NYSE$CWAN

Clearwater Analytics Holdings Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Clearwater Analytics reported strong Q2 2024 earnings with significant growth in revenue, ARR, and adjusted EBITDA.

Clearwater Analytics announced strong second-quarter results, marked by a 19% year-over-year increase in revenue to $106.8 million and a 22% rise in Annual Recurring Revenue (ARR) to $427.2 million. The company's adjusted EBITDA grew by 35% year-over-year, reaching $33.4 million, and free cash flow increased by 117%.

  • Revenue increased by 19% year-over-year, reaching $106.8 million.
  • ARR grew by 22% year-over-year, totaling $427.2 million.
  • Adjusted EBITDA increased by 35% year-over-year, amounting to $33.4 million.
  • Free cash flow increased by 117% compared to the previous year.

Headline financials

Total Revenue

$107M

Previous: $89.9M+18.8%
EPS

$0.00

Previous: $0.08-100.0%
Annualized Recurring Revenue

$427M

Previous: $350M+22.2%
Gross Revenue Retention Rate

99.0%

Previous: 98.0%+1.0%
Net Revenue Retention Rate

110.0%

Previous: 109.0%+0.9%
Adjusted EBITDA

$33.4M

No prior period
Non-GAAP Net Income

$26.8M

No prior period
GAAP Gross Margin

72.0%

No prior period
Non-GAAP Gross Margin

77.5%

No prior period
Capital Expenditures

-$2.95M

Previous: -$3.29M+10.5%
Free Cash Flow

-$3.38M

Previous: -$14.2M+76.2%
Net Income

-$430K

Previous: -$10.9M+96.1%
Operating Income

$3.84M

Previous: -$7.13M+154.0%
Gross Profit

$76.9M

Previous: $62.9M+22.2%
Cash & Equivalents

$190M

Previous: $190M-0.1%
Total Assets

$585M

Previous: $512M+14.4%
R&D Expense

$35.2M

No prior period

Revenue & EPS history

Clearwater · Revenue · Quarterly

$107M

Q2 2024+18.8%vs Q2 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Clearwater Analytics provided guidance for the third quarter and full year of 2024, expecting continued revenue growth and strong adjusted EBITDA margins.

Tailwinds

  • Revenue is expected to be between $113 million and $114 million for Q3 2024.
  • Full-year revenue is projected to be between $442 million and $444 million.
  • Adjusted EBITDA is anticipated to be $36 million for Q3 2024.
  • Full-year adjusted EBITDA is expected to be $140 million.
  • Adjusted EBITDA margin is projected to be approximately 32% for both Q3 and the full year.

Headwinds

  • Total equity-based compensation expense and related payroll taxes are expected to be approximately $106 million for the full year.
  • Depreciation and Amortization is expected to be approximately $12 million for the full year.
  • Non-GAAP effective tax rate is projected at 25%.
  • Diluted non-GAAP share count is expected to be approximately 258 million.
  • Certain components of the guidance are provided on a non-GAAP basis without a reconciliation to GAAP basis.

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 Q2 2024

Historical avgQ2 2024

+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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