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Net Change in Cash (USD, thousands)

72c609a297b67e195849a86394d7580f3c63968e3dfd9ff07c5881041a2e2794

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)

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Revenue (USD, thousands)

Cost of revenue (USD, thousands)

Gross profit (USD, thousands)

Research and development expenses (USD, thousands)

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Income (loss) from operations (USD, thousands)

Interest income, net (USD, thousands)

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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)

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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

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

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

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]

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Repayments of borrowings [USD, thousands]

Payment of business acquisition holdback liability [USD, thousands]

Payment of tax distributions [USD, thousands]

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Cash paid for interest [USD, thousands]

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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]

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8ad5e554d9b849ab33e1633aff73aec5000a7b6beccd339dbf8d3a2b6e9159ae

United States

Rest of World

Total Revenue

55ce05ae6a6e2123a80ac84ef3fef5efe4be5c65138e1e82fba2ce4cb9855ad3

Clearwater Analytics Holdings Inc (CWAN)

Financials