Clearwater Analytics jumps in trading debut
Sandeep Sahai, Clearwater Analytics CEO, joins Yahoo Finance from the floor of the New York Stock Exchange for the company's trading debut.
Video transcript
ZACK GUZMAN: Welcome back. In today's IPO power hour, we are watching shares of Clearwater Analytics, CA. Nice 30% pop in their debut. The company, which provides cloud native software for investment, accounting and analytics, raised more than $500 million by offering 30 million shares at $18 bucks a pop. That was above the initially advertised range of $14 to $16. The company also counts among its clientele, some rather large names you might have heard of, including Facebook, Cisco, and JPMorgan Chase. And for more on that, happy to bring on the CEO of Clearwater Analytics here. Sandeep Sahai joins us now.
And Sandeep, appreciate you coming on here, man. Congrats on the listing, congrats on the pop day one of trading. Just talk to me about what this moment means for you and the company, as you guys make your debut.
SANDEEP SAHAI: We are truly excited. the company has built a software, which is disrupting this very opaque world of investment accounting. And so we are thrilled to be here at the exchange, thrilled to do this on behalf of all our employees and really excited to be talking to you. Thank you.
ZACK GUZMAN: Talk about the opaque world there. Help our viewers maybe understand what it is you guys provide and kind of the growth that you've seen in working with some of those larger companies.
SANDEEP SAHAI: If you think about it simply, corporations, all kinds of corporations, insurance companies, asset managers and other corporates, are searching for yield. Because you just don't have a yield in the common market anymore. So what people are doing is they're investing in private equity, venture capital, options, derivatives, and they're investing around the whole world. And the problem is when you've got investments all over the world, you've got dozens and dozens of computer systems to manage them. How do you bring all that information together? How do you make sure the data is accurate?
What Clearwater does is does all of that work on a cloud platform, so that when you wake up in the morning, you see a global view of your portfolio, fully reconciled, ready to use. It is dramatically, therefore, different from you having many, many legacy solutions and sort of pulling it all together. So that is sort of one of the biggest reasons we win. But we provide transparency every morning to our clients at 9:30. So much like the exchange, we have this done every morning at 9:30.
ZACK GUZMAN: Yeah, so fitting that I guess you're down there on day one to celebrate the debut here. As I mentioned, some big name clients, more than 1,000 clients and $5.6 trillion in assets globally, relying on your guys' reports here. When you look at the growth though, 24% year over year in the last six months through the first half of the year. So when investors are trying to navigate what the growth looks like ahead, is it you're just going to be adding more big name clients? Or talk to me about whether you expect that 24%, maybe slightly moderate, where does it go from here?
SANDEEP SAHAI: Yeah, I think the first thing you've got to recognize is the growth has been purely organic. And we feel we have an ability to continue to sustain that growth for a long period of time. The other thing is that yes, we are getting really large clients, but we also are starting to get a number of clients in Europe, we're getting clients in Asia. But also mid-tier clients and really clients who are really small. But the benefit though, is that a platform like ours, a $10 billion asset manager uses the same exact platform as a $300 billion insurer. And that is the power, if you will, of companies which are single instance multi-tenant on the cloud. Everybody gets to use it. You don't have to be a big client or a small client. Everybody can use it.
ZACK GUZMAN: Well, it's interesting to see the day one pop here and congrats again on the debut. Investors cheering what they're seeing, at least so far. Making your employees back in Boise, Idaho pretty proud today. Sandeep Sahai, Clearwater Analytics CEO. Appreciate the time. Congrats
