CWAN Earnings Prediction
The chart below shows how CWAN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CWAN sees a +2.96% change in stock price 10 days leading up to the earnings, and a +5.02% change 10 days following the report. On the earnings day itself, the stock moves by -1.16%. This data can give you a slight idea of what to expect for the next quarter's release.
CWAN Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
115.83M
22.36%
8.46%
Gross Margin
72.93%
2.06%
1.28%
Operating Margin
6.55%
205.31%
48.19%
Net Margin
4.12%
266.13%
1484.62%
EPS
0.02
300.00%
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No Data Available
CWAN Earnings Analysis
Clearwater Analytics Holdings, Inc. Corporation (CWAN.N) Earnings Conference Call
Positive
Q3 Revenue Surge: 1. Strong Revenue Growth: Clearwater Analytics reported Q3 2024 revenue of $115.8 million, reflecting a 22.4% year-on-year increase.
Annual Recurring Revenue Surge: 2. Significant ARR Increase: The company's annualized recurring revenue (ARR) grew by 26.1% year-on-year, reaching $456.9 million.
Client Loyalty Success: 3. High Gross Revenue Retention: Clearwater achieved a remarkable gross revenue retention rate of 99% for the last three quarters, indicating strong client loyalty and satisfaction.
Record Free Cash Flow Growth: 4. Record Free Cash Flow: The company generated record high free cash flow of $48.1 million in Q3, representing a 55.6% increase from the previous year.
Net Revenue Retention Increase: 5. Increased Net Revenue Retention: Clearwater's net revenue retention rate rose to 114%, up from 110% in the previous quarter, driven by onboarding additional assets and cross-selling new products.
Negative
Future TRA Liabilities: 1. High TRA Liabilities: The company recorded a potential future TRA liability of $614 million as of September 30, 2024, which includes $417 million related to historical exchanges and $197 million for future exchanges, indicating significant financial obligations ahead.
Rising TRA Expenses: 2. Increasing TRA Expenses: Clearwater Analytics has seen a rise in TRA expenses, with $11.5 million recorded in the first nine months of 2024, and an expected total of approximately $17 million for the full year, reflecting growing financial burdens.
Cash Flow Challenges: 3. Cash Flow Concerns: Despite a strong cash position of $336.7 million, the company is facing ongoing TRA obligations that could impact future cash flows, as they will need to settle $72.5 million if the TRA termination is approved.
EBITDA Margin Concerns: 4. Potential Decrease in EBITDA Margin: The guidance for Q4 2024 suggests a lower EBITDA margin compared to Q3, indicating potential operational challenges or increased expenses that could affect profitability.
Interest Rate Impact on Growth: 5. Dependence on Interest Rate Environment: The company acknowledged that future interest rate cuts could provide only a modest tailwind to ARR growth, suggesting that reliance on external economic factors may limit growth potential.
CWAN FAQs
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CWAN Earning Call Sentiment
Clearwater Analytics Holdings, Inc. (CWAN) Q3 2024 Earnings Conference Call Transcript
1.0x
00:00
00:00
CWAN.N
1.93%Positive
The earnings call summary shows strong financial performance with a 22.4% revenue increase and a record high free cash flow. The company raised its guidance and reported a positive GAAP net income. Despite regulatory challenges and competitive pressures, the broad-based booking strength and positive outlook on AI integration and partnerships indicate optimism. The Q&A session revealed no significant concerns, maintaining a positive sentiment. Given the company's market cap, a positive stock price movement of 2% to 8% is expected over the next two weeks.
