Clearwater Analytics Announces Second Quarter 2022 Financial Results

Record Quarterly Revenue of $73.4 Million
Second Quarter Revenue Up 21% Year-Over-Year
14 Consecutive Quarters of 98% Gross Revenue Retention
Operating Cash Flow Generation of $18.3 Million in the Quarter

BOISE, Idaho, Aug. 3, 2022 /PRNewswire/ -- Clearwater Analytics Holdings, Inc. (NYSE: CWAN) ("Clearwater Analytics" or the "Company"), an industry-leading SaaS solution for automated investment data aggregation, reconciliation, accounting, and reporting, announced today its financial results for the quarter ended June 30, 2022.

"Clearwater Analytics posted another strong quarter and continues to grow by adding marquee new clients across the globe. For both new and existing clients, efficient operations and a deep understanding of investment risk and compliance are critical business functions that make Clearwater Analytics a mission-critical partner," said Sandeep Sahai, Chief Executive Officer. "We continue to win clients and displace our competitors, reflecting the strength and value that our next-generation technology offers. Now more than ever, our clients rely on Clearwater Analytics to help them navigate through the ebbs and flows of market uncertainty with daily intelligence that informs their investments in new securities and strategies."

Second Quarter 2022 Financial Results Summary 

• Revenue: Total revenue for the second quarter of 2022 reached $73.4 million, an increase of 20.6%, from $60.9 million in the second quarter of 2021.
  
  
• Gross Profit: Gross profit for the second quarter of 2022 was $52.5 million, compared with $45.3 million in the second quarter of 2021. Non-GAAP gross profit for the second quarter of 2022 was $55.6 million, which equates to a 75.7% non-GAAP gross margin.
  
  
• Net Income/(Loss): Net loss for the second quarter of 2022 was $2.2 million compared with net loss of $0.2 million in the second quarter of 2021. In the second quarter of 2022, the Company recorded a $3.1 million expense related to its Tax Receivable Agreement. Non-GAAP net income for the second quarter of 2022 increased by 119% to $13.3 million from $6.1 million in the second quarter of 2021.
  
  
• Adjusted EBITDA: Adjusted EBITDA for the second quarter of 2022 was $19.1 million, compared with $17.4 million in the second quarter of 2021. Adjusted EBITDA margin for the second quarter of 2022 was 26.0% reflecting the Company's ability to balance incremental investments in sales and marketing and research and development with earnings in the quarter.
  
  
• Cash Flows: Operating cash flows for the second quarter were $18.3 million and free cash flows were $16.5 million reflecting an 87% conversion of Adjusted EBITDA to free cash flow.
  
  
• Net Income/(Loss) Per Share and Non-GAAP Net Income Per Share attributable to Clearwater Analytics Holdings, Inc.: Net loss per basic and diluted share was $0.01 and non-GAAP net income per diluted share was $0.05 in the second quarter of 2022.
  
  
• Cash: Cash, cash equivalents and short-term investments were $281.6 million as of June 30, 2022.

Second Quarter 2022 Key Metrics Summary 

• Annualized Recurring Revenue: As of June 30, 2022, annualized recurring revenue ("ARR") reached $290.4 million, an increase of 18.5% from $245.0 million as of June 30, 2021.
  
  ARR is calculated at the end of a period by dividing the recurring revenue in the last month of such period by the number of days in the month and multiplying by 365.

• Gross Revenue Retention Rate: As of June 30, 2022, the gross revenue retention rate was 98%. The Company has reported a gross revenue retention rate of 98% for fourteen consecutive quarters.
  
  Gross revenue retention rate represents annual contract value ("ACV") at the beginning of the 12-month period ended on the reporting date less client attrition over the prior 12-month period, divided by ACV at the beginning of the 12-month period, expressed as a percentage. ACV is comprised of annualized recurring revenue plus contracted-not-billed revenue, which represents the estimated annual contracted revenue for new and existing client opportunities prior to revenue recognition.

• Net Revenue Retention Rate: As of June 30, 2022, the net revenue retention rate was 104% which is a decline from 107% as of March 31, 2022. With the unusual market conditions of the equity markets and fixed income securities having both fallen in concert, the Company saw a 3% decline in the net revenue retention rate in the second quarter.
  
  Net revenue retention rate is the percentage of recurring revenue 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.

Recent Business Highlights

• As another example of high growth businesses needing timely and accurate investment accounting, Sutton RE, a proven provider of specialized reinsurance solutions across the globe, selected Clearwater Analytics' best-in-class technology to manage their operations across more than $29 billion assets under management spanning a diverse and complex portfolio of investments.
  
  
• Clearwater Analytics added its first public pension fund client, the Public Employee Retirement System of Idaho ("PERSI") which manages more than $23 billion in assets, to its SaaS platform to provide data aggregation and reporting for the 850 employer organizations and more than 170,000 individuals served in the State of Idaho by PERSI.
  
  
• One of Asia's leading non-life insurance brands, MSIG, with a presence in 50 countries and regions globally, selected Clearwater Analytics to support its transformation strategy. MSIG's Asia headquarters along with its business units in Hong Kong, Malaysia and Thailand will standardize their operating model, and adopt Clearwater Analytics for a consolidated view of data, analytics, accounting, regulatory, and operational reporting.
  
  
• Clearwater Analytics hosted its European Clearwater Connect conference in London. More than 100 current and prospective Clearwater Analytics users seized the opportunity to significantly enhance their knowledge of the world's most comprehensive investment accounting solution.
  
  
• Clearwater Analytics continues to receive industry recognition for its innovative investment accounting solution. In the second quarter of 2022, it was honored with the IASA Solution Provider of the Year award and the FTF News Award for best client reporting solution for the second consecutive year.

Third Quarter and Full-Year 2022 Guidance  

		Third Quarter 2022		Full Year 2022
Revenue		$74.5 million to $75 million		$298 million to $300 million
Year-over-Year Growth %		~16%		~19%
Adjusted EBITDA		$19 million to $19.5 million		$79 million to $81 million

Certain components of the guidance given above are provided on a non-GAAP basis only without providing a reconciliation to guidance provided on a GAAP basis. Information is presented in this manner, consistent with Securities and Exchange Commission (the "SEC") rules, because the preparation of such a reconciliation could not be accomplished without "unreasonable efforts." The Company does not have access to certain information that would be necessary to provide such a reconciliation, including non-recurring items that are not indicative of the Company's ongoing operations. The Company does not believe that this information is likely to be significant to an assessment of the Company's ongoing operations.

Conference Call Details 

Clearwater Analytics will hold a conference call and webcast on August 3, 2022, at 5:00 p.m. Eastern time to discuss second quarter 2022 financial results, provide a general business update, and respond to analyst questions. 

A live webcast of the call will also be available on the Company's investor relations website. Please visit investors.clearwateranalytics.com at least fifteen minutes prior to the start of the event to register, download and install any necessary audio software. 

If you are unable to participate live, a replay of the webcast will be available following the conference call on the Company's investor relations website, along with the earnings press release, and related financial tables.

About Clearwater Analytics  

Clearwater Analytics is a global industry-leading SaaS solution for automated investment data aggregation, reconciliation, accounting, compliance, risk, performance, and reporting. Each day, the Clearwater solution reports on more than $5.9 trillion in assets for clients that include leading insurers, asset managers, corporations, pension plans, governments, and nonprofit organizations – helping them make the most of their investment portfolio data with a world-class product and client-centric servicing. Investment professionals around the globe trust Clearwater to deliver timely, validated investment data and analytics. Additional information about Clearwater can be found at clearwateranalytics.com, LinkedIn, and Twitter.

Use of non-GAAP Information  

This press release contains certain non-GAAP measures, including non-GAAP gross profit, non-GAAP gross margin, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, non-GAAP net income per diluted share and free cash flow.

The non-GAAP measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. However, the Company believes that this non-GAAP information is useful as an additional means for investors to evaluate its operating performance, when reviewed in conjunction with its GAAP financial statements. These measures should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP, and because these amounts are not determined in accordance with GAAP, they should not be used exclusively in evaluating the Company's business and operations. In addition, undue reliance should not be placed upon non-GAAP or operating information because this information is neither standardized across companies nor subjected to the same control activities and audit procedures that produce the Company's GAAP financial results.

The Company's non-GAAP statement of operations measures, including non-GAAP gross profit, non-GAAP gross margin, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, non-GAAP net income per diluted share and free cash flow, are adjusted to exclude the impact of certain costs, expenses, gains and losses and other specified items that management believes are not indicative of its ongoing operations. These adjusted measures exclude the impact of share-based compensation and eliminate potential differences in results of operations between periods caused by factors such as financing and capital structures, taxation positions or regimes, restructuring, impairment and other charges.  Please refer to the reconciliations of these measures below to what the Company believes are the most directly comparable measures evaluated in accordance with GAAP. 

Use of Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's beliefs and assumptions and on information currently available to management. Forward-looking statements include information concerning the Company's possible or assumed future results of operations, business strategies, technology developments, financing and investment plans, dividend policy, competitive position, industry, economic and regulatory environment, potential growth opportunities and the effects of competition. Forward-looking statements include statements that are not historical facts and can be identified by terms such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "seek," "should," "will," "would" or similar expressions and the negatives of those terms, but are not the exclusive means of identifying such statements. 

Forward-looking statements involve known and unknown risks, uncertainties, and other factors, many of which are beyond Clearwater Analytics' control, that may cause the Company's actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks and uncertainties may cause actual results to differ materially from Clearwater Analytics' current expectations and include, but are not limited to, the Company's ability to keep pace with rapid technological change and competitors in its industry, the possibility that market volatility, a downturn in economic conditions or other factors may cause negative trends or fluctuations in the value of the assets on the Company's platform, the Company's ability to manage growth, the Company's ability to attract and retain skilled employees, the possibility that the Company's solutions fail to perform properly, disruptions and failures in the Company's and third parties' computer equipment, cloud-based services, electronic delivery systems, networks and telecommunications systems and infrastructure, the failure to protect the Company, its customers' and/or its vendors' confidential information and/or intellectual property, claims of infringement of others' intellectual property, factors related to the Company's ownership structure and status as a "controlled company" as well as other risks and uncertainties detailed in Clearwater Analytics' periodic public filings with the SEC, including but not limited to those discussed under "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 filed on March 16, 2022, and in other periodic reports filed by Clearwater Analytics with the SEC. These filings are available at www.sec.gov and on Clearwater Analytics' website.

Given these uncertainties, you should not place undue reliance on forward-looking statements. Also, forward-looking statements represent management's beliefs and assumptions only as of the date of this press release and should not be relied upon as representing Clearwater Analytics' expectations or beliefs as of any date subsequent to the time they are made.  Clearwater Analytics does not undertake to and specifically declines any obligation to update any forward-looking statements that may be made from time to time by or on behalf of Clearwater Analytics.

 

Clearwater Analytics Holdings, Inc. Consolidated Balance Sheets (In thousands, except share amounts and per share amounts, unaudited)
		June 30				December 31
		2022				2021
Assets
Current assets:
Cash and cash equivalents		$	278,646			$	254,597
Short-term investments			3,000				—
Accounts receivable, net			55,593				50,190
Prepaid expenses and other current assets			17,223				16,551
Total current assets			354,462				321,338
Property and equipment, net			12,613				10,738
Operating lease right-of-use assets, net			21,583				—
Deferred contract costs, non-current			5,572				5,687
Debt issuance costs - line of credit			826				922
Other non-current assets			5,589				5,670
Total assets		$	400,645			$	344,355
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$	891			$	1,416
Accrued expenses and other current liabilities			20,916				27,032
Notes payable, current portion			2,750				2,750
Operating lease liability, current portion			5,185				—
Total current liabilities			29,742				31,198
Notes payable, less current maturities and unamortized debt issuance costs			49,824				51,157
Operating lease liability, less current portion			17,789				—
Tax receivable agreement liability			3,100				—
Other long-term liabilities			965				132
Total liabilities			101,420				82,487
Stockholders' Equity
Class A common stock, par value $0.001 per share; 1,500,000,000 shares authorized, 57,660,081 shares issued and outstanding as of June 30, 2022, 47,948,888 shares issued and outstanding as of December 31, 2021			58				48
Class B common stock, par value $0.001 per share; 500,000,000 shares authorized, 2,696,785 shares issued and outstanding as of June 30, 2022, 11,151,110 shares issued and outstanding as of December 31, 2021			3				11
Class C common stock, par value $0.001 per share; 500,000,000 shares authorized, 47,377,587 shares issued and outstanding at June 30, 2022 and December 31, 2021			47				47
Class D common stock, par value $0.001 per share; 500,000,000 shares authorized, 130,083,755 shares issued and outstanding at June 30, 2022 and December 31, 2021			130				130
Additional paid-in-capital			420,123				388,591
Accumulated other comprehensive loss			(1,012)				(34)
Accumulated Deficit			(183,198)				(191,926)
Total stockholders' equity attributable to Clearwater Analytics Holdings, Inc.			236,151				196,867
Noncontrolling interests			63,074				65,001
Total stockholders' equity			299,225				261,868
Total liabilities and Stockholders' Equity		$	400,645			$	344,355

 

Clearwater Analytics Holdings, Inc. Consolidated Statements of Operations (In thousands, except share amounts and per share amounts, unaudited)
		Three Months Ended June 30,								Six Months Ended June 30,
		2022				2021				2022				2021
Revenue		$	73,409			$	60,876			$	144,187			$	117,770
Cost of revenue(2)			20,919				15,576				42,091				29,898
Gross profit			52,490				45,300				102,096				87,872
Operating expenses:
Research and development(2)			22,836				16,740				44,130				32,576
Sales and marketing(2)			13,074				8,814				25,067				16,025
General and administrative(2)			15,453				11,184				30,493				18,727
Total operating expenses			51,363				36,738				99,690				67,328
Income from operations			1,127				8,562				2,406				20,544
Interest expense, net			403				8,510				832				16,959
Tax receivable agreement expense			3,100				—				3,100				—
Other (income) expense, net			(444)				(13)				(359)				65
Income (loss) before provision for income taxes			(1,932)				65				(1,167)				3,520
Provision for income taxes			298				276				535				320
Net income (loss)			(2,230)				(211)				(1,702)				3,200
Less: Net income attributable to noncontrolling interests			198				—				329				—
Net loss attributable to Clearwater Analytics Holdings, Inc.		$	(2,428)			$	—			$	(2,031)			$	—
Net loss per share attributable to Class A and Class D common stock(1):
Basic and diluted		$	(0.01)			NMF				$	(0.01)			NMF
Weighted average shares of Class A and Class D common stock outstanding:
Basic			185,781,262			NMF					182,085,548			NMF
Diluted			237,545,574			NMF					237,213,366			NMF
NMF - not meaningful
(1) Basic and diluted net income per share of Class A and Class D common stock is applicable only for the periods after the IPO and related transactions.
(2) Amounts include equity-based compensation as follows:

 

Cost of revenue		$	2,376			$	749			$	4,687			$	1,272
Operating expenses:
Research and development			4,565				2,034				8,870				3,686
Sales and marketing			3,215				1,295				6,511				2,127
General and administrative			6,035				2,613				11,999				4,471
Total equity-based compensation expense		$	16,191			$	6,691			$	32,067			$	11,556

 

Clearwater Analytics Holdings, Inc. Consolidated Statements of Cash Flows (In thousands, unaudited)
		Three Months Ended June 30,								Six Months Ended June 30,
		2022				2021				2022				2021
OPERATING ACTIVITIES
Net income (loss)		$	(2,230)			$	(211)			$	(1,702)			$	3,200
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization			1,159				735				2,118				1,412
Noncash operating lease cost			1,794				—				3,334				—
Equity-based compensation			16,191				6,691				32,067				11,556
Change in tax receivable liability			3,100				—				3,100				—
Amortization of deferred contract acquisition costs			1,103				784				2,067				1,511
Amortization of debt issuance costs, included in interest expense			69				504				138				974
Deferred tax benefit			(508)				—				(484)				—
Changes in operating assets and liabilities:
Accounts receivable, net			(2,414)				(3,599)				(5,403)				(12,193)
Prepaid expenses and other assets			1,169				(963)				55				(11,433)
Deferred commissions			(1,304)				(886)				(2,115)				(1,245)
Accounts payable			(76)				626				(421)				50
Accrued expenses and other liabilities			192				3,714				(7,130)				(4,805)
Accrued sales tax liability			8				(5,379)				(457)				(5,379)
Net cash provided by (used in) operating activities			18,253				2,016				25,167				(16,352)
INVESTING ACTIVITIES
Purchases of property and equipment			(1,742)				(921)				(3,968)				(2,231)
Purchase of available-for-sale investments			(3,000)				—				(3,000)				—
Net cash used in investing activities			(4,742)				(921)				(6,968)				(2,231)
FINANCING ACTIVITIES
Proceeds from issuance of common units			—				—				—				1,560
Proceeds from exercise of options			771				251				6,384				251
Minimum tax withholding paid on behalf of employees for net unit settlement			—				—				—				(587)
Repurchase of common units			—				—				—				(626)
Repayments of borrowings			(688)				(770)				(1,375)				(1,539)
Proceeds from employee stock purchase plan			2,401				—				2,401				—
Payment of costs associated with the IPO			—				(400)				(214)				(400)
Net cash provided by (used in) financing activities			2,484				(919)				7,196				(1,341)
Effect of exchange rate changes on cash and cash equivalents			(1,023)				(83)				(1,346)				(133)
Net change in cash and cash equivalents during the period			14,972				93				24,049				(20,057)
Cash and cash equivalents, beginning of period			263,674				40,938				254,597				61,088
Cash and cash equivalents, end of period		$	278,646			$	41,031			$	278,646			$	41,031
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest		$	347			$	7,907			$	615			$	15,769
Cash paid for income taxes		$	115			$	—			$	486			$	57
NON-CASH INVESTING AND FINANCING ACTIVITES
Direct costs incurred with the IPO included in other assets and accrued expenses		$	—			$	1,172			$	—			$	1,172
Tax distributions to unitholders included in accrued expenses		$	976			$	—			$	976			$	—

 

Clearwater Analytics Holdings, Inc. Reconciliation of Net Income (Loss) to Adjusted EBITDA (In thousands, unaudited)
		Three Months Ended June 30,
		2022								2021
Net income (loss)		$	(2,230)				(3)	%		$	(211)				(0)	%
Adjustments:
Interest expense, net			403				1	%			8,510				14	%
Depreciation and amortization			1,159				2	%			735				1	%
Equity-based compensation			16,191				22	%			6,691				11	%
Tax receivable agreement expense			3,100				4	%			—				0	%
Other expenses(1)			451				1	%			1,682				3	%
Adjusted EBITDA			19,074				26	%			17,407				29	%
Revenue		$	73,409				100	%		$	60,876				100	%

 

		Six Months Ended June 30,
		2022								2021
Net income (loss)		$	(1,702)				(1)	%		$	3,200				3	%
Adjustments:
Interest expense, net			832				1	%			16,959				14	%
Depreciation and amortization			2,118				1	%			1,412				1	%
Equity-based compensation			32,067				22	%			11,556				10	%
Tax receivable agreement			3,100				2	%			—				0	%
Other expenses(1)			1,522				1	%			2,394				2	%
Adjusted EBITDA			37,937				26	%			35,521				30	%
Revenue		$	144,187				100	%		$	117,770				100	%

(1) Other expenses includes management fees to our investors, income taxes, foreign exchange gains and losses and other expenses that are not reflective of our core operating performance including the costs to set up our Up-C structure and Tax Receivable Agreement.

 

		Three Months Ended June 30,								Six Months Ended June 30,
		2022				2021				2022				2021
Up-C structure expenses		$	—			$	926			$	158			$	926
Management fees and reimbursed expenses			597				493				1,188				1,083
Provision for income tax expense			298				276				535				320
Miscellaneous			(444)				(13)				(359)				65
Total other expenses		$	451			$	1,682			$	1,522			$	2,394

 

Clearwater Analytics Holdings, Inc. Reconciliation of Free Cash Flow (In thousands, unaudited)
		Three Months Ended June 30,								Six Months Ended June 30,
		2022				2021				2022				2021
Net cash provided by (used in) operating activities		$	18,253			$	2,016			$	25,167			$	(16,352)
Less: Purchases of property and equipment			1,742				921				3,968				2,231
Free Cash Flow		$	16,511			$	1,095			$	21,199			$	(18,583)

 

Clearwater Analytics Holdings, Inc. Reconciliation of Non-GAAP Information (In thousands, except share amounts and per share amounts, unaudited)
	Three Months Ended June 30,								Six Months Ended June 30,
	2022				2021				2022				2021
Revenue	$	73,409			$	60,876			$	144,187			$	117,770
Gross profit	$	52,490			$	45,300			$	102,096			$	87,872
Adjustments:
Equity-based compensation		2,376				749				4,687				1,272
Depreciation and amortization		728				404				1,334				771
Gross profit, non-GAAP	$	55,594			$	46,453			$	108,117			$	89,915
As a percentage of revenue, non-GAAP		76	%			76	%			75	%			76	%
Cost of Revenue	$	20,919			$	15,576			$	42,091			$	29,898
Adjustments:
Equity-based compensation		2,376				749				4,687				1,272
Depreciation and amortization		728				404				1,334				771
Cost of revenue, non-GAAP	$	17,815			$	14,423			$	36,070			$	27,855
As a percentage of revenue, non-GAAP		24	%			24	%			25	%			24	%
Research and development	$	22,836			$	16,740			$	44,130			$	32,576
Adjustments:
Equity-based compensation		4,565				2,034				8,870				3,686
Depreciation and amortization		258				217				482				422
Research and development, non-GAAP	$	18,013			$	14,489			$	34,778			$	28,468
As a percentage of revenue, non-GAAP		25	%			24	%			24	%			24	%
Sales and marketing	$	13,074			$	8,814			$	25,067			$	16,025
Adjustments:
Equity-based compensation		3,215				1,295				6,511				2,127
Depreciation and amortization		66				63				132				120
Sales and marketing, non-GAAP	$	9,793			$	7,456			$	18,424			$	13,778
As a percentage of revenue, non-GAAP		13	%			12	%			13	%			12	%
General and administrative	$	15,453			$	11,184			$	30,493			$	18,727
Adjustments:
Equity-based compensation		6,035				2,613				11,999				4,471
Depreciation and amortization		107				51				170				99
Management fees and reimbursed expenses		597				493				1,188				1,083
Up-C structure expenses		—				926				158				926
General and administrative, non-GAAP	$	8,714			$	7,101			$	16,978			$	12,148
As a percentage of revenue, non-GAAP		12	%			12	%			12	%			10	%
Income from operations	$	1,127			$	8,562			$	2,406			$	20,544
Adjustments:
Equity-based compensation		16,191				6,691				32,067				11,556
Depreciation and amortization		1,159				735				2,118				1,412
Management fees and reimbursed expenses		597				493				1,188				1,083
Up-C structure expenses		—				926				158				926
Income from operations, non-GAAP	$	19,074			$	17,407			$	37,937			$	35,521
As a percentage of revenue, non-GAAP		26	%			29	%			26	%			30	%
Net income (loss)	$	(2,230)			$	(211)			$	(1,702)			$	3,200
Adjustments:
Equity-based compensation		16,191				6,691				32,067				11,556
Depreciation and amortization		1,159				735				2,118				1,412
Tax receivable agreement expense		3,100				—				3,100				—
Management fees and reimbursed expenses		597				493				1,188				1,083
Up-C structure expenses		—				926				158				926
Tax impacts of adjustments to net income(1)		(5,543)				(2,584)				(10,865)				(5,364)
Net income, non-GAAP	$	13,274			$	6,050			$	26,064			$	12,813
As a percentage of revenue, non-GAAP		18	%			10	%			18	%			11	%
Net income per share(2) - basic, non-GAAP	$	0.07			NMF				$	0.14			NMF
Net income per share(2) - diluted, non-GAAP	$	0.05			NMF				$	0.10			NMF
Weighted-average common shares outstanding - basic		185,781,262			NMF					182,085,548			NMF
Weighted-average common shares outstanding - diluted		254,338,870			NMF					253,780,420			NMF

NMF - not meaningful

(1) The estimated non-GAAP effective tax rate was 29% for the three and six months ended June 30, 2022 and has been used to adjust the provision for income taxes for non-GAAP net income and non-GAAP basic and diluted net income per share.

(2) Basic and diluted net income per share of Class A and Class D common stock is applicable only for the periods after the IPO and related transactions.

 

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SOURCE Clearwater Analytics, LLC