Clearwater Q4 2024 Earnings Report
Key Takeaways
Clearwater Analytics achieved record revenue of $126.5 million in Q4 2024, marking a 27.7% YoY growth. Net income surged to $420.3 million, largely influenced by a one-time tax benefit. Adjusted EBITDA reached $41.7 million, reflecting a 39% YoY increase. The company also reported a net revenue retention rate of 116%, underscoring its strong client engagement and expansion efforts.
Q4 2024 revenue increased by 27.7% YoY to $126.5 million.
Net income surged to $420.3 million, driven by a one-time tax benefit.
Adjusted EBITDA rose 39% YoY to $41.7 million.
Net revenue retention rate reached 116%, reflecting strong client retention and expansion.
Clearwater Revenue
Clearwater EPS
Clearwater Revenue by Geographic Location
Forward Guidance
Clearwater projects steady growth in Q1 and FY 2025, with revenue expected at $125 million in Q1 and between $535.5 million and $542 million for the full year. Adjusted EBITDA margins are expected to remain strong at ~33% in Q1 and ~34% for FY 2025.
Positive Outlook
- Q1 2025 revenue guidance set at $125 million, reflecting ~22% YoY growth.
- Full-year 2025 revenue expected between $535.5 million and $542 million.
- Adjusted EBITDA projected at $41.5 million in Q1 2025, maintaining a ~33% margin.
- Strong demand in North America and international markets, particularly in Europe and Asia.
- The announced acquisition of Enfusion is expected to drive future revenue synergies.
Challenges Ahead
- Q1 2025 revenue guidance indicates a slight sequential decline from Q4 2024.
- Cash flows impacted by one-time settlement payments, leading to negative free cash flow in Q4 2024.
- High equity-based compensation costs remain a factor in expense management.
- Market uncertainties and macroeconomic conditions could affect future growth.
- Integration risks associated with the Enfusion acquisition may present short-term operational challenges.