Company: CWAN
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001628280-25-021833
Chunk: 48

Company: Clearwater Analytics Holdings, Inc.
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 1
Chunk 48
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 increasing revenue which is not related to assets on our platform. Average assets on our platform that were billed to new and existing clients increased 13% for the three months ended March 31, 2025 as compared to the corresponding period in 2024. Average basis point rate billed to clients increased by 5.5% for the three months ended March 31, 2025, compared to the corresponding period in 2024. 

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Cost of Revenue

Three Months EndedMarch 31,(In thousands, except percentages)20252024$ Change% ChangeEquity-based compensation$3,464 $3,146 $318 10 %All other cost of revenue30,460 25,032 5,428 22 %Total cost of revenue$33,924 $28,178 $5,746 20 %Percent of revenue27 %27 %

Cost of revenue changed as follows:

Change From 2024 to 2025 QTD(in thousands)Increased payroll and related costs$3,592 Increased data costs1,008 Increased depreciation and amortization662 Increased equity-based compensation318 Other items166 Total change$5,746 

The increase in cost of revenue for the three months ended March 31, 2025 was primarily due to increased payroll and related costs as a result of headcount growth, increases in merit-based compensation, and changes in our employee base leading to higher compensation, and increased equity-related payroll taxes for vested equity awards. In addition, cost of revenue increased due to higher data costs for acquiring vendor data contracts related to the Wilshire Technology acquisition, increased depreciation and amortization related to the amortization of capitalized IT projects and acquired Wilshire Technology intangible assets, and increased equity-based compensation due to grants of additional awards to employees. 

Operating Expenses

Research and Development

Three Months EndedMarch 31,(In thousands, except percentages)20252024$ Change% ChangeEquity-based compensation$8,698 $8,911 $(213)(2)%All other research and development28,702 28,765 (63)— %Total research and development$37,400 $37,676 $(276)(1)%Percent of revenue29 %37 %

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Research and development expenses changed as follows:

Change From 2024 to 2025 QTD(in thousands)Decreased payroll and related costs(2,187)Decreased equity-based compensation(213)Increased