NYSE$CWAN

Clearwater Analytics Holdings Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Clearwater Analytics reported strong Q3 2023 financial results with record quarterly revenue and increased profitability.

Clearwater Analytics announced its Q3 2023 financial results, reporting a 24% year-over-year increase in revenue to $94.7 million. The company's adjusted EBITDA grew by 51% year-over-year to $28.6 million, with an adjusted EBITDA margin of 30%.

  • Total revenue for the third quarter of 2023 was $94.7 million, an increase of 23.7% from $76.6 million in the third quarter of 2022.
  • Adjusted EBITDA for the third quarter of 2023 was $28.6 million, up from $18.8 million in the third quarter of 2022.
  • As of September 30, 2023, annualized recurring revenue (“ARR”) reached $362.4 million, an increase of 19.4% from $303.6 million as of September 30, 2022.
  • Net revenue retention rate was 108%.

Headline financials

Total Revenue

$94.7M

Previous: $76.6M+23.7%
EPS (adj)

$0.09

Previous: $0.06+50.0%
Annualized Recurring Revenue

$362M

Previous: $304M+19.4%
Gross Revenue Retention Rate

98.0%

Previous: 98.0%+0.0%
Net Revenue Retention Rate

108.0%

Previous: 103.0%+4.9%
Capital Expenditures

-$4.06M

Previous: -$5.88M+30.9%
Free Cash Flow

-$5.95M

Previous: -$8.85M+32.8%
Net Income

-$1.89M

Previous: -$2.97M+36.5%
Operating Income

-$5.89M

Previous: -$1.16M-405.8%
Gross Profit

$67.7M

Previous: $53.8M+25.7%
Cash & Equivalents

$206M

Previous: $289M-28.7%
Total Assets

$536M

Previous: $420M+27.6%
R&D Expense

$32.3M

No prior period
Stock-Based Comp

$30.4M

Previous: $16.7M+81.8%

Revenue & EPS history

Clearwater · Revenue · Quarterly

$94.7M

Q3 2023+23.7%vs Q3 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Clearwater Analytics provided guidance for Q4 2023 and full year 2023.

Tailwinds

  • Q4 2023 Revenue: $98.5 million
  • Q4 2023 Year-over-Year Growth: ~19%
  • Q4 2023 Adjusted EBITDA: $28 million
  • Q4 2023 Adjusted EBITDA Margin: ~28%
  • Full Year 2023 Revenue: $367.6 million

Headwinds

  • Full Year 2023 Year-over-Year Growth: ~21%
  • Full Year 2023 Adjusted EBITDA: $104 million
  • Full Year 2023 Adjusted EBITDA Margin: ~28%
  • Equity-based compensation expense and related payroll taxes: ~$80 million
  • Equity-based compensation expense related to JUMP Technology acquisition: ~$25 million

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 Q3 2023

Historical avgQ3 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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