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Clearwater Analytics Announces Fourth Quarter and Full Year 2023 Financial Results

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Q4 2023 Revenue of $99.0 million, up 20% year-over-year 

Full Year 2023 Revenue of $368.2 million, up 21% year-over-year

Q4 2023 Adjusted EBITDA margin of 30.3%; Q4 2023 Free Cash Flows of $22.5 million

Q4 2023 Gross Revenue Retention Rate of 98%; Net Revenue Retention Rate of 107%

BOISE, Idaho, Feb. 28, 2024 /PRNewswire/ — Clearwater Analytics Holdings, Inc. (NYSE: CWAN) (“Clearwater Analytics” or the “Company”), a leading provider of SaaS-based investment management, accounting, reporting, and analytics solutions, today announced its financial results for the quarter ended December 31, 2023.

Fourth Quarter 2023

Full Year 2023 

Revenue

$99.0 million

$368.2 million

Year-over-Year Revenue Growth %

19.8 %

21.3 %

Annualized Recurring Revenue (ARR)1

$379.1 million

Year-over-Year ARR Growth %

17.2 %

Net  Loss

$(3.4) million

$(23.1) million

Net Loss Margin %

(3.5) %

(6.3) %

Adjusted EBITDA

$30.0 million

$105.9 million

Adjusted EBITDA Margin %

30.3 %

28.8 %

1ARR is a point in time metric, therefore fourth quarter 2023 and full year 2023 results are the same.

“We had a strong 2023, and the durability of our business was on full display as we delivered a full year revenue growth of 21%, while meaningfully improving both gross margin and Adjusted EBITDA. The number of $1 million-plus clients grew by 28% over the last year, which is a testament to the advanced capabilities of our platform, now fully transitioned to the public cloud. With this transition complete, we are very excited to allocate more than 60% of R&D capacity to fueling growth,” said Sandeep Sahai, Chief Executive Officer. “Thanks to the continuing advances in using machine learning and artificial intelligence for operational efficiency and the increasing network effect, the operations team was actually smaller at the end of 2023 than it was at the beginning of the year, demonstrating the disruptive nature of a single instance, multi-tenant business model. We recorded our best-ever customer satisfaction and NPS scores and more than 150 programs went live on our platform this past year. Finally, we are thrilled to welcome three new senior executives to the Company, bolstering our presence in Europe and Asia. Throughout our journey, we remain dedicated to fulfilling the long-term needs of our clients and relentlessly pushing the boundaries of innovation across the investment lifecycle.”

Fourth Quarter 2023 Financial Results Summary

Revenue: Total revenue for the fourth quarter of 2023 was $99.0 million, an increase of 19.8%, from $82.7 million in the fourth quarter of 2022.
 Gross Profit: Gross profit for the fourth quarter of 2023 increased to $70.7 million, compared with $59.7 million in the fourth quarter of 2022. Non-GAAP gross profit for the fourth quarter of 2023 was $76.2 million, which equates to a 77.0% non-GAAP gross margin and an increase of 120 basis points over the fourth quarter of 2022.
 Net Income/(Loss): Net loss for the fourth quarter of 2023 was $3.4 million compared with net loss of $2.0 million in the fourth quarter of 2022. Net loss for the fourth quarter included total equity-based compensation expense and related payroll taxes of $23.7 million, which decreased compared to the third quarter as the full year revenue growth of JUMP products did not meet the performance vesting for threshold RSUs related to the JUMP acquisition, resulting in a reversal of $6.9 million of expense previously recognized in the year. Non-GAAP net income for the fourth quarter of 2023 increased to $24.1 million from $17.2 million in the fourth quarter of 2022.
 Adjusted EBITDA: Adjusted EBITDA for the fourth quarter of 2023 was $30.0 million, up from $24.3 million in the fourth quarter of 2022. Adjusted EBITDA margin for the fourth quarter of 2023 was 30.3%, an increase of 80 basis points over the fourth quarter of 2022.
 Cash Flows: Operating cash flows for the fourth quarter of 2023 were $24.1 million. Free cash flows for the fourth quarter of 2023 increased to $22.5 million from $16.6 million in the fourth quarter of 2022. For the full year 2023, free cash flow was $79.0 million, an increase of 57.2% over the full year 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 fourth quarter of 2023. For the full year of 2023, net loss per basic and diluted share was $0.11. For the fourth quarter of 2023, non-GAAP net income per basic share was $0.12, and non-GAAP net income per diluted share was $0.10.
 Cash, cash equivalents, and investments were $317.7 million as of December 31, 2023, compared to $255.6 million as of December 31, 2022. Total debt, net of debt issuance cost, was $48.0 million as of December 31, 2023.

Fourth Quarter 2023 Key Metrics Summary

Annualized Recurring Revenue: As of December 31, 2023, annualized recurring revenue (“ARR”) reached $379.1 million, an increase of 17.2% from $323.5 million as of December 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 December 31, 2023, the gross revenue retention rate was 98%, consistent with the Company’s gross revenue retention rate as of December 31, 2022. The Company has reported a gross revenue retention rate of 98% for nineteen out of the twenty prior quarters.
 
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 December 31, 2023, the net revenue retention rate was 107%, compared to 106% as of 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.
 Clients: As of December 31, 2023, the Company had 1,349 clients, and 86 clients that contributed at least $1.0 million in ARR, an increase of 28.4% from 67 clients that contributed at least $1.0 million in ARR as of December 31, 2022.
 Assets Under Management (AUM): As of December 31, 2023, the platform processes and reports on $7.3 trillion assets daily, compared to $6.4 trillion assets daily as of December 31, 2022.

Recent Business Highlights

Notably, while AUM on the Clearwater platform grew to $7.3 trillion, the Company ended 2023 at essentially the same headcount as the end of 2022.
 After completing its transition to the cloud, Clearwater Analytics now devotes more than 60% of its R&D resources to fostering innovation across our comprehensive suite of product offerings. R&D is focused on:

Investment Data Consolidation: Enhancing our products, like Clearwater Prism and Clearwater for IBOR, to provide a full 360-degree look at investment data for analytics and reporting, while bringing agility to investment managers and buy-side investors so they can improve efficiencies and increase AUM.
 Asset Class and Funds Expansion: Delivery of more comprehensive solutions such as Clearwater LPx, Clearwater MLx, Clearwater LPx Clarity, Clearwater for Stable Value Funds and more, to provide the deep details required for compliance and risk across varying asset and fund classes.
 Front and Middle Office Solutions: Expansion into new buyers across the investment lifecycle with products like Clearwater Risk & Analytics, Clearwater Performance & Attribution, Clearwater JUMP and Clearwater JUMP Start.
 Platform Innovations: Applying innovations, such as Premium Close Package and Clearwater Tri-Partite Transactions, to our accounting and reporting platform for our existing clientele.
 New Frontiers: Using the latest technologies, such as Clearwater’s CWIC apps and Clearwater Insights, to drive innovation across the investment lifecycle.

Clearwater Analytics expanded its footprint within existing clients and added marquee clients such as AppsFlyer, Assured Life Association, Caisse Centrale de Réassurance, Carpenters’ Combined Funds Pension, Colcom Foundation, Cross River Bank, Equinix, Evergreen Annuity & Life Co, Federal Life Insurance Company, Globe Life, IQUW Administration Services Limited, Metropolitan Police Friendly Society Ltd., Millers Mutual Insurance Group, Openly Holdings Corp, Pro-Demnity Insurance Company, Ronald McDonald House Charities of Southern California, Salud Integral en la Montana, United Casualty and Surety Insurance Company, USA Underwriters, and Vermont Community Foundation.
 Clearwater Analytics successfully drove cross-sell and upsell motions in the fourth quarter. Highlights include:

A growing roster of clients, including Globe Life, that use both Clearwater’s JUMP solution for OMS/PMS and Clearwater’s accounting and reconciliation solution.
 Noteworthy new Clearwater Prism clients who have chosen our market-leading next-gen investment data management hub for enhanced client portal and reporting.
 The Clearwater for Stable Value solution was chosen by T. Rowe Price to support their growing stable value business.
 Clearwater also welcomed its first clients for Clearwater MLx, a new solution for mortgage loan detailed accounting. The Company continued to capitalize on the market need for detailed LP accounting with our best-ever quarterly sales of Clearwater LPx, a full-service solution for private funds, and LPx Clarity, an extension of Clearwater LPx that provides look-through insight into private assets, facilitating asset allocation and risk management decisions.
 To support the Company’s global expansion efforts and go-to market strategy, Clearwater Analytics recently announced new leadership appointments. Shane Akeroyd has been named as Chief Strategy Officer, Keith Viverito as Managing Director for EMEA, and Ann-Sophie Skjoldager Bom as Sales Director for Strategic Asset clients.
 Clearwater Analytics published several reports in the fourth quarter, including the 2023 Insurer Cash and Short-Term Investment Management Market Outlook study, the 2024 Hong Kong & Singapore Insurance Industry Outlook report, and The Digital Promise: Operational Challenges, Approaches, and Progress for European Insurers.
 Clearwater Analytics announced that it won the Chartis Research RiskTech Buyside 50 Award in the Investment Lifecycle – Insurance/Pension Funds category. The RiskTech Buyside 50 rankings honor the top financial technology vendors in the investment management industry. For the second consecutive year, Clearwater Analytics received the highest score in breadth of coverage, depth of functionality, technology and techniques, strategy and innovation, and market presence.

First Quarter and Full Year 2024 Guidance

First Quarter 2024

Full Year 2024

Revenue

$100.5 million

$431 million to $437 million

Year-over-Year Growth %

~19%

~17% to 19%

Adjusted EBITDA

$28.8 million

$135 million to $137 million

Adjusted EBITDA Margin %

~29%

~31%

Total equity-based compensation expense and related payroll taxes

~$106 million

Depreciation and Amortization

~$11 million

Non-GAAP effective tax rate

25 %

Diluted non-GAAP share count

~258 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 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 February 28, 2024, at 5:00 p.m. Eastern time to discuss fourth quarter and full year 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 $7.3 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, transaction expenses, 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,” “aim,” “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 market developments, including artificial intelligence, 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, 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 U.S. Securities and Exchange Commission (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, those discussed under “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 that will be filed following this earnings release, 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)

December 31,

December 31,

2023

2022

Assets

Current assets:

Cash and cash equivalents

$           221,765

$           250,724

Short-term investments

74,457

4,890

Accounts receivable, net

92,091

72,575

Prepaid expenses and other current assets

27,683

28,157

Total current assets

415,996

356,346

Property and equipment, net

15,349

15,064

Operating lease right-of-use assets, net

22,554

24,114

Deferred contract costs, non-current

6,439

6,563

Debt issuance costs – line of credit

533

728

Other non-current assets

4,907

5,880

Intangible assets, net

26,132

29,456

Goodwill

45,338

43,791

Long-term investments

21,495

Total assets

$           558,743

$           481,942

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$               3,062

$               3,092

Accrued expenses and other current liabilities

49,535

42,119

Notes payable, current portion

2,750

2,750

Operating lease liability, current portion

6,551

5,851

Tax receivable agreement liability

18,894

12,200

Total current liabilities

80,792

66,012

Notes payable, less current maturities and unamortized debt issuance costs

45,828

48,492

Operating lease liability, less current portion

16,948

19,505

Other long-term liabilities

5,518

9,547

Total liabilities

149,086

143,556

Stockholders’ Equity

Class A common stock, par value $0.001 per share; 1,500,000,000 shares authorized,
127,604,185 shares issued and outstanding as of December 31, 2023, 61,148,890 shares issued
and outstanding as of December 31, 2022

128

61

Class B common stock, par value $0.001 per share; 500,000,000 shares authorized, 111,191
shares issued and outstanding as of December 31, 2023, 1,439,251 shares issued
and outstanding as of December 31, 2022

1

Class C common stock, par value $0.001 per share; 500,000,000 shares authorized, 32,684,156
shares issued and outstanding as of December 31, 2023, 47,377,587 shares issued and
outstanding as of December 31, 2022

33

47

Class D common stock, par value $0.001 per share; 500,000,000 shares authorized, 82,955,977
shares issued and outstanding as of December 31, 2023, 130,083,755 shares issued and
outstanding as of December 31, 2022

83

130

Additional paid-in-capital

532,507

455,320

Accumulated other comprehensive income

2,909

609

Accumulated deficit

(181,331)

(186,647)

Total stockholders’ equity attributable to Clearwater Analytics Holdings, Inc.

354,329

269,521

Non-controlling interests

55,328

68,865

Total stockholders’ equity

409,657

338,386

Total liabilities and stockholders’ equity

$           558,743

$           481,942

 

Clearwater Analytics Holdings, Inc.

Consolidated Statements of Operations

(In thousands, except share amounts and per share amounts, unaudited)

Three Months Ended
December 31,

Year Ended December 31,

2023

2022

2023

2022

Revenue

$             99,019

$             82,687

$           368,168

$           303,426

Cost of revenue(1)

28,335

22,973

107,127

87,784

Gross profit

70,684

59,714

261,041

215,642

Operating expenses:

Research and development(1)

33,728

24,553

123,925

94,120

Sales and marketing(1)

16,316

14,383

60,365

52,638

General and administrative(1)

18,050

16,903

93,496

63,767

Total operating expenses

68,094

55,839

277,786

210,525

Income (loss) from operations

2,590

3,875

(16,745)

5,117

Interest income,  net

(1,979)

(1,276)

(6,401)

(1,137)

Tax receivable agreement expense

8,284

5,939

14,396

11,639

Other (income) expense, net

(669)

778

(1,874)

(50)

Loss before income taxes

(3,046)

(1,566)

(22,866)

(5,335)

Provision for income taxes

401

401

217

1,360

Net loss

(3,447)

(1,967)

(23,083)

(6,695)

Less: Net income (loss) attributable to non-controlling interests

739

941

(1,456)

1,272

Net loss attributable to Clearwater Analytics Holdings, Inc.

$             (4,186)

$             (2,908)

$           (21,627)

$             (7,967)

Net loss per share attributable to Class A and Class D common stock:

Basic and diluted

$               (0.02)

$               (0.02)

$               (0.11)

$               (0.04)

Weighted average shares of Class A and Class D common stock

outstanding:

Basic and diluted

206,193,802

190,015,070

199,691,873

185,560,683

(1) Amounts include equity-based compensation as follows:                       

Cost of revenue

$               3,378

$               1,761

$             12,215

$               9,043

Operating expenses:

Research and development

7,346

3,947

24,739

17,950

Sales and marketing

4,622

3,259

15,843

12,711

General and administrative

6,975

7,955

51,650

25,987

Total equity-based compensation expense

$             22,321

$             16,922

$           104,447

$             65,691

 

Clearwater Analytics Holdings, Inc.

Consolidated Statements of Cash Flows

(In thousands, unaudited)

Three Months Ended

December 31,

Year Ended December 31,

2023

2022

2023

2022

OPERATING ACTIVITIES

Net loss

$             (3,447)

$             (1,967)

$           (23,083)

$             (6,695)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

2,593

1,640

9,929

5,139

Noncash operating lease cost

1,952

1,600

7,619

5,950

Equity-based compensation

22,321

16,922

104,447

65,691

Amortization of deferred contract acquisition costs

1,200

1,106

4,763

4,327

Amortization of debt issuance costs, included in interest expense

71

70

280

279

Accretion of discount on investments

(573)

(1,474)

Deferred tax benefit

(913)

(214)

(1,665)

(803)

Realized gain on investments

(89)

Changes in operating assets and liabilities, excluding the impact of business
acquisitions:

Accounts receivable, net

(434)

(4,444)

(19,298)

(19,098)

Prepaid expenses and other assets

(3,068)

(6,659)

1,151

(4,956)

Deferred contract acquisition costs

(2,405)

(2,253)

(5,067)

(5,845)

Accounts payable

(224)

1,369

(115)

1,609

Accrued expenses and other liabilities

7,081

4,845

1,204

207

Tax receivable agreement liability

(61)

6,500

6,000

12,200

Net cash provided by operating activities

24,093

18,515

84,602

58,005

INVESTING ACTIVITIES

Purchases of property and equipment

(1,562)

(1,877)

(5,624)

(7,758)

Purchase of held to maturity investments

(3,004)

(3,000)

Purchases of available-for-sale investments

(13,160)

(124,178)

Proceeds from sale of available-for-sale investments

5,950

Proceeds from maturities of investments

15,280

31,801

Acquisition of business, net of cash acquired

(65,793)

(65,793)

Net cash provided by (used in) investing activities

558

(67,670)

(95,055)

(76,551)

FINANCING ACTIVITIES

Proceeds from exercise of options

274

10,358

4,738

18,284

Taxes paid related to net share settlement of equity awards

(5,895)

(624)

(20,784)

(3,189)

Proceeds from employee stock purchase plan

1,994

1,814

4,588

4,215

Repayments of borrowings

(688)

(688)

(2,749)

(2,750)

Payment of costs associated with the IPO

(214)

Payment of tax distributions

(2,149)

(117)

(2,184)

(117)

Payment of business acquisition holdback liability

(2,900)

(2,900)

Net cash provided by (used in) financing activities

(9,364)

10,743

(19,291)

16,229

Effect of exchange rate changes on cash and cash equivalents

813

613

785

(1,556)

Change in cash and cash equivalents during the period

16,100

(37,799)

(28,959)

(3,873)

Cash and cash equivalents, beginning of period

205,665

288,523

250,724

254,597

Cash and cash equivalents, end of period

$           221,765

$           250,724

$           221,765

$           250,724

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Cash paid for interest

$                  924

$                  629

$               3,454

$               1,395

Cash paid for income taxes

$                  395

$                  619

$               2,432

$               2,044

NON-CASH INVESTING AND FINANCING ACTIVITIES

Purchase of property and equipment included in accounts payable and
accrued expense

$                  435

$                  350

$                  435

$                  350

Business acquisition holdback liability included in accrued expense and
other long-term liabilities

$                    —

$               6,999

$                    —

$               6,999

Tax distributions payable to Continuing Equity Owners included in accrued
expenses

$               2,945

$               3,196

$               2,945

$               3,196

 

Clearwater Analytics Holdings, Inc.

Reconciliation of Net Loss to Adjusted EBITDA

(In thousands, unaudited)

Three Months Ended December 31,

2023

2022

(in thousands, except percentages)

Net loss

$            (3,447)

(3 %)

$            (1,967)

(2 %)

Adjustments:

Interest income, net

(1,979)

(2 %)

(1,276)

(2 %)

Depreciation and amortization

2,593

3 %

1,640

2 %

Equity-based compensation expense and related payroll taxes

27,071

27 %

15,935

19 %

Equity-based compensation (benefit) expense related to JUMP acquisition

(3,411)

(3 %)

1,821

2 %

Tax receivable agreement expense

8,284

8 %

5,939

7 %

Transaction expenses

441

0 %

384

0 %

Other expenses(1)

430

0 %

1,873

2 %

Adjusted EBITDA

29,982

30 %

24,349

29 %

Revenue

$           99,019

100 %

$           82,687

100 %

Year Ended December 31,

2023

2022

(in thousands, except percentages)

Net loss

$          (23,083)

(6 %)

$            (6,695)

(2 %)

Adjustments:

Interest income, net

(6,401)

(2 %)

(1,137)

0 %

Depreciation and amortization

9,929

3 %

5,139

2 %

Equity-based compensation expense and related payroll taxes

94,906

26 %

64,704

21 %

Equity-based compensation expense related to JUMP acquisition

13,172

4 %

1,821

1 %

Tax receivable agreement expense

14,396

4 %

11,639

4 %

Transaction expenses

2,052

1 %

1,711

1 %

Other expenses(1)

934

0 %

3,954

1 %

Adjusted EBITDA

105,905

29 %

81,136

27 %

Revenue

$         368,168

100 %

$         303,426

100 %

(1)

Other expenses include management fees to our investors, provision for 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
December 31,

Year Ended
December 31,

2023

2022

2023

2022

(in thousands)

Up-C structure expenses

$                   —

$                   —

$                   —

$                 158

Amortization of prepaid management fees and reimbursable expenses

698

694

2,592

2,486

Provision for income taxes

401

401

217

1,360

Other (income) expense, net

(669)

778

(1,874)

(50)

Total other expenses

$                 430

$              1,873

$                 934

$              3,954

 

Clearwater Analytics Holdings, Inc.

Reconciliation of Free Cash Flow

(In thousands, unaudited)

Three Months Ended December 31,

Year Ended December 31,

2023

2022

2023

2022

Net cash provided by operating activities

$           24,093

$           18,515

$           84,602

$           58,005

Less: Purchases of property and equipment

1,562

1,877

5,624

7,758

Free Cash Flow

$           22,531

$           16,638

$           78,978

$           50,247

 

Clearwater Analytics Holdings, Inc.

Reconciliation of Non-GAAP Information

(In thousands, except share amounts and per share amounts, unaudited)

Three Months Ended December 31,

Year Ended December 31,

2023

2022

2023

2022

Revenue

$        99,019

$        82,687

$      368,168

$      303,426

Gross profit

$        70,684

$        59,714

$      261,041

$      215,642

Adjustments:

Equity-based compensation expense and related payroll taxes

3,411

1,801

12,734

9,083

Depreciation and amortization

2,102

1,093

7,999

3,290

Gross profit, non-GAAP

$        76,197

$        62,608

$      281,774

$      228,015

As a percentage of revenue, non-GAAP

77 %

76 %

77 %

75 %

Cost of Revenue

$        28,335

$        22,973

$      107,127

$        87,784

Adjustments:

Equity-based compensation expense and related payroll taxes

3,411

1,801

12,734

9,083

Depreciation and amortization

2,102

1,093

7,999

3,290

Cost of revenue, non-GAAP

$        22,822

$        20,079

$        86,394

$        75,411

As a percentage of revenue, non-GAAP

23 %

24 %

23 %

25 %

Research and development

$        33,728

$        24,553

$      123,925

$        94,120

Adjustments:

Equity-based compensation expense and related payroll taxes

7,035

4,013

24,221

18,016

Equity-based compensation expense related to JUMP acquisition

359

1,406

Depreciation and amortization

258

416

1,044

1,293

Research and development, non-GAAP

$        26,076

$        20,124

$        97,254

$        74,811

As a percentage of revenue, non-GAAP

26 %

24 %

26 %

25 %

Sales and marketing

$        16,316

$        14,383

$        60,365

$        52,638

Adjustments:

Equity-based compensation expense and related payroll taxes

4,636

3,937

16,419

13,389

Depreciation and amortization

148

87

589

286

Sales and marketing, non-GAAP

$        11,532

$        10,359

$        43,357

$        38,963

As a percentage of revenue, non-GAAP

12 %

13 %

12 %

13 %

General and administrative

$        18,050

$        16,903

$        93,496

$        63,767

Adjustments:

Equity-based compensation expense and related payroll taxes

11,989

6,184

41,532

24,216

Equity-based compensation (benefit) expense related to JUMP acquisition

(3,770)

1,821

11,766

1,821

Depreciation and amortization

85

44

297

270

Amortization of prepaid management fees and reimbursable expenses

698

694

2,592

2,486

Transaction expenses

441

384

2,052

1,711

Up-C structure expenses

158

General and administrative, non-GAAP

$          8,607

$          7,776

$        35,258

$        33,105

As a percentage of revenue, non-GAAP

9 %

9 %

10 %

11 %

Income (loss) from operations

$          2,590

$          3,875

$      (16,745)

$          5,117

Adjustments:

Equity-based compensation expense and related payroll taxes

27,071

15,935

94,906

64,704

Equity-based compensation (benefit) expense related to JUMP acquisition

(3,411)

1,821

13,172

1,821

Depreciation and amortization

2,593

1,640

9,929

5,139

Amortization of prepaid management fees and reimbursable expenses

698

694

2,592

2,486

Transaction expenses

441

384

2,052

1,711

Up-C structure expenses

158

Income from operations, non-GAAP

$        29,982

$        24,349

$      105,905

$        81,136

As a percentage of revenue, non-GAAP

30 %

29 %

29 %

27 %

Net loss

$        (3,447)

$        (1,967)

$      (23,083)

$        (6,695)

Adjustments:

Equity-based compensation expense and related payroll taxes

27,071

15,935

94,906

64,704

Equity-based compensation (benefit) expense related to JUMP acquisition

(3,411)

1,821

13,172

1,821

Depreciation and amortization

2,593

1,639

9,929

5,139

Tax receivable agreement expense

8,284

5,939

14,396

11,639

Amortization of prepaid management fees and reimbursable expenses

698

694

2,592

2,486

Transaction expenses

441

384

2,052

1,711

Up-C structure expenses

158

Tax impacts of adjustments to net loss(1)

(8,158)

(7,205)

(28,545)

(23,874)

Net income, non-GAAP

$        24,071

$        17,240

$        85,419

$        57,089

As a percentage of revenue, non-GAAP

24 %

21 %

23 %

19 %

Net income per share – basic, non-GAAP

$            0.12

$            0.09

$            0.43

$            0.31

Net income per share – diluted, non-GAAP

$            0.10

$            0.07

$            0.33

$            0.23

Weighted-average common shares outstanding – basic

206,193,802

190,015,070

199,691,873

185,560,683

Weighted-average common shares outstanding – diluted

252,215,606

252,020,192

255,750,590

249,664,138

(1)

The non-GAAP effective tax rate was 25% and 29% for the three months and year ended December 31, 2023 and 2022, respectively, 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 Holdings, Inc.

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MaryRuth’s Celebrates TikTok Shop Super Brand Day With Exclusive Offers and Viral Favorites

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LOS ANGELES, Jan. 12, 2025 /PRNewswire/ — MaryRuth’s, the trusted leader in liquid vitamins and wellness products, is thrilled to announce its participation in TikTok Shop’s Super Brand Day from January 12 to 18, 2025. For this exclusive event, MaryRuth’s is celebrating with up to 40% off shopwide and exclusive multi-pack bundles of their top-selling products including viral favorites.

MaryRuth’s Liquid Morning Multivitamin + Hair Growth became a social media sensation in 2024, with over 369,000 bottles sold and 18,000 5-star reviews from customers who rave about its convenience, taste, and powerful benefits for health and hair growth. With these exclusive deals on TikTok Shop, MaryRuth’s aims to make its most-loved products even more accessible to its community to kick off healthy habits in 2025.

“We are so thrilled to be part of TikTok Shop’s Super Brand Day,” said MaryRuth Ghiyam, Founder and CEO of MaryRuth’s. “Our mission has always been to help people feel their best with high-quality, delicious, easy-to-use wellness products, and this event allows us to reach even more people with great deals on the products they love.”

Customers can take advantage of up to 40% off all products on MaryRuth’s TikTok Shop and shop specially curated bundles, including multi-packs of the Liquid Morning Multivitamin + Hair Growth. Designed to support overall health as well as hair thickness, hair growth, and skin health, this multivitamin has become a must-have for many health-conscious individuals.

MaryRuth’s will also showcase engaging TikTok content to celebrate this partnership, including product demonstrations, customer testimonials, and exclusive offers for TikTok users.

Mark your calendars for January 12-18, 2025, and join MaryRuth’s in celebrating TikTok Shop Super Brand Day. Don’t miss this opportunity to shop viral favorites and stock up to support your wellness for the new year and beyond!

About MaryRuth’s
MaryRuth was inspired to help empower others to take wellness into their own hands after seeing how health issues personally impacted her loved ones. As a health educator, nutritional consultant, culinary chef, and mom to 4 children, MaryRuth was driven to formulate a delicious, easy-to-take multivitamin with quality ingredients for her clients and family. This led to the creation of what is now America’s #1 best-selling liquid multivitamin. Through our growing product line, we aim to continue what was MaryRuth’s original mission: helping you to create small, healthy habits to move forward every day.

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SOURCE MaryRuth Organics

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Neusoft Education officially renamed as ” Neutech Group Limited “, accelerating the advancement of the “education-healthcare-wellness and mind tour” strategy in a new stage

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HONG KONG, Jan. 11, 2025 /PRNewswire/ — On 9 January, Neusoft Education (09616.HK) announced that the Company’s English name will change from “Neusoft Education Technology Co. Limited” to “Neutech Group Limited”. The name change will take effect on the same day.

According to the announcement, the Company’s renaming to “Neutech Group Limited” better reflects its strategic transformation and upgrade, and more accurately demonstrates its five-in-one industry layout of “education-healthcare-wellness and mind tour”. This will establish a new corporate brand image and highlight the Company’s comprehensive strength in technological innovation and integrated development. Starting with the name change, the Company will focus on education and adapt to the aging economy, promoting the parallel development of academic education, continuing education, senior education, and resource output. This will create a business model of “education-assisted healthcare, education-assisted wellness, medical-care conversion, medical-education assistance, care-supported medicine, and care-education assistance”. Driven by technology and platform research and development, the company will achieve integrated development of education, medicine, care, health, and tourism, as well as efficient use of human, financial, and material resources. This will build a harmonious and inclusive “education + technology + medical care + health + tourism” prosperous ecosystem. It is expected to further enhance the Company’s brand reputation and industry influence, and support its sustainable development.

Neutech Group, as a pioneer in the “education-healthcare-wellness and mind tour” ecosystem in China, successfully listed on the Main Board of the Hong Kong Stock Exchange on 29 September 2020, becoming the “first stock of IT higher education” (stock code: 9616.HK). With the broad market opportunities brought by the aging population and the positive support of policies for the development of the elderly care industry, the Company leverages its innovative research and development capabilities in “education + technology + medical care” to build a new ecosystem of integrated development of ” education-healthcare-wellness and mind tour”.

In the education technology business sector, the Company will retain the main body of ” Neusoft Education Group” and continue to operate academic education, continuing education, and resource output businesses. Based on IT innovation education, the Company will further develop the “digital media” and “medical care” fields, build an integrated ecosystem of “education-healthcare-wellness”, and consolidate the core competitiveness of education technology in the future. The Company will also establish a characteristic product and service system based on the 4S model, providing first-class platforms, resources, models, and management services to governments, universities, hospitals, and health care institutions, continuously empowering partners’ reform and development.

In the elderly education and elderly care technology business sector, following the concept of “Elderly care starts with prevention, education drives elderly care, and technology empowers elderly care”, the Company has deeply developed elderly education through Neuedu Phoenix Academy and created a unique “LIFECARES” model of integrated elderly education with “leisure, care, medical services, education, and integration”. Using top-notch medical and care services and platform services to empower the elderly to live a happy life, the Company is building a dream university for active seniors. In addition, the Company will strengthen the training of elderly care service personnel by creating a one-stop industry chain of “university training + training + intern + human resource services”. On the other hand, the Company will build a medical and care technology operation service model, create an elderly care solution industrial ecosystem through the output of overall smart elderly care solutions and elderly care technology products and services, and achieve mutually beneficial cooperation with ecological partners.

In the medical and health care service sector, the Company integrates customer management service systems to provide intelligent medical and elderly care information solutions, and create a “medical care and elderly care” integrated development system with treatment-based medical institutions, rehabilitation-based nursing institutions, and care-based elderly care institutions. Its subsidiaries, Ruikang Cardiovascular Hospital, Dalian Ruikang Zhuomei Stomatology Hospital Co., Ltd., and Wecare Family Nursing Home, have been put into operation.

In the wellness tourism sector, targeting energetic seniors, the Company integrates tourism, education, and elderly care into one, with a focus on “leisure learning, slow travel, and peaceful living”. Through the concept of “study-travel-care”, seniors can experience a variety of dimensions of “learning-travel-care” in their travel and learning process, creating a comprehensive elderly education model that provides opportunities for art experiences, promotes physical and mental relaxation, enhances cultural literacy, and expands social interaction.

In addition, the Company expands its industrial management and service sector, with the vision of building a better life and using technology to empower intelligent logistics. It explores diverse, characteristic, and value-added service models to meet the diverse needs of internal and external customers, continuously expanding its brand reputation and social influence.

With its keen market insight and deep accumulation of industry and education resources, Neutech Group Limited actively embraces the development of the silver-haired economy, timely enters new tracks, and improves its position in the industrial ecosystem. Now, the Group’s new layout of “education-healthcare-wellness and mind tour ” has been formed, which not only helps to create a new growth curve but also continuously expands new development margins, moving towards becoming a leader in the development of the “education-healthcare-wellness and mind tour” ecosystem.

CONTACT: Lin Wei, weilin@neuedu.com

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SOURCE Neutech Group Limited

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RoboSense and Coco Robotics Forge Strategic Partnership to Revolutionize Autonomous Last-Mile Delivery

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LAS VEGAS, Jan. 12, 2025 /PRNewswire/ — RoboSense (2498.HK), a global leader in AI-driven robotics technology, and Coco Robotics, an innovator in delivery robots, have announced a strategic partnership to transform last-mile logistics. By combining RoboSense’s advanced sensor technology with Coco Robotics’s delivery solutions, the collaboration aims to enhance safety, efficiency, and sustainability in urban networks.

Coco Robotics bridges the gap between local businesses and customers through advanced navigation and real-time tracking, prioritizing sustainability by reducing carbon emissions and delivery costs. Since its launch in 2020, the company has expanded operations to major U.S. and European cities, forming partnerships with food delivery leaders like Uber Eats and DoorDash to meet the growing demands of modern logistics and support a greener future.

This partnership addresses key challenges in autonomous last-mile delivery by integrating RoboSense’s perception solutions into Coco Robotics’s fleet to enhance navigation and obstacle detection. Together, the companies are accelerating the deployment of delivery robots to optimize efficiency and scale operations.

“We’re thrilled to collaborate with RoboSense to push the boundaries of what’s possible in last-mile delivery,” said Zach Rash, Co-founder and CEO of Coco Robotics. “This partnership strengthens our ability to provide safe, reliable, and sustainable delivery solutions at scale, helping us better serve businesses and communities.”

Mark Qiu, CEO of RoboSense, said, “The successful collaboration with Coco Robotics is one of the key milestones in RoboSense’s global strategy. By combining our visual sensor technology with Coco Robotics’ innovative robotics solutions, we aim to redefine what’s possible in autonomous last-mile delivery. RoboSense will continue to innovate, providing superior incremental components and solutions to our global robotics customers. Partnering with Coco Robotics, we will create safer, smarter robotic delivery services and expand into global markets.”  

About RoboSense

RoboSense (2498.HK), founded in 2014, is an AI-driven robotics technology company that supplies industry-leading incremental components and solutions for the robotics market. The company is committed to “Become the global leader in robotics technology platforms”, and its mission is “Safer world, Smarter life”. For more information about RoboSense, visit https://www.robosense.ai 

About Coco Robotics

Coco Robotics is the world’s largest urban robot delivery platform. Founded in 2020, Coco has completed over 500,000 zero-emission deliveries, serving customers in the US and Europe. Coco’s mission is to create a more sustainable, reliable, and affordable last-mile logistics solution in cities around the world. For more information about Coco, visit cocodelivery.com  

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SOURCE RoboSense Technology Co., Ltd.

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