Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ______________________________________ FORM 10-Q ______________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40838 Clearwater Analytics Holdin ...

The GenAI firewall solution proactively intercepts malicious inputs and harmful AI responses in real time from one, centralized, easy-to-use console  SAN FRANCISCO, May 2, 2024 /PRNewswire/ -- Galileo, a leader in developing generative AI for the enterprise, today announced the release of Galileo Protect®, a real-time GenAI firewall solution that proactively intercepts malicious inputs and stops harmful responses, such as hallucinations, in Large Language Model (LLM) applications. Building on the success of ...

[Q1 2024 Financial & Business Highlights](index=1&type=section&id=Q1%202024%20Financial%20%26%20Business%20Highlights) [Financial Performance Summary](index=1&type=section&id=First%20Quarter%202024%20Financial%20Results%20Summary) The company achieved strong Q1 2024 growth in revenue, Adjusted EBITDA, and net income Q1 2024 Financial Highlights | Financial Metric | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $102.7M | $84.6M | +21.4% | | Gross Profit (GAAP) | $74.5M | $59.8M | +24.6% | | Net Income/(Loss) | $2.2M | ($5.4M) | N/A | | Adjusted EBITDA | $32.2M | $22.5M | +42.9% | | Adjusted EBITDA Margin | 31.3% | 26.6% | +470 bps | | Free Cash Flow | $8.6M | $6.2M | +38.3% | | Diluted EPS (GAAP) | $0.01 | ($0.02) | N/A | | Diluted EPS (Non-GAAP) | $0.10 | $0.07 | +42.9% | [Key Operating Metrics](index=2&type=section&id=First%20Quarter%202024%20Key%20Metrics%20Summary) Key growth indicators showed positive momentum with significant year-over-year growth in ARR and improved customer retention rates Key Operating Metrics | Key Metric | As of Mar 31, 2024 | As of Mar 31, 2023 | % Change | | :--- | :--- | :--- | :--- | | Annualized Recurring Revenue (ARR) | $402.3M | $337.4M | +19.3% | | Gross Revenue Retention Rate | 99% | 97% | +200 bps | | Net Revenue Retention Rate | 110% | N/A | N/A | [Recent Business Developments](index=2&type=section&id=Recent%20Business%20Highlights) The company enhanced its offerings through a key acquisition, advanced its multi-product strategy, and expanded internationally - Completed the **acquisition of Wilshire Advisors' risk, performance, and analytics platforms** to enhance front and middle office solutions[5](index=5&type=chunk) - Advanced its multi-product strategy with successful go-lives for **Clearwater PRISM clients** and a growing roster of clients using both JUMP and Clearwater's accounting solutions[5](index=5&type=chunk) - Launched **Clearwater CWIC LPx**, a new generative AI-based solution to help users extract investment insights on-demand[5](index=5&type=chunk) - Secured new international clients, including **MSIG Singapore** and **France Active**, for investment data management and accounting operations[5](index=5&type=chunk) [Financial Outlook](index=3&type=section&id=Second%20Quarter%20and%20Full%20Year%202024%20Guidance) [Q2 and Full Year 2024 Guidance](index=3&type=section&id=Second%20Quarter%20and%20Full%20Year%202024%20Guidance) The company projects continued growth for Q2 and the full year 2024, with revenue expected to increase by 19% to 20% Financial Guidance | Metric | Second Quarter 2024 Guidance | Full Year 2024 Guidance | | :--- | :--- | :--- | | Revenue | $105M - $106M | $438M - $442M | | Year-over-Year Growth | ~17% - 18% | ~19% - 20% | | Adjusted EBITDA | $31M | $137M - $139M | | Adjusted EBITDA Margin | ~29% - 30% | ~31% | [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) The company's balance sheet reflects total assets of $547.8 million and a strong equity position as of March 31, 2024 Consolidated Balance Sheets (in thousands) | Balance Sheet Item (in thousands) | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $189,644 | $221,765 | | Total current assets | $395,750 | $415,996 | | Total assets | $547,803 | $558,743 | | Total current liabilities | $70,817 | $80,792 | | Total liabilities | $141,588 | $149,086 | | Total stockholders' equity | $406,215 | $409,657 | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) The Q1 2024 income statement shows a 21.4% revenue increase and a return to profitability with a net income of $2.2 million Consolidated Statements of Operations (in thousands) | Income Statement Item (in thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenue | $102,719 | $84,606 | | Gross Profit | $74,541 | $59,781 | | Total operating expenses | $74,707 | $66,104 | | Loss from operations | ($166) | ($6,323) | | Net income (loss) | $2,236 | ($5,417) | | Net income (loss) attributable to CWAN | $1,898 | ($4,384) | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations increased to $10.0 million, though overall cash decreased due to financing and investing activities Consolidated Statements of Cash Flows (in thousands) | Cash Flow Item (in thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $10,037 | $7,935 | | Net cash used in investing activities | ($11,800) | ($32,646) | | Net cash used in financing activities | ($30,145) | ($5,269) | | Change in cash and cash equivalents | ($32,121) | ($29,879) | | Cash and cash equivalents, end of period | $189,644 | $220,845 | [Reconciliation of GAAP to Non-GAAP Measures](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) [Reconciliation of Net Income (Loss) to Adjusted EBITDA](index=9&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20Adjusted%20EBITDA) The reconciliation from GAAP net income to non-GAAP Adjusted EBITDA highlights adjustments for equity-based compensation and D&A Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands) | Reconciliation Item (in thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net income (loss)** | **$2,236** | **($5,417)** | | Interest income, net | ($2,060) | ($1,356) | | Depreciation and amortization | $2,550 | $2,449 | | Equity-based compensation expense | $28,481 | $24,507 | | Transaction expenses | $802 | $1,293 | | Other adjustments | $193 | $1,065 | | **Adjusted EBITDA** | **$32,202** | **$22,541** | [Reconciliation of Free Cash Flow](index=10&type=section&id=Reconciliation%20of%20Free%20Cash%20Flow) Free cash flow grew 38.3% year-over-year, calculated from net operating cash flow less capital expenditures Reconciliation of Free Cash Flow (in thousands) | Free Cash Flow Calculation (in thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $10,037 | $7,935 | | Less: Purchases of property and equipment | $1,438 | $1,717 | | **Free Cash Flow** | **$8,599** | **$6,218** | [Detailed Non-GAAP Reconciliations](index=11&type=section&id=Reconciliation%20of%20Non-GAAP%20Information) This section details adjustments for non-GAAP gross profit and net income, showing improved margins and profitability Non-GAAP Reconciliations (in thousands) | Non-GAAP Reconciliation (in thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Gross Profit (GAAP)** | **$74,541** | **$59,781** | | Equity-based comp. & related taxes | $3,522 | $2,475 | | Depreciation and amortization | $2,102 | $1,964 | | **Gross Profit (Non-GAAP)** | **$80,165** | **$64,220** | | *Non-GAAP Gross Margin* | *78%* | *76%* | | **Net Income (Loss) (GAAP)** | **$2,236** | **($5,417)** | | Total Adjustments (Equity-comp, D&A, etc.) | $32,654 | $29,069 | | Tax impacts of adjustments | ($8,698) | ($5,954) | | **Net Income (Non-GAAP)** | **$26,192** | **$17,598** | [Legal Disclosures](index=4&type=section&id=Legal%20Disclosures) [Use of Non-GAAP Information](index=4&type=section&id=Use%20of%20non-GAAP%20Information) The company clarifies its use of non-GAAP measures to supplement GAAP reporting for performance evaluation - The company uses non-GAAP measures like **adjusted EBITDA and free cash flow** to supplement GAAP reporting[10](index=10&type=chunk) - These measures are adjusted to exclude items management believes are not indicative of ongoing operations, such as **share-based compensation** and **transaction expenses**[12](index=12&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Use%20of%20Forward-Looking%20Statements) This section contains a safe harbor statement regarding forward-looking information and associated risks - The press release contains forward-looking statements concerning **future results, business strategies, and growth opportunities**[13](index=13&type=chunk) - These statements involve known and unknown risks that may cause **actual results to differ materially** from current expectations[14](index=14&type=chunk) - The company **does not undertake any obligation** to update forward-looking statements[16](index=16&type=chunk)

Clearwater Wilshire Analytics Provides Best-in-Class Risk and Performance Capabilities for Front and Middle Office Clients BOISE, Idaho, April 22, 2024 /PRNewswire/ -- Clearwater Analytics Holdings, Inc. (NYSE: CWAN), ("Clearwater Analytics" or the "Company"), a leading provider of SaaS-based investment management, accounting, reporting, and analytics solutions, today completed its previously announced acquisition of risk and performance analytics solutions from Wilshire Advisors LLC, a leading global finan ...

Insurance Asset Risk Awards bekronen Clearwater's uitmuntendheid in IFRS 9-oplossingen BOISE, Idaho, 18 april 2024 /PRNewswire/ -- Clearwater Analytics (NYSE: CWAN), een toonaangevende leverancier van SaaS-gebaseerde oplossingen voor beleggingsbeheer, accounting, rapportage en analyse, heeft vandaag aangekondigd dat het voor het tweede achtereenvolgende jaar de IFRS 9 Solution Provider of the Year award heeft gewonnen. Deze prestatie benadrukt Clearwater's expertise in het navigeren door de complexiteit van ...

Insurance Asset Risk Awards würdigen Clearwaters herausragende Leistungen bei IFRS 9-Lösungen BOISE, Idaho, 18. April 2024 /PRNewswire/ -- Clearwater Analytics (NYSE: CWAN), ein führender Anbieter von SaaS-basierten Lösungen für Investitionsmanagement, Rechnungs- und Berichtswesen sowie Analysen, gab heute bekannt, dass es zum zweiten Mal in Folge als IFRS 9 Solution Provider of the Year ausgezeichnet wurde. Dieser Erfolg unterstreicht die Kompetenz von Clearwater, komplexe Finanzberichterstattungen zu steu ...

Insurance Asset Risk Awards Celebrate Clearwater's Excellence in IFRS 9 Solutions BOISE, Idaho, April 18, 2024 /PRNewswire/ -- Clearwater Analytics (NYSE: CWAN), a leading provider of SaaS-based investment management, accounting, reporting, and analytics solutions, today announced that it has won the IFRS 9 Solution Provider of the Year award for the second consecutive year. This achievement underscores Clearwater's expertise in navigating the complexities of financial reporting and simplifying meticulous p ...

Boosts Transparency, French GAAP Compliance, and Overall Investment Oversight with Clearwater BOISE, Idaho and PARIS, April 9, 2024 /PRNewswire/ -- Clearwater Analytics (NYSE: CWAN), a leading provider of SaaS-based investment management, accounting, reporting, and analytics solutions, today announced that France Active has gone live on the Clearwater platform after a five-month onboarding period, in order to simplify their investment accounting operations and centralize their accounting book of record. Joi ...

One stock that might be an intriguing choice for investors right now is Clearwater Analytics Holdings, Inc. (CWAN) . This is because this security in the Internet - Software space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking ...

Clearwater PRISM Easily Aggregates Multi-Asset Client Investment Data, Enabling Growth and a Differentiated Client Experience BOISE, Idaho and LONDON, March 19, 2024 /PRNewswire/ -- Clearwater Analytics (NYSE: CWAN), a leading provider of SaaS-based data, investment management, accounting, reporting and analytics solutions, today announced that Aegon Asset Management (Aegon AM) has implemented Clearwater PRISM for its global client reporting needs. Aegon AM is an active global investment business with EUR 3 ...