- Record Q2 Revenue: $181.9M, +70% YoY, surpassing guidance by $7.9M.
- ARR Surge: $783.5M ARR, +83.4% YoY, driven by $513M organic ARR (+20% YoY).
- Gross Margin Expansion: 77.4% non-GAAP margin, exceeding 400bps improvement target for Enfusion.
- EBITDA Growth: $58M adjusted EBITDA, +74% YoY, with 32% margin.
- Full-Year Guidance: $726–732M revenue (+61–62% YoY) and $232–237M EBITDA (32% margin).
Synergy and Growth Acceleration
Clearwater is demonstrating exceptional execution since the Enfusion acquisition, exceeding initial expectations for both revenue growth and margin expansion. The company attributes this success to strong synergy realization, operational efficiencies, and a targeted approach to cross-selling and launching new products. While the acquired businesses have outperformed projections, Clearwater remains cautious and maintains its conservative guidance, highlighting the early stage of the integration process.
Strategic Pricing and Commercial Model Shift
Clearwater is taking a measured approach to pricing within Enfusion, leveraging learnings from previous transitions to align pricing with the value delivered. The company emphasizes a shift towards a commercial model that focuses on delivering comprehensive solutions and packages, rather than solely relying on price changes. This involves a deliberate and well-designed approach for implementation, with a focus on client servicing excellence and platform performance.
AI and Alternatives Investments
Clearwater is exploring the potential of generative AI to drive productivity gains and believes it will significantly impact the business in the coming years. The acquisitions of Beacon and Bistro, coupled with the partnership with Blackstone, position Clearwater as a leader in the rapidly growing alternatives investment space. The company aims to provide clients with near real-time cross-asset class risk exposure and visualization capabilities, enabling better decision-making in this complex market.