On December 20, 2024, Clearwater Analytics Holdings, Inc. (NYSE:CWAN), a provider of prepackaged software services with a market capitalization of $6.9 billion, announced the outcome of a special meeting of stockholders.
The Boise, Idaho-based company, which maintains a strong financial health rating according to InvestingPro analysis, reported that its stockholders voted to approve an amendment to their Tax Receivable Agreement (TRA), which was initially dated September 28, 2021.
The approved amendment, detailed in the company’s definitive proxy statement filed on November 19, 2024, involves a one-time settlement payment that will settle all past, present, and future payment obligations of the company under the TRA.
With a healthy current ratio of 4.66 and moderate debt levels, Clearwater Analytics demonstrates strong financial flexibility in managing such obligations. This settlement also relinquishes all payment rights of the TRA Parties under the agreement. The amendment had been proposed on November 4, 2024, and the recent stockholder vote confirms the amendment’s adoption.
The voting results from the special meeting showed strong support for the amendment, with 665,424,069 votes for and only 5,469 votes against among all stockholders. The unaffiliated stockholders, who were separately tallied, also showed significant support with 177,626,879 votes for and 5,469 against.
Additionally, stockholders approved a proposal to adjourn the special meeting to a later date if necessary. However, this turned out to be unnecessary as the amendment was approved without the need for an adjournment. The final vote for adjournment was 661,397,646 for and 3,959,085 against.
Clearwater Analytics Holdings, Inc., incorporated in Delaware and with a fiscal year end of December 31, is listed on the New York Stock Exchange. The company’s business address is at 777 W. Main Street, Suite 900, Boise, Idaho, 83702.
This news is based on the latest 8-K filing by Clearwater Analytics Holdings, Inc. with the Securities and Exchange Commission, which reflects the company’s commitment to transparency and regulatory compliance. The filing provides a clear view of the company’s corporate governance and shareholder relations.
The stock has shown remarkable momentum, delivering a 50.43% return over the past six months. For deeper insights into CWAN’s valuation and growth prospects, investors can access comprehensive analysis and 12 additional key insights through InvestingPro’s detailed research reports, available as part of their coverage of 1,400+ US stocks.
In other recent news, Clearwater Analytics reported a 22% year-over-year revenue increase and a 34% growth in adjusted EBITDA in their third-quarter results. Following these positive earnings, the company’s management revised their 2024 forecasts upwards, increasing the midpoints for revenue and adjusted EBITDA by approximately 1% and 2%, respectively. Despite these positive results, DA Davidson downgraded Clearwater Analytics from Buy to Neutral, but raised the price target to $35.00.
Concurrently, RBC Capital Markets maintained an Outperform rating on Clearwater Analytics and increased the company’s price target from $32.00 to $36.00. This followed a series of investor meetings with Clearwater’s CEO, Sandeep Sahai, and Head of Investor Relations, Joon Park, which reinforced RBC Capital’s conviction in Clearwater’s growth potential.
In addition to these financial updates, Clearwater Analytics announced a secondary public offering of 25 million shares of Class A common stock, managed by J.P. Morgan. The shares are being offered by affiliates of Welsh, Carson, Anderson & Stowe, Warburg Pincus LLC, and Permira Advisers LLC.
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