Clearwater Analytics Announces Second Quarter 2024 Financial Results
Clearwater Analytics (NYSE: CWAN) announced its Q2 2024 results with record revenue of $106.8M, up 19% YoY. The company achieved a net income of $0.3M, a significant improvement from the $11.9M loss in Q2 2023. Adjusted EBITDA rose 35% to $33.4M. Annualized Recurring Revenue (ARR) increased by 22% YoY to $427.2M. Operating cash flows surged by 108% to $43.9M. Key metrics include a gross revenue retention rate of 99% and a net revenue retention rate of 110%. The company completed the acquisition of an advanced analytics platform from Wilshire Advisors. Future guidance projects Q3 revenue between $113M to $114M, with full-year revenue expected to grow by 20%-21% to $442M-$444M. Adjusted EBITDA is forecasted at $36M for Q3 and $140M for the full year, maintaining a 32% margin. A conference call is scheduled for July 31, 2024, at 5:00 PM ET to discuss these results.
Clearwater Analytics (NYSE: CWAN) ha annunciato i risultati del secondo trimestre 2024 con un fatturato record di $106,8 milioni, in aumento del 19% rispetto all'anno precedente. L'azienda ha registrato un utile netto di $0,3 milioni, un miglioramento significativo rispetto alla perdita di $11,9 milioni nel Q2 2023. L'EBITDA rettificato è aumentato del 35% a $33,4 milioni. Il fatturato ricorrente annualizzato (ARR) è aumentato del 22% rispetto all'anno precedente, raggiungendo $427,2 milioni. I flussi di cassa operativi sono aumentati del 108% a $43,9 milioni. I principali indicatori includono un tasso di mantenimento del fatturato lordo del 99% e un tasso di mantenimento del fatturato netto del 110%. L'azienda ha completato l'acquisizione di una piattaforma di analisi avanzata da Wilshire Advisors. Le previsioni future indicano un fatturato per il Q3 compreso tra $113 milioni e $114 milioni, con un fatturato annuo previsto in crescita del 20%-21% a $442 milioni-$444 milioni. L'EBITDA rettificato è stimato a $36 milioni per il Q3 e $140 milioni per l'intero anno, mantenendo un margine del 32%. È prevista una conferenza telefonica per il 31 luglio 2024 alle 17:00 ET per discutere questi risultati.
Clearwater Analytics (NYSE: CWAN) anunció sus resultados del segundo trimestre de 2024 con un ingreso récord de $106.8 millones, un aumento del 19% interanual. La empresa logró un ingreso neto de $0.3 millones, una mejora significativa respecto a la pérdida de $11.9 millones del Q2 2023. El EBITDA ajustado aumentó un 35% hasta $33.4 millones. Los ingresos recurrentes anualizados (ARR) incrementaron un 22% interanual, alcanzando $427.2 millones. Los flujos de efectivo operativos se dispararon un 108% hasta $43.9 millones. Las métricas clave incluyen un tasa de retención de ingresos brutos del 99% y un tasa de retención de ingresos netos del 110%. La empresa completó la adquisición de una plataforma de análisis avanzada de Wilshire Advisors. Las proyecciones futuras estiman que los ingresos del Q3 estarán entre $113 millones y $114 millones, con un ingreso total anual esperado de crecer entre el 20%-21% a $442 millones-$444 millones. El EBITDA ajustado se prevé en $36 millones para el Q3 y $140 millones para todo el año, manteniendo un margen del 32%. Se programó una conferencia telefónica para el 31 de julio de 2024 a las 5:00 PM ET para discutir estos resultados.
클리어워터 애널리틱스 (NYSE: CWAN)는 2024년 2분기 결과를 발표하며 기록적인 수익 1억 6백8십만 달러를 달성했다고 밝혔습니다. 이는 작년 대비 19% 증가한 수치입니다. 이 회사는 순이익 30만 달러를 달성하며, 2023년 2분기의 1천1백90만 달러 손실에서 상당한 개선을 이루었습니다. 조정된 EBITDA는 35% 증가하여 3천3백40만 달러를 기록했습니다. 연간 반복 수익 (ARR)은 작년 대비 22% 증가하여 4억 2천7백20만 달러에 달합니다. 운영 현금 흐름은 108% 증가해 4천3백90만 달러로 급증했습니다. 주요 지표로는 99%의 총 수익 유지율과 110%의 순 수익 유지율이 포함됩니다. 회사는 윌셔 어드바이저스로부터 고급 분석 플랫폼을 인수했습니다. 향후 전망에 따르면, 3분기 수익은 1억 1천3백만 달러에서 1억 1천4백만 달러 사이로 예상되며, 연간 수익은 20%-21% 증가하여 4억 4천2백만 달러에서 4억 4천4백만 달러에 이를 것으로 보입니다. 조정된 EBITDA는 3분기에 3천6백만 달러, 연간으로 1억 4천만 달러가 예상되며, 32%의 마진을 유지할 것으로 보입니다. 이러한 결과를 논의하기 위한 전화 회의가 2024년 7월 31일 오후 5시(동부 표준시)로 예정되어 있습니다.
Clearwater Analytics (NYSE : CWAN) a annoncé ses résultats pour le deuxième trimestre 2024 avec un chiffre d'affaires record de 106,8 millions de dollars, en hausse de 19 % par rapport à l'année précédente. L'entreprise a enregistré un résultat net de 0,3 million de dollars, une amélioration significative par rapport à la perte de 11,9 millions de dollars au T2 2023. L'EBITDA ajusté a augmenté de 35 % pour atteindre 33,4 millions de dollars. Le revenu récurrent annuel (ARR) a augmenté de 22 % en glissement annuel pour atteindre 427,2 millions de dollars. Les flux de trésorerie d'exploitation ont bondi de 108 % pour atteindre 43,9 millions de dollars. Les principaux indicateurs comprennent un taux de fidélisation des revenus bruts de 99 % et un taux de fidélisation des revenus nets de 110 %. L'entreprise a finalisé l'acquisition d'une plateforme d'analyse avancée auprès de Wilshire Advisors. Les prévisions futures prévoient un chiffre d'affaires pour le T3 compris entre 113 millions et 114 millions de dollars, avec une croissance du chiffre d'affaires annuel prévue de 20 % à 21 %, atteignant entre 442 millions et 444 millions de dollars. L'EBITDA ajusté est estimé à 36 millions de dollars pour le T3 et à 140 millions de dollars pour l'année entière, maintenant une marge de 32 %. Une conférence téléphonique est prévue pour le 31 juillet 2024 à 17h00, heure de l'Est, pour discuter de ces résultats.
Clearwater Analytics (NYSE: CWAN) hat die Ergebnisse für das zweite Quartal 2024 bekannt gegeben, mit einem Rekordumsatz von 106,8 Millionen Dollar, was einem Anstieg von 19 % im Vergleich zum Vorjahr entspricht. Das Unternehmen erzielte einen Nettoertrag von 0,3 Millionen Dollar, eine erhebliche Verbesserung gegenüber dem Verlust von 11,9 Millionen Dollar im Q2 2023. Das bereinigte EBITDA stieg um 35 % auf 33,4 Millionen Dollar. Der jährlich wiederkehrende Umsatz (ARR) erhöhte sich um 22 % im Jahresvergleich auf 427,2 Millionen Dollar. Die operativen Cashflows stiegen um 108 % auf 43,9 Millionen Dollar. Die wichtigsten Kennzahlen umfassen eine Bruttoumsatzbindungsrate von 99 % und eine Nettoeinnahmebindungsrate von 110 %. Das Unternehmen hat die Akquisition einer fortschrittlichen Analyseplattform von Wilshire Advisors abgeschlossen. Die Zukunftsprognose sieht einen Umsatz im Q3 zwischen 113 Millionen und 114 Millionen Dollar vor, mit einem erwarteten Umsatzwachstum von 20 % bis 21 % auf 442 Millionen bis 444 Millionen Dollar für das Gesamtjahr. Das bereinigte EBITDA wird für Q3 auf 36 Millionen Dollar und für das gesamte Jahr auf 140 Millionen Dollar prognostiziert, bei einer Marge von 32 %. Eine Telefonkonferenz ist für den 31. Juli 2024 um 17:00 Uhr ET geplant, um diese Ergebnisse zu besprechen.
- Record revenue of $106.8M, up 19% YoY.
- Net income of $0.3M, compared to a $11.9M loss in Q2 2023.
- Adjusted EBITDA increased by 35% to $33.4M.
- Annualized Recurring Revenue (ARR) rose by 22% YoY to $427.2M.
- Operating cash flows increased by 108% to $43.9M.
- Gross revenue retention rate of 99%.
- Net revenue retention rate of 110%.
- Acquisition of advanced analytics platform from Wilshire Advisors.
- None.
Clearwater Analytics has delivered an impressive set of financial results for Q2 2024, demonstrating strong growth and improved profitability. The company's revenue increased by 18.8% year-over-year to
Particularly noteworthy is the significant improvement in profitability metrics. Adjusted EBITDA grew by 34.7% to
Cash flow generation was exceptionally strong, with operating cash flows of
The company's client metrics are also robust, with a
Overall, Clearwater Analytics' Q2 results demonstrate a company executing well on its growth strategy while improving profitability and cash generation. The combination of strong top-line growth, expanding margins and robust client retention metrics positions the company favorably for continued success in the investment management solutions market.
Clearwater Analytics' Q2 2024 results highlight the company's strong position in the SaaS-based investment management solutions market. The
The company's focus on expanding its product offerings is a key driver of its success. The adoption of Clearwater PRISM by clients like Erste Asset Management and M&G Investments for enhanced client portal and reporting capabilities demonstrates the platform's versatility and appeal to large, sophisticated asset managers. This multi-product strategy not only drives revenue growth but also deepens client relationships, as evidenced by the strong
Clearwater's expansion into new areas such as stable value funds with Franklin Templeton and alternative investments with AXA XL showcases the platform's adaptability to complex investment strategies. This versatility positions Clearwater well to capture market share across various segments of the investment management industry.
The company's investment in generative AI is particularly intriguing. While details are , the potential applications in improving data quality, customer responsiveness and driving revenue growth could be significant. This focus on innovation could help Clearwater maintain its competitive edge in a rapidly evolving fintech landscape.
Clearwater's single instance, multi-tenant architecture continues to be a key differentiator, enabling the company to achieve strong unit economics and benefit from network effects. This technological foundation, combined with the company's co-development efforts with clients, should allow for continued innovation and scalability.
Overall, Clearwater Analytics' technology strategy appears well-aligned with market demands, positioning the company for continued growth and market leadership in the investment management solutions space.
Clearwater Analytics' Q2 2024 results and recent business highlights reveal several important market trends in the investment management solutions industry. The company's strong performance, with
The adoption of Clearwater's platform by major asset managers like Erste Asset Management and M&G Investments indicates a growing trend towards outsourcing complex investment operations and reporting functions. This shift is likely driven by the increasing complexity of investment portfolios, regulatory requirements and the need for real-time, accurate data.
Clearwater's success in cross-selling and upselling, as evidenced by clients adopting multiple solutions like JUMP for OMS/PMS alongside accounting and reconciliation services, points to a market preference for integrated, comprehensive platforms. This trend towards consolidation of investment management tools could pose challenges for point solution providers.
The company's expansion into specialized areas like stable value funds and alternative investments aligns with broader market trends. The selection of Clearwater by Franklin Templeton for its stable value fund business and by AXA XL for alternative capital management suggests growing sophistication in these investment categories and increased demand for specialized technology solutions.
Clearwater's 2024 Insurance Investment Outsourcing Report, showing
The 2024 State of Alternatives study, indicating that
Overall, Clearwater Analytics' results and market activities reflect an industry trending towards comprehensive, specialized and technologically advanced investment management solutions, with particular growth in areas like insurance, alternatives and complex regulatory reporting.
Record Quarterly Revenue of
Net Income of
Gross Revenue Retention Rate of
Annualized Recurring Revenue of
Operating Cash Flows of
"We had a very strong quarter where ARR grew
Second Quarter 2024 Financial Results Summary
- Revenue: Total revenue for the second quarter of 2024 was
$106.8 million 18.8% , from$89.9 million - Gross Profit: Gross profit for the second quarter of 2024 increased to
$76.9 million 72.0% GAAP gross margin, compared with gross profit of$62.9 million 70.0% in the second quarter of 2023. Non-GAAP gross profit for the second quarter of 2024 was$82.7 million 77.5% non-GAAP gross margin and an increase of 170 basis points over the second quarter of 2023. - Net Income/(Loss): Net income for the second quarter of 2024 was
$0.3 million $11.9 million - Adjusted EBITDA: Adjusted EBITDA for the second quarter of 2024 was
$33.4 million 34.7% , from$24.8 million 31.3% , an increase of 370 basis points over the second quarter of 2023. - Cash Flows: Operating cash flows for the second quarter of 2024 were
$43.9 million $42.4 million 116.9% , from$19.6 million - Net Loss Per Share and Non-GAAP Net Income Per Share attributable to Clearwater Analytics Holdings, Inc.: Net loss per basic and diluted share was less than
$0.01 $0.12 $0.10 - Cash, cash equivalents, and investments were
$297.6 million $47.9 million
Second Quarter 2024 Key Metrics Summary
- Annualized Recurring Revenue: As of June 30, 2024, annualized recurring revenue ("ARR") reached
$427.2 million 22.2% from$349.5 million
ARR is calculated at the end of a period by dividing the recurring revenue in the last month of such period by the number of days in the month and multiplying by 365.
- Gross Revenue Retention Rate: As of June 30, 2024, the gross revenue retention rate was
99% , compared to98% as of June 30, 2023.
Gross revenue retention rate represents annual contract value ("ACV") at the beginning of the 12-month period ended on the reporting date less client attrition over the prior 12-month period, divided by ACV at the beginning of the 12-month period, expressed as a percentage. ACV is comprised of annualized recurring revenue plus contracted-not-billed revenue, which represents the estimated annual contracted revenue for new and existing client opportunities prior to revenue recognition.
- Net Revenue Retention Rate: As of June 30, 2024, the net revenue retention rate was
110% , compared to110% as of March 31, 2024 and to109% as of June 30, 2023.
Net revenue retention rate is the percentage of recurring revenue from clients on the platform for 12 months and includes changes from the addition, removal, or value of assets on our platform, contractual changes that have an impact to annualized recurring revenues and lost revenue from client attrition.
Recent Business Highlights
- Clearwater Analytics continued on its journey towards being a multi-product company and successfully drove cross-sell and upsell in the second quarter. Highlights include:
- Clearwater PRISM clients, including Erste Asset Management GmbH and M&G Investments, have adopted Clearwater PRISM for enhanced client portal and reporting. Clearwater announced that Erste Asset Management GmbH, one of the leading asset managers in Central and
Eastern Europe and managing€81.4 billion in assets, will leverage Clearwater PRISM to aggregate multi-asset client investment data, help increase asset flows and strengthen client service. M&G Investments, a leading international asset manager and part of M&G plc, selected Clearwater to automate investment management and regulatory reporting and support the complex needs of M&G's global insurance clients. With a white-labeled version of Clearwater's platform, M&G's insurance clients will have access to an M&G web portal and rely on Clearwater PRISM for monthly report generation, providing M&G's insurance clients with a complete view of their investments and the ability to meet complex multi-basis accounting requirements. - A growing roster of clients use both Clearwater's JUMP solution for OMS/PMS and Clearwater's accounting and reconciliation solution. Clearwater Analytics announced that Galilee Asset Management ("Galilee AM") selected Clearwater Analytics as its enterprise standard for investment management. Galilee AM will deploy Clearwater Analytics to support its rapid growth and consolidate its activities after acquiring several investment management companies.
- The Clearwater for Stable Value solution was selected by Franklin Templeton to help drive the growth of its stable value fund business. Clearwater for Stable Value will provide Franklin Templeton with scalable investment technology, daily portfolio insights, and stable value-specific capabilities to support its expansion into separate accounts and new mandates. Franklin Templeton's team will leverage this enhanced technology to effectively handle the nuanced aspects of managing stable value funds, including complex fund structures, securities, and specialized accounting treatment.
- Clearwater Analytics announced that AXA XL's alternative capital team selected Clearwater to provide strategic support for a portion of its investment portfolio. As one of the world's largest property and casualty re/insurers, AXA XL provides insurance and risk management products and services for mid-sized companies through to large multinationals, and reinsurance solutions to insurance companies globally. Clearwater was chosen for its proven reliability, accuracy, and comprehensive ability to meet their complex accounting book of record and regulatory requirements, including customized general ledger entries.
- Clearwater PRISM clients, including Erste Asset Management GmbH and M&G Investments, have adopted Clearwater PRISM for enhanced client portal and reporting. Clearwater announced that Erste Asset Management GmbH, one of the leading asset managers in Central and
- Clearwater Analytics hosted Clearwater Connect in
London in the second quarter, where attendees gained valuable insight from top leaders in the industry, connected with over 150+ of their peers from around the world, and participated in expert-led discussions on topics such as trends in alternative investing, navigating regulations, managing investments in turbulent times and more. Clearwater announced the winners of its Client Awards, highlighting teams and firms that have achieved growth and operational excellence in investment accounting with Clearwater's award-winning investment accounting platform. Company winners included Aegon AM, Antares, Aviva, Resolution Re, and RiverStone International. - On the heels of our successful Clearwater Connect users' conference, the Company plans to host another Clearwater Connect in
Boise on September 17-18, 2024, where current and prospective users will have the opportunity to significantly enhance their knowledge of the world's most comprehensive investment management, accounting, and reporting solutions. - Clearwater Analytics published its 2024 Insurance Investment Outsourcing Report ("2024 IIOR"), the eleventh annual 'Yellow Pages' of insurance-focused asset managers and a go-to resource for insurance firms outsourcing investment management. The 2024 IIOR includes 70 asset managers and 12 investment consultants, the latter which are new for this year. This report is highly regarded in the industry and leveraged by numerous insurers to identify asset managers and consultants who focus on their space. The report shows the outsourcing trend continues to grow with
$3.6 trillion $900 million - Clearwater Analytics announced the release of its 2024 State of Alternatives study. The report, encompassing over 230 executive participants from sectors including insurance, wealth and asset management, corporate and government entities, pensions and endowments with
$10 trillion 55% of institutional investors plan to boost their alternative investments — that will shape the alternatives landscape over the short-, medium- and long- term. Per the study, respondents were unanimous about needing better resources and technology to efficiently manage alternative investments and mitigate the impact of regulatory and operational challenges. - Clearwater Analytics won the RegTech Insight Europe Awards 2024 for Best ESG Regulatory Solution. This recognition highlights Clearwater's commitment to simplifying ESG data collection, data analysis, risk management, disclosure and reporting for its growing base of global clients.
Third Quarter and Full Year 2024 Guidance
Third Quarter 2024 | Full Year 2024 | ||
Revenue | |||
Year-over-Year Growth % | ~ | ~ | |
Adjusted EBITDA | |||
Adjusted EBITDA Margin % | ~ | ~ | |
Total Equity-based compensation expense and related payroll taxes | |||
Depreciation and Amortization | |||
Non-GAAP effective tax rate | 25 % | ||
Diluted non-GAAP share count | ~258 million |
Certain components of the guidance given above are provided on a non-GAAP basis only without providing a reconciliation to guidance provided on a GAAP basis. Information is presented in this manner because the preparation of such a reconciliation could not be accomplished without "unreasonable efforts." The Company does not have access to certain information that would be necessary to provide such a reconciliation, including non-recurring items that are not indicative of the Company's ongoing operations. The Company does not believe that this information is likely to be significant to an assessment of the Company's ongoing operations.
Conference Call Details
Clearwater Analytics will hold a conference call and webcast on July 31, 2024, at 5:00 p.m. Eastern time to discuss second quarter 2024 financial results, provide a general business update, and respond to analyst questions.
A live webcast of the call will also be available on the Company's investor relations website. Please visit investors.clearwateranalytics.com at least fifteen minutes prior to the start of the event to register, download and install any necessary audio software.
If you are unable to participate live, a replay of the webcast will be available following the conference call on the Company's investor relations website, along with the earnings press release, and related financial tables.
About Clearwater Analytics
Clearwater Analytics (NYSE: CWAN), a global, industry-leading SaaS solution, automates the entire investment lifecycle. With a single instance, multi-tenant architecture, Clearwater offers award-winning investment portfolio planning, performance reporting, data aggregation, reconciliation, accounting, compliance, risk, and order management. Each day, leading insurers, asset managers, corporations, and governments use Clearwater's trusted data to drive efficient, scalable investing on more than
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Use of non-GAAP Information
This press release contains certain non-GAAP measures, including non-GAAP gross profit, non-GAAP gross margin, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP effective tax rate, diluted non-GAAP share count and free cash flow.
The non-GAAP measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. However, the Company believes that this non-GAAP information is useful as an additional means for investors to evaluate its operating performance, when reviewed in conjunction with its GAAP financial statements. These measures should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP, and because these amounts are not determined in accordance with GAAP, they should not be used exclusively in evaluating the Company's business and operations. In addition, undue reliance should not be placed upon non-GAAP or operating information because this information is neither standardized across companies nor subjected to the same control activities and audit procedures that produce the Company's GAAP financial results.
The Company's non-GAAP statement of operations measures, including non-GAAP gross profit, non-GAAP gross margin, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP effective tax rate, diluted non-GAAP share count and free cash flow, are adjusted to exclude the impact of certain costs, expenses, gains and losses and other specified items that management believes are not indicative of its ongoing operations. These adjusted measures exclude the impact of share-based compensation and eliminate potential differences in results of operations between periods caused by factors such as financing and capital structures, taxation positions or regimes, restructuring, transaction expenses, impairment and other charges.
Please refer to the reconciliations of these measures below to what the Company believes are the most directly comparable measures evaluated in accordance with GAAP.
Use of Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's beliefs and assumptions and on information currently available to management. Forward-looking statements include information concerning the Company's possible or assumed future results of operations, business strategies, technology developments, financing and investment plans, dividend policy, competitive position, industry, economic and regulatory environment, potential growth opportunities and the effects of competition. Forward-looking statements include statements that are not historical facts and can be identified by terms such as "anticipate," "believe," "could," "estimate," "expect," "intend," "aim," "may," "plan," "potential," "predict," "project," "seek," "should," "will," "would" or similar expressions and the negatives of those terms, but are not the exclusive means of identifying such statements.
Forward-looking statements involve known and unknown risks, uncertainties, and other factors, many of which are beyond Clearwater Analytics' control, that may cause the Company's actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks and uncertainties may cause actual results to differ materially from Clearwater Analytics' current expectations and include, but are not limited to, the Company's ability to keep pace with rapid technological change and market developments, including artificial intelligence, competitors in its industry, the possibility that market volatility, a downturn in economic conditions or other factors may cause negative trends or fluctuations in the value of the assets on the Company's platform, the Company's ability to manage growth, the Company's ability to attract and retain skilled employees, the possibility that the Company's solutions fail to perform properly, disruptions and failures in the Company's and third parties' computer equipment, cloud-based services, electronic delivery systems, networks and telecommunications systems and infrastructure, the failure to protect the Company, its customers' and/or its vendors' confidential information and/or intellectual property, claims of infringement of others' intellectual property, factors related to the Company's ownership structure and status as a "controlled company" as well as other risks and uncertainties detailed in Clearwater Analytics' periodic public filings with the
Given these uncertainties, you should not place undue reliance on forward-looking statements. Also, forward-looking statements represent management's beliefs and assumptions only as of the date of this press release and should not be relied upon as representing Clearwater Analytics' expectations or beliefs as of any date subsequent to the time they are made. Clearwater Analytics does not undertake to and specifically declines any obligation to update any forward-looking statements that may be made from time to time by or on behalf of Clearwater Analytics.
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Clearwater Analytics Holdings, Inc. | |||
Consolidated Balance Sheets | |||
(In thousands, except share amounts and per share amounts, unaudited) | |||
June 30 | December 31 | ||
2024 | 2023 | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 190,095 | $ 221,765 | |
Short-term investments | 67,819 | 74,457 | |
Accounts receivable, net | 97,220 | 92,091 | |
Prepaid expenses and other current assets | 27,577 | 27,683 | |
Total current assets | 382,711 | 415,996 | |
Property and equipment, net | 15,158 | 15,349 | |
Operating lease right-of-use assets, net | 28,084 | 22,554 | |
Deferred contract costs, non-current | 5,845 | 6,439 | |
Intangible assets, net | 34,607 | 26,132 | |
Goodwill | 72,245 | 45,338 | |
Long-term investments | 39,718 | 21,495 | |
Other non-current assets | 6,779 | 5,440 | |
Total assets | $ 585,147 | $ 558,743 | |
Liabilities and Stockholders' Equity | |||
Current liabilities: | |||
Accounts payable | $ 2,962 | $ 3,062 | |
Accrued expenses and other current liabilities | 49,844 | 49,535 | |
Notes payable, current portion | 2,750 | 2,750 | |
Operating lease liability, current portion | 7,696 | 6,551 | |
Tax receivable agreement liability | 16,749 | 18,894 | |
Total current liabilities | 80,001 | 80,792 | |
Notes payable, less current maturities and unamortized debt issuance costs | 45,183 | 45,828 | |
Operating lease liability, less current portion | 21,306 | 16,948 | |
Tax receivable agreement, less current portion | 6,500 | — | |
Other long-term liabilities | 3,486 | 5,518 | |
Total liabilities | 156,476 | 149,086 | |
Stockholders' Equity | |||
Class A common stock, par value | 160 | 128 | |
Class B common stock, par value | — | — | |
Class C common stock, par value | 27 | 33 | |
Class D common stock, par value | 58 | 83 | |
Additional paid-in-capital | 549,580 | 532,507 | |
Accumulated other comprehensive income | 832 | 2,909 | |
Accumulated deficit | (170,050) | (181,331) | |
Total stockholders' equity attributable to Clearwater Analytics Holdings, Inc. | 380,607 | 354,329 | |
Non-controlling interests | 48,064 | 55,328 | |
Total stockholders' equity | 428,671 | 409,657 | |
Total liabilities and stockholders' equity | $ 585,147 | $ 558,743 | |
Clearwater Analytics Holdings, Inc. | ||||||||||||||
Consolidated Statements of Operations | ||||||||||||||
(In thousands, except share amounts and per share amounts, unaudited) | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||
Revenue | $ 106,791 | $ 89,879 | $ 209,510 | $ 174,485 | ||||||||||
Cost of revenue(1) | 29,890 | 26,954 | 58,069 | 51,779 | ||||||||||
Gross profit | 76,901 | 62,925 | 151,441 | 122,706 | ||||||||||
Operating expenses: | ||||||||||||||
Research and development(1) | 35,360 | 29,848 | 73,036 | 57,948 | ||||||||||
Sales and marketing(1) | 15,169 | 14,331 | 31,480 | 29,029 | ||||||||||
General and administrative(1) | 22,528 | 25,871 | 43,248 | 49,177 | ||||||||||
Total operating expenses | 73,057 | 70,050 | 147,764 | 136,154 | ||||||||||
Income (loss) from operations | 3,844 | (7,125) | 3,677 | (13,448) | ||||||||||
Interest income, net | (1,841) | (1,333) | (3,901) | (2,689) | ||||||||||
Tax receivable agreement expense | 5,915 | 6,573 | 6,201 | 6,678 | ||||||||||
Other income, net | (585) | (315) | (1,115) | (234) | ||||||||||
Income (loss) before income taxes | 355 | (12,050) | 2,492 | (17,203) | ||||||||||
Provision for (benefit from) income taxes | 79 | (174) | (19) | 90 | ||||||||||
Net income (loss) | 276 | (11,876) | 2,511 | (17,293) | ||||||||||
Less: Net income (loss) attributable to non-controlling | 706 | (955) | 1,044 | (1,988) | ||||||||||
Net income (loss) attributable to Clearwater | $ (430) | $ (10,921) | $ 1,467 | $ (15,305) | ||||||||||
Net income (loss) per share attributable to Class A and | ||||||||||||||
Basic | $ (0.00) | $ (0.06) | $ 0.01 | $ (0.08) | ||||||||||
Diluted | $ (0.00) | $ (0.06) | $ 0.01 | $ (0.08) | ||||||||||
Weighted average shares of Class A and Class D | ||||||||||||||
Basic | 218,349,567 | 198,046,275 | 215,804,515 | 195,865,881 | ||||||||||
Diluted | 218,349,567 | 198,046,275 | 254,208,965 | 195,865,881 | ||||||||||
(1) Amounts include equity-based compensation as follows: | ||||||||||||||
Cost of revenue | $ 3,273 | $ 3,248 | $ 6,419 | $ 5,491 | ||||||||||
Operating expenses: | ||||||||||||||
Research and development | 9,182 | 5,971 | 18,093 | 10,626 | ||||||||||
Sales and marketing | 2,692 | 3,246 | 6,513 | 7,211 | ||||||||||
General and administrative | 9,711 | 16,105 | 18,058 | 28,442 | ||||||||||
Total equity-based compensation expense | $ 24,858 | $ 28,570 | $ 49,083 | $ 51,770 | ||||||||||
Clearwater Analytics Holdings, Inc. | |||||||
Consolidated Statements of Cash Flows | |||||||
(In thousands, unaudited) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
OPERATING ACTIVITIES | |||||||
Net income (loss) | $ 276 | $ (11,876) | $ 2,511 | $ (17,293) | |||
Adjustments to reconcile net income (loss) to net cash provided by | |||||||
Depreciation and amortization | 2,941 | 2,412 | 5,491 | 4,860 | |||
Noncash operating lease cost | 2,312 | 1,917 | 4,545 | 3,769 | |||
Equity-based compensation | 24,858 | 28,570 | 49,083 | 51,770 | |||
Amortization of deferred contract acquisition costs | 1,196 | 1,150 | 2,413 | 2,351 | |||
Amortization of debt issuance costs, included in interest expense | 70 | 69 | 140 | 139 | |||
Deferred tax benefit | (970) | (174) | (1,992) | (210) | |||
Accretion of discount on investments | (602) | (380) | (1,177) | (396) | |||
Realized (gain) loss on investments | 24 | (18) | 24 | (89) | |||
Changes in operating assets and liabilities: | |||||||
Accounts receivable, net | (42) | (3,759) | (4,718) | (9,898) | |||
Prepaid expenses and other assets | 3,105 | 1,046 | (1,093) | (540) | |||
Deferred contract acquisition costs | (1,024) | (701) | (1,771) | (1,287) | |||
Accounts payable | 271 | 395 | 335 | 100 | |||
Accrued expenses and other liabilities | 5,256 | (4,410) | (4,183) | (11,204) | |||
Tax receivable agreement liability | 6,199 | 6,895 | 4,355 | 7,000 | |||
Net cash provided by operating activities | 43,870 | 21,136 | 53,963 | 29,072 | |||
INVESTING ACTIVITIES | |||||||
Purchases of property and equipment | (1,454) | (1,576) | (2,947) | (3,293) | |||
Purchase of held to maturity investments | (3,009) | — | (3,009) | — | |||
Purchases of available-for-sale investments | (35,493) | (57,523) | (67,390) | (91,684) | |||
Proceeds from sale of available-for-sale investments | — | 3,960 | — | 5,950 | |||
Proceeds from maturities of investments | 38,307 | 2,000 | 59,842 | 3,242 | |||
Acquisition of business, net of cash acquired | (40,121) | — | (40,121) | — | |||
Payment of initial direct costs for operating leases | (104) | — | (104) | — | |||
Net cash used in investing activities | (41,874) | (53,139) | (53,729) | (85,785) | |||
FINANCING ACTIVITIES | |||||||
Proceeds from exercise of options | 5 | 486 | 109 | 3,179 | |||
Taxes paid related to net share settlement of equity awards | (4,307) | (1,172) | (33,081) | (8,447) | |||
Repayments of borrowings | — | (687) | (688) | (1,374) | |||
Payment of business acquisition holdback liability | — | — | (780) | — | |||
Proceeds from employee stock purchase plan | 2,795 | 2,595 | 2,795 | 2,595 | |||
Tax distributions | — | — | (8) | — | |||
Net cash used in financing activities | (1,507) | 1,222 | (31,653) | (4,047) | |||
Effect of exchange rate changes on cash and cash equivalents | (38) | 152 | (251) | 252 | |||
Change in cash and cash equivalents during the period | 451 | (30,629) | (31,670) | (60,508) | |||
Cash and cash equivalents, beginning of period | 189,644 | 220,845 | 221,765 | 250,724 | |||
Cash and cash equivalents, end of period | $ 190,095 | $ 190,216 | $ 190,095 | $ 190,216 | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW | |||||||
Cash paid for interest | $ 851 | $ 870 | $ 1,762 | $ 2,220 | |||
Cash paid for income taxes | $ 144 | $ 759 | $ 590 | $ 1,068 | |||
NON-CASH INVESTING AND FINANCING ACTIVITIES | |||||||
Purchase of property and equipment included in accounts payable | $ 55 | $ 1 | $ 55 | $ 1 | |||
Tax distributions payable to Continuing Equity Owners included in | $ 3,209 | $ 3,994 | $ 3,209 | $ 3,994 | |||
Clearwater Analytics Holdings, Inc. | |||||||
Reconciliation of Net Loss to Adjusted EBITDA | |||||||
(In thousands, unaudited) | |||||||
Three Months Ended June 30, | |||||||
2024 | 2023 | ||||||
(in thousands, except percentages) | |||||||
Net income (loss) | $ 276 | 0 % | $ (11,876) | (13 %) | |||
Adjustments: | |||||||
Interest income, net | (1,841) | (2 %) | (1,333) | (1 %) | |||
Depreciation and amortization | 2,941 | 3 % | 2,412 | 3 % | |||
Equity-based compensation expense and related | 25,151 | 24 % | 28,685 | 32 % | |||
Tax receivable agreement expense | 5,915 | 6 % | 6,573 | 7 % | |||
Transaction expenses | 875 | 1 % | 257 | 0 % | |||
Other expenses(1) | 131 | 0 % | 108 | 0 % | |||
Adjusted EBITDA | 33,448 | 31 % | 24,826 | 28 % | |||
Revenue | $ 106,791 | 100 % | $ 89,879 | 100 % | |||
Six Months Ended June 30, | |||||||
2024 | 2023 | ||||||
(in thousands, except percentages) | |||||||
Net income (loss) | $ 2,511 | 1 % | $ (17,293) | (10 %) | |||
Adjustments: | |||||||
Interest income, net | (3,901) | (2 %) | (2,689) | (2 %) | |||
Depreciation and amortization | 5,491 | 3 % | 4,860 | 3 % | |||
Equity-based compensation expense and related | 53,632 | 26 % | 53,192 | 30 % | |||
Tax receivable agreement expense | 6,201 | 3 % | 6,678 | 4 % | |||
Transaction expenses | 1,678 | 1 % | 1,550 | 1 % | |||
Other expenses(1) | 38 | 0 % | 1,069 | 1 % | |||
Adjusted EBITDA | 65,650 | 31 % | 47,367 | 27 % | |||
Revenue | $ 209,510 | 100 % | $ 174,485 | 100 % | |||
(1) Other expenses include gain on investments, management fees to our investors, income taxes, and foreign exchange gains and losses. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(in thousands) | |||||||
Amortization of prepaid management fees and | 637 | 597 | 1,172 | 1,213 | |||
Provision for (benefit from) income tax expense | 79 | (174) | (19) | 90 | |||
Other income, net | (585) | (315) | (1,115) | (234) | |||
Total other expenses | $ 131 | $ 108 | $ 38 | $ 1,069 | |||
Clearwater Analytics Holdings, Inc. | |||||||
Reconciliation of Free Cash Flow | |||||||
(In thousands, unaudited) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net cash provided by operating activities | $ 43,870 | $ 21,136 | $ 53,963 | $ 29,072 | |||
Less: Purchases of property and equipment | 1,454 | 1,576 | 2,947 | 3,293 | |||
Free Cash Flow | $ 42,416 | $ 19,560 | $ 51,016 | $ 25,779 | |||
Clearwater Analytics Holdings, Inc. | |||||||
Reconciliation of Non-GAAP Information | |||||||
(In thousands, except share amounts and per share amounts, unaudited) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Revenue | $ 106,791 | $ 89,879 | $ 209,510 | $ 174,485 | |||
Gross profit | $ 76,901 | $ 62,925 | $ 151,441 | $ 122,706 | |||
Adjustments: | |||||||
Equity-based compensation expense and related | 3,318 | 3,260 | 6,840 | 5,735 | |||
Depreciation and amortization | 2,494 | 1,930 | 4,596 | 3,903 | |||
Gross profit, non-GAAP | $ 82,713 | $ 68,115 | $ 162,877 | $ 132,344 | |||
As a percentage of revenue, non-GAAP | 77 % | 76 % | 78 % | 76 % | |||
Cost of Revenue | $ 29,890 | $ 26,954 | $ 58,069 | $ 51,779 | |||
Adjustments: | |||||||
Equity-based compensation expense and related | 3,318 | 3,260 | 6,840 | 5,735 | |||
Depreciation and amortization | 2,494 | 1,930 | 4,596 | 3,903 | |||
Cost of revenue, non-GAAP | $ 24,078 | $ 21,764 | $ 46,633 | $ 42,141 | |||
As a percentage of revenue, non-GAAP | 23 % | 24 % | 22 % | 24 % | |||
Research and development | $ 35,360 | $ 29,848 | $ 73,036 | $ 57,948 | |||
Adjustments: | |||||||
Equity-based compensation expense and related | 9,306 | 6,028 | 21,180 | 11,147 | |||
Depreciation and amortization | 164 | 253 | 365 | 531 | |||
Research and development, non-GAAP | $ 25,890 | $ 23,567 | $ 51,491 | $ 46,270 | |||
As a percentage of revenue, non-GAAP | 24 % | 26 % | 25 % | 27 % | |||
Sales and marketing | $ 15,169 | $ 14,331 | $ 31,480 | $ 29,029 | |||
Adjustments: | |||||||
Equity-based compensation expense and related | 2,772 | 3,262 | 6,941 | 7,587 | |||
Depreciation and amortization | 155 | 145 | 290 | 298 | |||
Sales and marketing, non-GAAP | $ 12,242 | $ 10,924 | $ 24,249 | $ 21,144 | |||
As a percentage of revenue, non-GAAP | 11 % | 12 % | 12 % | 12 % | |||
General and administrative | $ 22,528 | $ 25,871 | $ 43,248 | $ 49,177 | |||
Adjustments: | |||||||
Equity-based compensation expense and related | 9,755 | 16,135 | 18,671 | 28,723 | |||
Depreciation and amortization | 128 | 84 | 240 | 128 | |||
Amortization of prepaid management fees and | 637 | 597 | 1,172 | 1,213 | |||
Transaction expenses | 875 | 257 | 1,678 | 1,550 | |||
General and administrative, non-GAAP | $ 11,133 | $ 8,798 | $ 21,487 | $ 17,563 | |||
As a percentage of revenue, non-GAAP | 10 % | 10 % | 10 % | 10 % | |||
Loss from operations | $ 3,844 | $ (7,125) | $ 3,677 | $ (13,448) | |||
Adjustments: | |||||||
Equity-based compensation expense and related | 25,151 | 28,685 | 53,632 | 53,192 | |||
Depreciation and amortization | 2,941 | 2,412 | 5,491 | 4,860 | |||
Amortization of prepaid management fees and | 637 | 597 | 1,172 | 1,213 | |||
Transaction expenses | 875 | 257 | 1,678 | 1,550 | |||
Income from operations, non-GAAP | $ 33,448 | $ 24,826 | $ 65,650 | $ 47,367 | |||
As a percentage of revenue, non-GAAP | 31 % | 28 % | 31 % | 27 % | |||
Net income (loss) | $ 276 | $ (11,876) | $ 2,511 | $ (17,293) | |||
Adjustments: | |||||||
Equity-based compensation expense and related | 25,151 | 28,685 | 53,632 | 53,192 | |||
Depreciation and amortization | 2,941 | 2,412 | 5,491 | 4,860 | |||
Tax receivable agreement expense | 5,915 | 6,573 | 6,201 | 6,678 | |||
Amortization of prepaid management fees and | 637 | 597 | 1,172 | 1,213 | |||
Transaction expenses | 875 | 257 | 1,678 | 1,550 | |||
Tax impacts of adjustments to net income (loss)(1) | (8,968) | (6,619) | (17,667) | (12,570) | |||
Net income, non-GAAP | $ 26,827 | $ 20,029 | $ 53,018 | $ 37,630 | |||
As a percentage of revenue, non-GAAP | 25 % | 22 % | 25 % | 22 % | |||
Net income per share - basic, non-GAAP | $ 0.12 | $ 0.10 | $ 0.25 | $ 0.19 | |||
Net income per share - diluted, non-GAAP | $ 0.10 | $ 0.08 | $ 0.21 | $ 0.15 | |||
Weighted-average common shares outstanding - basic | 218,349,567 | 198,046,275 | 215,804,515 | 195,865,881 | |||
Weighted-average common shares outstanding - | 256,090,273 | 252,249,228 | 254,208,965 | 256,412,731 | |||
(1) The non-GAAP effective tax rate was |
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SOURCE Clearwater Analytics Holdings, Inc.
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