Clearwater Analytics (CWAN) 10-Q 4 Nov 22 2022 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Oct. 28, 2022
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Trading Symbol	CWAN
Entity Registrant Name	Clearwater Analytics Holdings, Inc.
Entity Central Index Key	0001866368
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity File Number	001-40838
Entity Tax Identification Number	87-1043711
Entity Address, Address Line One	777 W. Main Street
Entity Address, Address Line Two	Suite 900
Entity Address, City or Town	Boise
Entity Address, State or Province	ID
Entity Address, Postal Zip Code	83702
City Area Code	208
Local Phone Number	918-2400
Entity Interactive Data Current	Yes
Entity Incorporation, State or Country Code	DE
Document Quarterly Report	true
Document Transition Report	false
Title of 12(b) Security	Class A common stock, par value $0.001 per share
Security Exchange Name	NYSE
Entity Bankruptcy Proceedings, Reporting Current	false
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		59,226,257
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		1,654,530
Class C Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		47,377,587
Class D Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		130,083,755

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 288,523	$ 254,597
Short-term investments	3,000
Accounts receivable, net	65,241	50,190
Prepaid expenses and other current assets	16,382	16,551
Total current assets	373,146	321,338
Property and equipment, net	13,534	10,738
Operating lease right-of-use assets, net	21,402
Deferred contract costs, non-current	5,765	5,687
Debt issuance costs - line of credit	776	922
Other non-current assets	5,105	5,670
Total assets	419,728	344,355
Current liabilities:
Accounts payable	1,714	1,416
Accrued expenses and other current liabilities	25,745	27,032
Notes payable, current portion	2,750	2,750
Operating lease liability, current portion	5,343
Total current liabilities	35,552	31,198
Notes payable, less current maturities and unamortized debt issuance costs	49,158	51,157
Operating lease liability, less current portion	17,411
Tax receivable agreement liability	5,700
Other long-term liabilities	1,644	132
Total liabilities	109,465	82,487
Stockholders' Equity
Additional paid-in-capital	432,640	388,591
Accumulated other comprehensive loss	(1,880)	(34)
Accumulated Deficit	(184,648)	(191,926)
Total stockholders' equity attributable to Clearwater Analytics Holdings, Inc.	246,350	196,867
Non-controlling interests	63,913	65,001
Total stockholders' equity	310,263	261,868
Total liabilities and Stockholders' Equity	419,728	344,355
Class A
Stockholders' Equity
Common stock	59	48
Class B
Stockholders' Equity
Common stock	2	11
Class C
Stockholders' Equity
Common stock	47	47
Class D
Stockholders' Equity
Common stock	$ 130	$ 130

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Class A
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	1,500,000,000	1,500,000,000
Common stock, shares issued	59,199,868	47,948,888
Common stock, shares outstanding	59,199,868	47,948,888
Class B
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	1,662,802	11,151,110
Common stock, shares outstanding	1,662,802	11,151,110
Class C
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	47,377,587	47,377,587
Common stock, shares outstanding	47,377,587	47,377,587
Class D
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	130,083,755	130,083,755
Common stock, shares outstanding	130,083,755	130,083,755

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Revenue		$ 76,552	$ 64,489	$ 220,739	$ 182,259
Cost of revenue	[1]	22,720	17,785	64,811	47,683
Gross Profit, Total		53,832	46,704	155,928	134,576
Operating expenses:
Research and development	[1]	25,438	18,415	69,568	50,991
Sales and marketing	[1]	13,187	10,126	38,254	26,151
General and administrative	[1]	16,371	10,900	46,864	29,627
Total operating expenses		54,996	39,441	154,686	106,769
Income (loss) from operations		(1,164)	7,263	1,242	27,807
Interest (income) expense, net		(693)	8,302	139	25,261
Tax receivable agreement expense		2,600		5,700
Loss on debt extinguishment			(10,303)		(10,303)
Other income, net		(469)	(130)	(828)	(65)
Loss before provision for income taxes		(2,602)	(11,212)	(3,769)	(7,692)
Provision for income taxes		424	216	959	536
Net loss		(3,026)	(11,428)	(4,728)	(8,228)
Less: Net income (loss) attributable to non-controlling interests		(52)	(3,114)	277	86
Net loss attributable to Clearwater Analytics Holdings, Inc.		$ (2,974)	$ (8,314)	$ (5,005)	$ (8,314)
Net loss per share attributable to Class A and Class D common stockholders stock (Note 8) (1):
Basic	[2]	$ (0.02)	$ (0.05)	$ (0.03)	$ (0.05)
Diluted	[2]	$ (0.01)	$ (0.05)	$ (0.02)	$ (0.05)
Weighted average shares of Class A and Class D common stock outstanding:
Basic		187,824,531	177,449,844	184,026,378	177,449,844
Diluted		237,869,291	235,978,541	237,441,224	235,978,541
[1] Amounts include equity-based compensation as follows: Cost of revenue $ 2,594 $ 899 $ 7,281 $ 2,171 Operating expenses: Research and development 5,133 2,226 14,003 5,912 Sales and marketing 2,941 1,655 9,452 3,782 General and administrative 6,033 2,903 18,032 7,374 Total equity-based compensation expense $ 16,701 $ 7,683 $ 48,768 $ 19,239 Basic and diluted net loss per share of Class A and Class D common stock is applicable only for the periods after the IPO and related transactions (as defined in Note 1 to the Unaudited Condensed Consolidated Financial Statements). See Note 8 for the number of shares used in the computation of net loss per share of Class A and Class D common stock and the basis for the computation of net loss per share.

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Operations (unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Total equity-based compensation expense	$ 16,701	$ 7,683	$ 48,768	$ 19,239
Cost of revenue
Total equity-based compensation expense	2,594	899	7,281	2,171
Research and development
Total equity-based compensation expense	5,133	2,226	14,003	5,912
Sales and marketing
Total equity-based compensation expense	2,941	1,655	9,452	3,782
General and administrative
Total equity-based compensation expense	$ 6,033	$ 2,903	$ 18,032	$ 7,374

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Net loss	$ (3,026)	$ (11,428)	$ (4,728)	$ (8,228)
Other comprehensive loss, net of taxes:
Foreign currency translation adjustment	(1,100)	(127)	(2,362)	(111)
Comprehensive loss	(4,126)	(11,555)	(7,090)	(8,339)
Less: Comprehensive loss attributable to non-controlling interests	(284)	(3,233)	(239)	(17)
Comprehensive loss attributable to Clearwater Analytics Holdings, Inc.	$ (3,842)	$ (8,322)	$ (6,851)	$ (8,322)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Changes in Equity (Deficit) (unaudited) - USD ($) $ in Thousands	Total	Activity prior to the Transactions	Activity subsequent to the Transactions	IPO Effect of the Transactions	Members' Deficit CWAN Holdings, LLC	Members' Deficit CWAN Holdings, LLC Activity prior to the Transactions	Members' Deficit CWAN Holdings, LLC Effect of the Transactions	Additional Paid-In Capital	Additional Paid-In Capital Activity prior to the Transactions	Additional Paid-In Capital Effect of the Transactions	Additional Paid-In Capital Activity subsequent to the Transactions	Additional Paid-In Capital IPO Effect of the Transactions	Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) Activity prior to the Transactions	Accumulated Other Comprehensive Income (Loss) Effect of the Transactions	Accumulated Other Comprehensive Income (Loss) Activity subsequent to the Transactions	Accumulated Deficit	Accumulated Deficit Effect of the Transactions	Accumulated Deficit Activity subsequent to the Transactions	Non-controlling Interest	Non-controlling Interest Effect of the Transactions	Non-controlling Interest Activity subsequent to the Transactions	Common Stock Class A	Common Stock Class A Effect of the Transactions	Common Stock Class A IPO Effect of the Transactions	Common Stock Class B	Common Stock Class B Effect of the Transactions	Common Stock Class C	Common Stock Class C Effect of the Transactions	Common Stock Class D	Common Stock Class D Effect of the Transactions
Beginning Balance at Dec. 31, 2020	$ (344,608)				$ (245,806)			$ (98,860)					$ 58
Issuance of common units	1,560							1,560
Repurchase of common units	(626)							(626)
Options withheld for minimum tax obligations for net unit settlement	(587)							(587)
Equity-based compensation	4,865							4,865
Foreign currency translation adjustment	21												21
Net income (loss)	3,411				3,411
Ending Balance at Mar. 31, 2021	(335,964)				(242,395)			(93,648)					79
Beginning Balance at Dec. 31, 2020	(344,608)				(245,806)			(98,860)					58
Net income (loss)	(8,228)
Ending Balance at Sep. 30, 2021	242,387							373,314					(40)				$ (191,234)			$ 60,112			$ 47			$ 11		$ 47		$ 130
Ending balance, shares at Sep. 30, 2021																							47,366,089			11,151,110		47,377,587		130,083,755
Beginning Balance at Mar. 31, 2021	(335,964)				(242,395)			(93,648)					79
Exercise of options to purchase common stock	251							251
Equity-based compensation	6,691							6,691
Foreign currency translation adjustment	(5)												(5)
Net income (loss)	(211)				(211)
Ending Balance at Jun. 30, 2021	(329,238)				$ (242,606)			(86,706)					74
Issuance of common units				$ 577,087								$ 577,052													$ 35
Issuance of common units, shares																									34,500,000
Exercise of options to purchase common stock		$ 8							$ 8
Options withheld for minimum tax obligations for net unit settlement		(1,598)							(1,598)
Effect of organizational transactions, value							$ 242,977											$ (243,178)						$ 13			$ 11		$ 47		$ 130
Effect of organizational transactions, shares																								12,866,089			11,151,110		47,377,587		130,083,755
Allocation of equity to non-controlling interest										$ (122,813)					$ 11			$ 60,258			$ 62,545
Equity-based compensation		6,425	$ 1,258						$ 6,425		$ 946											$ 312
Foreign currency translation adjustment		(117)	(10)											$ (117)		$ (8)						(2)
Net income (loss)	(11,428)	$ (371)	$ (11,056)			$ (371)													$ (8,314)			$ (2,742)
Ending Balance at Sep. 30, 2021	242,387							373,314					(40)				(191,234)			60,112			$ 47			$ 11		$ 47		$ 130
Ending balance, shares at Sep. 30, 2021																							47,366,089			11,151,110		47,377,587		130,083,755
Beginning Balance at Dec. 31, 2021	261,868							388,591					(34)				(191,926)			65,001			$ 48			$ 11		$ 47		$ 130
Beginning balance, shares at Dec. 31, 2021																							47,948,888			11,151,110		47,377,587		130,083,755
Exercise of options to purchase common stock	5,613							4,226												1,387			$ 1
Exercise of options to purchase common stock, shares																							857,647
Equity-based compensation	16,028							12,067												3,960
Foreign currency translation adjustment	(300)												(226)							(74)
Net income (loss)	528																398			130
Accrued tax distributions payable to Continuing Equity Owners	(27)																			(27)
Effect of LLC unit exchanges, value																	8,348			(8,348)			$ 7			$ (7)
Effect of LLC unit exchanges, shares																							6,643,614			(6,643,614)
Ending Balance at Mar. 31, 2022	283,764							404,884					(260)				(183,180)			62,083			$ 55			$ 5		$ 47		$ 130
Ending balance, shares at Mar. 31, 2022																							55,450,149			4,507,496		47,377,587		130,083,755
Beginning Balance at Dec. 31, 2021	261,868							388,591					(34)				(191,926)			65,001			$ 48			$ 11		$ 47		$ 130
Beginning balance, shares at Dec. 31, 2021																							47,948,888			11,151,110		47,377,587		130,083,755
Net income (loss)	(4,728)
Ending Balance at Sep. 30, 2022	310,263							432,640					(1,880)				(184,648)			63,913			$ 59			$ 2		$ 47		$ 130
Ending balance, shares at Sep. 30, 2022																							59,199,868			1,662,802		47,377,587		130,083,755
Beginning Balance at Mar. 31, 2022	283,764							404,884					(260)				(183,180)			62,083			$ 55			$ 5		$ 47		$ 130
Beginning balance, shares at Mar. 31, 2022																							55,450,149			4,507,496		47,377,587		130,083,755
Exercise of options to purchase common stock	771							603												168
Exercise of options to purchase common stock, shares																							105,251
Restricted stock units released																							93,750
ESPP shares issued	2,401							1,877												523			$ 1
ESPP shares issued, shares																							200,220
Equity-based compensation	16,314							12,759												3,555
Foreign currency translation adjustment	(961)												(752)							(209)
Net income (loss)	(2,230)																(2,428)			198
Accrued tax distributions payable to Continuing Equity Owners	(834)																			(834)
Effect of LLC unit exchanges, value																	2,410			(2,410)			$ 2			$ (2)
Effect of LLC unit exchanges, shares																							1,810,711			(1,810,711)
Ending Balance at Jun. 30, 2022	299,225							420,123					(1,012)				(183,198)			63,074			$ 58			$ 3		$ 47		$ 130
Ending balance, shares at Jun. 30, 2022																							57,660,081			2,696,785		47,377,587		130,083,755
Exercise of options to purchase common stock	1,542							1,218												324
Exercise of options to purchase common stock, shares																							188,758
Restricted stock units released																							479,485
Shares withheld for tax obligations,share																							(162,439)
Shares withheld for tax obligations	(2,564)							(2,025)												(539)
Equity-based compensation	16,873							13,324												3,549
Foreign currency translation adjustment	(1,100)												(868)							(232)
Net income (loss)	(3,026)																(2,974)			(52)
Accrued tax distributions payable to Continuing Equity Owners	(687)																			(687)
Effect of LLC unit exchanges, value																	1,524			(1,524)			$ 1			$ (1)
Effect of LLC unit exchanges, shares																							1,033,983			(1,033,983)
Ending Balance at Sep. 30, 2022	$ 310,263							$ 432,640					$ (1,880)				$ (184,648)			$ 63,913			$ 59			$ 2		$ 47		$ 130
Ending balance, shares at Sep. 30, 2022																							59,199,868			1,662,802		47,377,587		130,083,755

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
OPERATING ACTIVITIES
Net loss	$ (4,728)	$ (8,228)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	3,499	2,204
Noncash operating lease cost	5,226
Equity-based compensation	48,768	19,239
Change in tax receivable agreement liability	5,700
Amortization of deferred contract acquisition costs	3,221	2,404
Amortization of debt issuance costs, included in interest expense	210	1,474
Deferred tax benefit	(590)
Debt extinguishment costs		10,303
Changes in operating assets and liabilities:
Accounts receivable, net	(15,051)	(16,117)
Prepaid expenses and other assets	1,618	(8,717)
Deferred commissions	(3,593)	(2,922)
Accounts payable	240	194
Accrued expenses and other liabilities	(4,673)	(8,893)
Net cash provided by (used in) operating activities	39,847	(9,059)
INVESTING ACTIVITIES
Purchases of property and equipment	(5,880)	(3,499)
Purchase of short-term investments	(3,000)
Net cash used in investing activities	(8,880)	(3,499)
FINANCING ACTIVITIES
Proceeds from issuance of common units		1,560
Proceeds from exercise of options	7,926	259
Minimum tax withholding paid on behalf of employees for net share/unit settlement	(2,564)	(2,185)
Repurchase of common units		(626)
Proceeds from employee stock purchase plan	2,401
Repayments of borrowings	(2,063)	(434,231)
Payments of costs associated with early repayment of debt		(2,029)
Proceeds from borrowings		55,000
Payment of debt issuance costs		(1,400)
Proceeds from initial public offering, net of underwriting discounts		582,188
Payment of costs associated with the IPO	(214)	(1,850)
Payment of tax distributions	(17)
Net cash provided by financing activities	5,469	196,686
Effect of exchange rate changes on cash and cash equivalents	(2,510)	(122)
Net increase in cash and cash equivalents during the period	33,926	184,006
Cash and cash equivalents, beginning of period	254,597	61,088
Cash and cash equivalents, end of period	288,523	245,094
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest	766	25,847
Cash paid for income taxes	1,425	67
NON-CASH INVESTING AND FINANCING ACTIVITIES
Purchase of property and equipment included in accounts payable and accrued expense	162	325
Direct costs incurred with the IPO included in other assets and accrued expenses		$ 3,251
Tax distributions to unitholders included in accrued expense	$ 1,646

Organization and Description of

Organization and Description of Business	9 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Description of Business	Note 1. Organization and Description of Business Clearwater Analytics Holdings, Inc. was incorporated as a Delaware corporation on May 18, 2021 , as a holding company for the purpose of facilitating the IPO and other related transactions in order to carry on the business of the Company. Prior to the IPO, all business operations were conducted through Carbon Analytics Holdings, LLC, which changed its name to CWAN Holdings, LLC (“CWAN Holdings”) in conn ection with the IPO. Clearwater provides a SaaS solution for automated investment data aggregation, reconciliation, accounting and reporting services to insurers, investment managers, corporations, institutional investors and government entities. Following the IPO, Clearwater Analytics Holdings, Inc.'s principal asset consists of ownership of common units in CWAN Holdings. As the sole managing member of CWAN Holdings, Clearwater Analytics Holdings, Inc. operates and controls all the business operations of Clearwater. Our corporate structure following the IPO, as described above, is commonly referred to as an “Up-C” structure. The Company headquarters are located in Boise, ID, and we operate in five offices throughout the U.S. and six offices internationally. Initial Public Offering On September 28, 2021, the Company completed its IPO, in which it sold 34,500,000 shares of Class A common stock (including shares issued pursuant to the exercise in full of the underwriters’ option to purchase additional shares) at a public offering price of $ 18.00 per share for net proceeds of $ 582.2 million, after deducting underwriting discounts of $ 38.8 million (but excluding other offering expenses of $ 5.3 million). The Company used proceeds from the IPO to (i) purchase 34,500,000 common units of CWAN Holdings ( “LLC interests”) ; (ii) repay approximately $ 437.4 million of outstanding borrowings under the Previous Credit Agreement including prepayment premiums and accrued interest; (iii) pay $ 5.3 million of expenses related to the IPO; with the remaining proceeds intended to be used for general corporate purposes. Transactions In connection with the IPO, the Company completed the following organizational transactions (the “Transactions”): • the amendment and restatement of the limited liability company agreement of CWAN Holdings to, among other things, appoint Clearwater Analytics Holdings, Inc. as the sole managing member of CWAN Holdings and provide certain exchange and redemption rights to direct or indirect holders of interests in CWAN Holdings and/or our Class B common Stock, Class C common Stock and/or Class D common stock immediately following consummation of the Transactions, including the Principal Equity Owners, and the Continuing Equity Owners; • the amendment and restatement of the certificate of incorporation of Clearwater Analytics Holdings, Inc. to create Class A, B, C and D common stock; • the mergers of Blocker Entities into Clearwater Analytics Holdings, Inc. and the issuance of Class A common stock, Class B common stock, Class C common stock, and Class D common stock to Blocker Shareholders and the Continuing Equity Owners. Blocker Entities refers to entities affiliated with certain of the Continuing Equity Owners, each of which was a direct or indirect owner of LLC Interests in CWAN Holdings prior to the Transactions and was taxable as a corporation for U.S. federal income tax purposes, and Blocker Shareholders refers to entities affiliated with certain of the Continuing Equity Owners, each of which was an owner of one or more of the Blocker Entities prior to the Transactions, which exchanged their interests in the Blocker Entities for shares of our Class A common stock, in the case of Continuing Equity Owners other than the Principal Equity Owners, and for shares of our Class D common stock, in the case of the Principal Equity Owners, in connection with the consummation of the Transactions; • the issue of 11,151,110 shares of Class B common stock to Continuing Equity Owners other than the Principal Equity Owners and 47,377,587 shares of Class C common stock to the Principal Equity Owners, on a one-to-one basis with the number of common units of CWAN Holdings. Holders of our Class B and Class C common stock, along with the holders of our Class A and Class D common stock have certain voting rights, but holders of our Class B and Class C common stock do not have an economic interest in the Company; • the issue of 130,083,755 shares of Class D common stock to the Principal Equity Owners, on a one-to-one basis , with the number of common units of CWAN Holdings. Holders of Class D common stock have certain voting rights and are entitled an economic interest in the Company; and • the execution of the Tax Receivable Agreement, by and among Clearwater Analytics Holdings, Inc., CWAN Holdings, LLC and the other parties thereto (Note 10). As of September 30, 2022, the Company owns 79.4 % of the interests in CWAN Holdings. Continuing Equity Owners which hold Class B and Class C common stock own the remaining 20.6 % o f the interests in CWAN Holdings. The attributes of the Company's classes of common stock are summarized in the following table: Class of Common Stock Votes per Share Economic Rights Class A common stock 1 Yes Class B common stock 1 No Class C common stock 10 No Class D common stock 10 Yes

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Note 2. Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the SEC and, in the opinion of management, reflect all normal recurring adjustments necessary for a fair presentation of results for the unaudited interim periods presented. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The results of operations for the interim period are not necessarily indicative of the results to be obtained for the full fiscal year. Principles of consolidation The condensed consolidated financial statements include the accounts of the Company and its directly and indirectly wholly-owned or controlled subsidiaries. As the Transactions are considered transactions between entities under common control, the financial statements for periods prior to the IPO and the Transactions have been adjusted to combine the previously separate entities for presentation purposes. All intercompany balances and transactions have been eliminated through consolidation. Clearwater Analytics Holdings, Inc. consolidated the financial results of CWAN Holdings as a Variable Interest Entity (“VIE”). Clearwater Analytics Holdings, Inc. owns the majority economic interest and has the power to control all the business and affairs of CWAN Holdings. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the condensed consolidated financial statements, as well as the reported amounts of revenue and expenses during the periods presented. Actual results could differ materially from those estimates. Items subject to estimates and assumptions include the useful lives and recoverability of long-lived assets, the average period of benefit associated with deferred contract costs, sales reserves, the incremental borrowing rate applied in lease accounting, accruals for sales tax liabilities, the fair value of equity awards, tax valuation allowance and probability of making payments under the TRA, among others. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the result of which forms the basis for making judgments about the carrying values of assets and liabilities, and measurement of revenues and expenses. To the extent there are material differences between these estimates, judgments, or assumptions and actual results, the Company’s condensed consolidated financial statements will be affected. Significant Accounting Policies The Company's significant accounting policies are discussed in Note 2 – Basis of Presentation and Summary of Significant Accounting Policies in the Annual Report. There have been no significant changes to these policies that have had a material impact on the Company's unaudited condensed consolidated financial statements and related notes during the three and nine months ended September 30, 2022, except as noted below. Short-term Investments We classify our investments with an original maturity of greater than three months, but less than one year, as short-term investments. Investments in debt securities that we have the positive intent and ability to hold until maturity are classified as held-to-maturity debt securities. Our held-to-maturity debt securities consist of short term certificates of deposit which mature in less than one year. Held-to-maturity debt investments are recorded at amortized cost, which approximates fair value, and realized gains or losses are reported in earnings. The Company does not hold any other short-term investments. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU No. 2016-02”). In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, which provides clarification to ASU 2016-02. These ASU's (collectively, the “new lease standard” ) requires lessees to recognize on the balance sheet the assets and liabilities for the assets and obligations created by those leases. The standard was effective for public companies for annual periods beginning after December 15, 2018, including interim periods therein. The Company is allowed to use the private company adoption timelines, and therefore the standard is effective for the Company for its annual period beginning January 1, 2022 , and interim periods therein. On January 1, 2022, the Company adopted ASU No. 2016-02, and its associated amendments using the modified retrospective transition method by applying the new standard to all leases existing at the date of initial application and not restating comparative periods. There was no cumulative-effect adjustment recorded to stockholders' equity upon adoption. The Company elected the package of practical expedients permitted under the transition guidance, which allowed the Company to carry forward its historical lease classification, assessment on whether a contract was or contains a lease, and initial direct costs for leases that existed prior to January 1, 2022. The Company also elected to combine its lease and non-lease components and not recognize right-of-use (“ROU”) assets and lease liabilities for leases with an initial term of 12 months or less. The Company did not elect to apply the hindsight practical expedient when determining lease term and assessing impairment of ROU assets . At the date of adoption, the Company derecognized a deferred rent liability of approximately $ 1.5 million, and recognized a $ 23.1 million ROU asset and $ 24.6 million lease liability based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases.

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 30, 2022
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Note 3. Revenue Recognition The Company is applying the optional exemption to not disclose transaction price allocated to the remaining performance obligations as the Company’s performance obligations are part of contracts that have an expected original duration of one year or less. Of the total revenue recognized for the three and nine months ended September 30, 2022, $ 0.1 million and $ 0.4 million was included in the deferred revenue balance as of December 31, 2021, respectively. Revenues recognized from performance obligations satisfied (or partially satisfied) in previous periods were not material. The following table presents the Company’s revenue disaggregated by geography, based on billing address of the customer (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 United States $ 65,420 $ 59,445 $ 189,307 $ 166,765 Rest of World 11,132 5,044 31,432 15,494 Total revenue $ 76,552 $ 64,489 $ 220,739 $ 182,259

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 4. Fair Value Measurements The following tables set forth the fair value of the Company’s financial assets measured at fair value as of September 30, 2022 and December 31, 2021 in accordance with the fair value hierarchy (in thousands): September 30, 2022 Level I Level II Level III Total Financial Assets: Cash and cash equivalents: Money market funds $ 284,873 $ — $ — $ 284,873 Short-term investments: Certificates of deposit — 3,000 — 3,000 Total assets measured at fair value $ 284,873 $ 3,000 $ — $ 287,873 December 31, 2021 Level I Level II Level III Total Financial Assets: Cash and cash equivalents: Money market funds $ 248,744 $ — $ — $ 248,744 Total assets measured at fair value $ 248,744 $ — $ — $ 248,744 During the nine months ended September 30, 2022 and year ended December 31, 2021, there were no transfers of assets or liabilities between Level 1, Level 2 and Level 3 of the fair value hierarchy.

Supplemental Consolidated Balan

Supplemental Consolidated Balance Sheet Information	9 Months Ended
	Sep. 30, 2022
Balance Sheet Related Disclosures [Abstract]
Supplemental Consolidated Balance Sheet Information	Note 5. Supplemental Consolidated Balance Sheet Information Accounts Receivable, net Accounts receivable, net consisted of the following (in thousands): September 30, December 31, 2022 2021 Unbilled accounts receivable $ 27,696 $ 27,086 Billed accounts receivable 37,640 23,227 Allowance for doubtful accounts and reserves ( 95 ) ( 123 ) Accounts receivable, net $ 65,241 $ 50,190 The majority of invoices included within the unbilled accounts receivable balance are issued within the first few days of the month directly following the period of service. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): September 30, December 31, 2022 2021 Prepaid expenses $ 10,233 $ 11,722 Deferred contract costs, current portion 3,867 3,573 Other current assets 2,282 1,256 Prepaid expense and other current assets $ 16,382 $ 16,551 Property and equipment, net Depreciation and amortization expense for the three months ended September 30, 2022 a nd 2021 was $ 1.4 million and $ 0.8 million, respectively, and for the nine months ended September 30, 2022 and 2021 was $ 3.5 million and $ 2.2 million, respectively. Accumulated depreciation and amortization as of September 30, 2022 and December 31, 2021 was $ 15.5 mil lion and $ 12.2 million, respectively. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): September 30, December 31, 2022 2021 Accrued bonus $ 6,652 $ 8,295 Accrued interest 424 9 Accrued benefits and retirement 4,866 4,368 Accrued vendor liabilities 4,819 4,756 Accrued commissions 2,217 2,350 Deferred revenue 1,293 795 Income tax payable 1,114 771 Accrued sales tax exposure 969 1,444 Tax distributions payable to Continuing Equity Owners 112 169 Deferred rent — 1,514 Other current liabilities 3,279 2,561 Accrued expenses and other liabilities $ 25,745 $ 27,032

Leases

Leases	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Leases	Note 6 . Leases The Company adopted ASC 842 as of January 1, 2022. The Company leases facilities under non-cancelable operating lease agreements with varying terms that range from one to 10 years . In addition, some of these leases have renewal options for up to five years . The Company determines if an arrangement contains a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, and operating lease liabilities on the Company's condensed consolidated balance sheets. The Company does no t have any finance leases. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company does not account for lease components (e.g., fixed payments including rent) separately from the non-lease components (e.g., common-area maintenance costs). Rent expense w as $ 1.0 mil lion and $ 2.7 million for the three and nine months ended September 30, 2021, respectively, which the Company recognized on a straight-line basis over the non-cancellable lease term. Future minimum lease payments at December 31, 2021 under the Company’s non-cancellable leases were as follows (in thousands): 2022 $ 3,927 2023 3,843 2024 3,649 2025 3,434 2026 3,007 Thereafter 809 Total minimum lease payments $ 18,669 Operating lease cost was $ 1.9 million and $ 5.2 million for the three and nine months ended September 30, 2022, respectively. Variable lease cost and short-term lease cost were immaterial during the three and nine months ended September 30, 2022. Future minimum lease payments at September 30, 2022 under the Company’s non-cancellable leases were as follows (in thousands) : 2022 (remaining three months) $ 1,602 2023 5,940 2024 5,555 2025 5,486 2026 4,839 Thereafter 1,190 Total future minimum lease payments 24,612 Less: Imputed interest ( 1,858 ) Present value of future minimum lease payments 22,754 Less: Current portion of operating lease liability ( 5,343 ) Operating lease liabilities - noncurrent $ 17,411 The following table presents supplemental information for the Company's non-cancellable operating leases for the nine months ended September 30, 2022 (in thousands, except for weighted average and percentage data): Weighted average remaining lease term 4.29 Weighted average discount rate 3.77 % Cash paid for amounts included in the measurement of lease liabilities $ 1,534 Noncash right-of-use assets obtained in exchange for operating lease obligations (1) $ 26,027 (1) Amount includes (i) $ 23.1 million related to the adoption of ASC 842 for existing operating leases on January 1, 2022, (ii) $ 3.5 million related to the Company entering into new non-cancellable operating lease agreements during 2022, and (iii) partially offset by a noncash reduction of $ 0.6 million related to the remeasurement of the existing Noida, India lease due to a change in the lease term of the agreement.

Non-controlling Interest

Non-controlling Interest	9 Months Ended
	Sep. 30, 2022
Noncontrolling Interest [Abstract]
Non-controlling Interest	Note 7 . Non-controlling Interest In connection with the Transactions, the Company became the sole managing member of CWAN Holdings, and has the sole voting interest in, and control of the management of, CWAN Holdings. As a result, the Company consolidates the financial results of CWAN Holdings. The non-controlling interest on our condensed consolidated balance sheet relates to the interests of CWAN Holdings held by the Continuing Equity Owners. The ownership of the LLC interests is summarized as follows: September 30, 2022 December 31, 2021 Shares Ownership % Shares Ownership % Clearwater Analytics Holdings, Inc. interest in CWAN Holdings 189,283,623 79.4 % 178,032,643 75.3 % Continuing Equity Owners' interest in CWAN Holdings 49,040,389 20.6 % 58,528,697 24.7 % 238,324,012 100.0 % 236,561,340 100.0 %

Loss Per Share

Loss Per Share	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Loss Per Share	Note 8 . Loss Per Share The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted net loss per share of Class A and Class D common stock for the periods following the Transactions (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Numerator: Net loss $ ( 3,026 ) $ ( 11,428 ) $ ( 4,728 ) $ ( 8,228 ) Less: Net income (loss) attributable to CWAN Holdings prior to the Transactions — ( 371 ) — 2,829 Less: Net income (loss) attributable to non-controlling interests ( 52 ) ( 2,742 ) 277 ( 2,742 ) Net loss attributable to Clearwater Analytics Holdings, Inc. - basic ( 2,974 ) ( 8,314 ) ( 5,005 ) ( 8,314 ) Reallocation of net income (loss) attributable to non-controlling interests from the assumed exchange of Class B and Class C stock for Class A and Class D stock ( 52 ) ( 2,742 ) 277 ( 2,742 ) Net loss attributable to Clearwater Analytics Holdings, Inc. - diluted $ ( 3,026 ) $ ( 11,056 ) $ ( 4,728 ) $ ( 11,056 ) The following tables sets forth the computation of basic and diluted net loss per share of Class A and Class D common stock (in thousands, except share amounts and per share amounts): Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Class A Class D Class A Class D Basic net loss attributable to Class A and Class D common stockholders Numerator: Allocation of net loss attributable to Clearwater Analytics, Inc. $ ( 914 ) $ ( 2,060 ) $ ( 1,467 ) $ ( 3,538 ) Denominator: Weighted average number of shares of Class A and Class D common stock outstanding - basic 57,740,776 130,083,755 53,942,623 130,083,755 Basic net loss per share attributable to Class A and Class D common stockholders $ ( 0.02 ) $ ( 0.02 ) $ ( 0.03 ) $ ( 0.03 ) Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Class A Class D Class A Class D Diluted net loss attributable to Class A and Class D common stockholders Numerator: Undistributed loss for basic computation $ ( 914 ) $ ( 2,060 ) $ ( 1,467 ) $ ( 3,538 ) Reallocation of earnings as a result of conversion of Class B to Class A shares and conversion Class C to Class D shares 146 ( 198 ) 273 4 Reallocation of earnings as a result of conversion of Class D to Class A shares ( 2,258 ) — ( 3,534 ) — Allocation of undistributed loss $ ( 3,026 ) $ ( 2,258 ) $ ( 4,728 ) $ ( 3,534 ) Denominator: Weighted average number of shares of Class A and Class D common stock outstanding - basic 57,740,776 130,083,755 53,942,623 130,083,755 Add: weighted-average effect of dilutive securities exchangeable for Class A common stock: Conversion of Class B stock to Class A stock, and conversion of Class C stock to Class D stock 2,667,173 47,377,587 6,037,259 47,377,587 Conversion of Class D to Class A common shares outstanding 177,461,342 — 177,461,342 — Weighted average number of shares of Class A and Class D common stock outstanding - diluted 237,869,291 177,461,342 237,441,224 177,461,342 Diluted net loss per share attributable to Class A and Class D common stockholders $ ( 0.01 ) $ ( 0.01 ) $ ( 0.02 ) $ ( 0.02 ) Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Class A Class D Class A Class D Basic net loss attributable to Class A and Class D common stockholders Numerator: Allocation of net loss attributable to Clearwater Analytics, Inc. $ ( 2,219 ) $ ( 6,095 ) $ ( 2,219 ) $ ( 6,095 ) Denominator: Weighted average number of shares of Class A and Class D common stock outstanding - basic (1) 47,366,089 130,083,755 47,366,089 130,083,755 Basic net loss per share attributable to Class and Class D common stockholders $ ( 0.05 ) $ ( 0.05 ) $ ( 0.05 ) $ ( 0.05 ) (1) Weighted average number of shares of Class A and Class D common stock outstanding represents only the period from September 24, 2021 to September 30, 2021, which represents the period wherein we had outstanding Class A and Class D common stock. Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Class A Class D Class A Class D Diluted net loss attributable to Class A and Class D common stockholders Numerator: Undistributed loss for basic computation $ ( 2,219 ) $ ( 6,095 ) $ ( 2,219 ) $ ( 6,095 ) Reallocation of earnings as a result of conversion of Class B to Class A shares and conversion Class C to Class D shares ( 522 ) ( 2,219 ) ( 522 ) ( 2,219 ) Reallocation of earnings as a result of conversion of Class D to Class A shares ( 8,314 ) — ( 8,314 ) — Allocation of undistributed loss $ ( 11,055 ) $ ( 8,314 ) $ ( 11,055 ) $ ( 8,314 ) Denominator: Weighted average number of shares of Class A and Class D common stock outstanding - basic 47,366,089 130,083,755 47,366,089 130,083,755 Add: weighted-average effect of dilutive securities exchangeable for Class A common stock: Conversion of Class B stock to Class A stock, and conversion of Class C stock to Class D stock 11,151,110 47,377,587 11,151,110 47,377,587 Conversion of Class D to Class A common shares outstanding 177,461,342 — 177,461,342 — Weighted average number of shares of Class A and Class D common stock outstanding - diluted 235,978,541 177,461,342 235,978,541 177,461,342 Diluted net loss per share attributable to Class A and Class D common stockholders $ ( 0.05 ) $ ( 0.05 ) $ ( 0.05 ) $ ( 0.05 ) Shares of the Company's Class B and Class C common stock do not participate in the earnings or losses of Clearwater Analytics Holdings, Inc. and are therefore not participating securities. As such, separate presentation of basic and diluted earnings per share of Class B and Class C common stock under the two-class method has not been presented. The following weighted-average potentially dilutive securities were evaluated under the treasury stock method for potentially dilutive effects and have been excluded from diluted net loss per share in the periods presented due to their anti-dilutive effect: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Stock options of Clearwater Analytics Holdings, Inc. 10,163,645 13,041,159 10,939,998 13,041,159 RSUs of Clearwater Analytics Holdings, Inc. 713,091 61,845 1,044,382 61,845 Employee stock purchase plans 11,536 — 7,187 — Total 10,888,272 13,103,004 11,991,567 13,103,004

Equity-Based Compensation

Equity-Based Compensation	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Equity-Based Compensation	Note 9 . Equity-Based Compensation In September 2021, the Board of Directors of the Company (the “Board”) adopted the Clearwater Analytics Holdings, Inc. 2021 Omnibus Incentive Plan (the “2021 Plan”), pursuant to which employees, consultants and directors of our Company and our affiliates performing services for us, including our executive officers, are eligible to receive awards. The 2021 Plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), bonus stock, dividend equivalents, other stock-based awards, substitute awards, annual incentive awards and performance awards intended to align the interests of participants with those of our shareholders. A total of 57,197,804 shares of common stock are authorized for issuance under the 2021 Plan. In connection with the approval of the 2021 Plan, the 2017 Equity Incentive Plan (the “2017 Plan”) was terminated and all outstanding stock options and RSUs were transferred to the 2021 Plan. Options The following table summarizes the stock option activity for the nine months ended September 30, 2022 (in thousands, except per share data): Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Balance - December 31, 2021 22,315,171 $ 8.52 Granted 43,986 18.19 Exercised ( 1,151,656 ) 6.88 Forfeited ( 941,296 ) 10.48 Balance - September 30, 2022 20,266,205 $ 8.54 7.57 $ 169,187 Options vested - September 30, 2022 10,678,809 $ 6.78 $ 107,180 The weighted-average grant-date fair value of stock options granted during the nine months ended September 30, 2022 was $ 7.74 p er share. The aggregate intrinsic value as of September 30, 2022 disclosed in the above table is based on the difference between the exercise price of the stock option and the closing stock price on the NYSE on September 30, 2022. As of September 30, 2022, the total unrecognized compensation expense related to unvested options was $ 51.4 m illion, which is expected to be recognized over a weighted average period of 2.3 years. RSUs During June 2021, the Company began to grant RSUs to employees. The summary of RSU activity for the nine months ended September 30, 2022 is as follows (in thousands, except per share data): Units Activity Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Unvested units as of December 31, 2021 6,070,668 $ — Granted 1,426,336 19.21 Released ( 573,235 ) — Cancelled ( 514,121 ) — Unvested units as of September 30, 2022 6,409,648 $ 107,618 The aggregate intrinsic value disclosed in the above table is based on the closing stock price on the NYSE on September 30, 2022. As of September 30, 2022, there wa s $ 88.5 mi ll ion of unrecognized equity-based compensation expense related to RSUs, which is expected to be recognized over a weighted average period of 2.9 years. Determination of Fair Value The Company estimated the fair value of each stock option awarded on the date of grant using the Black-Scholes option-pricing model utilizing the assumptions noted below: Fair Value of Units – prior to the IPO, the fair value of the common stock underlying the equity-based awards was determined by the Company’s Board of Directors, with input from management and third-party valuations. Subsequent to the IPO, the fair value of the common stock underlying equity-awards was determined using the closing price on the date of the award being granted. Expected Term – the expected term represents the period that the awards are expected to be outstanding. The Company issues “plain vanilla,” awards and the Company determines the expected term using the simplified method. The simplified method deems the term to be the average of the time-to-vesting and the contractual life of the equity-based awards. Expected Volatility – the stock price volatility is estimated based on the volatility of a set of publicly traded comparable companies with a look back period consistent with the expected life. Risk-Free Interest Rate – the risk-free interest rate is calculated using the average of the published interest rates of U.S. Treasury zero-coupon issues with maturities that approximate the expected term of the equity-based awards. Dividend Rate – the dividend yield assumption is zero . Although the Company made a special one-time dividend in conjunction with the November 2020 recapitalization transaction, the Company has no history of making regular dividends, nor plans to make future dividend payments. The following assumptions were used to calculate the fair value of options granted to employees on the date of grant using the Black-Scholes option-pricing model: Nine Months Ended September 30, 2022 2021 Weighted-average grant date fair value per option $ 7.74 $ 4.63 Fair value of units $ 17.72 - $ 18.68 $ 12.40 - $ 23.89 Expected term (in years) 5.50 6.00 - 6.25 Expected volatility 44 % 40 % - 42 % Risk-free interest rates 1.8 % - 2.0 % 0.6 % - 1.3 % In addition to the Black-Scholes assumptions discussed immediately above, forfeitures may also have a significant impact on the related equity-based compensation. The forfeiture of options and RSUs is recognized as forfeitures occur . In the period subsequent to the IPO, the Company estimated the fair value of each RSU awarded using the closing price on the date of the award being granted. Employee Stock Purchase Plan In September 2021, the Board adopted the Clearwater Analytics Holdings, Inc. 2021 Employee Stock Purchase Plan (“ESPP”). As of January 1, 2022, a total of 5,837,791 shares of Class A common stock were available for issuance under the ESPP. The offering periods are scheduled to start on June 1 and December 1 of each year. Eligible employees may purchase the Company's common stock through payroll deductions at a price equal to 85 % of the lower of the fair market values of the stock as of the beginning or the end of six-month offering periods. An employee's payroll deductions under the ESPP are limited to 10 % of the employee's compensation and an employee may not purchase more than $ 25,000 of stock during any calendar year in which the employee’s option to purchase stock under the ESPP is outstanding at any time. On May 31, 2022, a total of 200,220 shares were issued to employees for the offering period ended May 31, 2022 . As of September 30, 2022, total unrecognized equity-based compensation costs related to ESPP wer e $ 0.3 million, which is expected to be recognized over the remaining current offering period ending November 30, 2022. ESPP payroll contributions accrued at September 30, 2022 totaled $ 1.4 million and are included within accrued expenses in the consolidated balance sheets. Employee payroll contributions used to purchase shares under the ESPP will be reclassified to stockholders' equity at the end of the offering period.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Note 10. Income Taxes As a result of the IPO, Clearwater Analytics Holdings, Inc. owns a portion of CWAN Holdings, which contains all operations of the business and is treated as a partnership for U.S. federal and most applicable state and local income tax purposes. As a partnership, CWAN Holdings is generally not subject to U.S. federal, state, and local income taxes. Any taxable income or loss generated by CWAN Holdings is passed through to and included in the taxable income or loss of its members in accordance with the terms of the operating agreement of CWAN Holdings. Before the IPO, the majority of CWAN Holdings’ income was passed through to its members and nontaxable to the entity. CWAN Holdings’ international wholly-owned subsidiaries are subject to taxes in foreign jurisdictions . Clearwater Analytics Holdings, Inc. is taxed as a corporation and pays corporate federal, state, and local taxes on income allocated to it from CWAN Holdings based on Clearwater Analytics Holdings, Inc.’s economic interest held in CWAN Holdings. While the Company consolidates CWAN Holdings for financial reporting purposes, the Company will not be taxed on the earnings attributed to the non-controlling interests. As a result, the income tax burden on the earnings taxed to the non-controlling interests is not reported by the Company in its condensed consolidated financial statements. Our tax provision for interim periods is determined using an estimated annual effective tax rate, adjusted for discrete items arising in the applicable quarter. In each quarter, we update the estimated annual effective tax rate and make a year-to-date adjustment to the provision. The estimated annual effective tax rate may be subject to significant volatility due to several factors, including our ability to accurately predict the proportion of our pretax income in multiple jurisdictions, certain book-tax differences, and exchanges from non-controlling interests. The following table provides details of the provision for income taxes: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Loss before provision for income taxes $ ( 2,602 ) $ ( 11,212 ) $ ( 3,769 ) $ ( 7,692 ) Provision for income taxes 424 216 959 536 Effective tax rate ( 16.3 %) ( 1.9 %) ( 25.4 %) ( 7.0 %) For the three and nine months ended September 30, 2022, the Company’s effective tax rate was different than the statutory rate primarily because of foreign taxes, equity-based compensation and the valuation allowance on U.S. deferred tax assets. In addition, the Company is not liable for income taxes on the portion of CWAN Holdings’ earnings that are attributable to non-controlling interests. For the three and nine months ended September 30, 2021, the Company’s effective tax rate was different than the statutory rate primarily because of foreign taxes and the valuation allowance on U.S. deferred tax assets. In addition, the Company is not liable for income taxes on the portion of CWAN Holdings’ earnings that are attributable to non-controlling interests. The Company regularly monitors its uncertain tax positions, and as of September 30, 2022, there were no material unrecognized tax benefits that, if realized, would affect the estimated annual effective tax rate, nor do we expect any significant changes within the next 12 months. We recognize deferred tax assets to the extent that we believe that these assets are more likely than not to be realized. The realization of tax benefits of net deferred tax assets is dependent upon future levels of taxable income, of an appropriate character, in the periods the items are expected to be deductible or taxable. Based on the available objective evidence as of September 30, 2022, we believe that it is more likely than not that the tax benefits of the U.S. losses incurred may not be realized. Accordingly, we have recorded a full valuation allowance against the tax benefits of the U.S. losses incurred. We intend to maintain the full valuation allowance on the U.S. net deferred tax assets until sufficient positive evidence exists to support a reversal of, or decrease in, the valuation allowance. On March 16, 2022, Idaho enacted House Bill 563 that amended portions of relevant tax laws. Due to our valuation allowance in the U.S., this legislation did not have a significant impact on the provision for income taxes for the three and nine months ended September 30, 2022. However, we expect our blended state tax rate to decrease due to the new law. On August 9, 2022, the Creating Helpful Incentives to Produce Semiconductors Act (“CHIPS Act”) was passed into law and amended portions of relevant tax laws. The CHIPS Act did not have a significant impact on the provision for income taxes for the three and nine months ended September 30, 2022. We do not expect this legislation to materially affect us. On August 16, 2022, the Inflation Reduction Act was passed into law and amended portions of relevant tax laws. The Inflation Reduction Act did not have a significant impact on the provision for income taxes for the three and nine months ended September 30, 2022. We do not expect this legislation to materially affect us. Tax Receivable Agreement Liability Pursuant to our election under Section 754 of the Internal Revenue Code (the “Code”), we expect to obtain an increase in our share of the tax basis in the net assets of CWAN Holdings when its units are redeemed or exchanged. We intend to treat any redemptions and exchanges of CWAN Holdings units as direct purchases of the units for U.S. federal income tax purposes. These increases in tax basis may reduce the amounts that we would otherwise pay in the future to various tax authorities. They may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent the tax basis is allocated to those capital assets. In connection with the IPO and related transactions, we entered into a TRA that provides for the payment by us of 85 % of the amount of any tax benefits that we actually realize, or in some cases are deemed to realize, as a result of (i) increases in our share of the tax basis in the net assets of CWAN Holdings resulting from any redemptions or exchanges of CWAN Holdings units, (ii) tax basis increases attributable to payments made under the TRA, and (iii) deductions attributable to imputed interest and TRA bonus payments pursuant to the TRA (the “TRA Payments”). We expect to benefit from the remaining 15 % of any tax benefits that we may actually realize. The TRA Payments are not conditioned upon any continued ownership interest in CWAN Holdings or the Company. The rights of each member of CWAN Holdings, that is a party to the TRA, are assignable to transferees of their respective CWAN Holdings units. The estimation of a liability under the TRA is, by its nature, imprecise and subject to significant assumptions regarding a number of factors, including (but not limited to) the amount and timing of taxable income generated by the Company each year as well as the tax rate then applicable. The future tax benefits related to ownership exchanges as of September 30, 2022 are estimated to be $ 410 million, of which $ 348 million is estimated to be the associated TRA liability. As noted above, the Company evaluated the realizability of its U.S. deferred tax assets and has recorded a full valuation against those benefits. As a result, the Company determined that it is not probable that payments will be made to TRA holders for these future tax benefits, and as such no TRA liability related to future years has been recorded as of September 30, 2022. We are projecting taxable income for the current year and have recorded a TRA liability of $ 5.7 million as of September 30, 2022. There are many assumptions and considerations that impact our taxable income position in the current year, some of which are out of our direct control. As such, the estimate of our taxable income position (and thus, the TRA liability recognized) for the current year could change significantly. As non-controlling interest holders exercise their right to exchange their units in CWAN Holdings, a TRA liability may be recorded based on 85 % of the estimated future tax benefits that the Company may realize as a result of increases in the tax basis of CWAN Holdings. The amount of the increase in the tax basis, the related estimated tax benefits, and the related TRA liability to be recorded will depend (among other things) on the price of the Company’s Class A stock at the time of the relevant redemption or exchange.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 11. Commitments and Contingencies On September 29, 2022, we announced our entry into a binding put option and exclusivity agreement that will lead to the acquisition of JUMP Technology, a privately held developer of an innovative, modular, technology platform that is dedicated to the investment management industry spanning investment managers, hedge funds, private banks, family offices, insurers, and institutional investors. We believe that this acquisition will expand our capabilities in investment management and operations with a complete front-to-back end solution. We will purchase JUMP Technology pursuant to the terms of a customary French put and exclusivity agreement for € 75 million. Additionally, Employees will receive up to 3.8 million restricted stock units in the Company to be earned over four years from their grant date. The acquisition will add 100 employees serving 70 customers across Europe. The transaction is expected to close in the fourth quarter of 2022, subject to completion of French regulatory requirements and other closing conditions.

Transactions with Related Parti

Transactions with Related Parties	9 Months Ended
	Sep. 30, 2022
Related Party Transactions [Abstract]
Transactions with Related Parties	Note 12. Transactions with Related Parties During January 2021, the Company paid $ 9.6 million in relation to management fees to Principal Equity Owners which is recorded as prepaid management fees within prepaid expenses and other current assets and non-current assets. The prepaid management fees are being amortized over four years . In the three months ended September 30, 2022 and 2021, the Company recognized a management fee to Principal Equity Owners of $ 0.6 million and $ 0.6 million, respectively. In the nine months ended September 30, 2022 and 2021, the Company recognized a management fee to Principal Equity Owners of $ 1.8 million and $ 1.7 million, respectively. In connection with Marcus Ryu not standing for re-election to the Company’s board of directors at its annual meeting in June 2022, to retain Mr. Ryu’s valuable insights, in April 2022 we entered into an advisory agreement with Mr. Ryu. Pursuant to this agreement, Mr. Ryu will serve as a senior advisor to the Company with respect to our go-to-market strategy in the insurance sector for a period of 18 months following the 2022 annual meeting. In consideration for Mr. Ryu’s service as a senior advisor, the options to purchase our Class A shares already owned by Mr. Ryu were amended to provide for a half-yearly vesting period following the next annual vesting period of his options.

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the SEC and, in the opinion of management, reflect all normal recurring adjustments necessary for a fair presentation of results for the unaudited interim periods presented. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The results of operations for the interim period are not necessarily indicative of the results to be obtained for the full fiscal year.
Principles of consolidation	Principles of consolidation The condensed consolidated financial statements include the accounts of the Company and its directly and indirectly wholly-owned or controlled subsidiaries. As the Transactions are considered transactions between entities under common control, the financial statements for periods prior to the IPO and the Transactions have been adjusted to combine the previously separate entities for presentation purposes. All intercompany balances and transactions have been eliminated through consolidation. Clearwater Analytics Holdings, Inc. consolidated the financial results of CWAN Holdings as a Variable Interest Entity (“VIE”). Clearwater Analytics Holdings, Inc. owns the majority economic interest and has the power to control all the business and affairs of CWAN Holdings.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the condensed consolidated financial statements, as well as the reported amounts of revenue and expenses during the periods presented. Actual results could differ materially from those estimates. Items subject to estimates and assumptions include the useful lives and recoverability of long-lived assets, the average period of benefit associated with deferred contract costs, sales reserves, the incremental borrowing rate applied in lease accounting, accruals for sales tax liabilities, the fair value of equity awards, tax valuation allowance and probability of making payments under the TRA, among others. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the result of which forms the basis for making judgments about the carrying values of assets and liabilities, and measurement of revenues and expenses. To the extent there are material differences between these estimates, judgments, or assumptions and actual results, the Company’s condensed consolidated financial statements will be affected.
Significant Accounting Policies	Significant Accounting Policies The Company's significant accounting policies are discussed in Note 2 – Basis of Presentation and Summary of Significant Accounting Policies in the Annual Report. There have been no significant changes to these policies that have had a material impact on the Company's unaudited condensed consolidated financial statements and related notes during the three and nine months ended September 30, 2022, except as noted below.
Short-term Investments	Short-term Investments We classify our investments with an original maturity of greater than three months, but less than one year, as short-term investments. Investments in debt securities that we have the positive intent and ability to hold until maturity are classified as held-to-maturity debt securities. Our held-to-maturity debt securities consist of short term certificates of deposit which mature in less than one year. Held-to-maturity debt investments are recorded at amortized cost, which approximates fair value, and realized gains or losses are reported in earnings. The Company does not hold any other short-term investments.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU No. 2016-02”). In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, which provides clarification to ASU 2016-02. These ASU's (collectively, the “new lease standard” ) requires lessees to recognize on the balance sheet the assets and liabilities for the assets and obligations created by those leases. The standard was effective for public companies for annual periods beginning after December 15, 2018, including interim periods therein. The Company is allowed to use the private company adoption timelines, and therefore the standard is effective for the Company for its annual period beginning January 1, 2022 , and interim periods therein. On January 1, 2022, the Company adopted ASU No. 2016-02, and its associated amendments using the modified retrospective transition method by applying the new standard to all leases existing at the date of initial application and not restating comparative periods. There was no cumulative-effect adjustment recorded to stockholders' equity upon adoption. The Company elected the package of practical expedients permitted under the transition guidance, which allowed the Company to carry forward its historical lease classification, assessment on whether a contract was or contains a lease, and initial direct costs for leases that existed prior to January 1, 2022. The Company also elected to combine its lease and non-lease components and not recognize right-of-use (“ROU”) assets and lease liabilities for leases with an initial term of 12 months or less. The Company did not elect to apply the hindsight practical expedient when determining lease term and assessing impairment of ROU assets . At the date of adoption, the Company derecognized a deferred rent liability of approximately $ 1.5 million, and recognized a $ 23.1 million ROU asset and $ 24.6 million lease liability based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases.

Organization and Description _2

Organization and Description of Business (Tables)	9 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Classes of Common Stock	The attributes of the Company's classes of common stock are summarized in the following table: Class of Common Stock Votes per Share Economic Rights Class A common stock 1 Yes Class B common stock 1 No Class C common stock 10 No Class D common stock 10 Yes

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Sep. 30, 2022
Table Text Block [Abstract]
Summary of Revenue Disaggregated by Geography	The following table presents the Company’s revenue disaggregated by geography, based on billing address of the customer (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 United States $ 65,420 $ 59,445 $ 189,307 $ 166,765 Rest of World 11,132 5,044 31,432 15,494 Total revenue $ 76,552 $ 64,489 $ 220,739 $ 182,259

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Summary of Financial Assets Measured at Fair Value	The following tables set forth the fair value of the Company’s financial assets measured at fair value as of September 30, 2022 and December 31, 2021 in accordance with the fair value hierarchy (in thousands): September 30, 2022 Level I Level II Level III Total Financial Assets: Cash and cash equivalents: Money market funds $ 284,873 $ — $ — $ 284,873 Short-term investments: Certificates of deposit — 3,000 — 3,000 Total assets measured at fair value $ 284,873 $ 3,000 $ — $ 287,873 December 31, 2021 Level I Level II Level III Total Financial Assets: Cash and cash equivalents: Money market funds $ 248,744 $ — $ — $ 248,744 Total assets measured at fair value $ 248,744 $ — $ — $ 248,744

Supplemental Consolidated Bal_2

Supplemental Consolidated Balance Sheet Information (Tables)	9 Months Ended
	Sep. 30, 2022
Balance Sheet Related Disclosures [Abstract]
Schedule of Accounts Receivable, Net	Accounts receivable, net consisted of the following (in thousands): September 30, December 31, 2022 2021 Unbilled accounts receivable $ 27,696 $ 27,086 Billed accounts receivable 37,640 23,227 Allowance for doubtful accounts and reserves ( 95 ) ( 123 ) Accounts receivable, net $ 65,241 $ 50,190
Schedule of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consisted of the following (in thousands): September 30, December 31, 2022 2021 Prepaid expenses $ 10,233 $ 11,722 Deferred contract costs, current portion 3,867 3,573 Other current assets 2,282 1,256 Prepaid expense and other current assets $ 16,382 $ 16,551
Schedule of Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities consisted of the following (in thousands): September 30, December 31, 2022 2021 Accrued bonus $ 6,652 $ 8,295 Accrued interest 424 9 Accrued benefits and retirement 4,866 4,368 Accrued vendor liabilities 4,819 4,756 Accrued commissions 2,217 2,350 Deferred revenue 1,293 795 Income tax payable 1,114 771 Accrued sales tax exposure 969 1,444 Tax distributions payable to Continuing Equity Owners 112 169 Deferred rent — 1,514 Other current liabilities 3,279 2,561 Accrued expenses and other liabilities $ 25,745 $ 27,032

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Schedule of Future Minimum Lease Payments under Non-cancellable Leases	Future minimum lease payments at December 31, 2021 under the Company’s non-cancellable leases were as follows (in thousands): 2022 $ 3,927 2023 3,843 2024 3,649 2025 3,434 2026 3,007 Thereafter 809 Total minimum lease payments $ 18,669
Schedule of Future Minimum Lease Payments under Non-cancellable Operating Leases	Future minimum lease payments at September 30, 2022 under the Company’s non-cancellable leases were as follows (in thousands) : 2022 (remaining three months) $ 1,602 2023 5,940 2024 5,555 2025 5,486 2026 4,839 Thereafter 1,190 Total future minimum lease payments 24,612 Less: Imputed interest ( 1,858 ) Present value of future minimum lease payments 22,754 Less: Current portion of operating lease liability ( 5,343 ) Operating lease liabilities - noncurrent $ 17,411
Schedule of Supplemental information for Non-cancellable Operating Leases	The following table presents supplemental information for the Company's non-cancellable operating leases for the nine months ended September 30, 2022 (in thousands, except for weighted average and percentage data): Weighted average remaining lease term 4.29 Weighted average discount rate 3.77 % Cash paid for amounts included in the measurement of lease liabilities $ 1,534 Noncash right-of-use assets obtained in exchange for operating lease obligations (1) $ 26,027 (1) Amount includes (i) $ 23.1 million related to the adoption of ASC 842 for existing operating leases on January 1, 2022, (ii) $ 3.5 million related to the Company entering into new non-cancellable operating lease agreements during 2022, and (iii) partially offset by a noncash reduction of $ 0.6 million related to the remeasurement of the existing Noida, India lease due to a change in the lease term of the agreement.

Non-controlling Interest (Table

Non-controlling Interest (Tables)	9 Months Ended
	Sep. 30, 2022
Noncontrolling Interest [Abstract]
Schedule of Ownership of Non-controlling Interest	The ownership of the LLC interests is summarized as follows: September 30, 2022 December 31, 2021 Shares Ownership % Shares Ownership % Clearwater Analytics Holdings, Inc. interest in CWAN Holdings 189,283,623 79.4 % 178,032,643 75.3 % Continuing Equity Owners' interest in CWAN Holdings 49,040,389 20.6 % 58,528,697 24.7 % 238,324,012 100.0 % 236,561,340 100.0 %

Loss Per Share (Tables)

Loss Per Share (Tables)	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Schedule of Computation of Basic and Diluted Net Loss Per Share	The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted net loss per share of Class A and Class D common stock for the periods following the Transactions (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Numerator: Net loss $ ( 3,026 ) $ ( 11,428 ) $ ( 4,728 ) $ ( 8,228 ) Less: Net income (loss) attributable to CWAN Holdings prior to the Transactions — ( 371 ) — 2,829 Less: Net income (loss) attributable to non-controlling interests ( 52 ) ( 2,742 ) 277 ( 2,742 ) Net loss attributable to Clearwater Analytics Holdings, Inc. - basic ( 2,974 ) ( 8,314 ) ( 5,005 ) ( 8,314 ) Reallocation of net income (loss) attributable to non-controlling interests from the assumed exchange of Class B and Class C stock for Class A and Class D stock ( 52 ) ( 2,742 ) 277 ( 2,742 ) Net loss attributable to Clearwater Analytics Holdings, Inc. - diluted $ ( 3,026 ) $ ( 11,056 ) $ ( 4,728 ) $ ( 11,056 ) The following tables sets forth the computation of basic and diluted net loss per share of Class A and Class D common stock (in thousands, except share amounts and per share amounts): Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Class A Class D Class A Class D Basic net loss attributable to Class A and Class D common stockholders Numerator: Allocation of net loss attributable to Clearwater Analytics, Inc. $ ( 914 ) $ ( 2,060 ) $ ( 1,467 ) $ ( 3,538 ) Denominator: Weighted average number of shares of Class A and Class D common stock outstanding - basic 57,740,776 130,083,755 53,942,623 130,083,755 Basic net loss per share attributable to Class A and Class D common stockholders $ ( 0.02 ) $ ( 0.02 ) $ ( 0.03 ) $ ( 0.03 ) Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Class A Class D Class A Class D Diluted net loss attributable to Class A and Class D common stockholders Numerator: Undistributed loss for basic computation $ ( 914 ) $ ( 2,060 ) $ ( 1,467 ) $ ( 3,538 ) Reallocation of earnings as a result of conversion of Class B to Class A shares and conversion Class C to Class D shares 146 ( 198 ) 273 4 Reallocation of earnings as a result of conversion of Class D to Class A shares ( 2,258 ) — ( 3,534 ) — Allocation of undistributed loss $ ( 3,026 ) $ ( 2,258 ) $ ( 4,728 ) $ ( 3,534 ) Denominator: Weighted average number of shares of Class A and Class D common stock outstanding - basic 57,740,776 130,083,755 53,942,623 130,083,755 Add: weighted-average effect of dilutive securities exchangeable for Class A common stock: Conversion of Class B stock to Class A stock, and conversion of Class C stock to Class D stock 2,667,173 47,377,587 6,037,259 47,377,587 Conversion of Class D to Class A common shares outstanding 177,461,342 — 177,461,342 — Weighted average number of shares of Class A and Class D common stock outstanding - diluted 237,869,291 177,461,342 237,441,224 177,461,342 Diluted net loss per share attributable to Class A and Class D common stockholders $ ( 0.01 ) $ ( 0.01 ) $ ( 0.02 ) $ ( 0.02 ) Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Class A Class D Class A Class D Basic net loss attributable to Class A and Class D common stockholders Numerator: Allocation of net loss attributable to Clearwater Analytics, Inc. $ ( 2,219 ) $ ( 6,095 ) $ ( 2,219 ) $ ( 6,095 ) Denominator: Weighted average number of shares of Class A and Class D common stock outstanding - basic (1) 47,366,089 130,083,755 47,366,089 130,083,755 Basic net loss per share attributable to Class and Class D common stockholders $ ( 0.05 ) $ ( 0.05 ) $ ( 0.05 ) $ ( 0.05 ) (1) Weighted average number of shares of Class A and Class D common stock outstanding represents only the period from September 24, 2021 to September 30, 2021, which represents the period wherein we had outstanding Class A and Class D common stock. Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Class A Class D Class A Class D Diluted net loss attributable to Class A and Class D common stockholders Numerator: Undistributed loss for basic computation $ ( 2,219 ) $ ( 6,095 ) $ ( 2,219 ) $ ( 6,095 ) Reallocation of earnings as a result of conversion of Class B to Class A shares and conversion Class C to Class D shares ( 522 ) ( 2,219 ) ( 522 ) ( 2,219 ) Reallocation of earnings as a result of conversion of Class D to Class A shares ( 8,314 ) — ( 8,314 ) — Allocation of undistributed loss $ ( 11,055 ) $ ( 8,314 ) $ ( 11,055 ) $ ( 8,314 ) Denominator: Weighted average number of shares of Class A and Class D common stock outstanding - basic 47,366,089 130,083,755 47,366,089 130,083,755 Add: weighted-average effect of dilutive securities exchangeable for Class A common stock: Conversion of Class B stock to Class A stock, and conversion of Class C stock to Class D stock 11,151,110 47,377,587 11,151,110 47,377,587 Conversion of Class D to Class A common shares outstanding 177,461,342 — 177,461,342 — Weighted average number of shares of Class A and Class D common stock outstanding - diluted 235,978,541 177,461,342 235,978,541 177,461,342 Diluted net loss per share attributable to Class A and Class D common stockholders $ ( 0.05 ) $ ( 0.05 ) $ ( 0.05 ) $ ( 0.05 )
Schedule of Weighted-average Potentially Dilutive Securities Excluded from Diluted Net Loss Per Share	The following weighted-average potentially dilutive securities were evaluated under the treasury stock method for potentially dilutive effects and have been excluded from diluted net loss per share in the periods presented due to their anti-dilutive effect: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Stock options of Clearwater Analytics Holdings, Inc. 10,163,645 13,041,159 10,939,998 13,041,159 RSUs of Clearwater Analytics Holdings, Inc. 713,091 61,845 1,044,382 61,845 Employee stock purchase plans 11,536 — 7,187 — Total 10,888,272 13,103,004 11,991,567 13,103,004

Equity-Based Compensation (Tabl

Equity-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Summary of Stock Option Activity	The following table summarizes the stock option activity for the nine months ended September 30, 2022 (in thousands, except per share data): Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Balance - December 31, 2021 22,315,171 $ 8.52 Granted 43,986 18.19 Exercised ( 1,151,656 ) 6.88 Forfeited ( 941,296 ) 10.48 Balance - September 30, 2022 20,266,205 $ 8.54 7.57 $ 169,187 Options vested - September 30, 2022 10,678,809 $ 6.78 $ 107,180
Summary of RSU Activity	During June 2021, the Company began to grant RSUs to employees. The summary of RSU activity for the nine months ended September 30, 2022 is as follows (in thousands, except per share data): Units Activity Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Unvested units as of December 31, 2021 6,070,668 $ — Granted 1,426,336 19.21 Released ( 573,235 ) — Cancelled ( 514,121 ) — Unvested units as of September 30, 2022 6,409,648 $ 107,618
Schedule of Assumptions Used to Calculate Fair Value of Options Granted	The following assumptions were used to calculate the fair value of options granted to employees on the date of grant using the Black-Scholes option-pricing model: Nine Months Ended September 30, 2022 2021 Weighted-average grant date fair value per option $ 7.74 $ 4.63 Fair value of units $ 17.72 - $ 18.68 $ 12.40 - $ 23.89 Expected term (in years) 5.50 6.00 - 6.25 Expected volatility 44 % 40 % - 42 % Risk-free interest rates 1.8 % - 2.0 % 0.6 % - 1.3 %

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2022
Segment Reporting [Abstract]
Summary of Revenue Disaggregated by Geography	The following table presents the Company’s revenue disaggregated by geography, based on billing address of the customer (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 United States $ 65,420 $ 59,445 $ 189,307 $ 166,765 Rest of World 11,132 5,044 31,432 15,494 Total revenue $ 76,552 $ 64,489 $ 220,739 $ 182,259

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Schedule of Provision for Income Taxes	The following table provides details of the provision for income taxes: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Loss before provision for income taxes $ ( 2,602 ) $ ( 11,212 ) $ ( 3,769 ) $ ( 7,692 ) Provision for income taxes 424 216 959 536 Effective tax rate ( 16.3 %) ( 1.9 %) ( 25.4 %) ( 7.0 %)

Organization and Description _3

Organization and Description of Business - Additional Information (Details) $ / shares in Units, $ in Thousands		9 Months Ended
	Sep. 28, 2021 USD ($) $ / shares shares	Sep. 30, 2022 USD ($) Offices shares	Sep. 30, 2021 USD ($)	Dec. 31, 2021 shares
Subsidiary, Sale of Stock [Line Items]
Entity incorporation date of incorporation		May 18, 2021
Number of entities operating within U.S. | Offices		5
Proceeds from Issuance Initial Public Offering			$ 582,188
Proceeds from issuance of common stock, net of underwriters discount		$ 214	1,850
Repayment of borrowings		$ 2,063	$ 434,231
Previous Credit Agreement
Subsidiary, Sale of Stock [Line Items]
Repayment of borrowings	$ 437,400
CWAN Holdings, LLC
Subsidiary, Sale of Stock [Line Items]
Purchase of common units | shares	34,500,000
Percentage of Ownership		79.40%		75.30%
Percentage of continuing equity ownership interest		20.60%		24.70%
Class A
Subsidiary, Sale of Stock [Line Items]
Common stock, shares issued | shares		59,199,868		47,948,888
Class B
Subsidiary, Sale of Stock [Line Items]
Common stock, shares issued | shares	11,151,110	1,662,802		11,151,110
Class C
Subsidiary, Sale of Stock [Line Items]
Common stock, shares issued | shares	47,377,587	47,377,587		47,377,587
Common stock basis	one-to-one basis
Class D
Subsidiary, Sale of Stock [Line Items]
Common stock, shares issued | shares	130,083,755	130,083,755		130,083,755
Common stock basis	one-to-one basis
IPO
Subsidiary, Sale of Stock [Line Items]
Share price | $ / shares	$ 18
Proceeds from Issuance Initial Public Offering	$ 582,200
Proceeds from issuance of common stock, net of underwriters discount	38,800
Other offering expenses	$ 5,300
IPO | Class A
Subsidiary, Sale of Stock [Line Items]
Issuance of common stock | shares	34,500,000

Organization and Description _4

Organization and Description of Business - Summary of Classes of Common Stock (Details)	9 Months Ended
	Sep. 30, 2022
Class A Common Stock
Subsidiary, Sale of Stock [Line Items]
Votes per Share	1
Economic Rights	Yes
Class B Common Stock
Subsidiary, Sale of Stock [Line Items]
Votes per Share	1
Economic Rights	No
Class C Common Stock
Subsidiary, Sale of Stock [Line Items]
Votes per Share	10
Economic Rights	No
Class D Common Stock
Subsidiary, Sale of Stock [Line Items]
Votes per Share	10
Economic Rights	Yes

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies- Additional Information (Details) - ASU 2016-02 - USD ($) $ in Millions	Sep. 30, 2022	Jan. 01, 2022
Basis of Presentation and Summary of Significant Accounting Policies [Line Items]
Change in accounting principle, accounting standards update, adopted [true false]	true
Change in accounting principle, accounting standards update, adoption date	Jan. 01, 2022
Derecognize deferred rent liability		$ 1.5
Expected ROU asset		23.1
Expected lease liability		$ 24.6

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022
Revenue from Contract with Customer [Abstract]
Deferred revenue recognized	$ 0.1	$ 0.4

Revenue Recognition - Additio_2

Revenue Recognition - Additional Information 1 (Details)	Sep. 30, 2022
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, expected timing of satisfaction, period	1 year

Revenue Recognition - Summary o

Revenue Recognition - Summary of Revenue Disaggregated by Geography (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 76,552	$ 64,489	$ 220,739	$ 182,259
United States
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	65,420	59,445	189,307	166,765
Rest of World
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 11,132	$ 5,044	$ 31,432	$ 15,494

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Financial Assets Measured at Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Assets, Fair Value Disclosure [Abstract]
Total assets measured at fair value	$ 287,873	$ 248,744
Money market funds
Assets, Fair Value Disclosure [Abstract]
Cash and cash equivalents	284,873	248,744
Certificates Of Deposit
Assets, Fair Value Disclosure [Abstract]
Short-term investments	3,000
Level 1
Assets, Fair Value Disclosure [Abstract]
Total assets measured at fair value	284,873	248,744
Level 1 | Money market funds
Assets, Fair Value Disclosure [Abstract]
Cash and cash equivalents	284,873	$ 248,744
Level 2
Assets, Fair Value Disclosure [Abstract]
Total assets measured at fair value	3,000
Level 2 | Certificates Of Deposit
Assets, Fair Value Disclosure [Abstract]
Short-term investments	$ 3,000

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Fair value assets transferred between levels	$ 0	$ 0
Fair value Liabilities transferred between levels	$ 0	$ 0

Supplemental Consolidated Bal_3

Supplemental Consolidated Balance Sheet Information - Schedule of Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Receivables [Abstract]
Unbilled accounts receivable	$ 27,696	$ 27,086
Billed accounts receivable	37,640	23,227
Allowance for doubtful accounts and reserves	(95)	(123)
Accounts receivable, net	$ 65,241	$ 50,190

Supplemental Consolidated Bal_4

Supplemental Consolidated Balance Sheet Information - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid expenses	$ 10,233	$ 11,722
Deferred contract costs, current portion	3,867	3,573
Other current assets	2,282	1,256
Prepaid expense and other current assets	$ 16,382	$ 16,551

Supplemental Consolidated Bal_5

Supplemental Consolidated Balance Sheet Information - Additional Information - (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Balance Sheet Related Disclosures [Abstract]
Depreciation and amortization expense	$ 1,400	$ 800	$ 3,499	$ 2,204
Accumulated depreciation and amortization	$ 15,500		$ 15,500		$ 12,200

Supplemental Consolidated Bal_6

Supplemental Consolidated Balance Sheet Information - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Accounts Payable and Accrued Liabilities, Current [Abstract]
Accrued bonus	$ 6,652	$ 8,295
Accrued interest	424	9
Accrued benefits and retirement	4,866	4,368
Accrued vendor liabilities	4,819	4,756
Accrued commissions	2,217	2,350
Deferred revenue	1,293	795
Income tax payable	1,114	771
Accrued sales tax exposure	969	1,444
Tax distributions payable to Continuing Equity Owners	112	169
Deferred rent		1,514
Other current liabilities	3,279	2,561
Accrued expenses and other liabilities	$ 25,745	$ 27,032

Leases - Additional Information

Leases - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Lessee, Lease, Description [Line Items]
Lessee, operating lease, renewal term	5 years		5 years
Finance leases	$ 0		$ 0
Operating lease cost	$ 1,900,000		$ 5,200,000
Operating lease initial term			12 months
Rent expense		$ 1,000,000		$ 2,700,000
Minimum
Lessee, Lease, Description [Line Items]
Lease, operating lease term	1 year		1 year
Maximum
Lessee, Lease, Description [Line Items]
Lease, operating lease term	10 years		10 years

Leases - Schedule of Future Min

Leases - Schedule of Future Minimum Lease Payments under Non-cancellable Leases (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Leases [Abstract]
2022	$ 3,927
2023	3,843
2024	3,649
2025	3,434
2026	3,007
Thereafter	809
Total minimum lease payments	$ 18,669

Leases - Schedule of Future M_2

Leases - Schedule of Future Minimum Lease Payments under Non-cancellable Operating Leases (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Leases [Abstract]
2022 (remaining three months)	$ 1,602
2023	5,940
2024	5,555
2025	5,486
2026	4,839
Thereafter	1,190
Total future minimum lease payments	24,612
Less: Imputed interest	(1,858)
Present value of future minimum lease payments	22,754
Less: Current portion of operating lease liability	(5,343)
Operating lease liabilities - noncurrent	$ 17,411

Leases - Schedule of Supplement

Leases - Schedule of Supplemental Information for Non-cancellable Operating Leases (Details) - USD ($) $ in Thousands		9 Months Ended
	Jan. 01, 2022	Sep. 30, 2022
Leases [Abstract]
Weighted average remaining lease term		4 years 3 months 14 days
Weighted average discount rate		3.77%
Cash paid for amounts included in the measurement of lease liabilities		$ 1,534
Noncash right-of-use assets obtained in exchange for operating lease obligations	$ 23,100	$ 26,027

Leases - Schedule of Suppleme_2

Leases - Schedule of Supplemental Information for Non-cancellable Operating Leases (Parenthetical) (Details) - USD ($) $ in Thousands		9 Months Ended
	Jan. 01, 2022	Sep. 30, 2022
Lessee, Lease, Description [Line Items]
Noncash right-of-use assets obtained in exchange for operating lease obligations	$ 23,100	$ 26,027
Noncash right-of-use assets obtained in exchange for operating lease obligations during period		3,500
Noncash reduction related to remeasurement of existing lease		$ 600

Non-controlling Interest - Sche

Non-controlling Interest - Schedule of Ownership of Non-controlling Interest (Details) - CWAN Holdings, LLC - shares	Sep. 30, 2022	Dec. 31, 2021
Non-controlling Interest [Line Items]
Non-controlling shares interest held by parent	189,283,623	178,032,643
Ownership shares by noncontrolling owners	49,040,389	58,528,697
Total shares economic interest ownership	238,324,012	236,561,340
Percentage of Ownership	79.40%	75.30%
Percentage of continuing equity ownership interest	20.60%	24.70%
Total economic interest ownership percentage	100%	100%

Loss Per Share - Schedule of Co

Loss Per Share - Schedule of Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended							9 Months Ended
		Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021		Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net loss		$ (3,026)	$ (2,230)	$ 528	$ (11,428)		$ (211)	$ 3,411	$ (4,728)	$ (8,228)
Less: Net income (loss) attributable to CWAN Holdings prior to the Transactions					(371)					2,829
Less: Net income (loss) attributable to non-controlling interests		(52)			(2,742)				277	(2,742)
Net loss attributable to Clearwater Analytics Holdings, Inc. - basic		(2,974)			(8,314)				(5,005)	(8,314)
Reallocation of net income (loss) attributable to non-controlling interests from the assumed exchange of Class B and Class C stock for Class A and Class D stock		(52)			(2,742)				277	(2,742)
Net loss attributable to Clearwater Analytics Holdings, Inc. - diluted		(3,026)			(11,056)				(4,728)	(11,056)
Numerator:
Allocation of net loss attributable to Clearwater Analytics, Inc.		$ (2,974)			$ (8,314)				$ (5,005)	$ (8,314)
Denominator:
Weighted average number of shares of Class A and Class D common stock outstanding - basic		187,824,531			177,449,844				184,026,378	177,449,844
Basic net loss per share attributable to Class A and Class D common stockholders	[1]	$ (0.02)			$ (0.05)				$ (0.03)	$ (0.05)
Denominator:
Weighted Average Number of Shares Outstanding, Basic		187,824,531			177,449,844				184,026,378	177,449,844
Add: weighted-average effect of dilutive securities exchangeable for Class A common stock:
Weighted average number of shares of Class A and Class D common stock outstanding - diluted		237,869,291			235,978,541				237,441,224	235,978,541
Diluted net loss per share attributable to Class A and Class D common stockholders	[1]	$ (0.01)			$ (0.05)				$ (0.02)	$ (0.05)
Class A
Numerator:
Allocation of net loss attributable to Clearwater Analytics, Inc.		$ (914)			$ (2,219)				$ (1,467)	$ (2,219)
Denominator:
Weighted average number of shares of Class A and Class D common stock outstanding - basic		57,740,776			47,366,089	[2]			53,942,623	47,366,089	[2]
Basic net loss per share attributable to Class A and Class D common stockholders		$ (0.02)			$ (0.05)				$ (0.03)	$ (0.05)
Numerator:
Undistributed loss for basic computation		$ (914)			$ (2,219)				$ (1,467)	$ (2,219)
Reallocation of earnings as a result of conversion of Class B to Class A shares and conversion Class C to Class D shares		146			(522)				273	(522)
Reallocation of earnings as a result of conversion of Class D to Class A shares		(2,258)			(8,314)				(3,534)	(8,314)
Allocation of undistributed loss		$ (3,026)			$ (11,055)				$ (4,728)	$ (11,055)
Denominator:
Weighted Average Number of Shares Outstanding, Basic		57,740,776			47,366,089	[2]			53,942,623	47,366,089	[2]
Add: weighted-average effect of dilutive securities exchangeable for Class A common stock:
Conversion of Class B stock to Class A stock, and conversion of Class C stock to Class D stock		2,667,173			11,151,110				6,037,259	11,151,110
Conversion of Class D to Class A common shares outstanding		177,461,342			177,461,342				177,461,342	177,461,342
Weighted average number of shares of Class A and Class D common stock outstanding - diluted		237,869,291			235,978,541				237,441,224	235,978,541
Diluted net loss per share attributable to Class A and Class D common stockholders		$ (0.01)			$ (0.05)				$ (0.02)	$ (0.05)
Class D
Numerator:
Allocation of net loss attributable to Clearwater Analytics, Inc.		$ (2,060)			$ (6,095)				$ (3,538)	$ (6,095)
Denominator:
Weighted average number of shares of Class A and Class D common stock outstanding - basic		130,083,755			130,083,755	[2]			130,083,755	130,083,755	[2]
Basic net loss per share attributable to Class A and Class D common stockholders		$ (0.02)			$ (0.05)				$ (0.03)	$ (0.05)
Numerator:
Undistributed loss for basic computation		$ (2,060)			$ (6,095)				$ (3,538)	$ (6,095)
Reallocation of earnings as a result of conversion of Class B to Class A shares and conversion Class C to Class D shares		(198)			(2,219)				4	(2,219)
Allocation of undistributed loss		$ (2,258)			$ (8,314)				$ (3,534)	$ (8,314)
Denominator:
Weighted Average Number of Shares Outstanding, Basic		130,083,755			130,083,755	[2]			130,083,755	130,083,755	[2]
Add: weighted-average effect of dilutive securities exchangeable for Class A common stock:
Conversion of Class B stock to Class A stock, and conversion of Class C stock to Class D stock		47,377,587			47,377,587				47,377,587	47,377,587
Weighted average number of shares of Class A and Class D common stock outstanding - diluted		177,461,342			177,461,342				177,461,342	177,461,342
Diluted net loss per share attributable to Class A and Class D common stockholders		$ (0.01)			$ (0.05)				$ (0.02)	$ (0.05)
[1] Basic and diluted net loss per share of Class A and Class D common stock is applicable only for the periods after the IPO and related transactions (as defined in Note 1 to the Unaudited Condensed Consolidated Financial Statements). See Note 8 for the number of shares used in the computation of net loss per share of Class A and Class D common stock and the basis for the computation of net loss per share. Weighted average number of shares of Class A and Class D common stock outstanding represents only the period from September 24, 2021 to September 30, 2021, which represents the period wherein we had outstanding Class A and Class D common stock.

Loss Per Share - Schedule of We

Loss Per Share - Schedule of Weighted-average Potentially Dilutive Securities Excluded from Diluted Net Loss Per Share (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive impact	10,888,272	13,103,004	11,991,567	13,103,004
Stock options of Clearwater Analytics Holdings, Inc.
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive impact	10,163,645	13,041,159	10,939,998	13,041,159
RSUs of Clearwater Analytics Holdings, Inc.
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive impact	713,091	61,845	1,044,382	61,845
Employee stock purchase plans
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive impact	11,536		7,187

Equity-Based Compensation - Add

Equity-Based Compensation - Additional Information (Details) - USD ($)		1 Months Ended	3 Months Ended	9 Months Ended
	May 31, 2022	Sep. 30, 2021	Jun. 30, 2022	Sep. 30, 2022	Jan. 01, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Weighted-average grant date fair value				$ 7.74
Total unrecognized compensation expense				$ 51,400,000
Weighted-average period to recognize expense				2 years 3 months 18 days
Dividend yield				0%
Employees based contribution elections offering period end date	May 31, 2022
Common Stock | Class A Common Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares issued to employees			200,220
2021 Plan | Common Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares authorized for issuance				57,197,804
2021 Employee Stock Purchase Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Purchase price as percentage of lower of fair market value as of beginning or end of offering period		85%
Maximum percentage of employee payroll deduction for stock purchase		10%
Maximum value of shares eligible to purchase during offering period		$ 25,000
Unrecognized equity-based compensation expense	$ 300,000
ESPP payroll contributions				$ 1,400,000
Shares issued to employees	200,220
2021 Employee Stock Purchase Plan | Class A Common Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock were initially reserved for issuance					5,837,791
Offering periods scheduled start date		--06-01
Offering periods scheduled end date		--12-01
RSUs
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Weighted-average period to recognize expense				2 years 10 months 24 days
Unrecognized equity-based compensation expense				$ 88,500,000

Equity-Based Compensation - Sum

Equity-Based Compensation - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($) $ / shares shares
Share-Based Payment Arrangement [Abstract]
Stock Options, Balance - December 31, 2021 | shares	22,315,171
Stock Options, Granted | shares	43,986
Stock Options, Exercised | shares	(1,151,656)
Stock Options, Forfeited | shares	(941,296)
Stock Options, Balance - September 30, 2022 | shares	20,266,205
Stock Options, Options vested - September 30, 2022 | shares	10,678,809
Weighted Average Exercise Price, Balance - December 31, 2021 | $ / shares	$ 8.52
Weighted Average Exercise Price, Granted | $ / shares	18.19
Weighted Average Exercise Price, Exercised | $ / shares	6.88
Weighted Average Exercise Price, Forfeited | $ / shares	10.48
Weighted Average Exercise Price, Balance - September 30, 2022 | $ / shares	8.54
Weighted Average Exercise Price, Options vested - September 30, 2022 | $ / shares	$ 6.78
Weighted Average Remaining Contractual Life (Years)	7 years 6 months 25 days
Aggregate Intrinsic Value, Balance - June 30, 2022 | $	$ 169,187
Aggregate Intrinsic Value, Options vested - June 30, 2022 | $	$ 107,180

Equity-Based Compensation - S_2

Equity-Based Compensation - Summary of RSU Activity (Details) - RSUs $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($) $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Units Activity, Unvested units as of December 31, 2021	6,070,668
Units Activity, Granted	1,426,336
Units Activity, Released	(573,235)
Units Activity, Cancelled	(514,121)
Units Activity, Unvested units as of September 30, 2022	6,409,648
Weighted Average Grant Date Fair Value, Granted | $ / shares	$ 19.21
Aggregate Intrinsic Value, Unvested units as of September 30, 2022 | $	$ 107,618

Equity-Based Compensation - Sch

Equity-Based Compensation - Schedule of Assumptions Used to Calculate Fair Value of Options Granted (Details) - $ / shares	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Weighted-average grant date fair value per option	$ 7.74	$ 4.63
Expected term (in years)	5 years 6 months
Expected volatility	44%
Risk-free interest rates, minimum	1.80%	0.60%
Risk-free interest rates, maximum	2%	1.30%
Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Fair value of units	$ 17.72	$ 12.40
Expected term (in years)		6 years
Expected volatility		40%
Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Fair value of units	$ 18.68	$ 23.89
Expected term (in years)		6 years 3 months
Expected volatility		42%

Segment Information - Summary o

Segment Information - Summary of Revenue Disaggregated by Geography (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 76,552	$ 64,489	$ 220,739	$ 182,259
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	65,420	59,445	189,307	166,765
Rest of World
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 11,132	$ 5,044	$ 31,432	$ 15,494

Income Taxes - Schedule of Prov

Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Loss before provision for income taxes	$ (2,602)	$ (11,212)	$ (3,769)	$ (7,692)
Provision for income taxes	$ 424	$ 216	$ 959	$ 536
Effective tax rate	(16.30%)	(1.90%)	(25.40%)	(7.00%)

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($)		9 Months Ended
	Sep. 28, 2021	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Percentage of estimated tax benefits to be realized	85%
Percentage of expected remaining tax benefits to be realized	15%
Estimated future tax benefit related to ownership exchanges		$ 410,000,000
Estimated future tax benefit related to ownership exchanges associated to TRA liability		348,000,000
Tax receivable agreement liability		5,700,000
TRA liability related to future years		$ 0

Commitments and Contingencies (

Commitments and Contingencies (Additional Information) (Details) - JUMP Technology € in Millions, shares in Millions	Sep. 29, 2022 EUR (€) Employee shares
Purchase Commitment, Excluding Long-Term Commitment [Line Items]
Purchase price of acquisition | €	€ 75
Number of customers across Europe	70
Number of employees	100
Maximum
Purchase Commitment, Excluding Long-Term Commitment [Line Items]
Restricted stock units to be earned over four years from grant date | shares	3.8

Transactions with Related Par_2

Transactions with Related Parties - Additional Information (Details) - Principal Equity Owners - USD ($) $ in Millions	1 Months Ended	3 Months Ended		9 Months Ended
	Jan. 31, 2021	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Related Party Transaction [Line Items]
Payment relation to management fees	$ 9.6
Management fee		$ 0.6	$ 0.6	$ 1.8	$ 1.7
Prepaid management fees amortized period				4 years