BOISE, Idaho - Clearwater Analytics Holdings, Inc. (NYSE: CWAN), a provider of SaaS-based investment management solutions, announced a secondary public offering of 25 million shares of Class A common stock. The shares are offered by affiliates of Welsh, Carson, Anderson & Stowe, Warburg Pincus LLC, and Permira Advisers LLC, known as the Selling Stockholders. Clearwater Analytics will not receive proceeds from this stock sale.
The underwriter, J.P. Morgan, will manage the offering, selling shares at market prices or negotiated prices. The shares are listed on the New York Stock Exchange under the ticker CWAN.
This offering follows a shelf registration statement filed on March 8, 2023. Details about the offering's terms can be found in a prospectus filed with the SEC, which is also available through J.P. Morgan Securities, LLC.
Clearwater Analytics specializes in automating investment processes, including portfolio planning, reporting, data aggregation, reconciliation, accounting, compliance, risk, and order management. Their platform is used by insurers, asset managers, corporations, and governments to manage over $7.3 trillion in assets.
The company cautions that this press release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements include projections about the company's future operations, strategies, financial plans, competitive position, industry environment, and growth opportunities. However, these statements are not guarantees of future performance and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially.
Investors and potential buyers are reminded that the offering is subject to the registration requirements of the Securities Act of 1933, as amended. The sale of securities will comply with these requirements.
The information provided is based on a press release statement from Clearwater Analytics Holdings, Inc.
In other recent news, Clearwater Analytics has seen significant financial growth, as evidenced by their third-quarter results. The company showcased a 22% year-over-year revenue increase and a 34% year-over-year growth in adjusted EBITDA, surpassing DA Davidson's projections. In response to these positive earnings, Clearwater's management revised their 2024 forecasts upwards, nudging the midpoints for revenue and adjusted EBITDA higher by approximately 1% and 2%, respectively.
Despite the strong performance, DA Davidson downgraded Clearwater Analytics from Buy to Neutral, citing the company's current market valuation after a significant year-to-date rise in share price. However, the firm did increase the price target to $35.00, recognizing Clearwater's solid third-quarter results and the management's confidence in future performance.
In addition to the financial updates, Clearwater Analytics announced Subi Sethi as the new Chief Client Officer during their earnings call. These developments underscore the company's commitment to growth, innovation, and client relations. As these are recent developments, investors can expect to see how these changes impact the company's performance in the coming quarters.
InvestingPro Insights
As Clearwater Analytics Holdings, Inc. (NYSE: CWAN) announces a secondary public offering of 25 million shares, investors may find additional context from recent financial data and analyst insights valuable.
According to InvestingPro data, Clearwater Analytics has shown strong growth, with revenue increasing by 20.61% over the last twelve months to $424.36 million. This growth trajectory aligns with the company's position as a leading SaaS provider in the investment management solutions space.
InvestingPro Tips highlight that CWAN's net income is expected to grow this year, and analysts predict the company will be profitable. This positive outlook could be attractive to potential investors considering the secondary offering.
However, it's worth noting that CWAN is trading at high valuation multiples across several metrics, including P/E, EBIT, EBITDA, and revenue. An InvestingPro Tip also indicates that the stock's RSI suggests it may be in overbought territory, which could be relevant for investors analyzing the timing of this offering.
The company's strong recent performance is evident in its price returns, with a significant 21.25% return over the last week and a 65.8% return over the past year. This momentum may contribute to the Selling Stockholders' decision to offer shares at this time.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for CWAN, providing a deeper understanding of the company's financial health and market position.
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