The following is a summary of the Clearwater Analytics Holdings, Inc. (CWAN) Q1 2024 Earnings Call Transcript:
Financial Performance:
Clearwater Analytics reported a year-over-year revenue growth of 21% to $102.7 million in Q1 2024.
The company's EBITDA also grew by 42.9% year-over-year to $32.2 million, equating to 31.3% of revenue.
Gross revenue retention achieved a formidable 99% due to impressively low churn rates.
Strong revenue growth was seen across all geographic markets; North America at 20%, and higher growth rates in Europe and Asia.
Adjusted EBITDA was reported to be $32.2 million and the gross profit amounted to $80.2 million.
Operating cash flow increased 26.5% year-over-year in Q1 and free cash flow also saw an elevation to $8.6 million, marking a 38.3% annual increase.
Business Progress:
Clearwater secured six significant clients in the quarter for its JUMP platform and additional clients across diverse industries and global markets.
The company introduced new products Quick LPx and Clearwater for Stable Value funds, contributing to a robust Net Revenue Retention (NRR) rate of 110% for the quarter.
Clearwater continued its international expansion, acquiring contracts in APAC, Germany, France, and the UK, accelerating its organic growth rate to 21.4% over Q1 2023.
Acquisitions such as JUMP and Wilshire Advisors' risk, performance and analytics platforms are expected to enhance capacities and scalability.
Clearwater Analytics is extending its range of products including LPx, JUMP, and Prism, aiming to solve clients' difficulties, and expanding its markets in Europe and Asia.
The company is observing growing clientele interest in the management of alternative assets, influencing discussions about the integration of alternative asset reporting with public securities.
The company's partnership with Welsh, Carson, XII, and Welsh, Carson, XIII marked a significant development, with the former fully exited its position in March 2024.
More details: Clearwater Analytics IR
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