Clearwater Analytics Holdings Inc (CWAN, Financial), a leading provider of SaaS-based investment management, accounting, reporting, and analytics solutions, released its financial results for the quarter ended September 30, 2023, on November 1, 2023. The company reported a record quarterly revenue of $94.7 million, marking a 24% increase year-over-year. The Adjusted EBITDA also saw a significant increase of 51% year-over-year, reaching $28.6 million.
Financial Performance
The company's total revenue for Q3 2023 was $94.7 million, a 23.7% increase from $76.6 million in Q3 2022. The gross profit for the same period increased to $67.7 million, compared to $53.8 million in Q3 2022. The net loss for Q3 2023 was $2.3 million, compared to a net loss of $3.0 million in Q3 2022. The net loss for the third quarter included total equity-based compensation expense and related payroll taxes of $31.2 million.
Key Metrics Summary
As of September 30, 2023, the company's annualized recurring revenue (ARR) reached $362.4 million, a 19.4% increase from $303.6 million as of September 30, 2022. The gross revenue retention rate was 98%, consistent with the company's gross revenue retention rate as of September 30, 2022. The net revenue retention rate was 108%, compared to 109% as of June 30, 2023, and 103% as of September 30, 2022.
Business Highlights
Clearwater Analytics hosted its annual Clearwater Connect conference, bringing together more than 500 global in-person attendees. The company also announced the winners of its Client Awards, highlighting individuals, teams, and firms that have achieved growth, operational excellence, transformations, and more with Clearwater’s award-winning investment accounting platform. Additionally, Clearwater Analytics announced that Ofi Invest Asset Management, part of Ofi Invest Group and France’s fifth-largest asset management group with more than €187 billion under management, selected Clearwater’s platform to power its investment accounting management, reporting, and services.
Outlook
For the fourth quarter and full year 2023, Clearwater Analytics expects revenue to reach $98.5 million and $367.6 million, respectively, representing year-over-year growth of approximately 19% and 21%. The company also anticipates an Adjusted EBITDA of $28 million for Q4 2023 and $104 million for the full year 2023, with an Adjusted EBITDA Margin of approximately 28% for both periods.
Explore the complete 8-K earnings release (here) from Clearwater Analytics Holdings Inc for further details.
