Company: CWAN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001866368-25-000018
Chunk: 129

Company: Clearwater Analytics Holdings, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 2
Chunk 129
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. In order to arrive at total ACV, we include contracted-not-billed revenue, as it is contracted revenue that has not been recognized but that we expect to produce recognized revenue in the future. Client attrition occurs when a client provides a contract termination notice. The amount of client attrition is calculated as the reduction in annualized revenue of the client at the time of the notice and is recorded in the month the final billing occurs. In the case of client attrition where contracted-not-billed revenue is still present for a client, both annualized recurring revenue and contracted-not-billed revenue associated with such client are deducted from ACV.

As of June 30, 2025, the gross revenue retention rate was 98% compared to 99% as of June 30, 2024. The Company has reported a gross revenue retention rate of at least 98% gross retention in 25 of the last 26 quarters. We believe the consistent and high gross revenue retention rate is a testament to the value proposition that our leading solution offers. 

Net Revenue Retention Rate

Net revenue retention rate is the percentage of recurring revenue retained from clients on the platform for 12 months and includes changes from the addition, removal or value of assets on our platform, contractual changes that have an impact to annualized recurring revenues and lost revenue from client attrition. We calculate net revenue retention rate as of a period end by starting with the annualized recurring revenue from clients as of the 12 months prior to such period end. We then calculate the annualized recurring revenue from these clients as of the current period end. We then divide the total current period end annualized recurring revenue by the 12-month prior period end annualized recurring revenue to arrive at the net revenue retention rate.

As of June 30, 2025, the net revenue retention rate was 110%, consistent with the retention rate as of June 30, 2024. Our relationships with our clients expand as these clients add more assets to our platform, with our quarterly net revenue retention rates between 110% and 114% in 2025. The current quarter net retention rate is lower than Q1 2025 primarily due to the inclusion of the net retention of the acquired businesses within our consolidated metric which at present are lower 

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than historical Clearwater retention. Absent the inclusion of the acquired businesses, the net retention rate remained consistent with the rates reported in Q1 2025.

Non-GAAP Financial Measures

We also consider certain non-G