Q3 2025 Clearwater Analytics Holdings Inc Earnings Call Transcript
Key Points
- Clearwater Analytics Holdings Inc (CWAN) reported a strong Q3 2025 with a 77% year-over-year revenue growth, reaching $205.1 million.
- The company's annualized recurring revenue (ARR) also grew by 77% year-over-year, reaching $807.5 million, showcasing the durability and predictability of its business model.
- Gross revenue retention rate was an impressive 98%, indicating strong client satisfaction and retention.
- Clearwater Analytics Holdings Inc (CWAN) achieved a gross margin of 78.5%, hitting targets sooner than expected, and demonstrating effective integration of acquisitions.
- The company is leveraging generative AI to drive significant improvements in gross margins and operational efficiencies, positioning itself as a leader in the industry.
- Net revenue retention rate declined slightly to 108% in Q3 from 110% in Q2, due to lower contributions from asset base upsells.
- The integration of acquisitions, while progressing well, still requires significant effort to fully realize synergies and optimize the combined platform.
- There is a noted lumpiness in ARR growth due to the timing of large deals, which can affect quarter-to-quarter comparisons.
- The company faces challenges in aligning the pricing and contract structures of acquired businesses with its core model, which is expected to take until the end of 2026.
- Despite strong growth, the company acknowledges that the competitive landscape requires continuous innovation and adaptation to maintain its market position.
Ladies and gentlemen, thank you for standing by and welcome to the CWA in 3rd quarter 2025 Financial results conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session.
And now I would like to welcome Camille Milcharik, head of investor relations, to begin the conference. You may proceed.
Thank you and welcome everyone to CO's 3rd 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 the 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 Security Litigation Reform Act of 1,995, expressions of future goals, intentions, and expectations, including in relation to
| 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
