Financial Data and Key Metrics Changes - Revenue for Q1 2022 grew 24% year over year to $70.8 million, marking a quarterly record [5][19] - Annualized recurring revenue (ARR) increased 23.5% year over year, reaching over $287 million [6][19] - Adjusted EBITDA for Q1 was $18.9 million, representing 26.7% of revenue [24] - Gross revenue retention remained at 98% for the 13th consecutive quarter, while net revenue retention was 107% [6][20] Business Line Data and Key Metrics Changes - The company reported strong client onboarding and an increase in total clients, contributing to revenue growth [19] - New product offerings, particularly Clearwater Prism, are gaining traction and expected to enhance revenue streams [14][16] Market Data and Key Metrics Changes - International revenue growth accounted for 13% of total revenues, up from 9% in the previous year [22] - The company signed its first French insurance client and first European foundation, indicating expansion into adjacent markets [11] Company Strategy and Development Direction - The company aims to continue investing in R&D and expanding its presence in international markets, particularly in Continental Europe and Asia [22][24] - Clearwater's platform is positioned as a disruptive solution in the investment operations space, with a focus on automation and efficiency [8][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for their solutions despite macroeconomic uncertainties, including rising interest rates and geopolitical tensions [28][42] - The company raised its full-year revenue guidance to a range of $303 million to $305 million, reflecting strong Q1 performance [27] Other Important Information - The company ended Q1 with $263.7 million in cash and cash equivalents, indicating a strong balance sheet [25] - Management highlighted the importance of maintaining a competitive edge through continuous innovation and investment in technology [85][86] Q&A Session Summary Question: Impact of interest rates on net revenue retention (NRR) - Management acknowledged that the interest rate environment has been slightly worse than expected, but strong bookings and a solid pipeline are helping to offset this [33][34][35] Question: Sustainability of revenue growth - Management believes that consistent performance in the 20% growth range is achievable, supported by strong client demand and successful product offerings [39][42] Question: Competitive landscape changes post-IPO - Management noted increased awareness of the company in the market but emphasized that win rates remain strong and unchanged [84][94] Question: Visibility into demand compared to past downturns - Management indicated that the current pipeline is robust and active, contrasting with the quiet demand seen during the early pandemic [80] Question: Wage inflation and hiring challenges - Management confirmed awareness of wage inflation but expressed confidence in their ability to attract talent and manage costs effectively [73][76]
Clearwater Analytics (CWAN) - 2022 Q1 - Earnings Call Transcript