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Sep 30, 2022
Clearwater Q3 2022 Earnings Report
Clearwater demonstrated strong performance in Q3 2022, achieving record quarterly revenue and expanding into new markets.
Key Takeaways
Clearwater Analytics reported a strong third quarter with record revenue of $76.6 million, a 19% increase year-over-year. The company won large and global organizations and is expanding its product portfolio through the acquisition of JUMP Technology.
Total revenue for the third quarter of 2022 reached $76.6 million, an increase of 19% year-over-year.
Non-GAAP net income for the third quarter of 2022 increased by 59% to $13.8 million.
As of September 30, 2022, annualized recurring revenue (ARR) reached $303.6 million, an increase of 18.1% year-over-year.
The company's gross revenue retention rate was 98% for the fifteenth consecutive quarter.
Clearwater
Clearwater
Forward Guidance
The company provided revenue guidance for Q4 2022 of $79.3 million to $81.3 million and full year 2022 revenue guidance of $300 million to $302 million.
Positive Outlook
- Revenue guidance for the fourth quarter of 2022 is between $79.3 million and $81.3 million.
- Full year 2022 revenue is expected to be between $300 million and $302 million.
- Year-over-year growth for Q4 revenue is projected to be approximately 14% to 16%.
- Full year 2022 year-over-year growth is expected to be approximately 19% to 20%.
- Adjusted EBITDA for Q4 2022 is guided to be between $22.2 million and $23.2 million.
Challenges Ahead
- Revenue guidance for the fourth quarter of 2022 assumes approximately $1 million in revenue from JUMP Technology post-acquisition.
- Achieving the revenue guidance is dependent on the timing of closing the JUMP Technology acquisition.
- Certain components of the guidance are provided on a non-GAAP basis without providing a reconciliation to guidance provided on a GAAP basis.
- The company does not have access to certain information that would be necessary to provide such a reconciliation, including non-recurring items.
- The company does not believe that this information is likely to be significant to an assessment of the company’s ongoing operations.