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Dec 31, 2024
Clearwater Q4 2024 Earnings Report
Clearwater Analytics reported strong growth in Q4 2024, with record revenue and net income driven by strategic expansion and operational efficiency.
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.
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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