•
Sep 30, 2024

Clearwater Q3 2024 Earnings Report

Clearwater Analytics reported record quarterly revenue, ARR growth, and strong adjusted EBITDA and cash flow generation.

Key Takeaways

Clearwater Analytics announced strong Q3 2024 results, with record revenue of $115.8 million, a 22% year-over-year increase. Annualized Recurring Revenue (ARR) reached $456.9 million, up 26% year-over-year. Net income was $4.8 million, and adjusted EBITDA grew by 34% to $38.3 million. The company also highlighted its investments in R&D and new products, as well as an agreement to terminate the Tax Receivable Agreement.

Clearwater Analytics achieved record quarterly revenue of $115.8 million, representing a 22% year-over-year increase.

Annualized Recurring Revenue (ARR) grew to $456.9 million, a 26% increase compared to the previous year.

The company reported net income of $4.8 million, a significant improvement from a net loss in the same quarter last year.

Adjusted EBITDA increased by 34% to $38.3 million, with a margin of 33.1%.

Total Revenue
$116M
Previous year: $94.7M
+22.4%
EPS
$0.12
Previous year: $0.09
+33.3%
Annual Recurring Revenue
$457M
Previous year: $362M
+26.1%
Gross Revenue Retention Rate
99%
Previous year: 98%
+1.0%
Net Revenue Retention Rate
114%
Previous year: 108%
+5.6%
Gross Profit
$84.5M
Previous year: $67.7M
+24.9%
Cash and Equivalents
$229M
Previous year: $206M
+11.2%
Free Cash Flow
$48.1M
Previous year: $30.9M
+55.7%
Total Assets
$623M
Previous year: $536M
+16.4%

Clearwater

Clearwater

Forward Guidance

Clearwater Analytics provided guidance for Q4 2024 and full year 2024.

Positive Outlook

  • Q4 2024 Revenue: $120.2 million
  • Q4 2024 Year-over-Year Growth: ~21%
  • Q4 2024 Adjusted EBITDA: $38.5 million
  • Q4 2024 Adjusted EBITDA Margin: ~32%
  • Full Year 2024 Revenue: $445.5 million

Challenges Ahead

  • Full Year 2024 Year-over-Year Growth: ~21%
  • Full Year 2024 Adjusted EBITDA: $142.5 million
  • Full Year 2024 Adjusted EBITDA Margin: ~32%
  • Total Equity-based compensation expense and related payroll taxes: ~$106 million
  • Depreciation and Amortization: ~$12 million