BOISE, Idaho--(BUSINESS WIRE)--Clearwater Analytics (NYSE: CWAN), a leading technology provider for investment management, today announced significant enhancements to its Alternative Assets Solution at its annual user conference, Connect '25, that directly address the scalability and compliance challenges facing the $2.5 trillion private credit market. The new capabilities automate bespoke loan structures, accelerate fund research with AI, synchronize data across asset owners and managers, and. ...

Financial Data and Key Metrics Changes - Total revenue grew 70% year on year to $181.9 million, with core business contributing $130.6 million, representing 22% year over year organic growth [6][21] - Annualized recurring revenue (ARR) was $783.5 million, up 83.4% year on year, with organic ARR at $513 million, an increase of 20% year on year [6][22] - Adjusted EBITDA was $58.3 million, representing 32.1% of revenue and up 74.3% year on year [6][24] - Non-GAAP gross margins were 77.4%, exceeding expectations despite the integration of lower-margin businesses [24] Business Line Data and Key Metrics Changes - The core Clearwater revenue continued to grow at 22%, driven by strong net revenue retention rates [21] - Infusion delivered the highest bookings in its history during the quarter, welcoming 49 new clients [23] - Beacon's risk capabilities showed strong performance across all client segments, indicating robust customer interest [23] Market Data and Key Metrics Changes - The company has seen growth in international insurance and global asset management, contributing to overall revenue growth [21] - The integration of acquired businesses has led to a solid performance, with revenue outpacing conservative forecasts [22] Company Strategy and Development Direction - The company aims to build a true front-to-back platform that integrates various capabilities to enhance client service and operational efficiency [14][15] - A focus on cross-selling and launching new products is planned to fuel growth, with dedicated teams for hedge funds and asset managers established [30][48] - The partnership with Bloomberg is expected to enhance offerings for large asset managers, providing a comprehensive front-to-back solution [19][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth and margin expansion, driven by operational efficiencies and generative AI initiatives [10][11] - The company anticipates a clear path to achieving its target of 115% net revenue retention over time [25] - Management highlighted the importance of client feedback and alignment in shaping future strategies and offerings [81] Other Important Information - The company achieved $20 million in synergies within the first few days of integration, surpassing initial targets [13] - GAAP results showed a loss due to increased intangible amortization and acquisition-related costs, but operating cash flow remained strong at $47.1 million [26] Q&A Session Summary Question: Organic ARR growth expectations for the full year - Management expects acceleration in organic ARR growth in the second half of the year, driven by improved revenue growth [34][36] Question: Insights on the Bloomberg partnership and its impact - The partnership with Bloomberg is expected to enhance capabilities for large asset managers, providing a comprehensive solution that was previously unavailable [38][41] Question: Disaggregation of ARR figures - Management confirmed the ARR figures for Clearwater, Infusion, and Beacon, indicating a clear understanding of revenue contributions from each segment [45][46] Question: NRR trends post-acquisition - The net revenue retention rate for the consolidated business is currently at 110%, with expectations for improvement as the integration progresses [57][58] Question: Guidance on organic versus non-organic growth - Management provided insights on expected growth rates for Clearwater and the acquired businesses, emphasizing a focus on maintaining a 20% growth rate for the core business [61][62] Question: Impact of generative AI on revenue growth - While generative AI has improved operational efficiency, the transition to revenue-generating products is expected to take time, with potential developments anticipated in 2025 [106][110]