Clearwater Analytics (CWAN) - 2025 Q1 - Quarterly Results

Financial Performance - Total revenue for Q1 2025 was $126.9 million, a 24% increase year-over-year[1] - Annualized recurring revenue (ARR) reached $493.9 million, up 23% year-over-year[1] - Adjusted EBITDA for Q1 2025 was $45.1 million, reflecting a 40% increase from Q1 2024[3] - Gross profit for Q1 2025 was $92.9 million, resulting in a GAAP gross margin of 73.3%[3] - Revenue for Q1 2025 was $126,864,000, representing a 23.5% increase from $102,719,000 in Q1 2024[24] - Gross profit for Q1 2025 was $92,940,000, up from $74,541,000 in Q1 2024, indicating a gross margin improvement[24] - Net income attributable to Clearwater Analytics Holdings, Inc. for Q1 2025 was $6,510,000, compared to $1,898,000 in Q1 2024, reflecting a significant increase[24] - Net income for the quarter was $6,936 million, compared to $2,236 million in the same period last year, reflecting a strong growth trajectory[33] - Non-GAAP net income was $34,855 million, or 27% of revenue, up from 25% in the previous year[33] - Basic non-GAAP net income per share increased to $0.15 from $0.12, while diluted non-GAAP net income per share rose to $0.13 from $0.10[33] Cash Flow and Assets - Free cash flow generation increased by 168% year-over-year, totaling $23.0 million in Q1 2025[2] - Free cash flow for Q1 2025 was $23,032,000, significantly higher than $8,599,000 in Q1 2024[30] - The company reported a net cash provided by operating activities of $24,500,000 for Q1 2025, compared to $10,037,000 in Q1 2024[30] - Cash and cash equivalents rose to $275,159,000 at the end of Q1 2025, compared to $177,350,000 at the end of Q4 2024, marking a substantial increase[26] - Total current assets increased to $422,063,000 as of March 31, 2025, from $384,646,000 as of December 31, 2024[22] - Total assets increased to $1,285,322,000 as of March 31, 2025, from $1,169,572,000 as of December 31, 2024[22] Operational Metrics - Gross revenue retention rate was 98% as of March 31, 2025, compared to 99% a year earlier[4] - Net revenue retention rate was 114% as of March 31, 2025, down from 116% at the end of 2024[4] - Total operating expenses for Q1 2025 were $85,858,000, compared to $74,707,000 in Q1 2024, reflecting increased investment in operations[24] - Research and development expenses were $37,400 million, slightly down from $37,676 million, with non-GAAP R&D at $27,451 million, or 22% of revenue[32] - Sales and marketing expenses increased to $19,631 million from $16,311 million, with non-GAAP sales and marketing at $14,478 million, or 11% of revenue[32] - General and administrative expenses rose to $28,827 million from $20,720 million, with non-GAAP G&A at $13,079 million, maintaining 10% of revenue[32] - Income from operations was $7,082 million, a significant improvement from a loss of $166 million in 2024[32] Guidance and Future Outlook - Guidance for Q2 2025 includes projected revenue of $129 million, representing approximately 21% year-over-year growth[8] - Full year 2025 revenue guidance is set between $720 million and $728 million, indicating a year-over-year growth of approximately 59% to 61%[9] Acquisitions - The company completed acquisitions of Enfusion and Beacon, aiming to enhance its investment management platform[7]