NYSE$CWAN
Clearwater Analytics Holdings Inc · Q4 2024 earnings
Q4 2024 earnings · · After market close · Investor relations
Briefing
Clearwater Analytics reported strong growth in Q4 2024, with record revenue and net income driven by strategic expansion and operational efficiency.
Clearwater Analytics achieved record revenue of $126.5 million in Q4 2024, marking a 27.7% YoY growth. Net income surged to $420.3 million, largely influenced by a one-time tax benefit. Adjusted EBITDA reached $41.7 million, reflecting a 39% YoY increase. The company also reported a net revenue retention rate of 116%, underscoring its strong client engagement and expansion efforts.
- Q4 2024 revenue increased by 27.7% YoY to $126.5 million.
- Net income surged to $420.3 million, driven by a one-time tax benefit.
- Adjusted EBITDA rose 39% YoY to $41.7 million.
- Net revenue retention rate reached 116%, reflecting strong client retention and expansion.
Headline financials
Revenue & EPS history
Clearwater · Revenue · Quarterly
$127M
Forward guidance
Clearwater projects steady growth in Q1 and FY 2025, with revenue expected at $125 million in Q1 and between $535.5 million and $542 million for the full year. Adjusted EBITDA margins are expected to remain strong at ~33% in Q1 and ~34% for FY 2025.
Tailwinds
- Q1 2025 revenue guidance set at $125 million, reflecting ~22% YoY growth.
- Full-year 2025 revenue expected between $535.5 million and $542 million.
- Adjusted EBITDA projected at $41.5 million in Q1 2025, maintaining a ~33% margin.
- Strong demand in North America and international markets, particularly in Europe and Asia.
- The announced acquisition of Enfusion is expected to drive future revenue synergies.
Headwinds
- Q1 2025 revenue guidance indicates a slight sequential decline from Q4 2024.
- Cash flows impacted by one-time settlement payments, leading to negative free cash flow in Q4 2024.
- High equity-based compensation costs remain a factor in expense management.
- Market uncertainties and macroeconomic conditions could affect future growth.
- Integration risks associated with the Enfusion acquisition may present short-term operational challenges.
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 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
| Quarter | Report date | Reaction (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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