NYSE$CWAN

Clearwater Analytics Holdings Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported revenue of $64.5 million, a 21% increase year-over-year, with a gross revenue retention rate of 98% and a net revenue retention rate of 111%.

Clearwater Analytics reported a strong third quarter in 2021, marked by a 21% increase in revenue to $64.5 million and robust retention rates. The company's net loss was $11.4 million, including a $10.3 million loss on debt extinguishment, while non-GAAP net income reached $8.7 million. Clearwater's ARR reached $257.0 million, reflecting continued growth and market penetration.

  • Revenue reached $64.5 million, up 21% year-over-year.
  • Gross profit was $46.7 million with a gross margin of 72.4%.
  • Net loss was $11.4 million, including a $10.3 million loss on debt extinguishment.
  • ARR reached $257.0 million, a 20% increase year-over-year.

Headline financials

Total Revenue

$64.5M

Previous: $53.4M+20.9%
EPS (adj)

$0.04

Previous: $0.07-45.9%
Annualized Recurring Revenue

$257M

Previous: $215M+19.6%
Gross Revenue Retention Rate

98.0%

Previous: 98.0%+0.0%
Net Revenue Retention Rate

111.0%

Previous: 109.0%+1.8%
Capital Expenditures

-$3.5M

No prior period
Free Cash Flow

-$11.8M

No prior period
Net Income

-$8.31M

Previous: $11.5M-172.3%
Operating Income

$7.26M

Previous: $16.5M-56.0%
Gross Profit

$46.7M

Previous: $41M+13.8%
Cash & Equivalents

$245M

No prior period
Total Assets

$327M

No prior period
Stock-Based Comp

$7.68M

No prior period

Revenue & EPS history

Clearwater · Revenue · Quarterly

$64.5M

Q3 2021+20.9%vs Q3 2020
Beat estimate in 7 of 10 quarters(70%)
ActualEstimate

Forward guidance

The company expects total revenue to be in the range of $66.0 million to $67.0 million for the fourth quarter of 2021. Adjusted EBITDA margin is expected to be approximately 26% for the fourth quarter of 2021.

Tailwinds

  • Total revenue is expected to be in the range of $66.0 million to $67.0 million for the fourth quarter of 2021.
  • Implies full-year 2021 revenue of $248.3 million to $249.3 million.
  • Full-year revenue growth of 22% to 23%.
  • Adjusted EBITDA margin is expected to be approximately 26% for the fourth quarter of 2021.
  • Implies full-year 2021 adjusted EBITDA margin of approximately 28%.

Historical earnings impact

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

Avg. return before/after earnings

Based on 17 quarterly earnings reports

Historical avg

+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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