Record Quarterly Revenue of $89.9 Million, Up 22% Year-Over-Year
Adjusted EBITDA of $24.8 Million, Up
30% Year-Over-Year
Annualized Recurring Revenue of $349.5 Million, Up 20% Year-Over-Year
Gross Revenue Retention Rate of 98%; Net
Revenue Retention Rate of 109%
BOISE, Idaho, Aug. 2, 2023 /PRNewswire/ -- Clearwater
Analytics Holdings, Inc. (NYSE: CWAN) ("Clearwater
Analytics" or the "Company"), a leading provider of SaaS-based
investment management, accounting, reporting, and analytics
solutions, today announced its financial results for the quarter
ended June 30, 2023.
"I'm very pleased with our re-acceleration of growth while
simultaneously improving the bottom line. As we expected, we
continue to have success onboarding our large insurance clients and
asset managers, enabling them to go live while supporting their
growth initiatives. Our strong execution delivered outstanding
growth across our key markets," said Sandeep Sahai, Chief Executive Officer. "Last
year we started a journey towards an enhanced commercial model and
movement to a multi-product platform. These actions are starting to
bear fruit and contributed to a strong net revenue retention rate
for the quarter."
Second Quarter 2023 Financial Results Summary
- Revenue: Total revenue for the second quarter of
2023 reached $89.9 million, an
increase of 22.4%, from $73.4 million
in the second quarter of 2022.
- Gross Profit: Gross profit for the second quarter of
2023 was $62.9 million, compared with
$52.5 million in the second quarter
of 2022. Non-GAAP gross profit for the second quarter of 2023 was
$68.1 million, which equates to a
75.8% non-GAAP gross margin.
- Net Income/(Loss): Net loss for the second quarter
of 2023 was $11.9 million compared
with net loss of $2.2 million in the
second quarter of 2022. Net loss for the second quarter included
total equity-based compensation expense and related payroll taxes
of $28.7 million, including
$5.5 million related to the JUMP
Technology acquisition, which closed in the fourth quarter of 2022.
Non-GAAP net income for the second quarter of 2023 increased by
50.9% to $20.0 million from
$13.3 million in the second quarter
of 2022.
- Adjusted EBITDA: Adjusted EBITDA for the
second quarter of 2023 was $24.8
million, an increase of 30.2%, from $19.1 million in the second quarter of 2022.
Adjusted EBITDA margin for the second quarter of 2023 was
27.6%.
- Cash Flows: Operating cash flows for the second
quarter were $21.1 million. Free cash
flows for the second quarter of 2023 increased by 18.5% to
$19.6 million from $16.5 million in the second quarter of
2022.
- Net Loss Per Share and Non-GAAP Net Income Per Share
attributable to Clearwater Analytics Holdings, Inc.: Net
loss per basic and diluted share was $0.06 in the second quarter of 2023.
Non-GAAP net income per basic share was $0.10, and non-GAAP net income per diluted share
was $0.08 in the second quarter of
2023.
- Cash, cash equivalents, and investments were
$277.8 million as of June 30, 2023. Total debt, net of debt
issuance cost, was $49.3 million as
of June 30, 2023.
Second Quarter 2023 Key Metrics Summary
- Annualized Recurring Revenue: As of June 30, 2023, annualized recurring revenue
("ARR") reached $349.5 million, an
increase of 20.4% from $290.4 million
as of June 30, 2022.
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 June 30, 2023, the gross revenue retention rate
was 98%, an increase from 97% as of March
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 June 30, 2023, the net revenue retention rate was
109%, an increase from 106% as of March 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
- Clearwater Analytics and J.P. Morgan Asset Management
announced a strategic partnership to integrate Clearwater with the MORGAN MONEY® global
trading platform, allowing permissioned users to easily navigate
between both systems. The joint solution will make it easier for
financial professionals to have a global, connected view of their
investment portfolios and empower them to make real-time investment
decisions on the Clearwater and
Morgan Money platforms.
- Clearwater Analytics announced that Aviva, one of the UK's
leading insurance, wealth and retirement businesses with operations
in the UK, Ireland and
Canada, went live April 1, 2023, on the Clearwater platform as the comprehensive
solution for its investment accounting operations and regulatory
reporting. Additional go lives in Q2 included: Amica Mutual
Insurance, Greenwich Investment Management, and Highmark Health, to
name a few.
- In the second quarter, the Company expanded its footprint
within existing clients and added marquee clients such as Apollo
Syndicate, Covenant Capital, Delta Dental of Wyoming, Finance Incorporated
Limited, Intellia Therapeutics, Medical Protection Society
Limited, Omnicap Group LLC, Viridian Therapeutics, Inc., and
Western Asset Mortgage Capital Corporation.
- The Company executed on several Clearwater JUMP sales,
including the use of JUMP for front-office and Clearwater accounting and reporting for
back-office, demonstrating the value of our end-to-end platform. In
addition, the Company closed a significant deal with a French
insurer to support their unit-linked funds.
- Clearwater Analytics was named in the 2023 FinTech Global
WealthTech100, a list that helps investment firms, private banks,
and financial advisors identify the most innovative technology.
- Clearwater
established Clearwater-GPT, making a strong commitment to the
emerging technology of generative AI with dedicated engineering
teams driving innovation to accelerate growth and improve
operational efficiency.
- On the heels of our largest Clearwater Connect users'
conference in London in the second
quarter, the Company plans to host another Clearwater Connect in
Boise on September 20-21, 2023, where current and
prospective users will have the opportunity to significantly
enhance their knowledge of the world's most comprehensive
investment accounting solution.
|
Third Quarter and
Full Year 2023 Guidance
|
|
|
Third Quarter
2023
|
|
Full Year
2023
|
|
Revenue
|
$92 million
|
|
$364 million to $366
million
|
|
Year-over-Year Growth
%
|
~20%
|
|
~20% to 21%
|
|
Adjusted
EBITDA
|
$25.5
million
|
|
$100 million
|
|
Equity-based
compensation expense and related payroll taxes
|
|
|
~$80 million
|
|
Equity-based
compensation expense related to JUMP Technology
acquisition
|
|
|
~$25 million
|
|
Depreciation and
Amortization
|
|
|
~$9 million
|
|
Non-GAAP effective tax
rate
|
|
|
25 %
|
|
Diluted non-GAAP share
count
|
|
|
~255 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
August 2, 2023, at 5:00 p.m. Eastern time to discuss second quarter
2023 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
$6.4 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, 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,
risk factors related to the Company's acquisition of JUMP
Technology, including the Company's ability to (i) successfully
integrate the operations and technology of JUMP Technology with
those of the Company, (ii) retain and incentivize the management of
JUMP Technology, and (iii) retain the clients of JUMP Technology,
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, 2022 filed on
March 3, 2023, 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)
|
|
|
June
30
|
|
December
31
|
|
2023
|
|
2022
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
190,216
|
|
$
250,724
|
|
Short-term
investments
|
63,318
|
|
4,890
|
|
Accounts receivable,
net
|
82,690
|
|
72,575
|
|
Prepaid expenses and
other current assets
|
29,129
|
|
28,157
|
|
Total current
assets
|
365,353
|
|
356,346
|
|
Property and equipment,
net
|
15,431
|
|
15,064
|
|
Operating lease
right-of-use assets, net
|
24,839
|
|
24,114
|
|
Intangible assets,
net
|
27,742
|
|
29,456
|
|
Goodwill
|
43,621
|
|
43,791
|
|
Long-term
investments
|
24,299
|
|
—
|
|
Deferred contract
costs, non-current
|
5,605
|
|
6,563
|
|
Other non-current
assets
|
4,776
|
|
6,608
|
|
Total assets
|
$
511,666
|
|
$
481,942
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
2,843
|
|
$
3,092
|
|
Accrued expenses and
other current liabilities
|
33,865
|
|
42,119
|
|
Notes payable, current
portion
|
2,750
|
|
2,750
|
|
Operating lease
liability, current portion
|
6,448
|
|
5,851
|
|
Tax receivable
agreement liability, current portion
|
12,200
|
|
12,200
|
|
Total current
liabilities
|
58,106
|
|
66,012
|
|
Notes payable, less
current maturities and unamortized debt issuance costs
|
47,160
|
|
48,492
|
|
Operating lease
liability, less current portion
|
19,535
|
|
19,505
|
|
Tax receivable
agreement liability, less current portion
|
7,000
|
|
—
|
|
Other long-term
liabilities
|
9,139
|
|
9,547
|
|
Total
liabilities
|
140,940
|
|
143,556
|
|
Stockholders'
Equity
|
|
|
|
|
Class A common stock,
par value $0.001 per share; 1,500,000,000 shares authorized,
87,878,876 shares issued and outstanding as of March 31, 2023,
61,148,890 shares issued and
outstanding as of December 31, 2022
|
87
|
|
61
|
|
Class B common stock,
par value $0.001 per share; 500,000,000 shares authorized,
1,402,185
shares issued and outstanding as of March 31, 2023, 1,439,251
shares issued and outstanding
as of December 31, 2022
|
1
|
|
1
|
|
Class C common stock,
par value $0.001 per share; 500,000,000 shares authorized,
39,337,746
shares issued and outstanding as of March 31, 2023, 47,377,587
shares issued and outstanding
as of December 31, 2022
|
39
|
|
47
|
|
Class D common stock,
par value $0.001 per share; 500,000,000 shares authorized,
113,173,596 shares issued and outstanding as of March 31,
2023, 130,083,755 shares issued
and outstanding as of December 31, 2022
|
113
|
|
130
|
|
Additional
paid-in-capital
|
495,444
|
|
455,320
|
|
Accumulated other
comprehensive income
|
1,469
|
|
609
|
|
Accumulated
deficit
|
(189,124)
|
|
(186,647)
|
|
Total stockholders'
equity attributable to Clearwater Analytics Holdings,
Inc.
|
308,029
|
|
269,521
|
|
Non-controlling
interests
|
62,697
|
|
68,865
|
|
Total stockholders'
equity
|
370,726
|
|
338,386
|
|
Total liabilities and
stockholders' equity
|
$
511,666
|
|
$
481,942
|
|
Clearwater Analytics
Holdings, Inc.
|
|
Consolidated
Statements of Operations
|
|
(In thousands,
except share amounts and per share amounts,
unaudited)
|
|
|
Three Months
Ended
June 30,
|
Six Months
Ended
June 30,
|
|
2023
|
|
2022
|
2023
|
|
2022
|
|
Revenue
|
$
89,879
|
|
$
73,409
|
$
174,485
|
|
$
144,187
|
|
Cost of
revenue(1)
|
26,954
|
|
20,919
|
51,779
|
|
42,091
|
|
Gross profit
|
62,925
|
|
52,490
|
122,706
|
|
102,096
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development(1)
|
29,848
|
|
22,836
|
57,948
|
|
44,130
|
|
Sales and
marketing(1)
|
14,331
|
|
13,074
|
29,029
|
|
25,067
|
|
General and
administrative(1)
|
25,871
|
|
15,453
|
49,177
|
|
30,493
|
|
Total operating
expenses
|
70,050
|
|
51,363
|
136,154
|
|
99,690
|
|
Income (loss) from
operations
|
(7,125)
|
|
1,127
|
(13,448)
|
|
2,406
|
|
Interest (income)
expense, net
|
(1,333)
|
|
403
|
(2,689)
|
|
832
|
|
Tax receivable
agreement expense
|
6,573
|
|
3,100
|
6,678
|
|
3,100
|
|
Other income,
net
|
(315)
|
|
(444)
|
(234)
|
|
(359)
|
|
Loss before income
taxes
|
(12,050)
|
|
(1,932)
|
(17,203)
|
|
(1,167)
|
|
Provision for (benefit
from) income taxes
|
(174)
|
|
298
|
90
|
|
535
|
|
Net
loss
|
(11,876)
|
|
(2,230)
|
(17,293)
|
|
(1,702)
|
|
Less: Net income (loss)
attributable to non-controlling
interests
|
(955)
|
|
198
|
(1,988)
|
|
329
|
|
Net loss
attributable to Clearwater Analytics
Holdings, Inc.
|
$
(10,921)
|
|
$
(2,428)
|
$
(15,305)
|
|
$
(2,031)
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to Class A and Class D
common stockholders stock:
|
|
|
|
|
|
|
|
Basic and
diluted
|
$
(0.06)
|
|
$
(0.01)
|
$
(0.08)
|
|
$
(0.01)
|
|
|
|
|
|
|
|
|
Weighted average shares
of Class A and Class D
common stock outstanding:
|
|
|
|
|
|
|
|
Basic and
diluted
|
198,046,275
|
|
185,781,262
|
195,865,881
|
|
182,085,548
|
|
|
(1) Amounts include equity-based
compensation as follows:
|
|
|
Cost of
revenue
|
$
3,248
|
|
$
2,376
|
$
5,491
|
|
$
4,687
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
5,971
|
|
4,565
|
10,626
|
|
8,870
|
|
Sales and
marketing
|
3,246
|
|
3,215
|
7,211
|
|
6,511
|
|
General and
administrative
|
16,105
|
|
6,035
|
28,442
|
|
11,999
|
|
Total equity-based
compensation expense
|
$
28,570
|
|
$
16,191
|
$
51,770
|
|
$
32,067
|
|
Clearwater Analytics
Holdings, Inc.
|
|
Consolidated
Statements of Cash Flows
|
|
(In thousands,
unaudited)
|
|
|
Three Months Ended
June 30, 2023
|
|
Six Months Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
|
|
Net loss
|
$
(11,876)
|
|
$
(2,230)
|
|
$
(17,293)
|
|
$
(1,702)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
2,412
|
|
1,159
|
|
4,860
|
|
2,118
|
|
Noncash operating
lease cost
|
1,917
|
|
1,794
|
|
3,769
|
|
3,334
|
|
Equity-based
compensation
|
28,570
|
|
16,191
|
|
51,770
|
|
32,067
|
|
Change in tax
receivable liability
|
6,895
|
|
3,100
|
|
7,000
|
|
3,100
|
|
Amortization of
deferred contract acquisition costs
|
1,150
|
|
1,103
|
|
2,351
|
|
2,067
|
|
Amortization of debt
issuance costs, included in interest expense
|
69
|
|
69
|
|
139
|
|
138
|
|
Deferred tax expense
benefit
|
(174)
|
|
(508)
|
|
(210)
|
|
(484)
|
|
Accretion of discount
on investments
|
(380)
|
|
—
|
|
(396)
|
|
—
|
|
Realized gain on
investments
|
(18)
|
|
—
|
|
(89)
|
|
—
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
(3,759)
|
|
(2,414)
|
|
(9,898)
|
|
(5,403)
|
|
Prepaid expenses and
other assets
|
1,046
|
|
1,169
|
|
(540)
|
|
55
|
|
Deferred
commissions
|
(701)
|
|
(1,304)
|
|
(1,287)
|
|
(2,115)
|
|
Accounts
payable
|
395
|
|
(76)
|
|
100
|
|
(421)
|
|
Accrued expenses and
other liabilities
|
(4,410)
|
|
200
|
|
(11,204)
|
|
(7,587)
|
|
Net cash provided by
operating activities
|
21,136
|
|
18,253
|
|
29,072
|
|
25,167
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
(1,576)
|
|
(1,742)
|
|
(3,293)
|
|
(3,968)
|
|
Purchase of held to
maturity investments
|
—
|
|
(3,000)
|
|
—
|
|
(3,000)
|
|
Purchases of
available-for-sale investments
|
(57,523)
|
|
—
|
|
(91,684)
|
|
—
|
|
Proceeds from sale of
available-for-sale investments
|
3,960
|
|
—
|
|
5,950
|
|
—
|
|
Proceeds from
maturities of investments
|
2,000
|
|
—
|
|
3,242
|
|
—
|
|
Net cash used in
investing activities
|
(53,139)
|
|
(4,742)
|
|
(85,785)
|
|
(6,968)
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
|
Proceeds from exercise
of options
|
486
|
|
771
|
|
3,179
|
|
6,384
|
|
Taxes paid related to
net share settlement of equity awards
|
(1,172)
|
|
—
|
|
(8,447)
|
|
—
|
|
Repayments of
borrowings
|
(687)
|
|
(688)
|
|
(1,374)
|
|
(1,375)
|
|
Proceeds from employee
stock purchase plan
|
2,595
|
|
2,401
|
|
2,595
|
|
2,401
|
|
Payment of costs
associated with the IPO
|
—
|
|
—
|
|
—
|
|
(214)
|
|
Net cash provided by
(used in) financing activities
|
1,222
|
|
2,484
|
|
(4,047)
|
|
7,196
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
152
|
|
(1,023)
|
|
252
|
|
(1,346)
|
|
Change in cash and cash
equivalents during the period
|
(30,629)
|
|
14,972
|
|
(60,508)
|
|
24,049
|
|
Cash and cash
equivalents, beginning of period
|
220,845
|
|
263,674
|
|
250,724
|
|
254,597
|
|
Cash and cash
equivalents, end of period
|
$
190,216
|
|
$
278,646
|
|
$
190,216
|
|
$
278,646
|
|
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION
|
|
|
|
|
|
|
|
|
Cash paid for
interest
|
$
870
|
|
$
347
|
|
$
2,220
|
|
$
615
|
|
Cash paid for income
taxes
|
$
759
|
|
$
115
|
|
$
1,068
|
|
$
486
|
|
NON-CASH INVESTING
AND FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment included in accounts payable
and accrued expense
|
$
1
|
|
$
—
|
|
$
1
|
|
$
—
|
|
Tax distributions
payable to Continuing Equity Owners included in
accrued expenses
|
$
3,994
|
|
$
976
|
|
$
3,994
|
|
$
976
|
|
Clearwater Analytics
Holdings, Inc.
|
|
Reconciliation of
Net Loss to Adjusted EBITDA
|
|
(In thousands,
unaudited)
|
|
|
Three Months Ended
June 30,
|
|
2023
|
|
2022
|
|
(in thousands,
except percentages)
|
|
Net loss
|
$
(11,876)
|
|
(13 %)
|
|
$
(2,230)
|
|
(3 %)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Interest (income)
expense, net
|
(1,333)
|
|
(1 %)
|
|
403
|
|
1 %
|
|
Depreciation and
amortization
|
2,412
|
|
3 %
|
|
1,159
|
|
2 %
|
|
Equity-based
compensation expense and related
payroll taxes
|
23,162
|
|
26 %
|
|
16,191
|
|
22 %
|
|
Equity-based
compensation expense related to
JUMP acquisition
|
5,523
|
|
6 %
|
|
—
|
|
—
|
|
Tax receivable
agreement expense
|
6,573
|
|
7 %
|
|
3,100
|
|
4 %
|
|
Other
expenses(1)
|
365
|
|
0 %
|
|
451
|
|
1 %
|
|
Adjusted
EBITDA
|
24,826
|
|
28 %
|
|
19,074
|
|
26 %
|
|
Revenue
|
$
89,879
|
|
100 %
|
|
$
73,409
|
|
100 %
|
|
Six Months Ended
June 30,
|
|
2023
|
|
2022
|
|
(in thousands,
except percentages)
|
|
Net loss
|
$
(17,293)
|
|
(10 %)
|
|
$
(1,702)
|
|
(1 %)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Interest (income)
expense, net
|
(2,689)
|
|
(2 %)
|
|
832
|
|
1 %
|
|
Depreciation and
amortization
|
4,860
|
|
3 %
|
|
2,118
|
|
1 %
|
|
Equity-based
compensation expense and related
payroll taxes
|
42,192
|
|
24 %
|
|
32,067
|
|
22 %
|
|
Equity-based
compensation expense related to
JUMP acquisition
|
11,000
|
|
6 %
|
|
—
|
|
—
|
|
Tax receivable
agreement expense
|
6,678
|
|
4 %
|
|
3,100
|
|
2 %
|
|
Other
expenses(1)
|
2,619
|
|
2 %
|
|
1,522
|
|
1 %
|
|
Adjusted
EBITDA
|
47,367
|
|
27 %
|
|
37,937
|
|
26 %
|
|
Revenue
|
$
174,485
|
|
100 %
|
|
$
144,187
|
|
100 %
|
|
|
(1)
Other expenses includes management fees to our investors, 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, and transaction expenses including legal, accounting,
and other expenses related to the Secondary
Offering.
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(in
thousands)
|
|
|
|
|
|
Up-C structure
expenses
|
$
—
|
|
$
—
|
|
$
—
|
|
$
158
|
|
Transaction
expenses
|
257
|
|
—
|
|
1,550
|
|
—
|
|
Amortization of prepaid
management fees and
reimbursable expenses
|
597
|
|
597
|
|
1,213
|
|
1,188
|
|
Provision for (benefit
from) income tax expense
|
(174)
|
|
298
|
|
90
|
|
535
|
|
Other income,
net
|
(315)
|
|
(444)
|
|
(234)
|
|
(359)
|
|
Total other
expenses
|
$
365
|
|
$
451
|
|
$
2,619
|
|
$
1,522
|
|
Clearwater Analytics
Holdings, Inc.
|
|
Reconciliation of
Free Cash Flow
|
|
(In thousands,
unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Net cash provided by
operating activities
|
$
21,136
|
|
$
18,253
|
|
$
29,072
|
|
$
25,167
|
|
Less: Purchases of
property and equipment
|
1,576
|
|
1,742
|
|
3,293
|
|
3,968
|
|
Free Cash
Flow
|
$
19,560
|
|
$
16,511
|
|
$
25,779
|
|
$
21,199
|
|
Clearwater Analytics
Holdings, Inc.
|
|
Reconciliation of
Non-GAAP Information
|
|
(In thousands,
except share amounts and per share amounts,
unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Revenue
|
$
89,879
|
|
$
73,409
|
|
$ 174,485
|
|
$ 144,187
|
|
|
|
|
|
|
|
|
|
Gross profit
|
$
62,925
|
|
$
52,490
|
|
$ 122,706
|
|
$ 102,096
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Equity-based
compensation expense and related
payroll taxes
|
3,260
|
|
2,376
|
|
5,735
|
|
4,687
|
|
Depreciation and
amortization
|
1,930
|
|
728
|
|
3,903
|
|
1,334
|
|
Gross profit,
non-GAAP
|
$
68,115
|
|
$
55,594
|
|
$ 132,344
|
|
$ 108,117
|
|
As a percentage of
revenue, non-GAAP
|
76 %
|
|
76 %
|
|
76 %
|
|
75 %
|
|
|
|
|
|
|
|
|
|
Cost of
Revenue
|
$
26,954
|
|
$
20,919
|
|
$
51,779
|
|
$
42,091
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Equity-based
compensation expense and related
payroll taxes
|
3,260
|
|
2,376
|
|
5,735
|
|
4,687
|
|
Depreciation and
amortization
|
1,930
|
|
728
|
|
3,903
|
|
1,334
|
|
Cost of revenue,
non-GAAP
|
$
21,764
|
|
$
17,815
|
|
$
42,141
|
|
$
36,070
|
|
As a percentage of
revenue, non-GAAP
|
24 %
|
|
24 %
|
|
24 %
|
|
25 %
|
|
|
|
|
|
|
|
|
|
Research and
development
|
$
29,848
|
|
$
22,836
|
|
$
57,948
|
|
$
44,130
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Equity-based
compensation expense and related
payroll taxes
|
5,684
|
|
4,565
|
|
10,448
|
|
8,870
|
|
Equity-based
compensation expense related to
JUMP acquisition
|
344
|
|
—
|
|
699
|
|
—
|
|
Depreciation and
amortization
|
253
|
|
258
|
|
531
|
|
482
|
|
Research and
development, non-GAAP
|
$
23,567
|
|
$
18,013
|
|
$
46,270
|
|
$
34,778
|
|
As a percentage of
revenue, non-GAAP
|
26 %
|
|
25 %
|
|
27 %
|
|
24 %
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
$
14,331
|
|
$
13,074
|
|
$
29,029
|
|
$
25,067
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Equity-based
compensation expense and related
payroll taxes
|
3,262
|
|
3,215
|
|
7,587
|
|
6,511
|
|
Equity-based
compensation expense related to
JUMP acquisition
|
—
|
|
—
|
|
—
|
|
—
|
|
Depreciation and
amortization
|
145
|
|
66
|
|
298
|
|
132
|
|
Sales and marketing,
non-GAAP
|
$
10,924
|
|
$
9,793
|
|
$
21,144
|
|
$
18,424
|
|
As a percentage of
revenue, non-GAAP
|
12 %
|
|
13 %
|
|
12 %
|
|
13 %
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
$
25,871
|
|
$
15,453
|
|
$
49,177
|
|
$
30,493
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Equity-based
compensation expense and related
payroll taxes
|
10,956
|
|
6,035
|
|
18,422
|
|
11,999
|
|
Equity-based
compensation expense related to
JUMP acquisition
|
5,179
|
|
—
|
|
10,301
|
|
—
|
|
Depreciation and
amortization
|
84
|
|
107
|
|
128
|
|
170
|
|
Amortization of
prepaid management fees and
reimbursable expenses
|
597
|
|
597
|
|
1,213
|
|
1,188
|
|
Transaction
expenses
|
257
|
|
—
|
|
1,550
|
|
—
|
|
Up-C structure
expenses
|
—
|
|
—
|
|
—
|
|
158
|
|
General and
administrative, non-GAAP
|
$
8,798
|
|
$
8,714
|
|
$
17,563
|
|
$
16,978
|
|
As a percentage of
revenue, non-GAAP
|
10 %
|
|
12 %
|
|
10 %
|
|
12 %
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
$
(7,125)
|
|
$
1,127
|
|
$ (13,448)
|
|
$
2,406
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Equity-based
compensation expense and related
payroll taxes
|
23,162
|
|
16,191
|
|
42,192
|
|
32,067
|
|
Equity-based
compensation expense related to
JUMP acquisition
|
5,523
|
|
—
|
|
11,000
|
|
—
|
|
Depreciation and
amortization
|
2,412
|
|
1,159
|
|
4,860
|
|
2,118
|
|
Amortization of
prepaid management fees and
reimbursable expenses
|
597
|
|
597
|
|
1,213
|
|
1,188
|
|
Transaction
expenses
|
257
|
|
—
|
|
1,550
|
|
—
|
|
Up-C structure
expenses
|
—
|
|
—
|
|
—
|
|
158
|
|
Income from operations,
non-GAAP
|
$
24,826
|
|
$
19,074
|
|
$
47,367
|
|
$
37,937
|
|
As a percentage of
revenue, non-GAAP
|
28 %
|
|
26 %
|
|
27 %
|
|
26 %
|
|
|
|
|
|
|
|
|
|
Net loss
|
$ (11,876)
|
|
$
(2,230)
|
|
$ (17,293)
|
|
$
(1,702)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Equity-based
compensation expense and related
payroll taxes
|
23,162
|
|
16,191
|
|
42,192
|
|
32,067
|
|
Equity-based
compensation expense related to
JUMP acquisition
|
5,523
|
|
—
|
|
11,000
|
|
—
|
|
Depreciation and
amortization
|
2,412
|
|
1,159
|
|
4,860
|
|
2,118
|
|
Tax receivable
agreement expense
|
6,573
|
|
3,100
|
|
6,678
|
|
3,100
|
|
Amortization of
prepaid management fees and
reimbursable expenses
|
597
|
|
597
|
|
1,213
|
|
1,188
|
|
Transaction
expenses
|
257
|
|
—
|
|
1,550
|
|
—
|
|
Up-C structure
expenses
|
—
|
|
—
|
|
—
|
|
158
|
|
Tax impacts of
adjustments to net loss(1)
|
(6,619)
|
|
(5,543)
|
|
(12,570)
|
|
(10,865)
|
|
Net income,
non-GAAP
|
$
20,029
|
|
$
13,274
|
|
$
37,630
|
|
$
26,064
|
|
As a percentage of
revenue, non-GAAP
|
22 %
|
|
18 %
|
|
22 %
|
|
18 %
|
|
|
|
|
|
|
|
|
|
Net income per share -
basic, non-GAAP
|
$
0.10
|
|
$
0.07
|
|
$
0.19
|
|
$
0.14
|
|
Net income per share -
diluted, non-GAAP
|
$
0.08
|
|
$
0.05
|
|
$
0.15
|
|
$
0.10
|
|
|
|
|
|
|
|
|
|
Weighted-average common
shares outstanding - basic
|
198,046,275
|
|
185,781,262
|
|
195,865,881
|
|
182,085,548
|
|
Weighted-average common
shares outstanding - diluted
|
252,249,228
|
|
254,338,870
|
|
256,412,731
|
|
253,780,420
|
|
|
(1) The
estimated non-GAAP effective tax rate was 25% for the three and six
months ended June 30, 2023, 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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multimedia:https://www.prnewswire.com/news-releases/clearwater-analytics-announces-second-quarter-2023-financial-results-301891893.html
SOURCE Clearwater Analytics, LLC