Clearwater Analytics (CWAN) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter 2024 revenue reached $126.5 million, a 27.7% increase from $99.0 million in Q4 2023[4] - Annualized Recurring Revenue (ARR) as of December 31, 2024, was $474.9 million, up 25.3% from $379.1 million a year earlier[6] - Net income for Q4 2024 was $420.3 million, compared to a net loss of $3.4 million in Q4 2023[8] - Adjusted EBITDA for Q4 2024 was $41.7 million, a 39% increase from $30.0 million in Q4 2023[8] - Revenue for Q4 2024 was $126,465,000, representing a 27.7% increase from $99,019,000 in Q4 2023[27] - Gross profit for the year ended December 31, 2024, was $328,816,000, up from $261,041,000 in 2023, indicating a growth of 25.9%[27] - Net income attributable to Clearwater Analytics Holdings, Inc. for Q4 2024 was $419,486,000, compared to a net loss of $4,186,000 in Q4 2023[27] - Net income for Q4 2024 was $420,305, a significant increase from a net loss of $3,447 in Q4 2023, representing a 332% improvement[32] - Revenue for Q4 2024 reached $126,465, up from $99,019 in Q4 2023, marking a 28% year-over-year growth[32] - Adjusted EBITDA for Q4 2024 was $41,683, reflecting a 39% increase compared to $29,982 in Q4 2023[32] - Gross profit for Q4 2024 was $92.904 million, up from $70.684 million in Q4 2023, representing a 31.3% growth[36] - Non-GAAP gross profit margin improved to 79% in Q4 2024 compared to 77% in Q4 2023[36] - Income from operations, non-GAAP, was $41.683 million in Q4 2024, up from $29.982 million in Q4 2023, reflecting a 39.0% increase[37] - Non-GAAP net income per share, diluted, increased to $0.13 in Q4 2024 from $0.10 in Q4 2023[37] Client and Market Growth - The net revenue retention rate improved to 116% as of December 31, 2024, up from 107% a year earlier[6] - As of December 31, 2024, Clearwater Analytics had 1,462 clients, including 100 clients contributing at least $1.0 million in ARR, a 16.3% increase from the previous year[9] - The company processes and reports on $8.8 trillion in assets daily, an increase from $7.3 trillion a year earlier[9] Expenses and Cash Flow - Operating cash flows for Q4 2024 were negative $28.9 million, impacted by one-time settlement payments of $79 million[8] - Free Cash Flow for Q4 2024 was $(29,762), a decrease from $22,531 in Q4 2023, indicating a shift in cash generation[34] - Operating cash flow for Q4 2024 was $(28,940), compared to $24,093 in Q4 2023, showing a decline in cash provided by operating activities[34] - Total cash and cash equivalents at the end of Q4 2024 were $177,350, down from $221,765 at the end of Q4 2023[34] - The company incurred $30,421 in equity-based compensation expense in Q4 2024, up from $23,660 in Q4 2023, indicating increased investment in employee incentives[32] - The tax receivable agreement expense for Q4 2024 was $41,637, significantly higher than $8,284 in Q4 2023, reflecting changes in tax strategy[32] - The company reported a net cash used in financing activities of $(19,168) in Q4 2024, compared to $(9,364) in Q4 2023, indicating increased financing outflows[34] Asset and Equity Changes - Total assets increased significantly to $1,169,572,000 as of December 31, 2024, from $558,743,000 in 2023, marking an increase of 109%[25] - Cash and cash equivalents decreased to $177,350,000 in 2024 from $221,765,000 in 2023, a decline of 20%[25] - Goodwill increased to $70,971,000 in 2024 from $45,338,000 in 2023, a rise of 56.6%[25] - Total stockholders' equity attributable to Clearwater Analytics Holdings, Inc. rose to $1,008,255,000 in 2024 from $354,329,000 in 2023, an increase of 184%[25] Guidance and Future Projections - Guidance for Q1 2025 revenue is projected at $125 million, with full year 2025 revenue expected between $535.5 million and $542 million[11] Research and Development - Research and development expenses for the year were $150,558,000, up from $123,925,000 in 2023, reflecting a 21.5% increase[27] - Research and development expenses increased to $40.904 million in Q4 2024, a 21.5% rise from $33.728 million in Q4 2023[36] Operating Expenses - Operating expenses totaled $316,582,000 for the year, compared to $277,786,000 in 2023, an increase of 14%[27] - General and administrative expenses rose to $32.896 million in Q4 2024, up from $18.050 million in Q4 2023, indicating an increase of 82.5%[36]