Clearwater Analytics (CWAN) came out with quarterly earnings of $0.13 per share, beating the Zacks Consensus Estimate of $0.12 per share. This compares to earnings of $0.10 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 8.33%. A quarter ago, it was expected that this automated investment accounting software developer would post earnings of $0.11 per share when it actually produced earnings of $0.13, delivering a surprise of ...

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $126.9 million, representing a year-on-year growth of 23.5% [4][29] - Annualized recurring revenue (ARR) reached $493.9 million, up 22.7% year-on-year [5][30] - Adjusted EBITDA was $45.1 million, accounting for 35.5% of revenue, with a year-on-year growth of 40% [5][31] - Gross margin improved to 78.9%, up from 75.1% in FY 2022, exceeding expectations [13][30] Business Line Data and Key Metrics Changes - The company has maintained over 20% revenue growth for the past six years, with a win rate of 80% and a gross revenue retention rate (GRR) of over 98% [9][10] - The launch of a commercial contract restructuring program in 2022 has helped dampen revenue downside during AUM declines while retaining revenue upside during AUM growth [10] Market Data and Key Metrics Changes - The company has secured significant wins in Europe, including a leading German insurance company, which validates its expansion strategy [18] - A global asset manager expanded its partnership to include additional solutions, demonstrating strong cross-sell momentum [18] Company Strategy and Development Direction - The strategic acquisitions of Infusion, Beacon, and Bistro aim to create a fully cloud-native investment platform that integrates front, middle, and back office operations [19][20] - The company plans to implement a three-phase roadmap focusing on maximizing standalone business potential, cross-selling, and developing a unified platform [23][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute and drive growth despite market complexities [5][16] - The company is focused on client satisfaction and operational efficiency, which are seen as key to improving profitability [12][31] Other Important Information - The company expects to achieve a 20% growth rate, with a 50 basis point gross margin improvement and a 200 basis point EBITDA expansion per year [27] - The integration of operations and client servicing teams under common leadership is expected to enhance efficiency [14] Q&A Session Summary Question: Thoughts on future growth rates and margin pacing - Management reiterated a commitment to 20% growth for Clearwater and Beacon, with expectations for Infusion to improve from 13% growth [46][47] Question: Demand outlook and macroeconomic impact - Management noted that Q1 revenue was solid and that they have not seen significant negative impacts from recent market turmoil [58][60] Question: Synergies from acquisitions - Management confirmed expectations for $20 million in cost synergies and improvements in gross margin over the next two years [66] Question: Organic growth expectations - Management provided guidance indicating that organic growth for Clearwater would remain above 20%, with contributions from acquisitions factored in [84][87] Question: Insights on Infusion's pricing and customer conversations - Management indicated a strong receptivity to developing a stable commercial model for Infusion, aiming for consistent growth [79][80]

Clearwater Analytics Announces First Quarter 2025 Financial Results Record Quarterly Revenue of $126.9 Million, Up 24% Year-Over-Year Annualized Recurring Revenue of $493.9 Million, Up 23% Year-Over-Year Gross Revenue Retention Rate of 98%; Net Revenue Retention Rate of 114% Net Income of $6.9 Million Adjusted EBITDA of $45.1 Million, Up 40% Year-Over-Year BOISE, Idaho — April 30, 2025 — Clearwater Analytics Holdings, Inc. (NYSE: CWAN) ("Clearwater Analytics" or the "Company"), the most comprehensive techno ...

Financial Performance - Total revenue for 2024 reached $451.8 million, a 22.7% increase from $368.2 million in 2023[360]. - Gross profit for 2024 was $328.8 million, up 25.9% from $261.0 million in 2023[360]. - Net income for 2024 was $427.6 million, compared to a net loss of $23.1 million in 2023[360]. - Comprehensive income for 2024 was $423.1 million, compared to a loss of $20.3 million in 2023[362]. - Basic net earnings per share for 2024 were $1.93, a recovery from a loss of $0.11 per share in 2023[360]. - Employee compensation expense increased to $208.4 million in 2024, up from $184.7 million in 2023, reflecting a 12.7% rise[492]. - Consolidated net income for 2024 was $427.6 million, a significant recovery from a net loss of $23.1 million in 2023[492]. Assets and Liabilities - As of December 31, 2024, the total assets loaded on the platform reached $8.8 trillion, up from $7.3 trillion in 2023, indicating a significant growth in asset management[19]. - Total assets as of December 31, 2024, were $1.17 billion, significantly up from $558.7 million in 2023[358]. - The company reported a debt balance of $46.1 million under the Credit Agreement, with a potential interest expense fluctuation of approximately $0.2 million for a hypothetical 100 basis points change in the Secured Overnight Financing Rate (SOFR)[332]. - The company’s net carrying amount of debt as of December 31, 2024, was $45.914 million, with future maturities of $2.750 million due in 2025 and $43.313 million in 2026[460]. - Total stockholders' equity attributable to Clearwater Analytics Holdings, Inc. increased to $1.01 billion in 2024, compared to $354.3 million in 2023[358]. Tax and Deferred Assets - Deferred tax assets related to the investment in partnership amounted to $514 million as of December 31, 2024, reflecting the company's strategic financial positioning[344]. - The company reported a total of $625.1 million in deferred tax assets as of December 31, 2024, compared to $512.9 million in 2023[499]. - The valuation allowance decreased by $493 million during 2024, primarily due to the release of the valuation allowance on most U.S. federal and state deferred tax assets[501]. - The effective tax rate for 2024 was 1,522.3%, significantly impacted by the release of the majority of the valuation allowance on U.S. deferred tax assets[497]. Revenue Recognition and Deferred Revenue - The Company recognizes revenue from professional services on a time and materials basis as services are delivered[392]. - Deferred revenue consists of non-refundable fees invoiced during the period in which the Company is performing set-up activities for the SaaS solution[397]. - The company’s deferred revenue increased significantly to $7.329 million in 2024 from $2.766 million in 2023, marking a growth of about 164.5%[453]. - For the year ended December 31, 2024, $2.4 million of total revenue was included in the deferred revenue balance as of December 31, 2023, related to the company's SaaS solution[439]. Acquisitions and Growth - The company completed the acquisition of Wilshire Technology for a total purchase consideration of $40.1 million in cash on April 22, 2024, which includes goodwill of $28.24 million attributed to expected post-acquisition synergies[443][445]. - The company entered into a merger agreement to acquire Enfusion, Inc. for approximately $1.5 billion, expected to close in Q2 2025, subject to shareholder and regulatory approvals[517][518]. - A senior secured term loan B facility of $800 million was completed to finance part of the cash consideration for the Enfusion acquisition, with an interest rate based on SOFR plus 2.25%[519]. Operational Challenges - The company faces prolonged sales cycles and substantial upfront sales costs when targeting large financial institutions, which may affect revenue predictability[16]. - The company relies heavily on fees based on the value of assets on its platform, making it vulnerable to market volatility and economic downturns[16]. - Rising inflation has impacted operations in India, although it has not materially affected the overall business performance as of now[333]. Internal Controls and Audit Matters - The company maintains effective internal control over financial reporting as of December 31, 2024, according to the independent auditor's opinion[351]. - The evaluation of deferred tax assets is considered a critical audit matter, requiring complex judgment and specialized knowledge[345]. Stock and Equity - The company issued 291,266 shares under the Employee Stock Purchase Plan (ESPP), generating $4,693,000 in additional capital[365]. - The total paid-in capital increased to $725,174,000 as of December 31, 2024, up from $532,507,000 in 2023[365]. - The total number of shares outstanding as of December 31, 2023, was 212,857,580, reflecting significant growth from the previous year[365]. - The Company granted 4.1 million RSUs in 2024, with a weighted average grant date fair value of $20.02[477]. Research and Development - Research and development expenses increased to $150.6 million in 2024, a 21.5% rise from $123.9 million in 2023[360]. - Research and development costs consist of personnel expenses, including salaries and benefits, for employees engaged in the design and development of the Company's offerings[415].

Following my coverage on Clearwater Analytics Holdings (NYSE: CWAN ) in December, which I recommended a buy rating due to my expectation that growth can continue to accelerate back to mid-20%, which will support valuation to stay >13x forwardI take a fundamentals-based approach to value investing.I disagree with the common misconception held by many investors that low multiple stocks must be cheap. I look for companies that offer the best long-term durability at the most affordable prices. Consequently, I h ...

Clearwater Analytics (CWAN) came out with quarterly earnings of $0.13 per share, beating the Zacks Consensus Estimate of $0.11 per share. This compares to earnings of $0.10 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 18.18%. A quarter ago, it was expected that this automated investment accounting software developer would post earnings of $0.11 per share when it actually produced earnings of $0.12, delivering a surprise of ...

Exhibit 99.1 Clearwater Analytics Announces Fourth Quarter and Full Year 2024 Financial Results 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 BOISE, Idaho — February 19, 2025 — Clearwater Analytics Holdings, Inc. (NYSE: CWAN) ("Clearwater Analytics" or the "Company"), a leading worldwide provider of S ...

Clearwater Analytics (CWAN) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Since a ch ...

Here are two stocks with buy rank and strong momentum characteristics for investors to consider today, January 3rd:Surmodics, Inc. (SRDX) : This company that provides performance coating technologies for the medical sector has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 18.8% over the last 60 days.Surmodics’ shares gained 3.3% over the last three months compared with the S&P 500’s advance of 2.3%. The company possesses a Momentum Score  of A.Clearwater ...

Following my coverage on Clearwater Analytics Holdings (NYSE: CWAN ) in August, where I recommended a buy rating given the better growth outlook, this post is to provide an update on my thoughts on the business and stock. CWAN hasI take a fundamentals-based approach to value investing.I disagree with the common misconception held by many investors that low multiple stocks must be cheap. I look for companies that offer the best long-term durability at the most affordable prices. Consequently, I have a propen ...