Company: CWAN
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001628280-25-008169
Chunk: 69

Company: Clearwater Analytics Holdings, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 7
Chunk 69
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-party services as well as increased equity-based compensation due to additional headcount, increased allocation of facilities cost due to additional office space, and increased travel and entertainment costs as employees travelled more between our office locations to support new offering initiatives.

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Table of Contents

Sales and Marketing

Year Ended December 31,2024$ Change% Change2023$ Change% Change2022(In thousands, except percentages)Equity-based compensation$15,304 $(539)(3)%$15,843 $3,132 25 %$12,711 All other sales and marketing51,950 7,428 17 %44,522 4,595 12 %39,927 Total sales and marketing$67,254 $6,889 11 %$60,365 $7,727 15 %$52,638 Percent of revenue15 %16 %17 %

Sales and marketing expense changed as follows:

Change from December 31, 2023 to December 31, 2024Change from December 31, 2022 to December 31, 2023(in thousands)Increased payroll and related costs$5,219 $2,330 Increased outside services and contractors906 679 Increased (decreased) marketing793 (56)Increased travel and entertainment465 941 Increased depreciation and amortization49 303 (Decreased) increased equity-based compensation(539)3,132 Other items(4)398 Total change$6,889 $7,727 

The increase in sales and marketing expense in 2024 was primarily due to increased payroll and related costs as a result of headcount growth to expand sales coverage and increases in merit-based compensation. In addition, the increase in sales and marketing expense was driven by higher utilization of third-party consultants to support marketing initiatives, increased marketing costs due to additional marketing events and IT subscriptions supporting market development programs. These increases were partially offset by a decrease in equity-based compensation due to fewer performance-based awards being granted.

The increase in sales and marketing expense in 2023 was primarily due to increased equity-based compensation due to grants of additional awards to employees, and increased payroll and related costs as a result of the hiring of additional employees to expand sales coverage. In addition, the increase in sales and marketing expense was driven by increased travel and entertainment expense as employees travelled more between our office locations and clients to support sales and marketing initiatives, as well as higher utilization