Q1 2025 Clearwater Analytics Holdings Inc Earnings Call Transcript
Key Points
- Clearwater Analytics Holdings Inc (CWAN) reported strong revenue growth of 23.5% year-over-year, reaching $126.9 million for Q1 2025.
- The company achieved a record high gross margin of 78.9%, showing significant improvement from previous years.
- Adjusted EBITDA for Q1 2025 was $45.1 million, representing a 35.5% margin and a 40% increase year-over-year.
- The company has a high client retention rate with a gross revenue retention rate of 98% and a net revenue retention rate of 114%.
- Strategic acquisitions of Enfusion, Beacon, and Bistro are expected to enhance Clearwater's platform, offering a comprehensive cloud-native investment management solution.
- The net revenue retention rate decreased slightly from 116% in the previous quarter to 114% in Q1 2025, indicating a slight reduction in client expansion.
- Equity-based compensation expenses remain high, representing 21.7% of Q1 revenue.
- The integration of recent acquisitions may pose challenges and could take time to realize expected synergies and growth acceleration.
- The company faces potential macroeconomic risks that could impact future growth, as indicated by the cautious guidance provided.
- There is a 15% dilution in shares due to recent acquisitions, which may affect shareholder value in the short term.
Ladies and gentlemen, thank you for standing by and welcome to the Clearwater Analytics First Quarter 2025 Financial Results Conference Call. (Operator Instructions) And now I would like to turn the conference over to Joon Park, Head of Investor Relations, to begin the conference. Joon, please proceed.
Thank you, and welcome, everyone, to Clearwater Analytics First Quarter 2025 Financial Results Conference Call. Joining me on the call today are Sandeep Sahai, Chief Executive Officer; and Jim Cox, Chief Financial Officer. After their remarks, we will open the call to a question-and-answer session.
I would like to remind all participants that during this conference call, any forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Expressions of future goals, intentions and expectations, including in relation to business outlook, future financial and product performance, expectations for the acquisition of
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
