Clearwater Analytics (CWAN) 10-K 3 Mar 23 2022 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2022	Feb. 24, 2023	Jun. 30, 2022
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Trading Symbol	CWAN
Entity Registrant Name	Clearwater Analytics Holdings, Inc.
Entity Central Index Key	0001866368
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
ICFR Auditor Attestation Flag	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	433-1200
Entity Interactive Data Current	Yes
Entity Incorporation, State or Country Code	DE
Document Annual 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 Public Float			$ 692,919,109
Auditor Firm ID	185
Auditor Name	KPMG LLP
Auditor Location	Boise, Idaho
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		62,212,132
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		1,439,251
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

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 250,724	$ 254,597
Short-term investments	4,890
Accounts receivable, net	72,575	50,190
Prepaid expenses and other current assets	28,157	16,551
Total current assets	356,346	321,338
Property and equipment, net	15,064	10,738
Intangible assets, net	29,456
Operating lease right-of-use assets, net	24,114
Deferred contract costs, non-current	6,563	5,687
Debt issuance costs - line of credit	728	922
Other non-current assets	5,880	5,670
Goodwill	43,791
Total assets	481,942	344,355
Current liabilities:
Accounts payable	3,092	1,416
Accrued expenses and other current liabilities	42,119	27,032
Notes payable, current portion	2,750	2,750
Operating lease liability, current portion	5,851
Tax receivable agreement liability	12,200
Total current liabilities	66,012	31,198
Notes payable, less current maturities and unamortized debt issuance costs	48,492	51,157
Operating lease liability, less current portion	19,505
Other long-term liabilities	9,547	132
Total liabilities	143,556	82,487
Commitments and contingencies (Note 8)
Stockholders' Equity
Additional paid-in-capital	455,320	388,591
Accumulated other comprehensive income (loss)	609	(34)
Accumulated Deficit	(186,647)	(191,926)
Total stockholders' equity attributable to Clearwater Analytics Holdings, Inc.	269,521	196,867
Non-controlling interests	68,865	65,001
Total stockholders' equity	338,386	261,868
Total liabilities and Stockholders' Equity	481,942	344,355
Class A
Stockholders' Equity
Common stock	61	48
Class B
Stockholders' Equity
Common stock	1	11
Class C
Stockholders' Equity
Common stock	47	47
Class D
Stockholders' Equity
Common stock	$ 130	$ 130

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 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	61,148,890	47,948,888
Common stock, shares outstanding	61,148,890	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	1,439,251	11,151,110
Common stock, shares outstanding	1,439,251	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

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Statement [Abstract]
Revenue		$ 303,426	$ 252,022	$ 203,222
Cost of revenue	[1]	87,784	67,864	53,263
Gross Profit, Total		215,642	184,158	149,959
Operating expenses:
Research and development	[1]	94,120	72,690	55,262
Sales and marketing	[1]	52,638	39,065	22,243
General and administrative	[1]	63,767	43,942	43,874
Recapitalization compensation expenses				48,998
Total operating expenses		210,525	155,697	170,377
Income (loss) from operations		5,117	28,461	(20,418)
Interest (income) expense, net		(1,137)	25,682	22,854
Tax receivable agreement expense		11,639
Loss on debt extinguishment			10,303
Other (income) expense, net		(50)	83	56
Income (loss) before provision for income taxes		(5,335)	(7,607)	(43,328)
Provision for income taxes		1,360	487	902
Net income (loss)		(6,695)	(8,094)	$ (44,230)
Less: Net income (loss) attributable to non-controlling interests		1,272	119
Net loss attributable to Clearwater Analytics Holdings, Inc.		$ (7,967)	$ (8,213)
Net loss per share attributable to Class A and Class D common stock (Note 13) (1):
Basic	[2]	$ (0.04)	$ (0.05)
Diluted	[2]	$ (0.04)	$ (0.05)
Weighted average shares of Class A and Class D common stock outstanding:
Basic		185,560,683	177,680,507
Diluted		185,560,683	177,680,507
[1] Amounts include equity-based compensation as follows: Basic and diluted net loss per share of Class A and Class D common stock is applicable only for the period from September 24, 2021 to December 31, 2022, which is the period following our initial public offering and related transactions.

Consolidated Statements of Op_2

Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Total equity-based compensation expense	$ 65,691	$ 36,695	$ 24,602
Cost of revenue
Total equity-based compensation expense	9,043	4,786	1,669
Research and development
Total equity-based compensation expense	17,950	10,409	4,208
Sales and marketing
Total equity-based compensation expense	12,711	7,059	3,911
General and administrative
Total equity-based compensation expense	$ 25,987	$ 14,441	$ 14,814

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net loss	$ (6,695)	$ (8,094)	$ (44,230)
Other comprehensive income (loss), net of taxes:
Foreign currency translation adjustment	824	(102)	71
Comprehensive loss	(5,871)	(8,196)	$ (44,159)
Less: Comprehensive income attributable to non-controlling interests	1,453	17
Comprehensive loss attributable to Clearwater Analytics Holdings, Inc.	$ (7,324)	$ (8,213)

Consolidated Statements of Chan

Consolidated Statements of Changes in Equity (Deficit) - USD ($) $ in Thousands	Total	Activity prior to the Transactions	Activity subsequent to the Transactions	IPO Effect of the Transactions	CWAN Holdings, LLC	Members' Deficit CWAN Holdings, LLC	Members' Deficit CWAN Holdings, LLC Activity prior to the Transactions	Members' Deficit CWAN Holdings, LLC Effect of the Transactions	Common Stock [Member] Class A	Common Stock [Member] Class A Effect of the Transactions	Common Stock [Member] Class A Activity subsequent to the Transactions	Common Stock [Member] Class A IPO Effect of the Transactions	Common Stock [Member] Class B	Common Stock [Member] Class B Effect of the Transactions	Common Stock [Member] Class C	Common Stock [Member] Class C Effect of the Transactions	Common Stock [Member] Class D	Common Stock [Member] Class D Effect of the Transactions	Additional Paid-In Capital	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	Additional Paid-In Capital CWAN Holdings, LLC	Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) Effect of the Transactions	Accumulated Other Comprehensive Income (Loss) Activity subsequent to the Transactions	Accumulated Other Comprehensive Income (Loss) CWAN Holdings, LLC	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
Beginning Balance at Dec. 31, 2019					$ (200,722)	$ (201,576)																	$ 867				$ (13)
Repurchase of common units					(567)																		(567)
Exercise of options to purchase common stock/unit					424																		424
Equity-based compensation					24,602																		24,602
Foreign currency translation adjustment					71																						71
Net loss	$ (44,230)				(44,230)	(44,230)
Dividend to unitholders					(163,258)																		(163,258)
Distributions to unitholders for taxes					(9,926)																		9,926
Contributions from selling unitholders	48,998				48,998																		48,998
Ending Balance at Dec. 31, 2020	(344,608)					(245,806)													$ (98,860)					$ 58
Ending Balance at Dec. 31, 2020					$ (344,608)	$ (245,806)																	$ (98,860)				$ 58
Issuance of common units	1,560			$ 576,844								$ 35							1,560			$ 576,809
Issuance of common units, shares												34,500,000
Repurchase of common units	(626)																		(626)
Exercise of options to purchase common stock/unit	259		$ 2,571								$ 1								259		$ 1,935												$ 636
Exercise of options to purchase common stock/unit , shares											582,799
Options withheld for minimum tax obligations for net unit settlement	(2,185)																		(2,185)
Effect of organizational transactions, value								$ 242,977		$ 13				$ 11		$ 47		$ 130											$ (243,178)
Effect of organizational transactions, shares										12,866,089				11,151,110		47,377,587		130,083,755
Allocation of equity to non-controlling interest																				$ (122,753)					$ 11				$ 60,258			$ 62,484
Equity-based compensation	17,981		19,230																17,981		$ 14,472												4,758
Foreign currency translation adjustment	(101)		(1)																					(101)		$ (2)							1
Net loss	(8,094)	$ 2,829	(10,923)				$ 2,829																							$ (8,213)			(2,710)
Accrued tax distributions payable to Continuing Equity Owners			(169)																														$ (169)
Tax adjustments related to organizational transactions			$ (793)																											$ (793)
Ending Balance at Dec. 31, 2021	261,868								$ 48				$ 11		$ 47		$ 130		388,591					(34)				$ (191,926)			$ 65,001
Ending 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/unit	18,284								$ 3										14,261												4,020
Exercise of options to purchase common stock/unit , shares									2,747,332
Restricted stock units released									588,854
Shares Withheld For Tax Obligation	(3,189)																		(2,487)												(702)
Shares withheld for tax obligations,share									(196,961)
ESPP shares issued	4,215																		3,288												927
ESPP shares issued, shares									348,918
Equity-based compensation	66,236																		51,667												14,569
Foreign currency translation adjustment	824																							643							181
Net loss	(6,695)																											(7,967)			1,272
Accrued tax distributions payable to Continuing Equity Owners	(3,157)																														(3,157)
Effect of LLC unit exchanges, value									$ 10				$ (10)															13,246			(13,246)
Effect of LLC unit exchanges, shares									9,711,859				(9,711,859)
Ending Balance at Dec. 31, 2022	$ 338,386								$ 61				$ 1		$ 47		$ 130		$ 455,320					$ 609				$ (186,647)			$ 68,865
Ending balance, shares at Dec. 31, 2022									61,148,890				1,439,251		47,377,587		130,083,755

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
OPERATING ACTIVITIES
Net loss	$ (6,695)	$ (8,094)	$ (44,230)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	5,139	3,493	2,271
Noncash operating lease cost	5,950
Equity-based compensation	65,691	36,695	24,602
Change in tax receivable liability	12,200
Amortization of deferred contract acquisition costs	4,327	3,385	2,340
Amortization of debt issuance costs, included in interest expense	279	1,545	2,506
Debt extinguishment costs		10,303
Deferred tax benefit	(803)	(675)
Changes in operating assets and liabilities, excluding the impact of business acquisitions:
Accounts receivable, net	(19,098)	(17,308)	(6,325)
Prepaid expenses and other assets	(4,956)	(13,136)	(767)
Deferred commissions	(5,845)	(5,161)	(4,092)
Accounts payable	1,609	361	67
Accrued expenses and other liabilities	1,243	500	8,040
Accrued sales tax liability	(1,036)	(8,550)	9,102
Net cash provided by (used in) operating activities	58,005	3,358	(6,486)
INVESTING ACTIVITIES
Purchases of property and equipment	(7,758)	(5,025)	(3,806)
Purchase of short-term investments	(3,000)
Acquisition of business, net of cash acquired	(65,793)
Net cash used in investing activities	(76,551)	(5,025)	(3,806)
FINANCING ACTIVITIES
Contributions from selling unitholders			48,998
Proceeds from issuance of common unit options		1,560
Proceeds from exercise of options	18,284	2,830	424
Minimum tax withholding paid on behalf of employees for net share/ unit settlement	(3,189)	(2,185)
Dividend distributed to unitholders			(163,258)
Distributions to unitholders for taxes			(9,926)
Repurchase of common units		(626)	(567)
Proceeds from employee stock purchase plan	4,215
Repayments of borrowings	(2,750)	(434,919)	(21,557)
Payments of costs associated with early repayment of debt		(2,029)
Proceeds from borrowings		55,000	202,688
Payment of debt issuance costs		(1,400)	(5,761)
Proceeds from initial public offering, net of underwriting discounts		582,188
Payment of costs associated with offering	(214)	(5,131)
Payment of tax distributions to Continuing Equity Owners	(117)
Net cash provided by financing activities	16,229	195,288	51,041
Effect of exchange rate changes on cash and cash equivalents	(1,556)	(112)	85
Change in cash and cash equivalents during the period	(3,873)	193,509	40,834
Cash and cash equivalents, beginning of period	254,597	61,088	20,254
Cash and cash equivalents, end of period	250,724	254,597	61,088
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest	1,395	26,113	22,182
Cash paid for income taxes	2,044	802	429
NON-CASH INVESTING AND FINANCING ACTIVITIES
Purchase of property and equipment included in accounts payable and accrued expense	350	322	$ 489
Business acquisition holdback liability included in accrued expense and other long-term liabilities	7,220
Direct costs incurred with the offering included in accrued expense		214
Tax distributions payable to Continuing Equity Owners included in accrued expenses	$ 3,196	169
Tax liability related to organizational transaction included in accrued expenses		$ 793

Organization and Description of

Organization and Description of Business	12 Months Ended
	Dec. 31, 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. (the “Company” or “Clearwater”) 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 connection 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’s principal asset consists of ownership of common units in CWAN Holdings. As the sole managing member of CWAN Holdings, Clearwater operates and controls all the business operations of the Company. 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 seven offices internationally. Initial Public Offering On September 28, 2021, the Company completed the 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 credit agreement with Ares Capital Corporation and Golub Capital LLC (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 certain of our directors and officers and their respective permitted transferees (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 • 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 to an economic interest in the Company; • the execution of the Tax Receivable Agreement, by and among Clearwater, CWAN Holdings and the other parties thereto (the “Tax Receivable Agreement” or “TRA”) (Note 16). As of December 31, 2022, the Company owns 79.7 % of the interests in CWAN Holdings. Continuing Equity Owners which hold Class B and Class C common stock own the remaining 20.3 % of 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	12 Months Ended
	Dec. 31, 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 consolidated financial statements and accompanying notes have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). Principles of consolidation The 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 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, business combinations, 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 consolidated financial statements will be affected. Revenue Recognition The Company earns revenue primarily from providing access to its SaaS platform solution to its customers, and to a lesser degree, from services that support the implementation on the SaaS platform. The Company recognizes revenue when it satisfies performance obligations under the terms of the contract in an amount that reflects the consideration the Company expects to receive in exchange for the services. The Company determines the appropriate amount of revenue to be recognized using the following steps: (i) identification of contracts with customers, (ii) identification of the performance obligations in the contract, (iii) determination of transaction price, (iv) allocation of contract transaction price to the performance obligations, and (v) recognition of revenue when or as the Company satisfies a performance obligation. Often contracts contain more than one performance obligation. Performance obligations are the unit of accounting for revenue recognition and generally represent the distinct services that are promised to the customer. Due to the acquisition of JUMP on November 30, 2022, the Company has an immaterial amount of revenue from selling perpetual and term-based software licenses, maintenance and support and acquired $ 3.7 million in contract assets. Contract assets (as reflected in prepaid expenses and other current assets, and non-current assets - see Note 7 to these Financial Statements) are recorded upon delivery or the license being made available to the customer, to the extent we have an unconditional right to receive payment in the future related to those licenses. The non-current portion relates to unbilled receivables from multi-year license contracts. The Company’s SaaS services allow the customer to access the services without taking possession of the software. Non-refundable fees invoiced in advance of the delivery of the Company’s performance obligations are deemed set up activities and are deferred as a material right and recognized over time, typically 12 months . After set up activities, customers typically receive benefits from implementation services prior to the “go live” date, at which point they can use the platform as intended in the arrangement. We have determined these implementation services are generally a separate performance obligation. As the Company’s platform must stand ready to provide the services throughout the contract period, revenues are recognized as the services are provided over time beginning on the date the service is made available as intended in the arrangement. Customers generally have the right to cancel with 30 days’ notice with no penalty. The Company typically bills its customers monthly in arrears based on a percentage of the average of the daily value of the assets within a customer’s accounts on the platform. Payment terms may vary by contract but generally include a requirement of payment within 30 days following the month in which services were provided. Sales tax collected from customers and remitted to governmental authorities is not included in revenue and is reflected as a liability on the Company’s consolidated balance sheets. Payment terms may vary by contract but generally include a requirement of payment within 30 days. Costs Incurred to Obtain Revenue Contracts The Company’s incremental direct costs of obtaining a contract consist of sales commissions which are deferred and amortized ratably over the term of economic benefit, which the Company has determined to be four years . These deferred contract costs are classified as current or non-current based on the timing of when the Company expects to recognize the expense. The current and non-current portions of deferred commissions are included in prepaid expenses and other current assets, and deferred contract costs, non-current, respectively, in the Company’s consolidated balance sheets. Recoverability of these costs is subject to various business risks. The Company compares the carrying value of these assets with the undiscounted future cash flows expected to be generated by them to determine if there is impairment. No impairment losses were recognized during the years ended December 31, 2022, 2021 and 2020. Deferred Revenue Deferred revenue (as reflected in accrued expenses and other current liabilities – see Note 7 to these Financial Statements) generally consists of non-refundable fees invoiced during the period in which the Company is performing set-up activities. Deferred revenue that will be recognized during the succeeding twelve-month period and is recorded as current deferred revenue . Cash and Cash Equivalents Cash and cash equivalents consist of cash in banks and highly liquid investments, primarily money market funds, purchased with an original maturity of three months or less at the time of purchase. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company maintains the vast majority of its cash with United States financial institutions of high credit quality. The Company performs periodic evaluations of the credit standing of such institutions. Accounts receivable are recorded net of an allowance for expected credit losses. Management’s evaluation of the adequacy of the allowance for expected credit losses considers historical collection experience, changes in customer payment terms, the aging of receivable balances, as well as current and expected economic conditions, all of which may impact a customer’s ability to pay. Receivables are written-off and charged against its recorded allowance when the Company has exhausted collection efforts without success. During the years ended December 31, 2022, 2021 and 2020, the Company did no t have any clients that contributed more than 10% of revenue. As of December 31, 2022 and 2021, the Company did no t have any clients that accounted for 10% or more of total accounts receivable. Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, short-term investments, accounts receivable, accounts payable, accrued liabilities and notes payable. Cash equivalents are stated at carrying value, which approximates fair value as of the balance sheet dates, due to the short period of time to maturity. Short-term investments include held-to-maturity debt securities which are recorded at amortized cost, and available-for-sale debt securities which are recorded at fair value. Accounts receivable, accounts payable and accrued liabilities are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment. The carrying amounts reported in the consolidated balance sheets for the Company’s notes payable approximates fair value because the interest rate is variable and reflects current market values. As of December 31, 2022 and December 31, 2021, the Company has not elected the fair value option for any financial assets or liabilities for which such an election would have been permitted. The Company measures financial assets and liabilities at fair value at each reporting period using a fair value hierarchy that requires the use of observable inputs and minimizes the use of unobservable inputs. The Company defines fair value as the price that would be received from selling an asset or paid by the Company to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: • Level I – Quoted prices in active markets for identical assets or liabilities. • Level II – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level III – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. The Company measures its cash equivalents, which includes money market accounts and available-for-sale debt securities at fair value, and held-to-maturity debt securities at amortized cost, and classifies them in accordance with the fair value hierarchy on a recurring basis . 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. Investments in debt securities that we have the positive intent to sell before reaching maturity are classified as available-for-sale debt securities. Available-for-sale investments are recorded at fair value, and unrealized gains or losses related to changes in fair value between periods are reported in accumulated other comprehensive income (loss). Short term investments include certificates of deposits which are classified as held-to-maturity debt securities and recorded at cost of $ 3.0 million as of December 31, 2022. During the year ended December 31, 2022, there were no unrealized gains or loss recorded related our certificates of deposits. We did no t have held-to-maturity debt securities as of December 31, 2021. Short term investments include non-US treasury securities which are classified as available-for-sale debt securities and recorded at fair value of $ 1.9 million as of December 31, 2022. Holding gains and losses for the year ended December 31, 2022 were not material and none of the available-for-sale securities were in a material unrealized loss position as of December 31, 2022. During the year ended December 31, 2022 there were no sales of available-for-sale securities. The fair value of available-for-sale securities, by contractual maturity as of December 31, 2022 was $ 1.0 million due in one year or less, and $ 0.9 million due in two to five years. We did no t have available-for-sale securities as of December 31, 2021. Property and Equipment, Net Property and equipment are stated at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, which are generally three to five years . Leasehold improvements are amortized on a straight-line basis over the shorter of the remaining lease term or the estimated useful lives of related improvements. Expenditures for repairs and maintenance are charged to expense in the period incurred. Costs associated with the development of internal use software incurred during the application and development stage are capitalized and recorded as part of property and equipment, net. Costs related to preliminary project activities and post implementation activities are expensed as incurred. Upgrades and enhancements are capitalized if the expenditures will result in adding functionality to the software. Depreciation and amortization periods for property and equipment are as follows: Property and Equipment Estimated Useful Life Computer equipment 3 years Furniture and fixtures 3 - 5 years Internally developed software 4 years Leasehold improvements Lesser of estimated useful life or remaining lease term Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment when circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of these assets is measured by a comparison of the carrying amounts to the sum of the future undiscounted cash flows the assets are expected to generate. If a long-lived asset is considered impaired, the impairment equals the amount by which the carrying value of the asset exceeds its fair value. During the years ended December 31, 2022, 2021 and 2020, we recorded an impairment loss of $ 0.1 million, $ 0.5 million and $ 0 , respectively. The impairment losses recorded in 2022 and 2021 related to abandoned capitalized software projects (See Note 7 to these Financial Statements). Cost of Revenue Cost of revenue consists of expenses that are related to delivery of revenue generating services, including expenses associated with client services, global delivery, reconciliation, and agreements related to the purchase of data used in the provision of the Company’s services. Certain personnel expenses associated with supporting these functions, including associated allocated overhead expenses, are also included in cost of revenue. Capitalized software costs are amortized using the straight-line method over the estimated economic life of the related software, which is generally four years , and are recorded as cost of revenue in the consolidated statements of operations. Research and Development Research and development costs consist of personnel expenses, including salaries and benefits, bonuses, equity-based compensation and related overhead costs for employees engaged in the design, development and maintenance of the Company’s offerings and other internally used systems and applications. Equity-Based Compensation The Company measures and recognizes equity-based compensation expense for stock options based on the estimated fair value of equity-based awards on the date of grant using the Black-Scholes option-pricing model for options and the fair value of the equity on the date of grant for RSUs. The Company recognizes equity-based compensation expense over the requisite service period on a straight-line basis, which is generally consistent with the vesting of the awards, based on the estimated fair value of the equity-based awards issued to employees and directors that are expected to vest. Equity-based compensation that vests on a performance event, such as annual targets for the Company, begins to be recognized at the date that the performance event becomes probable, and compensation expense is recognized on a straight-line basis over any remaining service period. If there are any modifications of equity-based awards, the Company may be required to accelerate, increase, decrease, or reverse any equity-based compensation expense on the unvested awards. The Company records forfeitures when they occur for all equity-based awards. Equity-based compensation expense related to purchase rights issued under the Employee Stock Purchase Plan (“ESPP”) is based on a Black-Scholes option pricing formula to determine fair value of the estimated awards as of the beginning of the offering period. Equity-based compensation expense is recognized following the straight-line attribution method over the offering period . Income Taxes We use the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and the tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets are evaluated for future realization and reduced by a valuation allowance to the extent we believe it is more likely than not that they will not be realized. We consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, carryback potential if permitted under tax law, and results of recent operations. We record uncertain tax positions in accordance with ASC 740, Income Taxes on the basis of a two-step process in which (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position, and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. We consider many factors when evaluating our uncertain tax positions, which involve significant judgment and may require periodic adjustments. The resolution of these uncertain tax positions in a manner inconsistent with management’s expectations could have a material impact on our consolidated financial statements. We recognize interest and penalties related to uncertain tax positions as a component of our provision for income taxes. Accrued interest and penalties are included with the related tax liability. We account for amounts payable under the TRA in accordance with Accounting Standards Codification (“ASC”) Topic 450, Contingencies. As such, subsequent changes to the measurement of the TRA liability are recognized in the consolidated statements of operations as tax receivable agreement expense, which is a component of other income (expense), net. Tax receivable agreement liability in the consolidated balance sheets includes both accrued amounts payable related to the TRA, and accrued amounts payable related to the TRA Bonus Agreement. Debt Issuance Costs Debt issuance costs are amortized over the period the related obligation is outstanding using the effective interest method. Debt issuance costs related to the term note are included within notes payable on the consolidated balance sheet. Debt issuance costs associated with the line of credit are included as a non-current asset on the consolidated balance sheets. Amortization of debt issuance costs are included in interest (income) expense in the consolidated statements of operations. Comprehensive Loss Comprehensive loss is comprised of two elements: net loss and other comprehensive loss. Other comprehensive loss refers to losses that are recorded as an element of stockholders’ equity but are excluded from the Company’s net loss. For all periods presented, the Company’s other comprehensive loss is comprised of foreign currency translation adjustments related to its foreign subsidiaries. Foreign Currency The functional currencies of the Company’s foreign subsidiaries are their local currencies. The assets and liabilities of the Company’s foreign subsidiaries are translated at the spot rate in effect at the applicable reporting date, and the consolidated statements of operations are translated at the average exchange rates in effect during the applicable period. The resulting unrealized cumulative translation adjustment is recorded as a component of accumulated other comprehensive loss in stockholders' equity. The Company has transactions in foreign currencies other than the functional currency. Transactions denominated in currencies other than the functional currency are recorded based on exchange rates at the time the transactions occur. Subsequent changes in exchange rates result in transaction gains and losses which are reflected in the consolidated statements of operations as unrealized (based on the applicable period-end exchange rate) or realized upon settlement of the transactions. Foreign currency gains and losses resulting from transactions denominated in a currency other than the functional currency are included in other (income) expense, net in the consolidated statements of operations. During the years ended December 31, 2022, 2021 and 2020, the Company recognized net foreign currency gains (losses) of $ 86,000 , ($ 83,000 ), and ($ 38,000 ), respectively. Non-Controlling Interests The non-controlling interests balance represents the economic interests in CWAN Holdings held by Continuing Equity Owners, based on the portion of Class B and Class C common stock owned by Continuing Equity Owners. Income or loss is attributed to the non-controlling interests based on the weighted-average Class B and Class C common stock outstanding during the period. As of December 31, 2022, the non-controlling interests owned 20.3 % of CWAN Holdings. The non-controlling interests' ownership percentage can fluctuate over time as Continuing Equity Owners elect to exchange Class B and Class C common stock for Class A and Class D common stock of Clearwater Analytics Holdings, Inc. Net Loss Per Share Basic net loss per share is computed by dividing net loss attributable to Clearwater Analytics Holdings, Inc. for the period following the Transactions by the weighted-average number of shares of Class A and Class D common stock during the same period. Diluted net loss per share of Class A and Class D common stock is computed by dividing net income attributable to Clearwater Analytics Holdings, Inc., adjusted for the assumed exchange of all potentially dilutive instruments for Class A and Class D common stock and shares issuable under the ESPP, by the weighted-average number of shares of Class A and Class D common stock outstanding, adjusted to give effect to potentially dilutive elements. The dilutive effect of outstanding awards, if any, is reflected in diluted earnings per share by application of the treasury stock method or if-converted method, as applicabl e. Business Combinations We include the results of operations of the businesses that we acquire beginning as of the respective dates of acquisition. We allocate the fair value of the purchase price of our acquisitions to the assets acquired and liabilities assumed, generally based on their estimated fair values. The excess of the purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired technology, useful lives, royalty rates, and discount rates. Additional information existing as of the acquisition date but unknown to us may become known during the remainder of the measurement period, not to exceed 12 months from the acquisition date, which may result in changes to the amounts and allocations recorded . Intangible Assets Purchased intangible assets with finite lives are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets. Finite-lived intangible assets are evaluated for impairment when impairment indicators are present. No impairment charge was recorded for the year ended December 31, 2022. Impairment of Goodwill Goodwill is evaluated for impairment on an annual basis in the fourth quarter of our fiscal year, and whenever events or changes in circumstances indicate the carrying amount of goodwill may not be recoverable. We have elected to first assess qualitative factors to determine whether it is more likely than not that the fair value of our single reporting unit is less than its carrying amount, including goodwill. If we determine that it is more likely than not that the fair value is less than its carrying amount, then the quantitative impairment test will be performed. Under the quantitative impairment test, if the carrying amount exceeds its fair value, we will recognize an impairment loss in an amount equal to that excess but limited to the total amount of goodwill. 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 ba sed on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. The Company does not have any finance leases. The adoption of this standard did not have a material impact on the Company's results of operations or cash flows. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The ASU provides an exception for companies to apply revenue guidance to recognize and measure contract assets and liabilities from contracts with customers acquired in a business combination on the acquisition date, instead of measuring them at fair value. The standard is effective for public companies for annual periods beginning after December 15, 2022, including interim periods therein. Early adoption is permitted for both interim and annual financial statements. We early adopted this guidance in our fourth quarter of fiscal 2022 on a prospective basis. The adoption of this standard did not have a material impact on our consolidated financial statements.

Revenue Recognition

Revenue Recognition	12 Months Ended
	Dec. 31, 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 year ended December 31, 2022, $ 0.4 million was included in the deferred revenue balance as of December 31, 2021. Of the total revenue recognized for the year ended December 31, 2021, $ 0.7 million was included in deferred revenue balance as of December 31, 2020. Revenue by geography as presented in Note 15. Segment and Geographic Information is determined based on the billing address of the customer.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 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 December 31, 2022 and December 31, 2021 in accordance with the fair value hierarchy (in thousands): December 31, 2022 Level I Level II Level III Total Financial Assets: Cash equivalents: Money market funds $ 243,387 $ — $ — $ 243,387 Short-term investments: Certificates of deposit — 3,000 — $ 3,000 Non-US Treasury securities — 1,890 — $ 1,890 Total assets measured at fair value $ 243,387 $ 4,890 $ — $ 248,277 December 31, 2021 Level I Level II Level III Total Financial Assets: Cash equivalents: Money market funds $ 248,744 $ — $ — $ 248,744 Total assets measured at fair value $ 248,744 $ — $ — $ 248,744 During the year ended December 31, 2022 and 2021, there were no transfers of assets or liabilities between Level 1, Level 2 and Level 3 of the fair value hierarchy.

Business Combinations

Business Combinations	12 Months Ended
	Dec. 31, 2022
Business Combinations [Abstract]
Business Combinations	Note 5 . Business Combinations On November 30, 2022, we completed our acquisition of JUMP Technology (“JUMP”), acquiring 100 % of the outstanding common shares and voting interest in JUMP. We believe the acquisition will strengthen our position to become an industry-leading provider of innovative, end-to-end solutions to investment management companies globally. The total purchase consideration for the acquisition of JUMP was € 75 million in cash, which approximated to $ 77.1 million based on the exchange rate at the time of acquisition. A total of € 67.5 million cash was paid as purchase consideration upon completion of the acquisition. The Share Purchase Agreement includes an indemnification holdback which requires the remaining € 7.5 million cash to be paid as purchase consideration over the subsequent two years subject to no indemnification claims being submitted. We expensed acquisition-related costs in the amount of $ 1.7 million in general and administrative expenses in 2022. We have accounted for this transaction as a business combination and allocated the fair value of the consideration to the tangible and intangible assets acquired as well as liabilities assumed, based on their estimated fair values. The excess of the purchase price over the fair values of these identifiable assets and liabilities was recorded as goodwill. The preliminary allocated fair value is summarized as follows (in thousands): Fair Value Cash and cash equivalents $ 4,353 Short-term investments 1,832 Accounts receivable 3,186 Operating lease right-of-use asset 3,715 Other assets 5,776 Intangible assets 28,890 Goodwill 42,450 Operating lease liability ( 3,622 ) Deferred tax liability ( 5,670 ) Other liabilities ( 3,765 ) Total consideration 77,145 Deferred consideration related to indemnification holdback ( 6,999 ) Cash acquired ( 4,353 ) Cash paid for acquisition of business, net of cash acquired $ 65,793 We expect to finalize the allocation of the purchase consideration as soon as practicable, pending finalization of taxes and any other adjustments related to acquired assets or liabilities, but no later than 12 months from the Acquisition Date. Goodwill generated from this business combination is primarily attributable to the assembled workforce and expected post-acquisition synergies from integrating JUMP technology into our platform and strengthening our ability to serve a global customer base and accelerate delivery of solutions to investment management companies. The goodwill is not expected to be deductible for income tax purposes. The following table presents details of the preliminary fair values of identified intangible assets acquired (in thousands, except years): Fair Value Estimated Useful Life Developed technology $ 24,317 7 years Customer relationships 4,261 13 years Trade name / Trademarks 312 2 years Total $ 28,890 The identified intangible assets are measured at fair value as Level III in accordance with the fair value hierarchy. Revenue of $ 2.7 million and net income of $ 1.1 million is included in our consolidated statements of operations for the year ended December 31, 2022. Pro forma information has not been presented as disclosure is impracticable due to JUMP's historical financial statements not being prepared in accordance with US GAAP. A total of 3,200,000 RSU equity awards were granted to JUMP employees on November 30, 2022 and are recognized separately from the acquisition of assets and assumptions of liabilities related to JUMP. The Company estimated the fair value of each RSU awarded using the closing price of the Company's shares on the NYSE on November 30, 2022. The RSUs are either subject to time-based vesting conditions and vest over four years , or subject to performance-based vesting and vest upon achievement of targets tied to annual revenue growth in 2023. A total of $ 1.8 million equity-based compensation related to JUMP employees is recorded in general and administrative expenses for the year ended December 31, 2022.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	12 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Note 6. Goodwill and Intangible Assets Goodwill The following table presents details of our goodwill during the year ended December 31, 2022 (in thousa nds): Amount Balance as of December 31, 2021 $ — Goodwill acquired 42,450 Foreign currency translation adjustments 1,341 Balance as of December 31, 2022 $ 43,791 Purchased Intangible Assets The following table presents details of our purchased intangible assets (in thousands): December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life (In Years) Intangible assets with finite lives: Developed technology $ 25,086 $ ( 255 ) $ 24,831 6.9 Customer relationships 4,395 ( 29 ) 4,366 12.9 Trade name / Trademarks 322 ( 63 ) 259 1.9 Total intangible assets $ 29,803 $ ( 347 ) $ 29,456 We recognized amortization expense of $ 0.4 million for the year ended December 31, 2022. The following table summarizes estimated future amortization expense of our intangible assets subject to amortization as of December 31, 2022 (in thousands): Fiscal Years Total 2023 2024 2025 2026 2027 and Thereafter Total future amortization expense $ 29,456 $ 4,076 $ 4,069 $ 3,922 $ 3,922 $ 13,467

Balance Sheet Components

Balance Sheet Components	12 Months Ended
	Dec. 31, 2022
Balance Sheet Related Disclosures [Abstract]
Balance Sheet Components	Note 7. Balance Sheet Components Accounts Receivable, net Accounts receivable, net consisted of the following (in thousands): December 31, 2022 2021 Unbilled accounts receivable $ 30,963 $ 27,086 Billed accounts receivable 41,718 23,227 Allowance for doubtful accounts and reserves ( 106 ) ( 123 ) Accounts receivable, net $ 72,575 $ 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): December 31, 2022 2021 Prepaid expenses $ 14,947 $ 11,722 Deferred contract costs, current portion 4,215 3,573 Contract assets 2,518 — Tax receivable 2,602 — Other receivable 1,540 — Other current assets 2,335 1,256 Prepaid expense and other current assets $ 28,157 $ 16,551 Property and Equipment, net Property and equipment, net consisted of the following (in thousands): December 31, 2022 2021 Computer equipment $ 12,794 $ 13,886 Leasehold improvements 3,575 3,045 Furniture and fixtures 1,207 1,126 Internally developed software 11,561 4,925 Construction in progress 379 — Total property and equipment 29,516 22,982 Less: accumulated depreciation ( 14,452 ) ( 12,244 ) Total property and equipment, net $ 15,064 $ 10,738 Internally developed software includes $ 0.5 million of capitalized equity-based compensation for the years ended December 31, 2022 and 2021. Depreciation expense was $ 4.8 million, $ 3.5 million and $ 2.3 million for the year ended December 31, 2022, 2021 and 2020, respectively. Depreciation expense includes $ 0.1 million and $ 0.5 million of impairment losses related to abandoned in process capitalized software projects that are recorded within research and development expense in the consolidated statements of operations for the year ended December 31, 2022 and 2021, respectively. We determined that these software projects would not generate future cash flows through use or disposal to a third party and, as such, the fair value as of December 31, 2022 and 2021 was $ 0 . Other Non-current Assets Other Non-current assets consisted of the following (in thousands): December 31, 2022 2021 Prepaid management fee to Principal Equity Owners $ 2,009 $ 4,405 Long term deposits 861 178 Long term contract asset 1,191 — Prepaid IT services 259 412 Deferred tax asset 1,560 675 Other non-current assets $ 5,880 $ 5,670 Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): December 31, 2022 2021 Accrued sales tax exposure $ 408 $ 1,444 Accrued interest 548 9 Accrued bonus 10,005 8,295 Accrued vendor liabilities 4,811 4,756 Accrued benefits and retirement 10,566 4,368 Acquisition holdback liability 3,770 — Deferred revenue 1,185 795 Accrued commissions 2,709 2,350 Deferred rent — 1,514 Income tax payable 920 771 Tax distributions payable to Continuing Equity Owners 3,196 169 Other current liabilities 4,001 2,561 Accrued expenses and other liabilities $ 42,119 $ 27,032 Other Long-term Liabilities Other long-term liabilities consisted of the following (in thousands): December 31, 2022 2021 Asset retirement obligation $ 119 $ 132 Deferred revenue — — Acquisition holdback liability 3,496 — Deferred tax liabilities 5,932 — Other long-term liabilities $ 9,547 $ 132

Credit Agreement

Credit Agreement	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Credit Agreement	Note 8 . Credit Agreement Previous Credit Agreement On October 19, 2020, we entered into the Fifth Amendment to the Credit Agreement with Ares Capital Corporation and Golub Capital LLC. The agreement provided for a total term loan of $ 435 million and revolving line of credit of $ 30 million. Under the terms of the Fifth Amendment to the Credit Agreement, we were required to maintain certain customary affirmative and negative covenants, including covenants that limited our ability to, among other things, incur indebtedness, merge or consolidate, dispose of assets, make investments, make acquisitions, enter into transactions with affiliates, pay dividends or make distributions. We were also required to maintain compliance with a consolidated net leverage ratio. The line of credit and term note agreements also included customary events of default. The outstanding borrowings under the Fifth Amendment to the Credit Agreement of $ 432.7 million were repaid in full in September 2021 in connection with the closing of the IPO. The repayment of the borrowings resulted in a loss on extinguishment of $ 10.3 million. New Credit Agreement In connection with the closing of the IPO, Clearwater Analytics, LLC (the “Borrower”) has entered into a new credit agreement (the “New Credit Agreement”) with JPMorgan Chase Bank, N.A., that included a $ 55 million term loan facility (the “New Term Loan”) and a $ 125 million revolving facility (the “Revolving Facility”). The New Term Loan and Revolving Facility will be used for working capital and other general corporate purposes (including acquisitions permitted under the New Credit Agreement). The interest rates applicable to the loans under the New Credit Agreement are based on a fluctuating rate of interest determined by reference to a base rate plus an applicable margin of 0.75 % or a LIBOR rate plus an applicable margin of 1.75 % , in each case with a step-up of 0.25 % if certain secured net leverage levels are not achieved. The applicable margin is adjusted after the completion of each full fiscal quarter based upon the pricing grid in the New Credit Agreement. The revolving commitment has an unused commitment fee of 25 basis points, stepping up to 30 basis points if certain secured net leverage levels are not achieved. Under the New Credit Agreement, the term loan amortizes at a rate of 5.00 % per annum, paid quarterly . The New Credit Agreement contains mandatory prepayments to the extent the company incurs certain indebtedness or receives proceeds from certain dispositions or casualty events. The obligations of the Borrower under the New Credit Agreement are anticipated to be jointly and severally guaranteed by its direct parent and certain of its subsidiaries (collectively, the “Guarantors”, and together with the Borrower, the “Loan Parties”). The obligations of the Loan Parties are anticipated to be secured by a first priority lien on substantially all of their assets, subject to customary exceptions. The New Credit Agreement contains customary affirmative and negative covenants, including, without limitation, covenants that restrict our ability to borrow money, grant liens, make investments, make restricted payments or dispose of assets, and customary events of default. Specifically, we are required to maintain a consolidated secured net indebtedness to consolidated EBITDA ratio of not more than 4.75 :1.00 as of the last day of each fiscal quarter commencing with the fiscal quarter ending December 31, 2021. Future maturities of debt as of December 31, 2022 are as follows: For the year ending December 31, 2023 $ 2,750 2024 2,750 2025 2,750 2026 43,313 2027 — Thereafter — Total principal debt 51,563 Unamortized loan costs ( 321 ) Net carrying amount $ 51,242

Employee Retirement Plan

Employee Retirement Plan	12 Months Ended
	Dec. 31, 2022
Retirement Benefits [Abstract]
Employee Retirement Plan	Note 9 . Employee Retirement Plan The Company’s U.S. 401K and international retirement plans are defined contribution plans (“the Plans”) that are available to employees that meet certain eligibility requirements. Company cash contributions to the Plans are based on a percentage of employee contributions subject to an annual limitation. The Company reserves the right to amend the Plans at any time. The Company made contributions of $ 5.6 million, $ 4.5 million, and $ 3.4 million during the year ended December 31, 2022, 2021 and 2020, respectively.

Leases

Leases	12 Months Ended
	Dec. 31, 2022
Leases [Abstract]
Leases	Note 10 . 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 consolidated balance sheets. The Company does not 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. Variable lease payments are expensed as incurred and are not included within the ROU asset and lease liability calculation. Optional periods to extend a lease under renewal options are included in the lease term when it is reasonably certain that the option will be exercised. 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 consolidated 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). The following table summarizes the impacts of adopting Topic 842 on the Company's consolidated balance sheets as of January 1, 2022 (in thousands): As Reported Balance as of January 1, 2022 Adjustments due to As Adjusted Balance as of January 1, 2022 Assets Operating lease right-of-use assets $ — $ 23,091 $ 23,091 Liabilities Accrued expenses and other liabilities $ 27,032 $ ( 1,514 ) $ 25,518 Operating lease liability, current portion $ — $ 4,948 $ 4,948 Operating lease liability, less current portion $ — $ 19,657 $ 19,657 Operating lease cost was $ 6.4 million for the year ended December 31, 2022. Variable lease cost and short-term lease cost were immaterial during the year ended December 31, 2022. Future minimum lease payments at December 31, 2022 under the Company's non-cancellable leases were as follows: For the year ending December 31, 2023 $ 6,727 2024 6,356 2025 6,434 2026 5,785 2027 2,088 Thereafter 158 Total future minimum lease payments 27,548 Less: Imputed interest ( 2,192 ) Present value of future minimum lease payments 25,356 Less: Current portion of operating lease liability ( 5,851 ) Operating lease liabilities - noncurrent $ 19,505 The following table presents supplemental information for the Company's non-cancellable operating leases for the year ended December 31, 2022 (in thousands, except for weighted average and percentage data): Weighted average remaining lease term 4.21 Weighted average discount rate 3.98 % Cash paid for amounts included in the measurement of lease liabilities $ 4,949 Noncash right-of-use assets obtained in exchange for operating lease obligations (1) $ 2,936 (1) Amount includes (i) $ 3.5 million related to the Company entering into new non-cancellable operating lease agreements during 2022 and (ii) 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. Rent expense was $ 3.9 million and $ 3.4 million for the year ended December 31, 2021 and 2020, respectively. Future minimum lease payments under non-cancelable leases as of December 31, 2021 under ASC 840 were (in thousands) : For the year ending December 31, 2022 $ 3,927 2023 3,843 2024 3,649 2025 3,434 2026 3,007 Thereafter 809 Total minimum lease payments $ 18,669

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 11. Commitments and Contingencies Purchase Obligations The Company has future minimum purchase obligations under arrangements with third parties who provide hosting infrastructure services, cloud services, and SaaS accounting solutions. The following is a schedule of future minimum purchase obligations as of December 31, 2022 (in thousands): For the year ending December 31, 2023 $ 12,661 2024 11,968 2025 4,553 2026 610 2027 241 Total future purchase obligations $ 30,033

Noncontrolling Interest

Noncontrolling Interest	12 Months Ended
	Dec. 31, 2022
Noncontrolling Interest [Abstract]
Non-controlling Interest	Note 12 . 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 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: December 31, 2022 December 31, 2021 Shares Ownership % Shares Ownership % Clearwater Analytics Holdings, Inc. interest in CWAN Holdings 191,232,645 79.7 % 178,032,643 75.3 % Continuing Equity Owners' interest in CWAN Holdings 48,816,838 20.3 % 58,528,697 24.7 % 240,049,483 100.0 % 236,561,340 100.0 %

Loss Per Share

Loss Per Share	12 Months Ended
	Dec. 31, 2022
Earnings Per Share [Abstract]
Loss Per Share	Note 13. 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): Year Ended December 31, 2022 2021 Numerator: Net loss $ ( 6,695 ) $ ( 8,094 ) Less: Net income attributable to CWAN Holdings prior to the Transactions — 2,829 Less: Net income (loss) attributable to non-controlling interests 1,272 ( 2,710 ) Net loss attributable to Clearwater Analytics Holdings, Inc. - basic and diluted ( 7,967 ) ( 8,213 ) The following table 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): Year Ended December 31, 2022 Year Ended December 31, 2021 Class A Class D Class A Class D Basic and diluted net loss attributable to Class A and Class D common stockholders Numerator: Allocation of net loss attributable to Clearwater Analytics, Inc. $ ( 2,382 ) $ ( 5,585 ) $ ( 2,200 ) $ ( 6,013 ) Denominator: Weighted average number of shares of Class A and Class D common stock outstanding - basic and diluted (1) 55,476,928 130,083,755 47,596,752 130,083,755 Basic and diluted net loss per share attributable to Class A and Class D common stockholders $ ( 0.04 ) $ ( 0.04 ) $ ( 0.05 ) $ ( 0.05 ) (1) Weighted average number of shares of Class A and Class D common stock outstanding for the year ended December 31, 2021 represents only the period from September 24, 2021 to December 31, 2021, which represents the period wherein we had outstanding Class A and Class D common stock. Shares of the Company's Class B and Class C common stock do not participate in the earnings or losses of the Company 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: Year Ended December 31, 2022 2021 Conversion of Class B and Class C common stock 52,301,672 58,528,697 Stock options of Clearwater Analytics Holdings, Inc. 10,280,184 14,575,237 RSUs of Clearwater Analytics Holdings, Inc. 1,342,284 1,514,207 Employee stock purchase plans 179,314 262,139 Total 64,103,454 74,880,280

Equity-Based Compensation

Equity-Based Compensation	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Equity-Based Compensation	Note 14. 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 year ended December 31, 2022, 2021 and 2020 (in thousands, except per share data): Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Balance - December 31, 2019 15,841,250 $ 4.88 8.55 $ 2,770 Granted 6,626,178 5.12 Exercised ( 6,796,126 ) 4.24 54,747 Forfeited ( 778,130 ) 4.24 Balance - December 31, 2020 14,893,172 $ 4.60 9.19 $ 116,029 Granted 10,303,307 13.49 Exercised ( 1,124,740 ) 4.35 16,346 Forfeited ( 1,756,568 ) 7.23 Balance - December 31, 2021 22,315,171 $ 8.52 6.25 $ 322,877 Granted 43,986 18.19 Exercised ( 2,950,662 ) 7.45 $ 31,341 Forfeited ( 1,653,725 ) 11.16 Balance - December 31, 2022 17,754,770 $ 8.47 7.06 $ 183,315 Options vested - December 31, 2022 9,401,413 $ 6.98 $ 110,894 The weighted-average grant-date fair value of stock options granted during the years ended December 31, 2022, 2021 and 2020 was $ 7.74 per share, $ 5.11 per share and $ 1.60 per share, respectively. The aggregate intrinsic value disclosed in the above table is based on the difference between the exercise price of the stock option and the estimated fair value of the Company's common stock as of the respective period-end dates. As of December 31, 2022, the total unrecognized compensation expense related to unvested options was $ 41.0 million, which is expected to be recognized over a weighted average period of 2.1 years. In general, options which vest over a four-year period are subject to time-based vesting conditions based on continuous employment over the four-year period: Time-based vesting – 25 % of the units awarded are eligible to vest on the first anniversary of employment, and 75 % are subsequently eligible to vest on a monthly basis over the remaining three-year period, subject to continued employment. In January 2020, the Company offered to option holders a one-time modification to reduce the exercise price of all equity options with exercise prices greater than $ 4.40 per unit to $ 4.40 , the ‘fair value’ at the date of modification. In total, 8,778,750 options had their exercise price reduced for 68 option holders who accepted the repricing. The option awards subject to repricing were accounted for as modified awards due to the change in exercise price of option awards as a result of the repricing. The incremental compensation charge resulting from the modification is $ 1.9 million. For vested option awards, $ 0.7 million was recognized on the date of modification and for unvested option awards $ 1.2 million will be recognized over the remaining requisite service period. In October 2020, in conjunction with the recapitalization transaction described in Note 18, the Company accelerated the vesting on 4,150,845 options for 27 employees. The total incremental expense associated with the acceleration was $ 18.8 million, recognized on the date of modification. The option awards subject to acceleration were accounted for as modified awards due to the change in the vesting period of existing awards. In September 2021, the Company modified the vesting conditions of 12,493,241 unvested stock options, which had been issued prior to the nine months ended September 30, 2021. All unvested options that had a performance condition were modified to remove the performance condition. The options will continue to vest on the same schedule under the original terms of the awards. The modification resulted in incremental share-based compensation expense of $ 15.2 million, which is being recognized over the remaining term of the modified stock options. RSUs During June 2021, the Company began to grant RSUs to employees. The summary of RSU activity 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, 2020 — $ — $ — Granted 6,162,095 17.84 Released — — — Canceled ( 91,427 ) 18.03 — Unvested units as of December 31, 2021 6,070,668 $ 17.84 $ 138,958 Granted 4,745,363 18.86 — Released ( 588,854 ) 17.54 — Canceled ( 699,829 ) 18.47 — Unvested units as of December 31, 2022 9,527,348 $ 18.32 $ 178,638 The aggregate intrinsic value disclosed in the above table is based on the closing stock price on the NYSE on December 31, 2022 and 2021. As of December 31, 2022, there was $ 100.8 million of unrecognized equity-based compensation expense related to RSUs, which is expected to be recognized over a weighted average period of 3.1 years . In general, RSUs are either subject to time-based vesting conditions, or both time-based vesting conditions and performance-based vesting, in each case based on continuous employment of the employee. Time-based vesting – units awarded are eligible to vest in substantially equal annual installments on each anniversary from the grant date over a four year period. Performance-based vesting – units awarded are eligible to vest in equal three annual installments upon the achievement of annual targets tied to annual revenue growth. All terms of performance conditions are established on grant date. 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/Stock – 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 stock price on the NYSE 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 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 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 stock options granted to employees on the date of grant using the Black-Scholes option-pricing model: Year Ended December 31, 2022 2021 2020 Weighted-average grant date fair value per option $ 7.74 $ 5.11 $ 1.60 Fair value of units/ stock $ 17.72 - $ 18.68 $ 12.40 - $ 23.89 $ 4.40 - $ 12.40 Expected term (in years) 5.5 6.00 - 6.25 6.25 Expected volatility 44 % 40 - 42 % 30 % Risk-free interest rates 1.8 - 2.0 % 0.6 - 1.3 % 0.4 - 1.7 % 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 of the Company’s shares on the NYSE 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 . On November 30, 2022, a total of 148,698 shares were issued to employees for the offering period ended November 30, 2022 . As of December 31, 2022, total unrecognized equity-based compensation costs related to ESPP were $ 0.9 million, which is expected to be recognized over the remaining current offering period ending May 31, 2023. ESPP payroll contributions accrued at December 31, 2022 totaled $ 0.5 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 . The fair value of the purchase right for the ESPP is estimated on the date of grant using the Black-Scholes model with the following assumptions for the year ended December 31, 2021: Year Ended December 31, 2022 Year Ended December 31, 2021 Expected volatility 34.9 - 57.1 % 34.9 % Risk-free interest rate 0.1 - 4.6 % 0.1 % Expected term (years) 0.5 0.5

Segment and Geographic Informat

Segment and Geographic Information	12 Months Ended
	Dec. 31, 2022
Segment Reporting [Abstract]
Segment and Geographic Information	Note 15. Segment and Geographic Information Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision group, in deciding how to allocate resources and assessing performance. The Company’s chief operating decision maker is the Company’s Chief Executive Officer (“CEO”). The Company’s CEO reviews financial information presented on a consolidated basis and makes decisions and allocates resources based on the Company as a whole. The Company has one business activity as a provider of a SaaS solution for investment data aggregation, accounting, analytics, and reporting services. Accordingly, the Company operates as one operating segment, and all required segment financial information is found in the consolidated financial statements. The following table presents the Company’s revenue disaggregated by geography, based on billing address of the customer (in thousands): Year Ended December 31, 2022 2021 2020 United States $ 261,755 $ 229,482 $ 183,745 Rest of World 41,671 22,540 19,477 Total revenue $ 303,426 $ 252,022 $ 203,222 The following table presents the Company’s long-lived assets including property, plant and equipment, net, operating lease right-of-use assets, net, and intangibles assets, net, disaggregated by geography (in thousands): Year Ended December 31, 2022 2021 2020 United States $ 28,179 $ 9,297 $ 7,566 Rest of World 40,455 1,441 1,283 Total long-lived assets, net $ 68,634 $ 10,738 $ 8,849

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Note 16. 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 attributed to the non-controlling interests is not reported by the Company in its consolidated financial statements. The components of the net income (loss) before the provision for income taxes were as follows (in thousands): Year Ended December 31, 2022 2021 2020 Domestic $ ( 9,306 ) $ ( 11,117 ) $ ( 46,789 ) Foreign 3,971 3,510 3,461 Total $ ( 5,335 ) $ ( 7,607 ) $ ( 43,328 ) The provision for income taxes was as follows (in thousands): Year Ended December 31, 2022 2021 2020 Federal $ — $ — $ — State 491 111 29 International 1,737 1,055 873 Total current income tax expense $ 2,228 $ 1,166 $ 902 Federal — — — State ( 3 ) ( 13 ) — International ( 865 ) ( 666 ) — Total deferred income tax expense $ ( 868 ) $ ( 679 ) $ — Total provision for income taxes $ 1,360 $ 487 $ 902 The provision for income taxes differs from the amount computed by applying the statutory federal rate as follows (in thousands, except percentages): Year Ended December 31, 2022 2021 2020 Tax at federal statutory rate $ ( 1,120 ) $ ( 1,597 ) $ ( 9,099 ) Noncontrolling interest and nontaxable income ( 41 ) 643 9,825 State taxes ( 1,592 ) ( 1,935 ) 29 Foreign rate differential 92 54 ( 12 ) Executive compensation deduction limitations 5,544 — — Global intangible low taxed income inclusion 1,854 845 — Equity-based compensation ( 2,316 ) ( 1,746 ) — Permanent items 394 ( 57 ) — Tax credits and incentives ( 1,623 ) ( 55 ) — Return to provision ( 38,107 ) ( 320 ) — Changes in tax law 63,504 — — Valuation allowance ( 25,356 ) 4,652 — Other 127 3 159 Total $ 1,360 $ 487 $ 902 Effective tax rate ( 25.5 %) ( 6.4 %) ( 2.1 %) In 2022, our tax rate was affected by changes in tax law related to state tax rates and apportionment, a return to provision adjustment related to partnership basis of our continuing equity owners and their upstream entities, recognition of additional valuation allowance and the disallowance of tax deductibility of certain expenses. In 2021 and 2020, our tax rate was affected primarily by the recognition of a valuation allowance and the portion of earnings attributed to the non-controlling interests. Deferred income taxes result from differences in the recognition of amounts for tax and financial reporting purposes, as well as operating loss and tax credit carryforwards. Significant components of our deferred income tax assets and liabilities are as follows (in thousands): Year Ended December 31, 2022 2021 Investment in Partnership $ 336,276 $ 311,858 Loss and tax credit carryforwards 80,711 75,931 Equity-based compensation 8,336 7,935 Lease liability 2,057 — Other 1,099 186 Total deferred tax assets $ 428,479 $ 395,910 Valuation allowance ( 422,555 ) ( 395,220 ) Net deferred tax asset $ 5,924 $ 690 Intangible assets ( 7,364 ) — Right of use asset ( 1,988 ) — Revenue ( 833 ) — Other ( 111 ) ( 15 ) Total deferred tax liabilities ( 10,296 ) ( 15 ) Net deferred tax liabilities $ ( 4,372 ) $ 675 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 during the year ended December 31, 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. The valuation allowance increased $ 27 million during the year ended December 31, 2022 and was primarily attributable to increases in deferred taxes related to tax basis step ups from the non-controlling interests exchanging their partnership units for our publicly traded stock and the capitalization of R&D expenses under Section 174. As of December 31, 2022, we had net operating loss carryforwards of approximately $ 238 million for federal income tax purposes, a small portion of which will begin to expire in 2036 if unused. We had net operating loss carryforwards of approximately $ 318 million for state income tax purposes, which will begin to expire in the year 2025 if unused.‌ We had net operating loss carryforwards of approximately $ 9 million for foreign income tax purposes, which do not expire and can be carried forward indefinitely. As of December 31, 2022, we also had research and development credit carryforwards of approximately $ 3.1 million for federal income tax and $ 500,000 for state income tax purposes. The research and development tax credits will begin to expire in 2036 and 2034 for federal and state purposes, respectively, if unused. The federal and state net operating loss carryforwards may be subject to significant limitations under Section 382 and Section 383 of the Internal Revenue Code of 1986 and similar provisions under state law. The Tax Reform Act of 1986 contains provisions that limit the federal net operating loss carryforwards that may be used in any given year in the event of special occurrences, including significant ownership changes. We have completed a Section 382 review and determined that none of our operating losses will expire solely due to Section 382 limitation(s). We indefinitely reinvest earnings from our foreign subsidiaries and therefore no deferred tax liability has been recognized on the basis difference created by such earnings. We have not provided foreign withholding taxes for any undistributed earnings of our foreign subsidiaries. A reconciliation of the beginning and ending balance of total unrecognized tax benefits is as follows (in thousands): Year Ended December 31, 2022 2021 2020 Balance - Beginning of Year $ 3,548 $ — $ — Increases related to current year's tax positions 959 89 — Increases related to organizational transactions — 3,455 Increases (decreases) related to prior year's tax positions ( 182 ) 3 — Decreases related to lapse of statute ( 487 ) — — Increases related to exchanges 94 1 — Balance - End of Year $ 3,932 $ 3,548 $ — No ne of the tax benefits included in the balance of unrecognized tax benefits as of December 31, 2022 would affect the effective tax rate if recognized. We recognize interest and penalties related to unrecognized tax benefits as income tax expense. During the year ended December 31, 2022, 2021, and 2020, we did no t recognize any interest and penalties for income taxes. We file income tax returns in the U.S. federal jurisdiction, various state jurisdictions, and various foreign jurisdictions. As of December 31, 2022, all of the years remain open to examination by the federal and state tax authorities for three or four years from the tax year in which net operating losses or tax credits are utilized. We believe that an adequate provision has been made for any adjustments that may result from tax examinations. Although the timing of the resolution, settlement, and closure of audits is not certain, we do not expect our unrecognized tax benefits to materially change in the next 12 months. 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 year ended December 31, 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 year ended December 31, 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 year ended December 31, 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 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 December 31, 2022 are estimated to be $ 405 million, of which $ 345 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 allowance against the future realization of those benefits. As such, no TRA liability related to future years has been recorded as of December 31, 2022, as it is not probable that we will realize any tax benefits. Before considering the tax benefits subject to our TRA Agreement, we estimate that we would have reported taxable income in 2022 due to the capitalization of research and development expenses under Section 174 and equity-based compensation expense that has not met the rules for tax deductibility. Therefore, we expect to utilize tax benefits subject to our TRA and have recorded the associated TRA expense and a TRA liability of $ 12.2 million as of December 31, 2022, of which $ 561,000 is related to the TRA Bonus Agreement and is recorded in general and administrative expenses in the Consolidated Statement of Operations. 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 on, but is not limited to, the price of the Company’s Class A stock at the time of the relevant redemption or exchange.

Recapitalization

Recapitalization	12 Months Ended
	Dec. 31, 2022
Recapitalization [Abstract]
Recapitalization	17. Recapitalization On November 2, 2020, the Company completed a recapitalization transaction on behalf of existing unitholders. The transaction allowed existing unitholders to sell their units to new investors. In addition, option holders were offered the opportunity to exercise and sell a portion of their vested options, which were accelerated in certain cases (See Note 14, Equity-Based Compensation – Modification of option awards). In total, 132,658,542 units transferred ownership. After completion of the recapitalization transaction, entities ultimately controlled by WCAS maintained a majority interest in and control of the Company. In connection with the transaction, selling unitholders contributed $ 49.0 million for bonuses paid to employees and related payroll taxes in 2020. These amounts have been recorded as an expense in the recapitalization compensation expenses category within the consolidated statement of operations. The bonuses relate to employees from departments which have historically been recorded as expenses in the below categories in the consolidated statements of operations: Year Ended December 31, 2020 Cost of revenue $ 6,205 Research and development 8,891 Sales and marketing 7,951 General and administrative 25,951 Total recapitalization compensation $ 48,998 As of December 31, 2020, the Company calculated the actual costs incurred with the recapitalization compensation expenses and accrued $ 4.9 million to be reimbursed to unitholders as an excess contribution. The amounts were reimbursed in 2021.

Transactions with Related Parti

Transactions with Related Parties	12 Months Ended
	Dec. 31, 2022
Related Party Transactions [Abstract]
Transactions with Related Parties	Note 18. 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 year ended December 31, 2022, 2021, and 2020 the Company recognized a management fee to Principal Equity Owners of $ 2.5 million, $ 2.4 million and $ 1.6 million, respectively. In the year ended December 31, 2022, the Company accrued $ 3.2 million tax distributions payable and $ 11.6 million related to TRA Payments payable to certain Continuing Equity Owners which is expected to be paid in the fourth quarter of 2023.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2022
Subsequent Events [Abstract]
Subsequent Events	Note 19. Subsequent Events The Company authorized the issuance of 6.0 million RSUs to Company employees, inc luding 3.3 million RSUs subject to time-based vesting conditions which vest in equal annual installments on each anniversary from the grant date over a four year period , and 2.7 million R SUs subject to performance based vesting which are eligible to vest in three equal annual installments from January 1, 2023 upon the achievement of annual targets tied to annual revenue growth . All terms of performance conditions are established on the grant date. The RSUs were granted on February 20, 2023, and the Company estimated the fair value of each RSU awarded using the closing price of the Company’s shares on the NYSE on the date of the award being granted. The unrecognized compensation of these awards i s $ 114.1 million which is expected to be recognized over a weighted average period of 3.55 years.

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The consolidated financial statements and accompanying notes have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).
Principles of consolidation	Principles of consolidation The 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 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, business combinations, 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 consolidated financial statements will be affected.
Revenue Recognition	Revenue Recognition The Company earns revenue primarily from providing access to its SaaS platform solution to its customers, and to a lesser degree, from services that support the implementation on the SaaS platform. The Company recognizes revenue when it satisfies performance obligations under the terms of the contract in an amount that reflects the consideration the Company expects to receive in exchange for the services. The Company determines the appropriate amount of revenue to be recognized using the following steps: (i) identification of contracts with customers, (ii) identification of the performance obligations in the contract, (iii) determination of transaction price, (iv) allocation of contract transaction price to the performance obligations, and (v) recognition of revenue when or as the Company satisfies a performance obligation. Often contracts contain more than one performance obligation. Performance obligations are the unit of accounting for revenue recognition and generally represent the distinct services that are promised to the customer. Due to the acquisition of JUMP on November 30, 2022, the Company has an immaterial amount of revenue from selling perpetual and term-based software licenses, maintenance and support and acquired $ 3.7 million in contract assets. Contract assets (as reflected in prepaid expenses and other current assets, and non-current assets - see Note 7 to these Financial Statements) are recorded upon delivery or the license being made available to the customer, to the extent we have an unconditional right to receive payment in the future related to those licenses. The non-current portion relates to unbilled receivables from multi-year license contracts. The Company’s SaaS services allow the customer to access the services without taking possession of the software. Non-refundable fees invoiced in advance of the delivery of the Company’s performance obligations are deemed set up activities and are deferred as a material right and recognized over time, typically 12 months . After set up activities, customers typically receive benefits from implementation services prior to the “go live” date, at which point they can use the platform as intended in the arrangement. We have determined these implementation services are generally a separate performance obligation. As the Company’s platform must stand ready to provide the services throughout the contract period, revenues are recognized as the services are provided over time beginning on the date the service is made available as intended in the arrangement. Customers generally have the right to cancel with 30 days’ notice with no penalty. The Company typically bills its customers monthly in arrears based on a percentage of the average of the daily value of the assets within a customer’s accounts on the platform. Payment terms may vary by contract but generally include a requirement of payment within 30 days following the month in which services were provided. Sales tax collected from customers and remitted to governmental authorities is not included in revenue and is reflected as a liability on the Company’s consolidated balance sheets. Payment terms may vary by contract but generally include a requirement of payment within 30 days.
Costs Incurred to Obtain Revenue Contracts	Costs Incurred to Obtain Revenue Contracts The Company’s incremental direct costs of obtaining a contract consist of sales commissions which are deferred and amortized ratably over the term of economic benefit, which the Company has determined to be four years . These deferred contract costs are classified as current or non-current based on the timing of when the Company expects to recognize the expense. The current and non-current portions of deferred commissions are included in prepaid expenses and other current assets, and deferred contract costs, non-current, respectively, in the Company’s consolidated balance sheets. Recoverability of these costs is subject to various business risks. The Company compares the carrying value of these assets with the undiscounted future cash flows expected to be generated by them to determine if there is impairment. No impairment losses were recognized during the years ended December 31, 2022, 2021 and 2020.
Deferred Revenue	Deferred Revenue Deferred revenue (as reflected in accrued expenses and other current liabilities – see Note 7 to these Financial Statements) generally consists of non-refundable fees invoiced during the period in which the Company is performing set-up activities. Deferred revenue that will be recognized during the succeeding twelve-month period and is recorded as current deferred revenue .
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents consist of cash in banks and highly liquid investments, primarily money market funds, purchased with an original maturity of three months or less at the time of purchase.
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company maintains the vast majority of its cash with United States financial institutions of high credit quality. The Company performs periodic evaluations of the credit standing of such institutions. Accounts receivable are recorded net of an allowance for expected credit losses. Management’s evaluation of the adequacy of the allowance for expected credit losses considers historical collection experience, changes in customer payment terms, the aging of receivable balances, as well as current and expected economic conditions, all of which may impact a customer’s ability to pay. Receivables are written-off and charged against its recorded allowance when the Company has exhausted collection efforts without success. During the years ended December 31, 2022, 2021 and 2020, the Company did no t have any clients that contributed more than 10% of revenue. As of December 31, 2022 and 2021, the Company did no t have any clients that accounted for 10% or more of total accounts receivable.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, short-term investments, accounts receivable, accounts payable, accrued liabilities and notes payable. Cash equivalents are stated at carrying value, which approximates fair value as of the balance sheet dates, due to the short period of time to maturity. Short-term investments include held-to-maturity debt securities which are recorded at amortized cost, and available-for-sale debt securities which are recorded at fair value. Accounts receivable, accounts payable and accrued liabilities are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment. The carrying amounts reported in the consolidated balance sheets for the Company’s notes payable approximates fair value because the interest rate is variable and reflects current market values. As of December 31, 2022 and December 31, 2021, the Company has not elected the fair value option for any financial assets or liabilities for which such an election would have been permitted. The Company measures financial assets and liabilities at fair value at each reporting period using a fair value hierarchy that requires the use of observable inputs and minimizes the use of unobservable inputs. The Company defines fair value as the price that would be received from selling an asset or paid by the Company to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: • Level I – Quoted prices in active markets for identical assets or liabilities. • Level II – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level III – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. The Company measures its cash equivalents, which includes money market accounts and available-for-sale debt securities at fair value, and held-to-maturity debt securities at amortized cost, and classifies them in accordance with the fair value hierarchy on a recurring basis
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. Investments in debt securities that we have the positive intent to sell before reaching maturity are classified as available-for-sale debt securities. Available-for-sale investments are recorded at fair value, and unrealized gains or losses related to changes in fair value between periods are reported in accumulated other comprehensive income (loss). Short term investments include certificates of deposits which are classified as held-to-maturity debt securities and recorded at cost of $ 3.0 million as of December 31, 2022. During the year ended December 31, 2022, there were no unrealized gains or loss recorded related our certificates of deposits. We did no t have held-to-maturity debt securities as of December 31, 2021. Short term investments include non-US treasury securities which are classified as available-for-sale debt securities and recorded at fair value of $ 1.9 million as of December 31, 2022. Holding gains and losses for the year ended December 31, 2022 were not material and none of the available-for-sale securities were in a material unrealized loss position as of December 31, 2022. During the year ended December 31, 2022 there were no sales of available-for-sale securities. The fair value of available-for-sale securities, by contractual maturity as of December 31, 2022 was $ 1.0 million due in one year or less, and $ 0.9 million due in two to five years. We did no t have available-for-sale securities as of December 31, 2021.
Property and Equipment, Net	Property and Equipment, Net Property and equipment are stated at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, which are generally three to five years . Leasehold improvements are amortized on a straight-line basis over the shorter of the remaining lease term or the estimated useful lives of related improvements. Expenditures for repairs and maintenance are charged to expense in the period incurred. Costs associated with the development of internal use software incurred during the application and development stage are capitalized and recorded as part of property and equipment, net. Costs related to preliminary project activities and post implementation activities are expensed as incurred. Upgrades and enhancements are capitalized if the expenditures will result in adding functionality to the software. Depreciation and amortization periods for property and equipment are as follows: Property and Equipment Estimated Useful Life Computer equipment 3 years Furniture and fixtures 3 - 5 years Internally developed software 4 years Leasehold improvements Lesser of estimated useful life or remaining lease term
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment when circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of these assets is measured by a comparison of the carrying amounts to the sum of the future undiscounted cash flows the assets are expected to generate. If a long-lived asset is considered impaired, the impairment equals the amount by which the carrying value of the asset exceeds its fair value. During the years ended December 31, 2022, 2021 and 2020, we recorded an impairment loss of $ 0.1 million, $ 0.5 million and $ 0 , respectively. The impairment losses recorded in 2022 and 2021 related to abandoned capitalized software projects (See Note 7 to these Financial Statements).
Cost of Revenue	Cost of Revenue Cost of revenue consists of expenses that are related to delivery of revenue generating services, including expenses associated with client services, global delivery, reconciliation, and agreements related to the purchase of data used in the provision of the Company’s services. Certain personnel expenses associated with supporting these functions, including associated allocated overhead expenses, are also included in cost of revenue. Capitalized software costs are amortized using the straight-line method over the estimated economic life of the related software, which is generally four years , and are recorded as cost of revenue in the consolidated statements of operations.
Research and Development	Research and Development Research and development costs consist of personnel expenses, including salaries and benefits, bonuses, equity-based compensation and related overhead costs for employees engaged in the design, development and maintenance of the Company’s offerings and other internally used systems and applications.
Equity-Based Compensation	Equity-Based Compensation The Company measures and recognizes equity-based compensation expense for stock options based on the estimated fair value of equity-based awards on the date of grant using the Black-Scholes option-pricing model for options and the fair value of the equity on the date of grant for RSUs. The Company recognizes equity-based compensation expense over the requisite service period on a straight-line basis, which is generally consistent with the vesting of the awards, based on the estimated fair value of the equity-based awards issued to employees and directors that are expected to vest. Equity-based compensation that vests on a performance event, such as annual targets for the Company, begins to be recognized at the date that the performance event becomes probable, and compensation expense is recognized on a straight-line basis over any remaining service period. If there are any modifications of equity-based awards, the Company may be required to accelerate, increase, decrease, or reverse any equity-based compensation expense on the unvested awards. The Company records forfeitures when they occur for all equity-based awards. Equity-based compensation expense related to purchase rights issued under the Employee Stock Purchase Plan (“ESPP”) is based on a Black-Scholes option pricing formula to determine fair value of the estimated awards as of the beginning of the offering period. Equity-based compensation expense is recognized following the straight-line attribution method over the offering period
Income Taxes	Income Taxes We use the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and the tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets are evaluated for future realization and reduced by a valuation allowance to the extent we believe it is more likely than not that they will not be realized. We consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, carryback potential if permitted under tax law, and results of recent operations. We record uncertain tax positions in accordance with ASC 740, Income Taxes on the basis of a two-step process in which (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position, and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. We consider many factors when evaluating our uncertain tax positions, which involve significant judgment and may require periodic adjustments. The resolution of these uncertain tax positions in a manner inconsistent with management’s expectations could have a material impact on our consolidated financial statements. We recognize interest and penalties related to uncertain tax positions as a component of our provision for income taxes. Accrued interest and penalties are included with the related tax liability. We account for amounts payable under the TRA in accordance with Accounting Standards Codification (“ASC”) Topic 450, Contingencies. As such, subsequent changes to the measurement of the TRA liability are recognized in the consolidated statements of operations as tax receivable agreement expense, which is a component of other income (expense), net. Tax receivable agreement liability in the consolidated balance sheets includes both accrued amounts payable related to the TRA, and accrued amounts payable related to the TRA Bonus Agreement.
Debt Issuance Costs	Debt Issuance Costs Debt issuance costs are amortized over the period the related obligation is outstanding using the effective interest method. Debt issuance costs related to the term note are included within notes payable on the consolidated balance sheet. Debt issuance costs associated with the line of credit are included as a non-current asset on the consolidated balance sheets. Amortization of debt issuance costs are included in interest (income) expense in the consolidated statements of operations.
Comprehensive Loss	Comprehensive Loss Comprehensive loss is comprised of two elements: net loss and other comprehensive loss. Other comprehensive loss refers to losses that are recorded as an element of stockholders’ equity but are excluded from the Company’s net loss. For all periods presented, the Company’s other comprehensive loss is comprised of foreign currency translation adjustments related to its foreign subsidiaries.
Foreign Currency	Foreign Currency The functional currencies of the Company’s foreign subsidiaries are their local currencies. The assets and liabilities of the Company’s foreign subsidiaries are translated at the spot rate in effect at the applicable reporting date, and the consolidated statements of operations are translated at the average exchange rates in effect during the applicable period. The resulting unrealized cumulative translation adjustment is recorded as a component of accumulated other comprehensive loss in stockholders' equity. The Company has transactions in foreign currencies other than the functional currency. Transactions denominated in currencies other than the functional currency are recorded based on exchange rates at the time the transactions occur. Subsequent changes in exchange rates result in transaction gains and losses which are reflected in the consolidated statements of operations as unrealized (based on the applicable period-end exchange rate) or realized upon settlement of the transactions. Foreign currency gains and losses resulting from transactions denominated in a currency other than the functional currency are included in other (income) expense, net in the consolidated statements of operations. During the years ended December 31, 2022, 2021 and 2020, the Company recognized net foreign currency gains (losses) of $ 86,000 , ($ 83,000 ), and ($ 38,000 ), respectively.
Non-Controlling Interests	Non-Controlling Interests The non-controlling interests balance represents the economic interests in CWAN Holdings held by Continuing Equity Owners, based on the portion of Class B and Class C common stock owned by Continuing Equity Owners. Income or loss is attributed to the non-controlling interests based on the weighted-average Class B and Class C common stock outstanding during the period. As of December 31, 2022, the non-controlling interests owned 20.3 % of CWAN Holdings. The non-controlling interests' ownership percentage can fluctuate over time as Continuing Equity Owners elect to exchange Class B and Class C common stock for Class A and Class D common stock of Clearwater Analytics Holdings, Inc.
Net Loss Per Share	Net Loss Per Share Basic net loss per share is computed by dividing net loss attributable to Clearwater Analytics Holdings, Inc. for the period following the Transactions by the weighted-average number of shares of Class A and Class D common stock during the same period. Diluted net loss per share of Class A and Class D common stock is computed by dividing net income attributable to Clearwater Analytics Holdings, Inc., adjusted for the assumed exchange of all potentially dilutive instruments for Class A and Class D common stock and shares issuable under the ESPP, by the weighted-average number of shares of Class A and Class D common stock outstanding, adjusted to give effect to potentially dilutive elements. The dilutive effect of outstanding awards, if any, is reflected in diluted earnings per share by application of the treasury stock method or if-converted method, as applicabl e.
Business Combinations	Business Combinations We include the results of operations of the businesses that we acquire beginning as of the respective dates of acquisition. We allocate the fair value of the purchase price of our acquisitions to the assets acquired and liabilities assumed, generally based on their estimated fair values. The excess of the purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired technology, useful lives, royalty rates, and discount rates. Additional information existing as of the acquisition date but unknown to us may become known during the remainder of the measurement period, not to exceed 12 months from the acquisition date, which may result in changes to the amounts and allocations recorded .
Intangible Assets	Intangible Assets Purchased intangible assets with finite lives are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets. Finite-lived intangible assets are evaluated for impairment when impairment indicators are present. No impairment charge was recorded for the year ended December 31, 2022.
Impairment of Goodwill	Impairment of Goodwill Goodwill is evaluated for impairment on an annual basis in the fourth quarter of our fiscal year, and whenever events or changes in circumstances indicate the carrying amount of goodwill may not be recoverable. We have elected to first assess qualitative factors to determine whether it is more likely than not that the fair value of our single reporting unit is less than its carrying amount, including goodwill. If we determine that it is more likely than not that the fair value is less than its carrying amount, then the quantitative impairment test will be performed. Under the quantitative impairment test, if the carrying amount exceeds its fair value, we will recognize an impairment loss in an amount equal to that excess but limited to the total amount of goodwill.
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 ba sed on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. The Company does not have any finance leases. The adoption of this standard did not have a material impact on the Company's results of operations or cash flows. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The ASU provides an exception for companies to apply revenue guidance to recognize and measure contract assets and liabilities from contracts with customers acquired in a business combination on the acquisition date, instead of measuring them at fair value. The standard is effective for public companies for annual periods beginning after December 15, 2022, including interim periods therein. Early adoption is permitted for both interim and annual financial statements. We early adopted this guidance in our fourth quarter of fiscal 2022 on a prospective basis. The adoption of this standard did not have a material impact on our consolidated financial statements.

Organization and Description _2

Organization and Description of Business (Tables)	12 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Classes of Common Stock	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 Sum_3

Basis of Presentation and Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Summary of Depreciation and Amortization for Property and Equipment	Depreciation and amortization periods for property and equipment are as follows: Property and Equipment Estimated Useful Life Computer equipment 3 years Furniture and fixtures 3 - 5 years Internally developed software 4 years Leasehold improvements Lesser of estimated useful life or remaining lease term

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 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 December 31, 2022 and December 31, 2021 in accordance with the fair value hierarchy (in thousands): December 31, 2022 Level I Level II Level III Total Financial Assets: Cash equivalents: Money market funds $ 243,387 $ — $ — $ 243,387 Short-term investments: Certificates of deposit — 3,000 — $ 3,000 Non-US Treasury securities — 1,890 — $ 1,890 Total assets measured at fair value $ 243,387 $ 4,890 $ — $ 248,277 December 31, 2021 Level I Level II Level III Total Financial Assets: Cash equivalents: Money market funds $ 248,744 $ — $ — $ 248,744 Total assets measured at fair value $ 248,744 $ — $ — $ 248,744

Business Combinations (Tables)

Business Combinations (Tables)	12 Months Ended
	Dec. 31, 2022
Business Combinations [Abstract]
Schedule of Fair Value of Assets Acquired and Liabilities Assumed	The preliminary allocated fair value is summarized as follows (in thousands): Fair Value Cash and cash equivalents $ 4,353 Short-term investments 1,832 Accounts receivable 3,186 Operating lease right-of-use asset 3,715 Other assets 5,776 Intangible assets 28,890 Goodwill 42,450 Operating lease liability ( 3,622 ) Deferred tax liability ( 5,670 ) Other liabilities ( 3,765 ) Total consideration 77,145 Deferred consideration related to indemnification holdback ( 6,999 ) Cash acquired ( 4,353 ) Cash paid for acquisition of business, net of cash acquired $ 65,793
Schedule of Preliminary Fair Values of Identified Intangible Assets Acquired	The following table presents details of the preliminary fair values of identified intangible assets acquired (in thousands, except years): Fair Value Estimated Useful Life Developed technology $ 24,317 7 years Customer relationships 4,261 13 years Trade name / Trademarks 312 2 years Total $ 28,890

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule Of Goodwill	The following table presents details of our goodwill during the year ended December 31, 2022 (in thousa nds): Amount Balance as of December 31, 2021 $ — Goodwill acquired 42,450 Foreign currency translation adjustments 1,341 Balance as of December 31, 2022 $ 43,791
Schedule Of Purchased Intangible Assets	The following table presents details of our purchased intangible assets (in thousands): December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life (In Years) Intangible assets with finite lives: Developed technology $ 25,086 $ ( 255 ) $ 24,831 6.9 Customer relationships 4,395 ( 29 ) 4,366 12.9 Trade name / Trademarks 322 ( 63 ) 259 1.9 Total intangible assets $ 29,803 $ ( 347 ) $ 29,456
Schedule of Estimated Future Amortization Expense of Intangible Assets	The following table summarizes estimated future amortization expense of our intangible assets subject to amortization as of December 31, 2022 (in thousands): Fiscal Years Total 2023 2024 2025 2026 2027 and Thereafter Total future amortization expense $ 29,456 $ 4,076 $ 4,069 $ 3,922 $ 3,922 $ 13,467

Balance Sheet Components (Table

Balance Sheet Components (Tables)	12 Months Ended
	Dec. 31, 2022
Balance Sheet Related Disclosures [Abstract]
Schedule of Accounts Receivable, Net	Accounts receivable, net consisted of the following (in thousands): December 31, 2022 2021 Unbilled accounts receivable $ 30,963 $ 27,086 Billed accounts receivable 41,718 23,227 Allowance for doubtful accounts and reserves ( 106 ) ( 123 ) Accounts receivable, net $ 72,575 $ 50,190
Schedule of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consisted of the following (in thousands): December 31, 2022 2021 Prepaid expenses $ 14,947 $ 11,722 Deferred contract costs, current portion 4,215 3,573 Contract assets 2,518 — Tax receivable 2,602 — Other receivable 1,540 — Other current assets 2,335 1,256 Prepaid expense and other current assets $ 28,157 $ 16,551
Schedule of Property and Equipment, Net	Property and equipment, net consisted of the following (in thousands): December 31, 2022 2021 Computer equipment $ 12,794 $ 13,886 Leasehold improvements 3,575 3,045 Furniture and fixtures 1,207 1,126 Internally developed software 11,561 4,925 Construction in progress 379 — Total property and equipment 29,516 22,982 Less: accumulated depreciation ( 14,452 ) ( 12,244 ) Total property and equipment, net $ 15,064 $ 10,738
Schedule of Other Non-current Assets	Other Non-current assets consisted of the following (in thousands): December 31, 2022 2021 Prepaid management fee to Principal Equity Owners $ 2,009 $ 4,405 Long term deposits 861 178 Long term contract asset 1,191 — Prepaid IT services 259 412 Deferred tax asset 1,560 675 Other non-current assets $ 5,880 $ 5,670
Schedule of Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities consisted of the following (in thousands): December 31, 2022 2021 Accrued sales tax exposure $ 408 $ 1,444 Accrued interest 548 9 Accrued bonus 10,005 8,295 Accrued vendor liabilities 4,811 4,756 Accrued benefits and retirement 10,566 4,368 Acquisition holdback liability 3,770 — Deferred revenue 1,185 795 Accrued commissions 2,709 2,350 Deferred rent — 1,514 Income tax payable 920 771 Tax distributions payable to Continuing Equity Owners 3,196 169 Other current liabilities 4,001 2,561 Accrued expenses and other liabilities $ 42,119 $ 27,032
Schedule of Other Long-term Liabilities	Other long-term liabilities consisted of the following (in thousands): December 31, 2022 2021 Asset retirement obligation $ 119 $ 132 Deferred revenue — — Acquisition holdback liability 3,496 — Deferred tax liabilities 5,932 — Other long-term liabilities $ 9,547 $ 132

Credit Agreement (Tables)

Credit Agreement (Tables)	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Schedule of Future Maturities of Debt	Future maturities of debt as of December 31, 2022 are as follows: For the year ending December 31, 2023 $ 2,750 2024 2,750 2025 2,750 2026 43,313 2027 — Thereafter — Total principal debt 51,563 Unamortized loan costs ( 321 ) Net carrying amount $ 51,242

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2022
Leases [Abstract]
Impact of Adopting Topic 842 on Consolidated Balance Sheets	The following table summarizes the impacts of adopting Topic 842 on the Company's consolidated balance sheets as of January 1, 2022 (in thousands): As Reported Balance as of January 1, 2022 Adjustments due to As Adjusted Balance as of January 1, 2022 Assets Operating lease right-of-use assets $ — $ 23,091 $ 23,091 Liabilities Accrued expenses and other liabilities $ 27,032 $ ( 1,514 ) $ 25,518 Operating lease liability, current portion $ — $ 4,948 $ 4,948 Operating lease liability, less current portion $ — $ 19,657 $ 19,657
Schedule of Future Minimum Lease Payments under Non-cancellable Operating Leases	Future minimum lease payments at December 31, 2022 under the Company's non-cancellable leases were as follows: For the year ending December 31, 2023 $ 6,727 2024 6,356 2025 6,434 2026 5,785 2027 2,088 Thereafter 158 Total future minimum lease payments 27,548 Less: Imputed interest ( 2,192 ) Present value of future minimum lease payments 25,356 Less: Current portion of operating lease liability ( 5,851 ) Operating lease liabilities - noncurrent $ 19,505
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 year ended December 31, 2022 (in thousands, except for weighted average and percentage data): Weighted average remaining lease term 4.21 Weighted average discount rate 3.98 % Cash paid for amounts included in the measurement of lease liabilities $ 4,949 Noncash right-of-use assets obtained in exchange for operating lease obligations (1) $ 2,936 (1) Amount includes (i) $ 3.5 million related to the Company entering into new non-cancellable operating lease agreements during 2022 and (ii) 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. Rent expense was $ 3.9 million and $ 3.4 million for the year ended December 31, 2021 and 2020, respectively. Future minimum lease payments under non-cancelable leases as of December 31, 2021 under ASC 840 were (in thousands) : For the year ending December 31, 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 Leases	Future minimum lease payments under non-cancelable leases as of December 31, 2021 under ASC 840 were (in thousands) : For the year ending December 31, 2022 $ 3,927 2023 3,843 2024 3,649 2025 3,434 2026 3,007 Thereafter 809 Total minimum lease payments $ 18,669

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Purchase Obligations	The following is a schedule of future minimum purchase obligations as of December 31, 2022 (in thousands): For the year ending December 31, 2023 $ 12,661 2024 11,968 2025 4,553 2026 610 2027 241 Total future purchase obligations $ 30,033

Non-controlling Interest (Table

Non-controlling Interest (Tables)	12 Months Ended
	Dec. 31, 2022
Noncontrolling Interest [Abstract]
Schedule of Ownership of Non-controlling Interest	December 31, 2022 December 31, 2021 Shares Ownership % Shares Ownership % Clearwater Analytics Holdings, Inc. interest in CWAN Holdings 191,232,645 79.7 % 178,032,643 75.3 % Continuing Equity Owners' interest in CWAN Holdings 48,816,838 20.3 % 58,528,697 24.7 % 240,049,483 100.0 % 236,561,340 100.0 %

Loss Per Share (Tables)

Loss Per Share (Tables)	12 Months Ended
	Dec. 31, 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): Year Ended December 31, 2022 2021 Numerator: Net loss $ ( 6,695 ) $ ( 8,094 ) Less: Net income attributable to CWAN Holdings prior to the Transactions — 2,829 Less: Net income (loss) attributable to non-controlling interests 1,272 ( 2,710 ) Net loss attributable to Clearwater Analytics Holdings, Inc. - basic and diluted ( 7,967 ) ( 8,213 ) The following table 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): Year Ended December 31, 2022 Year Ended December 31, 2021 Class A Class D Class A Class D Basic and diluted net loss attributable to Class A and Class D common stockholders Numerator: Allocation of net loss attributable to Clearwater Analytics, Inc. $ ( 2,382 ) $ ( 5,585 ) $ ( 2,200 ) $ ( 6,013 ) Denominator: Weighted average number of shares of Class A and Class D common stock outstanding - basic and diluted (1) 55,476,928 130,083,755 47,596,752 130,083,755 Basic and diluted net loss per share attributable to Class A and Class D common stockholders $ ( 0.04 ) $ ( 0.04 ) $ ( 0.05 ) $ ( 0.05 ) (1) Weighted average number of shares of Class A and Class D common stock outstanding for the year ended December 31, 2021 represents only the period from September 24, 2021 to December 31, 2021, which represents the period wherein we had outstanding Class A and Class D common stock.
Schedule of Weighted-average Potentially Dilutive Securities Excluded from Diluted Net Loss Per Share	Year Ended December 31, 2022 2021 Conversion of Class B and Class C common stock 52,301,672 58,528,697 Stock options of Clearwater Analytics Holdings, Inc. 10,280,184 14,575,237 RSUs of Clearwater Analytics Holdings, Inc. 1,342,284 1,514,207 Employee stock purchase plans 179,314 262,139 Total 64,103,454 74,880,280

Equity-Based Compensation (Tabl

Equity-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Summary of Stock Option Activity	The following table summarizes the stock option activity for the year ended December 31, 2022, 2021 and 2020 (in thousands, except per share data): Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Balance - December 31, 2019 15,841,250 $ 4.88 8.55 $ 2,770 Granted 6,626,178 5.12 Exercised ( 6,796,126 ) 4.24 54,747 Forfeited ( 778,130 ) 4.24 Balance - December 31, 2020 14,893,172 $ 4.60 9.19 $ 116,029 Granted 10,303,307 13.49 Exercised ( 1,124,740 ) 4.35 16,346 Forfeited ( 1,756,568 ) 7.23 Balance - December 31, 2021 22,315,171 $ 8.52 6.25 $ 322,877 Granted 43,986 18.19 Exercised ( 2,950,662 ) 7.45 $ 31,341 Forfeited ( 1,653,725 ) 11.16 Balance - December 31, 2022 17,754,770 $ 8.47 7.06 $ 183,315 Options vested - December 31, 2022 9,401,413 $ 6.98 $ 110,894
Summary of RSU Activity	The summary of RSU activity 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, 2020 — $ — $ — Granted 6,162,095 17.84 Released — — — Canceled ( 91,427 ) 18.03 — Unvested units as of December 31, 2021 6,070,668 $ 17.84 $ 138,958 Granted 4,745,363 18.86 — Released ( 588,854 ) 17.54 — Canceled ( 699,829 ) 18.47 — Unvested units as of December 31, 2022 9,527,348 $ 18.32 $ 178,638
Schedule of Assumptions Used to Calculate Fair Value of Stock Options Granted	The following assumptions were used to calculate the fair value of stock options granted to employees on the date of grant using the Black-Scholes option-pricing model: Year Ended December 31, 2022 2021 2020 Weighted-average grant date fair value per option $ 7.74 $ 5.11 $ 1.60 Fair value of units/ stock $ 17.72 - $ 18.68 $ 12.40 - $ 23.89 $ 4.40 - $ 12.40 Expected term (in years) 5.5 6.00 - 6.25 6.25 Expected volatility 44 % 40 - 42 % 30 % Risk-free interest rates 1.8 - 2.0 % 0.6 - 1.3 % 0.4 - 1.7 %
Schedule of Assumptions Used to Calculate Fair Value of Purchase Right for ESPP	The fair value of the purchase right for the ESPP is estimated on the date of grant using the Black-Scholes model with the following assumptions for the year ended December 31, 2021: Year Ended December 31, 2022 Year Ended December 31, 2021 Expected volatility 34.9 - 57.1 % 34.9 % Risk-free interest rate 0.1 - 4.6 % 0.1 % Expected term (years) 0.5 0.5

Segment and Geographic Inform_2

Segment and Geographic Information (Tables)	12 Months Ended
	Dec. 31, 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): Year Ended December 31, 2022 2021 2020 United States $ 261,755 $ 229,482 $ 183,745 Rest of World 41,671 22,540 19,477 Total revenue $ 303,426 $ 252,022 $ 203,222
Summary of Long-lived Assets Disaggregated by Geography	The following table presents the Company’s long-lived assets including property, plant and equipment, net, operating lease right-of-use assets, net, and intangibles assets, net, disaggregated by geography (in thousands): Year Ended December 31, 2022 2021 2020 United States $ 28,179 $ 9,297 $ 7,566 Rest of World 40,455 1,441 1,283 Total long-lived assets, net $ 68,634 $ 10,738 $ 8,849

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Summary of Net Income (Loss) Before Provision for Income Taxes	The components of the net income (loss) before the provision for income taxes were as follows (in thousands): Year Ended December 31, 2022 2021 2020 Domestic $ ( 9,306 ) $ ( 11,117 ) $ ( 46,789 ) Foreign 3,971 3,510 3,461 Total $ ( 5,335 ) $ ( 7,607 ) $ ( 43,328 )
Schedule of Provision for Income Taxes	The provision for income taxes was as follows (in thousands): Year Ended December 31, 2022 2021 2020 Federal $ — $ — $ — State 491 111 29 International 1,737 1,055 873 Total current income tax expense $ 2,228 $ 1,166 $ 902 Federal — — — State ( 3 ) ( 13 ) — International ( 865 ) ( 666 ) — Total deferred income tax expense $ ( 868 ) $ ( 679 ) $ — Total provision for income taxes $ 1,360 $ 487 $ 902
Schedule of Provision for Income Taxes Differs from Amount Computed by Statutory Federal Rate	The provision for income taxes differs from the amount computed by applying the statutory federal rate as follows (in thousands, except percentages): Year Ended December 31, 2022 2021 2020 Tax at federal statutory rate $ ( 1,120 ) $ ( 1,597 ) $ ( 9,099 ) Noncontrolling interest and nontaxable income ( 41 ) 643 9,825 State taxes ( 1,592 ) ( 1,935 ) 29 Foreign rate differential 92 54 ( 12 ) Executive compensation deduction limitations 5,544 — — Global intangible low taxed income inclusion 1,854 845 — Equity-based compensation ( 2,316 ) ( 1,746 ) — Permanent items 394 ( 57 ) — Tax credits and incentives ( 1,623 ) ( 55 ) — Return to provision ( 38,107 ) ( 320 ) — Changes in tax law 63,504 — — Valuation allowance ( 25,356 ) 4,652 — Other 127 3 159 Total $ 1,360 $ 487 $ 902 Effective tax rate ( 25.5 %) ( 6.4 %) ( 2.1 %)
Schedule of Significant Components of Deferred Income Tax Assets	Deferred income taxes result from differences in the recognition of amounts for tax and financial reporting purposes, as well as operating loss and tax credit carryforwards. Significant components of our deferred income tax assets and liabilities are as follows (in thousands): Year Ended December 31, 2022 2021 Investment in Partnership $ 336,276 $ 311,858 Loss and tax credit carryforwards 80,711 75,931 Equity-based compensation 8,336 7,935 Lease liability 2,057 — Other 1,099 186 Total deferred tax assets $ 428,479 $ 395,910 Valuation allowance ( 422,555 ) ( 395,220 ) Net deferred tax asset $ 5,924 $ 690 Intangible assets ( 7,364 ) — Right of use asset ( 1,988 ) — Revenue ( 833 ) — Other ( 111 ) ( 15 ) Total deferred tax liabilities ( 10,296 ) ( 15 ) Net deferred tax liabilities $ ( 4,372 ) $ 675
Schedule of Reconciliation of Unrecognized Tax Benefits	A reconciliation of the beginning and ending balance of total unrecognized tax benefits is as follows (in thousands): Year Ended December 31, 2022 2021 2020 Balance - Beginning of Year $ 3,548 $ — $ — Increases related to current year's tax positions 959 89 — Increases related to organizational transactions — 3,455 Increases (decreases) related to prior year's tax positions ( 182 ) 3 — Decreases related to lapse of statute ( 487 ) — — Increases related to exchanges 94 1 — Balance - End of Year $ 3,932 $ 3,548 $ —

Recapitalization (Tables)

Recapitalization (Tables)	12 Months Ended
	Dec. 31, 2022
Recapitalization [Abstract]
Summary of Recapitalization Compensation Expenses	In connection with the transaction, selling unitholders contributed $ 49.0 million for bonuses paid to employees and related payroll taxes in 2020. These amounts have been recorded as an expense in the recapitalization compensation expenses category within the consolidated statement of operations. The bonuses relate to employees from departments which have historically been recorded as expenses in the below categories in the consolidated statements of operations: Year Ended December 31, 2020 Cost of revenue $ 6,205 Research and development 8,891 Sales and marketing 7,951 General and administrative 25,951 Total recapitalization compensation $ 48,998

Organization and Description _3

Organization and Description of Business - Additional Information (Details) $ / shares in Units, $ in Thousands		12 Months Ended
	Sep. 28, 2021 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) Offices shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2020 USD ($)
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	5,131
Repayment of borrowings		$ 2,750	$ 434,919	$ 21,557
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		79.70%	75.30%
Percentage of continuing equity ownership interest		20.30%	24.70%
Class A
Subsidiary, Sale of Stock [Line Items]
Common stock, shares issued | shares		61,148,890	47,948,888
Class B
Subsidiary, Sale of Stock [Line Items]
Common stock, shares issued | shares	11,151,110	1,439,251	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)	12 Months Ended
	Dec. 31, 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_4

Basis of Presentation and Summary of Significant Accounting Policies- Additional Information (Details)		12 Months Ended
	Nov. 30, 2022 USD ($)	Dec. 31, 2022 USD ($) Customer	Dec. 31, 2021 USD ($) Customer	Dec. 31, 2020 USD ($) Customer
Basis of Presentation and Summary of Significant Accounting Policies [Line Items]
General payment period from customers for credit sales		30 days
Notice period to cancel the service contract with no penalty		30 days
Economic benefit period of revenue contracts		4 years
Impairment losses		$ 0	$ 0	$ 0
Estimated period to recognize deferred revenue			12 months
Number of customers more than 10% of revenue | Customer		0	0	0
Number of customers more than 10% of accounts receivables | Customer		0	0
impairment loss		$ 100,000	$ 500,000	$ 0
Foreign currency transaction gain (loss)		86,000	(83,000)	$ (38,000)
Impairment charge		$ 0
JUMP Technology
Basis of Presentation and Summary of Significant Accounting Policies [Line Items]
Acquired contract assets	$ 3,700,000
CWAN Holdings
Basis of Presentation and Summary of Significant Accounting Policies [Line Items]
Percentage of non-controlling interest owners		20.30%
Certificates Of Deposit
Basis of Presentation and Summary of Significant Accounting Policies [Line Items]
Cost of held-to-maturity debt securities		$ 3,000,000	0
Unrealized gains or loss on short term investments		0
Non-US Treasury Securities
Basis of Presentation and Summary of Significant Accounting Policies [Line Items]
Fair value of available-for-sale debt securities		1,900,000	$ 0
Sale of available-for-sale securities		0
Fair value of available-for-sale securities, due in one year or less		1,000,000
Fair value of available-for-sale securities, due in two to five years		$ 900,000
Capitalized Software
Basis of Presentation and Summary of Significant Accounting Policies [Line Items]
Estimated useful lives of property and equipment		4 years
Maximum
Basis of Presentation and Summary of Significant Accounting Policies [Line Items]
Estimated useful lives of property and equipment		5 years
Minimum
Basis of Presentation and Summary of Significant Accounting Policies [Line Items]
Estimated useful lives of property and equipment		3 years
Expected realized income tax benefit tax authority		50%
ASU 2016-02
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		$ 1,500,000
Expected ROU asset		23,100,000
Expected lease liability		$ 24,600,000
ASU 2021-08
Basis of Presentation and Summary of Significant Accounting Policies [Line Items]
Change in accounting principle, accounting standards update, adoption date		Dec. 31, 2022
Change in accounting principle, accounting standards update, immaterial effect [true false]		true
Change in Accounting Principle, Accounting Standards Update, Early Adoption [true false]		true

Basis of Presentation and Sum_5

Basis of Presentation and Summary of Significant Accounting Policies - Summary of Depreciation and Amortization for Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2022
Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives of property and equipment	3 years
Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives of property and equipment	5 years
Computer equipment
Property, Plant and Equipment [Line Items]
Estimated useful lives of property and equipment	3 years
Furniture and fixtures | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives of property and equipment	3 years
Furniture and fixtures | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives of property and equipment	5 years
Internally developed software
Property, Plant and Equipment [Line Items]
Estimated useful lives of property and equipment	4 years
Leasehold improvements
Property, Plant and Equipment [Line Items]
Estimated useful life of property and equipment description	Lesser of estimated useful life or remaining lease term

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Deferred revenue recognized	$ 0.4	$ 0.7

Revenue Recognition - Additio_2

Revenue Recognition - Additional Information 1 (Details)	Dec. 31, 2022
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, expected timing of satisfaction, period	1 year

Revenue Recognition - Revenue E

Revenue Recognition - Revenue Expected to be Recognized in the Future (Details)	Dec. 31, 2022
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, expected timing of satisfaction, period	1 year

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Financial Assets Measured at Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Assets, Fair Value Disclosure [Abstract]
Total assets measured at fair value	$ 248,277	$ 248,744
Money market funds
Assets, Fair Value Disclosure [Abstract]
Cash equivalents	243,387	248,744
Certificates Of Deposit
Assets, Fair Value Disclosure [Abstract]
Short-term investments	3,000
Non-US Treasury securities
Assets, Fair Value Disclosure [Abstract]
Short-term investments	1,890
Level 1
Assets, Fair Value Disclosure [Abstract]
Total assets measured at fair value	243,387	248,744
Level 1 | Money market funds
Assets, Fair Value Disclosure [Abstract]
Cash equivalents	243,387	$ 248,744
Level 2
Assets, Fair Value Disclosure [Abstract]
Total assets measured at fair value	4,890
Level 2 | Certificates Of Deposit
Assets, Fair Value Disclosure [Abstract]
Short-term investments	3,000
Level 2 | Non-US Treasury securities
Assets, Fair Value Disclosure [Abstract]
Short-term investments	$ 1,890

Fair Value Measurements - Addit

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

Business Combinations - Additio

Business Combinations - Additional Information (Details) € in Millions, $ in Millions			12 Months Ended
	Nov. 30, 2022 EUR (€) shares	Nov. 30, 2022 USD ($) shares	Dec. 31, 2022 USD ($) shares	Dec. 31, 2021 shares
Business Acquisition [Line Items]
Revenue			$ 2.7
Net income			$ 1.1
RSUs
Business Acquisition [Line Items]
RSU equity awards granted | shares			4,745,363	6,162,095
JUMP Technology
Business Acquisition [Line Items]
Acquisition Of Outstanding Common Shares	100%	100%
Total purchase consideration of acquisition	€ 75	$ 77.1
Purchase consideration, cash | €	67.5
Business combination cash to be paid consideration over subsequent two years subject to no indemnification claims being submitted | €	€ 7.5
Acquisition-related costs		$ 1.7
Equity-based compensation			$ 1.8
JUMP Technology | RSUs
Business Acquisition [Line Items]
RSU equity awards granted | shares	3,200,000	3,200,000
RSUs equity awards vesting period			4 years

Business Combinations - Summary

Business Combinations - Summary of Fair Value of Assets Acquired And Liabilities Assumed (Details) - USD ($) $ in Thousands		12 Months Ended
	Nov. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Goodwill		$ 43,791
Cash paid for acquisition of business, net of cash acquired		$ 65,793
JUMP Technology
Business Acquisition [Line Items]
Cash and cash equivalents	$ 4,353
Short-term investments	1,832
Accounts receivable	3,186
Operating lease right-of-use asset	3,715
Other assets	5,776
Intangible assets	28,890
Goodwill	42,450
Operating lease liability	(3,622)
Deferred tax liability	(5,670)
Other liabilities	(3,765)
Total consideration	77,145
Deferred consideration related to indemnification holdback	(6,999)
Cash acquired	(4,353)
Cash paid for acquisition of business, net of cash acquired	$ 65,793

Business Combinations - Schedul

Business Combinations - Schedule of Preliminary Fair Values of Identified Intangible Assets Acquired (Details) - USD ($) $ in Thousands		12 Months Ended
	Nov. 30, 2022	Dec. 31, 2022
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 28,890
Developed Technology Rights [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 24,317
Estimated Useful Life	7 years	6 years 10 months 24 days
Customer Relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 4,261
Estimated Useful Life	13 years	12 years 10 months 24 days
Trade name / Trademarks
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 312
Estimated Useful Life	2 years	1 year 10 months 24 days

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Schedule Of Goodwill (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Balance as of December 31, 2021
Goodwill acquired	42,450
Foreign currency translation adjustments	1,341
Balance as of December 31, 2022	$ 43,791

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Schedule Of Purchased Intangible Assets (Details) - USD ($) $ in Thousands		12 Months Ended
	Nov. 30, 2022	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount		$ 29,803
Accumulated Amortization		(347)
Total intangible assets		29,456
Developed technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount		25,086
Accumulated Amortization		(255)
Total intangible assets		$ 24,831
Weighted Average Remaining Useful Life (In Years)	7 years	6 years 10 months 24 days
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount		$ 4,395
Accumulated Amortization		(29)
Total intangible assets		$ 4,366
Weighted Average Remaining Useful Life (In Years)	13 years	12 years 10 months 24 days
Trade name / Trademarks
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount		$ 322
Accumulated Amortization		(63)
Total intangible assets		$ 259
Weighted Average Remaining Useful Life (In Years)	2 years	1 year 10 months 24 days

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Additional Information (Details) $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 0.4

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets - Schedule of Estimated Future Amortization Expense of Intangible Assets (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2023	$ 4,076
2024	4,069
2025	3,922
2026	3,922
2027 and Thereafter	13,467
Total intangible assets	$ 29,456

Balance Sheet Components - Sche

Balance Sheet Components - Schedule of Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Receivables [Abstract]
Unbilled accounts receivable	$ 30,963	$ 27,086
Billed accounts receivable	41,718	23,227
Allowance for doubtful accounts and reserves	(106)	(123)
Accounts receivable, net	$ 72,575	$ 50,190

Balance Sheet Components - Sc_2

Balance Sheet Components - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid expenses	$ 14,947	$ 11,722
Deferred contract costs, current portion	4,215	3,573
Contract assets	2,518
Tax receivable	2,602
Other receivable	1,540
Other current assets	2,335	1,256
Prepaid expense and other current assets	$ 28,157	$ 16,551

Balance Sheet Components - Sc_3

Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 29,516	$ 22,982
Less: accumulated depreciation	(14,452)	(12,244)
Total property and equipment, net	15,064	10,738
Computer equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	12,794	13,886
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	3,575	3,045
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment	1,207	1,126
Internally developed software
Property, Plant and Equipment [Line Items]
Total property and equipment	11,561	$ 4,925
Construction in progress
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 379

Balance Sheet Components - Addi

Balance Sheet Components - Additional Information - (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 4,800,000	$ 3,500,000	$ 2,300,000
Abandoned capitalized software projects, fair value	0	0
Internally developed software capitalized in equity-based compensation	500,000	500,000
Impairment losses capitalized software project	$ 100,000	$ 500,000	$ 0

Balance Sheet Components - Sc_4

Balance Sheet Components - Schedule of Other Non-current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Other Assets, Noncurrent [Abstract]
Prepaid management fee to Principal Equity Owners	$ 2,009	$ 4,405
Long term deposits	861	178
Long term contract asset	1,191
Prepaid IT services	259	412
Deferred tax asset	1,560	675
Other non-current assets	$ 5,880	$ 5,670

Balance Sheet Components - Sc_5

Balance Sheet Components - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Accounts Payable and Accrued Liabilities, Current [Abstract]
Accrued sales tax exposure	$ 408	$ 1,444
Accrued interest	548	9
Accrued bonus	10,005	8,295
Accrued vendor liabilities	4,811	4,756
Accrued benefits and retirement	10,566	4,368
Acquisition holdback liability	3,770
Deferred revenue	1,185	795
Accrued commissions	2,709	2,350
Deferred rent		1,514
Income tax payable	920	771
Tax distributions payable to Continuing Equity Owners	3,196	169
Other current liabilities	4,001	2,561
Accrued expenses and other liabilities	$ 42,119	$ 27,032

Balance Sheet Components - Sc_6

Balance Sheet Components - Schedule of Other Long-term Liabilitites (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Other Liabilities, Noncurrent [Abstract]
Asset retirement obligation	$ 119	$ 132
Deferred revenue	0
Acquisition holdback liability	3,496
Deferred tax liabilities	5,932
Other long-term liabilities	$ 9,547	$ 132

Credit Agreement - Additional I

Credit Agreement - Additional Information (Details)		12 Months Ended
	Sep. 28, 2021 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Oct. 19, 2020 USD ($)
Line of Credit Facility [Line Items]
Loss on extinguishment of debt			$ 10,303,000
Previous Credit Agreement | Ares Capital Corporation and Golub Capital LLC
Line of Credit Facility [Line Items]
Outstanding borrowings				$ 432,700,000
Repayment of debt	$ 432,700,000
Previous Credit Agreement | Ares Capital Corporation and Golub Capital LLC | Term Loan
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity				435,000,000
Previous Credit Agreement | Ares Capital Corporation and Golub Capital LLC | Revolving Line of Credit
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity				$ 30,000,000
New Credit Agreement
Line of Credit Facility [Line Items]
Unused commitment fee percentage		0.25%
Debt instrument amortization percentage		5%
Debt instrument frequency of periodic payment		quarterly
New Credit Agreement | Maximum
Line of Credit Facility [Line Items]
Unused commitment fee percentage		0.30%
Secured net indebtedness to EBITDA ratio		4.75
New Credit Agreement | Base Rate
Line of Credit Facility [Line Items]
Debt instrument, description of variable rate basis		base rate plus an applicable margin of 0.75%
Debt instrument, basis spread on variable rate		0.75%
Step-up percentage of variable rate		0.25%
New Credit Agreement | LIBOR
Line of Credit Facility [Line Items]
Debt instrument, description of variable rate basis		LIBOR rate plus an applicable margin of 1.75%
Debt instrument, basis spread on variable rate		1.75%
Step-up percentage of variable rate		0.25%
New Credit Agreement | JPMorgan Chase Bank, N.A | Term Loan
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity		$ 55,000,000
New Credit Agreement | JPMorgan Chase Bank, N.A | Revolving Line of Credit
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity		$ 125,000,000

Credit Agreement - Schedule of

Credit Agreement - Schedule of Future Maturities of Debt (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Debt Disclosure [Abstract]
2023	$ 2,750
2024	2,750
2025	2,750
2026	43,313
Total principal debt	51,563
Unamortized loan costs	(321)
Net carrying amount	$ 51,242

Employee Retirement Plan - Addi

Employee Retirement Plan - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Retirement Benefits [Abstract]
Contributions to retirement plan	$ 5.6	$ 4.5	$ 3.4

Leases - Additional Information

Leases - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Lessee, Lease, Description [Line Items]
Lessee, operating lease, renewal term	5 years
Operating lease initial term	12 months
Rent expense		$ 3.9	$ 3.4
Operating lease cost	$ 6.4
Minimum
Lessee, Lease, Description [Line Items]
Lease, operating lease term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Lease, operating lease term	10 years

Leases - Impact of Adopting Top

Leases - Impact of Adopting Topic 842 on Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022	Dec. 31, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating Lease, Right-of-Use Asset	$ 24,114
Accrued expenses and other liabilities	42,119		$ 27,032
Operating lease liability, current portion	5,851
Operating lease liability, less current portion	$ 19,505
Topic 842 | Adjustments Due to Topic 842
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating Lease, Right-of-Use Asset		$ 23,091
Accrued expenses and other liabilities		(1,514)
Operating lease liability, current portion		4,948
Operating lease liability, less current portion		19,657
Topic 842 | As Adjusted Balance as of January 1, 2022
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating Lease, Right-of-Use Asset		23,091
Accrued expenses and other liabilities		25,518
Operating lease liability, current portion		4,948
Operating lease liability, less current portion		$ 19,657

Leases - Schedule of Future Min

Leases - Schedule of Future Minimum Lease Payments under Non-cancellable Operating Leases (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Leases [Abstract]
2023	$ 6,727
2024	6,356
2025	6,434
2026	5,785
2027	2,088
Thereafter	158
Total future minimum lease payments	27,548
Less: Imputed interest	(2,192)
Present value of future minimum lease payments	25,356
Less: Current portion of operating lease liability	(5,851)
Operating lease liabilities - noncurrent	$ 19,505

Leases - Schedule of Supplement

Leases - Schedule of Supplemental Information for Non-cancellable Operating Leases (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Leases [Abstract]
Weighted average remaining lease term	4 years 2 months 15 days
Weighted average discount rate	3.98%
Cash paid for amounts included in the measurement of lease liabilities	$ 4,949
Noncash right-of-use assets obtained in exchange for operating lease obligations	$ 2,936

Leases - Schedule of Suppleme_2

Leases - Schedule of Supplemental Information for Non-cancellable Operating Leases (Parenthetical) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Lessee, Lease, Description [Line Items]
Noncash right-of-use assets obtained in exchange for operating lease obligations	$ 2,936
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

Leases - Schedule of Future M_2

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

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Future Minimum Purchase Obligations (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2023	$ 12,661
2024	11,968
2025	4,553
2026	610
2027	241
Total future purchase obligations	$ 30,033

Non-controlling Interest - Sche

Non-controlling Interest - Schedule of Ownership of Noncontrolling Interest (Details) - CWAN Holdings, LLC - shares	Dec. 31, 2022	Dec. 31, 2021
Non-controlling Interest [Line Items]
Non-controlling shares interest held by parent	191,232,645	178,032,643
Ownership shares by noncontrolling owners	48,816,838	58,528,697
Total shares economic interest ownership	240,049,483	236,561,340
Percentage of Ownership	79.70%	75.30%
Percentage of continuing equity ownership interest	20.30%	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		12 Months Ended
		Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net loss		$ (6,695)	$ (8,094)	$ (44,230)
Less: Net income attributable to CWAN Holdings prior to the Transactions			2,829
Less: Net income (loss) attributable to non-controlling interests		1,272	(2,710)
Net loss attributable to Clearwater Analytics Holdings, Inc. - basic		(7,967)	(8,213)
Net loss attributable to Clearwater Analytics Holdings, Inc. - diluted		(7,967)	(8,213)
Numerator:
Allocation of net loss attributable to Clearwater Analytics, Inc.		$ (7,967)	$ (8,213)
Denominator:
Weighted average number of shares of Class A and Class D common stock outstanding - basic		185,560,683	177,680,507
Weighted average number of shares of Class A and Class D common stock outstanding - diluted		185,560,683	177,680,507
Basic net loss per share attributable to Class A and Class D common stockholders	[1]	$ (0.04)	$ (0.05)
Diluted net loss per share attributable to Class A and Class D common stockholders	[1]	$ (0.04)	$ (0.05)
Class A
Numerator:
Allocation of net loss attributable to Clearwater Analytics, Inc.		$ (2,382)	$ (2,200)
Denominator:
Weighted average number of shares of Class A and Class D common stock outstanding - basic	[2]	55,476,928	47,596,752
Weighted average number of shares of Class A and Class D common stock outstanding - diluted	[2]	55,476,928	47,596,752
Basic net loss per share attributable to Class A and Class D common stockholders		$ (0.04)	$ (0.05)
Diluted net loss per share attributable to Class A and Class D common stockholders		$ (0.04)	$ (0.05)
Class D
Numerator:
Allocation of net loss attributable to Clearwater Analytics, Inc.		$ (5,585)	$ (6,013)
Denominator:
Weighted average number of shares of Class A and Class D common stock outstanding - basic	[2]	130,083,755	130,083,755
Weighted average number of shares of Class A and Class D common stock outstanding - diluted	[2]	130,083,755	130,083,755
Basic net loss per share attributable to Class A and Class D common stockholders		$ (0.04)	$ (0.05)
Diluted net loss per share attributable to Class A and Class D common stockholders		$ (0.04)	$ (0.05)
[1] Basic and diluted net loss per share of Class A and Class D common stock is applicable only for the period from September 24, 2021 to December 31, 2022, which is the period following our initial public offering and related transactions. Weighted average number of shares of Class A and Class D common stock outstanding for the year ended December 31, 2021 represents only the period from September 24, 2021 to December 31, 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	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive impact	64,103,454	74,880,280
Conversion of Class B and Class C common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive impact	52,301,672	58,528,697
Stock options of Clearwater Analytics Holdings, Inc.
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive impact	10,280,184	14,575,237
RSUs of Clearwater Analytics Holdings, Inc.
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive impact	1,342,284	1,514,207
Employee Stock Purchase Plans
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive impact	179,314	262,139

Equity-Based Compensation - Add

Equity-Based Compensation - Additional Information (Details)			1 Months Ended			12 Months Ended
	Nov. 30, 2022 shares	May 31, 2022 shares	Sep. 30, 2021 USD ($) shares	Oct. 31, 2020 USD ($) Employee shares	Jan. 31, 2020 USD ($) StockOptionHolders $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 $ / shares shares	Dec. 31, 2020 $ / shares	Jan. 01, 2022 shares	Dec. 31, 2019 $ / shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Weighted-average grant date fair value | $ / shares						$ 7.74	$ 5.11	$ 1.60
Total unrecognized compensation expense						$ 41,000,000
Weighted-average period to recognize expense						2 years 1 month 6 days
Stock options exercise price one time modification description						In January 2020, the Company offered to option holders a one-time modification to reduce the exercise price of all equity options with exercise prices greater than $4.40 per unit to $4.40, the ‘fair value’ at the date of modification.
Stock options exercise price | $ / shares					$ 4.40
Number of stock options accepted repricing | shares				4,150,845	8,778,750
Number of stock option holders accepted repricing | StockOptionHolders					68
Incremental compensation charge resulting from modification				$ 18,800,000
Number of employees in recapitalization transaction | Employee				27
Number of unvested stock options for which vesting conditions modified | shares			12,493,241
Dividend yield						0%
Employees based contribution elections offering period end date	Nov. 30, 2022	May 31, 2022
Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock options exercise price | $ / shares										$ 4.40
Common Stock [Member] | Class A Common Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares issued to employees | shares						348,918
First Anniversary
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock option vesting rights, percentage						25%
Shares Vesting Monthly After First Anniversary
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock awards vesting period						3 years
Stock option vesting rights, percentage						75%
Vesting Conditions Based On Continuous Employment
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock awards vesting period						4 years
2021 Plan | Common Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares authorized for issuance | shares							57,197,804
2021 Employee Stock Purchase Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized equity-based compensation expense						$ 900,000
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
ESPP payroll contributions						$ 500,000
Shares issued to employees | shares	148,698	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 | shares									5,837,791
Offering periods scheduled start date			--06-01
Offering periods scheduled end date			--12-01
Option Awards Vested
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Incremental compensation charge resulting from modification					$ 700,000
Option Awards Unvested
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Incremental compensation charge resulting from modification					1,200,000
Options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock awards vesting period						4 years
Incremental compensation charge resulting from modification			$ 15,200,000		$ 1,900,000
RSUs
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Weighted-average period to recognize expense						3 years 1 month 6 days
Unrecognized equity-based compensation expense						$ 100,800,000
Time Based RSUs
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock awards vesting period						4 years

Equity-Based Compensation - Sum

Equity-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-Based Payment Arrangement [Abstract]
Stock Options, Beginning Balance	22,315,171	14,893,172	15,841,250
Stock Options, Granted	43,986	10,303,307	6,626,178
Stock Options, Exercised	(2,950,662)	(1,124,740)	(6,796,126)
Stock Options, Forfeited	(1,653,725)	(1,756,568)	(778,130)
Stock Options, Ending Balance	17,754,770	22,315,171	14,893,172	15,841,250
Stock Options, Options vested - December 31, 2022	9,401,413
Weighted Average Exercise Price, Beginning Balance	$ 8.52	$ 4.60	$ 4.88
Weighted Average Exercise Price, Granted	18.19	13.49	5.12
Weighted Average Exercise Price, Exercised	7.45	4.35	4.24
Weighted Average Exercise Price, Forfeited	11.16	7.23	4.24
Weighted Average Exercise Price, Ending Balance	8.47	$ 8.52	$ 4.60	$ 4.88
Weighted Average Exercise Price, Options vested - December 31, 2022	$ 6.98
Weighted Average Remaining Contractual Life (Years)	7 years 21 days	6 years 3 months	9 years 2 months 8 days	8 years 6 months 18 days
Aggregate Intrinsic Value, Beginning Balance	$ 322,877	$ 116,029	$ 2,770
Aggregate Intrinsic Value, Exercised	31,341	16,346	54,747
Aggregate Intrinsic Value, Ending Balance	183,315	$ 322,877	$ 116,029	$ 2,770
Aggregate Intrinsic Value, Options vested - December 31, 2022	$ 110,894

Equity-Based Compensation - S_2

Equity-Based Compensation - Summary of RSU Activity (Details) - RSUs - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Units Activity, Unvested Beginning Balance	6,070,668
Units Activity, Granted	4,745,363	6,162,095
Units Activity, Released	(588,854)
Units Activity, Canceled	(699,829)	(91,427)
Units Activity, Unvested Ending Balance	9,527,348	6,070,668
Weighted Average Grant Date Fair Value, Unvested Beginning Balance	$ 17.84
Weighted Average Grant Date Fair Value, Granted	18.86	$ 17.84
Weighted Average Grant Date Fair Value, Released	17.54
Weighted Average Grant Date Fair Value, Canceled	18.47	18.03
Weighted Average Grant Date Fair Value, Unvested Ending Balance	$ 18.32	$ 17.84
Aggregate Intrinsic Value, Unvested	$ 178,638	$ 138,958

Equity-Based Compensation - Sch

Equity-Based Compensation - Schedule of Assumptions Used to Calculate Fair Value of Stock Options Granted (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Weighted-average grant date fair value per option	$ 7.74	$ 5.11	$ 1.60
Expected term (years)	5 years 6 months		6 years 3 months
Expected volatility, minimum		40%
Expected volatility, maximum		42%
Expected volatility	44%		30%
Risk-free interest rates, minimum	1.80%	0.60%	0.40%
Risk-free interest rates, maximum	2%	1.30%	1.70%
Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Fair value of units	$ 17.72	$ 12.40	$ 4.40
Expected term (years)		6 years
Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Fair value of units	$ 18.68	$ 23.89	$ 12.40
Expected term (years)		6 years 3 months

Equity-Based Compensation - S_3

Equity-Based Compensation - Schedule of Assumptions Used to Calculate Fair Value of Purchase Right for ESPP (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected volatility	44%		30%
Expected volatility, minimum		40%
Expected volatility, maximum		42%
Risk-free interest rates, minimum	1.80%	0.60%	0.40%
Risk-free interest rates, maximum	2%	1.30%	1.70%
Expected term (years)	5 years 6 months		6 years 3 months
2021 Employee Stock Purchase Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected volatility		34.90%
Expected volatility, minimum	34.90%
Expected volatility, maximum	57.10%
Risk-free interest rate		0.10%
Risk-free interest rates, minimum	0.10%
Risk-free interest rates, maximum	4.60%
Expected term (years)	6 months	6 months

Segment Information - Additiona

Segment Information - Additional Information (Details)	12 Months Ended
	Dec. 31, 2022 Activity Segment
Segment Reporting [Abstract]
Number of business activities | Activity	1
Number of operating segments | Segment	1

Segment and Geographic Inform_3

Segment and Geographic Information - Summary of Revenue Disaggregated by Geography (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 303,426	$ 252,022	$ 203,222
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	261,755	229,482	183,745
Rest of World
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 41,671	$ 22,540	$ 19,477

Segment and Geographic Inform_4

Segment and Geographic Information - Summary of Long-lived Assets Disaggregated by Geography (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long lived assets, net	$ 68,634	$ 10,738	$ 8,849
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long lived assets, net	28,179	9,297	7,566
Rest of World
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long lived assets, net	$ 40,455	$ 1,441	$ 1,283

Income Taxes - Summary of Net I

Income Taxes - Summary of Net Income (Loss) Before Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Domestic	$ (9,306)	$ (11,117)	$ (46,789)
Foreign	3,971	3,510	3,461
Income (loss) before provision for income taxes	$ (5,335)	$ (7,607)	$ (43,328)

Income Taxes - Schedule of Prov

Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Current:
State	$ 491	$ 111	$ 29
International	1,737	1,055	873
Total current income tax expense	2,228	1,166	902
State	(3)	(13)
International	(865)	(666)
Total deferred income tax expense	(868)	(679)
Total provision for income taxes	$ 1,360	$ 487	$ 902

Income Taxes - Schedule of Pr_2

Income Taxes - Schedule of Provision for Income Taxes Differs from Amount Computed by Statutory Federal Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Tax at federal statutory rate	$ (1,120)	$ (1,597)	$ (9,099)
Noncontrolling interest and nontaxable income	(41)	643	9,825
State taxes	(1,592)	(1,935)	29
Foreign rate differential	92	54	(12)
Executive compensation deduction limitations	5,544
Global intangible low taxed income inclusion	1,854	845
Equity-based compensation	(2,316)	(1,746)
Permanent items	394	(57)
Tax credits and incentives	(1,623)	(55)
Return to provision	(38,107)	(320)
Changes in tax law	63,504
Valuation allowance	(25,356)	4,652
Other	127	3	159
Total provision for income taxes	$ 1,360	$ 487	$ 902
Effective tax rate	(25.50%)	(6.40%)	(2.10%)

Income Taxes - Schedule of Sign

Income Taxes - Schedule of Significant Components of Deferred Income Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Components of Deferred Tax Assets and Liabilities [Abstract]
Investment in Partnership	$ 336,276	$ 311,858
Loss and tax credit carryforwards	80,711	75,931
Equity-based compensation	8,336	7,935
Lease liability	2,057
Other	1,099	186
Total deferred tax assets	428,479	395,910
Valuation allowance	(422,555)	(395,220)
Net deferred tax asset	5,924	690
Intangible assets	(7,364)
Right of use asset	(1,988)
Revenue	(833)
Other	(111)	(15)
Total deferred tax liabilities	(10,296)	(15)
Net deferred tax liabilities		$ 675
Net deferred tax liabilities	$ (4,372)

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($)		12 Months Ended
	Sep. 28, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Tax Credit Carryforward [Line Items]
Percentage of estimated tax benefits to be realized	85%
Percentage of expected remaining tax benefits to be realized	15%
Increase in valuation allowance		$ 27,000,000
Tax receivable agreement liability		12,200,000
Tax receivable agreement general and administrative expenses		561,000
Interest and penalties		0	$ 0	$ 0
Unrecognized tax benefits would affect the effective tax rate		0
Estimated future tax benefit related to ownership exchanges		405,000,000
Estimated future tax benefit related to ownership exchanges associated to TRA liability		345,000,000
TRA liability related to future years		0
Federal
Tax Credit Carryforward [Line Items]
Net operating loss carryforwards		$ 238,000,000
Net operating loss carryforwards, begin to expire year		2036
Federal | Minimum
Tax Credit Carryforward [Line Items]
Income tax examination period		3 years
Federal | Maximum
Tax Credit Carryforward [Line Items]
Income tax examination period		4 years
Federal | Research and Development
Tax Credit Carryforward [Line Items]
Credit carryforwards amount		$ 3,100,000
Tax credit carryforward, beginning expiration year		2036
State
Tax Credit Carryforward [Line Items]
Net operating loss carryforwards		$ 318,000,000
Net operating loss carryforwards, begin to expire year		2025
State | Minimum
Tax Credit Carryforward [Line Items]
Income tax examination period		3 years
State | Maximum
Tax Credit Carryforward [Line Items]
Income tax examination period		4 years
State | Research and Development
Tax Credit Carryforward [Line Items]
Credit carryforwards amount		$ 500,000
Tax credit carryforward, beginning expiration year		2034
Foreign
Tax Credit Carryforward [Line Items]
Net operating loss carryforwards		$ 9,000,000

Income Taxes - Schedule of Reco

Income Taxes - Schedule of Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance - Beginning of Year	$ 3,548
Increases related to current year's tax positions	959	$ 89
Increases related to organizational transactions		3,455
Increases (decreases) related to prior year's tax positions	(182)	3
Decreases related to lapse of statute	(487)
Increases related to exchanges	94	1
Balance - End of Year	$ 3,932	$ 3,548

Recapitalization - Additional I

Recapitalization - Additional Information (Details) - USD ($) $ in Thousands		12 Months Ended
	Nov. 02, 2020	Dec. 31, 2020
Recapitalization [Abstract]
Recapitalization transferred ownership units	132,658,542
Contributions from selling unitholders		$ 48,998
Accrued reimbursement to unitholders		$ 4,900

Recapitalization - Summary of R

Recapitalization - Summary of Recapitalization Compensation Expenses (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($)
Distribution Made to Limited Liability Company (LLC) Member [Line Items]
Total recapitalization compensation	$ 48,998
Cost of revenue
Distribution Made to Limited Liability Company (LLC) Member [Line Items]
Total recapitalization compensation	6,205
Research and development
Distribution Made to Limited Liability Company (LLC) Member [Line Items]
Total recapitalization compensation	8,891
Sales and marketing
Distribution Made to Limited Liability Company (LLC) Member [Line Items]
Total recapitalization compensation	7,951
General and administrative
Distribution Made to Limited Liability Company (LLC) Member [Line Items]
Total recapitalization compensation	$ 25,951

Transactions with Related Par_2

Transactions with Related Parties - Additional Information (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Jan. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Related Party Transaction [Line Items]
Accrued Tax Distribution Payable		$ 3.2
TRA Payments payable to certain continuing equity owners		11.6
Principal Equity Owners
Related Party Transaction [Line Items]
Payment relation to management fees	$ 9.6
Management fee		$ 2.5	$ 2.4	$ 1.6
Prepaid management fees amortized period		4 years

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) - USD ($) $ in Millions		12 Months Ended
	Feb. 20, 2023	Dec. 31, 2022
Subsequent Event [Line Items]
Weighted-average period to recognize expense		2 years 1 month 6 days
RSUs
Subsequent Event [Line Items]
Unrecognized equity-based compensation expense		$ 100.8
Weighted-average period to recognize expense		3 years 1 month 6 days
Time Based RSUs
Subsequent Event [Line Items]
RSUs equity awards vesting period		4 years
Subsequent Event
Subsequent Event [Line Items]
Number of shares authorized for issuance	2,700,000
Unrecognized equity-based compensation expense	$ 114.1
Weighted-average period to recognize expense	3 years 6 months 18 days
Subsequent Event | RSUs
Subsequent Event [Line Items]
Number of shares authorized for issuance	6,000,000
Subsequent Event | Time Based RSUs
Subsequent Event [Line Items]
Number of shares authorized for issuance	3,300,000
RSUs equity awards vesting period	4 years
Award vesting rights, description	3.3 million RSUs subject to time-based vesting conditions which vest in equal annual installments on each anniversary from the grant date over a four year period
Subsequent Event | Performance Based RSUs
Subsequent Event [Line Items]
Award vesting rights, description	RSUs subject to performance based vesting which are eligible to vest in three equal annual installments from January 1, 2023 upon the achievement of annual targets tied to annual revenue growth