Clearwater Q3 2023 Earnings Report
Key Takeaways
Clearwater Analytics announced its Q3 2023 financial results, reporting a 24% year-over-year increase in revenue to $94.7 million. The company's adjusted EBITDA grew by 51% year-over-year to $28.6 million, with an adjusted EBITDA margin of 30%.
Total revenue for the third quarter of 2023 was $94.7 million, an increase of 23.7% from $76.6 million in the third quarter of 2022.
Adjusted EBITDA for the third quarter of 2023 was $28.6 million, up from $18.8 million in the third quarter of 2022.
As of September 30, 2023, annualized recurring revenue (“ARR”) reached $362.4 million, an increase of 19.4% from $303.6 million as of September 30, 2022.
Net revenue retention rate was 108%.
Clearwater
Clearwater
Forward Guidance
Clearwater Analytics provided guidance for Q4 2023 and full year 2023.
Positive Outlook
- Q4 2023 Revenue: $98.5 million
- Q4 2023 Year-over-Year Growth: ~19%
- Q4 2023 Adjusted EBITDA: $28 million
- Q4 2023 Adjusted EBITDA Margin: ~28%
- Full Year 2023 Revenue: $367.6 million
Challenges Ahead
- Full Year 2023 Year-over-Year Growth: ~21%
- Full Year 2023 Adjusted EBITDA: $104 million
- Full Year 2023 Adjusted EBITDA Margin: ~28%
- Equity-based compensation expense and related payroll taxes: ~$80 million
- Equity-based compensation expense related to JUMP Technology acquisition: ~$25 million