Record Quarterly Revenue of $84.6 Million, Up 20% Year-Over-Year
Adjusted EBITDA of $22.5 Million
Net Revenue Retention Rate of 106%
BOISE,
Idaho, May 4, 2023 /PRNewswire/ -- Clearwater
Analytics Holdings, Inc. (NYSE: CWAN) ("Clearwater
Analytics" or the "Company"), a leading provider of SaaS-based
investment accounting, reporting, and analytics solutions, today
announced its financial results for the quarter ended March 31, 2023.
"I'm extremely proud of our team's continued focus on client
success," said Sandeep Sahai, Chief
Executive Officer. "During the recent banking challenges, our
clients were able to make effective investment decisions because of
the transparency that we provide. Responding to rapidly changing
market conditions, our teams reacted quickly and effectively. We
gave concerned clients the knowledge and reassurance that they can
rely on our platform for risk evaluation and cash flow forecasting
on a daily basis, regardless of external conditions. We provide
this value not only to our existing clients, but to clients who
fully migrated to our platform during the quarter, including UBS,
Athora, Corvid Peak, and DARAG. Our success this quarter is a
direct result of our cross-functional efforts that consistently
deliver better data, and drive better processes and decisions.
Without a doubt, Clearwater and
all our clients are better together."
First Quarter 2023 Financial Results Summary
- Revenue: Total revenue for the first quarter of
2023 reached $84.6 million, an
increase of 19.5%, from $70.8 million
in the first quarter of 2022. Results for the first quarter of 2023
reflect the JUMP Technology acquisition that closed in December 2022.
- Gross Profit: Gross profit for the first quarter of
2023 was $59.8 million, compared with
$49.6 million in the first quarter of
2022. Non-GAAP gross profit for the first quarter of 2023 was
$64.2 million, which equates to a
75.9% non-GAAP gross margin.
- Net Income/(Loss): Net loss for the first quarter of
2023 was $5.4 million compared with
net income of $0.5 million in the
first quarter of 2022. Net loss for the first quarter included
total equity-based compensation expense and related payroll taxes
of $24.5 million, including
$5.5 million related to the JUMP
Technology acquisition, which closed in the fourth quarter of 2022.
Non-GAAP net income for the first quarter of 2023 increased by
37.6% to $17.6 million from
$12.8 million in the first quarter of
2022.
- Adjusted EBITDA: Adjusted EBITDA for the first
quarter of 2023 was $22.5
million, compared with $18.9
million in the first quarter of 2022. Adjusted EBITDA margin
for the first quarter of 2023 was 26.6%.
- Cash Flows: Operating cash flows for the first quarter
were $7.9 million. Free cash flows
for the first quarter of 2023 increased by 32.6% to $6.2 million from $4.7
million in the first quarter of 2022.
- Net Loss Per Share and Non-GAAP Net Income Per Share
attributable to Clearwater Analytics Holdings, Inc.: Net loss
per basic and diluted share was $0.02
in the first quarter of 2023. Non-GAAP net income per basic share
was $0.09, and non-GAAP net income
per diluted share was $0.07 in the
first quarter of 2023.
- Cash, cash equivalents, and investments were
$256.8 million as of March 31, 2023. Total debt, net of debt issuance
cost, was $49.9 million as of
March 31, 2023.
First Quarter 2023 Key Metrics Summary
- Annualized Recurring Revenue: As of March 31, 2023, annualized recurring revenue
("ARR") reached $337.4 million, an
increase of 17.5% from $287.1 million
as of March 31, 2022.
ARR is calculated at the end of a period by dividing the recurring
revenue in the last month of such period by the number of days in
the month and multiplying by 365.
- Gross Revenue Retention Rate: As of March 31, 2023, the gross revenue retention rate
was 97%, compared to 98% as of March 31,
2022.
Gross revenue retention rate represents annual contract value
("ACV") at the beginning of the 12-month period ended on the
reporting date less client attrition over the prior 12-month
period, divided by ACV at the beginning of the 12-month period,
expressed as a percentage. ACV is comprised of annualized recurring
revenue plus contracted-not-billed revenue, which represents the
estimated annual contracted revenue for new and existing client
opportunities prior to revenue recognition.
- Net Revenue Retention Rate: As of March 31, 2023, the net revenue retention rate
was 106%, which is unchanged from December
31, 2022.
Net revenue retention rate is the percentage of recurring revenue
from clients on the platform for 12 months and includes changes
from the addition, removal, or value of assets on our platform,
contractual changes that have an impact to annualized recurring
revenues and lost revenue from client attrition.
Recent Business Highlights
- Clearwater Analytics announced new asset manager clients,
including Bank of America Private Bank, Merrill Lynch and others.
Also in the first quarter, we expanded our footprint within
existing clients and added marquee clients such as Alaska Permanent
Capital Management Company, Arrowood Indemnity Company, Becker
Capital Management, Elastic, Pacific Biosciences of California, Plug Power, Robinhood Markets,
Royal Neighbors of America, and
Sutter County, CA.
- Clearwater Analytics will host Clearwater Connect in
London on June 14, 2023, where current and prospective
users will have the opportunity to significantly enhance their
knowledge of the world's most comprehensive investment accounting
solution.
- Clearwater Analytics continued to receive industry recognition
for its innovative investment accounting solution, winning several
industry awards, including:
-
- the 2023 FinTech Breakthrough Award for Best Overall Accounting
Platform award recognizing the top companies, technologies, and
products in the global FinTech market today.
- the IFRS 9 Solution Provider of the Year award from Insurance
Asset Risk Awards 2023 for helping financial institutions
streamline their investment operations, maximize their investment
portfolio data, and be successful as they implement IFRS 9.
- the 2022 SaaS Leadership Award honoring Clearwater CMO Susan
Ganeshan as one of the cloud's top marketing and customer success
executives.
Second Quarter and Full Year 2023 Guidance
|
Second Quarter
2023
|
|
Full Year
2023
|
|
Revenue
|
$87.5
million
|
|
$362 million to $364
million
|
|
Year-over-Year Growth
%
|
~19%
|
|
~19% to 20%
|
|
Adjusted
EBITDA
|
$22.8
million
|
|
$97 million to $98
million
|
|
Equity-based
compensation expense and related payroll taxes
|
|
|
~$80 million
|
|
Equity-based
compensation expense related to JUMP Technology
acquisition
|
|
|
~$25 million
|
|
Depreciation and
Amortization
|
|
|
~$9 million
|
|
Non-GAAP effective tax
rate
|
|
|
25 %
|
|
Diluted non-GAAP share
count
|
|
|
~255 million
|
Certain components of the guidance given above are provided on a
non-GAAP basis only without providing a reconciliation to guidance
provided on a GAAP basis. Information is presented in this manner,
consistent with Securities and Exchange Commission (the "SEC")
rules, because the preparation of such a reconciliation could not
be accomplished without "unreasonable efforts." The Company does
not have access to certain information that would be necessary to
provide such a reconciliation, including non-recurring items that
are not indicative of the Company's ongoing operations. The Company
does not believe that this information is likely to be significant
to an assessment of the Company's ongoing operations.
Conference Call Details
Clearwater Analytics will hold a conference call and webcast on
May 4, 2023, at 5:00 p.m. Eastern time to discuss first quarter
2023 financial results, provide a general business update, and
respond to analyst questions.
A live webcast of the call will also be available on the
Company's investor relations website. Please visit
investors.clearwateranalytics.com at least fifteen minutes
prior to the start of the event to register, download and install
any necessary audio software.
If you are unable to participate live, a replay of the webcast
will be available following the conference call on the Company's
investor relations website, along with the earnings press release,
and related financial tables.
About Clearwater Analytics
Clearwater Analytics (NYSE: CWAN), a global, industry-leading
SaaS solution, automates the entire investment lifecycle. With a
single instance, multi-tenant architecture, Clearwater offers award-winning investment
portfolio planning, performance reporting, data aggregation,
reconciliation, accounting, compliance, risk, and order management.
Each day, leading insurers, asset managers, corporations, and
governments use Clearwater's
trusted data to drive efficient, scalable investing on more than
$6.4 trillion in assets spanning
traditional and alternative asset types. Additional information
about Clearwater can be found at
clearwateranalytics.com.
Use of non-GAAP Information
This press release contains certain non-GAAP measures, including
non-GAAP gross profit, non-GAAP gross margin, adjusted EBITDA,
adjusted EBITDA margin, non-GAAP net income, non-GAAP net income
per basic and diluted share, non-GAAP effective tax rate, diluted
non-GAAP share count and free cash flow.
The non-GAAP measures are not based on any standardized
methodology prescribed by GAAP and are not necessarily comparable
to similar measures presented by other companies. However, the
Company believes that this non-GAAP information is useful as an
additional means for investors to evaluate its operating
performance, when reviewed in conjunction with its GAAP financial
statements. These measures should not be considered in isolation or
as a substitute for measures prepared in accordance with GAAP and,
because these amounts are not determined in accordance with GAAP,
they should not be used exclusively in evaluating the Company's
business and operations. In addition, undue reliance should not be
placed upon non-GAAP or operating information because this
information is neither standardized across companies nor subjected
to the same control activities and audit procedures that produce
the Company's GAAP financial results.
The Company's non-GAAP statement of operations measures,
including non-GAAP gross profit, non-GAAP gross margin, adjusted
EBITDA, adjusted EBITDA margin, non-GAAP net income, non-GAAP net
income per basic and diluted share, non-GAAP effective tax rate,
diluted non-GAAP share count and free cash flow, are adjusted to
exclude the impact of certain costs, expenses, gains and losses and
other specified items that management believes are not indicative
of its ongoing operations. These adjusted measures exclude the
impact of share-based compensation and eliminate potential
differences in results of operations between periods caused by
factors such as financing and capital structures, taxation
positions or regimes, restructuring, impairment and other
charges. Please refer to the reconciliations of these
measures below to what the Company believes are the most directly
comparable measures evaluated in accordance with GAAP.
Use of Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
based on management's beliefs and assumptions and on information
currently available to management. Forward-looking statements
include information concerning the Company's possible or assumed
future results of operations, business strategies, technology
developments, financing and investment plans, dividend policy,
competitive position, industry, economic and regulatory
environment, potential growth opportunities and the effects of
competition. Forward-looking statements include statements that are
not historical facts and can be identified by terms such as
"anticipate," "believe," "could," "estimate," "expect," "intend,"
"may," "plan," "potential," "predict," "project," "seek," "should,"
"will," "would" or similar expressions and the negatives of those
terms, but are not the exclusive means of identifying such
statements.
Forward-looking statements involve known and unknown risks,
uncertainties, and other factors, many of which are beyond
Clearwater Analytics' control, that may cause the Company's actual
results, performance, or achievements to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. These risks and
uncertainties may cause actual results to differ materially from
Clearwater Analytics' current expectations and include, but are not
limited to, the Company's ability to keep pace with rapid
technological change and competitors in its industry, the
possibility that market volatility, a downturn in economic
conditions or other factors may cause negative trends or
fluctuations in the value of the assets on the Company's platform,
the Company's ability to manage growth, the Company's ability to
attract and retain skilled employees, the possibility that the
Company's solutions fail to perform properly, disruptions and
failures in the Company's and third parties' computer equipment,
cloud-based services, electronic delivery systems, networks and
telecommunications systems and infrastructure, the failure to
protect the Company, its customers' and/or its vendors'
confidential information and/or intellectual property, claims of
infringement of others' intellectual property, risk factors related
to the Company's acquisition of JUMP Technology, including the
Company's ability to (i) successfully integrate the operations and
technology of JUMP Technology with those of the Company, (ii)
retain and incentivize the management of JUMP Technology, and (iii)
retain the clients of JUMP Technology, factors related to the
Company's ownership structure and status as a "controlled company"
as well as other risks and uncertainties detailed in Clearwater
Analytics' periodic public filings with the SEC, including but not
limited to those discussed under "Risk Factors" in the Company's
Annual Report on Form 10-K for the year ended December 31, 2022 filed on March 3, 2023, and in other periodic reports
filed by Clearwater Analytics with the SEC. These filings are
available at www.sec.gov and on Clearwater Analytics' website.
Given these uncertainties, you should not place undue reliance
on forward-looking statements. Also, forward-looking statements
represent management's beliefs and assumptions only as of the date
of this press release and should not be relied upon as representing
Clearwater Analytics' expectations or beliefs as of any date
subsequent to the time they are made. Clearwater Analytics
does not undertake to and specifically declines any obligation to
update any forward-looking statements that may be made from time to
time by or on behalf of Clearwater Analytics.
|
Clearwater Analytics
Holdings, Inc.
|
|
Consolidated Balance
Sheets
|
|
(In thousands,
except share amounts and per share amounts,
unaudited)
|
|
|
March
31
|
|
December
31
|
|
2023
|
|
2022
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
220,845
|
|
$
250,724
|
|
Short-term
investments
|
19,229
|
|
4,890
|
|
Accounts receivable,
net
|
78,931
|
|
72,575
|
|
Prepaid expenses and
other current assets
|
29,986
|
|
28,157
|
|
Total current
assets
|
348,991
|
|
356,346
|
|
Property and equipment,
net
|
15,297
|
|
15,064
|
|
Operating lease
right-of-use assets, net
|
26,362
|
|
24,114
|
|
Intangible assets,
net
|
28,866
|
|
29,456
|
|
Goodwill
|
43,838
|
|
43,791
|
|
Long-term
investments
|
16,749
|
|
—
|
|
Deferred contract
costs, non-current
|
6,022
|
|
6,563
|
|
Other non-current
assets
|
5,265
|
|
6,608
|
|
Total assets
|
$
491,390
|
|
$
481,942
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
2,656
|
|
$
3,092
|
|
Accrued expenses and
other current liabilities
|
35,357
|
|
42,119
|
|
Notes payable, current
portion
|
2,750
|
|
2,750
|
|
Operating lease
liability, current portion
|
6,446
|
|
5,851
|
|
Tax receivable
agreement liability, current portion
|
12,200
|
|
12,200
|
|
Total current
liabilities
|
59,409
|
|
66,012
|
|
Notes payable, less
current maturities and unamortized debt issuance costs
|
47,826
|
|
48,492
|
|
Operating lease
liability, less current portion
|
21,111
|
|
19,505
|
|
Other long-term
liabilities
|
9,579
|
|
9,547
|
|
Total
liabilities
|
137,925
|
|
143,556
|
|
Stockholders'
Equity
|
|
|
|
|
Class A common stock,
par value $0.001 per share; 1,500,000,000 shares authorized,
77,404,097 shares issued and outstanding as of March 31, 2023,
61,148,890 shares issued and outstanding as of December 31,
2022
|
77
|
|
61
|
|
Class B common stock,
par value $0.001 per share; 500,000,000 shares authorized,
1,414,251 shares issued and outstanding as of March 31, 2023,
1,439,251 shares issued and outstanding as of December 31,
2022
|
1
|
|
1
|
|
Class C common stock,
par value $0.001 per share; 500,000,000 shares authorized,
42,553,686 shares issued and outstanding as of March 31, 2023,
47,377,587 shares issued and outstanding as of December 31,
2022
|
43
|
|
47
|
|
Class D common stock,
par value $0.001 per share; 500,000,000 shares authorized,
119,957,656 shares issued and outstanding as of March 31,
2023, 130,083,755 shares issued and outstanding as of
December 31, 2022
|
120
|
|
130
|
|
Additional
paid-in-capital
|
470,326
|
|
455,320
|
|
Accumulated other
comprehensive income
|
1,742
|
|
609
|
|
Accumulated
deficit
|
(183,288)
|
|
(186,647)
|
|
Total stockholders'
equity attributable to Clearwater Analytics Holdings,
Inc.
|
289,021
|
|
269,521
|
|
Non-controlling
interests
|
64,444
|
|
68,865
|
|
Total stockholders'
equity
|
353,465
|
|
338,386
|
|
Total liabilities and
stockholders' equity
|
$
491,390
|
|
$
481,942
|
|
|
Clearwater Analytics
Holdings, Inc.
|
|
Consolidated
Statements of Operations
|
|
(In thousands,
except share amounts and per share amounts,
unaudited)
|
|
|
Three Months
Ended
March 31,
|
|
2023
|
|
2022
|
|
Revenue
|
$
84,606
|
|
$
70,778
|
|
Cost of
revenue(1)
|
24,825
|
|
21,172
|
|
Gross profit
|
59,781
|
|
49,606
|
|
Operating
expenses:
|
|
|
|
|
Research and
development(1)
|
28,100
|
|
21,294
|
|
Sales and
marketing(1)
|
14,698
|
|
11,993
|
|
General and
administrative(1)
|
23,306
|
|
15,040
|
|
Total operating
expenses
|
66,104
|
|
48,327
|
|
Income (loss) from
operations
|
(6,323)
|
|
1,279
|
|
Interest (income)
expense, net
|
(1,356)
|
|
429
|
|
Other expense,
net
|
186
|
|
85
|
|
Income (loss) before
provision for income taxes
|
(5,153)
|
|
765
|
|
Provision for income
taxes
|
264
|
|
237
|
|
Net income
(loss)
|
(5,417)
|
|
528
|
|
Less: Net income (loss)
attributable to non-controlling interests
|
(1,033)
|
|
130
|
|
Net income (loss)
attributable to Clearwater Analytics Holdings, Inc.
|
$
(4,384)
|
|
$
398
|
|
|
|
|
|
Net income (loss) per
share attributable to Class A and Class D common stockholders
stock:
|
|
|
|
|
Basic
|
$
(0.02)
|
|
$
0.00
|
|
Diluted
|
$
(0.02)
|
|
$
0.00
|
|
|
|
|
|
Weighted average shares
of Class A and Class D common stock outstanding:
|
|
|
|
|
Basic
|
192,993,574
|
|
178,517,480
|
|
Diluted
|
192,993,574
|
|
246,916,663
|
|
|
|
|
|
(1) Amounts include equity-based
compensation as follows:
|
|
|
Cost of
revenue
|
$
2,243
|
|
$
2,311
|
|
Operating
expenses:
|
|
|
|
|
Research and
development
|
4,655
|
|
4,305
|
|
Sales and
marketing
|
3,965
|
|
3,296
|
|
General and
administrative
|
12,337
|
|
5,964
|
|
Total equity-based
compensation expense
|
$
23,200
|
|
$
15,876
|
|
Clearwater Analytics
Holdings, Inc.
|
|
Consolidated
Statements of Cash Flows
|
|
(In thousands,
unaudited)
|
|
|
Three Months Ended
March 31,
|
|
2023
|
|
2022
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
Net income
(loss)
|
$
(5,417)
|
|
$
528
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
2,449
|
|
959
|
|
Noncash operating
lease cost
|
1,852
|
|
1,540
|
|
Equity-based
compensation
|
23,200
|
|
15,876
|
|
Amortization of
deferred contract acquisition costs
|
1,201
|
|
965
|
|
Amortization of debt
issuance costs, included in interest expense
|
70
|
|
69
|
|
Deferred tax expense
(benefit)
|
(36)
|
|
24
|
|
Realized gain on
investments
|
(87)
|
|
—
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts receivable,
net
|
(6,139)
|
|
(2,989)
|
|
Prepaid expenses and
other assets
|
(1,586)
|
|
(1,113)
|
|
Deferred
commissions
|
(586)
|
|
(811)
|
|
Accounts
payable
|
(295)
|
|
(345)
|
|
Accrued expenses and
other liabilities
|
(6,691)
|
|
(7,787)
|
|
Net cash provided by
operating activities
|
7,935
|
|
6,916
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
Purchases of property
and equipment
|
(1,717)
|
|
(2,227)
|
|
Purchases of
available-for-sale investments
|
(34,161)
|
|
—
|
|
Proceeds from sale of
available-for-sale investments
|
1,990
|
|
—
|
|
Proceeds from
maturities of investments
|
1,242
|
|
—
|
|
Net cash used in
investing activities
|
(32,646)
|
|
(2,227)
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
Proceeds from exercise
of options
|
2,693
|
|
5,613
|
|
Taxes paid related to
net share settlement of equity awards
|
(7,275)
|
|
—
|
|
Repayments of
borrowings
|
(687)
|
|
(687)
|
|
Payment of costs
associated with the IPO
|
—
|
|
(214)
|
|
Net cash provided by
(used in) financing activities
|
(5,269)
|
|
4,712
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
101
|
|
(324)
|
|
Change in cash and cash
equivalents during the period
|
(29,879)
|
|
9,077
|
|
Cash and cash
equivalents, beginning of period
|
250,724
|
|
254,597
|
|
Cash and cash
equivalents, end of period
|
$
220,845
|
|
$
263,674
|
|
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION
|
|
|
|
|
Cash paid for
interest
|
$
1,350
|
|
$
268
|
|
Cash paid for income
taxes
|
$
309
|
|
$
370
|
|
NON-CASH INVESTING
AND FINANCING ACTIVITIES
|
|
|
|
|
Purchase of property
and equipment included in accounts payable and accrued
expense
|
$
209
|
|
$
—
|
|
Tax distributions
payable to Continuing Equity Owners included in accrued
expenses
|
$
2,834
|
|
$
11
|
|
Clearwater Analytics
Holdings, Inc.
|
|
Reconciliation of
Net Income (Loss) to Adjusted EBITDA
|
|
(In thousands,
unaudited)
|
|
|
Three Months Ended
March 31,
|
|
2023
|
|
2022
|
|
(in thousands,
except percentages)
|
|
Net income
(loss)
|
$
(5,417)
|
|
(6 %)
|
|
$
528
|
|
1 %
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Interest (income)
expense, net
|
(1,356)
|
|
(2 %)
|
|
429
|
|
1 %
|
|
Depreciation and
amortization
|
2,449
|
|
3 %
|
|
959
|
|
1 %
|
|
Equity-based
compensation expense and related payroll taxes
|
19,030
|
|
22 %
|
|
15,876
|
|
22 %
|
|
Equity-based
compensation expense related to JUMP acquisition
|
5,477
|
|
6 %
|
|
—
|
|
—
|
|
Other
expenses(1)
|
2,358
|
|
3 %
|
|
1,070
|
|
2 %
|
|
Adjusted
EBITDA
|
22,541
|
|
27 %
|
|
18,862
|
|
27 %
|
|
Revenue
|
$
84,606
|
|
100 %
|
|
$
70,778
|
|
100 %
|
|
(1)
|
Other expenses
includes management fees to our investors, income taxes, foreign
exchange gains and losses, tax receivable agreement expense and
other expenses that are not reflective of our core operating
performance including the costs to set up our Up-C structure and
Tax Receivable Agreement, and transaction expenses including legal,
accounting, and other expenses related to the Secondary
Offering.
|
|
Three Months
Ended
March 31,
|
|
2023
|
|
2022
|
|
(in
thousands)
|
|
Up-C structure
expenses
|
$
—
|
|
$
158
|
|
Transaction
expenses
|
1,293
|
|
—
|
|
Amortization of prepaid
management fees and reimbursable expenses
|
615
|
|
591
|
|
Provision for income
tax expense
|
264
|
|
237
|
|
Tax receivable
agreement expense
|
105
|
|
—
|
|
Miscellaneous
|
81
|
|
84
|
|
Total other
expenses
|
$
2,358
|
|
$
1,070
|
|
Clearwater Analytics
Holdings, Inc.
|
|
Reconciliation of
Free Cash Flow
|
|
(In thousands,
unaudited)
|
|
|
Three Months
Ended
March 31,
|
|
2023
|
|
2022
|
|
Net cash provided by
operating activities
|
$
7,935
|
|
$
6,916
|
|
Less: Purchases of
property and equipment
|
1,717
|
|
2,227
|
|
Free Cash
Flow
|
$
6,218
|
|
$
4,689
|
|
Clearwater Analytics
Holdings, Inc.
|
|
Reconciliation of
Non-GAAP Information
|
|
(In thousands,
except share amounts and per share amounts,
unaudited)
|
|
|
Three Months
Ended
March 31,
|
|
2023
|
|
2022
|
|
Revenue
|
$
84,606
|
|
$
70,778
|
|
|
|
|
|
Gross profit
|
$
59,781
|
|
$
49,606
|
|
Adjustments:
|
|
|
|
|
Equity-based
compensation expense and related payroll taxes
|
2,475
|
|
2,311
|
|
Depreciation and
amortization
|
1,964
|
|
606
|
|
Gross profit,
non-GAAP
|
$
64,220
|
|
$
52,523
|
|
As a percentage of
revenue, non-GAAP
|
76 %
|
|
74 %
|
|
|
|
|
|
Cost of
Revenue
|
$
24,825
|
|
$
21,172
|
|
Adjustments:
|
|
|
|
|
Equity-based
compensation expense and related payroll taxes
|
2,475
|
|
2,311
|
|
Depreciation and
amortization
|
1,964
|
|
606
|
|
Cost of revenue,
non-GAAP
|
$
20,386
|
|
$
18,255
|
|
As a percentage of
revenue, non-GAAP
|
24 %
|
|
26 %
|
|
|
|
|
|
Research and
development
|
$
28,100
|
|
$
21,294
|
|
Adjustments:
|
|
|
|
|
Equity-based
compensation expense and related payroll taxes
|
4,764
|
|
4,305
|
|
Equity-based
compensation expense related to JUMP acquisition
|
355
|
|
—
|
|
Depreciation and
amortization
|
288
|
|
224
|
|
Research and
development, non-GAAP
|
$
22,693
|
|
$
16,765
|
|
As a percentage of
revenue, non-GAAP
|
27 %
|
|
24 %
|
|
|
|
|
|
Sales and
marketing
|
$
14,698
|
|
$
11,993
|
|
Adjustments:
|
|
|
|
|
Equity-based
compensation expense and related payroll taxes
|
4,325
|
|
3,296
|
|
Depreciation and
amortization
|
153
|
|
66
|
|
Sales and marketing,
non-GAAP
|
$
10,220
|
|
$
8,631
|
|
As a percentage of
revenue, non-GAAP
|
12 %
|
|
12 %
|
|
|
|
|
|
General and
administrative
|
$
23,306
|
|
$
15,040
|
|
Adjustments:
|
|
|
|
|
Equity-based
compensation expense and related payroll taxes
|
7,466
|
|
5,964
|
|
Equity-based
compensation expense related to JUMP acquisition
|
5,122
|
|
—
|
|
Depreciation and
amortization
|
44
|
|
63
|
|
Amortization of
prepaid management fees and reimbursable expenses
|
615
|
|
591
|
|
Transaction
expenses
|
1,293
|
|
—
|
|
Up-C structure
expenses
|
—
|
|
158
|
|
General and
administrative, non-GAAP
|
$
8,766
|
|
$
8,264
|
|
As a percentage of
revenue, non-GAAP
|
10 %
|
|
12 %
|
|
|
|
|
|
Income (loss) from
operations
|
$
(6,323)
|
|
$
1,279
|
|
Adjustments:
|
|
|
|
|
Equity-based
compensation expense and related payroll taxes
|
19,030
|
|
15,876
|
|
Equity-based
compensation expense related to JUMP acquisition
|
5,477
|
|
—
|
|
Depreciation and
amortization
|
2,449
|
|
959
|
|
Amortization of
prepaid management fees and reimbursable expenses
|
615
|
|
591
|
|
Transaction
expenses
|
1,293
|
|
—
|
|
Up-C structure
expenses
|
—
|
|
158
|
|
Income from operations,
non-GAAP
|
$
22,541
|
|
$
18,863
|
|
As a percentage of
revenue, non-GAAP
|
27 %
|
|
27 %
|
|
|
|
|
|
Net income
(loss)
|
$
(5,417)
|
|
$
528
|
|
Adjustments:
|
|
|
|
|
Equity-based
compensation expense and related payroll taxes
|
19,030
|
|
15,876
|
|
Equity-based
compensation expense related to JUMP acquisition
|
5,477
|
|
—
|
|
Depreciation and
amortization
|
2,449
|
|
959
|
|
Tax receivable
agreement expense
|
105
|
|
—
|
|
Amortization of
prepaid management fees and reimbursable expenses
|
615
|
|
591
|
|
Transaction
expenses
|
1,293
|
|
—
|
|
Up-C structure
expenses
|
—
|
|
158
|
|
Tax impacts of
adjustments to net loss(1)
|
(5,954)
|
|
(5,321)
|
|
Net income,
non-GAAP
|
$
17,598
|
|
$
12,791
|
|
As a percentage of
revenue, non-GAAP
|
21 %
|
|
18 %
|
|
|
|
|
|
Net income per share -
basic, non-GAAP
|
$
0.09
|
|
$
0.07
|
|
Net income per share -
diluted, non-GAAP
|
$
0.07
|
|
$
0.05
|
|
|
|
|
|
Weighted-average common
shares outstanding - basic
|
192,993,574
|
|
178,517,480
|
|
Weighted-average common
shares outstanding - diluted
|
252,378,797
|
|
251,165,707
|
|
(1)
|
The estimated non-GAAP
effective tax rate was 25% for the three months ended March 31,
2023, and has been used to adjust the provision for income taxes
for non-GAAP net income and non-GAAP basic and diluted net income
per share.
|
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SOURCE Clearwater Analytics, LLC