Shares of Clearwater Analytics Holdings, Inc. (CWAN) are soaring 5.12% in pre-market trading on Thursday, following the company's impressive first-quarter earnings report and raised full-year guidance.
The cloud-based investment accounting software provider reported Q1 adjusted earnings of $0.13 per diluted share, surpassing analyst expectations of $0.12. Revenue for the quarter ended March 31 came in at $126.9 million, up from $102.7 million a year earlier and beating the FactSet consensus estimate of $125.1 million.
Investors were particularly encouraged by Clearwater's raised outlook for 2025. The company significantly increased its full-year revenue guidance to a range of $720 million to $728 million, up from its previous forecast of $535.5 million to $542 million. This new guidance far exceeds analysts' expectations of $589.5 million.
Despite the strong results and outlook, Piper Sandler adjusted its price target on Clearwater Analytics, cutting it to $28 from $36. However, the firm maintained its Overweight rating on the stock, suggesting continued confidence in the company's long-term prospects.
The market's positive reaction to Clearwater's earnings report underscores investor optimism about the company's growth trajectory and its ability to exceed expectations in a challenging economic environment.
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