Clearwater Analytics Announces Second Quarter 2024 Financial Results
Record Quarterly Revenue of
Net Income of
Gross Revenue Retention Rate of 99%; Net Revenue Retention Rate of 110%
Annualized Recurring Revenue of
Operating Cash Flows of
"We had a very strong quarter where ARR grew 22% year on year, revenue grew 19% and adjusted EBITDA grew 35%. Gross revenue retention was 99% for a second successive quarter, which is a strong reflection of the value our platform provides to our customers. Unit economics continues to be strong and ahead of stated goals because of the power of the single instance, multi-tenant platform and the network effect it produces. We continue to be very excited about client and prospect receptivity to the new products we are developing, often in partnership with our clients. These co-development efforts improve client satisfaction, drive revenue growth and make our innovation more targeted. Finally, our free cash flows grew by 117% compared to the previous year," said
Second Quarter 2024 Financial Results Summary
-
Revenue: Total revenue for the second quarter of 2024 was
$106.8 million , an increase of 18.8%, from$89.9 million in the second quarter of 2023. -
Gross Profit: Gross profit for the second quarter of 2024 increased to
$76.9 million , which equates to a 72.0% GAAP gross margin, compared with gross profit of$62.9 million and GAAP gross margin of 70.0% in the second quarter of 2023. Non-GAAP gross profit for the second quarter of 2024 was$82.7 million , which equates to a 77.5% non-GAAP gross margin and an increase of 170 basis points over the second quarter of 2023. -
Net Income/(Loss): Net income for the second quarter of 2024 was
$0.3 million , compared with net loss of$11.9 million in the second quarter of 2023. -
Adjusted EBITDA: Adjusted EBITDA for the second quarter of 2024 was
$33.4 million , an increase of 34.7%, from$24.8 million in the second quarter of 2023. Adjusted EBITDA margin for the second quarter of 2024 was 31.3%, an increase of 370 basis points over the second quarter of 2023. -
Cash Flows: Operating cash flows for the second quarter of 2024 were
$43.9 million . Free cash flows for the second quarter of 2024 were$42.4 million , an increase of 116.9%, from$19.6 million in the second quarter of 2023. Cash flows improved from both stronger income as well as positive working capital changes from better collections in the quarter. -
Net Loss Per Share and Non-GAAP Net Income Per Share attributable to
Clearwater Analytics Holdings, Inc. : Net loss per basic and diluted share was less than$0.01 in the second quarter of 2024. Non-GAAP net income per basic share was$0.12 , and non-GAAP net income per diluted share was$0.10 in the second quarter of 2024. -
Cash, cash equivalents, and investments were
$297.6 million as ofJune 30, 2024 . Total debt, net of debt issuance cost, was$47.9 million as ofJune 30, 2024 .
Second Quarter 2024 Key Metrics Summary
-
Annualized Recurring Revenue: As of
June 30, 2024 , annualized recurring revenue ("ARR") reached$427.2 million , an increase of 22.2% from$349.5 million as ofJune 30, 2023 .
ARR is calculated at the end of a period by dividing the recurring revenue in the last month of such period by the number of days in the month and multiplying by 365.
-
Gross Revenue Retention Rate: As of
June 30, 2024 , the gross revenue retention rate was 99%, compared to 98% as ofJune 30, 2023 .
Gross revenue retention rate represents annual contract value ("ACV") at the beginning of the 12-month period ended on the reporting date less client attrition over the prior 12-month period, divided by ACV at the beginning of the 12-month period, expressed as a percentage. ACV is comprised of annualized recurring revenue plus contracted-not-billed revenue, which represents the estimated annual contracted revenue for new and existing client opportunities prior to revenue recognition.
-
Net Revenue Retention Rate: As of
June 30, 2024 , the net revenue retention rate was 110%, compared to 110% as ofMarch 31, 2024 and to 109% as ofJune 30, 2023 .
Net revenue retention rate is the percentage of recurring revenue from clients on the platform for 12 months and includes changes from the addition, removal, or value of assets on our platform, contractual changes that have an impact to annualized recurring revenues and lost revenue from client attrition.
Recent Business Highlights
-
Clearwater Analytics continued on its journey towards being a multi-product company and successfully drove cross-sell and upsell in the second quarter. Highlights include:- Clearwater PRISM clients, including
Erste Asset Management GmbH and M&G Investments, have adopted Clearwater PRISM for enhanced client portal and reporting. Clearwater announced thatErste Asset Management GmbH , one of the leading asset managers in Central andEastern Europe and managing €81.4 billion in assets, will leverage Clearwater PRISM to aggregate multi-asset client investment data, help increase asset flows and strengthen client service. M&G Investments, a leading international asset manager and part of M&G plc, selected Clearwater to automate investment management and regulatory reporting and support the complex needs of M&G's global insurance clients. With a white-labeled version of Clearwater's platform, M&G's insurance clients will have access to an M&G web portal and rely on Clearwater PRISM for monthly report generation, providing M&G's insurance clients with a complete view of their investments and the ability to meet complex multi-basis accounting requirements. - A growing roster of clients use both Clearwater's JUMP solution for OMS/PMS and Clearwater's accounting and reconciliation solution.
Clearwater Analytics announced that Galilee Asset Management ("Galilee AM") selectedClearwater Analytics as its enterprise standard for investment management. Galilee AM will deployClearwater Analytics to support its rapid growth and consolidate its activities after acquiring several investment management companies. - The Clearwater for Stable Value solution was selected by
Franklin Templeton to help drive the growth of its stable value fund business. Clearwater for Stable Value will provideFranklin Templeton with scalable investment technology, daily portfolio insights, and stable value-specific capabilities to support its expansion into separate accounts and new mandates.Franklin Templeton's team will leverage this enhanced technology to effectively handle the nuanced aspects of managing stable value funds, including complex fund structures, securities, and specialized accounting treatment. Clearwater Analytics announced that AXA XL's alternative capital team selected Clearwater to provide strategic support for a portion of its investment portfolio. As one of the world's largest property and casualty re/insurers, AXA XL provides insurance and risk management products and services for mid-sized companies through to large multinationals, and reinsurance solutions to insurance companies globally. Clearwater was chosen for its proven reliability, accuracy, and comprehensive ability to meet their complex accounting book of record and regulatory requirements, including customized general ledger entries.
- Clearwater PRISM clients, including
-
Clearwater Analytics hosted Clearwater Connect inLondon in the second quarter, where attendees gained valuable insight from top leaders in the industry, connected with over 150+ of their peers from around the world, and participated in expert-led discussions on topics such as trends in alternative investing, navigating regulations, managing investments in turbulent times and more. Clearwater announced the winners of its Client Awards, highlighting teams and firms that have achieved growth and operational excellence in investment accounting with Clearwater's award-winning investment accounting platform. Company winners included Aegon AM, Antares, Aviva, Resolution Re, andRiverStone International . - On the heels of our successful Clearwater Connect users' conference, the Company plans to host another Clearwater Connect in
Boise onSeptember 17-18, 2024 , where current and prospective users will have the opportunity to significantly enhance their knowledge of the world's most comprehensive investment management, accounting, and reporting solutions. -
Clearwater Analytics published its 2024 Insurance Investment Outsourcing Report ("2024 IIOR"), the eleventh annual 'Yellow Pages' of insurance-focused asset managers and a go-to resource for insurance firms outsourcing investment management. The 2024 IIOR includes 70 asset managers and 12 investment consultants, the latter which are new for this year. This report is highly regarded in the industry and leveraged by numerous insurers to identify asset managers and consultants who focus on their space. The report shows the outsourcing trend continues to grow with$3.6 trillion in insurance AUM reported, and over$900 million of consultant assets under advisement. -
Clearwater Analytics announced the release of its 2024 State of Alternatives study. The report, encompassing over 230 executive participants from sectors including insurance, wealth and asset management, corporate and government entities, pensions and endowments with$10 trillion in assets under management (AUM), delivers an overview of the emerging trends, opportunities and challenges related to alternative investments. The 2024 State of Alternatives study highlighted key factors and developments — including that 55% of institutional investors plan to boost their alternative investments — that will shape the alternatives landscape over the short-, medium- and long- term. Per the study, respondents were unanimous about needing better resources and technology to efficiently manage alternative investments and mitigate the impact of regulatory and operational challenges. -
Clearwater Analytics won the RegTech Insight Europe Awards 2024 for Best ESG Regulatory Solution. This recognition highlights Clearwater's commitment to simplifying ESG data collection, data analysis, risk management, disclosure and reporting for its growing base of global clients.
Third Quarter and Full Year 2024 Guidance
|
Third Quarter 2024 |
|
Full Year 2024 |
Revenue |
|
|
|
Year-over-Year Growth % |
~19% to 20% |
|
~20% to 21% |
Adjusted EBITDA |
|
|
|
Adjusted EBITDA Margin % |
~32% |
|
~32% |
Total Equity-based compensation expense and related payroll taxes |
|
|
|
Depreciation and Amortization |
|
|
|
Non-GAAP effective tax rate |
|
|
25 % |
Diluted non-GAAP share count |
|
|
~258 million |
Certain components of the guidance given above are provided on a non-GAAP basis only without providing a reconciliation to guidance provided on a GAAP basis. Information is presented in this manner because the preparation of such a reconciliation could not be accomplished without "unreasonable efforts." The Company does not have access to certain information that would be necessary to provide such a reconciliation, including non-recurring items that are not indicative of the Company's ongoing operations. The Company does not believe that this information is likely to be significant to an assessment of the Company's ongoing operations.
Conference Call Details
A live webcast of the call will also be available on the Company's investor relations website. Please visit investors.clearwateranalytics.com at least fifteen minutes prior to the start of the event to register, download and install any necessary audio software.
If you are unable to participate live, a replay of the webcast will be available following the conference call on the Company's investor relations website, along with the earnings press release, and related financial tables.
About
###
Use of non-GAAP Information
This press release contains certain non-GAAP measures, including non-GAAP gross profit, non-GAAP gross margin, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP effective tax rate, diluted non-GAAP share count and free cash flow.
The non-GAAP measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. However, the Company believes that this non-GAAP information is useful as an additional means for investors to evaluate its operating performance, when reviewed in conjunction with its GAAP financial statements. These measures should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP, and because these amounts are not determined in accordance with GAAP, they should not be used exclusively in evaluating the Company's business and operations. In addition, undue reliance should not be placed upon non-GAAP or operating information because this information is neither standardized across companies nor subjected to the same control activities and audit procedures that produce the Company's GAAP financial results.
The Company's non-GAAP statement of operations measures, including non-GAAP gross profit, non-GAAP gross margin, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP effective tax rate, diluted non-GAAP share count and free cash flow, are adjusted to exclude the impact of certain costs, expenses, gains and losses and other specified items that management believes are not indicative of its ongoing operations. These adjusted measures exclude the impact of share-based compensation and eliminate potential differences in results of operations between periods caused by factors such as financing and capital structures, taxation positions or regimes, restructuring, transaction expenses, impairment and other charges.
Please refer to the reconciliations of these measures below to what the Company believes are the most directly comparable measures evaluated in accordance with GAAP.
Use of Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's beliefs and assumptions and on information currently available to management. Forward-looking statements include information concerning the Company's possible or assumed future results of operations, business strategies, technology developments, financing and investment plans, dividend policy, competitive position, industry, economic and regulatory environment, potential growth opportunities and the effects of competition. Forward-looking statements include statements that are not historical facts and can be identified by terms such as "anticipate," "believe," "could," "estimate," "expect," "intend," "aim," "may," "plan," "potential," "predict," "project," "seek," "should," "will," "would" or similar expressions and the negatives of those terms, but are not the exclusive means of identifying such statements.
Forward-looking statements involve known and unknown risks, uncertainties, and other factors, many of which are beyond
Given these uncertainties, you should not place undue reliance on forward-looking statements. Also, forward-looking statements represent management's beliefs and assumptions only as of the date of this press release and should not be relied upon as representing
###
|
|||
Consolidated Balance Sheets |
|||
(In thousands, except share amounts and per share amounts, unaudited) |
|||
|
|||
|
|
|
|
|
2024 |
|
2023 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ 190,095 |
|
$ 221,765 |
Short-term investments |
67,819 |
|
74,457 |
Accounts receivable, net |
97,220 |
|
92,091 |
Prepaid expenses and other current assets |
27,577 |
|
27,683 |
Total current assets |
382,711 |
|
415,996 |
Property and equipment, net |
15,158 |
|
15,349 |
Operating lease right-of-use assets, net |
28,084 |
|
22,554 |
Deferred contract costs, non-current |
5,845 |
|
6,439 |
Intangible assets, net |
34,607 |
|
26,132 |
|
72,245 |
|
45,338 |
Long-term investments |
39,718 |
|
21,495 |
Other non-current assets |
6,779 |
|
5,440 |
Total assets |
$ 585,147 |
|
$ 558,743 |
Liabilities and Stockholders' Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ 2,962 |
|
$ 3,062 |
Accrued expenses and other current liabilities |
49,844 |
|
49,535 |
Notes payable, current portion |
2,750 |
|
2,750 |
Operating lease liability, current portion |
7,696 |
|
6,551 |
Tax receivable agreement liability |
16,749 |
|
18,894 |
Total current liabilities |
80,001 |
|
80,792 |
Notes payable, less current maturities and unamortized debt issuance costs |
45,183 |
|
45,828 |
Operating lease liability, less current portion |
21,306 |
|
16,948 |
Tax receivable agreement, less current portion |
6,500 |
|
— |
Other long-term liabilities |
3,486 |
|
5,518 |
Total liabilities |
156,476 |
|
149,086 |
Stockholders' Equity |
|
|
|
Class A common stock, par value |
160 |
|
128 |
Class B common stock, par value |
— |
|
— |
Class C common stock, par value |
27 |
|
33 |
Class D common stock, par value |
58 |
|
83 |
Additional paid-in-capital |
549,580 |
|
532,507 |
Accumulated other comprehensive income |
832 |
|
2,909 |
Accumulated deficit |
(170,050) |
|
(181,331) |
Total stockholders' equity attributable to |
380,607 |
|
354,329 |
Non-controlling interests |
48,064 |
|
55,328 |
Total stockholders' equity |
428,671 |
|
409,657 |
Total liabilities and stockholders' equity |
$ 585,147 |
|
$ 558,743 |
|
||||||||||||||
Consolidated Statements of Operations |
||||||||||||||
(In thousands, except share amounts and per share amounts, unaudited) |
||||||||||||||
|
||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||
Revenue |
$ 106,791 |
|
$ 89,879 |
|
$ 209,510 |
|
$ 174,485 |
|||||||
Cost of revenue(1) |
29,890 |
|
26,954 |
|
58,069 |
|
51,779 |
|||||||
Gross profit |
76,901 |
|
62,925 |
|
151,441 |
|
122,706 |
|||||||
Operating expenses: |
|
|
|
|
|
|
|
|||||||
Research and development(1) |
35,360 |
|
29,848 |
|
73,036 |
|
57,948 |
|||||||
Sales and marketing(1) |
15,169 |
|
14,331 |
|
31,480 |
|
29,029 |
|||||||
General and administrative(1) |
22,528 |
|
25,871 |
|
43,248 |
|
49,177 |
|||||||
Total operating expenses |
73,057 |
|
70,050 |
|
147,764 |
|
136,154 |
|||||||
Income (loss) from operations |
3,844 |
|
(7,125) |
|
3,677 |
|
(13,448) |
|||||||
Interest income, net |
(1,841) |
|
(1,333) |
|
(3,901) |
|
(2,689) |
|||||||
Tax receivable agreement expense |
5,915 |
|
6,573 |
|
6,201 |
|
6,678 |
|||||||
Other income, net |
(585) |
|
(315) |
|
(1,115) |
|
(234) |
|||||||
Income (loss) before income taxes |
355 |
|
(12,050) |
|
2,492 |
|
(17,203) |
|||||||
Provision for (benefit from) income taxes |
79 |
|
(174) |
|
(19) |
|
90 |
|||||||
Net income (loss) |
276 |
|
(11,876) |
|
2,511 |
|
(17,293) |
|||||||
Less: Net income (loss) attributable to non-controlling |
706 |
|
(955) |
|
1,044 |
|
(1,988) |
|||||||
Net income (loss) attributable to Clearwater |
$ (430) |
|
$ (10,921) |
|
$ 1,467 |
|
$ (15,305) |
|||||||
|
|
|
|
|
|
|
|
|||||||
Net income (loss) per share attributable to Class A and |
|
|
|
|
|
|
|
|||||||
Basic |
$ (0.00) |
|
$ (0.06) |
|
$ 0.01 |
|
$ (0.08) |
|||||||
Diluted |
$ (0.00) |
|
$ (0.06) |
|
$ 0.01 |
|
$ (0.08) |
|||||||
|
|
|
|
|
|
|
|
|||||||
Weighted average shares of Class A and Class D |
|
|
|
|
|
|
|
|||||||
Basic |
218,349,567 |
|
198,046,275 |
|
215,804,515 |
|
195,865,881 |
|||||||
Diluted |
218,349,567 |
|
198,046,275 |
|
254,208,965 |
|
195,865,881 |
|||||||
|
||||||||||||||
(1) Amounts include equity-based compensation as follows: |
||||||||||||||
|
||||||||||||||
Cost of revenue |
$ 3,273 |
|
$ 3,248 |
|
$ 6,419 |
|
$ 5,491 |
|||||||
Operating expenses: |
|
|
|
|
|
|
|
|||||||
Research and development |
9,182 |
|
5,971 |
|
18,093 |
|
10,626 |
|||||||
Sales and marketing |
2,692 |
|
3,246 |
|
6,513 |
|
7,211 |
|||||||
General and administrative |
9,711 |
|
16,105 |
|
18,058 |
|
28,442 |
|||||||
Total equity-based compensation expense |
$ 24,858 |
|
$ 28,570 |
|
$ 49,083 |
|
$ 51,770 |
|
|||||||
Consolidated Statements of Cash Flows |
|||||||
(In thousands, unaudited) |
|||||||
|
|||||||
|
Three Months Ended |
Six Months Ended |
|||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
Net income (loss) |
$ 276 |
|
$ (11,876) |
|
$ 2,511 |
|
$ (17,293) |
Adjustments to reconcile net income (loss) to net cash provided by |
|
|
|
|
|
|
|
Depreciation and amortization |
2,941 |
|
2,412 |
|
5,491 |
|
4,860 |
Noncash operating lease cost |
2,312 |
|
1,917 |
|
4,545 |
|
3,769 |
Equity-based compensation |
24,858 |
|
28,570 |
|
49,083 |
|
51,770 |
Amortization of deferred contract acquisition costs |
1,196 |
|
1,150 |
|
2,413 |
|
2,351 |
Amortization of debt issuance costs, included in interest expense |
70 |
|
69 |
|
140 |
|
139 |
Deferred tax benefit |
(970) |
|
(174) |
|
(1,992) |
|
(210) |
Accretion of discount on investments |
(602) |
|
(380) |
|
(1,177) |
|
(396) |
Realized (gain) loss on investments |
24 |
|
(18) |
|
24 |
|
(89) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
Accounts receivable, net |
(42) |
|
(3,759) |
|
(4,718) |
|
(9,898) |
Prepaid expenses and other assets |
3,105 |
|
1,046 |
|
(1,093) |
|
(540) |
Deferred contract acquisition costs |
(1,024) |
|
(701) |
|
(1,771) |
|
(1,287) |
Accounts payable |
271 |
|
395 |
|
335 |
|
100 |
Accrued expenses and other liabilities |
5,256 |
|
(4,410) |
|
(4,183) |
|
(11,204) |
Tax receivable agreement liability |
6,199 |
|
6,895 |
|
4,355 |
|
7,000 |
Net cash provided by operating activities |
43,870 |
|
21,136 |
|
53,963 |
|
29,072 |
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
Purchases of property and equipment |
(1,454) |
|
(1,576) |
|
(2,947) |
|
(3,293) |
Purchase of held to maturity investments |
(3,009) |
|
— |
|
(3,009) |
|
— |
Purchases of available-for-sale investments |
(35,493) |
|
(57,523) |
|
(67,390) |
|
(91,684) |
Proceeds from sale of available-for-sale investments |
— |
|
3,960 |
|
— |
|
5,950 |
Proceeds from maturities of investments |
38,307 |
|
2,000 |
|
59,842 |
|
3,242 |
Acquisition of business, net of cash acquired |
(40,121) |
|
— |
|
(40,121) |
|
— |
Payment of initial direct costs for operating leases |
(104) |
|
— |
|
(104) |
|
— |
Net cash used in investing activities |
(41,874) |
|
(53,139) |
|
(53,729) |
|
(85,785) |
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
Proceeds from exercise of options |
5 |
|
486 |
|
109 |
|
3,179 |
Taxes paid related to net share settlement of equity awards |
(4,307) |
|
(1,172) |
|
(33,081) |
|
(8,447) |
Repayments of borrowings |
— |
|
(687) |
|
(688) |
|
(1,374) |
Payment of business acquisition holdback liability |
— |
|
— |
|
(780) |
|
— |
Proceeds from employee stock purchase plan |
2,795 |
|
2,595 |
|
2,795 |
|
2,595 |
Tax distributions |
— |
|
— |
|
(8) |
|
— |
Net cash used in financing activities |
(1,507) |
|
1,222 |
|
(31,653) |
|
(4,047) |
Effect of exchange rate changes on cash and cash equivalents |
(38) |
|
152 |
|
(251) |
|
252 |
Change in cash and cash equivalents during the period |
451 |
|
(30,629) |
|
(31,670) |
|
(60,508) |
Cash and cash equivalents, beginning of period |
189,644 |
|
220,845 |
|
221,765 |
|
250,724 |
Cash and cash equivalents, end of period |
$ 190,095 |
|
$ 190,216 |
|
$ 190,095 |
|
$ 190,216 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW |
|
|
|
|
|
|
|
Cash paid for interest |
$ 851 |
|
$ 870 |
|
$ 1,762 |
|
$ 2,220 |
Cash paid for income taxes |
$ 144 |
|
$ 759 |
|
$ 590 |
|
$ 1,068 |
NON-CASH INVESTING AND FINANCING ACTIVITIES |
|
|
|
|
|
|
|
Purchase of property and equipment included in accounts payable |
$ 55 |
|
$ 1 |
|
$ 55 |
|
$ 1 |
Tax distributions payable to Continuing Equity Owners included in |
$ 3,209 |
|
$ 3,994 |
|
$ 3,209 |
|
$ 3,994 |
|
|||||||
Reconciliation of Net Loss to Adjusted EBITDA |
|||||||
(In thousands, unaudited) |
|||||||
|
|||||||
|
Three Months Ended |
||||||
|
2024 |
|
2023 |
||||
|
(in thousands, except percentages) |
||||||
Net income (loss) |
$ 276 |
|
0 % |
|
$ (11,876) |
|
(13 %) |
Adjustments: |
|
|
|
|
|
|
|
Interest income, net |
(1,841) |
|
(2 %) |
|
(1,333) |
|
(1 %) |
Depreciation and amortization |
2,941 |
|
3 % |
|
2,412 |
|
3 % |
Equity-based compensation expense and related |
25,151 |
|
24 % |
|
28,685 |
|
32 % |
Tax receivable agreement expense |
5,915 |
|
6 % |
|
6,573 |
|
7 % |
Transaction expenses |
875 |
|
1 % |
|
257 |
|
0 % |
Other expenses(1) |
131 |
|
0 % |
|
108 |
|
0 % |
Adjusted EBITDA |
33,448 |
|
31 % |
|
24,826 |
|
28 % |
Revenue |
$ 106,791 |
|
100 % |
|
$ 89,879 |
|
100 % |
|
|
||||||
|
Six Months Ended |
||||||
|
2024 |
|
2023 |
||||
|
(in thousands, except percentages) |
||||||
Net income (loss) |
$ 2,511 |
|
1 % |
|
$ (17,293) |
|
(10 %) |
Adjustments: |
|
|
|
|
|
|
|
Interest income, net |
(3,901) |
|
(2 %) |
|
(2,689) |
|
(2 %) |
Depreciation and amortization |
5,491 |
|
3 % |
|
4,860 |
|
3 % |
Equity-based compensation expense and related |
53,632 |
|
26 % |
|
53,192 |
|
30 % |
Tax receivable agreement expense |
6,201 |
|
3 % |
|
6,678 |
|
4 % |
Transaction expenses |
1,678 |
|
1 % |
|
1,550 |
|
1 % |
Other expenses(1) |
38 |
|
0 % |
|
1,069 |
|
1 % |
Adjusted EBITDA |
65,650 |
|
31 % |
|
47,367 |
|
27 % |
Revenue |
$ 209,510 |
|
100 % |
|
$ 174,485 |
|
100 % |
|
(1) Other expenses include gain on investments, management fees to our investors, income taxes, and foreign exchange gains and losses. |
|
|
Three Months Ended |
|
Six Months Ended |
||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
(in thousands) |
||||||
Amortization of prepaid management fees and |
637 |
|
597 |
|
1,172 |
|
1,213 |
Provision for (benefit from) income tax expense |
79 |
|
(174) |
|
(19) |
|
90 |
Other income, net |
(585) |
|
(315) |
|
(1,115) |
|
(234) |
Total other expenses |
$ 131 |
|
$ 108 |
|
$ 38 |
|
$ 1,069 |
|
|||||||
Reconciliation of Free Cash Flow |
|||||||
(In thousands, unaudited) |
|||||||
|
|||||||
|
Three Months Ended |
|
Six Months Ended |
||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Net cash provided by operating activities |
$ 43,870 |
|
$ 21,136 |
|
$ 53,963 |
|
$ 29,072 |
Less: Purchases of property and equipment |
1,454 |
|
1,576 |
|
2,947 |
|
3,293 |
Free Cash Flow |
$ 42,416 |
|
$ 19,560 |
|
$ 51,016 |
|
$ 25,779 |
|
|||||||
Reconciliation of Non-GAAP Information |
|||||||
(In thousands, except share amounts and per share amounts, unaudited) |
|||||||
|
|||||||
|
Three Months Ended |
|
Six Months Ended |
||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Revenue |
$ 106,791 |
|
$ 89,879 |
|
$ 209,510 |
|
$ 174,485 |
|
|
|
|
|
|
|
|
Gross profit |
$ 76,901 |
|
$ 62,925 |
|
$ 151,441 |
|
$ 122,706 |
Adjustments: |
|
|
|
|
|
|
|
Equity-based compensation expense and related |
3,318 |
|
3,260 |
|
6,840 |
|
5,735 |
Depreciation and amortization |
2,494 |
|
1,930 |
|
4,596 |
|
3,903 |
Gross profit, non-GAAP |
$ 82,713 |
|
$ 68,115 |
|
$ 162,877 |
|
$ 132,344 |
As a percentage of revenue, non-GAAP |
77 % |
|
76 % |
|
78 % |
|
76 % |
|
|
|
|
|
|
|
|
Cost of Revenue |
$ 29,890 |
|
$ 26,954 |
|
$ 58,069 |
|
$ 51,779 |
Adjustments: |
|
|
|
|
|
|
|
Equity-based compensation expense and related |
3,318 |
|
3,260 |
|
6,840 |
|
5,735 |
Depreciation and amortization |
2,494 |
|
1,930 |
|
4,596 |
|
3,903 |
Cost of revenue, non-GAAP |
$ 24,078 |
|
$ 21,764 |
|
$ 46,633 |
|
$ 42,141 |
As a percentage of revenue, non-GAAP |
23 % |
|
24 % |
|
22 % |
|
24 % |
|
|
|
|
|
|
|
|
Research and development |
$ 35,360 |
|
$ 29,848 |
|
$ 73,036 |
|
$ 57,948 |
Adjustments: |
|
|
|
|
|
|
|
Equity-based compensation expense and related |
9,306 |
|
6,028 |
|
21,180 |
|
11,147 |
Depreciation and amortization |
164 |
|
253 |
|
365 |
|
531 |
Research and development, non-GAAP |
$ 25,890 |
|
$ 23,567 |
|
$ 51,491 |
|
$ 46,270 |
As a percentage of revenue, non-GAAP |
24 % |
|
26 % |
|
25 % |
|
27 % |
|
|
|
|
|
|
|
|
Sales and marketing |
$ 15,169 |
|
$ 14,331 |
|
$ 31,480 |
|
$ 29,029 |
Adjustments: |
|
|
|
|
|
|
|
Equity-based compensation expense and related |
2,772 |
|
3,262 |
|
6,941 |
|
7,587 |
Depreciation and amortization |
155 |
|
145 |
|
290 |
|
298 |
Sales and marketing, non-GAAP |
$ 12,242 |
|
$ 10,924 |
|
$ 24,249 |
|
$ 21,144 |
As a percentage of revenue, non-GAAP |
11 % |
|
12 % |
|
12 % |
|
12 % |
|
|
|
|
|
|
|
|
General and administrative |
$ 22,528 |
|
$ 25,871 |
|
$ 43,248 |
|
$ 49,177 |
Adjustments: |
|
|
|
|
|
|
|
Equity-based compensation expense and related |
9,755 |
|
16,135 |
|
18,671 |
|
28,723 |
Depreciation and amortization |
128 |
|
84 |
|
240 |
|
128 |
Amortization of prepaid management fees and |
637 |
|
597 |
|
1,172 |
|
1,213 |
Transaction expenses |
875 |
|
257 |
|
1,678 |
|
1,550 |
General and administrative, non-GAAP |
$ 11,133 |
|
$ 8,798 |
|
$ 21,487 |
|
$ 17,563 |
As a percentage of revenue, non-GAAP |
10 % |
|
10 % |
|
10 % |
|
10 % |
|
|
|
|
|
|
|
|
Loss from operations |
$ 3,844 |
|
$ (7,125) |
|
$ 3,677 |
|
$ (13,448) |
Adjustments: |
|
|
|
|
|
|
|
Equity-based compensation expense and related |
25,151 |
|
28,685 |
|
53,632 |
|
53,192 |
Depreciation and amortization |
2,941 |
|
2,412 |
|
5,491 |
|
4,860 |
Amortization of prepaid management fees and |
637 |
|
597 |
|
1,172 |
|
1,213 |
Transaction expenses |
875 |
|
257 |
|
1,678 |
|
1,550 |
Income from operations, non-GAAP |
$ 33,448 |
|
$ 24,826 |
|
$ 65,650 |
|
$ 47,367 |
As a percentage of revenue, non-GAAP |
31 % |
|
28 % |
|
31 % |
|
27 % |
|
|
|
|
|
|
|
|
Net income (loss) |
$ 276 |
|
$ (11,876) |
|
$ 2,511 |
|
$ (17,293) |
Adjustments: |
|
|
|
|
|
|
|
Equity-based compensation expense and related |
25,151 |
|
28,685 |
|
53,632 |
|
53,192 |
Depreciation and amortization |
2,941 |
|
2,412 |
|
5,491 |
|
4,860 |
Tax receivable agreement expense |
5,915 |
|
6,573 |
|
6,201 |
|
6,678 |
Amortization of prepaid management fees and |
637 |
|
597 |
|
1,172 |
|
1,213 |
Transaction expenses |
875 |
|
257 |
|
1,678 |
|
1,550 |
Tax impacts of adjustments to net income (loss)(1) |
(8,968) |
|
(6,619) |
|
(17,667) |
|
(12,570) |
Net income, non-GAAP |
$ 26,827 |
|
$ 20,029 |
|
$ 53,018 |
|
$ 37,630 |
As a percentage of revenue, non-GAAP |
25 % |
|
22 % |
|
25 % |
|
22 % |
|
|
|
|
|
|
|
|
Net income per share - basic, non-GAAP |
$ 0.12 |
|
$ 0.10 |
|
$ 0.25 |
|
$ 0.19 |
Net income per share - diluted, non-GAAP |
$ 0.10 |
|
$ 0.08 |
|
$ 0.21 |
|
$ 0.15 |
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding - basic |
218,349,567 |
|
198,046,275 |
|
215,804,515 |
|
195,865,881 |
Weighted-average common shares outstanding - |
256,090,273 |
|
252,249,228 |
|
254,208,965 |
|
256,412,731 |
|
(1) The non-GAAP effective tax rate was 25% for the three and six months ended |
View original content to download multimedia:https://www.prnewswire.com/news-releases/clearwater-analytics-announces-second-quarter-2024-financial-results-302211441.html
SOURCE