NYSE$CWAN

Clearwater Analytics Holdings Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported record quarterly revenue with ARR reaching $337.4 million and net revenue retention rate of 106%.

Clearwater Analytics announced strong Q1 2023 financial results, with record quarterly revenue of $84.6 million, up 19.5% year-over-year. The company's ARR reached $337.4 million, and the net revenue retention rate was 106%. Adjusted EBITDA was $22.5 million, representing a 26.6% margin.

  • Total revenue for the first quarter of 2023 reached $84.6 million, an increase of 19.5% year-over-year.
  • ARR reached $337.4 million, an increase of 17.5% year-over-year.
  • The net revenue retention rate was 106%.
  • Adjusted EBITDA for the first quarter of 2023 was $22.5 million.

Headline financials

Total Revenue

$84.6M

Previous: $70.8M+19.5%
EPS (adj)

$0.07

Previous: $0.05+40.0%
Annualized Recurring Revenue

$337M

Previous: $287M+17.5%
Gross Revenue Retention Rate

97.0%

Previous: 98.0%-1.0%
Net Revenue Retention Rate

106.0%

Previous: 107.0%-0.9%
Capital Expenditures

-$1.72M

Previous: -$2.23M+22.9%
Free Cash Flow

-$6.1M

Previous: -$1.83M-233.6%
Net Income

-$4.38M

Previous: $398K-1201.5%
Operating Income

-$6.32M

Previous: $1.28M-594.4%
Gross Profit

$59.8M

Previous: $49.6M+20.5%
Cash & Equivalents

$221M

Previous: $264M-16.2%
Total Assets

$491M

Previous: $382M+28.8%
Stock-Based Comp

$23.2M

No prior period

Revenue & EPS history

Clearwater · Revenue · Quarterly

$84.6M

Q1 2023+19.5%vs Q1 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Clearwater Analytics provided guidance for the second quarter and full year 2023.

Tailwinds

  • Second Quarter 2023 Revenue: $87.5 million
  • Full Year 2023 Revenue: $362 million to $364 million
  • Year-over-Year Growth %: ~19%
  • Year-over-Year Growth %: ~19% to 20%
  • Adjusted EBITDA: $22.8 million

Headwinds

  • Full Year 2023 Adjusted EBITDA: $97 million to $98 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%

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 17 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+1.9%

Avg return

Earnings day

+2.5%

Avg return

5 days after

+4.6%

Avg return

30 days after

67%

12 / 18 earnings

Positive

+21.6%

Q3 2024

Best reaction

-13.8%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.2%+0.1%+0.3%
Q4 2025+0.8%+0.2%+1.3%
Q3 2025-8.3%+6.3%+25.4%
Q1 2025+0.7%+0.5%+1.6%
Q4 2024+10.7%+13.2%-2.0%
Q3 2024+21.6%+15.1%+10.3%
Q2 2024+18.7%+16.3%+25.1%
Q1 2024+8.9%+10.7%+20.3%
Q4 2023-13.8%-12.2%-11.5%
Q3 2023+2.9%+0.4%+9.3%
Q2 2023+2.2%-2.0%+6.0%
Q1 2023-2.6%+1.2%+7.6%
Q4 2022-7.4%-5.7%-21.7%
Q3 2022+8.9%+10.2%+19.3%
Q2 2022+1.5%+13.4%+14.9%
Q1 2022-5.1%-6.9%-23.3%
Q4 2021-10.6%-11.0%+5.5%
Q3 2021+4.9%-4.5%-5.5%
Q2 2021
Q1 2021
Q4 2020
Q3 2020
Q2 2020
Q1 2020

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