CWAN - Clearwater Analytics: Q1 Earnings Merit A Rating Upgrade

2024-05-08 21:29:02 ET

Summary

• Clearwater beat Q1 revenue guidance and increased their full-year 2024 revenue guidance.
• The company grew gross revenue and net revenue retention to 99% and 110%, respectively.
• Clearwater appears poised for multiple expansion, as their profitability metrics continue to improve.

I covered Clearwater Analytics ( CWAN ) back in March of this year:

• Clearwater Analytics: Strong Business But Questionable Margin Trends

As part of my analysis, I initiated a ‘Hold’ rating for the stock. I highlighted Clearwater’s steady revenue growth, as well as concerns about net revenue retention and pricing power....

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