Core Insights - Clearwater Analytics announced enhancements to its Alternative Assets Solution to tackle scalability and compliance challenges in the $2.5 trillion private credit market [1] Group 1: Product Enhancements - The new capabilities include automation of bespoke loan structures [1] - The solution accelerates fund research using AI technology [1] - It synchronizes data across asset owners and managers [1]

Group 1 - The company has evolved from a regional player to a significant entity in the United States, successfully partnering with major clients such as JPMorgan, Morgan Stanley, Apple, and Cisco [2] - The architecture of the company's platform has remained largely unchanged, but it has been enhanced to meet modern standards, preparing it for broader market acceptance [3] - The company has recently acquired two other firms to expand its capabilities, although integration with older front-office systems remains a challenge [3] Group 2 - The company initially focused solely on investment accounting but has diversified its offerings over the years [2] - The unique multi-tenant architecture of the company's platform was inspired by earlier models like Salesforce and Siebel, which allowed for simultaneous updates across all clients [1]

Core Insights - Loomis Sayles Small/Mid Cap Growth Fund underperformed the Russell 2500 Growth Index in Q2 2025, returning 8.49% compared to the index's 11.31% [1] - The fund's underperformance was primarily due to security selection in the consumer discretionary and financials sectors [1] Company Performance - Clearwater Analytics Holdings, Inc. (NYSE:CWAN) was highlighted as a significant detractor from the fund's performance, with a one-month return of -0.36% and a 52-week loss of 19.99% [2][3] - As of September 12, 2025, Clearwater Analytics had a market capitalization of $6.386 billion, with shares closing at $19.61 [2] Financial Metrics - Clearwater Analytics reported revenue of $181.9 million in Q2 2025, marking a 70% year-over-year increase [4] - The company is currently integrating three acquisitions made earlier in the year, which has contributed to performance uncertainty [3] Market Sentiment - Clearwater Analytics is not among the 30 most popular stocks among hedge funds, with 51 hedge fund portfolios holding the stock at the end of Q2 2025, up from 41 in the previous quarter [4] - Analysts suggest that while Clearwater Analytics has potential, certain AI stocks may offer better upside potential and lower downside risk [4]

Core Insights - TimesSquare Capital Management reported a gross return of 11.28% and a net return of 11.02% for its "U.S. Small Cap Growth Strategy" in Q2 2025, underperforming the Russell 2000 Growth Index which returned 11.97% [1] - Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is highlighted as a key stock, with a one-month return of 3.43% but a 52-week decline of 17.12%, closing at $19.90 per share with a market cap of $6.48 billion [2][4] Company Performance - Clearwater Analytics reported revenue of $181.9 million in Q2 2025, marking a 70% year-over-year increase [4] - The company has made acquisitions of Enfusion, Beacon, and Bistro assets to enhance its product offerings, although this has led to a short-term dilutive impact on its financial profile, contributing to an 18% drop in share value [3] Investment Sentiment - Clearwater Analytics is not among the top 30 most popular stocks among hedge funds, with 51 hedge fund portfolios holding the stock at the end of Q2 2025, up from 41 in the previous quarter [4] - Analysts suggest that while Clearwater Analytics has potential, certain AI stocks may offer greater upside potential with less downside risk [4]

PresentationJames CoxChief Financial Officer [Audio Gap] mention Cary Davis one of our board members, he is in the back, thank you, Cary, and lots and lots of people to thank, but I won't do that right now. I'll wait to the very end. But [Diendra, Pedro, HJ] everybody, the whole team who's put all of this program together is phenomenal. And then yesterday, our new Head of IR, Kamil Mielczarek, if you want to stand up, started yesterday. So if it goes well, it's because everybody did a great job. And if it d ...

Clearwater Analytics (CWAN) 2025 Investor Day Summary Company Overview - Clearwater Analytics is focused on integrating its platform with acquisitions such as Infusion, Beacon, and Bistro to enhance its service offerings and market position [8][72]. Core Financial Performance - Clearwater achieved a 21% revenue growth in 2023, exceeding the forecast of 20% [14]. - The company expects continued growth with projected revenues of $437 million in 2024 [14]. - Gross revenue retention rate stands at 98%, maintaining this level for 25 out of 26 quarters [18]. Acquisitions and Integration Strategy - The integration of Infusion and Beacon is seen as a strategic move to enhance Clearwater's capabilities in hedge funds and risk calculations [10][72]. - The company emphasizes the importance of not merely rolling acquisitions into the existing brand but rather creating a new identity that reflects the strengths of all platforms [9]. Market Trends and Challenges - The investment management industry is experiencing significant changes, particularly with the growth of alternative assets, which now constitute 25-40% of portfolios [28]. - The complexity of managing global portfolios and the need for rapid adjustments in investment strategies are highlighted as key challenges [27][30]. Technology and Innovation - Clearwater's platform is designed to handle the complexities of modern investment management, including regulatory compliance and risk assessment [34][39]. - The company is leveraging generative AI to enhance its data processing capabilities, which is expected to improve operational efficiency [67][69]. Growth Strategy - Clearwater's growth model includes deepening client relationships, vertical specialization, geographical expansion, and targeting asset managers and owners [93][98]. - The company aims to maintain its high net promoter score (NPS) and net retention rate (NRR) as indicators of client satisfaction and loyalty [102][103]. Client Engagement and Satisfaction - Clearwater has over 130 clients paying more than $1 million annually, with a gross retention rate of 98% [104]. - The company focuses on delivering seamless workflows and operational insights to enhance client satisfaction and stickiness [105][106]. Future Outlook - Clearwater is optimistic about its ability to grow and improve margins, particularly through dedicated teams for hedge funds and asset managers [78][80]. - The company plans to continue its trajectory of incremental improvements while also aiming for disruptive advancements in the industry [87][89]. Conclusion - Clearwater Analytics is positioned to leverage its recent acquisitions and technological advancements to enhance its market presence and operational efficiency, while maintaining a strong focus on client satisfaction and retention [51][56].

Financial Performance & Guidance - Clearwater core business revenue in 2024 was $451.8 million, with a forecasted 20% growth[183] - The company significantly exceeded gross margin expectations, delivering 78.2% in H1 2023 against a 76% forecast[29, 27] - Non-GAAP EBITDA expectations were also exceeded, with 35.5% in H1 2023 compared to a 31% forecast[33, 31] - FY 2025E revenue guidance is between $726 million and $732 million[183, 185] - The company aims to reduce leverage to below 3 times by December 31, 2026[210] Strategic Initiatives & Growth Drivers - The company's Total Addressable Market (TAM) has more than doubled after integration[83] - Enfusion is expected to re-accelerate growth, targeting a ~20% ending growth rate[96, 97] - The company is enabling a "1 to 4 bps journey," referring to increased technology spending by clients, with current spend addressing 1bp and a target to reach 4bp[106, 112] - Insurance market represents a $6.3 billion ARR global opportunity[117, 119] Technology & Platform - Clearwater has a single data ingestion platform that processes over $10 trillion for over 1,450 clients daily[63] - The company is creating a CWAN compliant standard for the industry, aiming to become the standard for reporting for Alternative Assets with $10T on the platform[160]

Group 1 - The core viewpoint is that Clearwater Analytics Holdings (NYSE: CWAN) is recommended to hold due to execution risks associated with the Enfusion acquisition [1] - The analysis emphasizes a fundamentals-based approach to value investing, focusing on companies with long-term durability and robust balance sheets [1] - There is a belief that low multiple stocks are not necessarily cheap, and valuation matters significantly in investment decisions [1] Group 2 - The company has shown results that warrant a reiteration of the hold rating, indicating ongoing concerns about execution risks [1] - The investment strategy prioritizes companies with steady long-term growth and minimal cyclicality [1] - The article suggests that in certain situations, the potential for growth may outweigh immediate price considerations [1]

Core Viewpoint - Clearwater Analytics Holdings (CWAN) shares have risen as investors focus on long-term growth potential despite recent acquisition concerns, with Goldman Sachs upgrading the stock to Buy and setting a price target of $27 [1][2]. Group 1: Stock Performance and Analyst Insights - The stock has experienced a 30% decline over the past six months, contrasting with a 9% gain in the Nasdaq, indicating investor apprehension regarding the quality of acquired assets and integration capabilities [2]. - Analyst Gabriela Borges believes that the risks associated with acquisitions are now reflected in the stock price and identifies a clear catalyst for growth, including an upcoming Analyst Day on September 3 [3]. Group 2: Growth Projections and Business Strategy - Clearwater's core business is expected to maintain annual growth of over 20% for the next three to five years, driven by its automation platform, strong network effects, and cross-selling opportunities [3]. - The company is set to release approximately five new products each year, which could enhance net revenue retention (NRR) and support growth in alternative investments through partnerships with Blackstone and PIMCO [4]. Group 3: Market Conditions and Revenue Drivers - Macro factors, such as anticipated rate cuts by Goldman Sachs, could positively impact fixed-income asset prices, which constitute about 80% of Clearwater's client assets under management (AUM), thereby supporting revenue through an AUM-linked pricing model [5]. - Increased capital market activity and IPO volume may contribute an additional 1-2 percentage points of growth in the corporate segment, which represents around 16% of total revenue [5]. Group 4: Acquisition Execution and Future Outlook - While there are concerns regarding the execution of acquisitions, particularly with Enfusion, which accounts for about 13% of run-rate sales, growth for Enfusion is projected to improve from 13% to 15% by 2027 [6]. - Clearwater aims to develop a comprehensive platform for institutional investors, which could achieve a Rule of 40 profile, indicating strong long-term potential even before the full vision is realized [7].

Group 1: Earnings Performance - Clearwater Analytics reported quarterly earnings of $0.12 per share, missing the Zacks Consensus Estimate of $0.13 per share, but showing an increase from $0.10 per share a year ago [1] - The earnings surprise for this quarter was -7.69%, while the previous quarter had a positive surprise of +8.33% [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times [2] Group 2: Revenue Performance - The company posted revenues of $181.94 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 3.72% and up from $106.79 million year-over-year [3] - Clearwater Analytics has topped consensus revenue estimates four times over the last four quarters [3] Group 3: Stock Performance and Outlook - Clearwater Analytics shares have declined approximately 25.9% since the beginning of the year, contrasting with the S&P 500's gain of 7.1% [4] - The current consensus EPS estimate for the upcoming quarter is $0.15 on revenues of $207.32 million, and for the current fiscal year, it is $0.59 on revenues of $725.47 million [8] Group 4: Industry Context - The Internet - Software industry, to which Clearwater Analytics belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable industry outlook [9] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Clearwater Analytics' stock performance [6]