Financial Data and Key Metrics Changes - The company reported Q3 2025 revenues of $205.1 million, reflecting a 77% year-on-year growth [4][20] - Annualized recurring revenue (ARR) reached $807.5 million, also up 77% year-over-year [4][20] - Adjusted quarterly EBITDA was $70.7 million, up from $58.3 million in Q2, with an EBITDA margin of 34.5%, an increase from 32.1% in Q2 [4][5][27] - Gross revenue retention (GRR) for the combined company was 98% [5][21] - Gross margin for the integrated business was 78.5%, with core Clearwater's steady-state clients achieving 82% gross margin [5][25] Business Line Data and Key Metrics Changes - Core Clearwater business grew approximately 21% year-to-date compared to last year [8] - Infusion is expected to grow 12% for the year, with strong booking execution in Q2 and Q3 [8] - Beacon continues to perform well, contributing to overall growth [8] - The hedge fund market was a key contributor to revenue upside, with significant growth in bookings across various sectors [9][20] Market Data and Key Metrics Changes - The total addressable market (TAM) has grown to approximately $23 billion, balanced across geographies and markets [6][8] - Growth in Q3 bookings was evenly spread across insurance, asset management, asset owners, and hedge funds [9] - The company signed a global multi-billion hedge fund client, indicating strong market demand [9] Company Strategy and Development Direction - The company aims to build an integrated, open, modular, and extensible front-to-back platform, which is expected to disrupt the industry [15][18] - Generative AI is seen as a key technological advancement, with the company leveraging it to improve margins and operational efficiency [16][18] - The company plans to roll out a new pricing model for Infusion starting January 1, 2026, aligning value with pricing for clients [39][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the competitive positioning and growth trajectory, with a strong pipeline for Q4 and beyond [20][29] - The company anticipates continued growth driven by cross-selling opportunities and the integration of new acquisitions [11][28] - Management highlighted the importance of maintaining high gross retention rates and the potential for net revenue retention to reach 115% [22][21] Other Important Information - The company has made significant progress in integrating the businesses acquired, with a focus on enhancing product offerings and client solutions [19][29] - Recent board appointments and leadership hires are expected to strengthen the company's strategic direction [19] Q&A Session Summary Question: What segments of the market are seeing elevated strength? - Management noted strong growth in alternatives, risk, and insurance sectors, with hedge funds also performing well in Q2 and Q3 [31][32][33] Question: How does the ARR growth of 17% reconcile with core business growth? - Management explained that larger deals create lumpiness in ARR, but overall revenue and organic ARR growth were strong [34][35] Question: What is the expected timing for the new pricing model for Infusion? - The new pricing model will be rolled out for new clients starting January 1, 2026, with existing clients to follow [39][40] Question: How is the international business performing? - The international business metrics remained consistent with previous quarters, contributing positively to overall performance [49][50] Question: What is the adoption rate of combined company assets? - Asset management has become the largest booking industry, with significant traction in risk-related offerings and alternatives [51][52]

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].