NYSE$CWAN

Clearwater Analytics Holdings Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Clearwater Analytics reported record quarterly revenue, ARR growth, and strong adjusted EBITDA and cash flow generation.

Clearwater Analytics announced strong Q3 2024 results, with record revenue of $115.8 million, a 22% year-over-year increase. Annualized Recurring Revenue (ARR) reached $456.9 million, up 26% year-over-year. Net income was $4.8 million, and adjusted EBITDA grew by 34% to $38.3 million. The company also highlighted its investments in R&D and new products, as well as an agreement to terminate the Tax Receivable Agreement.

  • Clearwater Analytics achieved record quarterly revenue of $115.8 million, representing a 22% year-over-year increase.
  • Annualized Recurring Revenue (ARR) grew to $456.9 million, a 26% increase compared to the previous year.
  • The company reported net income of $4.8 million, a significant improvement from a net loss in the same quarter last year.
  • Adjusted EBITDA increased by 34% to $38.3 million, with a margin of 33.1%.

Headline financials

Total Revenue

$116M

Previous: $94.7M+22.4%
EPS

$0.02

Previous: $0.09-77.8%
Annualized Recurring Revenue

$457M

Previous: $362M+26.1%
Gross Revenue Retention Rate

99.0%

Previous: 98.0%+1.0%
Net Revenue Retention Rate

114.0%

Previous: 108.0%+5.6%
Capital Expenditures

-$4.44M

Previous: -$4.06M-9.2%
Free Cash Flow

-$808K

Previous: -$5.95M+86.4%
Net Income

$3.63M

Previous: -$1.89M+292.1%
Operating Income

$7.34M

Previous: -$5.89M+224.6%
Gross Profit

$84.5M

Previous: $67.7M+24.9%
Cash & Equivalents

$229M

Previous: $206M+11.2%
Total Assets

$623M

Previous: $536M+16.4%
R&D Expense

$36.6M

Previous: $32.3M+13.5%
Stock-Based Comp

$26M

Previous: $30.4M-14.4%

Revenue & EPS history

Clearwater · Revenue · Quarterly

$116M

Q3 2024+22.4%vs Q3 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Clearwater Analytics provided guidance for Q4 2024 and full year 2024.

Tailwinds

  • Q4 2024 Revenue: $120.2 million
  • Q4 2024 Year-over-Year Growth: ~21%
  • Q4 2024 Adjusted EBITDA: $38.5 million
  • Q4 2024 Adjusted EBITDA Margin: ~32%
  • Full Year 2024 Revenue: $445.5 million

Headwinds

  • Full Year 2024 Year-over-Year Growth: ~21%
  • Full Year 2024 Adjusted EBITDA: $142.5 million
  • Full Year 2024 Adjusted EBITDA Margin: ~32%
  • Total Equity-based compensation expense and related payroll taxes: ~$106 million
  • Depreciation and Amortization: ~$12 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 2024

Historical avgQ3 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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