Clearwater Analytics Holdings, Inc. reported significant financial growth in its latest 10-Q filing for the three and nine months ended September 30, 2024. The company achieved revenues of $115.8 million for the third quarter, marking a 22% increase from $94.7 million in the same period of 2023. For the nine months, revenue rose to $325.3 million, up 21% from $269.1 million year-over-year. This growth was attributed to an expanding client base and increased average assets on the platform, which grew by 17.5% and 14.8% for the respective periods.
Gross profit also improved, reaching $84.5 million for the third quarter, compared to $67.7 million in 2023, with a gross profit margin of 73% for both the three and nine months ended September 30, 2024. Operating income turned positive, with $7.3 million for the third quarter, a significant recovery from a loss of $5.9 million in the prior year. Net income for the third quarter was $4.8 million, compared to a net loss of $2.3 million in 2023. For the nine months, net income was $7.3 million, a turnaround from a net loss of $19.6 million in the same period last year.
The company’s total assets increased to $623.5 million as of September 30, 2024, up from $558.7 million at the end of 2023. Cash and cash equivalents rose to $228.7 million, while accounts receivable also increased to $100.4 million. Notably, goodwill surged to $74.2 million, reflecting the acquisition of Wilshire Technology for $40.1 million in April 2024, which contributed to the increase in total stockholders' equity to $453.6 million.
Operating expenses decreased as a percentage of revenue, with total operating expenses at 67% for the third quarter, down from 78% in 2023. The company reported a gross revenue retention rate of 99% and a quarterly net revenue retention rate between 108% and 114%, indicating strong client retention and expansion.
Clearwater Analytics continues to focus on international expansion and enhancing its technological capabilities, with plans to invest in sales and marketing to increase brand awareness in new markets. The company operates on a recurring revenue model, which has proven resilient, with a Net Promoter Score (NPS) of over 60 and a consistent gross revenue retention rate of at least 98% over the past 23 quarters.
About Clearwater Analytics Holdings, Inc.
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