Clearwater Analytics Holdings, Inc. (NYSE:CWAN) Q4 2022 Earnings Conference Call February 21, 2023 5:00 PM ET

Company Participants

Joon Park - Head, Investor Relations

Sandeep Sahai - Chief Executive Officer

Jim Cox - Chief Financial Officer

Conference Call Participants

Rishi Jaluria - RBC

Michael Infante - Morgan Stanley

Ele Smith - JPMorgan

Ella Smith - JPMorgan

Gabriela Borges - Goldman Sachs

David Unger - Wells Fargo

Kamil Mielczarek - William Blair

Brian Schwartz - Oppenheimer

Yun Kim - Loop Capital Markets

Operator

Ladies and gentlemen, thank you for standing by and welcome to the Clearwater Analytics Fourth Quarter and Full Year 2022 Financial Results Conference Call. [Operator Instructions] And now, I would like to welcome Joon Park, Head of Investor Relations to begin the conference.

Joon Park

Thank you and welcome everyone to Clearwater Analytics fourth quarter and full year 2022 financial results conference call. Joining me on the call today are Sandeep Sahai, Chief Executive Officer and Jim Cox, Chief Financial Officer. After their remarks, we will open the call to a question-and-answer session.

I would like to remind all participants that during this conference call, any forward-looking statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Expressions of future goals, including business outlook, expectations for future financial performance, and similar items, including without limitation, expressions using the terminology may, will, can, expect and believe and expressions, which reflect something other than historical facts are intended to identify forward-looking statements.

Forward-looking statements involve a number of risks and uncertainties, including those discussed in the Risk Factors section of our filings with the SEC. Actual results may differ materially from any forward-looking statements. The company undertakes no obligation to revise or update any forward-looking statements in order to reflect events that may arise after this conference call, except as required by law. For more information, please refer to the cautionary statement included in our earnings press release. Lastly, all metrics assessed on this call are non-GAAP, unless otherwise noted. A reconciliation can be found in the earnings press release that we have posted to our Investor Relations website.

With that, I will turn the call over to our Chief Executive Officer, Sandeep Sahai.

Sandeep Sahai

Thank you, Joon, and welcome, everyone. Let’s start with the numbers because we are delighted to share robust results for both Q4 and the full year 2022. Revenue for the full year grew 20.4%. Gross revenue retention stayed at 98% for the 16th straight quarter. Net revenue retention climbed to 106%. Gross profit was 75.7% in Q4. EBITDA margin for Q4 was 29.4%. We generated free cash flow of $16.6 million in this quarter. And in the last 100 days of 2022, 2 more of the 20 largest insurers in North America chose to move to the Clearwater platform. That, I hope you will agree, is very compelling execution.