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Sep 30, 2021

Clearwater Q3 2021 Earnings Report

Reported revenue of $64.5 million, a 21% increase year-over-year, with a gross revenue retention rate of 98% and a net revenue retention rate of 111%.

Key Takeaways

Clearwater Analytics reported a strong third quarter in 2021, marked by a 21% increase in revenue to $64.5 million and robust retention rates. The company's net loss was $11.4 million, including a $10.3 million loss on debt extinguishment, while non-GAAP net income reached $8.7 million. Clearwater's ARR reached $257.0 million, reflecting continued growth and market penetration.

Revenue reached $64.5 million, up 21% year-over-year.

Gross profit was $46.7 million with a gross margin of 72.4%.

Net loss was $11.4 million, including a $10.3 million loss on debt extinguishment.

ARR reached $257.0 million, a 20% increase year-over-year.

Total Revenue
$64.5M
Previous year: $53.4M
+20.9%
EPS
$0.036
Previous year: $0.0665
-45.9%
Annual Recurring Revenue
$257M
Previous year: $215M
+19.6%
Gross Revenue Retention Rate
98%
Previous year: 98%
+0.0%
Net Revenue Retention Rate
111%
Previous year: 109%
+1.8%
Gross Profit
$46.7M
Previous year: $41M
+13.8%
Cash and Equivalents
$245M
Free Cash Flow
$6.03M
Total Assets
$327M

Clearwater

Clearwater

Forward Guidance

The company expects total revenue to be in the range of $66.0 million to $67.0 million for the fourth quarter of 2021. Adjusted EBITDA margin is expected to be approximately 26% for the fourth quarter of 2021.

Positive Outlook

  • Total revenue is expected to be in the range of $66.0 million to $67.0 million for the fourth quarter of 2021.
  • Implies full-year 2021 revenue of $248.3 million to $249.3 million.
  • Full-year revenue growth of 22% to 23%.
  • Adjusted EBITDA margin is expected to be approximately 26% for the fourth quarter of 2021.
  • Implies full-year 2021 adjusted EBITDA margin of approximately 28%.