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- **Revenue Growth**: Q3 2025 revenue up 77% YoY to $205.1M, driven by acquisitions and cross-selling.
- **Margin Expansion**: EBITDA margin 34.5%, GenAI reducing manual processes by 90%.
- **Strategic Focus**: $23B TAM in alternatives, risk, and global markets.
- **2026 Outlook**: 12%+ Enfusion growth, 70% cross-sell booking growth.

**【CEO Summary Section】**
- Q3 2025 revenue reached $205.1 million, up 77% year-over-year, driven by the integration of Enfusion, Beacon, and Bistro acquisitions.
- Gross margin improved to 78.5%, exceeding 2027 targets, with GenAI adoption reducing manual processes by 90%.
- Cross-selling of risk and alternative asset solutions (e.g., LPx, MLx) grew 70% year-over-year, with asset management becoming the largest booking segment.
- TAM expanded to $23 billion, with focus on alternatives, risk, and global markets.

**【CFO Financial Commentary】**
- EBITDA of $70.7 million (34.5% margin) exceeded guidance, enabling debt reduction and share buybacks.
- Organic ARR growth of $22 million (Q3) reflects core Clearwater resilience.
- 2025 full-year revenue guidance: $730-731 million (+62% YoY), with EBITDA of $247 million.
- Commercial model alignment for Enfusion clients to accelerate 2026 growth.

**【Q&A Highlights】**
- Cross-selling of risk and alternative solutions (e.g., Beacon, Bistro) driving 70% booking growth.
- GenAI adoption reduces reconciliation time by 90%, supporting 82% gross margin for core clients.
- 2026 focus on asset management and risk solutions for 12%+ Enfusion growth.
- 98% gross retention and 108% net retention reflect client loyalty and product expansion.

Clearwater Analytics Holdings, Inc. (CWAN) Q3 2025 Earnings Call Transcript

- **Record Growth**: Q2 revenue of $181.9 million (+70% YoY) and ARR of $783.5 million (+83.4% YoY) reflect strong organic and acquisition-driven expansion.
- **Margin Triumph**: 77.4% gross margin exceeded expectations, with core business exceeding 80%, despite integrating lower-margin Enfusion.
- **Strategic Wins**: Signed VKB, Germany's largest insurer, and partnered with Bloomberg for asset managers, showcasing front-to-back platform capabilities.
- **Synergy Achievement**: Delivered $20 million in synergies within the first quarter, with focus shifting to growth.
- **Future Momentum**: Q3 guidance of $203-$204 million revenue and $65 million EBITDA signals confidence in 20%+ core growth and margin expansion.

**【CEO Summary Section】**
- **Revenue Growth**: Total revenue reached $181.9 million, up 70% YoY, with core Clearwater revenue growing 22% organically.
- **ARR Expansion**: Annualized recurring revenue (ARR) rose to $783.5 million, a 83.4% YoY increase, driven by organic growth and acquisitions.
- **Profitability**: Adjusted EBITDA of $58.3 million (32.1% of revenue) reflected a 74.3% YoY improvement, exceeding expectations despite integrating lower-margin businesses.
- **Gross Margin Achievement**: Delivered 77.4% gross margin, surpassing the 76.5% blended target, with core business exceeding 80%.
- **Strategic Integration**: Acquired Enfusion, Beacon, and Bistro, achieving $20 million in synergies within the first quarter. Cross-selling opportunities and a front-to-back platform vision are key growth drivers.
- **Client Engagement**: Engaged over 450 clients globally, with near-unanimous enthusiasm for the integrated platform. New wins include VKB, Germany's largest public insurer, and partnerships with Bloomberg for asset managers.
- **Future Phases**: Transitioning to Phase 2, focusing on cross-selling and product launches, with Phase 3 targeting a fully integrated platform.

**【CFO Financial Commentary】**
- **Revenue Beat**: Exceeded Q2 guidance by $7.9 million, with core business and acquisitions outperforming expectations.
- **EBITDA Guidance**: Q3 EBITDA expected at $65 million (32% margin), with full-year guidance of $232-$237 million.
- **Debt Management**: Repaid $50 million of revolver debt, targeting leverage below 4x by year-end.
- **Expense Control**: Achieved $20 million in expense synergies, enabling focus on growth.
- **Long-Term Outlook**: Confident in 20%+ core growth and margin expansion through operational efficiency and AI adoption.

**【Q&A Highlights】**
- **Organic Growth Acceleration**: Q2 organic ARR of $513 million (20% YoY) expected to accelerate in Q3/Q4, with sequential revenue growth reaccelerating.
- **Enfusion Performance**: Delivered highest bookings in history, with 49 new clients, targeting 20% growth over 2 years.
- **Cross-Sell Potential**: Risk capabilities and front-to-back solutions (e.g., VKB deal) drive immediate cross-sell opportunities, with generative AI set to enhance offerings.
- **NRR Trends**: Core NRR at 114%, consolidated NRR at 110%, with plans to improve Enfusion NRR to 115% over time.
- **Tokenization Impact**: Positioning as a leader in alternative asset management with single security master, enabling real-time risk and cash flow insights.
- **Generative AI Investment**: Early efficiency gains expected to transition to revenue growth in 2026, with competitive advantage in data integration.


Clearwater Analytics Holdings, Inc. (CWAN) Q2 2025 Earnings Call Transcript

- **Record Q1 Growth**: 23.5% YoY revenue ($126.9M), 22.7% ARR growth ($493.9M), and 40% EBITDA expansion ($45.1M). Gross margin at 78.9%, near 80% target.
- **Acquisition Strategy**: Integrating Enfusion, Beacon, and Bistro into a unified front-to-back platform, with Phase 1 focusing on standalone growth and Phase 3 on full integration by 2027.
- **Profitability Leap**: Gross margin improved 370bps since FY2022, exceeding 50bps/year target. EBITDA margin at 35.5%, up 420bps YoY.
- **Enfusion Outlook**: 13% Q1 growth to accelerate to 20% by 2027, driven by Clearwater cross-selling and R&D synergies.
- **2025 Guidance**: $720-728M revenue (59-61% growth) and $230-235M EBITDA (32% margin), with 19% revenue in equity comp.


**【CEO Summary Section】**
- Q1 2025 revenue reached $126.9 million, up 23.5% YoY, with ARR of $493.9 million (22.7% YoY growth). Adjusted EBITDA was $45.1 million (35.5% of revenue), up 40% YoY. Gross margin improved to 78.9%, nearing the long-term target of 80%.
- Strategic acquisitions of Enfusion, Beacon, and Bistro aim to create the industry's first fully integrated front-to-back office platform. Phase 1 focuses on standalone growth, Phase 2 on cross-selling, and Phase 3 on full platform integration.
- NRR reached 115% in 2024, ahead of the 2026 target. Key wins include a tech leader adopting PRISM and a German insurance company replacing a competitor's solution.
- Gross margin improved 370bps over FY2022, exceeding the 50bps/year target. Helios reconciliation tool reduced client onboarding time to 5.5 months.

**【CFO Financial Commentary】**
- Q1 GAAP net income was $6.9 million, with free cash flow of $23 million (168% YoY growth). R&D spend was $37.4 million (21.6% of revenue), reflecting scale leverage.
- Full-year 2025 guidance: $720-728 million revenue (59-61% YoY growth) and $230-235 million EBITDA (32% margin). Enfusion contributed $54.5 million in Q1 2025, growing 13% YoY.
- Equity-based compensation is expected to be 19% of revenue in 2025, down from 21.7% in Q1. Depreciation/amortization is $100-120 million.

**【Q&A Key Highlights】**
- **Enfusion Growth**: Expected to accelerate from 13% in Q1 to 20% by 2027, with Phase 1 focusing on Clearwater cross-selling and Phase 2 on R&D integration.
- **Bistro Integration**: Will be a horizontal capability for alternative asset visualization, with Blackstone's use case as a reference.
- **Macro Impact**: Q1 churn and booking stable despite market volatility; revenue protected by commercial model.
- **Synergies**: $20 million in cost savings and 400bps gross margin improvement in Year 1, with full platform integration targeting 2027.
- **Organic Growth**: Clearwater and Beacon expected to maintain 20%+ organic growth, with Enfusion reaccelerating in 2026.


Clearwater Analytics (CWAN)-30 Apr 25-2025 Q1 Earnings call transcript

- **Record Growth**: Q4 2024 revenue up 28% YoY to $126.5M, ARR hits $474.9M (25% YoY), NRR 116%. 
- **Margin Power**: Gross margin 78.8% (190bps YoY expansion), targeting >80% long-term. 
- **Enfusion Synergy**: $5.9B TAM expansion via front-to-back platform, 2025 cross-sell/upsell pipeline. 
- **AI Efficiency**: 50bps annual margin target, AI reducing reconciliation costs by 50%. 
- **Regulatory Tailwind**: NAIC rule changes drove $3M Q4 revenue, ongoing compliance demand. 
- **2025 Outlook**: 19-20% revenue growth, 34% EBITDA margin, $535M+ ARR. 


**【CEO Opening Remarks】**
- Q4 2024 revenue: $126.5M (28% YoY growth), ARR: $474.9M (25% YoY growth), NRR: 116%, Adjusted EBITDA: $41.7M (33% of revenue). 
- Gross margin expanded 190bps YoY to 78.8%, targeting +50bps in 2025 and >80% long-term. 
- Enfusion acquisition to create front-to-back investment platform, with synergies in client expansion, margin improvement, and international growth. 
- Key wins include insurance firms, asset managers, and public sector clients, driven by platform scalability and AI-driven efficiency. 

**【CFO Financial Highlights】**
- Full year 2024 revenue: $451.8M (22.7% YoY), EBITDA: $145.7M (37.6% YoY growth). 
- Q4 2024 gross margin: 78.8%, EBITDA margin: 33% (vs. 20.6% in Q4 2023). 
- 2025 guidance: Revenue $535.5M-$542M (19-20% YoY), EBITDA $182M-$185M (34% margin). 
- Free cash flow negative in Q4 due to one-time tax payment, but AR days improved to 77 days. 

**【Q&A Key Themes】**
- **Enfusion Integration**: Targeting 115+ NRR through cross-selling, leveraging single-instance platform, and accelerating 1-to-4bps strategy. 
- **Margin Expansion**: AI-driven efficiency to sustain +50bps annual margin growth, targeting >80% gross margin. 
- **Regulatory Tailwinds**: NAIC rule changes drove $3M incremental Q4 revenue, with ongoing compliance needs for insurers. 
- **Client Expansion**: 100 clients with >$1M ARR, +14% YoY, driven by upsell (7%), cross-sell (3%), and AUM growth. 
- **FX Impact**: 18% of revenue international, but natural hedge limits EBITDA impact; India workforce provides cost tailwind. 


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