Company: CWAN
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001866368-25-000031
Chunk: 142

Company: Clearwater Analytics Holdings, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 2
Chunk 142
---
-party cloud computing services and other third-party IT services, increased data costs for acquiring vendor data contracts, and increased outside services and contractors costs related to acquisitions. These increases were partially offset by decreased equity-based compensation due to the movement of certain key personnel from the research and development team to the sales and marketing team with a change in responsibilities. 

Sales and Marketing

Three Months EndedSeptember 30,Nine Months EndedSeptember 30,(In thousands, except percentages)20252024$ Change% Change20252024$ Change% ChangeEquity-based compensation$12,680 $3,905 $8,775 225 %$26,870 $10,418 $16,452 158 %All other sales and marketing31,791 13,984 17,807 127 %76,453 38,951 37,502 96 %Total sales and marketing$44,471 $17,889 $26,582 149 %$103,323 $49,369 $53,954 109 %Percent of revenue22 %15 %20 %15 %

Sales and marketing expense changed as follows:

Change From 2024 to 2025 QTDChange From 2024 to 2025 YTD(in thousands)Increased payroll and related costs$8,944 $20,513 Increased equity-based compensation8,775 16,452 Increased depreciation and amortization5,880 10,658 Increased marketing expense901 1,760 Increased facility costs547 1,346 Increased technology costs292 777 Increased outside services and contractors291 586 Other items952 1,862 Total change$26,582 $53,954 

38

The increase in sales and marketing expense for the three and nine months ended September 30, 2025 was primarily due to increased payroll and related costs as a result of headcount growth from acquisitions and increases in merit-based compensation, increased equity-based compensation due to grants of additional awards to employees, and movement of certain key personnel from the research and development team to the sales and marketing team with a change in responsibilities, and increased depreciation and amortization of acquired intangible assets. In addition, sales and marketing expenses increased due to increased marketing expense related to company-hosted marketing events, increased allocation of facilities cost due to additional office spaces, and increased technology costs from higher utilization of third-party cloud computing services and other third-party IT services