WEBVTT - Clear CEO Caryn Seidman-Becker Talks TSA Delays, Competition

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Let's soft travel.

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<v Speaker 3>The worst of the TSA chaos maybe easing, but wait

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<v Speaker 3>times remain uneven, especially at major hubs like Newark and JFK.

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<v Speaker 3>The question now is whether that surge and demand for

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<v Speaker 3>services like Clear can last for more. We're joined by

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<v Speaker 3>Karen Sidman Becker, chairman and CEO of Clear, and I say,

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<v Speaker 3>services like Clear, but is there anything else like Clear?

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<v Speaker 2>I don't think other than TSA.

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<v Speaker 1>Roger speaking, I don't think so. I think we're one

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<v Speaker 1>of a kind.

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<v Speaker 3>So you must have gotten a big boost from your

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<v Speaker 3>initial agreement with American Express. At least everybody in this

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<v Speaker 3>office started to use Clear when that came through, and

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<v Speaker 3>I know you've renewed that.

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<v Speaker 2>How much have you gained from.

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<v Speaker 3>The TSA issues that we've had during this government partial

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<v Speaker 3>government shutdown?

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<v Speaker 1>I think what you saw in this government shutdown is

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<v Speaker 1>that travel is hard and getting harder, and that travelers

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<v Speaker 1>want solutions, and so we introduced a lot of new

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<v Speaker 1>products right ahead of this. I would say coincidentally that

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<v Speaker 1>got a lot of awareness from this shutdown, whether it

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<v Speaker 1>be our relaunched mobile app and the home to gate capabilities,

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<v Speaker 1>whether it be our beloved e gates, which we're still

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<v Speaker 1>rolling out and there in forty airports today and are

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<v Speaker 1>totally magical, or whether it be our concierge and pre

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<v Speaker 1>check products. We have a significant percentage of the pre

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<v Speaker 1>check enrollment market. And I think what's important Travelers want predictable,

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<v Speaker 1>frictionless experiences.

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<v Speaker 4>This was anything, but so did you get a lot.

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<v Speaker 5>Of big boosts to subscriptions over this period.

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<v Speaker 1>Then I think people's love of Clear grew significantly during

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<v Speaker 1>this time period.

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<v Speaker 2>Really, you see the numbers. Don't you see the numbers?

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<v Speaker 2>I don't they bring them to your desk.

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<v Speaker 4>I see the numbers. I do see the numbers.

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<v Speaker 1>And I think we reported a very strong fourth quarter

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<v Speaker 1>before this happened, and I think the strength that we

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<v Speaker 1>saw and broadly speaking, the need to have a secure

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<v Speaker 1>identity platform both for travel, but also we're seeing growth,

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<v Speaker 1>significant growth, we called it escape velocity in the last

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<v Speaker 1>quarter in our enterprise business, so workforce security and keeping

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<v Speaker 1>North Koreans out of critical infrastructure, healthcare and fighting fraud,

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<v Speaker 1>waste and abuse in medicare and other areas. This is

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<v Speaker 1>a really massively important time to be a secure identity

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<v Speaker 1>platform and to be a trusted brand, and trust is

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<v Speaker 1>massively important, and you're knocking.

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<v Speaker 2>Down it seems like barriers left and right.

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<v Speaker 3>I've just heard that some people from other countries who

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<v Speaker 3>previously couldn't use Clear because they don't have a US

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<v Speaker 3>ID or passport, can now use CLEAR.

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<v Speaker 4>That is true.

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<v Speaker 1>So forty two visa waiver countries can now enroll in CLEAR.

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<v Speaker 1>So we're seeing a lot of Canadians, UK, South Koreans,

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<v Speaker 1>Japanese and this is all ahead of the World Cup

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<v Speaker 1>and they can do it all on their mobile phone

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<v Speaker 1>with their passport. And so this is a really transformational

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<v Speaker 1>time in travel. And I also think that this administration

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<v Speaker 1>has been really focused on having the US lead in

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<v Speaker 1>travel and innovation because today we don't Singapore, London, Tokyo.

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<v Speaker 4>They all have better travel experiences than we do in

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<v Speaker 4>the US.

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<v Speaker 1>And being that we are a leader in innovation, we

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<v Speaker 1>should lead in travel experiences and security.

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<v Speaker 2>What do you think.

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<v Speaker 3>About privatizing the TSA Because in my experience, and it's

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<v Speaker 3>obviously only anecdotal, Clear brings me straight through to the

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<v Speaker 3>X ray machine and then I'm stuck waiting forever in

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<v Speaker 3>a lot of instances, right, if we privatize the TSA,

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<v Speaker 3>does that part of the equation get even better.

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<v Speaker 1>So, certainly in the budget that was released last week,

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<v Speaker 1>the Trump administration talked about privatization. It is something that

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<v Speaker 1>we advocate very strongly for the power of public private

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<v Speaker 1>partnership is really important. These eGates we were able to

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<v Speaker 1>roll out or we are rolling out at.

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<v Speaker 4>No cost to taxpayers.

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<v Speaker 1>So we've got to drive innovation and we've got to

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<v Speaker 1>let the private sector do what they do well, which

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<v Speaker 1>is innovation and procurement and speed and customers experience, whereas

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<v Speaker 1>the government really is great at intelligence and analysis. And

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<v Speaker 1>so I think the two together and adding more capital

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<v Speaker 1>to your point, to the physical screening piece, to the

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<v Speaker 1>home to gate experience is really important. And I think

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<v Speaker 1>there's so much more that we can be doing there.

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<v Speaker 1>And I think privatization and public it's not just privatization,

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<v Speaker 1>because you see Kansas City and San Francisco places where

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<v Speaker 1>you do have stronger public private partnerships and they functioned

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<v Speaker 1>much better during the shutdown. You can't let you at

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<v Speaker 1>travelers be a political football. So I do think i'd

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<v Speaker 1>call it public private partnership.

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<v Speaker 5>What are conversations with airports like when you want to

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<v Speaker 5>get Clear added. What do they need to see? What

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<v Speaker 5>does it take to convince them? Is it money, is

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<v Speaker 5>it spending? What is it to get it rolled out

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<v Speaker 5>in more places?

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<v Speaker 1>So innovations about bringing people what they did not know

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<v Speaker 1>they wanted, and for a long time people didn't know

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<v Speaker 1>they wanted biometrics.

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<v Speaker 4>Today we cover about seventy.

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<v Speaker 1>Five percent of the US network, so we're trying really

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<v Speaker 1>hard to get those last airports on board. You know,

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<v Speaker 1>I think that they need to see the customer experience

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<v Speaker 1>in other markets. I think they need to see the

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<v Speaker 1>revenue share in other markets. Because Clear this year will

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<v Speaker 1>pay over one hundred and thirty million dollars to our

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<v Speaker 1>airport partners that they can use for infrastructure which is

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<v Speaker 1>badly needed or other investments that they want. And so

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<v Speaker 1>each airport is different, and we are working real hard

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<v Speaker 1>on each one because customers want it. Security is enhanced,

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<v Speaker 1>efficiency is enhanced. You just saw that it's a no

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<v Speaker 1>brainer at this point.

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<v Speaker 3>By the way, I went for recently a camera board.

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<v Speaker 3>It was like a blood test or something at a

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<v Speaker 3>hospital here in New York, and I was surprised to

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<v Speaker 3>hear them ask me if I had CLEAR and then

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<v Speaker 3>I was just whished straight through to the doctor's office

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<v Speaker 3>rather than you know, going through all the rigmarole at

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<v Speaker 3>the security checkpoint at the front desk. How much are

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<v Speaker 3>you expanding beyond airports? How much of your business is that?

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<v Speaker 1>We think healthcare is an enormous opportunity. You look at compliance, privacy, security,

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<v Speaker 1>and customer experience. They have their own challenges and interoperability.

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<v Speaker 1>So killing the clipboard and being able to enroll once

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<v Speaker 1>and use it everywhere for check in for your electronic

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<v Speaker 1>health record.

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<v Speaker 4>Those are your records.

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<v Speaker 1>You should be able to share them with anybody instantly,

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<v Speaker 1>just like you can wire money and then also payment

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<v Speaker 1>and so healthcare is a huge opportunity. We are partnered

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<v Speaker 1>at the hospital level, We're partnered at the EPIC and

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<v Speaker 1>the EHR level. We're partnered at the government level rural

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<v Speaker 1>health transformation.

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<v Speaker 4>It's a huge opportunity.

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<v Speaker 5>How are you thinking about pricing clear plus two hundred

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<v Speaker 5>and nine a year?

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<v Speaker 4>Can you move that up? Are people willing to pay it?

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<v Speaker 4>Are you?

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<v Speaker 5>How do you think about different tiers? How is pricing

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<v Speaker 5>existing in America when such a big conversation is happening

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<v Speaker 5>right now that the consumer is stretched.

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<v Speaker 1>So our average revenue per user is less than two

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<v Speaker 1>hundred and nine because there's lots of different ways that

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<v Speaker 1>people can enroll. And so the way we think about

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<v Speaker 1>driving oarpoo or pricing is really through new services. And

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<v Speaker 1>so we have taken pricing over the past few years

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<v Speaker 1>because the service has massively improved. I believe that pricing

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<v Speaker 1>is about bringing consumers and partner value, and as we've

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<v Speaker 1>continued to drive the value, you can continue to drive

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<v Speaker 1>the pricing. So things like concierge and other partnerships really

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<v Speaker 1>bring value to our customers and then drive our pricing

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<v Speaker 1>as well.

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<v Speaker 3>I have a viewer writing in and says, when can

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<v Speaker 3>we get clear of the Jet Blue JFK terminal? And

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<v Speaker 3>by the way, I wonder if naming and shaming works right,

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<v Speaker 3>because there's supposed to be a cutting.

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<v Speaker 2>Edge airline, right, and they've got this whole new terminal.

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<v Speaker 1>So we agree, we love terminal five and I remain

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<v Speaker 1>very hopeful. Indefatigable is one of our core values, persistent

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<v Speaker 1>and tireless, and so we love New York.

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<v Speaker 4>Jet lose a New York company, and I agree, all right.

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<v Speaker 3>Well, we love having you on. Thanks so much for

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<v Speaker 3>joining us. If you can come back. Karen Sidman Becker There.

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<v Speaker 3>She is the chairman and CEO of Clear