Clearwater Analytics Holdings, Inc. has delivered an impressive performance in its first-quarter 2025 financial results, surpassing both revenue and earnings expectations. The financial software company achieved a revenue of $125 million, marking a 22% increase compared to the previous year. This figure not only aligns with the company's guidance but also exceeds analyst projections.
In addition to revenue growth, Clearwater Analytics reported a non-GAAP net income per diluted share of $0.13, beating the consensus estimate of $0.10. This is nearly double the $0.07 reported in the same quarter last year. Furthermore, the company experienced a 25.3% year-over-year increase in Annualized Recurring Revenue (ARR), which now stands at $474.9 million. Enhanced customer retention is reflected in their net revenue retention rate of 116%, up from last year's 107%.
Clearwater’s strategy of operational efficiency is evident in their adjusted EBITDA of $41.5 million with a 33% margin. This financial robustness has led to an 8.2% rise in the company's stock price following the earnings announcement, as highlighted by Investing.com. These results demonstrate Clearwater's solid positioning in the investment management software arena and its capacity to sustain growth and profitability.