Record Quarterly Revenue of $76.6 Million
Third Quarter Revenue Up 19% Year-Over-Year, Up 4.3% Sequentially Over Q2
15 Consecutive Quarters of 98% Gross Revenue Retention
BOISE, Idaho, Nov. 2, 2022 /PRNewswire/ -- Clearwater Analytics Holdings, Inc. (NYSE: CWAN) ("Clearwater Analytics" or the "Company"), an industry-leading SaaS solution for automated investment data aggregation, reconciliation, accounting, and reporting, announced today its financial results for the quarter ended September 30, 2022.
"Clearwater delivered a strong quarter as we won large and global organizations such as Nationwide Mutual Insurance Company, Continental General, Chandler Asset Management, and Bronte Capital, achieving our mission to expand into new geographies and adjacent markets. Through the pending acquisition of JUMP Technology in France, we will diversify our product portfolio while expanding our software to be an end-to-end investment lifecycle and achieving immediate scale in Europe," said Sandeep Sahai, Chief Executive Officer. "We're proud of the momentum we've maintained in Q3 which we believe is due to our high customer satisfaction and focused go-to-market activities. As companies around the globe tighten their belts, they have astutely determined that Clearwater is the smart choice for their required productivity. With many of the world's largest organizations making strategic investments in their future with Clearwater, we are honored by their partnership and look forward to helping them grow and thrive."
Third Quarter 2022 Financial Results SummaryFourth Quarter 2022 | Full Year 2022 | |||
Revenue | $79.3 million to $81.3 million | $300 million to $302 million | ||
Year-over-Year Growth % | ~14% to 16% | ~19% to 20% | ||
Adjusted EBITDA | $22.2 million to $23.2 million | $79 million to $80 million |
Revenue guidance for the fourth quarter of 2022 and full year 2022 assumes, based on management's estimates, approximately $1 million in revenue from JUMP Technology post-acquisition, which is dependent on the timing of closing such acquisition.
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 DetailsClearwater Analytics will hold a conference call and webcast on November 2, 2022, at 5:00 p.m. Eastern time to discuss third quarter 2022 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 AnalyticsClearwater Analytics is a global industry-leading SaaS solution for automated investment data aggregation, reconciliation, accounting, compliance, risk, performance, and reporting. Each day, the Clearwater solution reports on more than $5.9 trillion in assets for clients that include leading insurers, asset managers, corporations, pension plans, governments, and nonprofit organizations – helping them make the most of their investment portfolio data with a world-class product and client-centric servicing. Investment professionals around the globe trust Clearwater to deliver timely, validated investment data and analytics. Additional information about Clearwater can be found at clearwateranalytics.com, LinkedIn, and Twitter.
Use of non-GAAP InformationThis 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 diluted share 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 diluted share 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 StatementsThis 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) complete the acquisition of JUMP Technology on the Company's expected timing or at all, (ii) successfully integrate the operations and technology of JUMP Technology with those of the Company, and (iii) retain the management and employees or 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, 2021 filed on March 16, 2022, 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. | ||||||||
September 30 | December 31 | |||||||
2022 | 2021 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 288,523 | $ | 254,597 | ||||
Short-term investments | 3,000 | — | ||||||
Accounts receivable, net | 65,241 | 50,190 | ||||||
Prepaid expenses and other current assets | 16,382 | 16,551 | ||||||
Total current assets | 373,146 | 321,338 | ||||||
Property and equipment, net | 13,534 | 10,738 | ||||||
Operating lease right-of-use assets, net | 21,402 | — | ||||||
Deferred contract costs, non-current | 5,765 | 5,687 | ||||||
Debt issuance costs - line of credit | 776 | 922 | ||||||
Other non-current assets | 5,105 | 5,670 | ||||||
Total assets | $ | 419,728 | $ | 344,355 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,714 | $ | 1,416 | ||||
Accrued expenses and other current liabilities | 25,745 | 27,032 | ||||||
Notes payable, current portion | 2,750 | 2,750 | ||||||
Operating lease liability, current portion | 5,343 | — | ||||||
Total current liabilities | 35,552 | 31,198 | ||||||
Notes payable, less current maturities and unamortized debt issuance costs | 49,158 | 51,157 | ||||||
Operating lease liability, less current portion | 17,411 | — | ||||||
Tax receivable agreement liability | 5,700 | — | ||||||
Other long-term liabilities | 1,644 | 132 | ||||||
Total liabilities | 109,465 | 82,487 | ||||||
Stockholders' Equity | ||||||||
Class A common stock, par value $0.001 per share; 1,500,000,000 shares authorized, 59,199,868 shares issued and outstanding as of September 30, 2022, 47,948,888 shares issued and outstanding as of December 31, 2021 | 59 | 48 | ||||||
Class B common stock, par value $0.001 per share; 500,000,000 shares authorized, 1,662,802 shares issued and outstanding as of September 30, 2022, 11,151,110 shares issued and outstanding as of December 31, 2021 | 2 | 11 | ||||||
Class C common stock, par value $0.001 per share; 500,000,000 shares authorized, 47,377,587 shares issued and outstanding as of September 30, 2022 and December 31, 2021 | 47 | 47 | ||||||
Class D common stock, par value $0.001 per share; 500,000,000 shares authorized, 130,083,755 shares issued and outstanding as of September 30, 2022 and December 31, 2021 | 130 | 130 | ||||||
Additional paid-in-capital | 432,640 | 388,591 | ||||||
Accumulated other comprehensive loss | (1,880) | (34) | ||||||
Accumulated Deficit | (184,648) | (191,926) | ||||||
Total stockholders' equity attributable to Clearwater Analytics Holdings, Inc. | 246,350 | 196,867 | ||||||
Non-controlling interests | 63,913 | 65,001 | ||||||
Total stockholders' equity | 310,263 | 261,868 | ||||||
Total liabilities and Stockholders' Equity | $ | 419,728 | $ | 344,355 |
Clearwater Analytics Holdings, Inc. | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Revenue | $ | 76,552 | $ | 64,489 | $ | 220,739 | $ | 182,259 | ||||||||
Cost of revenue(2) | 22,720 | 17,785 | 64,811 | 47,683 | ||||||||||||
Gross profit | 53,832 | 46,704 | 155,928 | 134,576 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development(2) | 25,438 | 18,415 | 69,568 | 50,991 | ||||||||||||
Sales and marketing(2) | 13,187 | 10,126 | 38,254 | 26,151 | ||||||||||||
General and administrative(2) | 16,371 | 10,900 | 46,864 | 29,627 | ||||||||||||
Total operating expenses | 54,996 | 39,441 | 154,686 | 106,769 | ||||||||||||
Income (loss) from operations | (1,164) | 7,263 | 1,242 | 27,807 | ||||||||||||
Interest (income) expense, net | (693) | 8,302 | 139 | 25,261 | ||||||||||||
Tax receivable agreement expense | 2,600 | — | 5,700 | — | ||||||||||||
Loss on debt extinguishment | — | 10,303 | — | 10,303 | ||||||||||||
Other income, net | (469) | (130) | (828) | (65) | ||||||||||||
Loss before provision for income taxes | (2,602) | (11,212) | (3,769) | (7,692) | ||||||||||||
Provision for income taxes | 424 | 216 | 959 | 536 | ||||||||||||
Net loss | (3,026) | (11,428) | (4,728) | (8,228) | ||||||||||||
Less: Net income (loss) attributable to non-controlling interests | (52) | (3,114) | 277 | 86 | ||||||||||||
Net loss attributable to Clearwater Analytics | $ | (2,974) | $ | (8,314) | $ | (5,005) | $ | (8,314) | ||||||||
Net loss per share attributable to Class A and Class D common stock(1): | ||||||||||||||||
Basic | $ | (0.02) | $ | (0.05) | $ | (0.03) | $ | (0.05) | ||||||||
Diluted | $ | (0.01) | $ | (0.05) | $ | (0.02) | $ | (0.05) | ||||||||
Weighted average shares of Class A and Class D common stock | ||||||||||||||||
Basic | 187,824,531 | 177,449,844 | 184,026,378 | 177,449,844 | ||||||||||||
Diluted | 237,869,291 | 235,978,541 | 237,441,224 | 235,978,541 | ||||||||||||
(1) Basic and diluted net loss per share of Class A and Class D common stock is applicable only for the periods after the IPO and related transactions. | ||||||||||||||||
(2) Amounts include equity-based compensation as follows: | ||||||||||||||||
Cost of revenue | $ | 2,594 | $ | 899 | $ | 7,281 | $ | 2,171 | ||||||||
Operating expenses: | ||||||||||||||||
Research and development | 5,133 | 2,226 | 14,003 | 5,912 | ||||||||||||
Sales and marketing | 2,941 | 1,655 | 9,452 | 3,782 | ||||||||||||
General and administrative | 6,033 | 2,903 | 18,032 | 7,374 | ||||||||||||
Total equity-based compensation expense | $ | 16,701 | $ | 7,683 | $ | 48,768 | $ | 19,239 |
Clearwater Analytics Holdings, Inc. | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||
Net loss | $ | (3,026) | $ | (11,428) | $ | (4,728) | $ | (8,228) | ||||||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||||||||||
Depreciation and amortization | 1,381 | 792 | 3,499 | 2,204 | ||||||||||||
Noncash operating lease cost | 1,891 | — | 5,226 | — | ||||||||||||
Equity-based compensation | 16,701 | 7,683 | 48,768 | 19,239 | ||||||||||||
Change in tax receivable liability | 2,600 | — | 5,700 | — | ||||||||||||
Amortization of deferred contract acquisition costs | 1,154 | 893 | 3,221 | 2,404 | ||||||||||||
Amortization of debt issuance costs, included in interest expense | 71 | 500 | 210 | 1,474 | ||||||||||||
Deferred tax benefit | (106) | — | (590) | — | ||||||||||||
Debt extinguishment costs | — | 10,303 | — | 10,303 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable, net | (9,648) | (3,924) | (15,051) | (16,117) | ||||||||||||
Prepaid expenses and other assets | 1,563 | 2,287 | 1,618 | (8,717) | ||||||||||||
Deferred commissions | (1,478) | (1,677) | (3,593) | (2,922) | ||||||||||||
Accounts payable | 661 | 544 | 240 | 194 | ||||||||||||
Accrued expenses and other liabilities | 2,916 | 1,291 | (4,673) | (8,893) | ||||||||||||
Net cash provided by (used in) operating activities | 14,680 | 7,264 | 39,847 | (9,059) | ||||||||||||
INVESTING ACTIVITIES | ||||||||||||||||
Purchases of property and equipment | (1,912) | (1,268) | (5,880) | (3,499) | ||||||||||||
Purchase of short-term investments | — | — | (3,000) | — | ||||||||||||
Net cash used in investing activities | (1,912) | (1,268) | (8,880) | (3,499) | ||||||||||||
FINANCING ACTIVITIES | ||||||||||||||||
Proceeds from issuance of common units | — | — | — | 1,560 | ||||||||||||
Proceeds from exercise of options | 1,542 | 8 | 7,926 | 259 | ||||||||||||
Minimum tax withholding paid on behalf of employees for net share/unit settlement | (2,564) | (1,598) | (2,564) | (2,185) | ||||||||||||
Repurchase of common units | — | — | — | (626) | ||||||||||||
Proceeds from employee stock purchase plan | — | — | 2,401 | — | ||||||||||||
Repayments of borrowings | (688) | (432,692) | (2,063) | (434,231) | ||||||||||||
Payments of costs associated with early repayment of debt | — | (2,029) | — | (2,029) | ||||||||||||
Proceeds from borrowings | — | 55,000 | — | 55,000 | ||||||||||||
Payment of debt issuance costs | — | (1,400) | — | (1,400) | ||||||||||||
Proceeds from initial public offering, net of underwriting discounts | — | 582,188 | — | 582,188 | ||||||||||||
Payment of costs associated with the IPO | — | (1,450) | (214) | (1,850) | ||||||||||||
Payment of tax distributions | (17) | — | (17) | — | ||||||||||||
Net cash provided by (used in) financing activities | (1,727) | 198,027 | 5,469 | 196,686 | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (1,164) | 11 | (2,510) | (122) | ||||||||||||
Net change in cash and cash equivalents during the period | 9,877 | 204,034 | 33,926 | 184,006 | ||||||||||||
Cash and cash equivalents, beginning of period | 278,646 | 41,060 | 254,597 | 61,088 | ||||||||||||
Cash and cash equivalents, end of period | $ | 288,523 | $ | 245,094 | $ | 288,523 | $ | 245,094 | ||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||||||||||||||
Cash paid for interest | $ | 151 | $ | 10,078 | $ | 766 | $ | 25,847 | ||||||||
Cash paid for income taxes | $ | 939 | $ | 104 | $ | 1,425 | $ | 67 | ||||||||
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||||||||||||||
Purchase of property and equipment included in accounts payable and accrued expense | $ | 162 | $ | 325 | $ | 162 | $ | 325 | ||||||||
Direct costs incurred with the IPO included in other assets and accrued expenses | $ | — | $ | 3,251 | $ | — | $ | 3,251 | ||||||||
Tax distributions to unitholders included in accrued expenses | $ | 1,646 | $ | — | $ | 1,646 | $ | — |
Clearwater Analytics Holdings, Inc. | ||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||
2022 | 2021 | |||||||||||||||
Net loss | $ | (3,026) | (4) | % | $ | (11,428) | (18) | % | ||||||||
Adjustments: | ||||||||||||||||
Interest (income) expense, net | (693) | -1 | % | 8,302 | 13 | % | ||||||||||
Loss on debt extinguishment | — | 0 | % | 10,303 | 16 | % | ||||||||||
Depreciation and amortization | 1,381 | 2 | % | 792 | 1 | % | ||||||||||
Equity-based compensation | 16,701 | 22 | % | 7,683 | 12 | % | ||||||||||
Tax receivable agreement expense | 2,600 | 3 | % | — | 0 | % | ||||||||||
Transaction expenses(1) | 1,327 | 2 | % | — | 0 | % | ||||||||||
Other expenses(2) | 559 | 1 | % | 1,430 | 2 | % | ||||||||||
Adjusted EBITDA | 18,849 | 25 | % | 17,082 | 26 | % | ||||||||||
Revenue | $ | 76,552 | $ | 64,489 | ||||||||||||
Nine Months Ended September 30, | ||||||||||||||||
2022 | 2021 | |||||||||||||||
Net loss | $ | (4,728) | (2) | % | $ | (8,228) | (5) | % | ||||||||
Adjustments: | ||||||||||||||||
Interest expense, net | 139 | 0 | % | 25,261 | 14 | % | ||||||||||
Loss on debt extinguishment | — | 0 | % | 10,303 | 6 | % | ||||||||||
Depreciation and amortization | 3,499 | 2 | % | 2,204 | 1 | % | ||||||||||
Equity-based compensation | 48,768 | 22 | % | 19,239 | 11 | % | ||||||||||
Tax receivable agreement expense | 5,700 | 3 | % | — | 0 | % | ||||||||||
Transaction expenses(1) | 1,327 | 1 | % | — | 0 | % | ||||||||||
Other expenses(2) | 2,081 | 1 | % | 3,825 | 2 | % | ||||||||||
Adjusted EBITDA | 56,786 | 26 | % | 52,604 | 29 | % | ||||||||||
Revenue | $ | 220,739 | 100 | % | $ | 182,259 | 100 | % |
(1) Transaction expenses include legal, accounting, banking, diligence, and other expenses related to completed and contemplated acquisitions. |
(2) Other expenses includes management fees to our investors, income taxes, foreign exchange gains and losses 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. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Up-C structure expenses | $ | — | $ | 726 | $ | 158 | $ | 1,652 | ||||||||
Management fees and reimbursed expenses | 604 | 618 | 1,792 | 1,702 | ||||||||||||
Provision for income tax expense | 424 | 216 | 959 | 536 | ||||||||||||
Miscellaneous | (469) | (130) | (828) | (65) | ||||||||||||
Total other expenses | $ | 559 | $ | 1,430 | $ | 2,081 | $ | 3,825 |
Clearwater Analytics Holdings, Inc. | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Net cash provided by (used in) operating activities | $ | 14,680 | $ | 7,264 | $ | 39,847 | $ | (9,059) | ||||||||
Less: Purchases of property and equipment | 1,912 | 1,268 | 5,880 | 3,499 | ||||||||||||
Free Cash Flow | $ | 12,768 | $ | 5,996 | $ | 33,967 | $ | (12,558) |
Clearwater Analytics Holdings, Inc. | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Revenue | $ | 76,552 | $ | 64,489 | $ | 220,739 | $ | 182,259 | |||||||
Gross profit | $ | 53,832 | $ | 46,704 | $ | 155,928 | $ | 134,576 | |||||||
Adjustments: | |||||||||||||||
Equity-based compensation | 2,594 | 899 | 7,281 | 2,171 | |||||||||||
Depreciation and amortization | 863 | 457 | 2,197 | 1,228 | |||||||||||
Gross profit, non-GAAP | $ | 57,289 | $ | 48,060 | $ | 165,406 | $ | 137,975 | |||||||
As a percentage of revenue, non-GAAP | 75 | % | 75 | % | 75 | % | 76 | % | |||||||
Cost of Revenue | $ | 22,720 | $ | 17,785 | $ | 64,811 | $ | 47,683 | |||||||
Adjustments: | |||||||||||||||
Equity-based compensation | 2,594 | 899 | 7,281 | 2,171 | |||||||||||
Depreciation and amortization | 863 | 457 | 2,197 | 1,228 | |||||||||||
Cost of revenue, non-GAAP | $ | 19,263 | $ | 16,429 | $ | 55,333 | $ | 44,284 | |||||||
As a percentage of revenue, non-GAAP | 25 | % | 25 | % | 25 | % | 24 | % | |||||||
Research and development | $ | 25,438 | $ | 18,415 | $ | 69,568 | $ | 50,991 | |||||||
Adjustments: | |||||||||||||||
Equity-based compensation | 5,133 | 2,226 | 14,003 | 5,912 | |||||||||||
Depreciation and amortization | 396 | 221 | 878 | 643 | |||||||||||
Research and development, non-GAAP | $ | 19,909 | $ | 15,968 | $ | 54,687 | $ | 44,436 | |||||||
As a percentage of revenue, non-GAAP | 26 | % | 25 | % | 25 | % | 24 | % | |||||||
Sales and marketing | $ | 13,187 | $ | 10,126 | $ | 38,254 | $ | 26,151 | |||||||
Adjustments: | |||||||||||||||
Equity-based compensation | 2,941 | 1,655 | 9,452 | 3,782 | |||||||||||
Depreciation and amortization | 67 | 63 | 199 | 183 | |||||||||||
Sales and marketing, non-GAAP | $ | 10,179 | $ | 8,408 | $ | 28,603 | $ | 22,186 | |||||||
As a percentage of revenue, non-GAAP | 13 | % | 13 | % | 13 | % | 12 | % | |||||||
General and administrative | $ | 16,371 | $ | 10,900 | $ | 46,864 | $ | 29,627 | |||||||
Adjustments: | |||||||||||||||
Equity-based compensation | 6,033 | 2,903 | 18,032 | 7,374 | |||||||||||
Depreciation and amortization | 55 | 51 | 225 | 150 | |||||||||||
Management fees and reimbursed expenses | 604 | 618 | 1,792 | 1,702 | |||||||||||
Transaction expenses | 1,327 | — | 1,327 | — | |||||||||||
Up-C structure expenses | — | 726 | 158 | 1,652 | |||||||||||
General and administrative, non-GAAP | $ | 8,352 | $ | 6,602 | $ | 25,330 | $ | 18,749 | |||||||
As a percentage of revenue, non-GAAP | 11 | % | 10 | % | 11 | % | 10 | % | |||||||
Income (loss) from operations | $ | (1,164) | $ | 7,263 | $ | 1,242 | $ | 27,807 | |||||||
Adjustments: | |||||||||||||||
Equity-based compensation | 16,701 | 7,683 | 48,768 | 19,239 | |||||||||||
Depreciation and amortization | 1,381 | 792 | 3,499 | 2,204 | |||||||||||
Management fees and reimbursed expenses | 604 | 618 | 1,792 | 1,702 | |||||||||||
Transaction expenses | 1,327 | — | 1,327 | — | |||||||||||
Up-C structure expenses | — | 726 | 158 | 1,652 | |||||||||||
Income from operations, non-GAAP | $ | 18,849 | $ | 17,082 | $ | 56,786 | $ | 52,604 | |||||||
As a percentage of revenue, non-GAAP | 25 | % | 26 | % | 26 | % | 29 | % | |||||||
Net loss | $ | (3,026) | $ | (11,428) | $ | (4,728) | $ | (8,228) | |||||||
Adjustments: | |||||||||||||||
Equity-based compensation | 16,701 | 7,683 | 48,768 | 19,239 | |||||||||||
Depreciation and amortization | 1,381 | 792 | 3,499 | 2,204 | |||||||||||
Tax receivable agreement expense | 2,600 | — | 5,700 | — | |||||||||||
Management fees and reimbursed expenses | 604 | 618 | 1,792 | 1,702 | |||||||||||
Transaction expenses | 1,327 | — | 1,327 | — | |||||||||||
Up-C structure expenses | — | 726 | 158 | 1,652 | |||||||||||
Loss on extinguishment of debt | — | 10,303 | — | 10,303 | |||||||||||
Tax impacts of adjustments to net loss(1) | (5,803) | — | (16,668) | — | |||||||||||
Net income, non-GAAP | $ | 13,784 | $ | 8,694 | $ | 39,848 | $ | 26,872 | |||||||
As a percentage of revenue, non-GAAP | 18 | % | 13 | % | 18 | % | 15 | % | |||||||
Net income per share(2) - basic, non-GAAP | $ | 0.07 | NMF | $ | 0.22 | NMF | |||||||||
Net income per share(2) - diluted, non-GAAP | $ | 0.06 | NMF | $ | 0.16 | NMF | |||||||||
Weighted-average common shares outstanding - basic | 187,824,531 | 177,449,844 | 184,026,378 | 177,449,844 | |||||||||||
Weighted-average common shares outstanding - diluted | 248,934,095 | 235,978,541 | 249,613,673 | 235,978,541 |
NMF - not meaningful | |
(1) The estimated non-GAAP effective tax rate was 29% for the three and nine months ended September 30, 2022 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. | |
(2) Basic and diluted net income per share of Class A and Class D common stock is applicable only for the periods after the IPO and related transactions. |
View original content to download multimedia: https://www.prnewswire.com/news-releases/clearwater-analytics-announces-third-quarter-2022-financial-results-301666708.html
SOURCE Clearwater Analytics, LLC