Enfusion Reports $201.6 Million Revenue for Fiscal Year 2024, Plans Merger with Clearwater Analytics

Enfusion, Inc. reported a total revenue of approximately $201.6 million for the fiscal year ending December 31, 2024, marking a 15.5% increase from $174.5 million in 2023. The growth was primarily driven by a 16.1% rise in platform subscription revenues, which reached $187.5 million, attributed to upselling and increased user counts within existing contracts, as well as new client acquisitions. However, the company experienced a net income of $3.9 million, a decrease from $9.3 million in the previous year, largely due to increased operating expenses associated with the pending merger with Clearwater Analytics Holdings, Inc. and other operational trends.

The company has seen significant changes in its operational metrics, including a net dollar retention rate of 106.4% for 2024, consistent with the previous year, indicating stable client retention and expansion. Enfusion's client base grew to 916 clients, with 62.4% of revenues generated from the Americas, 16% from Europe, the Middle East, and Africa (EMEA), and 21.6% from the Asia Pacific (APAC) region. The company also reported a 17.5% increase in total client count from the previous year, reflecting its ongoing geographic expansion and market penetration efforts.

Strategically, Enfusion is in the process of merging with Clearwater, a transaction valued at approximately $1.5 billion, which is expected to close in the second quarter of 2025, pending regulatory approvals and shareholder consent. This merger is anticipated to enhance Enfusion's market position and operational capabilities. Additionally, the company has made significant investments in technology and development, with operating expenses rising by 24.4% to $130.6 million, driven by increased personnel costs and stock-based compensation.

Enfusion's operational developments include a focus on innovation and expanding its service offerings, which are critical for maintaining competitive advantage in the rapidly evolving investment management technology sector. The company has also entered into a new credit agreement, providing up to $100 million in revolving loan capacity to support its growth initiatives. As of December 31, 2024, Enfusion had cash and cash equivalents of $54.5 million, alongside $99.9 million in available borrowing capacity, indicating a solid liquidity position to fund ongoing operations and strategic investments.

Looking ahead, Enfusion aims to continue broadening its client base and expanding its geographic reach, particularly in underdeveloped markets. The company plans to leverage its cloud-native, multi-tenant software solution to capture additional market share and enhance client relationships. However, management acknowledges potential challenges, including the need to adapt to evolving market conditions and client demands, which could impact future revenue growth and operational performance.