Net income (loss) [USD, thousands]

Depreciation and amortization [USD, thousands]

Noncash operating lease cost [USD, thousands]

Equity-based compensation [USD, thousands]

Amortization of deferred contract acquisition costs [USD, thousands]

Amortization of debt issuance costs, included in interest expense [USD, thousands]

Deferred tax benefit [USD, thousands]

Accretion of discount on investments [USD, thousands]

Realized (gain) loss on investments [USD, thousands]

Net cash provided by operating activities [USD, thousands]

Purchases of property and equipment [USD, thousands]

Purchase of held to maturity investments [USD, thousands]

Purchases of available-for-sale investments [USD, thousands]

Proceeds from sale of available-for-sale investments [USD, thousands]

Proceeds from maturities of investments [USD, thousands]

Net cash used in investing activities [USD, thousands]

Proceeds from exercise of options [USD, thousands]

Taxes paid related to net share settlement of equity awards [USD, thousands]

Repayments of borrowings [USD, thousands]

Payment of business acquisition holdback liability [USD, thousands]

Payment of tax distributions [USD, thousands]

Net cash used in financing activities [USD, thousands]

Effect of exchange rate changes on cash and cash equivalents [USD, thousands]

Change in cash and cash equivalents during the period [USD, thousands]

Cash paid for interest [USD, thousands]

Cash paid for income taxes [USD, thousands]

Purchase of property and equipment included in accounts payable and accrued expense [USD, thousands]

Cash and cash equivalents, beginning of period [USD, thousands]

Cash and cash equivalents, end of period [USD, thousands]

Tax distributions payable to Continuing Equity Owners included in accrued expenses [USD, thousands]

51db2fc6ee647c209ae2fac1bd4784c9373037a10e599a8bed39fc26be93f2e3

The **drop** in **Cash and cash equivalents** in Q1 2024 was primarily driven by several factors. While the company generated **$10,037 thousand** from operating activities, it experienced significant outflows of **$11,800 thousand** in investing activities (mainly due to purchases of property, equipment, and investments) and **$30,145 thousand** in financing activities, including **$28,774 thousand** paid in taxes related to the net share settlement of equity awards. Additionally, a minor negative impact of **$213 thousand** from exchange rate changes contributed to the decrease.  **[20240501LA02149:5]** **[0001628280-24-020003_cwan-20240331.htm:37]** 

Why did Cash and cash equivalents drop in Q1 2024?

The significant increase in Total assets in Q3 2024 was driven by several factors: a **substantial increase in Goodwill** due to acquisitions (rising from **$45,338 thousand** to **$74,160 thousand**) that played a major role in the growth; **expansion in cash, cash equivalents, and investments**—including higher cash and cash equivalents, short-term, and long-term investments fueled by strong cash flow and record-high free cash flow; along with a rise in **Intangible Assets** and **Operating Lease Right-of-Use Assets** that further bolstered the asset base.  **[0001628280-24-045726_cwan-20240930xexx991.htm:1]** **[CWAN_3406420_1]** **[0001628280-24-045726_cwan-20240930xexx991.htm:8]** **[0001628280-24-045742_cwan-20240930.htm:6]** 

What drove the significant increase in Total assets in Q3 2024?

The documents indicate that **Goodwill** increased significantly from **$45,338 thousand** in Q4 2023 to **$74,160 thousand** in Q3 2024, but they do not provide any specific reasons for this substantial jump.  **[0001628280-24-045729_cwan-20240930xexx991.htm:8]** **[0001628280-24-045726_cwan-20240930xexx991.htm:8]** **[0001628280-24-045742_cwan-20240930.htm:6]** 

What led to the substantial jump in Goodwill in Q3 2024?

The surge in **Long-term investments** in Q2 2024 was primarily driven by a **reallocation of investments** and **investment strategy adjustments**. Specifically, the company increased its holdings in **U.S. agency securities** and **corporate debt securities**—with notable increases in corporate debt securities contributing significantly to the higher overall investment value—indicating a deliberate shift in the investment approach to optimize returns while maintaining liquidity.  **[20240731LA73240:6]** **[0001628280-24-034169_cwan-20240630.htm:6]** **[0001628280-24-034169_cwan-20240630.htm:16]** 

What factors contributed to the surge in Long-term investments in Q2 2024?

a4d6c824f344164328a6c7317053d2bdfde64685e7e59aa1b7cbe909743592a7

The documents provide detailed explanations for the change in Q4 2023’s operating income compared to Q4 2022, noting that despite a **19.8% increase in revenue to $99,019 thousand**, increases in operating expenses—including higher **R&D**, **sales and marketing**, and **G&A** costs driven by equity‐based compensation—resulted in an operating income of **$2,590 thousand** in Q4 2023.  **[0001628280-24-007597_cwan-20231231xexx991.htm:9]**  However, the documents do not explicitly explain the specific drivers behind the turnaround from the prior quarter’s loss of **$(5,887) thousand** in Q3 2023 to the positive operating income in Q4 2023.  **[0001628280-23-036707_cwan-20230930.htm:7]** **[0001628280-23-036707_cwan-20230930.htm:39]** **[0001628280-24-007825_cwan-20231231.htm:106]**  In summary, while revenue growth and cost dynamics were key factors in Q4, a definitive explanation for the quarter‐over‐quarter turnaround is not provided in the documents.

What drove the turnaround in operating income in Q4 2023?

The dramatic decline in **net income** for **FY 2023** was driven by several significant increases in expenses. **Operating expenses** surged, with **R&D** increasing by **$29,805 thousand (32%)**, **G&A** escalating by **$29,729 thousand (47%)**, and **Sales and Marketing** rising by **$7,727 thousand (15%)**. Additionally, **equity-based compensation** expenses jumped by **$38,756 thousand (59%)**, and the **Tax Receivable Agreement expense** grew by **$2,757 thousand (24%)**. **Depreciation and amortization** also nearly doubled, increasing by **$4,790 thousand (93%)**. Despite a **21% increase in revenue** to **$368,168 thousand**, these higher costs outweighed revenue growth, leading to a much larger net loss in **FY 2023**.  **[0001628280-24-007825_cwan-20231231.htm:88]** **[0001628280-24-007597_cwan-20231231xexx991.htm:11]** **[0001628280-24-007825_cwan-20231231.htm:89]** 

Why did net income decline so dramatically in FY 2023?

The net income turnaround in Q1 2024 was driven by several factors, including a **21% increase in revenue**—rising from **$84.6 million to $102.7 million**—which expanded the client base and increased asset volumes on the platform, as well as an **improvement in gross profit** (up from **$59.8 million to $74.5 million** with the GAAP gross margin increasing from **71% to 73%**) that bolstered profitability improvements.  **[20240501LA02149:0]** **[0001628280-24-019629_cwan-20240331xexx991.htm:0]** **[0001628280-24-020003_cwan-20240331.htm:33]**  Additionally, the company significantly reduced its operating loss—from **$6.3 million** to a much smaller loss of **$166,000**—indicating enhanced operational efficiency, and benefited from a modest decrease in equity-based compensation (from **$24.5 million to $24.2 million**), along with lower transaction and other non-core operating expenses.  **[0001628280-24-020003_cwan-20240331.htm:33]** **[0001628280-24-019629_cwan-20240331xexx991.htm:9]** 

What factors contributed to the net income turnaround in Q1 2024?

The significant revenue increase in Q3 2024 was spurred by several factors, including a **substantial growth in the client base** contributing **$10.8 million** to revenue, the **acquisition of Wilshire Technology** that expanded their customer base, the addition of **new clients** together with expansion among existing ones, as well as improvements in operational metrics such as a **17.5% increase in average assets billed** and a **5.7% increase in the basis point rate billed** compared to Q3 2023.  **[0001628280-24-045742_cwan-20240930.htm:39]** **[0001628280-24-045742_cwan-20240930.htm:38]** 

What spurred the significant revenue increase in Q3 2024?

3f6901d3d5f8a232a6a7d1197c2c0c2a085169c10427e10400a09e6203002c5a

8ad5e554d9b849ab33e1633aff73aec5000a7b6beccd339dbf8d3a2b6e9159ae

Revenue (USD, thousands)

Cost of revenue (USD, thousands)

Gross profit (USD, thousands)

Research and development expenses (USD, thousands)

Sales and marketing expenses (USD, thousands)

General and administrative expenses (USD, thousands)

Total operating expenses (USD, thousands)

Income (loss) from operations (USD, thousands)

Interest income, net (USD, thousands)

Tax receivable agreement (benefit) expense (USD, thousands)

Other (income) expense, net (USD, thousands)

Income (loss) before income taxes (USD, thousands)

Benefit from income taxes (Provision for income taxes) (USD, thousands)

Net income (loss) (USD, thousands)

Less: Net income (loss) attributable to non-controlling interests (USD, thousands)

Net income (loss) attributable to Clearwater Analytics Holdings, Inc. (USD, thousands)

3319ade3b2a328f2b2c9ce6e006c2b5f18402cca9bef2415bcd5dae64b4e921e

Total Revenue (USD, thousands)

Cost of Goods Sold (COGS) (USD, thousands)

Selling, General, and Administrative Expenses (SG&A) (USD, thousands)

Research and Development (R&D) (USD, thousands)

Depreciation and Amortization (D&A) (USD, thousands)

Interest Expense (USD, thousands)

Operating Income (EBIT) (USD, thousands)

Net Income (USD, thousands)

Earnings Per Share (EPS) - Basic (USD)

Earnings Per Share (EPS) - Diluted (USD)

8157ce4022737aa119595c48e5540c91d295d12fcf11492920898708400123ca

Current Assets (USD, thousands)

Cash and Cash Equivalents (USD, thousands)

Accounts Receivable (USD, thousands)

Inventory (USD, thousands)

Non-Current Assets (USD, thousands)

Property, Plant, and Equipment (PP&E) (USD, thousands)

Goodwill (USD, thousands)

Intangible Assets (USD, thousands)

Current Liabilities (USD, thousands)

Accounts Payable (USD, thousands)

Short-term Debt (USD, thousands)

Accrued Expenses (USD, thousands)

Non-Current Liabilities (USD, thousands)

Long-term Debt (USD, thousands)

Lease Liabilities (USD, thousands)

Deferred Tax Liabilities (USD, thousands)

Shareholders' Equity (USD, thousands)

Retained Earnings (USD, thousands)

Common Stock (USD, thousands)

Additional Paid-in Capital (USD, thousands)

1f0a234ae9e346397e7ae6072596a07be1f8b85afd4538e619466515845f3c8f

Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

72c609a297b67e195849a86394d7580f3c63968e3dfd9ff07c5881041a2e2794

United States

Rest of World

Total Revenue

55ce05ae6a6e2123a80ac84ef3fef5efe4be5c65138e1e82fba2ce4cb9855ad3

Clearwater Analytics Holdings (CWAN)

Financials