Clearwater Analytics Reports 24% Revenue Growth to $126.9 Million in Latest Quarter

Clearwater Analytics Holdings, Inc. reported significant financial growth in its latest quarterly results, with revenue reaching $126.9 million for the three months ended March 31, 2025, a 24% increase from $102.7 million in the same period last year. The company achieved a net income of $6.9 million, compared to $2.2 million in the prior year, marking a substantial improvement in profitability. The increase in revenue was attributed to the onboarding of new clients and the expansion of existing client assets on the platform, which saw a 13% rise in average assets billed.

The company’s operational metrics also reflected positive trends, with a gross revenue retention rate of 98% and a net revenue retention rate of 114% as of March 31, 2025. Clearwater's annualized recurring revenue increased by 22.7% year-over-year, reaching $493.9 million, driven by the addition of over 100 new clients in 2024. The company reported a total of 1,400 clients as of December 31, 2024, managing over $8.8 trillion in global invested assets.

Strategically, Clearwater has been active in expanding its capabilities through acquisitions. The company completed the acquisition of Wilshire Technology in April 2024, which added significant risk and performance analytics solutions to its offerings. Additionally, Clearwater announced the acquisition of Enfusion, a leader in SaaS solutions for the investment management industry, for approximately $1.4 billion, and the acquisition of Beacon, valued at $550 million, both aimed at enhancing its product suite and market position. These acquisitions are expected to accelerate Clearwater's vision of providing a comprehensive cloud-native solution for the investment management industry.

In terms of financial health, Clearwater reported total assets of $1.3 billion as of March 31, 2025, up from $1.2 billion at the end of 2024. The company’s cash and cash equivalents increased to $275.2 million, bolstered by strong cash flows from operations, which amounted to $24.5 million for the quarter. Clearwater's operational efficiency is reflected in its operating expenses, which grew at a slower rate than revenue, indicating improved cost management.

Looking ahead, Clearwater Analytics remains optimistic about its growth trajectory, focusing on expanding its client base both domestically and internationally. The company plans to invest in sales and marketing to enhance brand awareness and drive adoption of its platform in new markets. Additionally, Clearwater aims to continue innovating its product offerings to meet the evolving needs of its clients, positioning itself for sustained growth in the competitive investment analytics landscape.