Company: CWAN
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001628280-25-021833
Chunk: 46

Company: Clearwater Analytics Holdings, Inc.
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 1
Chunk 46
---
 performance measures that our management uses to assess our operating performance. We define Adjusted EBITDA as net income plus (i) interest income, net, (ii) depreciation and amortization, (iii) equity-based compensation expense and related payroll taxes, (iv) tax receivable agreement expense, (v) transaction expenses, (vi) provision for (benefit from) income taxes, and (vii) other expense, net. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue.

25

The following tables reconcile net income to Adjusted EBITDA and include amounts expressed as a percentage of revenue for the periods indicated.

Three Months Ended March 31,20252024(in thousands, except percentages)Net income$6,936 5 %$2,236 2 %Adjustments:Interest income, net(1,694)(1 %)(2,060)(2 %)Depreciation and amortization3,146 2 %2,550 2 %Equity-based compensation expense and related payroll taxes27,562 22 %28,481 28 %Tax receivable agreement expense— — %286 0 %Transaction expenses(1)7,280 6 %802 1 %Provision for (benefit from) income tax expense1,550 1 %(98)0 %Other expense, net290 — %5 0 %Adjusted EBITDA45,070 36 %32,202 31 %Revenue$126,864 100 %$102,719 100 %

(1)        Transaction expenses primarily consist of professional fees and administrative costs for closed and pending acquisitions.

Results of Operations

The following tables set forth our results of operations for the three months ended March 31, 2025 and 2024 (in thousands):

Three Months EndedMarch 31,20252024(in thousands)Revenue$126,864 $102,719 Cost of revenue(1)33,924 28,178 Gross profit92,940 74,541 Operating expenses:Research and development(1)37,400 37,676 Sales and marketing(1)19,631 16,311 General and administrative(1)28,827 20,720 Total operating expenses85,858 74,707 Income (loss) from operations7,082 (166)Interest income