Clearwater Analytics Announces Third Quarter 2021 Financial Results

Rhea-AI Summary

Clearwater Analytics Holdings, Inc. (NYSE: CWAN) reported its third quarter 2021 financial results, marking its first quarter as a publicly-traded company. Revenue rose by 20.9% to $64.5 million, while gross profit increased to $46.7 million. However, the company experienced a net loss of $11.4 million compared to net income of $11.5 million the previous year. Adjusted EBITDA was $17.1 million, and annual recurring revenue reached $257 million. The company expects fourth-quarter revenue between $66 million and $67 million, indicating full-year growth of 22-23%.

Positive

• Revenue growth of 20.9% year-over-year to $64.5 million.
• Annualized recurring revenue increased by 20% to $257 million.
• Gross revenue retention rate maintained at 98% for eleven consecutive quarters.
• Strong client acquisition across North America and internationally.

Negative

• Net loss of $11.4 million compared to net income of $11.5 million in Q3 2020.
• Income from operations decreased from $16.5 million in Q3 2020 to $7.3 million in Q3 2021.
• Decline in gross margin from 76.9% in Q3 2020 to 72.4% in Q3 2021.

BOISE, Idaho, Nov. 3, 2021 /PRNewswire/ -- Clearwater Analytics Holdings, Inc. (NYSE: CWAN) ("Clearwater Analytics" or the "Company"), an industry-leading SaaS solution for automated investment data aggregation, reconciliation, accounting, and reporting, announced today its financial results for the quarter ended September 30, 2021.

"We are very pleased that Clearwater Analytics' consistent, reliable, and durable growth over the last several years has continued with our financial results for the third quarter of 2021 – our first quarter as a publicly-traded company," said Sandeep Sahai, Chief Executive Officer, Clearwater Analytics. "We radically simplify investment accounting, reporting, and analytics for our clients, who face challenges including low yields, increasing complexity and globalization of invested assets, rising demand for risk management, and increasing regulatory complexity.  Our high quality 100% SaaS business and financial model, combined with ongoing investments in R&D, enables our platform to be a disruptor in a market with legacy technology incumbents."

Third Quarter 2021 Financial Results Summary

• Revenue: Total revenue for the third quarter of 2021 reached $64.5 million, an increase of 20.9%, from $53.4 million in the third quarter of 2020.
   
• Gross Profit: Gross profit for the third quarter of 2021 was $46.7 million compared with $41.0 million in the third quarter of 2020. Gross margin was 72.4%, versus 76.9% in the third quarter of 2020. Gross margin decreased primarily due to increased equity-based compensation expense and investment to support the onboarding of new clients. Non-GAAP gross profit for the third quarter of 2021 was $48.1 million, and non-GAAP gross margin was 74.5%.
   
• Income from Operations: Income from operations for the third quarter of 2021 was $7.3 million compared with $16.5 million in the third quarter of 2020. Income from operations in the third quarter of 2021 included $7.7 million of equity-based compensation, representing a $6.0 million increase from the third quarter of 2020. 
   
• Net Income/(Loss): Net loss for the third quarter of 2021 was $11.4 million compared with net income of $11.5 million in the third quarter of 2020. Net loss in the third quarter of 2021 included a $10.3 million loss on debt extinguishment. Non-GAAP net income for the third quarter of 2021 was $8.7 million compared with non-GAAP net income of $14.0 million in the third quarter of 2020.
   
• Net Income/(Loss) Per Share attributable to Clearwater Analytics Holdings, Inc.: Net loss per basic and diluted share was $0.05 in the third quarter of 2021.
   
• Adjusted EBITDA: Adjusted EBITDA for the third quarter of 2021 was $17.1 million, compared with $19.0 million in the third quarter of 2020. Adjusted EBITDA margin for the third quarter of 2021 was 26.5%.
   
• Cash: Cash and cash equivalents were $245.1 million as of September 30, 2021.

Third Quarter 2021 Key Metrics Summary

• Annualized Recurring Revenue: As of September 30, 2021, annualized recurring revenue ("ARR") reached $257.0 million, an increase of 20% from $214.9 million at September 30, 2020.
   
  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 September 30, 2021, gross revenue retention rate was 98%. The Company has reported a gross revenue retention rate of 98% for eleven consecutive quarters.
   
  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 September 30, 2021, net revenue retention rate was 111%, which represents a 220 basis point improvement over 109% at September 30, 2020.
   
  Net revenue retention rate is the percentage of recurring revenue retained 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

• International expansion momentum with key wins including a fast-growing insurance firm in Asia, a European insurer and reinsurer, and a UK-based property and casualty insurer.
   
• North America client wins across core targeted markets featuring several large asset management firms, a number of large insurers and reinsurers, corporations spanning multiple industries including pharmaceuticals, energy, high-tech, and consumer goods, a large West Coast-based city and county government, and a Midwest-based community foundation.
   
• A partnership with OneUnited Bank, the largest Black-owned bank in the U.S., to launch technology-based solutions that will enable Clearwater Analytics' corporate clients to invest money more easily into minority communities via minority depository institutions and direct deposits.
   
• Clearwater Analytics' annual North American user conference, Clearwater Connect, held last week with our clients and prospects. Sessions covered trending topics important to Clearwater Analytics' clients, including ESG investing, insurance client survey findings, LIBOR, and Clearwater Analytics' platform-specific updates.
   
• The Company's IPO transaction that priced on September 23, 2021, commemorated with Clearwater Analytics' executive team ringing The Opening Bell® at the New York Stock Exchange (NYSE) on September 24.

Fourth Quarter and Full-Year 2021 Guidance

• Total revenue is expected to be in the range of $66.0 million to $67.0 million for the fourth quarter of 2021, which implies full-year 2021 revenue of $248.3 million to $249.3 million or full-year revenue growth of 22% to 23%.
   
• Adjusted EBITDA margin is expected to be approximately 26% for the fourth quarter of 2021, which implies full-year 2021 adjusted EBITDA margin of approximately 28%.

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, consistent with Securities and Exchange Commission (the "SEC") rules, 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, given that it is not an indicator of business performance.

Conference Call Details 

Clearwater Analytics will hold a conference call and webcast on November 3, 2021, at 5:00 p.m. Eastern time to discuss financial results for the third quarter of 2021, 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 is a global industry-leading SaaS solution for automated investment data aggregation, reconciliation, accounting, compliance, risk, performance, and reporting. Each day, the Clearwater Analytics solution reports on more than $5.6 trillion in assets for clients that include leading insurers, asset managers, corporations, pension plans, governments, and nonprofit organizations – helping them make the most of their investment portfolio data with a world-class product and client-centric servicing. Investment professionals around the globe trust Clearwater Analytics to deliver timely, validated investment data and analytics.

Use of non-GAAP Information 

This press release contains certain non-GAAP measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP income from operations, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, and non-GAAP diluted earnings per share.

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, non-GAAP income from operations, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, and non-GAAP net income per diluted share, 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 financing and capital structures, taxation positions or regimes, restructuring, impairment and other charges.

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 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," "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 competitors in its industry, 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 SEC, including but not limited to those discussed under "Risk Factors" in the Company's Registration Statement on Form S-1, declared effective on September 23, 2021 and in periodic reports filed by Clearwater Analytics with the SEC and its reports to shareholders. These filings are available at www.sec.gov and on Clearwater Analytics' website. 

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.

 

Clearwater Analytics Holdings, Inc. Consolidated Balance Sheets (In thousands, except per share amounts)
		September 30				December 31
		2021				2020
		(unaudited)
Assets
Current assets:
Cash and cash equivalents		$	245,094			$	61,088
Accounts receivable, net			48,999				32,882
Prepaid expenses and other current assets			11,110				7,550
Total current assets			305,203				101,520
Property and equipment, net			9,989				8,849
Deferred contract costs, non-current			4,773				4,580
Debt issuance costs - line of credit			971				420
Other non-current assets			5,672				190
Total assets		$	326,608			$	115,559
Liabilities and Stockholders' Equity/ Members' Deficit
Current liabilities:
Accounts payable		$	1,472			$	1,340
Accrued expenses and other current liabilities			28,044				33,789
Notes payable, current portion			2,750				3,077
Total current liabilities			32,266				38,206
Notes payable, less current maturities and unamortized debt issuance costs			51,823				421,827
Other long-term liabilities			132				134
Total liabilities			84,221				460,167
Stockholders' Equity/ Members' Deficit
Members' deficit			—				(245,806)
Class A common stock, par value $0.001 per share; 1,500,000,000 shares authorized, 47,366,089 shares issued and outstanding			47				—
Class B common stock, par value $0.001 per share; 500,000,000 shares authorized, 11,151,110 shares issued and outstanding			11				—
Class C common stock, par value $0.001 per share; 500,000,000 shares authorized, 47,377,587 shares issued and outstanding			47				—
Class D common stock, par value $0.001 per share; 500,000,000 shares authorized, 130,083,755 shares issued and outstanding			130				—
Additional paid-in-capital			373,314				(98,860)
Accumulated other comprehensive income (loss)			(40)				58
Accumulated Deficit			(191,234)				—
Total stockholders' equity attributable to Clearwater Analytics Holdings, Inc.			182,275				(344,608)
Noncontrolling interests			60,112				—
Total stockholders' equity/ members' deficit			242,387				(344,608)
Total liabilities and Stockholders' Equity/ Members' Deficit		$	326,608			$	115,559

 

Clearwater Analytics Holdings, Inc. Consolidated Statements of Operations (In thousands, except per share amounts)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2021				2020				2021				2020
Revenue		$	64,489			$	53,355			$	182,259			$	148,464
Cost of revenue(2)			17,785				12,325				47,683				39,216
Gross profit			46,704				41,030				134,576				109,248
Operating expenses:
Research and development(2)			18,415				14,760				50,991				38,829
Sales and marketing(2)			10,126				4,661				26,151				13,261
General and administrative(2)			10,900				5,104				29,627				16,078
Total operating expenses			39,441				24,525				106,769				68,168
Income from operations			7,263				16,505				27,807				41,080
Interest expense, net			8,302				4,810				25,261				15,424
Loss on debt extinguishment			10,303				—				10,303				—
Other (income) expense, net			(130)				97				(65)				213
Income (loss) before provision for income taxes			(11,212)				11,598				(7,692)				25,443
Provision for income taxes			216				99				536				309
Net income (loss)			(11,428)				11,499				(8,228)				25,134
Less: Net income (loss) attributable to noncontrolling interests			(3,114)				—				86				—
Net loss attributable to Clearwater Analytics Holdings, Inc.		$	(8,314)			$	—			$	(8,314)			$	—
Net loss per share attributable to Class A and Class D common stockholders stock(1):
Basic and diluted		$	(0.05)			NMF				$	(0.05)			NMF
Weighted average shares of Class A and Class D common stock outstanding:
Basic			177,449,844			NMF					177,449,844			NMF
Diluted			235,978,541								235,978,541
NMF - not meaningful
(1) Basic and diluted net income (loss) per share of Class A and Class D common stock is applicable only for the period from September 24, 2021 to September 30, 2021, which is the period following our initial public offering ("IPO") and related transactions.
(2) Amounts include equity-based compensation as follows:
Cost of revenue		$	899			$	173			$	2,171			$	723
Operating expenses:
Research and development			2,226				487				5,912				1,866
Sales and marketing			1,655				212				3,782				944
General and administrative			2,903				842				7,374				3,169
Total equity-based compensation expense		$	7,683			$	1,714			$	19,239			$	6,702

 

Clearwater Analytics Holdings, Inc. Consolidated Statements of Cash Flows (In thousands)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2021				2020				2021				2020
OPERATING ACTIVITIES
Net income (loss)		$	(11,428)			$	11,499			$	(8,228)			$	25,134
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation			792				556				2,204				1,603
Equity-based compensation			7,683				1,715				19,239				6,702
Amortization of deferred contract acquisition costs			893				568				2,404				1,566
Amortization of debt issuance costs, included in interest expense			500				597				1,474				1,944
Debt extinguishment costs			10,303				—				10,303				—
Changes in operating assets and liabilities:
Accounts receivable, net			(3,924)				(1,867)				(16,117)				(4,669)
Prepaid expenses and other assets			2,287				(87)				(8,717)				(156)
Accounts payable			544				178				194				(396)
Accrued expenses and other liabilities			4,679				2,296				432				(174)
Deferred commissions			(1,677)				(1,236)				(2,922)				(1,901)
Accrued sales tax liability			(870)				—				(6,249)				—
Deferred revenue			(180)				(373)				(783)				(371)
Accrued interest on debt			(2,338)				(176)				(2,293)				(3,246)
Other long-term liabilities			—				3				-				(1)
Net cash provided by (used in) operating activities			7,264				13,673				(9,059)				26,035
INVESTING ACTIVITIES
Purchases of property and equipment			(1,268)				(759)				(3,499)				(3,145)
Net cash used in investing activities			(1,268)				(759)				(3,499)				(3,145)
FINANCING ACTIVITIES
Proceeds from issuance of common unit options			—				—				1,560				—
Proceeds from exercise of options			8				424				259				424
Minimum tax withholding paid on behalf of employees for net unit settlement			(1,598)				—				(2,185)				—
Repurchase of common units			—				(567)				(626)				(567)
Repayments of borrowings			(432,692)				(20,262)				(434,231)				(20,787)
Payments of costs associated with early repayment of debt			(2,029)				—				(2,029)				—
Proceeds from borrowings, net of debt issuance costs			53,600				—				53,600				—
Proceeds from initial public offering, net of underwriting discounts and commissions			582,188				—				582,188				—
Payment of costs associated with offering			(1,450)				—				(1,850)				—
Net cash provided by financing activities			198,027				(20,405)				196,686				(20,930)
Effect of exchange rate changes on cash and cash equivalents			11				87				(122)				(71)
Net increase in cash and cash equivalents during the period			204,034				(7,404)				184,006				1,889
Cash and cash equivalents, beginning of period			41,060				29,547				61,088				20,254
Cash and cash equivalents, end of period		$	245,094			$	22,143			$	245,094			$	22,143
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest		$	10,078			$	4,390			$	25,847			$	16,780
Cash paid for income taxes		$	104			$	119			$	67			$	241
NON-CASH INVESTING AND FINANCING ACTIVITES
Purchase of property and equipment included in accounts payable and accrued expense		$	325			$	—			$	325			$	—
Direct costs incurred with the offering included in accounts payable and accrued expense		$	3,251			$	—			$	3,251			$	—

 

Clearwater Analytics Holdings, Inc. Reconciliation of Net Income to Adjusted EBITDA (In thousands)
		Three Months Ended September 30,
		2021								2020
Net income		$	(11,428)				(18)	%		$	11,499				22	%
Adjustments:
Interest expense, net			8,302				13	%			4,810				9	%
Loss on debt extinguishment			10,303				16	%			—				—
Depreciation and amortization			792				1	%			556				1	%
Equity-based compensation			7,683				12	%			1,714				3	%
Other expenses(1)			1,430				2	%			425				1	%
Adjusted EBITDA			17,082				26	%			19,004				36	%
Revenue		$	64,489				100	%		$	53,355				100	%
		Nine Months Ended September 30,
		2021								2020
Net income		$	(8,228)				(5)	%		$	25,134				17	%
Adjustments:
Interest expense, net			25,261				14	%			15,424				10	%
Loss on debt extinguishment			10,303				6	%			—				—
Depreciation and amortization			2,204				1	%			1,603				1	%
Equity-based compensation			19,239				11	%			6,702				5	%
Other expenses(1)			3,825				2	%			1,439				1	%
Adjusted EBITDA			52,604				29	%			50,302				34	%
Revenue		$	182,259				100	%		$	148,464				100	%
(1) Other expenses includes management fees to our investors, income taxes related to foreign subsidiaries, foreign exchange gains and losses and other expenses that are not reflective of our core operating performance including the costs to set up our Up-C structure and Tax Receivable Agreement.
		Three Months Ended September 30,								Nine Months Ended September 30,
		2021				2020				2021				2020
Up-C structure expenses		$	726			$	—			$	1,652			$	—
Management fees and reimbursed expenses			618				229				1,702				917
Miscellaneous			86				196				471				522
Total other expenses		$	1,430			$	425			$	3,825			$	1,439

 

Clearwater Analytics Holdings, Inc. Reconciliation of Free Cash Flow (In thousands)
	Three Months Ended September 30,								Nine Months Ended September 30,
	2021				2020				2021				2020
Net cash provided by (used in) operating activities	$	7,264			$	13,673			$	(9,059)			$	26,035
Less: Purchases of property and equipment		1,268				759				3,499				3,145
Free Cash Flow	$	5,996			$	12,914			$	(12,558)			$	22,890

 

Clearwater Analytics Holdings, Inc. Reconciliation of Non-GAAP Information (In thousands, except per share amounts)
	Three Months Ended September 30,								Nine Months Ended September 30,
	2021				2020				2021				2020
Revenue	$	64,489			$	53,355			$	182,259			$	148,464
Gross profit	$	46,704			$	41,030			$	134,576			$	109,248
Adjustments:
Equity-based compensation		899				173				2,171				723
Depreciation and amortization		457				259				1,228				772
Gross profit, non-GAAP	$	48,060			$	41,462			$	137,975			$	110,743
As a percentage of revenue, non-GAAP		75	%			78	%			76	%			75	%
Cost of Revenue	$	17,785			$	12,325			$	47,683			$	39,216
Adjustments:
Equity-based compensation		899				173				2,171				723
Depreciation and amortization		457				259				1,228				772
Cost of revenue, non-GAAP	$	16,429			$	11,893			$	44,284			$	37,721
As a percentage of revenue, non-GAAP		25	%			22	%			24	%			25	%
Research and development	$	18,415			$	14,760			$	50,991			$	38,829
Adjustments:
Equity-based compensation		2,226				487				5,912				1,866
Depreciation and amortization		221				207				643				571
Research and development, non-GAAP	$	15,968			$	14,066			$	44,436			$	36,392
As a percentage of revenue, non-GAAP		25	%			26	%			24	%			25	%
Sales and marketing	$	10,126			$	4,661			$	26,151			$	13,261
Adjustments:
Equity-based compensation		1,655				212				3,782				944
Depreciation and amortization		63				47				183				133
Sales and marketing, non-GAAP	$	8,408			$	4,402			$	22,186			$	12,184
As a percentage of revenue, non-GAAP		13	%			8	%			12	%			8	%
General and administrative	$	10,900			$	5,104			$	29,627			$	16,078
Adjustments:
Equity-based compensation		2,903				842				7,374				3,169
Depreciation and amortization		51				43				150				127
Management fees and reimbursed expenses		618				229				1,702				917
Up-C structure expenses		726				—				1,652				—
General and administrative, non-GAAP	$	6,602			$	3,990			$	18,749			$	11,865
As a percentage of revenue, non-GAAP		10	%			7	%			10	%			8	%
Income from operations	$	7,263			$	16,505			$	27,807			$	41,080
Adjustments:
Equity-based compensation		7,683				1,714				19,239				6,702
Depreciation and amortization		792				556				2,204				1,603
Management fees and reimbursed expenses		618				229				1,702				917
Up-C structure expenses		726				-				1,652				-
Income from operations, non-GAAP	$	17,082			$	19,004			$	52,604			$	50,302
As a percentage of revenue, non-GAAP		26	%			36	%			29	%			34	%
Net income (loss)	$	(11,428)			$	11,499			$	(8,228)			$	25,134
Adjustments:
Equity-based compensation		7,683				1,714				19,239				6,702
Depreciation and amortization		792				556				2,204				1,603
Management fees and reimbursed expenses		618				229				1,702				917
Up-C structure expenses		726				—				1,652				—
Loss on extinguishment of debt		10,303				—				10,303				—
Net income, non-GAAP	$	8,694			$	13,998			$	26,872			$	34,356
As a percentage of revenue, non-GAAP		13	%			26	%			15	%			23	%
Net income (loss) per basic share(1) - basic and diluted	$	(0.05)			NMF				$	(0.05)			NMF
Weighted-average common shares outstanding - basic		177,449,844			NMF					177,449,844			NMF
Weighted-average common shares outstanding - diluted		235,978,541			NMF					235,978,541			NMF
NMF - not meaningful
(1) Basic and diluted net income (loss) per share of Class A and Class D common stock is applicable only for the period from September 24, 2021 to September 30, 2021, which is the period following the initial public offering ("IPO") and related transactions.

 

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SOURCE Clearwater Analytics

FAQ

What were Clearwater Analytics' revenue results for the third quarter of 2021?

Clearwater Analytics reported third quarter 2021 revenue of $64.5 million, an increase of 20.9% from $53.4 million in the same quarter of 2020.

What was the net income for Clearwater Analytics in the third quarter of 2021?

Clearwater Analytics recorded a net loss of $11.4 million for the third quarter of 2021, compared to a net income of $11.5 million in Q3 2020.

What guidance did Clearwater Analytics provide for the fourth quarter of 2021?

Clearwater Analytics expects fourth quarter 2021 revenue to be between $66 million and $67 million, projecting full-year revenue growth of 22% to 23%.

How much annualized recurring revenue did Clearwater Analytics achieve by the end of Q3 2021?

By the end of Q3 2021, Clearwater Analytics achieved annualized recurring revenue of $257 million, up 20% from $214.9 million at the end of Q3 2020.

What was the adjusted EBITDA for Clearwater Analytics in Q3 2021?

Clearwater Analytics reported adjusted EBITDA of $17.1 million for the third quarter of 2021.