makes our relationships much more sticky. We're going to bet ourselves with workflow solutions, SaaS-based workflow solutions where it makes sense, where our clients are using our solutions literally every second of their process. And finally, we're going to wrap it around with value-added services, which just makes our products more relevant to our clients, helps drive up the value chain and again, makes our relationships even that much more sticky. Now I'm going to now talk about our current position. And again, in this slide, if you remember back in Q3, we talked about a little bit where we are. But just as a reminder, as I've said earlier today, we operate in 3 excellent secular growing markets. Second, we have, as I think we've demonstrated today incredible products, incredible solutions, gold standard products in many of the cases. However, collectively, as we discussed in the Q3 call, today, Clarivate is not growing at the market rate we should be growing at. Now when we peel it back, most of our assets are indeed growing at or above market rates. We have a few of the assets which are not. And what I'm going to do in the next few slides in this section is kind of peel back this layer of the onion building off the presentation that are experts to today and go segment by segment and be very specific as to where we're doing well, where we need to do better. And then I'm going to pass it off to Jonathan, he will take it down the level and be exactly clear what is our executional plan to lift our products, lift each of the segments and therefore, lift the growth rate of Clarivate. So just as a reminder, you saw the slide back in our Q3 earnings call, and this just shows the reality of where we are today. So we live and collectively across all of our 3 segments, you look in that middle row, collectively, the markets that we serve, the direct markets that we serve are growing around 6%. As we know, we've been going collectively around 3%. So we are underperforming just our market potential, without even exceeding market just our market potential by 50%. So now I'm going to peel it back segment by segment. Let me start with Academia and Government. So just as a reminder, this market has grown about 4%. We've been growing around 2%. It's about a 2% gap to market. I'll start with the good news. Good news is in that middle row of content aggregation, we're doing very well. And this is our flagship ProQuest one academic product is growing at market rate.And we see that growth. We see our ability to maintain and continue to build off those incredible renewal rates that I described a few slides that go in this area and see that growth rate continuing at or above market. Workflow software solutions that bottom subsegment you see there, that would grow just below market rate. If you peel that back, our flagship product, Alma, is doing a fantastic job growing well above market rates. We have a few other products within that, which are not quite growing there. And our focus there is a very clear strategy we have just to extend the workflow in our flagship products, and that will lift that segment. But our issue within Academia and Government is this first subsegment of research and analytics. And this is underpinned by what is maybe ironically our gold standard product of Web of Science, which as I've said, for a tremendous critical product but is underperforming the marketplace as we've allowed competitors to come in kind of outside of our core market and eat away at the edges. And what we're going to do here with this flagship product is invest in this product through additional content, additional analytics, different packaging structures to move back into the subsegments in the market that we have previously seated. Jonathan will go into this in detail. Next segment of life science and health care. I mean, this is a phenomenal end market, growing at 10%. It's a double-digit grower and we talk about all the proliferation of data taking place in health care. This is going to be tailwinds for years and years to come. We are today underperforming also in this subsegment growing at around 6% historically it's about a 4% gap to market. And once again, if you go through those subsegments that Tom and Rob discussed earlier, research and development anchored by our Cortellis product we're growing at or above the market rates, feel great about what we're doing there. And this is before we add more growth by leveraging insight and analytics on top of our core data. Regulatory and safety, once again, we're performing right at market. Right where we need to be. And this is also an area we continue to invest in because we see additional opportunities such as with pharmacovigilance that we discussed in our Q3 call. And the issue once again is in one area is in commercialization. Now commercialization has some great products performing well like real-world data, but there are also products we are frankly, way underperforming the market on around market access and pieces like that. And we're going to be investing and doubling down because we have the pieces. We have the pieces. We're going to be doubling down our investment here to create the solutions to make sure we are realizing this market opportunity. Once we get that piece right, all of life science health care will be growing at or above market rate and this segment will be lifting up the growth of the entire company. Finally, in IP, similar story. First, market growth rate around 6% and we're growing at around 3%, so underperforming by about 50%. And again, looking at those 3 pieces, you'll find a very common story. First, patent and trademark management, as Jack described, great set of solutions. We're growing at market rates. We know what we need to do to continue to grow at or above those market rates, patented trademark maintenance solutions as where we support the annual renewal of patents and IP. Slightly below market rate. But we know what we need to do there is the digitization we can do there. We will be doing to kind of ease into the segments we're missing feel very good about that plan. The issue here is one subsegment, it's our patent and trademark intelligence. And similar to research and analytics and Academia and Government, the RNE here is the anchor product here is Derwent. It is a gold standard flagship product. But over the years, the market has expanded for more hardcore users to more casual users of this process, and we have not moved with that market. We are now executing against a plan to get innovate in new solutions here to move into these markets, we set it to others and bring them back into the fold, and we're going to win, we're going to win because we have the content. We have the other pieces in the value chain to bring it together. So when I piece it together, here's how I look at the outlook for the next 3 years. And again, Jonathan is going to go into detail, so you'll know exactly what the plan is under each one of these 3 segments and the 3 underperforming subsegments. But this is the path. Again, we're currently at 3%. We're going to close this gap by 2025 and be growing at or above market rates. Now Jonathan will come up and he's going to walk you first through the execution plan behind this and then walk through the operating model. Jonathan?

Thank you sir. So I'm going to go ahead and walk us through the actions that we're going to take in each of our segments to just close that gap to the market that Jonathan identified. And then I promise I'll get to the numbers that I know you've all read in advance as you flip through the deck. So on Slide 67, you can see on the left-hand side of the page, this is the construct that we think about how our market is set up. And how it's growing. And if you go back to what Jonathan referred to as Phase I of the Clarivate journey, we spent a lot of time focusing on the total addressable market. We talked about how big it was at $100 billion, and we talked about its double-digit growth rate. In kind of Phase II where we did our analysis together, we focused a bit more on the part of the market that we serve today, which is about 1/4 of the overall size of $25 billion, and it's growing at about 6%. And the way we've built our operating plan is I'm going to take you through each segment and describe the 2 types of actions that we're going to take to be able to improve the growth rate of the business. But we're at 3% today, like Jonathan said, and the first types of actions that I'm going to take you through are those that are going to help us to achieve the growth rate in each of those markets, getting us from 2% to 4% in A&G from 6% to 10% in life science and health care and from 3% to 6% in the IP space. Those are all going to be denoted by the green icons. So the slides that have those in the upper right-hand corner are the things we're doing to move from the overall 3% to the 6%. But we're not going to stop there. We think there are really good opportunities to invest and underwrite additional areas of improvement that can help us to move into parts of the market that we don't service today that are high -- growing a bit higher and give us the potential to move beyond that. So this construct we're going to use as we step through each of the segments. The second thing I wanted to do is just take Jonathan's growth acceleration framework and make it very clear that all 5 of those pillars are highly relevant for all 3 of our segments. And in each segment, with each pillar, we're going to have a mix of both types of actions. So the way this slide is laid out, if you look at the first column, customer-centric go-to-market model, where we continue to focus on opportunities to cross-sell both within the segment itself. And then where it makes sense, sell outside of the segment, you can see there are a mix of action. So within the ANG, you see a little bit of green in that circle you also see some blue. There are places where we can help to catch up to the growth rate by selling better within the segment. And then there are opportunities for us to sell outside of the segment, which we think can help improve the growth rate beyond that. So that's what you have in Column one or in the pillar one of the strategy is a mix of both, but it's heavily weighted toward opportunistically taking solutions in a current segment, selling them to others to be able to improve the growth rate there. Interconnected data is a little bit different. You see a lot of green in that column. This is really the key foundational aspect to turning around some of those legacy solutions that Jonathan talked about. We've got excellent data, but we need to bring it together in a better way to meet expanded user personas to drive a higher rate of growth and to be able to catch up some of that share that we've ceded over the last few years. Analytics and insights represents an opportunity for us to move up the value chain and capture higher growth in parts of the markets that we're not serving today. So you see a lot of blue in that column. When we step through this, you're going to see a number of initiatives where we'll move into spaces we don't necessarily play today and improve our growth rate. Within number four, workflow solutions, this one is interesting because we are a scaled software-as-a-service provider in both the A&G and the IP segment. So our flagship product in A&G is Alma. We refer to it as an ILS or an integrated library system, it is vendor hosted, multi-tenant, deployed around the world with full workflow capabilities to help librarians. We also have the product we talk about a lot, IPfolio within the IP space. It's the tool that Jack and Irmina were referring to that provides the workflow capabilities in that ecosystem. However, within the life science and health care place, space. We have a couple of early products. We've talked about one of them, ClaRITA, we'll mention another in a few moments. And that's an opportunity to take that capability in those other segments where we can grow further by building on that, but also bring it to the life sciences and health care space and drive a higher rate of growth by moving into some white space. And then finally, on the value-added services, we've got a great consulting practice in A&G and we're going to give you some great examples of that. And we've got a very strong practice within life science and health care. And we have a great managed services business in the patent renewals within the IP space. So we're a good player there, and you're going to see a mix of actions across that category to use our consulting practice and our advisory capabilities to help catch up to that market growth rate in some places and in others that will help to accelerate us beyond that. So what I'd like to do on Slide 69 is start with the A&G segment. And you're going to see a common set of slides for each of the categories. The first is going to be the things that we're going to do to achieve the growth rate in that category. And I'll start with Web of Science. The good news here is we have got a great start with Web of Science. So I would say we're farthest ahead in terms of the recovery on that product based on some investments we've already made that we think are going to yield benefits in 2023 and beyond. And let me just remind you of a few things we've done. We've talked about this, but I'll go through a few more. So the first thing we did at the end of 2021, we completely overhauled the UI or the user interface of the platform. We got great feedback from the market. Monthly active usage in 2022 was up 78% versus the prior year. That is absolutely critical in having renewal conversations and driving value capture from the product. The second thing we did is Nandita's team has been very hard at work, the editorial operations in expanding the coverage of our journal impact factor. We are ubiquitous in the world's top 400 institutions with the product. But as you move down to institutions that are further down it's not as well penetrated. In order to capture that part of the market, we need to cover more journals. So we have 9,000 new journals that are going to get a jiff in 2023 to help drive the appeal to other parts of the market. The third thing we've done is add more content to the product. So early in the first quarter of this year, we added the preprint citation index. This is taking information that's been -- before it's been published in providing the ability to discover it, so you can see where there's something that may relate to your research topic. So we're excited about that. And then finally, we've taken all of the content within Web of Science and put it into the index that powers Summon and Primo. Those are the products that we use to help researchers discover information within the library. So that's going to uncover more content in those indices, drive more traction or users to our platforms and improve the usage. So the other thing that we're doing is focusing on the go-to-market motion for Web of Science. There is a great opportunity for us to cross-sell content and workflow from the ProQuest side with Web of Science and vice versa. So Jim and his team are heavily focused on that. We got some great traction last year, and we know that there's more to come. I'd also say that Web of Science probably represents the best opportunity to sell outside of the home segment, like Jonathan referred to earlier. Research companies that are heavy in R&D can really use the content. So we now have a motion that focuses on targeting those customers that can use that product, and we expect to see further traction this year. It's true to say, though, that Web of Science isn't the only thing that we need to make some progress on. There's a little bit of room for improvement in our workflow business. Our flagship product almost doing great. It's outperforming the market, but we have some point solutions that are lagging the market a little bit. So we've invested to bring some new solutions to market. And in particular, what I want to talk to you about today is Leganto . Leganto has got a really interesting value proposition. This software tool helps the professors identify content that the library has already purchased and build their course materials around those contents to save the students' money on textbooks. So we had a customer that adopted this tool, California State University San Marcos, purchased it. They've been using it for gets a little over 1.5 years. And they've so far saved over $4 million on purchases for the students by using the tool. So it's a great example of the investments that we can make to help us improve our growth in that sector. Next thing I'll do is move to the areas of opportunity that we see to grow beyond this. The government is a great opportunity that we can leverage a commercial channel that crosses all 3 of our segments to sell more content. One of the interesting opportunities here is with national labs. So our IPfolio solution is a great opportunity to help these labs commercialize their technology. And last year, we signed a major U.S. lab and we have others that have seen the implementation going well and have generated interest based on that. So there's another way that we can drive further sales there. The other thing I'd point to is we talked about it earlier in the trends in the market. The U.S. CHIPS Act and other legislation that's targeting national competitiveness are driving an influx of funding. This is a great opportunity for us to use our expert services to help both those that are seeking funding and providing funding to optimize the investments that are being made in this area. And then finally, there's a lot of buzz right now around chat GPT. So what I want to highlight are a couple of areas of where within A&G in the segment, we can utilize this new technology to enhance the products and drive further growth. The first is we're enhancing our web scale discovery applications, which really serve as the virtual front door to the library to include generative AI to help users rapidly translate topics into search terms to get to the content quicker. The second is we're infusing AI into our library workflow products, and we're using machine learning to streamline repetitive tasks and generate insights for making decisions around content selection and acquisition. And then the last thing I'd like to talk about on this slide is our e-commerce marketplace, Rialto. We've had hundreds of libraries around the world that are purchasing this next-generation tool that is a leading-edge application that helps librarian select the right content at the right time for the best possible price. In the aggregate by executing both the closed the gaps to achieve the market and exceed beyond, we think there's great runway within the A&G space. The last thing I want to do, and this will be the final slide in each 3 of these sections. It's just give you a sense of a couple of more concrete examples of where we're getting traction to help provide confidence in the execution moving forward. So on the left of the page, you'll see that we're already leveraging our data analytics and insights to provide expert services to important parts of the market. So right now, we have a team that's advising the VP of Research at a top university in the U.S. on how it can further move up the rankings and improve their research outcomes. The second example in the middle of the page is where we run a major countrywide deal in Europe that combines our analytics and our content and provides access to the country's entire university library system. We see further opportunities for this, not only in Europe, but in other regions of the world. And then finally, we're in the process of helping a country in Asia wholesale update their digital transmission for their libraries across the country. They're using our next-generation tools. And what's really exciting about this opportunity is they didn't only select us for the capabilities we have today, but the road map we have to enhance discovery and engagement across those libraries. So what I'd like to do now is we're going to pivot to the Life Science and Healthcare space. When we think about what we need to do to move from 6% to 10% here, it's really 2 key areas that both map to commercialization. The first is we've got to improve the growth in our consultancy. And the second is the solutions or the products that we're delivering to the market need to have better interconnected data to meet better use cases. And I'm going to talk through both of those. We have acknowledged multiple times that we had an own goal, if you will, late in 2021, by allowing a high level of attrition within our consulting practice. Last year, we made great progress in building up the capacity within that practice. And as we turn to 2023, we're counting on a steady improvement in the utilizationof that team as they get back into the market to provide these services. When you think about what we do well in this area, our niche is delivering integrated value-added services that combine our content our technology and deep subject area expertise. And I've got a couple of recent wins that are going to deliver early this year that I want to share with you. The first is we're enabling a top 10 pharma to optimize clinical trials and prioritized endpoints in cardiovascular disease, taking inputs from internal and external to deliver the capabilities. The second is we're informing a launch and marketing strategy for another large pharma by delivering insights into disease diagnosis, patient treatment patterns and long-term outcomes derived from real-world evidence and our own proprietary research. These engagements are so critical for this part of our business because they provide a great opportunity for us to sell our content and solutions not only to the group we're working with internally but other parts of the organization. When we think about the other piece of commercialization that needs to improve, it's imperative that we integrate data from our legacy solutions. So Cortellis and DRG, we've got to bring the data together around common subject area expertise and focusing on the use case that, that data can solve a problem for to deliver a differentiated value problem. I want to share with you 3 hypotheses that we've tested with customers recently that have had great traction that we're going to underwrite and invest behind. The first is we built a new platform that's in beta right now called Market Access hub. It's aimed at accelerating market access for drugs by providing reimbursement insights that combine data from 2 of our legacy products, fingertip, formulary and health based. The second is a new analytic tool that uses AI to combine drug coverage policies and real-world data into a single application. And then the third is a new data set where we take enriched health care provider intelligence and combine it with patient disclosure requirements in order to support compliance with the new U.S. Transparency Act. As we turn to the next page, given as Gordon and both Jonathan highlighted, this is our largest market. It has the highest growth rate. We had a lot of great choices to invest behind to help accelerate our growth rate. I'm going to share with you the ones that we've selected and we're going to focus on in the coming years. We introduced one of these opportunities earlier in a presentation today, and we announced a couple of them at Q3 earnings last year. The first is, just as a reminder, we are very well positioned to leverage our workflow capabilities in our other 2 segments to expand our ClaRITA offering targeted at regulatory compliance to deliver a scaled Software-as-a-Service platform. Second, similar to the development methodology with ClaRITA, we can take our drug safety triage tool and expand our pharmacovigilance offering. And then the third example is we're going to make a very substantive investment to expand our content and our platform for real-world data. Jonathan referred to this as moving up the value chain, no longer being merely a data broker, but putting analytics and insights on top of that. On the content front, we augmented our content late last year when we released an enhanced specialty pharmacy data set that covers 1 million patients and 500 specialty drugs in rare disease and oncology. The platform that we're building will have purpose-built analytics that are modular and therapeutic area specific and will serve as a major enabler to convert these historically transactional revenues into a subscription base. And I'm pleased to share with you for the first time today some of the specifics around the initial solution that will be launched on the platform. It will be called the Patient Cohort Builder. It's going to enable research, study and design on real-world evidence built with our real-world data covering 300 million patient lives in more than 40 billion health care claims. The analytics will empower our customers to better prioritize R&D spending and their own commercialization strategies. Similar to what we did with A&G, I'm going to end Life Science and Healthcare with just giving you a few more examples of where we're making traction in these specific areas that I highlighted. First is we've partnered with a top pharmaceutical company to provide them with deep contextualized insights into the burden of disease across the entire Asia Pacific region. We're leveraging harmonized data integrated across numerous customer and external sources. Here, we're enabling their global teams to work collaboratively across functions from a single source of truth, leveraging a cloud-based data lake and analytics platform that we've built for them. In the medtech segment, we're supporting a top 5 medical device company with a comprehensive set of market intelligence solutions to guide their commercialization strategy and their go-to-market approach. Our customer now has reliable harmonized data and is for a set of market share and business performance metrics that leverage our proprietary data analysis methodologies which they can use to incentivize their teams appropriately and coordinate within their own organization. And the third example is we're empowering the regulatory affairs function of a top 25 pharma to execute a digital transformation of critical components of their operations. We're deploying innovative workflow tools that are married with our high-quality regulatory intelligence content to streamline their processes. This will enable the customer to more efficiently and effectively respond to the ever-changing regulatory environment that they operate in around the world. So now I'll move to the last category, which is IP. As Jonathan highlighted, the key area of focus to return to the market growth rate or get from 3% to 6% is around our patent intelligence segment. So patent intelligence is largely the Derwent product but also includes Innography and IncoPat solutions that we have in the market as well too. The good news here is our enriched patent data is unrivaled around the industry. No one can compete with that aspect of our offering. However, in the last decade, the user landscape has changed, and we've not made the investment in the application layer to meet the needs of this broader group of users. So we're in the process of developing use case specific apps that will improve search capabilities and combined with an AI-based classifier to make our tools more relevant for the expanded personas within the business group, the R&D group and the technical legal organization. In addition to these investments, our self-service patent tools, we are further deepening our integration in our full services offering with our IP management software. We already provide the ability for our IPfolio customers to request patent search services from the software directly, and we're now working to integrate our full suite of IP services to enable our customers to file create and manage their intellectual property within an individual ecosystem. We've also made a modest investment to be able to accelerate our growth within our patent maintenance services business. We've done this in 2 ways. First, we've invested in tech-enabled services to improve our efficiencies and help pass those on to our customers. And second, we're applying new technology to our existing expertise to make decision-making better. An example of the first is where we leverage RPA or robotic process automation in our patent renewal services to offset demand for about 35 full-time equivalents, and we are able to save those -- share those savings with one of our key or multiple of our key customers. An example of the second is our brand landscape analyzer tool. It combines AI with human expertise and proprietary litigation content to assist clients in making more informed decisions. We're so excited about this one that we filed 7 patent applications ourselves to protect various aspects of the tool, which we believe are going to disrupt the traditional search and watch services. An added benefit of the innovation is we'll have the ability to convert what's been a more historically transactional revenue stream to a subscription base. When we think about the opportunities that are beyond where we already serve in IP, there are a number of them, but there are a few of them I'm going to focus on this morning. I'll start by reminding you that National Patent and Trade offices or PTOs, as we refer to them, are at the very heart of the IP ecosystem. Our partnerships with these organizations are particularly important for us because they elevate our brand and make us a trusted solution provider around the world. We've got a great position with these organizations. So about 40 of the top PTOs around the world already use our products, the top 3 in North America use us and 4 of the 5 largest international offices use us as well, too. But there's room for us to grow in emergent reasons. And I want to share a great example of one of these emerging areas and how we're helping them. So the Canadian PTO adopted our design vision product for their examination process. They told us that within a year, this AI-based tool helped them to eliminate their entire examination backlog for trademarks. Our enterprise-wide corpus of innovation intelligence uniquely positions us to help companies that have to decide where to invest in R&D. Today, we've got a number of corporate and government customers who purchased a combination of Derwent on the patent side, and Web of Science on the scientific literature side to power their own business intelligence processes. We see a great opportunity to develop a product that we can build once and sell many times to those targeted users to drive great returns. The next one I want to talk about is Blockchain Technology, which provides a great opportunity for us to lead in the digital transformation of the somewhat antiquated IP infrastructure that both Jack and Irmina highlighted earlier. Last year, we invested in a company called IP that provides Blockchain Solutions, and they specialize in smart solutions for intangible assets. In the second quarter of this year, we're going to integrate that tool with our IPfolio platform so that customers can send verified data around their IP assets to the IPwe blockchain. And finally, our overarching focus in this segment is to deliver a combination of products and services that streamline IP filing and payment. To that end, we've developed Connect. This is the platform that Gordon alluded to earlier. It's -- we built it for one of the world's largest food and beverage producers, and the product addresses challenges of IP owners that rely on an extensive agent network around the globe. The collaboration capabilities are built on our IPMS, reducing prosecution and cost errors. We plan to launch additional modules and ultimately deliver an industry-leading filing and payment management system. And finally, to a few more proof points where we're getting traction in the market within IP. One of the world's largest automobile manufacturers from Europe has purchased patent intelligence from us for years. As a part of their drive towards data decision-making, data-driven decision-making, they're combining our content in Derwent and Web of Science to inform where they invest in R&D. This is a strong proof point for us that we can take the work they've done internally, utilizing our data and productize this to deliver for other customers across the technology and manufacturing landscape. The second has to do with the Japanese conglomerate that's using IPfolio or IPMS today. We meet their needs for complex innovation and IP filing requirements, which involves very strict local language requirements and very country-specific workflow needs. The investment we made in this product, combined with this reference account, has given us a great ability to take share in this region as the leading producer. And then finally, we collaborated with a key customer, which is a European personal care company to develop a data-driven approach to help them manage and assess their trademark risks. This provides strong commercial validation of the BLA tool or the brand landscape analyzer tool that we highlighted, and it cemented our result to continue to invest in this to bring it to market in the near future. So with that, I'll close out this section with a slide that just highlights all of the aspects that Jonathan walked through for the growth acceleration framework, all 5 pillars are going to be highly relevant within our business to help us not only move from where we are today at 3% to 6%, but also give us the opportunity beyond the next few years to grow beyond our serviceable market. Now to the numbers. I think a few of you might have come for this part to hear what we think about the future. So I'm going to start this section by just giving you an overview of how we think about our top objectives from a financial perspective in Phase III of the Clarivate journey, as Jonathan referred to it as. The first is we spend a lot of time on this today. We are very committed to accelerating growth from the current levels to where the market is, and there's opportunity to go further. So we are going to progressively improve our growth rates starting with this year and the guidance we provided last week, and then I'm going to give you some numbers for next year and beyond. The second aspect is we're still going to deliver very high and durable margins through an investment cycle that's coming both this year and next year. We are going to make those investments to make sure that we can deliver the growth acceleration that we highlighted. The third is, it's really important for us that Clarivate becomes an attractive cash flow machine. We are very confident that in the next few years, we're going to generate more cash than we ever have. And then finally, we're going to be very disciplined and thoughtful about capital allocation. In the near term, we're going to deleverage. We're going to get the leverage level to where it needs to be. And then we're going to take a more balanced approach next year and beyond, which will give us the ability to get back into strategic bolt-on M&A to augment our competitive position. So those 4 things are what we're focused on. Slide 81 takes the half a dozen key KPIs from a financial perspective that map to those objectives and gives you a view of where we think we can get by 2025. But I also thought it would be helpful to put it in the context of where we were a few years ago when we started on this exchange. And then where we are today and then where we think we can be in just a few years. So I'll start with organic growth at the top. This business grew at 3%, a very durable rate during a global pandemic. But we acknowledge it didn't accelerate the growth. However, a number of the other financial metrics that we're going to walk through improved significantly. So growth has been at about 3% during this period. And as I just highlighted, we think we can improve it by about 300 basis points over the course of the next 3 years. From a top line perspective, we started with $1 billion -- last year, we grew the business to $2.7 billion, a 2.5-fold increase, and we believe we can move that another half turn to $3 billion with the organic growth that we're highlighting. That assumes the U.S. dollar and exchange rates remain relatively constant. The organic growth is the driver there. And then finally, with margins. The businesses that we acquired, as Jonathan said, we did a really good job integrating them. We've delivered $300 million of cost synergies. That took margins from 30% to 42%. We still think we can improve margins a bit over the course of the next few years, on average, about 50 bps, but over this period by the time we grow the top line, we think the profit will be up $1 billion over where we originally started at about $1.3 billion. From an earnings per share perspective, we started at just over $0.50. We delivered $0.85 last year. So we increased by more than $0.30. We believe we can double our original starting point and get to about $1 by 2025, and I'll take you through the trajectory on that in a moment. And then free cash flow is up more than double from where we originally started last year at about $300 million. We think we can increase it to about $700 billion by the time we move to 2025, and then it's also important to note our leverage was more than 5 turns when we originally came out. It's just over 4 turns at the end of last year. We're going to get it to under 4 turns this year, and we believe we'll have it to under 3 turns by 2025. So on Slide 82, let me take you through a bit of the trajectory more specifically between where we are today and where we think we can be in a few years. So in the upper left revenue, we indicated in our guidance last week, we think revenue is going to grow about 3.25% organically this year. We expect that it will be about 4.5% next year and about 6% are catching our SAM by 2025. And we've given a range here of about plus or minus 50 basis points. That will lead, assuming a relatively constant currency to about $3 billion of revenue at that point. From a profit perspective, we committed to about 50 bps of improvement this year. And we think, on average, it will be about 50 bps of improvement over the next 2 years. It's a little bit lower than what you would expect for a typical information services business, but that's because we believe it's important for us to reinvest into the products at a level that will help drive that top line growth. And given our high contribution margins, it's going to generate really attractive returns, which I'll highlight in a moment. In the lower left, we think we'll have about a 10% CAGR from what we expect to deliver this year to 2025. And then on the cash flow front, we've already guided to about $0.5 billion of cash flow this year. We expect cumulatively to generate about $1.8 billion as our conversion moves from about the mid-40s today to above 50% by 2025. A lot of color on this chart. So Page 83 is our attempt to give you a bit more information about the improvement trajectory that we're expecting over the next few years in our organic growth. So Jonathan, for the first time today laid out the subsegments within A&G and within Life Science and Healthcare, and within IP. What we've done here is giving you their proportional size within the business, so what's on the inside of the doughnut on the left is the overall size of that market. So A&G is about 48% of our business, 17% for Life Sciences and 35% for IP. And then we illustrate the proportions that these 3 parts of the business are within that segment. And then what we've done is use that same construct that he highlighted to say which of our products are not growing at market rates, which ones are really close and which ones are already there. And what I'll highlight first in A&G is this is the area that we expect to make the most progress in 2023. We got a little bit of a head start in the investments in Web of Science. We're seeing -- we expect progress early this year with a big renewal cycle early on. And then we expect that to continue to improve, reaching its market potential by 2025. Products like Leganto , continued investments in our flagship product, [ OMA ] will help to lift the workflow solutions category next year. So all in all, we would expect that category to grow at about 4% in 2025. Moving to Life Sciences. Commercialization is going to take a little bit longer. The investments that I highlighted this morning in content and in the platform and in the workflow capabilities, we'll take a bit of time to work themselves into the revenue but we expect by 2024 to start making progress into the upper single digits, approaching double-digit growth in full year '25. And then finally, on the IP side, there's going to be a similar time line there with Derwent. Derwent is going to take some time to build out those apps that I highlighted, get those launched in the market, build into the recurring revenue base next year. But we do expect to make progress in 2024. Some of the work that we're doing on tech-enabled services that I highlighted will help the Patent and Trademark maintenance business, and we expect that category to reach 6% growth by 2025. So now I'll pivot to how we think about the returns that are going to be generated by the incremental growth. So what you're really seeing is an inflection point about how we view investments in the business in Phase II moving into Phase III. Over the last few years, the majority of our capital went to acquire and integrate businesses. it generated great margin expansion. We went from 30% to 42%. And the returns on that were very attractive. We calculate that the payback on about $0.5 billion investment in onetime costs is about 2 years as we generated that $300 million of savings. But as we move forward, we're going to redeploy or pivot our capital towards these growth investments and investing in product innovation. We are estimating that we're going to spend about an incremental $100 million to $150 million over the next 36 months to do all of these things that I just highlighted. And we anticipate being able to deliver a payback of about 2.5 years. From a margin perspective, that means we'll be able to expand progressively. But once we get to 2025, we expect the margin profile beyond that when we're at that 6% growth level near the market to improve. And as -- when the time is right, we'll provide some more color on that. But over this period, we're going to make that investment. I'll also draw attention to the fact that this investment will be a mix of capital expenditures and operating expenses. So that's reflected -- both are reflected in the $100 million to $150 million here. This business is going to be a great cash flow engine moving forward. I wanted to give you the components of that. And just to remind you, the biggest piece driving the improvement from last year to this year is the onetime cost with the acquisitions being behind us. We'll get ProQuest acquisition integration wrapped up this year. That $40 million. This year will be an even smaller number next year, there'll just be an ambient level beyond that. From an interest and tax perspective, we expect a little bit of an increase in our cash interest this year due to the increase in base rates. However, as we delever, that floating rate debt will move our interest costs down over that period. And then I'll draw attention to the fact that our cash taxes are going to remain relatively constant over this period because of the attributes we have in our primary jurisdictions. In the lower left-hand corner, we're expecting a modest level of working capital investment to help grow the business, particularly on transactions. And then in the lower right-hand corner, CapEx, we do expect this year and our guide, we said we'll be at about 9%. We plan to keep it at about that level that with the growth that we're delivering, the margin should move down to about 8% over this period. And we think there's opportunity for that to fall further as we move beyond 2025. But again, when the time comes, we'll give more color on that. And then finally, I want to talk about capital allocation. We've been very clear for quite some time that this year, we're going to use all of our excess cash to pay down debt. We're going to get below that 4 turns. And I also highlighted today that we're going to start making some more meaningful investments in driving organic growth. So that's really where we're focused in 2023. Once we get to next year, though, it provides us with the opportunity to be a bit more balanced to continue to buy back stock. We can utilize the authorization that we have. We'll also be able to look for opportunities on the M&A front for accretive deals that can help enhance our competitive position. There may be some attractive buy-versus-build opportunities that present themselves for some of these new initiatives. So we'll have more optionality as we move into next year, but we wanted to make sure that you understand we're heavily focused on taking a disciplined approach to deploy all the cash that we're going to generate to generate the best returns for shareholders. And then finally, I just wanted to touch on the strength of the balance sheet improving over this period. The trajectory we're going to make continued progress on getting to below 3 turns of net leverage. Our coverage will improve modestly and stay above 4 turns. And then when you think about our debt stack, please don't forget, we have no maturities that are coming during this planning horizon. It's not until 2026 that the term loan and the secured bond come due. And then also with the deleveraging we do, we're going to end up with a very small portion of our debt servicing costs that will be variable. So that's going to help to insulate any risk from further rising rates that continue to look more likely as the overall macro comes into view. So that's our view on the balance sheet and what we plan to do with the business. I'd like to end by just sharing with all of you our final perspectives on why we think this is such an exceptional business. And I want to add some proof points to what Jonathan highlighted earlier. First, we are in excellent markets. They are not cyclical. They have great secular growth trends, and that's evidenced by the fact that the market we service today is growing at 6% and the broader market is even a double-digit market. The second thing I want to remind you of is the business, while not completely immune, is highly insulated from the overall economy, which is incredibly important given where we sit today. And we think the best proof point there is the fact that we outperformed in the last 2 downturns, the core parts of the businesses that we serve by about 8 percentage points. You did hear, as Jonathan promised today, us use the word mission-critical many times. These solutions are absolutely indispensable, and we are ubiquitous at the most important parts of our market. And that's evidenced in our retention rates or our renewal rates that are more than 90%. And then finally, we think we have a spectacular business model that's going to become a cash-generating machine over the course of the next few years. And that is enabled. It allows us to become a compounder because 80% of our business comes back to us every year in the form of recurring revenue. So with that, we're now going to move to Q&A. I'm going to ask Mark to come up. We're going to take questions in the room, and then we'll also try to take some from those of you that have joined us virtually.

So as we take questions in the room, please raise your hand. We have a couple of microphones. We'll come to you or call in the person. And please state your name and company appreciate it. So why don't we take the first question, Kathy, right over here. Tony, Toni Kaplan. And then.

Toni Kaplan from Morgan Stanley. I wanted to start out on the academic and government side. Regarding the new products and platforms, it sounds like your idea is that you have the data. It's more of a matter of just getting the data in front of the right customers. And so is it the investment in the platforms are helping ease of use? Or is it going to be also promoting cross-selling because customers can then see, okay, here. I don't have this. I really need it. And so there's this upselling capability? Or is it bundling in terms of pricing. So just wanted to understand a little bit more on how the platforms translate into that facilitation of better growth? And also maybe just where are competitors today, do they have platforms that are doing this as well? Or will this be sort of industry-leading type of solution.

Sure. All right. Maybe I'll kick it off and then Gordon ask you to add additional color on it. Well, first, you actually nailed it. I mean you absolutely nailed it. So it's really 3 different elements. As Jonathan said in his remarks, we began making investments on the UI and usability of the product about 18 months or so ago. And we're already seeing the benefit of that as retention rates are beginning to click up. So that's one key piece of it. The second key piece is adding additional content to move into areas of academic content to move into areas, particularly around arts and humanities. We particularly had not focused on those areas. We're now bringing that content into Web of Science. And the third element is a cross-sell, as you mentioned, as I think Jim explained in his presentation, we cover all the universities in some way, shape or form. So we don't have to go chase new logos. We have to take this down to segments. We had kind of left out. But Gordon, anything you want to add?

Those are the 3 big pieces. I think adding new content isn't optional. It's ongoing. So -- and you'll see us do that all time. Dissection example is a great example of that. There is a functionality question and the user interface is part of that. So other people are trying to do this, but we're not chasing the puck, we're skating to where we think the puck is going in this market. And that's a very different state of mind. But the 3 pieces are covered off by your summary into question. And content is king. And that's why we're so confident that with our improvement in UI, the additional functionality and integrations that Jonathan talked about, we're really well placed to go to where the puck is going because we're pushing it that way as opposed to chasing competition.

Great. I want to go to Ashish next over here. And then we'll go to Shlomo. So you can raise your hand, Ashish.

This is Ashish Sabadra from RBC Capital Markets. Just following up on Tony's question just focusing on the remaining 2 verticals, life sciences and IP. As I think about a lot of the growth, if I understand it correctly, is going to come from shifting these underperforming businesses to going at the market rate, and you have a number of products in the pipeline at different stages. So 2 questions there, like the success rates usually -- like how many of these products have to be successful in order to hit your target growth profile for 4.5 and 6. And a lot of effort is involved around selling these products. So maybe if you can talk about your sales staffing and your ability to execute on the sales front.

Okay. Great. I'll kick it off. And then once again, Gordon can add any color here. I'll go in reverse. So on the sales tap, and we went led by Steen, a tremendous turnover and focus on the sales go-to-market effort in the last 12 to 18 months, including putting in insight channels, which really allows us to scale up and touch different segments we weren't touching before. We had that in place now. So I feel rock solid in terms of our go-to-market efforts capability and capacity of those teams. On the 2 other segments, it's slightly different stories. So the key element, as both Gordon team and Jonathan has been mentioned within IP is Derwent and the path and intelligence collection. And the shift that happened over the last 10-plus years is that the user base has kind of expanded from hardcore users who will still today live and breathe with Derwent to more casual users, and we did not ship with them. So the investment there is very focused on expanding the usability of Derwent and the collection of Derwent tools around it, to just address that underserved market that we had before. Within life science and health care is a slightly different story. It's more around innovation into new particular areas, which we haven't particularly innovated in before. We do not need everyone to be successful. We're making a number of best in different product areas. We had a few of them to land well. And once those land well, that will lift us up the market rate, if we hit above what we expect, it will lift us even further. Gordon, you think.

Maybe 2 quick comments. One is on the IP side, we talked -- Jonathan talked about BLA, brand landscape analyzer. And that's a good example of a product, which is it's built, we're now evolving it. So the risk there is that the market adoption doesn't happen, but we have an adopter customer who's evangelizing for us. So again, the go-to-market structure is really solid there. So we feel good about that. And I think on the Life Science side, if you think about the new things we're building, we're not building them as new bees. We're using our existing talent from the workflow teams and technology teams that have really built those solutions in IP or AG. We're bringing that knowledge into that space. So that part of the risk is low. And I think the go-to-market piece is solid. The question is how ready is the market to adopt some of those things going forward. And that's why, as you said, we have more than 1 bet.

Shlomo Rosenbaum from Stifel. I have 2 questions. Number one, just on Derwent and IP. We've been hearing, I think, for like 4 years about antiquated technology over there. And I was just wondering, is it a significant lift to really improve that business? Is that where a lot of the change is supposed to happen in terms of making changes over there. And like what does it take to really make all those changes in terms of investments software? Is it a lot more software, you need a lot more engineers over there? Is it -- is this something you're starting from scratch? Is the user nor phrase the way that you needed to be. And then just pivoting a little bit, how much of the plan really requires the consulting part of the business to really prosper. And then it's a lot more of a transactional business. I understand that you can pull through potentially other subscription and stuff like that. But it really is a part of a business that seems that it's much more project related.

Sure. I'll ask the second question, Gordon, your area of expertise with IP to dive on Shlomo's first question. So on the consultant, '22 was a bad year of consulting for us. It was a bad year because as Jonathan said in his remarks, we lost capacity at the tail end of '21. We've now rebuilt that capacity. What we're expecting in the next 3 years is basically a performance what we have historically done before we lost that capacity kind of nothing more, nothing heroic as I would say. But Gordon, do you want to comment on the software?

Yes. So thinking specifically about Pant intelligence. And we have 3 products in that suite, and that's relevant because 3 areas to draw from in terms of how we create these new use cases. So let's just break it down into what have we got and what do we need to do? So data and content and curated data, we have the world's best curated IP patent data and trade block data for that matter, but that's not the question. So we feel that there's no need to be concerned about that at all. It's very positive. We then have to make some changes to the core product so that it is frankly easier to use. So think about a casual business user who wants a quick and dirty view of what IP is out there. So in many ways, think of this as simplifying the way that the user asked the questions, positions a search and gets the feedback. And it's as simple as things like pie charting and trending as opposed to very complex, large spreadsheets downloaded for somebody in data science to analyze. So we're looking at how we take the core Derwent product, and we make it easier to use and there are 4 specific use cases. These are our use cases. These are from the customers, from the markets. And in order to try and ease us into that, we also have some commercial levers that we're pulling now to help us on that journey to get ready for how we position those use cases. So solid data, we have the technologist. And so we don't need to bring any more people in and the numbers in our plan. We really got those built into the '23 and '24 projections. So I hope that gives you some idea of where we are.

Manav Patnaik with Barclays. First question is just on the Life Sciences segment, which is, can you just help me appreciate again the uniqueness of what you have in that segment? Because it feels like that's the one market that's -- it's large, but it's also extremely fragmented. You've got a lot of large competitors. It feels like there's maybe a need for consolidation almost in the market. So why do you guys feel like you can do that market growth rate or more? And then just from a higher financial question for you, Jonathan Collins, is the 3% to 4.5% to 6%, can you just help break how much of that improvement is on the transactional side? And how much is kind of your subscription assumptions there?

Okay. Great. So I'll kick it off and Jonathan, you can answer the second question. So on your first question, the Life Science health care market, as you saw today, it is just a fantastic market. We've got the tailwinds behind it, the growth, the proliferation of data. The way I would position one of that kind of competitive situation is you do have kind of one big 800-pound gorilla. You don't know who they are. They do a lot of things that we do not do that we'll never do around the services side, and we compete with them a little bit on the edge on some data products. We're kind of at the next tier down, and there are, call it, 3 to 4 half dozen providers kind of at our level, each of which brings some unique assets to the market. Again, the Cortellis product we talked about, that's one reason why we're winning so much within the R&D phase. We're winning within safety and regulatory, again, because we have some unique assets there that other people don't have. And the final thing is, as we pull in assets from other segments such as Web of Science, such as pulling the dericitation, we're bringing in material content that just no one else and provides. So we feel really well positioned as to where we are and what is today, as you say, a fragmented market. Jonathan?

Yes. And then on the revenue side, the way we think about it in the near term, last year transactional revenues decline, we expect them to grow this year. So it's got to be part of the contribution from 2022 to 2023. As we look out to 2025, we do think the overall mix of the business still around 80-20, but I would say we'll exit that period, starting to make some progress on a number of those that I highlighted during the prepared remarks, where we're taking a traditional transactional business, moving it into an ecosystem that gives us the opportunity to make it a recurring or a subscription type. So once we start to launch some of those products in the next year to do, I do expect that to help a little bit. But broadly, I think we're still going to be about the same comportment of 80% -- about 80% recurring and about 20% nonrecurring or transaction.

You stay with that topic, we have a question here online from George Tong of Goldman Sachs. So across segments, how much will pricing cross-sell new logos and kind of retention contribute to the growth acceleration, how much does it impact -- how much does it improve macro help?

Okay. Got it. So in general, we're not assuming a great macro environment. We're just not. That's in our near-term and longer-term view. When we look at the growth we've actually done a great job of beginning to capture price consistently across all of our segments. We target kind of a 3% to 4% unblended rate. We expect that to continue. Retention continues to tick up and that's driven by a few things. It's investments we've already made in our products, also investments we made on the inside sales channel about touching clients more often. So we expect retention to begin to continue to pick up every year and make improvements there. And then the other element really is share of wallet by introducing these new products and just expanding the existing relationships we have right now with the new innovative products that we're introducing.

Andrew Nicholas with William Blair. I wanted to dive in a little bit more maybe with you, Jonathan Collins, on the incremental investment over the next couple of years, $100 million to $150 million. Is there a way for us to think about how much of that falls into the catch-up bucket versus above-market growth targets? And is that a similar framework for how we should think about beyond '25?

Yes. Fair point. So when we think about the investment, the outlined somewhere in the $100 million to $150 million range over the next few years. A lot of it right now is concentrated on the catch-up areas. So the focus on Web of Science, a focus on Derwent, what we're doing with the real-world data platform. Those are targeted in that area. We will start this year and next year to make some of those investments on the things that we can help to propel us. We haven't provided the number, and we won't right now. But in principle, in the near term and actually over the 3-year period, it's going to be a bit more weighted to closing that growth rate gap in each of those key areas. But there will be a component of it that will move us into some of those spaces where we have the potential to exceed the 6%.

Stephanie Moore here with Jefferies. I appreciate all the color that you went through in terms of the product investments and certainly the phases that you have gone through over the last 3 or 4 years. As you kind of look at your portfolio and look to accelerate growth, are there any products or areas that might be divested over time that are simply just slower growth and it might make sense with another partner?

Sure. Thanks, Stephanie. We've looked at this hard. And obviously, as everyone knows, we divested mark monitor in the second half of last year. It was great to do that. We got rid of a noncore asset, generate some cash to allow us to accelerate debt pay down. We look very hard at our portfolio casting work we can trim. Currently, I don't see anything of that size. We do continue to look at areas, we'll trim and you may see some thoughts there as we progress it, but probably not at this point, anything of the magnitude of mark monitor.

Pete Christiansen, City. First off, lots of great color disclosures today. Appreciate the improving transparency. I had 2 questions. It seems -- at least my takeaway initially is closing the gap versus industry growth, a lot of that's wallet share play. It's upsell, cross-sell, it's value-add pricing support, it's users per logo, it's applications for a logo. How should we think about greenfield within that if there are any areas where you believe there is greenfield opportunity? That would be helpful. And then secondly, Jonathan Gear, you mentioned a couple of times, and I think we heard it from someone else as well. AI, a little bit at the data fusion layer, a little bit at the application layer. Where is the puck going AI for Clarivate? I know that's a challenging question. But how do you think is the best way to position the business for what could be a revolutionary change?

Got it. Okay. Maybe I'll take the second run and Jonathan, maybe you can talk about the Pete's first question, contest of the SAM versus the TAM, kind of the greenfield. So let's talk about ChatGPT. It's great great question. We get it all the time. And we have a great data science team. I was with them in Ann Arbor with Jonathan last week. And what's ChatGPT, what's the impact to Clarivate, what do we think of the eyes kind of light up. Our view right now is it's going to be primarily a benefit, not a threat. I'll talk about that first. The benefit we're seeing from AI in terms of being able to develop faster, particularly the more basic type of development that we do, either on the pure technology code right inside or actually on the content. As you can imagine, the editorial cure content that we create, if we can use advanced AI to accelerate the basics and then have our expertise trim around the edges and make it actually accurate and relevant. That's what's going to differentiate us. And so we feel good about that as an efficiency opportunity. On the threat side, it's interesting. And we've -- everyone see examples of kind of what's come out of that ChatGPT. And it's good, but it's not great. It's not perfect. And I think in the world of content that we live in, the role of information, having the true accurate source becomes even more important as it's going to be very easy for engines rate inaccurate sources going forward. So for us and companies like us that have that single instance of true I think our value becomes even that much more important.

Your first part, Pete, as it relates to what it looks -- I would say it this way, success for us in each of the markets is going to look a little different. So I'll just take the Web of Science improvement trajectory. We're going to have more universities that are not necessarily the top 400, that may not be a buyer of the product, but are likely buying some ProQuest content and/or workflow solutions that add access to Web of Science. It will also be a government agency that may purchase insights, the analytics package that sits on top of it. But that government agency is likely already buying some content and/or workflow tools for us. So I think within the AMG segment, it's definitely going to be a share of wallet, adding new applications. I think in IP, it looks slightly different. So as we build out the capabilities within Derwent, a very good chance the large corporations are there went from us. Maybe they wanted to pay a little bit less for it because they bought other tools to meet other use case needs. Now we get back in there and get other groups within that large company using these new 4 applications that Gordon highlighted, we have an upsell opportunity. We increased our share of wallet there. I think within Life Sciences and healthcare, it's clearly the consulting piece, likely already buying content from us, getting more share of wallet. And then also as we combine the data and interconnect it and offer these new solutions like the medical access hub or market access hub, that's a great example of how we increase our share of wallet with the customers. So I think a little bit different in each, but in principle, it's undoubtedly going to lead to selling more to existing customers and improving share wallet.

Seth Weber with Wells Fargo. There's been a lot of talk about cross-selling and wallet share and stuff like that. Is there anything that you guys are needing to do or that you're doing with the sales force and changing the incentives or how the sales force is going -- addressing their customers? Or is there anything that you could talk about just whether it's incentivizing the sales force to do more of that.

Sure. There's nothing dramatic, I'll ask Jonathan to add some color to what I'm about to say. So first, our sales force and our quota carrying force is aligned now by the 3 different segments. Now they are incented of selling those products into whatever segment possible to achieve their quota. We do have a very small global account management team that helps assist and kind of guide where there are opportunities, but they're focused. I think this is the big difference from where we were a year ago. Their focus where we know there is multisegment opportunity where those customers are and where those particular industries are, be it pharma, high-tech, manufacturing where we know there are opportunities. But any color you want to add on the actual incentives?

Yes. I just echo Jonathan's comments from before, I feel great about this because of the progress we made in 2022. So Jim and Tom and Armina all have their teams structured. The commission plans we'll be using in the new model are very similar to the loans we implemented in 2022. So not a big change. We've got teams that are selling to a combination of product specialists, renewal specialists and the account managers, and I feel really good about the traction we have moving into this year.

Questions? I have another question on online. Why do you think you've lost share in your categories? What are your competitors doing to grow faster? And can you give some examples?

Sure. I mean we'll come back probably the 3 at least the 2 core examples of Web of Science and Derwent. If you go back 10, 15 years, I mean, Web of Science didn't have a competitor 15 years ago, did not have one. And what happened is the market moved a little underneath this. It moved from being core hardcore users, we've got a lot of value from it to more incidental users of the product. And that's also true in Derwent, and I'm sure Gordon could talk at length about the Derwent, 8, 10 years ago, it was all the hardcore users but the roles expanding where you get part-time users and partial users, we did not move with that world. And so we, generally speaking, have not lost share with the core of our markets, the top 400 research universities, the most IP-intensive R&D companies in the world still using Derwent. What we've lost is on the edges, but a lot of that growth has come from the edges. And the investments we're making as what we just described a few minutes ago are examples of how we're going to make the product easier to use for those more incidental users. You can add, Gordon?

No. Nothing to add.

All right.

Okay. We have another online question then. Could you please give some color around the mechanics of cross-selling products in terms of enhancing the customer experience when bundling?

Color around cross-selling, we're bundling. It's -- again, it's going to come back to we do it where it makes sense. I think that's the key thing. We do it where it makes sense. So we'll go into a large pharma customer, and it's really twofold. One is bundling multiple products from different customer sets. So specifically products from IP, products from obviously, Life Science, healthcare and products from academia into an opportunity. But the second piece, which we're going to do more and more, which is frankly, more customer-friendly and more workflow-friendly is a betting content in the actual product for the workflow for the end user. That takes a little bit longer, take some product innovation that we've talked about, but that's going to be some of the acceleration that we're going to see.

Any more questions in the room? We have one over here.

Lauren [indiscernible]. You mentioned that you're improving retention. But can you give us some more color about why those customers are able to retain them more? And for the customers who are churning, where are they going?

So it's I'll give some comments as both on a if I missed anything. So first, on your first point about why are we improving it? It's a couple of pieces. One is we have already begun investing in some areas of our product. Web of Science is the best example. It's a significant portion of academia and government, and it was a clunky product. About 18 months ago, the teams began investing specifically in UI and interface, make the product easier to use. And so that just increased the usage rate of that product. You drive more value, you can prove that out. The second piece is a sales motion piece. You go back 18-plus months, there weren't consistent aside sales channels. Inside sales is a wonderful method in our industry, as you know, to touch the smaller-sized accounts that in a [indiscernible] model, they just don't get touched. And if you don't get touched, you can't remind them of the value. You can't find early issues if they're not using the product are inside channels now touching them far more often. And it's all about driving usage. If you can drive use of engagement, that drives the retention rates. Anything to add?

Just early to add on usage. We're rolling out across all of our products, not all done yet, but mostly done, where we've got real-time usage and stats on who's in and who's not. And that in combination with a dedicated team who wake up to make sure we do renew means that you have the conversation before usage falls to find out why. And that's often this market expansion where we're adapting the product to fit these new users, and that's where some of the churn has come from in the past. And those 2 things together will make a big difference.

We have time for one more question in the room, if or any. Some closing remarks?

Okay. Great. Well, listen, I'll just go ahead and wrap up here a couple of things I want to do. First, I want to thank some groups. First, I want to thank our 11,000-plus colleagues around the world. You saw some great examples of the expertise up on this stage today, and they represent who we have. We have experts in what we do, who are passionate about what they do. They've gone through a lot of change. A lot has changed in the last few years. We're now pointing in the right direction, and I just can't thank them enough. And second one is, I want to just acknowledge the specific group. We have a large nation of our Board of Directors in the room today. They are tremendous. They're very supportive. They are absolute shareholder advocates and focus on driving shareholder value, and I thank them for their engagement with this company. And finally, I just want to thank all of you. Really appreciate the time this morning. It's been a journey. It's been a journey with Clarivate. We feel great about the plan we have in place right now. We know what we need to do. You've heard from Jonathan about the detailed elements and in execution mode. And as we execute against the plans we've outlined this more as a we're going to see the organic growth pick up as we described, and this compounding cash machine is just going to go on fire, and it's going to drive significant shareholder value coming out of that. So thank you so much for your time today. Thanks for your engagement and look forward to engaging with you going forward. Thank you.