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Mar 31, 2023

Clearwater Q1 2023 Earnings Report

Reported record quarterly revenue with ARR reaching $337.4 million and net revenue retention rate of 106%.

Key Takeaways

Clearwater Analytics announced strong Q1 2023 financial results, with record quarterly revenue of $84.6 million, up 19.5% year-over-year. The company's ARR reached $337.4 million, and the net revenue retention rate was 106%. Adjusted EBITDA was $22.5 million, representing a 26.6% margin.

Total revenue for the first quarter of 2023 reached $84.6 million, an increase of 19.5% year-over-year.

ARR reached $337.4 million, an increase of 17.5% year-over-year.

The net revenue retention rate was 106%.

Adjusted EBITDA for the first quarter of 2023 was $22.5 million.

Total Revenue
$84.6M
Previous year: $70.8M
+19.5%
EPS
$0.07
Previous year: $0.05
+40.0%
Annual Recurring Revenue
$337M
Previous year: $287M
+17.5%
Gross Revenue Retention Rate
97%
Previous year: 98%
-1.0%
Net Revenue Retention Rate
106%
Previous year: 107%
-0.9%
Gross Profit
$59.8M
Previous year: $49.6M
+20.5%
Cash and Equivalents
$221M
Previous year: $264M
-16.3%
Free Cash Flow
$6.22M
Total Assets
$491M

Clearwater

Clearwater

Forward Guidance

Clearwater Analytics provided guidance for the second quarter and full year 2023.

Positive Outlook

  • Second Quarter 2023 Revenue: $87.5 million
  • Full Year 2023 Revenue: $362 million to $364 million
  • Year-over-Year Growth %: ~19%
  • Year-over-Year Growth %: ~19% to 20%
  • Adjusted EBITDA: $22.8 million

Challenges Ahead

  • Full Year 2023 Adjusted EBITDA: $97 million to $98 million
  • Equity-based compensation expense and related payroll taxes: ~$80 million
  • Equity-based compensation expense related to JUMP Technology acquisition: ~$25 million
  • Depreciation and Amortization: ~$9 million
  • Non-GAAP effective tax rate: 25%