NYSE$CWAN

Clearwater Analytics Holdings Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Clearwater Analytics' Q4 2023 financial results were announced, featuring revenue growth and improved profitability.

Clearwater Analytics reported a strong Q4 2023 with revenue reaching $99.0 million, a 20% increase year-over-year. The company's adjusted EBITDA margin was 30.3%, and free cash flow was $22.5 million. Clearwater Analytics ended the year with $379.1 million in Annualized Recurring Revenue (ARR), reflecting a 17.2% year-over-year growth.

  • Revenue for Q4 2023 reached $99.0 million, representing a 20% increase year-over-year.
  • The company's Annualized Recurring Revenue (ARR) grew to $379.1 million, a 17.2% increase year-over-year.
  • Adjusted EBITDA margin for Q4 2023 was 30.3%.
  • Gross Revenue Retention Rate stood at 98%, while Net Revenue Retention Rate was 107%.

Headline financials

Total Revenue

$99M

Previous: $82.7M+19.8%
EPS (adj)

$0.10

Previous: $0.07+42.9%
Annualized Recurring Revenue

$379M

Previous: $324M+17.2%
Gross Revenue Retention Rate

98.0%

Previous: 98.0%+0.0%
Net Revenue Retention Rate

107.0%

Previous: 106.0%+0.9%
Capital Expenditures

-$1.56M

Previous: $1.88M-183.2%
Net Income

-$3.45M

Previous: -$2M-72.4%
Operating Income

$2.59M

Previous: $3.88M-33.2%
Gross Profit

$70.7M

Previous: $59.7M+18.4%
R&D Expense

$33.5M

No prior period
Stock-Based Comp

$22.3M

Previous: $16.9M+31.9%

Revenue & EPS history

Clearwater · Revenue · Quarterly

$99M

Q4 2023+19.8%vs Q4 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Clearwater Analytics anticipates revenue of approximately $100.5 million and an adjusted EBITDA of $28.8 million for the first quarter of 2024. For the full year 2024, the company projects revenue between $431 million and $437 million and an adjusted EBITDA between $135 million and $137 million.

Tailwinds

  • Revenue is expected to be approximately $100.5 million for Q1 2024.
  • Adjusted EBITDA is anticipated to be $28.8 million for Q1 2024.
  • Full year 2024 revenue is projected to be between $431 million and $437 million.
  • Full year 2024 adjusted EBITDA is expected to range from $135 million to $137 million.
  • The company anticipates a year-over-year revenue growth of approximately 17% to 19% for the full year 2024.

Headwinds

  • Certain components of the guidance are provided on a non-GAAP basis without a reconciliation to GAAP.
  • The company does not have access to certain information needed to provide a GAAP reconciliation.
  • Guidance includes estimates for total equity-based compensation expense and depreciation and amortization.
  • The non-GAAP effective tax rate is projected at 25%.
  • The diluted non-GAAP share count is estimated to be approximately 258 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 2023

Historical avgQ4 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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