Company: CWAN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001866368-25-000018
Chunk: 62

Company: Clearwater Analytics Holdings, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 62
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273 $1,346 41 %$8,083 $6,419 $1,664 26 %All other cost of revenue58,804 26,617 32,187 121 %89,264 51,650 37,614 73 %Total cost of revenue$63,423 $29,890 $33,533 112 %$97,347 $58,069 $39,278 68 %Percent of revenue35 %28 %32 %28 %

Cost of revenue changed as follows:

Change From 2024 to 2025 QTDChange From 2024 to 2025 YTD(in thousands)Increased depreciation and amortization$14,985 $15,647 Increased payroll and related costs11,929 15,521 Increased data costs3,164 4,171 Increased technology costs1,951 2,037 Increased equity-based compensation1,346 1,664 Other items158 238 Total change$33,533 $39,278 

The increase in cost of revenue for the three and six months ended June 30, 2025 was primarily due to increased  depreciation and amortization of acquired intangible assets from the acquisitions completed in April 2025, increased payroll and related costs as a result of headcount growth from acquisitions of $9.2 million in the three and six months ended June 30, 2025, increases in merit-based compensation, 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, increased technology costs from higher utilization of third-party cloud computing services and other third-party IT services, and increased equity-based compensation due to grants of additional awards to employees. 

Operating Expenses

Research and Development

Three Months EndedJune 30,Six Months EndedJune 30,(In thousands, except percentages)20252024$ Change% Change20252024$ Change% ChangeEquity-based compensation$8,792 $9,182 $(390)(4%)$17,490 $18,093 $(603)(3%)All other research and development40,963 26,178 14,785 56 %69,664 54,943 14,721 27 %Total research and development$49,755 $35,