After-hours trading on Wednesday saw a notable increase in Clearwater Analytics Holdings, Inc. (NYSE: CWAN) shares, climbing 16.31% to $31.45. The surge followed the release of a strong earnings report.
Outstanding Financial Results
Clearwater Analytics marked a major turning point in its financial history with its record-breaking $126.5 million in revenue during the Q4 ended December 31, 2024. Moreover, a net revenue retention rate of 116% supported CWAN further solidifying its leading position in the industry.
The company’s non-GAAP gross margin grew by 170 basis points throughout the year, while its adjusted EBITDA improved by 350 basis points. These results demonstrate a quicker implementation of CWAN’s business plan and closely match the strategic objectives announced at Investor Day.
Market Performance and Competitive Positioning
CWAN maintains a strong market presence with a solid ST score of 51 and a market capitalization exceeding $6 billion. This positions the company as a formidable player within the Software-Application industry. Investors seeking to explore peer companies with higher scores and market capitalization can utilize the ST screener link for comparative insights and investment opportunities.
Acquiring Enfusion to Expand Market Presence
Clearwater Analytics recently revealed its intention to purchase Enfusion, Inc. for $1.5 billion as part of a strategic effort to bolster its investment management platform. CWAN will be able to offer a comprehensive front-to-back platform that covers the full investment lifecycle thanks to Enfusion, a top supplier of SaaS solutions for the hedge fund and investment industries. It is anticipated that this acquisition would greatly increase Clearwater’s client services and product portfolio.
Growth of Clientele and Industry Acceptance
By onboarding a number of well-known clients throughout the quarter, such as OpenAI, Nucor Corporation, and the United Nations Federal Credit Union, Clearwater Analytics increased its market footprint. In order to improve its performance attribution and risk analysis capabilities, Industrial Alliance Portfolio Management (IAPM) also chose CWAN’s Risk & Performance Solution.