Fri, May 2, 8:17 PM (16 days ago)
### Clearwater Analytics Holdings, Inc. (CWAN) Q1 2025 Financial Summary **Financial Health and Performance:** - **Revenue:** $126.9 million, up 24% from $102.7 million in Q1 2024. - **Gross Profit:** $92.9 million, up from $74.5 million in Q1 2024. - **Net Income:** $6.9 million, up from $2.2 million in Q1 2024. - **Operating Expenses:** $85.9 million, up from $74.7 million in Q1 2024. - **Cash Flow:** $24.5 million from operations, up from $10.0 million in Q1 2024. **Profit Margins:** - **Gross Margin:** 73%. - **Operating Margin:** 6%. - **Net Margin:** 5%. **Cash Flow:** - **Operating Cash Flow:** $24.5 million. - **Investing Cash Flow:** $99.5 million. - **Financing Cash Flow:** -$27.2 million. **Earnings Changes:** - **EPS:** $0.03 for both basic and diluted shares, up from $0.01 in Q1 2024. **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by new clients, asset growth, and strategic acquisitions. - **Operating Expenses:** Increased due to headcount growth, merit-based compensation, and acquisition-related costs. - **Cash Flow:** Positive operating cash flow, significant investing activities, and moderate financing outflows. **Trends and Uncertainties:** - **Market Volatility:** Revenue is subject to fluctuations based on economic conditions. - **Acquisitions:** Strategic acquisitions to expand product offerings and market reach. - **Inflation:** Potential impact on costs and pricing strategies. **Future Operations Impact:** - **Growth Strategy:** Focus on adding new clients, expanding existing relationships, and international expansion. - **Innovation:** Continued investment in research and development to maintain technological advantage. - **Financial Flexibility:** Strong cash position and access to capital markets to support growth and acquisitions. **Key Metrics:** - **Annualized Recurring Revenue:** $493.9 million, up 22.7% from Q1 2024. - **Gross Revenue Retention Rate:** 98%, consistent with historical performance. - **Net Revenue Retention Rate:** 114%, indicating strong client expansion. **Non-GAAP Measures:** - **Adjusted EBITDA:** $45.1 million, up from $32.2 million in Q1 2024. - **Adjusted EBITDA Margin:** 36%, up from 31% in Q1 2024. **Conclusion:** Clearwater Analytics Holdings, Inc. (CWAN) demonstrated strong financial performance in Q1 2025, driven by strategic acquisitions and operational efficiencies. The company continues to invest in growth and innovation, positioning itself for sustained success in the investment analytics market.