Clearwater Analytics (US:CWAN)2022-08-04 16:00Financial Performance - Total revenue for Q2 2022 reached $73,409,000, a 20.5% increase from $60,876,000 in Q2 2021[20] - Gross profit for the six months ended June 30, 2022, was $102,096,000, compared to $87,872,000 for the same period in 2021, reflecting a 16.2% growth[20] - The company reported a comprehensive loss of $3,180,000 for Q2 2022, compared to a comprehensive loss of $216,000 for Q2 2021[22] - For the six months ended June 30, 2022, the company reported a net loss of $1.702 billion compared to a net income of $3.2 million for the same period in 2021[27] - Adjusted EBITDA for the three months ended June 30, 2022, was $19.074 million, representing 26% of revenue[82] Expenses - Operating expenses for Q2 2022 totaled $51,363,000, up from $36,738,000 in Q2 2021, representing a 39.7% increase[20] - Research and development expenses for the six months ended June 30, 2022, were $44,130,000, up from $32,576,000 in the same period of 2021, reflecting a 35.5% increase[20] - Cost of revenue for the three months ended June 30, 2022, was $20.9 million, a 34% increase from $15.6 million in the same period of 2021[89] - General and administrative expenses increased by 38% to $15.5 million for the three months ended June 30, 2022, compared to $11.2 million in the same period of 2021[98] Cash and Assets - Cash and cash equivalents increased to $278,646,000 as of June 30, 2022, from $254,597,000 at the end of 2021, marking a 9.5% rise[18] - Total assets grew to $400,645,000 as of June 30, 2022, compared to $344,355,000 at the end of 2021, indicating a 16.4% increase[18] - Accounts receivable, net, as of June 30, 2022, was $55.6 million, an increase from $50.2 million as of December 31, 2021[42] - Net cash provided by operating activities was $25.167 million, a significant improvement from a net cash used of $16.352 million in the prior year[27] Liabilities - Total liabilities increased to $101,420,000 as of June 30, 2022, from $82,487,000 at the end of 2021, a rise of 23%[18] - The company has recorded a TRA liability of $3.1 million as of June 30, 2022, reflecting its taxable income projections for the current year[63] Stock and Equity - The weighted average shares of Class A and Class D common stock outstanding for Q2 2022 were 185,781,262, compared to 182,085,548 for the same period in 2021[20] - The total stockholders' equity at March 31, 2022, was $261,868,000, reflecting a significant increase from previous periods[24] - The balance of additional paid-in capital was $420,123,000 as of June 30, 2022, indicating ongoing capital contributions[25] Revenue Growth - Revenue from the United States for the three months ended June 30, 2022, was $62.1 million, up from $55.8 million in the prior year, representing a 11.5% growth[39] - Total revenue for the six months ended June 30, 2022, reached $144.2 million, compared to $117.8 million for the same period in 2021, marking a 22.5% increase[39] - International revenue grew to 15% and 14% of total revenues for the three and six months ended June 30, 2022, respectively, compared to 8% and 9% in the same periods of 2021[90] Client Metrics - The company has maintained a gross revenue retention rate of approximately 98% over the past fourteen quarters, indicating strong client retention[71] - The net revenue retention rate was 104% as of June 30, 2022, reflecting a 4% year-over-year growth in clients on the platform[76] - Average assets billed to new and existing clients increased by 16% and 18% for the three and six months ended June 30, 2022, respectively[88] Taxation - Clearwater's effective tax rate for the six months ended June 30, 2022, was (45.8%), significantly influenced by foreign taxes and equity-based compensation[62] - The provision for income taxes for the three months ended June 30, 2022, was $298 million, resulting in an effective tax rate of (15.4%) compared to 424.6% in the same period of 2021[62] Strategic Initiatives - The company aims to add new clients in established end markets, focusing on larger and more sophisticated clients to drive revenue growth[70] - The company plans to invest more in sales and marketing in international markets to enhance brand awareness and client acquisition, as current costs are higher compared to North America[71] Accounting and Compliance - The company has not experienced any material changes in critical accounting policies and estimates compared to the previous annual report[108] - The company is classified as an emerging growth company, allowing it to utilize an extended transition period for compliance with new accounting standards[109]