CWAN Clearwater Analytics Holdings Inc

Record Quarterly Revenue of $126.5 Million, Up 28% Year-Over-Year

Annualized Recurring Revenue of $474.9 Million, Up 25% Year-Over-Year

Net Revenue Retention Rate of 116%

Net Income of $420.3 Million

Adjusted EBITDA of $41.7 Million, Up 39% Year-Over-Year

Clearwater Analytics Holdings, Inc. (NYSE: CWAN) (“Clearwater Analytics” or the “Company”), a leading worldwide provider of SaaS-based investment management, accounting, reporting, and analytics solutions, today announced its financial results for the quarter ended December 31, 2024.

 

Fourth Quarter 2024

 

Full Year 2024

Revenue

$126.5 million

 

$451.8 million

Year-over-Year Revenue Growth %

27.7%

 

22.7%

Annualized Recurring Revenue (ARR)1

 

 

$474.9 million

Year-over-Year ARR Growth %

 

 

25.3%

Net Income

$420.3 million

 

$427.6 million

Net Income Margin %

332.3%

 

94.6%

Adjusted EBITDA

$41.7 million

 

$145.7 million

Adjusted EBITDA Margin %

33.0%

 

32.2%

1ARR is a point in time metric, therefore fourth quarter 2024 and full year 2024 results are the same.

“Q4 2024 has been nothing short of extraordinary for Clearwater Analytics, as we achieved record revenue of $126.5 million and a record net revenue retention rate of 116%. Non-GAAP gross margin grew 170 bps for the year and adjusted EBITDA grew 350 bps for the year. All these metrics are entirely consistent with our plans and the expectations we set during our Investor Day – our execution has allowed us to meet and exceed those goals meaningfully earlier than forecast. These results reflect the effectiveness of our strategies and the relentless dedication of our team, who consistently exceed our clients’ evolving expectations. We continue to invest aggressively in R&D, including Generative AI, to stay ahead of the market and deliver impactful solutions that our clients value. We continue to see significant growth opportunities in both new logo and back-to-base sales in North America and the international markets, particularly in Europe and Asia, where our expertise and technology position us for expansion. We’re confident that our scalable platform will adeptly meet the rising demand from asset owners and managers in these regions,” said Sandeep Sahai, CEO at Clearwater Analytics. “Our announced acquisition of Enfusion is a game changer. This pivotal milestone will broaden our horizons for growth and allow us to extend additional products to our current clients, while enabling us to offer a comprehensive front-to-back platform that will cover the entire investment lifecycle. We’re scaling with a clear vision, excited about our journey, and committed to delivering exceptional value to our clients, employees, and shareholders.”

Fourth Quarter 2024 Financial Results Summary

• Revenue: Total revenue for the fourth quarter of 2024 was $126.5 million, an increase of 27.7%, from $99.0 million in the fourth quarter of 2023.

• Gross Profit: Gross profit for the fourth quarter of 2024 increased to $92.9 million, which equates to a 73.5% GAAP gross margin, compared with gross profit of $70.7 million and GAAP gross margin of 71.4% in the fourth quarter of 2023. Non-GAAP gross profit for the fourth quarter of 2024 was $99.7 million, which equates to a 78.8% non-GAAP gross margin and an increase of 190 basis points over the fourth quarter of 2023.

• Net Income/(Loss): Net income for the fourth quarter of 2024 was $420.3 million, compared with net loss of $3.4 million in the fourth quarter of 2023. Due to the release of our Deferred Tax Asset Valuation Allowance in the fourth quarter of 2024, we recorded deferred tax assets on our balance sheet, which resulted in a one-time income tax benefit in our income statement of $472 million.

• Adjusted EBITDA: Adjusted EBITDA for the fourth quarter of 2024 was $41.7 million, an increase of 39.0%, from $30.0 million in the fourth quarter of 2023. Adjusted EBITDA margin for the fourth quarter of 2024 was 33.0%, an increase of 270 basis points over the fourth quarter of 2023.

• Cash Flows: Operating cash flows for the fourth quarter of 2024 were negative $28.9 million. Cash flows in the fourth quarter of 2024 were impacted by the one-time settlement payments relating to the termination of the Company's Tax Receivable Agreement and associated fees of $79 million in the fourth quarter of 2024.

• Earnings Per Share and Non-GAAP Net Income Per Share attributable to Clearwater Analytics Holdings, Inc.: Earnings per basic share was $1.85, and earnings per diluted share was $1.63 in the fourth quarter of 2024. Non-GAAP net income per basic share was $0.15, and non-GAAP net income per diluted share was $0.13 in the fourth quarter of 2024.

• Cash, cash equivalents, and investments were $285.8 million as of December 31, 2024. Total debt, net of debt issuance cost, was $45.9 million as of December 31, 2024.

Fourth Quarter 2024 Key Metrics Summary

• Annualized Recurring Revenue: As of December 31, 2024, annualized recurring revenue (“ARR”) reached $474.9 million, an increase of 25.3% from $379.1 million as of December 31, 2023. 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 December 31, 2024, the gross revenue retention rate was 98%, compared to 98% as of December 31, 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 December 31, 2024, the net revenue retention rate was 116%, compared to 114% as of September 30, 2024 and to 107% as of December 31, 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.

• Clients: As of December 31, 2024, the Company had 1,462 clients, including 100 clients that contributed at least $1.0 million in ARR, an increase of 16.3% from 86 clients that contributed at least $1.0 million in ARR as of December 31, 2023.

• Assets Under Management (AUM): As of December 31, 2024, the platform processes and reports on $8.8 trillion assets daily, compared to $7.3 trillion assets daily as of December 31, 2023.

Recent Business Highlights

• On January 13, 2025, Clearwater Analytics announced its intent to acquire Enfusion, Inc. a leader in software-as-a-service (SaaS) solutions for the investment management and hedge fund industry, for $1.5 billion, expanding its investment management platform with front-to-back capabilities. The acquisition of Enfusion accelerates Clearwater’s vision of building the first cloud-native front-to-back platform for the entire investment management industry.

• In the fourth quarter, the Company expanded its footprint within existing clients and added marquee clients such as Imperial Fund Capital Partners, Invictus Capital Management, National Association of Realtors, Nucor Corporation, OpenAI, School Employees Retirement System of Ohio, State of Louisiana, United Nations Federal Credit Union, Vaxcyte, and WCF Insurance.

• The Company announced that Industrial Alliance Portfolio Management (“IAPM”) selected Clearwater Analytics to enhance its performance attribution and risk analysis capabilities. IAPM is using the Clearwater Analytics Risk & Performance Solution to perform in-depth factor-based attribution and ex-ante risk analyses.

• The Company announced that The Alameda County Employees’ Retirement Association (“ACERA”) selected Clearwater Analytics to provide data validation, shadow book of record accounting, and total plan reporting across its entire investment portfolio, including its alternative assets. ACERA will leverage the Clearwater platform with embedded Generative AI capabilities to automatically aggregate and validate data across multiple sources and formats and identify and escalate data anomalies or failures.

First Quarter and Full Year 2025 Guidance

 

First Quarter 2025

 

Full Year 2025

Revenue

$125 million

 

$535.5 million to $542 million

Year-over-Year Growth %

~22%

 

~19% to 20%

Adjusted EBITDA

$41.5 million

 

$182 million to $185 million

Adjusted EBITDA Margin %

~33%

 

~34%

Total equity-based compensation expense and related payroll taxes

 

 

~$106 million

Depreciation and Amortization

 

 

~$13 million

Non-GAAP effective tax rate

 

 

25%

Diluted non-GAAP share count

 

 

~263 million

 

*This guidance assumes no effect from the proposed Enfusion acquisition.

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 February 19, 2025, at 5:00 p.m. Eastern time to discuss fourth quarter and full year 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 $8.8 trillion in assets spanning traditional and alternative asset types. Additional information about Clearwater can be found at clearwateranalytics.com.

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 timing of the consummation of acquisition of Enfusion and the ability to satisfy closing conditions, 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 the Company’s 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 successfully close the acquisition of Enfusion, the Company’s ability to successfully integrate the operations and technology of Enfusion with those of the Company, retain and incentivize the employees of Enfusion following the close of the acquisition, retain Enfusion’s clients, repay debt to be incurred in connection with the Enfusion acquisition and meet financial covenants to be imposed in connection with such debt, risks that cost savings, synergies and growth from the proposed Enfusion acquisition may not be fully realized or may take longer to realize than expected, 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 as well as other risks and uncertainties detailed in Clearwater Analytics’ periodic public filings with the U.S. Securities and Exchange Commission (the “SEC”), including but not limited to those discussed under “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 29, 2024, those discussed under “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 that will be filed following this earnings release, and in other periodic reports the Company subsequently files with the SEC. These filings are available at www.sec.gov and on the Company’s 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 the Company’s expectations or beliefs as of any date subsequent to the time they are made. The Company 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 the Company.

Clearwater Analytics Holdings, Inc.

Consolidated Balance Sheets

(In thousands, except share amounts and per share amounts, unaudited)

 

 

December 31,

 

December 31,

 

 

2024

 

 

 

2023

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

177,350

 

 

$

221,765

 

Short-term investments

 

78,139

 

 

 

74,457

 

Accounts receivable, net

 

106,151

 

 

 

92,091

 

Prepaid expenses and other current assets

 

23,006

 

 

 

27,683

 

Total current assets

 

384,646

 

 

 

415,996

 

Property and equipment, net

 

14,797

 

 

 

15,349

 

Operating lease right-of-use assets, net

 

24,797

 

 

 

22,554

 

Deferred contract costs, non-current

 

7,013

 

 

 

6,439

 

Debt issuance costs - line of credit

 

339

 

 

 

533

 

Deferred tax assets, net

 

602,500

 

 

 

1,344

 

Other non-current assets

 

3,340

 

 

 

3,563

 

Intangible assets, net

 

30,868

 

 

 

26,132

 

Goodwill

 

70,971

 

 

 

45,338

 

Long-term investments

 

30,301

 

 

 

21,495

 

Total assets

$

1,169,572

 

 

$

558,743

 

Liabilities and Stockholders' Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

2,934

 

 

$

3,062

 

Accrued expenses and other current liabilities

 

62,983

 

 

 

49,535

 

Notes payable, current portion

 

2,750

 

 

 

2,750

 

Operating lease liability, current portion

 

8,350

 

 

 

6,551

 

Tax receivable agreement liability

 

35

 

 

 

18,894

 

Total current liabilities

 

77,052

 

 

 

80,792

 

Notes payable, less current maturities and unamortized debt issuance costs

 

43,164

 

 

 

45,828

 

Operating lease liability, less current portion

 

17,655

 

 

 

16,948

 

Other long-term liabilities

 

1,470

 

 

 

5,518

 

Total liabilities

 

139,341

 

 

 

149,086

 

Commitments and contingencies (Note 11)

 

 

 

Stockholders' Equity

 

 

 

Class A common stock, par value $0.001 per share; 1,500,000,000 shares authorized, 212,857,580 shares issued and outstanding as of December 31, 2024, 127,604,185 shares issued and outstanding as of December 31, 2023

 

213

 

 

 

128

 

Class B common stock, par value $0.001 per share; 500,000,000 shares authorized, no share issued and outstanding as of December 31, 2024, 111,191 shares issued and outstanding as of December 31, 2023

 

—

 

 

 

—

 

Class C common stock, par value $0.001 per share; 500,000,000 shares authorized, 12,542,110 shares issued and outstanding as of December 31, 2024, 32,684,156 shares issued and outstanding as of December 31, 2023

 

13

 

 

 

33

 

Class D common stock, par value $0.001 per share; 500,000,000 shares authorized, 22,243,668 shares issued and outstanding as of December 31, 2024, 82,955,977 shares issued and outstanding as of December 31, 2023

 

22

 

 

 

83

 

Additional paid-in-capital

 

725,174

 

 

 

532,507

 

Accumulated other comprehensive (loss) income

 

(1,113

)

 

 

2,909

 

Retained earnings (accumulated deficit)

 

283,946

 

 

 

(181,331

)

Total stockholders' equity attributable to Clearwater Analytics Holdings, Inc.

 

1,008,255

 

 

 

354,329

 

Non-controlling interests

 

21,976

 

 

 

55,328

 

Total stockholders' equity

 

1,030,231

 

 

 

409,657

 

Total liabilities and stockholders' equity

$

1,169,572

 

 

$

558,743

 

Clearwater Analytics Holdings, Inc.

Consolidated Statements of Operations

(In thousands, except share amounts and per share amounts, unaudited)

 

 

Three Months Ended

December 31,

 

Year Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenue

$

126,465

 

 

$

99,019

 

 

$

451,803

 

 

$

368,168

 

Cost of revenue(1)

 

33,561

 

 

 

28,335

 

 

 

122,987

 

 

 

107,127

 

Gross profit

 

92,904

 

 

 

70,684

 

 

 

328,816

 

 

 

261,041

 

Operating expenses:

 

 

 

 

 

 

 

Research and development(1)

 

40,904

 

 

 

33,728

 

 

 

150,558

 

 

 

123,925

 

Sales and marketing(1)

 

17,885

 

 

 

16,316

 

 

 

67,254

 

 

 

60,365

 

General and administrative(1)

 

32,896

 

 

 

18,050

 

 

 

98,770

 

 

 

93,496

 

Total operating expenses

 

91,685

 

 

68,094

 

 

 

316,582

 

 

 

277,786

 

Income (loss) from operations

 

1,219

 

 

 

2,590

 

 

 

12,234

 

 

 

(16,745

)

Interest income, net

 

(2,430

)

 

 

(1,979

)

 

 

(8,621

)

 

 

(6,401

)

Tax receivable agreement expense

 

41,637

 

 

 

8,284

 

 

 

53,181

 

 

 

14,396

 

Other income, net

 

(1,150

)

 

 

(669

)

 

 

(2,263

)

 

 

(1,874

)

Loss before income taxes

 

(36,838

)

 

 

(3,046

)

 

 

(30,063

)

 

 

(22,866

)

Provision for (benefit from) income taxes

 

(457,143

)

 

 

401

 

 

 

(457,648

)

 

 

217

 

Net income (loss)

 

420,305

 

 

 

(3,447

)

 

 

427,585

 

 

 

(23,083

)

Less: Net income (loss) attributable to non-controlling interests

 

819

 

 

 

739

 

 

 

3,207

 

 

 

(1,456

)

Net income (loss) attributable to Clearwater Analytics Holdings, Inc.

$

419,486

 

 

$

(4,186

)

 

$

424,378

 

 

$

(21,627

)

 

 

 

 

 

 

 

 

Net earnings (loss) per share attributable to Class A and Class D common stock:

 

 

 

 

 

 

 

Basic

$

1.85

 

 

$

(0.02

)

 

$

1.93

 

 

$

(0.11

)

Diluted

$

1.63

 

 

$

(0.02

)

 

$

1.68

 

 

$

(0.11

)

 

 

 

 

 

 

 

 

Weighted average shares of Class A and Class D common stock outstanding:

 

 

 

 

 

 

 

Basic

 

226,571,994

 

 

 

206,193,802

 

 

 

219,316,625

 

 

 

199,691,873

 

Diluted

 

258,131,701

 

 

 

206,193,802

 

 

 

254,362,539

 

 

 

199,691,873

 

(1) Amounts include equity-based compensation as follows:

Cost of revenue

$

3,755

 

$

3,378

 

$

13,634

 

$

12,215

Operating expenses:

 

 

 

 

 

 

 

Research and development

 

9,326

 

 

7,346

 

 

36,093

 

 

24,739

Sales and marketing

 

4,885

 

 

4,622

 

 

15,304

 

 

15,843

General and administrative

 

10,176

 

 

6,975

 

 

38,170

 

 

51,650

Total equity-based compensation expense

$

28,142

 

$

22,321

 

$

103,201

 

$

104,447

Clearwater Analytics Holdings, Inc.

Consolidated Statements of Cash Flows

(In thousands, unaudited)

 

 

Three Months Ended

December 31,

 

Year Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

OPERATING ACTIVITIES

 

 

 

 

 

 

 

Net income (loss)

$

420,305

 

 

$

(3,447

)

 

$

427,585

 

 

$

(23,083

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

3,451

 

 

 

2,593

 

 

 

12,181

 

 

 

9,929

 

Noncash operating lease cost

 

2,341

 

 

 

1,952

 

 

 

9,221

 

 

 

7,619

 

Equity-based compensation

 

28,142

 

 

 

22,321

 

 

 

103,201

 

 

 

104,447

 

Amortization of deferred contract acquisition costs

 

1,692

 

 

 

1,200

 

 

 

5,265

 

 

 

4,763

 

Amortization of debt issuance costs, included in interest expense

 

71

 

 

 

71

 

 

 

280

 

 

 

280

 

Accretion of discount on investments

 

(452

)

 

 

(573

)

 

 

(2,185

)

 

 

(1,474

)

Deferred tax benefit

 

(456,956

)

 

 

(913

)

 

 

(460,032

)

 

 

(1,665

)

Realized gain on investments

 

—

 

 

 

—

 

 

 

(35

)

 

 

(89

)

Loss on fixed assets disposal

 

66

 

 

 

—

 

 

 

66

 

 

 

—

 

Changes in operating assets and liabilities, excluding the impact of business acquisitions:

 

 

 

 

 

 

 

Accounts receivable, net

 

(5,774

)

 

 

(434

)

 

 

(13,648

)

 

 

(19,298

)

Prepaid expenses and other assets

 

3,066

 

 

 

(3,068

)

 

 

5,627

 

 

 

1,151

 

Deferred contract acquisition costs

 

(2,826

)

 

 

(2,405

)

 

 

(6,242

)

 

 

(5,067

)

Accounts payable

 

(1,317

)

 

 

(224

)

 

 

269

 

 

 

(115

)

Accrued expenses and other liabilities

 

8,044

 

 

 

7,081

 

 

 

11,627

 

 

 

1,204

 

Tax receivable agreement liability

 

(28,793

)

 

 

(61

)

 

 

(18,859

)

 

 

6,000

 

Net cash (used in) provided by operating activities

 

(28,940

)

 

 

24,093

 

 

 

74,321

 

 

 

84,602

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

Purchases of property and equipment

 

(822

)

 

 

(1,562

)

 

 

(5,259

)

 

 

(5,624

)

Purchase of held to maturity investments

 

—

 

 

 

—

 

 

 

(3,009

)

 

 

(3,004

)

Purchases of available-for-sale investments

 

(20,662

)

 

 

(13,160

)

 

 

(114,572

)

 

 

(124,178

)

Proceeds from sale of available-for-sale investments

 

—

 

 

 

—

 

 

 

—

 

 

 

5,950

 

Proceeds from maturities of investments

 

20,550

 

 

 

15,280

 

 

 

107,417

 

 

 

31,801

 

Acquisition of business, net of cash acquired

 

—

 

 

 

—

 

 

 

(40,121

)

 

 

—

 

Payment of initial direct costs for operating lease

 

—

 

 

 

—

 

 

 

(104

)

 

 

—

 

Net cash provided by (used in) investing activities

 

(934

)

 

 

558

 

 

 

(55,648

)

 

 

(95,055

)

FINANCING ACTIVITIES

 

 

 

 

 

 

 

Proceeds from exercise of options

 

38

 

 

 

274

 

 

 

248

 

 

 

4,738

 

Taxes paid related to net share settlement of equity awards

 

(12,638

)

 

 

(5,895

)

 

 

(55,301

)

 

 

(20,784

)

Proceeds from employee stock purchase plan

 

1,898

 

 

 

1,994

 

 

 

4,693

 

 

 

4,588

 

Repayments of borrowings

 

(688

)

 

 

(688

)

 

 

(2,750

)

 

 

(2,749

)

Payment of tax distributions

 

(3,873

)

 

 

(2,149

)

 

 

(3,873

)

 

 

(2,184

)

Payment of business acquisition holdback liability

 

(3,905

)

 

 

(2,900

)

 

 

(4,685

)

 

 

(2,900

)

Net cash used in financing activities

 

(19,168

)

 

 

(9,364

)

 

 

(61,668

)

 

 

(19,291

)

Effect of exchange rate changes on cash and cash equivalents

 

(2,302

)

 

 

813

 

 

 

(1,420

)

 

 

785

 

Change in cash and cash equivalents during the period

 

(51,344

)

 

 

16,100

 

 

 

(44,415

)

 

 

(28,959

)

Cash and cash equivalents, beginning of period

 

228,694

 

 

 

205,665

 

 

 

221,765

 

 

 

250,724

 

Cash and cash equivalents, end of period

$

177,350

 

 

$

221,765

 

 

$

177,350

 

 

$

221,765

 

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

 

 

 

 

 

 

 

Cash paid for interest

$

837

 

 

$

924

 

 

$

3,464

 

 

$

3,454

 

Cash paid for income taxes

$

800

 

 

$

395

 

 

$

1,979

 

 

$

2,432

 

NON-CASH INVESTING AND FINANCING ACTIVITIES

 

 

 

 

 

 

 

Purchase of property and equipment included in accounts payable and accrued expense

$

38

 

 

$

435

 

 

$

38

 

 

$

435

 

Tax distributions payable to Continuing Equity Owners included in accrued expenses

$

23

 

 

$

2,945

 

 

$

23

 

 

$

2,945

 

Clearwater Analytics Holdings, Inc.

Reconciliation of Net Loss to Adjusted EBITDA

(In thousands, unaudited)

 

 

Three Months Ended December 31,

 

2024

 

2023

 

(in thousands, except percentages)

Net income (loss)

$

420,305

 

 

332

%

 

$

(3,447

)

 

(3

%)

Adjustments:

 

 

 

 

 

 

 

Interest income, net

 

(2,430

)

 

(2

%)

 

 

(1,979

)

 

(2

%)

Depreciation and amortization

 

3,451

 

 

3

%

 

 

2,593

 

 

3

%

Equity-based compensation expense and related payroll taxes

 

30,421

 

 

24

%

 

 

23,660

 

 

24

%

Tax receivable agreement expense

 

41,637

 

 

33

%

 

 

8,284

 

 

8

%

Transaction expenses

 

6,382

 

 

5

%

 

 

441

 

 

0

%

Amortization of prepaid management fees and reimbursable expenses

 

210

 

 

0

%

 

 

698

 

 

1

%

Provision for (benefit from) income taxes

 

(457,143

)

 

(361

%)

 

 

401

 

 

0

%

Other income, net

 

(1,150

)

 

(1

%)

 

 

(669

)

 

(1

%)

Adjusted EBITDA

 

41,683

 

 

33

%

 

 

29,982

 

 

30

%

Revenue

$

126,465

 

 

100

%

 

$

99,019

 

 

100

%

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

2024

 

2023

 

(in thousands, except percentages)

Net income (loss)

$

427,585

 

 

95

%

 

$

(23,083

)

 

(6

%)

Adjustments:

 

 

 

 

 

 

 

Interest income, net

 

(8,621

)

 

(2

%)

 

 

(6,401

)

 

(2

%)

Depreciation and amortization

 

12,181

 

 

3

%

 

 

9,929

 

 

3

%

Equity-based compensation expense and related payroll taxes

 

110,961

 

 

25

%

 

 

108,078

 

 

29

%

Tax receivable agreement expense

 

53,181

 

 

12

%

 

 

14,396

 

 

4

%

Transaction expenses

 

8,308

 

 

2

%

 

 

2,052

 

 

1

%

Amortization of prepaid management fees and reimbursable expenses

 

1,990

 

 

0

%

 

 

2,592

 

 

1

%

Provision for (benefit from) income taxes

 

(457,648

)

 

(101

%)

 

 

217

 

 

0

%

Other income, net

 

(2,263

)

 

(1

%)

 

 

(1,874

)

 

(1

%)

Adjusted EBITDA

 

145,674

 

 

32

%

 

 

105,906

 

 

29

%

Revenue

$

451,803

 

 

100

%

 

$

368,168

 

 

100

%

 

 

 

 

 

 

 

 

Clearwater Analytics Holdings, Inc.

Reconciliation of Free Cash Flow

(In thousands, unaudited)

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2024

 

 

 

2023

 

 

2024

 

 

2023

Net cash (used in) provided by operating activities

$

(28,940

)

 

$

24,093

 

$

74,321

 

$

84,602

Less: Purchases of property and equipment

 

822

 

 

 

1,562

 

 

5,259

 

 

5,624

Free Cash Flow

$

(29,762

)

 

$

22,531

 

$

69,062

 

$

78,978

Clearwater Analytics Holdings, Inc.

Reconciliation of Non-GAAP Information

(In thousands, except share amounts and per share amounts, unaudited)

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenue

$

126,465

 

 

$

99,019

 

 

$

451,803

 

 

$

368,168

 

 

 

 

 

 

 

 

 

Gross profit

$

92,904

 

 

$

70,684

 

 

$

328,816

 

 

$

261,041

 

Adjustments:

 

 

 

 

 

 

 

Equity-based compensation expense and related payroll taxes

 

3,963

 

 

 

3,411

 

 

 

14,546

 

 

 

12,734

 

Depreciation and amortization

 

2,840

 

 

 

2,102

 

 

 

10,137

 

 

 

7,999

 

Gross profit, non-GAAP

$

99,707

 

 

$

76,197

 

 

$

353,499

 

 

$

281,774

 

As a percentage of revenue, non-GAAP

 

79

%

 

 

77

%

 

 

78

%

 

 

77

%

 

 

 

 

 

 

 

 

Cost of Revenue

$

33,561

 

 

$

28,335

 

 

$

122,987

 

 

$

107,127

 

Adjustments:

 

 

 

 

 

 

 

Equity-based compensation expense and related payroll taxes

 

3,963

 

 

 

3,411

 

 

 

14,546

 

 

 

12,734

 

Depreciation and amortization

 

2,840

 

 

 

2,102

 

 

 

10,137

 

 

 

7,999

 

Cost of revenue, non-GAAP

$

26,758

 

 

$

22,822

 

 

$

98,304

 

 

$

86,394

 

As a percentage of revenue, non-GAAP

 

21

%

 

 

23

%

 

 

22

%

 

 

23

%

 

 

 

 

 

 

 

 

Research and development

$

40,904

 

 

$

33,728

 

 

$

150,558

 

 

$

123,925

 

Adjustments:

 

 

 

 

 

 

 

Equity-based compensation expense and related payroll taxes

 

11,091

 

 

 

7,394

 

 

 

41,356

 

 

 

25,627

 

Depreciation and amortization

 

156

 

 

 

258

 

 

 

736

 

 

 

1,044

 

Research and development, non-GAAP

$

29,657

 

 

$

26,076

 

 

$

108,466

 

 

$

97,254

 

As a percentage of revenue, non-GAAP

 

23

%

 

 

26

%

 

 

24

%

 

 

26

%

 

 

 

 

 

 

 

 

Sales and marketing

$

17,885

 

 

$

16,316

 

 

$

67,254

 

 

$

60,365

 

Adjustments:

 

 

 

 

 

 

 

Equity-based compensation expense and related payroll taxes

 

5,024

 

 

 

4,636

 

 

 

16,017

 

 

 

16,419

 

Depreciation and amortization

 

173

 

 

 

148

 

 

 

638

 

 

 

589

 

Sales and marketing, non-GAAP

$

12,688

 

 

$

11,532

 

 

$

50,599

 

 

$

43,357

 

As a percentage of revenue, non-GAAP

 

10

%

 

 

12

%

 

 

11

%

 

 

12

%

 

 

 

 

 

 

 

 

General and administrative

$

32,896

 

 

$

18,050

 

 

$

98,770

 

 

$

93,496

 

Adjustments:

 

 

 

 

 

 

 

Equity-based compensation expense and related payroll taxes

 

10,343

 

 

 

8,219

 

 

 

39,042

 

 

 

53,298

 

Depreciation and amortization

 

282

 

 

 

85

 

 

 

670

 

 

 

297

 

Amortization of prepaid management fees and reimbursable expenses

 

210

 

 

 

698

 

 

 

1,990

 

 

 

2,592

 

Transaction expenses

 

6,382

 

 

 

441

 

 

 

8,308

 

 

 

2,052

 

General and administrative, non-GAAP

$

15,679

 

 

$

8,607

 

 

$

48,760

 

 

$

35,258

 

As a percentage of revenue, non-GAAP

 

12

%

 

 

9

%

 

 

11

%

 

 

10

%

 

 

 

 

 

 

 

 

Income (loss) from operations

$

1,219

 

 

$

2,590

 

 

$

12,234

 

 

$

(16,745

)

Adjustments:

 

 

 

 

 

 

 

Equity-based compensation expense and related payroll taxes

 

30,421

 

 

 

23,660

 

 

 

110,961

 

 

 

108,078

 

Depreciation and amortization

 

3,451

 

 

 

2,593

 

 

 

12,181

 

 

 

9,929

 

Amortization of prepaid management fees and reimbursable expenses

 

210

 

 

 

698

 

 

 

1,990

 

 

 

2,592

 

Transaction expenses

 

6,382

 

 

 

441

 

 

 

8,308

 

 

 

2,052

 

Income from operations, non-GAAP

$

41,683

 

 

$

29,982

 

 

$

145,674

 

 

$

105,906

 

As a percentage of revenue, non-GAAP

 

33

%

 

 

30

%

 

 

32

%

 

 

29

%

 

 

 

 

 

 

 

 

Net income (loss)

$

420,305

 

 

$

(3,447

)

 

$

427,585

 

 

$

(23,083

)

Adjustments:

 

 

 

 

 

 

 

Equity-based compensation expense and related payroll taxes

 

30,421

 

 

 

23,660

 

 

 

110,961

 

 

 

108,078

 

Depreciation and amortization

 

3,451

 

 

 

2,593

 

 

 

12,181

 

 

 

9,929

 

Tax receivable agreement expense

 

41,637

 

 

 

8,284

 

 

 

53,181

 

 

 

14,396

 

Amortization of prepaid management fees and reimbursable expenses

 

210

 

 

 

698

 

 

 

1,990

 

 

 

2,592

 

Transaction expenses

 

6,382

 

 

 

441

 

 

 

8,308

 

 

 

2,052

 

Tax impacts of adjustments to net income (loss)(1)

 

(468,459

)

 

 

(8,158

)

 

 

(496,779

)

 

 

(28,545

)

Net income, non-GAAP

$

33,947

 

 

$

24,071

 

 

$

117,427

 

 

$

85,419

 

As a percentage of revenue, non-GAAP

 

27

%

 

 

24

%

 

 

26

%

 

 

23

%

 

 

 

 

 

 

 

 

Net income per share - basic, non-GAAP

$

0.15

 

 

$

0.12

 

 

$

0.54

 

 

$

0.43

 

Net income per share - diluted, non-GAAP

$

0.13

 

 

$

0.10

 

 

$

0.46

 

 

$

0.33

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding - basic

 

226,571,994

 

 

 

206,193,802

 

 

 

219,316,625

 

 

 

199,691,873

 

Weighted-average common shares outstanding - diluted

 

258,131,701

 

 

 

252,215,606

 

 

 

254,362,539

 

 

 

255,750,590

 

(1)

The non-GAAP effective tax rate was 25% for the three months and year ended December 31, 2024 and 2023, respectively, and has been used to adjust the provision for income taxes for non-GAAP net income and non-GAAP basic and diluted net income per share. The Company excludes income tax benefits from discrete activities, including the income tax benefit related to the release of the US federal state valuation allowance, because of their nonrecurring nature.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250219373514/en/

Investors: Joon Park | +1 415-906-9242 | investors@clearwateranalytics.com

Media: Claudia Cahill | +1 703-728-1221 | press@clearwateranalytics.com