Company: CWAN
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001628280-25-021833
Chunk: 85

Company: Clearwater Analytics Holdings, Inc.
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 8
Chunk 85
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 and related costs(2,187)Decreased equity-based compensation(213)Increased technology cost1,477 Decreased tax credits557 Other items90 Total change$(276)

The decrease in research and development expense for the three months ended March 31, 2025 was primarily due to decreased equity-related payroll tax, as there were RSU releases from a JUMP executive during the three months ended March 31, 2024, decreased equity-based compensation, offset by increased technology costs from higher utilization of third-party cloud computing services and other third-party IT services, and decreased tax credits from elimination of payroll tax credit earned in 2024.

Sales and Marketing

Three Months EndedMarch 31,(In thousands, except percentages)20252024$ Change% ChangeEquity-based compensation$4,009 $3,821 $188 5 %All other sales and marketing15,622 12,490 3,132 25 %Total sales and marketing$19,631 $16,311 $3,320 20 %Percent of revenue15 %16 %

Sales and marketing expense changed as follows:

Change From 2024 to 2025 QTD(in thousands)Increased payroll and related costs2,853 Increased facilities cost297 Increased equity-based compensation188 Other items(18)Total change$3,320 

The increase in sales and marketing expense for the three months ended March 31, 2025 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, increased allocation of facilities cost due to additional office space, and increased equity-based compensation due to grants of additional awards to employees.

29

General and Administrative

Three Months EndedMarch 31,(In thousands, except percentages)20252024$ Change% ChangeEquity-based compensation$7,541 $8,347 $(806)(10)%All other general and administrative21,286 12,373 8,913 72 %Total general and administrative$28,827 $20,720 $8,107 39 %Percent of revenue23 %20 %

General and administrative expenses changed as follows:

Change From 2024 to 2025 QTD(in thousands)Increased outside services and contractors$6,458 Increased payroll and related costs$1,514 Increased technology cost$247 Increased recruiting expense$240 Decreased equity-based compensation$(806)