Company: CWAN
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001628280-25-008169
Chunk: 70

Company: Clearwater Analytics Holdings, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 7
Chunk 70
---
 of third-party consultants to support marketing initiatives.

General and Administrative

Year Ended December 31,2024$ Change% Change2023$ Change% Change2022(In thousands, except percentages)Equity-based compensation$38,170 $(13,480)(26)%$51,650 $25,663 99 %$25,987 All other general and administrative60,600 18,754 45 %41,846 4,066 11 %37,780 Total general and administrative$98,770 $5,274 6 %$93,496 $29,729 47 %$63,767 Percent of revenue22 %25 %21 %

52

Table of Contents

General and administrative expense changed as follows:

Change from December 31, 2023 to December 31, 2024Change from December 31, 2022 to December 31, 2023(in thousands)Increased outside services and contractors$9,701 $464 Increased payroll and related costs5,126 2,408 Increased (decreased) facilities and infrastructure expenses1,258 (48)Increased recruiting expense1,018 789 Increased travel and entertainment569 56 Increased technology costs484 837 Increased depreciation and amortization373 27 (Decreased) increased equity-based compensation(13,480)25,663 Decreased insurance expense(260)(961)Other items485 494 Total change$5,274 $29,729 

The increase in general and administrative expense in 2024 was primarily due to increased outside services and contractors due to higher utilization of professional services supporting accounting, legal and human resources related to secondary transactions, acquisition-related activities and Tax Receivable Agreement settlement, increased payroll and related costs as a result headcount growth and increases in merit-based compensation, increased allocation of facilities cost due to additional office space, and increased recruiting expense to support key hires. These increases were partially offset by decrease in equity-based compensation primarily due to the movement of a key employee to research and development with a change in responsibilities, and decreased insurance costs for our directors and officers.

The increase in general and administrative expense in 2023 was primarily due to increased equity-based compensation expense due to JUMP acquisition-related equity awards and grant of additional awards to employees, increased payroll and related costs as a result of headcount growth. In addition, general and administrative expense increased due to higher utilization of