Clearwater Analytics reports Q3 EPS 12c, consensus 11c

Reports Q3 revenue $115.8M, consensus $113.43M. “It’s very gratifying to see continued excellence in execution. Our results are truly outstanding – revenue growth, ARR growth, adjusted EBITDA, cash flow generation, GRR, and NRR were all very strong. And these results were achieved while continuing to make substantial investments in R&D, operations, and go-to-market for the short, medium, and long term,” said Sandeep Sahai, CEO of Clearwater Analytics (CWAN). “Little has changed in our strategy. We continue to make meaningful investments in developing new products focused on both new logos and current clients. Our single instance, multi-tenant platform gives us a strong competitive advantage in developing generative AI applications that are capable of delivering innovative solutions to clients while increasing our operational efficiency. By capitalizing on these opportunities and remaining agile, we’re extending our long-term market differentiation and accelerating our journey towards building the world’s leading investment management platform. We are excited to have entered into an agreement to terminate the Company’s Tax Receivable Agreement. We believe this transaction, which is subject to approval by our unaffiliated shareholders, will generate significant savings, allow for better future use of Company cash flows and provide greater certainty to the Company’s shareholders about its future financial performance. We believe that it is advisable to pursue this transaction at this time while certain of the TRA parties hold significant equity stakes in Clearwater, which would mean that such TRA parties would benefit from any potential upside in the Company’s equity and be more inclined to agree to terms of the Amendment and the TRA Buyout that are more favorable to the Company than they otherwise would, which may not be the case in the future.”