Clearwater Analytics (CWAN) Morgan Stanley US Financials, Payments & CRE Conference 2024 summary

Business overview and growth

• Provides daily comprehensive global portfolio views for clients across multiple asset classes and geographies.

• Achieved consistent 20%-25% annual revenue growth, primarily organic, with high gross revenue retention of 98%.

• Gross margin improved from 74% to 78% recently, with EBITDA margin at 31% and strong cash conversion.

• Growth is steady and predictable, not subject to high volatility.

Market opportunity and expansion

• Total addressable market (TAM) estimated at $10 billion, with recent expansion into Asia and new product launches like PRISM.

• Current revenue guidance is $440 million, representing about 5% market share.

• Focused on growing in North America, Europe, and Asia, with new offices and client wins in Singapore and Hong Kong.

• Government sector and pension wins further expand TAM.

Product innovation and adjacent markets

• Investing heavily in R&D to launch 2-3 new products annually, aiming to boost net revenue retention (NRR) from 108-110% to 115%.

• Recent acquisitions (JUMP, Wilshire risk and analytics) target client needs and leverage existing data infrastructure.

• New products and M&A are key to expanding into adjacent markets and increasing attach rates.