NYSE$CWAN

Clearwater Analytics Holdings Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Clearwater Analytics reported an increase in Q4 revenue and ARR, with strong gross and net revenue retention rates.

Clearwater Analytics announced strong Q4 2022 financial results, with revenue reaching $82.7 million, up 18.5% year-over-year. The company's ARR grew to $323.5 million, a 16.4% increase year-over-year, and it maintained a high gross revenue retention rate of 98% and a net revenue retention rate of 106%.

  • Q4 2022 revenue increased by 18.5% year-over-year to $82.7 million.
  • ARR reached $323.5 million, up 16.4% year-over-year.
  • Gross revenue retention rate was 98%, and net revenue retention rate was 106%.
  • The company completed the acquisition of JUMP Technology, contributing $2.7 million in revenue during the quarter.

Headline financials

Total Revenue

$82.7M

Previous: $69.8M+18.5%
EPS (adj)

$0.07

Previous: $0.06+16.7%
Annualized Recurring Revenue

$324M

Previous: $278M+16.5%
Gross Revenue Retention Rate

98.0%

Previous: 98.0%+0.0%
Net Revenue Retention Rate

106.0%

Previous: 111.0%-4.5%
Capital Expenditures

$1.88M

No prior period
Free Cash Flow

$16.6M

No prior period
Net Income

-$2M

Previous: $100K-2100.0%
Operating Income

$3.88M

Previous: $700K+453.6%
Gross Profit

$59.7M

Previous: $49.6M+20.4%
Cash & Equivalents

$251M

Previous: $255M-1.5%
Total Assets

$484M

Previous: $344M+40.5%
Stock-Based Comp

$16.9M

No prior period

Revenue & EPS history

Clearwater · Revenue · Quarterly

$82.7M

Q4 2022+18.5%vs Q4 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Clearwater Analytics provided guidance for Q1 2023 and Full Year 2023, projecting revenue of $83 million for Q1 and $361 million to $364 million for the full year. Adjusted EBITDA is expected to be $20 million for Q1 and $97 million to $98 million for the full year.

Tailwinds

  • Projected Q1 2023 revenue of $83 million.
  • Projected full year 2023 revenue between $361 million and $364 million.
  • Q1 2023 year-over-year growth of approximately 17%.
  • Full year 2023 year-over-year growth between approximately 19% to 20%.
  • Full year Adjusted EBITDA between $97 million and $98 million.

Headwinds

  • Equity-based compensation is estimated at approximately $80 million.
  • Equity-based compensation for JUMP Technology post-acquisition is estimated at approximately $25 million.
  • Depreciation and Amortization is estimated at approximately $9 million.
  • Non-GAAP effective tax rate of 25%.
  • Diluted non-GAAP share count of approximately 255 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 Q4 2022

Historical avgQ4 2022

+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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