Clearwater Analytics (CWAN) 2 Aug 232023 Q2 Earnings call transcript

Good afternoon, ladies and gentlemen. Thank you for standing by and welcome to the Clearwater Analytics Second Quarter 2023 Financial Results Conference Call. At this time, all participants are in a listen mode only. After the speakers' presentation, there will be a question-and-answer session.

And now I would like to welcome Joon Park, Head of Investor Relations to begin the conference.

everyone call. Analytics' welcome financial quarter and conference results you, to second Clearwater XXXX Thank

on call Officer. me a and we Joining the open question-and-answer Jim Executive Sahai, will Cox, Officer; session. Chief Chief call Financial the After remarks, today their to are Sandeep

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

risks from number statements filings of including Forward-looking to materially differ in SEC. of as arise discussed involve update reflect that the after except company The order revise law. section may with and required statements Factors conference or this the events forward-looking our no any undertakes in any call statements. uncertainties, by obligation forward-looking may Risk results to a those Actual

in refer the please information, more For press cautionary our statements to release. included earnings

Lastly, that GAAP reconciliation adjusted earnings Investor we the acquisition all on A XX, be on basis metrics November release of website. noted. presented discussed Technology can to or on to the since have this unless found our and non-GAAP press results a call are Relations JUMP include the results XXXX, posted in otherwise

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

me proud outstanding QX by entire our team of to QX. start incredibly our that you, Thank saying And Joon. to in for earnings Clearwater the I'm execution call. welcome Allow

very scores. even satisfaction we live. There saw well. key brought impressively, large and executed clients more customer and we are successfully NPS And small both One, we areas where four best-ever

continue they competitors largely quarter, team very who sales a had to Second, offer win legacy good and the solutions. against

rolled pain positive we and points. year. continue see customers' Third, fourth, And to deliver we continue innovate address impact the we products our that commercial out last model from to

Let's these. each dive into of

with start excellence. let's First, operational

We have Aviva QX they team, our fully been live onboarding a of and far was scalability how platform. maturity have our testament to increasing is investing and come. on

As £XXX provider Aviva over you serving insurance, view They consisting and XX have provide AUM. products comprehensive daily know, portfolio leading the we million billion customers. is on in assets a U.K. of of global platform their more than retirement and a of our wealth

is functionality we had including highest of accounting the significant, Asia. coverage milestone we local with complexity standards FWD Europe. With the have build combined in coverage, handle that very the multi-country to proven this regulatory we this accomplishment, to can across market unique for of because in Achieving Europe; reporting asset specific Europe, and level countries for to class onboarding

Our to included platform and the a customers is name now Mutual QX Management go-lives just few. Amica major used Insurance, Highmark Investment sophisticated by world. across Greenwich Health in Other large

time taken clients improving average bring months. allows our this multi-tenant In us six was QX, platform to bring of platform approximately single-instance continue value effect with process go-live network time live average we and customers our our decrease to to saw on The faster.

to customers that a As exceeded QX, a in metric find one in teams clients. NPS our giant client our already all thrilled and In industry-leading continue current our from To that trust to-date. customers industry references, allows place significant our provide. is best growing says and of provide by acknowledgment the an services platform, recorded with with we incredibly that and It you acknowledge us is happy the you it we and provided our our will of. their the know, highest to highest onboarding me, the practices, our proud effort of access are care team NPS support numbers the you're and is us. are we and That

the working industry is environment. feel with The discuss customers in pain the systems while Second, our legacy demand significant. let's

our We throughout continued to the close of deals XXXX. and half pipeline saw build first

growth insurance, even across been our government. Our has management, key fairly and corporates of industries asset

This to Morgan Asset Platform. Corporation. Society Western We the Finance In JPMorgan Covenant Group, of Viridian and between Limited, clients, announced second and Incorporated Asset Global existing permission Medical with Apollo with strategic expanded Limited, Mortgage Dental marquee Management, with Money navigate Capital users as easily Syndicate, partnership platform our Intellia a quarter, the Wyoming, Therapeutics Delta allows we Trading clients our footprint systems. integrating Capital, added Therapeutics, both such Protection Omnicap

The the Clearwater and joint Morgan and for investment them a view easier professionals global the have make on real-time financial to of empower make solution it connected will platforms. investment to portfolios decisions Money

We our Clearwater LPx Prism. continue sales to like see strong and add-on of products

existing office the both large first with clients which on and front-to-back and platform. to also with market. for We've US reporting more Clearwater. accounting strong were French our of use this successful with offering half to that Prism successes for one and AUM had midsized client double led reconciliation. the new Northern Benelux the wins institutions in an had the several included than management example, front here JUMP's signed and and Clearwater This insurance very suite an a insurers large We several with As Europe JUMP's paired asset in industries. Europe with in full

the from an in premise JUMP the offering. may Overall, across that deals of you to combined see cycle our a clients product working both to continues also any life the Clearwater resonate underscore our executing TAM As product our These receive validate and don't expanded on recall, platforms with the with entire together. we environment. we're They globe, our competitive a investment vision acquired change value revolutionize plan. and

to platform the Our sustained investments in continues our in us apart set market.

having be on have trajectory. the our to with impact and pleased we changes and we continue it can year last growth commercial model, Thirdly, on drove our is the

recall, happier and be clients has model. across with As pure you default a made commercial the a results model the sizes. might leap to base we and industries with year We now way, we contract the model couldn't from last AUM-based become plus this

With by a increasingly our we customers Prism are of LPx JUMP's company acknowledged chain. solutions as and value capable multiproduct modules, the providing across

for Our a feel helps us. clients here confident from continues both customers our our strong win-win to purchasing NPS clearly approach more software and in create Clearly, Clearwater. for

aggressive to and the our allowed and Asia. R&D, sustained the in Europe to both address in expand Fourth, clients platform needs of investments us

North efforts involve using customers of solve as will these building We gives America. Many to have design to of products invested in that in existing and confidence pay clients that the investments partners off. continue our need here us

Prism, detailed and LPx and a program loans. accounting but we with also commercial in Clearwater improve beta I the QX, MLx, for which Clearwater visibility to began designed already mentioned retail solution and is Clearwater a mortgage

expect Clearwater We QX. launch MLx to in

of Clearwater to investment frontier platform. Another already functionality office that JUMP We're would work front-to-back the be customers we using front bring the and with have delighted to US want who us. American to North

of configure allowing capabilities including on and are accounts. the our to customers service their working we additional manage growth health Next,

is we near real-time which that This us also and record will are same-day recon, how as for investment We visibility. help deliver intraday need referred of T+X sometimes improve data enhancing to book processing. clients

doing disrupt to the have with generative about to work and transform the market. are AI we We and potential the talk

You are have this press may where that calling which we large recent GPT. instance up seen announced stood a on release Clearwater of we we topic, own our model our language

first as can AI-driven solutions gen growth new out immediately that cycle. Gen product rolling effort AI see clients. with the on of We impacting the line solution service investment I'm seeks we new our way to company and address is sure working the adding operations. are GPT to financials. mean this of We if based efficiencies to full offering improving kind wondering, with predict the what you're both revenue its dramatically might life the and this across our bottom we Clearwater the

that, and say hard it impact the good. product technology have. just the assess promising is very the early to the it is is me very But new results Let are can and full

the We expect for coming to more you in months. have details

are around Officer, we brings Sunil innovating offering new Product who and that companies. diverse our Given welcome Chief our Dixit building world, to in as expertise geographies robust SaaS caters proven multiproduct to excited leading multiproduct the at platforms

these team, recognize deliver platform. but growth think stop about addressing allows demand increase margins and large consistently. based areas, only a is of what with and that an stable four operational to on the proud a clients' When to potential commercial effective also DAM, I our I'm not I excellence, us pain with this model disruptive

strength the the in and since That bear actions years is out set public to our results what deliver we our we last two approach. went out and of

to on We time are a Clearwater at be plan. Analytics. to goals It's frankly aggressive setting our executing and great

the turn of results and me it Jim let Now, year. over company to the financial the outlook for discuss to the

and XXXX Sandeep, very all for our joining you Thanks, QX proud results. We're of us. thank

me by driven translates continued XXXX, metrics XX.X% on-boarding clients activity QX existing we revenue delivered our line drive in In with team. Let to $XX.X start at growth top expansion and revenue. revenue our and the strong that operations the which million by year-over-year solid

and Clearwater. value that completed many of onboarding Over an price those six so year-over-year. we like not from model. QX one the XXXX particularly reported it's annualized onboarding months. choosing programs. and at quarter just prospects plus of had end duration XX last we've an worry base $XXX.X over And value or We surprising over to revenue few recall year to our QX satisfying, the average time the of asset quarters, the ARR This XX.X% are look program in With recurring that, announced pricing increase the transition back is of AUM second when to million,

to for clients. the evidenced which I gross one gross XX, have Today, XX% Clients one remain XXXX. would future. even durable, stay as the of us predicted future XX%. then out percent our quarters retention with expect XX XX that XX-plus would about as our year the back reason, June not investors remain more by has of retention return growth reliable we for optimistic last That's our our into been many intact

More net importantly, with retention rate revenue clients our XX, as evidenced XXXX. grow by as XXX%, us, of June of

help XXX% We client foundational And model, base we corporate clients is or can we to clients. offerings bundled and rollout seeing We've of acceptance do more American in North success the recent to doing the are elements for of beyond expand by believe our our for our base our this because the market dividend. within with and completed We the insurance NRR the true plus NPS more. aspire markets. fact

a professional select the to choice prospects that path bundles and new to offerings, and the they their allow expand. enterprise bundles. we capabilities prospects providing solve expanded Clearwater bundled problem, With sophistication of when our between offer today's These burning offering while market-specific base, matches

our Now to have that LPx our the and Prism provide the expected of that the have coupled MLx, expand we reach launch opportunity within all clients. with functionality JUMP we of solutions

will go-to-market on on all across We to continue evolve with of relationship engine acquisition market both new and clients focus client expanding add our segments. our teams existing focused our to

revenue our full guidance range fee our year guidance The year to through million growth. or million our raising revenue $X $XXX year-over-year are full full for to quarter XX% the in is second and guidance we year by to flowed $XXX XX% as million

$XX.X This than margin X% second a is and turn straight our by results. million. EBITDA. revenue reported at to let's which translates outperformance in Now as XX.X% million EBITDA through result our profitability $X fee quarter EBITDA better guidance flowed adjusted solid We to a the in to

of path second profit our long-term XX.X% improvement that margins margin gross a from exceeded gross is the in we gross goal XX% which incremental was This the our quarter the gross XX.X% reported gross Non-GAAP quarter of illustrating market. fourth on was making our progress XXXX. and slight second in consecutive million where quarter at are $XX.X the in came margin toward

and the XX.X% research development That of quarter expenses XXXX. QX of is of $XX.X from R&D in X.X% Non-GAAP XX.X% revenue revenue. were or a in million the spend decrease of of sequential

with forward We expect down percentage achieving going trend a as are R&D efficiencies of in we the R&D. expense to revenue

entering steady-state a of For programs are Europe example, more in large base.

XX.X% expenses of of Sales revenue sequentially increase or to with X.X% better quarter an leverage. marketing and decreased administrative percentage million the General a XX.X% were first And quarter the of quarter. $X.X equates and to flat expenses showing were G&A as year-over-year. in in $X.X million, revenue. $XX.X million That the

$XX.X awards to JUMP On to a million GAAP the $X.X acquisition basis increased in compensation related as equity-based full million, granted QX of quarter were expense including in reflected the QX. from

as equity-based it compensation water will this that percentage a for level decrease the expense expect We forward. and is of that going high revenue

XXXX QX. of The performance-based significant from in granting awards results expense in the three-year

GAAP XXXX, performance intuitively XXXX in as of versus awards criteria; year vest the is assuming the you the achievement recorded of XX% XX% one-third the expense first for and XXXX in Although, each might assume. purposes

income we recorded expense Below agreement $X.X expense. recorded million lieu of tax tax the from and tax expense. $X.X cash of TRA agreement interest in income the We operating year-to-date income record balances of or receivable our investment we of line, net receivable excess million

We cash be a of costs receivable pay quarter in federal of the because expense tax to of will of TRA agreement payer tax expect fourth XXXX. amendment tax purposes. U.S. the the R&D the for law After capitalization we of the

in holdings with results $XXX.X total cash cash, cash the million to equivalents in of million. net investments million balance That approximately debt. and and turn Let's sheet and $XX.X We cash the $XXX in ended flow. quarter

continued income million cash from flow second quarter the yield. we our flow senior the of invest includes the $X.X fixed XXXX. cash and XX.X% for year-over-year growth quarter million excess Free capital was $XX.X of During This quarter, expenditures. cash in excess for to of security representing second

In cash was diluted free of flow $X.XX per share to the loss of conversion $X.XX a XX%. GAAP of EPS per share. rate reported EBITDA a fully was We the second and EPS non-GAAP quarter, at

QX EPS, been essentially fully utilize for flat was has since of of diluted not that QX with count shareholder which went there last count our the and dilution even last million XXXX, end quarter the public. For That we shares. non-GAAP and diluted reflecting with company share year fully share is XXX.X

turn to let's Now, guidance.

XX.X% of Focusing for on and million EBITDA consistent margin, third expect approximately quarter be for EBITDA the $XX adjusted QX. expect we revenue to be XXXX, guidance million to with we $XX.X or

low growth. XX% For to is to I which the guidance $XXX increased high million, the range full million and $X year the of XXXX, the XX% end said increase million to year-over-year as approximately of and $XXX revenue before, an we've in represents

We have guidance full That represents midpoint points of XX.X% EBITDA the year also for the to basis margins $X.X the to XX.X% for an by XX at increased over guidance million expansion XXXX. to our $XXX XX million full full XXXX. EBITDA year year of

and momentum quarter forward noted growth numbers As EBITDA second our another reaccelerated the free execution We look Sandeep to strong demonstrate, revenue keeping flow. was of XX% to solid with the going. and quarter cash

provide turn to that, I'll closing over some With it to Sandeep thoughts.

Thank you, Jim.

we the I'm on portfolio remain growing proud industry. As our the at laser-focused I incredibly revolutionize have mission best-in-class. reflect team Clearwater. offerings on By We of of every second management are exceptional to quarter, undeniably our measure product the investment

excited for opportunities capabilities new will sector. AI to disrupt particularly generative I'm ignite and the about and fintech its the potential transform that

clients' at to our team meeting Clearwater continues ever-changing Our needs. boldly innovate consistently

we us. their with At seeing goals, ours. achieve matters of satisfied our their the you. end day, platform growing management, our and most Thank the assets the to clients they under achieve When

[Operator Instructions].

D.A. Our with first Peter Heckmann is from question Davidson.

open. now line is Your

the the taking that in half little onboarding you the in do about the bit go-lives? first guess clients? you larger -- of the in terms of terms same? you're Can said for I you afternoon. Thanks they the of speeding good XX% about how question. it Are staying average getting is a and size Hey comment think

This you Can okay? is Pete. hear Jim. Thanks me

Yes.

sure about I sorry I Okay, that. just to great. was on make mute, wanted

are yes, XX those programs. So, so

companies clients XX Sandeep Aviva, could some solutions assets those. of additional globe, a about variety So, onboarding be top larger those broad across onboarding the and insurance at of well So, of onboarding one right? kind some of our as across spoke existing additional of as products there's --

impressive. it to it number few although it's It's to the down shrinking down really and about comes that size and what less more clients of about the for a comes to I period the very takes shrinking time elements. -- that's think value to get

Number onboarding Number put effect, two, seeing one, over our holding really custodian, and effort we're and importantly that. in out in network you're and and clients, of lot different providers, the accountability done streams the ourselves. onboarding and collaborative really right, the upstream that has more principally data clients a it's that a opportunity, structure couple last adding has between of -- of to geographies process, the networking the building team mutual the with downstream formalize in participants process as as most well the clients the years ourselves; all as that

of quarter, of And so continue here, which all is amalgamation accomplishments this of the first coming those -- what think seeing elements of saw we in feel the we're proud the that we second together. and in And the I team. see to quarter really

talking I months sure Pete, six would just I'm covered the thing in is, live. things add you've this is only ERP past. The like systems go about to Sandeep.

You talk about years.

to and us about fully for what a You trying six the live. talk just it, that years we're do. allows several talk months And to provide fact, about to improve we to how go effect network programs the to contrast

think I the super long. industry for So, having in do been that just impressive, it's

just with in partnership platform That have And I in be, terms use terms as contribution, to how if allow size, Clearwater. Okay. trading big about you, And users existing could -- helpful. that successful how if Money a But place, think their maybe you you're then of about sounds, a in that of Morgan global the s and it going could client ramping? bit little you strategic it's do JPMorgan in you guess, customers. to cross-selling

Yes.

have. is the one we already So, largest of that one JPMorgan clients is

that The bring very platform. easily. and point, usually to more more on that And it our AUM functionality one. platforms is, on allows both clients on that's point two use So allows people

attracts that do platform. our play if platform, at it to trade and The more you the clients look data more the that us. platform for on ability So our and can that's is, play on easily, the to

done have we we ease those which partnerships, a with new that with growth they join had platform of of our because sustained AUM we these between two And from Now also the and saw platforms. go, clients. other clients could

So, relationship them in the strategic. we and with to think years come. grow continues our it think it's JPMorgan, cement continues to We to quite

you. the All right. queue. in Thank I’ll get back

question Jaluria from next with RBC. is Our Rishi

Your open line now is

press more my little Clearwater from doubt some wanted and about, GPT. maybe into really does strategy? you they customers bit I AI tie Jim. Because see a data much think big like a going so for Oh, opportunity really to the there's I Sandeep. Hi, wonderful. the talk to Hi, that GPT? anticipate business. ways taking LOMs And continued little seeing of broader Nice of relationships, some given use the importantly, have in Clearwater you the for you themselves. in sounds you your into can to by start deeper Thanks and how a verticalizer, But impressive. be pretty a strength bit release these and cases questions. help do can't that of the it generative feels -- that No

little I both So, and those I've of bit drill quick to got would a follow-up. into a love

Thank you, Yes. Rishi.

is look AI and Gen transformative believe disruptive. So we

for can launched our our of that obviously, impact business. have on You kind positive and understand it very Clearwater also business, GPT. mostly significant we think can We

put I talk buckets. them some so is, think, enhances let's examples. can And two just into about which One different And revenue. basically you

our which So the can improve can one of things, our And is, the operations. efficiency ones help grow second revenue. which

Obviously, about gross is operations first. talk that efficiency because margin. let's important So just, drives

allows said is, we and room to we look and there's yourselves, XX% meaningfully more us about to question talked And better think have there's the there So XX%. much path operating there whenever think to ChatGPT is a results. we have

morning, have As to know, have data are normalized. many feeds exactly X,XXX and be what feeds be Now you every we data they some to and get reconciled, talking aggregated they about? we

significant a machine it Gen ourselves think be to the like think impact a using will what portion could have have AI, something versus meaningful what Now can we we done We so. do. in do

majorly be disruptive. can that think we So

both lot on energy deployed. one ChatGPT can those if our is, change again, and successfully could spend we a of meaningfully, onboarding. second And client The be very servicing

those of some be report coming sort dedicated of -- both people, ideas, we have some those with progress and have we working dedicated to on teams expect the to able in So leadership months.

other drive revenue-oriented. What obviously, The That's completely the changes they're help us Natural areas. customer And area. big a interaction can side one revenue? of two value interaction. you One platform. derive just can language is, is from it,

XX frankly exciting the been we allows can insights historically second years we you can is have ChatGPT or to either a yields back to of other us draw, functions to exciting. large look the the most super one use improve doing draw. I insights very interesting and of volume But what one at and is can the which think improve work clients going Because and data

So to dedicated areas after invested get again we those are leadership it. and where two have teams dedicated

already to magnitude We order could Rishi. thing of is using machine so of just one already. -- want We're, This different learning caution this obviously, more have. a I just very what impact

So we're it. really about excited

have and on teams product and period We a of it time. R&D working have working teams dedicated for been

we months and where can yet ready just and qualify we'll better make think look a say to and here's four all We go I go chance to so not another we this to to else. we're something of want think come for And GenAI. say, you with position in a on look to three, back us that if you be has it's then will

feels a seen a faster next-gen very do for ability managers Wonderful. Thanks to to as add and big long thinking this because Sandeep. their to on about it cases. it of migrate Obviously that. really about a legacy helpful. generative to potential easier right continuing opportunity Clearwater in you use on the space given out there's for involved from just you other and and to thorough complexity Maybe using what asset think That’s make well. answer like legacy migration process? But that's lot in lot How from companies of make a that's we've data GenAI GenAI a solutions use there to

you about that? Thanks. thinking are So how

can the how onboarding think do we absolutely. you Clearwater know as But, change you the Thank the you agility And full done part. it functionality of once you, about transformation then gives And yeah, is hard onboarding. the have want think could and you analytics. Rishi. and completely the course I

transform like onboard And feel could GenAI we so how we it.

from an competitive while probably move let's example To XX platform. that those have platform, say exercises take done legacy client we XX, a them a legacy we onboard transformation to same onboarding of from

You point next all GenAI those that and done. and to has right? the from can meaningfully doing do you're faster, learned it onboarding Because it it XX onboarding exercises you've

do So to the we meaningfully. of transformative. that's profile do time risk onboarding think We changes and the exercise think really value it

revenue So of but is look when perhaps the to on use it, comes side it actually think the biggest efficiency the side. efficiency we just the not on case on it side

Wonderful. you so much. Thank

Thanks Rishi.

Our with Stanley. next Faucette from Morgan James question is

is now open. line Your

It's for on our there. the to year-over-year Obviously, see circle guys. Infante I Thanks really taking just Hi improvement Michael back and for wanted question. James. sequential to impressive NRR. on

Jim, of it little XXX this of improvement to a NRR that we to to your does so confidence time? that great pricing see And improvement attach last decompose level is bit pull between new products? migrating anticipated initiatives in getting year's to accelerate over versus incremental that that. Does longer, I think possible forward? to take level the recent that

Yeah. Thanks Michael. Thanks.

the to near future. correlated we believe XXXX do sustainable can XXX. to from moving So And XXX XXXX almost look as to acceleration from the into that we be revenue NRR is

of Michael model, price to the sophistication plus LPx, strategic just months Prism. modules the And flowing So why company really obviously, It's is of pricing, base MLx, the growing? XX last it initiative a over you're the through, commercial adding the primary in build continues. right incremental increases these that build default have been, in

were to and existing see customers happy effort were the the really focus NRR bridging and XX that market see of to from the comes across improvements into all of XXX we really verticals the across those months gap in pieces all of XXX. into improvement the those We the that that

deliberate. that we we can No. sort hey that you Jim this It's sequentially. say, you pretty to something. So, you just Michael things something in let's continue these if that And add something better walked of is these can, I improve do not four We each you through. would get of, run got think

do We were so. XXX XXX discussion we at had at now so to And sustainable and that XXX, are is for but Absolutely. we we a the Does Compared is which normal number to which think XXX better this XXX? first said new think path we sustainable. we up think the Michael was us? improve we when at

example about as talk Prism. we innings we it should And number of the the two the And doesn't up. And for get many we LPx, we so let think you about multiproduct talk talk those to quarter defined they are And know. it to next We more to sight. still second it's we're you third or going in Those that now. going mature. -- the It push about is get a we're But are or still mean have it in and just and strategy the are third it to we game. makes there elements XXX in next just second there quarters. to how get mature, use continue the that in of innings MLx,

really good path feel we about So on the we're here.

be Clearwater Appreciate that. that cross-sell would JUMP there size just in the particular motion? applicable pairing client Thank in pairing Maybe to a you. with or pivoting in How commentary that office. for? I client office front surrounding back type the that is is specifically, powerful the saw release most And the JUMP the of

you. is just Look get just all JUMP, Yeah. quite Thank exceptional. about the at excited and Paris we partnership them with

winning better. JUMP's players this market organization. is much, larger larger much the French specifics. they about talk to ability of let's in So the compete market One part a deals against are more clearly in French because Clearly, they're

we And small I managers sell to and to Absolutely. accounting so and managers. back works not midsized do. could market clear system of we all have earlier increases what asset ability this that to portfolio is which and management something and the PMS just have meaningfully. now very North Michael it's Second, DAM able and the therefore front America for But the and in not in the asset OMS compete would been end-to-end

which which Either pointed exciting perhaps to is talking and most Clearwater have of Clearwater the asset to about office front one or is clients and our back we pair to one JUMP with front-office third the The modules it all the for were owner the to them. prospects, platform can modules one is already which take you the the then new platform. provide go who is the I

success a And had this in exciting. unit-linked all JUMP brings that capabilities fund we've half. So of finally, out successful with the first again, and been in That's also there. Europe we've in

So look that progress. there's I innings We early it it of could unfortunately we still do the think think in Yes, the is in innings JUMP. third really with -- what we think again is. still it's good second they're

Thank you both.

Thank you. Thanks, Michael.

Ader is MoffettNathanson. Jackson question next from with Our

Your now open. line is

Thanks taking questions. Great. our for

So the the why don't of the first kind with we of stick one actually line AI questioning.

itself layering is -- some it AI when customer becomes But said it's have? you products is already customer-facing. a that a that a the and I architecture use infrastructure about kind lent within you GPT different over of that and are of machine And yourself more of competitors have advantage reason cloud-based there kind that to your any advantage. think similar and on clear created is reason think it why maybe maybe an versus of might not learning top and being facing the Sandeep already it's competitors why thing this generative something your you pretty there and any that AI own you other

Yeah.

frankly up for question, there because did opens super which back. Look think you the I certainly Jackson, thank it not question. I year think a it's was about opportunities, So valid

of technologies that a core these ability don't Yes. AI to it the look one way, meaningfully do is of all you services? right? much So and of you our in nice the reconciliation, the have So the structured ability makes do that harder, client improve data onboarding right? should quality data to accessibility it If have data, to

just would applications. yes is new are specific facing data. those clients' say But what to asking a can I resounding answer I about it about the is there. you that think you're obviously is, client because think our And very

that So a we talk about generically that's more. degree. certain we about do specific interesting a let client's try to if little bit But portfolio. returns, returns we is just define Look what me to and can talk a can

shouldn't like generate that about what we they did reference do what with can come So they portfolio, looks based recommendations week yesterday on do. up portfolio insights should last specific ideas we client's month. client's And and specific and with did our and to can and what did they and they what last what

back. line different a we thinking we exciting have not think this is on does this that's were levels. that. about a – two But I is it Now year And why did of allow

dedicated and And look our And is a office significant game already versus initiatives different is mean four so is of which distinguish than the commitment for the to I these exciting game. very Both value there. different to saying between tried efficiency one are behind front oriented, us. I growing more revenue leadership I'm adding all a other. not is

waves AUM the Okay. here. I'm getting feedback of just have how you or and And realized what with gears base By to feeling about basically versus view to they maybe plus are relative how general going similarly, the would this guys major first switching customers like kind last year? increases anniversaries just curious then renewals how of past pricing drift first of are year we're just maybe anniversaries

new non-event Jim the Almost commercial the now. industry, frankly heard I don't days. of think a one. new the heard resistance can contracts comment numbers our XXX the don't There that doesn't I've here, it's the is tell I last think size So they're on over I model. think all should what I've I depend to XX, of – but on you on

And it's from so haven't way the know add business. we contrary. now those. back heard I anything the would push back or heard I heard to just I haven't Jim, of don't you to some clients. do

growth, to right process we think experience were when we win-win. aren't of weren't getting the through wanted clients remember I this right simulate – – were we a Now went right? through to that this kind this Jack, make we trying We normal always our

was we – this always much do we that going I idiot." – it's this think were it when more anniversary I through process these than "Jim this change. obviously, that the that think so of and sooner is last year process And kind continue we a automated as of me this evolutionary through you year you didn't Sandeep making to and – But why says kind this

No.

No. giving just a I'm – hug. He doesn't say I'm that. him

outcomes it had is we've hoped I what learned worked it work. would been think think has way good. the And the have we I

That’s right. great. you. Thank All Okay.

Thank you, Jackson.

with question Becker Blair. next from is William Our Dylan

now is line Your open.

there I industry well late the nice farmers? prioritizing jumped with questions, traction kind retention I that as customer to – like that And But domain some apologize JUMP's gain of of net that number a needs Hey, to or of here. some much again dollar maybe gentlemen. of of on a guess, kind number sales starting of function Jim segmentation the and of Sandeep, starting of repeating in guess really particular cross-sell in those seems guess expertise kind for Appreciate I verticals. anything how I recent is that's the particular shift hunter too of each the but

think you while up that in they Look ARR, I QX at I they the And about is revenue for muted and and But the to the thanks cross-sell in results look would much think obviously say or take onboard improve very is impact few beat the you to get they absolutely. line question these here revenue the the very then showing right? our So muted. Yes, the JUMP would deals that come quarters? don't go on to should the the profitability and right? a of on over line. just Because next out revenue sell results of I ascribe start

the about revenue to quickly. commentary doesn't all that of think have convert I won but JUMP deals the about necessarily we

ahead to it... Sorry can you Jim, add go

a think also in I we I we in the we're has engine go-to-market we're think respect have. as early And Sandeep we the that Prism these to think evolving so areas. LPx about bit – in with that innings mentioned the early innings

obviously I these do. to think reflect we're results we continue something should –

about results will as sales segmenting. these thinking become or we've time thing lean The discretely and sales we in so focus learned channels opportunities more to to better. we being further again, And and and the is segment continue

Got it.

to then just quickly Okay. of landscape. on touching competitive That’s And super helpful. kind the maybe

a kind You of of out internationally looking did as situations global opportunity your of build you seen if to off displacement of kind are any have kind here? Thanks. of that competitor that footprint any was wonder acquired. of own I commentary kind kind arise you've

very us. are these would to tricky we Europe things improved feel on the say has But the environment Yes, that comment in I has on. meaningfully for competitive just margin –

HX. so have And the and in say in just I that that little pipeline we bit reflects seen a build would

And so we that are transaction with announced. the really was happy

enough. Fair

guys. Thank you Okay.

Yes. leaning we to That helps. strong Overall, that the date that else competitive No those we have be position. there's network And multi-tenancy, security that. into master. between we most we we And think single up the to one everyone effect. a allows continue really see things -- think, have the to the has

you. Thank

Sachs. Our next question with is from Borges Goldman Gabriela

now line is Your open.

Gabriela. Hi. Congrats really and [ph] on strong This numbers. the quarter for is Kelly on

enjoyed AI expecting wrote impact really article me, you to the from in Gen First Sandeep, could on Forbes that see you're fintech. one

about in am Clearwater. I the curious those to generative that is just You accuracy like bit your address data doing talked AI. team a what issues at with issues

Yes.

and deal can't question for be XX% that. right, accounting obviously thank can't We with we So just the just about of e the you time. investment

these be And be right Officer, quality. the Subi almost approaches Sethi, she trying you Chief Client right time. of time. know has to very the she with first our And all have large background to as things all We in

be in the right. believe applications a we loop, the human AI Gen And while will the so for though, that I with talk about

loop yet or actually time let to don't up of they model of research, just one we potential what a course. when come that respond then a recall take and customer perform something individual So and time two. And expect and could Gen and that AI train helps and the up a go you to solution human the at about alternative pick the produce But one think quite alternatives clients alternative we in alternative to the with with Gen expect came transaction. AI to does, lot that

So in it because think concerns. data of the loop, we still accuracy is the human

isn't great, questions, improvement a directly. our get about can for we class If there time think XXX% now of XX%, do could could come the we of if But I respond a be you certain can have a XX% problems in it think hit class we and where would that model right. right in efficiency. thinking

more to human all rather than going eliminate so kind we just think approach of And about that we're interaction. -- function all

just Thank are in sense. me makes one That for how you. second relative the is to Yes. XXXX. the first just then bookings half trended And of year

you months? differences in seeing any forward-looking. lot international? then It the you're from talked in six great America past any a insights versus visibility North can You in And about got very bookings the you've the be business would

We any the change Sure. environment. overall don't see competitive in

margin, the Sandeep think mentioned environment just the on I As competitive has in Europe improved.

we're The deals of deals that months. excited aggressively the last product we pipeline, the deals helps. there. additional number six And in and call grown that what over our so the And would I has those offering pipeline really -- think by especially

when last it from seeing similar the it in we in that potentially And we've nicely or we're back do two always insurers. benefit closed announcing Aviva expect new the to go-live was better environment. dividends between seeing think, year on we think thought look we're I And balanced I same a in and year I logos. mega even we This base think the there. back really feel the we half way the Europe first

our opportunities feel about So really good we I there. think

did towards the systems reflects surprised our has rays That's just a And lot that we of movement think point Yes. do reflect I continues want are us. that work ray the just to which I'm that obviously, there we ours with think a that pipeline. that But the is technology leading and pipeline position. it our good does. -- in can provide to fact have out of legacy with growth and to we And companies, think I hoping that accelerate people do

again. congrats and you, Thank Great.

you so much. Thank

think -- there that's questions? are I more

from question Michael next Turrin Wells Fargo. with Our is

is line Your open. now

in. Hey, it's filling for David Turrin. for Thanks Michael Unger in me squeezing

me. in you've deeper but or particular add to appetite long curious too a I for acquisition ago, know made JUMP one wasn't Guys, Europe. geo, the tonight go Just on just additional comments products some your

to an perhaps So, do build Thanks. organically. harder the acquisition to that's appetite

Promoter Yeah. lots the of think to for provide simple. a point. and appetite good of to how there proof we that think do do point there's a The There's our you you. does there's it's absolutely JUMP with it as number to of it. tell I to We have having Look, good more Thank that things I a you value And can Net about clients And is quite value -- to if done Score. really work we be left just think a left but proof question. to is quickly more. be provided want do

good to So go. too bring capability way like will take long, that there doing is something have we develop to which a acquisition and an pivoting to sounds

beyond functionality. has understanding is, changed what three after pain -- here what help for changed? geographically. have must of is customer more what is, focus must investment It points help us one acquisition. So has make investment an One It that, accounting. just sort bar has we high not accounting, expand I'll has to JUMP, then changed the pretty a expand not a So much things. adjacent sharper but doing And point on us we have current What changed. expand

that's So thing. one

thing Second as because really are third can massive products potential ready is imperative, acquisition feel also And our helps a the is you cross-sell, we right? is, the globally. and the lead imagine NRR, to we one ability clear a from to that

been are been to about less functionality us us end-to-end being interesting a function. somewhat trying to using tentative think back, by now lead more able years entire might lead very in certain interesting And a so would can an provide have when that help in market have I platform, a industry acquisitions we three

are attitude about yeah, does little can but do. to change in those reflect we very similar So a before, the -- what it's it

Always appreciate Thank you. the Sandeep. detail,

so much. you Thank

is Schwartz question Brian next Oppenheimer. with Our from

now is line open. Your

Hi, Sandeep for question. and taking Jim. my Thank you

business how Sandeep, time of efficiency seeing level. heading on about high very the the in we at internally your here here market. environment you. macro question terms did us of the the Thank on better just you're same what's sales But It just and going Has you exciting It well spoke looks size one initiatives environment the the QX. half looks second the about how QX changed in that since year? all like last you're has even what Just in gave macro cycles, since view like did and buying pipeline. end three business just from thinking all the half in about patterns second months in ago? the

to you environment were not our Look this if At is you to worried much we Thank that think that some becoming become I like had going about time so for it's that thinking worse. worse. much in question. or sense point, our is talked the us January

We don't right also much expect now. improvement

just play when There may a three back from reasonably about So quo. were little bit it movement in how be worried out. of -- we economy assuming of status up is months the and we're different we may it down. But felt how we sort our felt planning,

feel confident a more about we lot So that.

new that sort the some have of mitigate commercial It's true also we model helps risks. of the us

our confidence planning. in that So of have increases also we the level

And so how We see think. improvement. much that's we just don't

been just across board you when have think point quite The feel the is, we the I only that other would make about stable. markets like AUM,

feel don't and that at where feel We about we improvement we the yet. conditions. that good any economic guidance doesn't and is. But all our so in -- market forecast point the see include our just this pretty look, And

all. you Thank

you. Thank Thank much. Yeah. you so

Our is next Kim Capital. question Loop from with Yun

now is line open. Your

is solid how of that One income, mix fixed mix me you. about And Great. Thank changing Thanks. how uplift? for alternative, guess talk well, just can another equities, you providing changed Congrats any I Hi. on types pricing the has quarter. question as asset investments? between,

Yeah.

nugget. teasing We me is MLx give little But like, how let So talked that. staying about broadly, on the and one mix we're you consistent.

mortgages. help So with of kind to that's

the $XXX billion today. for platform on looking at Just on opportunity have mortgage-related context we the of as our north that we and assets were platform sizing assets in

one just of So, little kind sliver. that's like

of As of and you types assets, and derivatives see things more of alternative sorts those more mortgages, and broadly. these products structured

We and that's doing why to for coverage the continue clients income to products structured fixed additional through. and MLx path we're to of provide LPx with accounting that flow asset down beyond see and that moving those trend assets. for And kind investment alternative

look try you at just the say to platform. would I if just overall And Yeah. that,

you. Thank

we're at time think or over. little I a

other any there questions Are please.

questions. more no are There

to the I'll So call back management. pass over the

good. Okay

I for look, which hope you to also a I Thank and Investor our see the want many you frankly. your just Xth plug to on for And to September thank in -- I you pardon coming Day, of interest do me, and all continued is up Xth, again. like company there. our September interest So

Good bye.

concludes That the call. conference