Company: CWAN
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001628280-25-008169
Chunk: 71

Company: Clearwater Analytics Holdings, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 7
Chunk 71
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 IT services, increased recruiting costs to support key hires, increased transaction expense related to the Secondary Offerings, higher utilization of professional services supporting accounting, legal and human resources, and higher travel and entertainment expense as employees travelled between our office locations more. These increases were partially offset by decreased insurance costs for our directors and officers, reduction in our accruals for sales tax exposure as we finalize voluntary disclosure agreements with jurisdictions, and decreased allocation of facilities costs. 

Non-Operating Expenses

Interest Income, Net

Year Ended December 31,2024$ Change% Change2023$ Change% Change2022(In thousands, except percentages)Interest income, net$(8,621)$(2,220)35 %$(6,401)$(5,264)463 %$(1,137)Tax receivable agreement expense53,181 $38,785 269 %14,396 2,757 24 %11,639 Other income, net$(2,263)$(389)21 %(1,874)(1,824)3648 %(50)

Interest income, net increased for the year ended December 31, 2024 and 2023 due to increased interest income on our cash, cash equivalents and investments from higher interest rates, and higher average investment balances. 

The TRA expense relates to amounts incurred under our Tax Receivable Agreement or in connection with the TRA Amendment. TRA expense increased for the year ended December 31, 2024 due to the TRA Settlement Payments (as defined below). As a result of the TRA Amendment and the TRA Settlement Payments made thereunder, TRA expense is not expected to be recurring in the future as, once the remaining TRA Settlement Payments are made in full, the Company 

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will no longer have any payment obligations under the TRA . Refer to Note 17 “Tax Receivable Agreement Liability” to the consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K.

Other income, net relates to foreign exchange gains and losses driven by fluctuations in exchange rates, and gains and losses related to our investments.

Provision for (benefit from) Income Taxes

Year Ended December 31,202420232022(In thousands, except percentages)Provision for (benefit from) income taxes$(457,648)$217 $1,360 Percent of revenue(101)%0 %0 %Change over prior year$(457