Record Quarterly Revenue of $102.7 Million, Up 21% Year-Over-Year
Adjusted EBITDA of $32.2 Million, Up 43% Year-Over-Year
Gross Revenue Retention Rate of 99%; Net
Revenue Retention Rate of 110%
Annualized Recurring Revenue of $402.3 Million, Up 19% Year-Over-Year
Adjusted Gross Margin Increases to 78%, Up 210
bps Year-Over-Year
BOISE,
Idaho, May 1, 2024 /PRNewswire/
-- 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 March 31,
2024.
"The 21% organic year-over-year revenue growth in Q1 2024
demonstrates the continued disruptive power of our platform and its
adoption by a diverse group of clients across industries and
geographies. We continue to invest in and bring to market new
innovative products that resonate with our current clients' needs.
This is one of the key levers of increasing NRR in the long-term,
and we are pleased with the progress we are making. We're also
committed to expanding our TAM, and we believe that the acquisition
of the risk, performance, and analytics products of Wilshire
Advisors will position us as a leading player in that market.
Combined with the JUMP Technology acquisition in November 2022, we have now addressed two key
elements of solutions needed by the middle and front office," said
Sandeep Sahai, CEO at Clearwater
Analytics. "We're also very pleased with increased operational and
onboarding efficiency driven by our strong network effects,
AI-driven functionality, and other innovations which yielded
significantly improved operating metrics. These are truly exciting
times for the Company."
First Quarter 2024 Financial Results Summary
- Revenue: Total revenue for the first quarter of 2024 was
$102.7 million, an increase of 21.4%,
from $84.6 million in the first
quarter of 2023.
- Gross Profit: Gross profit for the first quarter of 2024
increased to $74.5 million, which
equates to a 72.6% GAAP gross margin, compared with $59.8 million in the first quarter of 2023.
Non-GAAP gross profit for the first quarter of 2024 was
$80.2 million, which equates to a
78.0% non-GAAP gross margin and an increase of 210 basis points
over the first quarter of 2023.
- Net Income/(Loss): Net income for the first quarter of
2024 was $2.2 million, compared with
net loss of $5.4 million in the first
quarter of 2023. Non-GAAP net income for the first quarter of 2024
increased to $26.2 million, an
increase of 48.8%, from $17.6 million
in the first quarter of 2023.
- Adjusted EBITDA: Adjusted EBITDA for the first quarter
of 2024 was $32.2 million, an
increase of 42.9%, from $22.5 million
in the first quarter of 2023. Adjusted EBITDA margin for the first
quarter of 2024 was 31.3%, an increase of 470 basis points over the
first quarter of 2023.
- Cash Flows: Operating cash flows for the first quarter
of 2024 were $10.0 million. Free cash
flows for the first quarter of 2024 were $8.6 million, an increase of 38.3%, from
$6.2 million in the first quarter of
2023.
- Earnings Per Share and Non-GAAP Net Income Per Share
attributable to Clearwater Analytics Holdings, Inc.: Earnings
per basic and diluted share was $0.01
in the first quarter of 2024. Non-GAAP net income per basic share
was $0.12, and non-GAAP net income
per diluted share was $0.10 in the
first quarter of 2024.
- Cash, cash equivalents, and investments were
$296.5 million as of March 31, 2024. During the first quarter, the
Company reduced share count dilution by paying $28.8 million in taxes for net share settlement
of equity awards. Total debt, net of debt issuance cost, was
$47.9 million as of March 31, 2024.
First Quarter 2024 Key Metrics Summary
- Annualized Recurring Revenue: As of March 31, 2024, annualized recurring revenue
("ARR") reached $402.3 million, an
increase of 19.3% from $337.4 million
as of March 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 March 31, 2024, the gross revenue retention rate
was 99%, compared to 97% as of March 31,
2023. The Company has reported a gross revenue retention
rate of at least 98% for twenty out of the twenty-one prior
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 March 31, 2024, the net revenue retention rate
was 110%, compared 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.
Recent Business Highlights
- On April 22, 2024, Clearwater
Analytics completed its acquisition of the risk performance, and
analytics platforms of Wilshire Advisors LLC, a leading global
financial services firm. Specifically, Clearwater acquired Wilshire
AxiomSM, Wilshire
AtlasSM, Wilshire Abacus, and Wilshire
iQComposite, which provide fixed income analytics, equity analytics
and performance measurement, accounting, and GIPS®
compliance support analytics, respectively, merging them with its
own risk and performance analytics platform to create a
best-in-class solution for front and middle office clients.
- Clearwater Analytics continued on its journey towards a
multi-product company and successfully drove cross-sell and upsell
in the first quarter. Highlights include:
- Clearwater PRISM clients, including Aegon Asset
Management, that successfully went live on our market-leading
next-gen investment data management hub for enhanced client portal
and reporting. Clearwater
announced that Aegon Asset Management is using Clearwater PRISM to
easily aggregate multi-asset client investment data, enabling
growth and a differentiated client experience.
- A growing roster of clients that use both Clearwater's JUMP solution for OMS/PMS
and Clearwater's accounting and
reconciliation solution.
- Clearwater also announced the
availability of Clearwater CWIC LPx, the Company's latest
generative AI-based solution. CWIC LPx brings enhanced front
office, accounting, and operations functionality to LPx users at
leading insurance firms, asset managers, private banks, wealth
managers, and pension managers, allowing them to easily extract
investment insights on-demand.
- Clearwater Analytics announced that leading general insurer
MSIG Singapore selected Clearwater
to power its investment data management, portfolio analytics, and
investment reporting operations. MSIG Singapore will leverage
Clearwater's single instance,
multi-tenant technology platform to gain a comprehensive view of
investment portfolio reporting and analytics. By having the
flexibility to conduct digital reporting, investment teams and
regional stakeholders will be able to comply with international
reporting standards, including IFRS 9.
- Clearwater Analytics announced that France Active successfully
implemented the Clearwater
platform after a five-month onboarding period, in order to simplify
their investment accounting operations and centralize their
accounting book of record. France Active will realize significant
business benefits with Clearwater,
including timely book-of-record accounting, efficient period-end
operational tasks, and increased productivity as a result of
automating tasks associated with reconciliation and reporting.
- Clearwater Analytics won the IFRS 9 Solution Provider of the
Year award for the second consecutive year. Insurance Asset Risk
Awards honored Clearwater for its
cloud-based SaaS platform and dedicated Client Services offering,
which provides a robust foundation to assist clients with their
IFRS 9 plan, or global equivalents such as PSAK 71.
- Clearwater Analytics won the Technology Provider of the Year
Excellence Award for the second year in a row. The InsuranceAsia
News Excellence Awards celebrate the best firms in the Asia Pacific (re)insurance market, and honored
Clearwater Analytics for playing a crucial role in helping insurers
achieve efficiency, analytical superiority, and leverage new
technologies to future-proof their business and the industry.
- Clearwater Analytics won the Best RegTech Platform award at the
8th annual FinTech Breakthrough Awards. This recognition highlights
Clearwater's commitment to
simplifying accounting, regulatory reporting, and investment
operations for its growing base of global clients.
Second Quarter and Full Year 2024 Guidance
|
Second Quarter
2024
|
|
Full Year
2024
|
Revenue
|
$105 million to $106
million
|
|
$438 million to $442
million
|
Year-over-Year Growth
%
|
~17% to 18%
|
|
~19% to 20%
|
Adjusted
EBITDA
|
$31 million
|
|
$137 million to $139
million
|
Adjusted EBITDA Margin
%
|
~29% to 30%
|
|
~31%
|
Total Equity-based
compensation expense and related payroll taxes
|
|
|
~$106
million
|
Depreciation and
Amortization
|
|
|
~$11 million
|
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
May 1, 2024, at 5:00 p.m. Eastern time to discuss first 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
$7.3 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 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
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 on
February 29, 2024, and in other
periodic reports filed by Clearwater Analytics with the SEC. 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 share amounts and per share amounts,
unaudited)
|
|
|
March
31
|
|
December
31
|
|
2024
|
|
2023
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
189,644
|
|
$
221,765
|
Short-term
investments
|
77,930
|
|
74,457
|
Accounts receivable,
net
|
96,766
|
|
92,091
|
Prepaid expenses and
other current assets
|
31,410
|
|
27,683
|
Total current
assets
|
395,750
|
|
415,996
|
Property and equipment,
net
|
15,035
|
|
15,349
|
Operating lease
right-of-use assets, net
|
27,750
|
|
22,554
|
Deferred contract
costs, non-current
|
6,218
|
|
6,439
|
Intangible assets,
net
|
24,526
|
|
26,132
|
Goodwill
|
44,332
|
|
45,338
|
Long-term
investments
|
28,894
|
|
21,495
|
Other non-current
assets
|
5,298
|
|
5,440
|
Total assets
|
$
547,803
|
|
$
558,743
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
2,719
|
|
$
3,062
|
Accrued expenses and
other current liabilities
|
40,948
|
|
49,535
|
Notes payable, current
portion
|
2,750
|
|
2,750
|
Operating lease
liability, current portion
|
7,650
|
|
6,551
|
Tax receivable
agreement liability
|
16,750
|
|
18,894
|
Total current
liabilities
|
70,817
|
|
80,792
|
Notes payable, less
current maturities and unamortized debt issuance costs
|
45,162
|
|
45,828
|
Operating lease
liability, less current portion
|
21,129
|
|
16,948
|
Tax receivable
agreement, less current portion
|
300
|
|
—
|
Other long-term
liabilities
|
4,180
|
|
5,518
|
Total
liabilities
|
141,588
|
|
149,086
|
Stockholders'
Equity
|
|
|
|
Class A common stock,
par value $0.001 per share; 1,500,000,000 shares authorized,
146,189,247 shares issued and outstanding
as of March 31, 2024, 127,604,185 shares issued and outstanding as
of December 31, 2023
|
146
|
|
128
|
Class B common stock,
par value $0.001 per share; 500,000,000 shares authorized, 111,191
shares issued and outstanding as of
March 31, 2024 and December 31, 2023
|
—
|
|
—
|
Class C common stock,
par value $0.001 per share; 500,000,000 shares authorized,
27,424,288 shares issued and outstanding as
of March 31, 2024, 32,684,156 shares issued and outstanding as of
December 31, 2023
|
27
|
|
33
|
Class D common stock,
par value $0.001 per share; 500,000,000 shares authorized,
71,965,845 shares issued and outstanding as
of March 31, 2024, 82,955,977 shares issued and outstanding as of
December 31, 2023
|
72
|
|
83
|
Additional
paid-in-capital
|
528,712
|
|
532,507
|
Accumulated other
comprehensive income
|
1,314
|
|
2,909
|
Accumulated
deficit
|
(169,603)
|
|
(181,331)
|
Total stockholders'
equity attributable to Clearwater Analytics Holdings,
Inc.
|
360,668
|
|
354,329
|
Non-controlling
interests
|
45,547
|
|
55,328
|
Total stockholders'
equity
|
406,215
|
|
409,657
|
Total liabilities and
stockholders' equity
|
$
547,803
|
|
$
558,743
|
Clearwater Analytics
Holdings, Inc.
Consolidated
Statements of Operations
(In thousands,
except share amounts and per share amounts,
unaudited)
|
|
|
Three Months
Ended
March 31,
|
|
2024
|
|
2023
|
Revenue
|
$
102,719
|
|
$
84,606
|
Cost of
revenue(1)
|
28,178
|
|
24,825
|
Gross profit
|
74,541
|
|
59,781
|
Operating
expenses:
|
|
|
|
Research and
development(1)
|
37,676
|
|
28,100
|
Sales and
marketing(1)
|
16,311
|
|
14,698
|
General and
administrative(1)
|
20,720
|
|
23,306
|
Total operating
expenses
|
74,707
|
|
66,104
|
Loss from
operations
|
(166)
|
|
(6,323)
|
Interest income,
net
|
(2,060)
|
|
(1,356)
|
Tax receivable
agreement expense
|
286
|
|
105
|
Other (income)
expense, net
|
(530)
|
|
81
|
Income (loss) before
income taxes
|
2,138
|
|
(5,153)
|
Provision for (benefit
from) income taxes
|
(98)
|
|
264
|
Net income
(loss)
|
2,236
|
|
(5,417)
|
Less: Net income (loss)
attributable to non-controlling interests
|
338
|
|
(1,033)
|
Net income (loss)
attributable to Clearwater Analytics Holdings, Inc.
|
$
1,898
|
|
$
(4,384)
|
|
|
|
|
Net income (loss) per
share attributable to Class A and Class D common stockholders
stock:
|
|
|
|
Basic
|
$
0.01
|
|
$
(0.02)
|
Diluted
|
$
0.01
|
|
$
(0.02)
|
|
|
|
|
Weighted average shares
of Class A and Class D common stock outstanding:
|
|
|
|
Basic
|
213,259,463
|
|
192,993,574
|
Diluted
|
255,458,196
|
|
192,993,574
|
|
(1) Amounts
include equity-based compensation as follows:
|
|
Cost of
revenue
|
$
3,146
|
|
$
2,243
|
Operating
expenses:
|
|
|
|
Research and
development
|
8,911
|
|
4,655
|
Sales and
marketing
|
3,821
|
|
3,965
|
General and
administrative
|
8,347
|
|
12,337
|
Total equity-based
compensation expense
|
$
24,225
|
|
$
23,200
|
Clearwater Analytics
Holdings, Inc.
Consolidated
Statements of Cash Flows
(In thousands,
unaudited)
|
|
|
Three Months Ended
March 31,
|
|
2024
|
|
2023
|
OPERATING
ACTIVITIES
|
|
|
|
Net income
(loss)
|
$
2,236
|
|
$
(5,417)
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
2,550
|
|
2,449
|
Noncash operating
lease cost
|
2,232
|
|
1,852
|
Equity-based
compensation
|
24,225
|
|
23,200
|
Amortization of
deferred contract acquisition costs
|
1,217
|
|
1,201
|
Amortization of debt
issuance costs, included in interest expense
|
69
|
|
70
|
Deferred tax
benefit
|
(1,022)
|
|
(36)
|
Accretion of discount
on investments
|
(574)
|
|
—
|
Realized gain on
investments
|
—
|
|
(87)
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts receivable,
net
|
(4,676)
|
|
(6,139)
|
Prepaid expenses and
other assets
|
(4,198)
|
|
(1,586)
|
Deferred contract
acquisition costs
|
(747)
|
|
(586)
|
Accounts
payable
|
9
|
|
(295)
|
Accrued expenses and
other liabilities
|
(9,444)
|
|
(6,796)
|
Tax receivable
agreement liability
|
(1,840)
|
|
105
|
Net cash provided by
operating activities
|
10,037
|
|
7,935
|
INVESTING
ACTIVITIES
|
|
|
|
Purchases of property
and equipment
|
(1,438)
|
|
(1,717)
|
Purchases of
available-for-sale investments
|
(31,898)
|
|
(34,161)
|
Proceeds from sale of
available-for-sale investments
|
—
|
|
1,990
|
Proceeds from
maturities of investments
|
21,536
|
|
1,242
|
Net cash used in
investing activities
|
(11,800)
|
|
(32,646)
|
FINANCING
ACTIVITIES
|
|
|
|
Proceeds from exercise
of options
|
104
|
|
2,693
|
Taxes paid related to
net share settlement of equity awards
|
(28,774)
|
|
(7,275)
|
Repayments of
borrowings
|
(687)
|
|
(687)
|
Payment of business
acquisition holdback liability
|
(780)
|
|
—
|
Payment of tax
distributions
|
(8)
|
|
—
|
Net cash used in
financing activities
|
(30,145)
|
|
(5,269)
|
Effect of exchange rate
changes on cash and cash equivalents
|
(213)
|
|
101
|
Change in cash and cash
equivalents during the period
|
(32,121)
|
|
(29,879)
|
Cash and cash
equivalents, beginning of period
|
221,765
|
|
250,724
|
Cash and cash
equivalents, end of period
|
$
189,644
|
|
$
220,845
|
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION
|
|
|
|
Cash paid for
interest
|
$
911
|
|
$
1,350
|
Cash paid for income
taxes
|
$
445
|
|
$
309
|
NON-CASH INVESTING
AND FINANCING ACTIVITIES
|
|
|
|
Purchase of property
and equipment included in accounts payable and accrued
expense
|
$
83
|
|
$
209
|
Tax distributions
payable to Continuing Equity Owners included in accrued
expenses
|
$
2,433
|
|
$
2,834
|
Clearwater Analytics
Holdings, Inc.
Reconciliation of
Net Loss to Adjusted EBITDA
(In thousands,
unaudited)
|
|
|
Three Months Ended
March 31,
|
|
2024
|
|
2023
|
|
(in thousands,
except percentages)
|
Net income
(loss)
|
$
2,236
|
|
2 %
|
|
$
(5,417)
|
|
(6 %)
|
Adjustments:
|
|
|
|
|
|
|
|
Interest income,
net
|
(2,060)
|
|
(2 %)
|
|
(1,356)
|
|
(2 %)
|
Depreciation and
amortization
|
2,550
|
|
2 %
|
|
2,449
|
|
3 %
|
Equity-based
compensation expense and related payroll taxes
|
28,481
|
|
28 %
|
|
24,507
|
|
29 %
|
Tax receivable
agreement expense
|
286
|
|
0 %
|
|
105
|
|
0 %
|
Transaction
expenses
|
802
|
|
1 %
|
|
1,293
|
|
2 %
|
Other (benefit)
expenses(1)
|
(93)
|
|
0 %
|
|
960
|
|
1 %
|
Adjusted
EBITDA
|
32,202
|
|
31 %
|
|
22,541
|
|
27 %
|
Revenue
|
$
102,719
|
|
100 %
|
|
$
84,606
|
|
100 %
|
(1)
|
Other (benefit)
expenses include management fees to our investors, provision for
income taxes, 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
March 31,
|
|
2024
|
|
2023
|
|
(in
thousands)
|
Amortization of prepaid
management fees and reimbursable expenses
|
535
|
|
615
|
Provision for income
taxes
|
(98)
|
|
264
|
Other (income) expense,
net
|
(530)
|
|
81
|
Total other
expenses
|
$
(93)
|
|
$
960
|
Clearwater Analytics
Holdings, Inc.
Reconciliation of
Free Cash Flow
(In thousands,
unaudited)
|
|
|
Three Months Ended
March 31,
|
|
2024
|
|
2023
|
Net cash provided by
operating activities
|
$
10,037
|
|
$
7,935
|
Less: Purchases of
property and equipment
|
1,438
|
|
1,717
|
Free Cash
Flow
|
$
8,599
|
|
$
6,218
|
Clearwater Analytics
Holdings, Inc.
Reconciliation of
Non-GAAP Information
(In thousands,
except share amounts and per share amounts,
unaudited)
|
|
|
Three Months Ended
March 31,
|
|
2024
|
|
2023
|
Revenue
|
$ 102,719
|
|
$
84,606
|
|
|
|
|
Gross profit
|
$
74,541
|
|
$
59,781
|
Adjustments:
|
|
|
|
Equity-based
compensation expense and related payroll taxes
|
3,522
|
|
2,475
|
Depreciation and
amortization
|
2,102
|
|
1,964
|
Gross profit,
non-GAAP
|
$
80,165
|
|
$
64,220
|
As a percentage of
revenue, non-GAAP
|
78 %
|
|
76 %
|
|
|
|
|
Cost of
Revenue
|
$
28,178
|
|
$
24,825
|
Adjustments:
|
|
|
|
Equity-based
compensation expense and related payroll taxes
|
3,522
|
|
2,475
|
Depreciation and
amortization
|
2,102
|
|
1,964
|
Cost of revenue,
non-GAAP
|
$
22,554
|
|
$
20,386
|
As a percentage of
revenue, non-GAAP
|
22 %
|
|
24 %
|
|
|
|
|
Research and
development
|
$
37,676
|
|
$
28,100
|
Adjustments:
|
|
|
|
Equity-based
compensation expense and related payroll taxes
|
11,874
|
|
5,119
|
Depreciation and
amortization
|
201
|
|
288
|
Research and
development, non-GAAP
|
$
25,601
|
|
$
22,693
|
As a percentage of
revenue, non-GAAP
|
25 %
|
|
27 %
|
|
|
|
|
Sales and
marketing
|
$
16,311
|
|
$
14,698
|
Adjustments:
|
|
|
|
Equity-based
compensation expense and related payroll taxes
|
4,169
|
|
4,325
|
Depreciation and
amortization
|
135
|
|
153
|
Sales and marketing,
non-GAAP
|
$
12,007
|
|
$
10,220
|
As a percentage of
revenue, non-GAAP
|
12 %
|
|
12 %
|
|
|
|
|
General and
administrative
|
$
20,720
|
|
$
23,306
|
Adjustments:
|
|
|
|
Equity-based
compensation expense and related payroll taxes
|
8,916
|
|
12,588
|
Depreciation and
amortization
|
112
|
|
44
|
Amortization of
prepaid management fees and reimbursable expenses
|
535
|
|
615
|
Transaction
expenses
|
802
|
|
1,293
|
General and
administrative, non-GAAP
|
$
10,355
|
|
$
8,766
|
As a percentage of
revenue, non-GAAP
|
10 %
|
|
10 %
|
|
|
|
|
Loss from
operations
|
$
(166)
|
|
$
(6,323)
|
Adjustments:
|
|
|
|
Equity-based
compensation expense and related payroll taxes
|
28,481
|
|
24,507
|
Depreciation and
amortization
|
2,550
|
|
2,449
|
Amortization of
prepaid management fees and reimbursable expenses
|
535
|
|
615
|
Transaction
expenses
|
802
|
|
1,293
|
Income from operations,
non-GAAP
|
$
32,202
|
|
$
22,541
|
As a percentage of
revenue, non-GAAP
|
31 %
|
|
27 %
|
|
|
|
|
Net income
(loss)
|
$
2,236
|
|
$
(5,417)
|
Adjustments:
|
|
|
|
Equity-based
compensation expense and related payroll taxes
|
28,481
|
|
24,507
|
Depreciation and
amortization
|
2,550
|
|
2,449
|
Tax receivable
agreement expense
|
286
|
|
105
|
Amortization of
prepaid management fees and reimbursable expenses
|
535
|
|
615
|
Transaction
expenses
|
802
|
|
1,293
|
Tax impacts of
adjustments to net income (loss)(1)
|
(8,698)
|
|
(5,954)
|
Net income,
non-GAAP
|
$
26,192
|
|
$
17,598
|
As a percentage of
revenue, non-GAAP
|
25 %
|
|
21 %
|
|
|
|
|
Net income per share -
basic, non-GAAP
|
$
0.12
|
|
$
0.09
|
Net income per share -
diluted, non-GAAP
|
$
0.10
|
|
$
0.07
|
|
|
|
|
Weighted-average common
shares outstanding - basic
|
213,259,463
|
|
192,993,574
|
Weighted-average common
shares outstanding - diluted
|
255,458,196
|
|
252,378,797
|
|
|
(1)
|
The non-GAAP effective
tax rate was 25% for the three months ended March 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.
|
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SOURCE Clearwater Analytics Holdings, Inc.