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EX - 99.1 2 cwan - ex99_1.htm EX - 99.1 0 BOISE , Idaho - November 3 , 2021 - Clearwater Analytics Holdings , Inc. ( NYSE : CWAN ) ( " Clearwater Analytics " or the " Company " ) , an industry - leading SaaS solution for automated investment data aggregation , reconciliation , accounting , and reporting , announced today its financial results for the quarter ended September 30 , 2021 . 0 " We are very pleased that Clearwater Analytics ' consistent , reliable , and durable growth over the last several years has continued with our financial results for the third quarter of 2021 - our first quarter as a publicly - traded company , " said Sandeep Sahai , Chief Executive Officer , Clearwater Analytics . " We radically simplify investment accounting , reporting , and analytics for our clients , who face challenges including low yields , increasing complexity and globalization of invested assets , rising demand for risk management , and increasing regulatory complexity . Our high quality 100 % SaaS business and financial model , combined with ongoing investments in R & D , enables our platform to be a disruptor in a market with legacy technology incumbents . " Third Quarter 2021 Financial Results Summary Revenue : Total revenue for the third quarter of 2021 reached $ 64.5 million , an increase of 20.9 % , from $ 53.4 million in the third quarter of 2020 . 0 0 0 0 0 Clearwater Analytics Announces Third Quarter 2021 Financial Results 0 Q3 2021 Revenue of $ 64.5 million , up 21 % year - over - year Q3 2021 Gross Revenue Retention Rate of 98 % ; Net Revenue Retention Rate of 111 % 0 Gross Profit : Gross profit for the third quarter of 2021 was $ 46.7 million compared with $ 41.0 million in the third quarter of 2020. Gross margin was 72.4 % , versus 76.9 % in the third quarter of 2020. Gross margin decreased primarily due to increased equity - based compensation expense and investment to support the onboarding of new clients . Non - GAAP gross profit for the third quarter of 2021 was $ 48.1 million , and non - GAAP gross margin was 74.5 % . Income from Operations : Income from operations for the third quarter of 2021 was $ 7.3 million compared with $ 16.5 million in the third quarter of 2020. Income from operations in the third quarter of 2021 included $ 7.7 million of equity - based compensation , representing a $ 6.0 million increase from the third quarter of 2020 . Net Income / ( Loss ) : Net loss for the third quarter of 2021 was $ 11.4 million compared with net income of $ 11.5 million in the third quarter of 2020. Net loss in the third quarter of 2021 included a $ 10.3 million loss on debt extinguishment . Non - GAAP net income for the third quarter of 2021 was $ 8.7 million compared with non - GAAP net income of $ 14.0 million in the third quarter of 2020 . Net Income / ( Loss ) Per Share attributable to Clearwater Analytics Holdings , Inc .: Net loss per basic and diluted share was $ 0.05 in the third quarter of 2021 . Third Quarter 2021 Key Metrics Summary Annualized Recurring Revenue : As of September 30 , 2021 , annualized recurring revenue ( “ ARR ” ) reached $ 257.0 million , an increase of 20 % from $ 214.9 million at September 30 , 2020 . Adjusted EBITDA : Adjusted EBITDA for the third quarter of 2021 was $ 17.1 million , compared with $ 19.0 million in the third quarter of 2020. Adjusted EBITDA margin for the third quarter of 2021 was 26.5 % . Cash : Cash and cash equivalents were $ 245.1 million as of September 30 , 2021 . 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 September 30 , 2021 , gross revenue retention rate was 98 % . The Company has reported a gross revenue retention rate of 98 % for eleven consecutive 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 ,