Ladies and gentlemen, thank you for standing by, and welcome to the Clearwater Analytics Investor Update Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. I would like to welcome Joon Park, Head of Investor Relations, to begin the conference.
Thank you, and welcome everyone to Clearwater Analytics Investor Update conference call, where we will discuss our acquisition of Beacon Platform and Bistro, a Blackstone technology platform. Joining me in the call today are Sandeep Sahai, Chief Executive Officer, and Jim Cox, Chief Financial Officer. I would like to remind all participants that during this conference call, any forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, expressions of future goals, including business outlook, expectations for future financial performance, expectations for the timing of the Beacon and Bistro acquisitions, and their expected benefits, and similar items, including without limitation, expressions using the terminology may, will, can, expect, and believe, and expressions which reflect something other than historical facts are intended to identify forward-looking statements.
Forward-looking statements involve a number of risks and uncertainties, including those discussed in the risk factor section of our filings with the SEC. Actual results may differ materially from any forward-looking statements. The company undertakes no obligation to revise or update any forward-looking statements in order to reflect events that may arise after this conference call, except as required by law. For more information, please refer to the cautionary statement included in our press release relating to the acquisition of Beacon and Bistro issued today. Lastly, all metrics discussed on this call are non-GAAP unless otherwise noted. With that, I will hand over to our CEO, Sandeep Sahai.
Thank you, Joon, and good morning, and thank you all for joining us. It's a beautiful day here in Boston. Today marks an incredibly thrilling milestone in our company's history, and we are very excited about the transformative nature of this announcement. Along with Enfusion, these transactions provide an immediately actionable opportunity to build on our stated long-term vision, building a true front-to-back platform across public and private assets, across geographies, and across industries. With the acquisition of Beacon and Blackstone's Bistro, we will dramatically expand the functionality of our platform with industry-leading capabilities across private markets, build a comprehensive next-generation risk platform that was built with a private asset-first mindset, and reinforce our leadership in asset management, all of which will help us deliver on our strategy that has been years in the making.
Buying these industry-leading assets, which are already proven, lowers the risk of us having to build this functionality ourselves, and it accelerates our ability to provide a comprehensive solution to clients who need this functionality today. This is not a roll-up of disparate solutions which are loosely integrated. We expect to deliver a fully and natively unified platform. Architecturally, we envisage an extension of the current Clearwater model, and we expect to merge these platforms around a single security master with a single data plane that can be used not just by our clients, but across the entire industry. Taken together, we believe we have the opportunity to transform how our industry works. Let's start by discussing what we already do well. We have built an investment accounting and analytics platform that uses a single-instance multi-tenant platform on the cloud.
That's a very big deal for our clients for several reasons. Number one, clients never have to upgrade again. While commonplace in many other applications we use in our personal and professional lives, this is unique in our industry and incredibly valuable to our clients. The expensive and time-consuming cycle of upgrades with questionable additional business value will finally be over as clients transition to the Clearwater platform. Number two, we have a single security master that is used by all our clients. This means that data about a given security is set up once and updated only once. It is then used by every function, including accounting, compliance, and risk, obviating the need to reconcile data between them. Again, a unique architecture and approach that is unmatched in our industry and delivers tremendous value to our clients.
Number three, we have a single data plane that ingests, aggregates, reconciles, and hydrates all upstream and downstream business applications. Again, completely unique. Number four, this architecture delivers a unique network effect that allows every one of our clients to participate in the process of improving data quality, regulatory reporting, and compliance without any manual intervention on their part. Number five, having all the normalized data in one spot is incredibly valuable as we develop Gen AI applications, which we believe will transform our ability to provide insights and analytics to our clients. Finally, the Clearwater Platform operates at scale and is increasingly global. We have an efficient, industry-leading onboarding process where clients take an average of 5.4 months to get live versus a multi-year implementation cycle. Our client satisfaction is simply best in class.
Clients have this modern technology platform for investment accounting, but they still have legacy inflexible applications for many of their other upstream and downstream business functions. They need to reconcile how these assets are represented in different systems and build interfaces between them. They must move data. They must reconcile it, often manually, and otherwise not get the full benefit of a modern platform. All these problems are much more acute when you invest in private assets. Frustrated with this, our clients have consistently pushed us to do more, and we responded by launching two initiatives, which seek to understand the pain and launch new products to address it. They are the NRR 115 program and the 1-4 basis point effort, both of which have been successful. The natural next question is, where is our functionality not industry-leading or best in class?
To answer that fully, we must discuss how the industry is changing and evolving. Number one, investing in alternative assets is no longer optional as firms strive to get higher returns. To remain competitive, insurance companies and asset owners must allocate an increasing proportion of their assets to private credit, private debt, real estate, and other alternatives. These asset classes are inherently opaque, and they introduce massive operational inefficiencies and associated decline in the quality of transparency and analytics. Number two, the opaque nature of these asset classes forces companies to better understand risk and performance at a very granular level. That is, again, incredibly difficult because structured data for them is not consolidated or reported consistently. To compound the problem, these asset classes are constantly evolving as asset managers create new offerings and asset owners chase higher returns.
Number three, the unstructured data problem gets incredibly hard, especially at scale. People have simply learned to live with fragmented systems, take inordinate amounts of time to make informed business decisions, and manage integration with homemade applications. We believe we can bring these technologies together in one single fully integrated platform and provide true front-to-back functionality. Let me walk you through the exceptional technologies that will drive us forward. Number one, Enfusion is best in class. When it comes to the front office and following closure of the proposed acquisition, Clearwater will bring to them real depth and expertise in data management and middle and back office functionality. Beacon is a next-generation modeling, risk, and analytic system that was built from the ground up, focused on derivatives and alternatives.
Their platform is used to model and assess risk of the hardest asset classes, including derivatives, private credit, real estate, and other opaque assets. It is a best-in-class platform and is used as core infrastructure by many of the leading financial institutions in the world, including Blackstone and PIMCO. Merge that with Wilshire's risk optimization, performance, and attribution engines that are focused on equities and fixed income, and you have a pan-asset class industry-leading capability. Finally, it will also help make the Enfusion platform stronger by adding multi-asset class risk modeling. Number three, Bistro was built by Blackstone to get a unified granular view of all private credit assets that the insurance clients invest in. Details about each security, the components of each securitized asset, the risk attributes, shock analysis, cash flow, and other analytics. Blackstone built this platform for a number of their insurance clients.
Blackstone's own individual asset class desks and client advisors use this platform to get a comprehensive view of their private credit portfolios. This is a world-class platform, and we are very happy to buy this extraordinary asset, but we are equally excited about the ongoing strategic partnership with Blackstone to help us enhance the Bistro platform. Alternative assets will continue to evolve, and this ongoing collaboration will help us dramatically improve our client proposition. This is not a new idea. We have been discussing the potential of this true front-to-back platform with both Beacon and Blackstone for well over a year, and the acquisition of Enfusion served as a catalyst for both our company and our new partners. We all realized that we now have the potential to build something extraordinary and indeed industry-transforming. Having said that, this is not a decision we took lightly.
If we want to be fully responsive to our clients and to the incredible opportunity for our company, these transactions taken together were absolutely the right thing to do. Four things stand out as we try and bring them together. Number one, all these platforms operate on cloud-native modern technologies. Number two, the Bistro platform was built using Clearwater and Beacon as core infrastructure elements, and it already works at scale both within Blackstone and for some of their largest insurance clients. Number three, Beacon and Clearwater operate together very well already, as do Enfusion and Clearwater. Number four, it does not mean that there is not hard work ahead of us or that these existing integrations will deliver the full potential on day one. It is true that this combination already represents a best-in-class solution for clients today.
The Clearwater platform architecture enables us to build a single security master and a single data plane across all assets, all very difficult to even conceive before these acquisitions. This combination will allow us to develop a seamless data flow from front to back with integrated risk functionality to deliver the entire 1-4 basis points functionality for our clients. By uniting these platforms into a single end-to-end solution, we absolutely intend to solve some of the most persistent challenges we hear from our largest clients and prospects. Institutional investors will gain a complete real-time view of their entire portfolio across public and private markets without needing costly manual reconciliation between front, middle, and back offices. Imagine data flowing seamlessly across trading, risk, compliance, and accounting, eliminating inefficiencies and enhancing decision-making.
We could not be more thrilled to bring these platforms together, and we believe that we stand at the threshold of delivering unmatched efficiency, insights, and analytics to the investment management industry. With that, I'd like to hand it over to our Chief Financial Officer, Jim Cox, for additional details.
Thanks, Sandeep. We're really excited. In a matter of months, we expect to be well along the road to combining the pieces necessary to fulfill our clients' needs for a true front-to-back investment management platform capable of handling all assets, private and public, within a truly modern technology stack. Once assembled and using our modern single-instance multi-tenant technology, we will have the opportunity to transcend the current paradigms for this industry and connect asset managers and asset owners of all assets unlike ever before. Now, let me describe how we intend to finance this opportunity.
After borrowing $800 million in our Term Loan B financing when the Enfusion acquisition closes, we expect to have over $220 million in excess cash available at that time. We plan to utilize that excess cash as well as a portion of the undrawn $200 million revolving credit facility to finance the $336 million in cash for Beacon at closing. As you recall, at the time of borrowing the term B loans, we described gross leverage of 3.7 times EBITDA. If we were to draw the $120 million from the line of credit, our gross leverage at closing would be $920 million, and we would be levered to 4.3 times EBITDA before considering synergies from the Beacon acquisition, and our current liquidity would be greater than $100 million.
When obtaining the debt financing, we stated that our current debt arrangements would be sufficient for any additional strategic transactions, and we will execute these transactions within those stated constraints. We can also say with complete certainty that we will not be pursuing additional M&A activity until the benefits of our current acquisitions are apparent. Our capital policy going forward will be squarely focused on paying down debt. With our durable and consistent revenue growth, strong unit economics, and high EBITDA to free cash flow conversion, we anticipate repaying the revolving line of credit by the second quarter of 2026. With that, let me hand it back over to Sandeep to close out our call.
Thank you, Jim. This is a defining moment for the company, and we could not be more excited. We have built a very strong execution culture, and I'm confident in our team's ability to execute.
The prospect of delivering a fully comprehensive solution to our clients across the world is incredibly energizing for our employees, and the prospect of transforming the entire investment management industry is truly humbling. Thank you for your continued interest in Clearwater, and we look forward to answering your questions.
Thank you. If you would like to ask a question, please dial star followed by one on your telephone keypad now. If you change your mind and would like to exit the queue, please dial star followed by two. Finally, when preparing to ask your question, please ensure that your phone is unmuted locally. Our first question today will be from the line of Kevin McVeigh with UBS. Please go ahead. Your line is open.
Great. Thank you so much, and congratulations on what looked like three collectively transformational acquisitions.
Hey, Sandeep or Jim, any thoughts as to what the pro forma revenue growth looks like, margins, and then the vertical exposure? It feels like the Beacon deal in particular gives you a much broader opportunity within a private market, but just any ways to think about that?
Kevin, I would say that the Beacon platform had roughly $44 million in ARR for 2024, and it was growing 24%. As we think about our entire long-term growth algorithm of 20% top-line growth, 80% gross margins, and long-term 40% EBITDA margins, nothing about all of these collective acquisitions changes that. As it relates specifically, we anticipate closing the Enfusion transaction around April 21, and I think we will be able to give a consolidated view of numbers around that time.
Yeah.
Kevin, I would just add that the growth of private assets has been a really big trend for our industry, and as we look ahead, we absolutely see that continuing to grow. We do think that having expertise front to back across public and private comprehensively and together, I think sort of expands what we can do for our clients, which is what, Kevin, what we have always talked about. How do we get from 1 basis point to 4 basis points? A big part of that is private assets and risk, and obviously the front office. We feel like with these three pieces, we really have the opportunity to go out and build that front-to-back system, but starting from a really solid position where each of these assets is sort of leading edge, if you will, and they are cloud-native, and therefore much easier to pull together.
A lot of sense, Sandeep. Just one quick one too. I did not see, I do not know if the Bistro revenue, but more importantly, the partnership with Blackstone now going forward, does that, just the dynamic on that seems like it could be a real important distribution channel for you. Any initial thoughts on that?
Yes. As I think I said in my remarks a little bit, Kevin, we are very excited about being able to buy this incredible asset, but we are very excited to partner with their series of experts they have within Blackstone, and they will obviously continue to use it, and we expect their needs to continue to evolve, and we expect to therefore have a front seat in trying to make that all work.
I think the exciting part about the Blackstone opportunity is that they are the largest alternative asset manager in the world, and therefore their insights and their support as we build this platform out would be incredibly important. Yes, that is a component of this announcement we are truly excited about, as we are about PIMCO. You might have also read that PIMCO had a long relationship with Beacon, and we expect to continue to build that relationship whereby we jointly develop things for the market.
Thank you.
Our next question today will be from the line of Andrew Schmidt with Citi. Please go ahead. Your line is open.
Hi, Sandeep. Hey, Jim. Congrats on these acquisitions. It's great to see the further push into private assets and derivatives. Maybe just a blocking and tackling question to start off with, just the integration approach.
Sandeep, you touched on this in terms of these acquisitions being cloud-native, being to some extent already integrated, but maybe just talk through the approach of just managing the acquisition of all three: Enfusion, Beacon, and Bistro, how you approach that from a project perspective. Any more details there would be great. Thanks so much.
Andrew, thank you. Look, that is front and center what our focus will be. I think Jim also declaratively said that we do not expect to do more M&A, and the point is we need to spend all of our energies and focus on integrating these things effectively. I would just talk about a few principles. One is we do not expect to have four different products.
I mean, the benefit of this would be that we have a singular platform which starts from the front, goes to the middle, does the risk across all asset classes. The vision very simply is to have a singular platform for our clients. The second thing is, I think I spoke about cloud-native, but what's also true, Andrew, is that Bistro was built using Clearwater and Beacon as very strong architectural underpinnings of that product. It is very natively already integrated with all these three products already integrated pretty well together. Finally, we already work very well with Beacon, and Beacon really works well with Bistro. We feel we have a real head start in this integration. I also wanted to just quickly add that it is going to be built around client needs. This is not chasing of intellectual purity.
It is about what do our largest clients want. I think all of us on the call can quickly agree that asset owners and insurance companies want this comprehensive view, not just private assets, but public and private together, and a granular view of private assets. We think we can bring this together. I think we're a little bit lucky that some of the senior leadership of all of these assets sit in New York, and we will bring them together physically and otherwise, and we hope to start work on that right away.
Very helpful. Thank you, Sandeep. Maybe I understand this is a big opportunity, but if you could put a finer point on just how you see the addressable revenue opportunity from both of these acquisitions.
Obviously, there's a big opportunity to scale these over time, but just any more specifics on just the revenue opportunity from these acquisitions today would be helpful. Thank you.
Yeah. I would just say at this stage, obviously these transactions have been closed, and we are limited with what we can do and can't do. The point here is that we have traditionally addressed the 1 basis point opportunity, if you will. Right? We've always spoken about what we address before any of these three is the 1 basis point opportunity, and we laid out a vision of trying to go to 4 basis points with each of these clients. That's the point, I think. I think that if our target addressable market was X, it does become, does it become 4X or something close to that.
We do not have a fine number quite yet, but we do expect the 1 basis point addressability to change and get close to 3 basis points or 4 basis points. As we sort of pull these pieces together, we will have a better readout for you.
Got it. Makes sense. For now, just think about it as part of the sort of holistic opportunity altogether, and then later more information specifically. All right. That makes sense. Thank you so much, Sandeep.
Maybe, Andrew, just one thing to think about is we have always talked about this 1- 4 basis points, right? As we think about that, the big boulders in moving from 1- 4 basis points were front and middle office and risk. By the collection of these, we have a full opportunity to fulfill those needs for our clients going forward.
I think what's very clear is there's a significant expansion in our core addressable markets going forward. How that quantifies into how quickly that all turns into revenue will come back to you. I think that it's very clear that this is a significant TAM opening opportunity for us. 100%.
Makes a lot of sense. Thanks, Jim.
Thank you, Andrew.
Our next question, say, will be from the line of James Faucette with Morgan Stanley. Please go ahead. Your line is open.
Thank you so much. I'm wondering if you can talk a little bit about the tech stacks of the customers and how the combined solution is even more compelling.
I guess I'm just trying to get a handle on the acquisitions and how their customers are doing things today or the customers to whom they're selling and just trying to get a sense how all those pieces may fit together and what you think are going to be the most compelling sale points.
Yeah. Thank you, James. When you think about it, James, our platform has always been post-trade. After the transactions are over, that's when we pick up. Our whole thing is about data ingestion after the trade is done. What do clients use? What do clients do before then? They use a whole wide variety of pre-trade applications and platforms, and there's literally tens of them. I think that's what they did. Then we would try and reconcile the data between pre-trade systems and our own systems.
That takes a reasonable amount of effort. If you did not have something like Clearwater, you would be doing that yourself. What has changed, James, is this advent of alternative assets and private assets. Those are all just unique desks. Many of them, if you look at a CLO or private credit, are done on locally grown spreadsheets. As these asset classes have grown, they just become more and more difficult to manage at scale. You have to think about, okay, who is the global leader for alternative assets? That is Blackstone. They have gone out and built something to make private assets work efficiently. What do companies do today?
They have different systems for each of these asset classes, and then they build these big warehouses where they try and bring all that data together in an effort to understand risk or cash flow or shock. The promise of this series of acquisitions is that we will have a singular platform starting with Enfusion, which goes across all of these asset classes really, really well and powerfully, have a single security master. It just flows automatically, if you will, to the middle back office and then use those positions and trades to generate risk characteristics on the fly. The promise of it is also to integrate private assets with public assets together. We think we are starting with four of the best pieces of technology out there.
I don't think it's very easy to do it, but our vision, James, is to have a single security master for all of these asset classes and a single data plane. As we sort of achieve that, you'll be able to take out all of the inefficiencies of every private asset having its own desk, its own technology, bringing it together in a data warehouse, pushing that data out to a risk system, bringing it back, normalizing it. It is a giant exercise if you want to get a comprehensive view today. In fact, if you, and I'm sure you do, talk to asset owners, they have giant teams doing it and pretty inefficiently at that. The promise here is, can we build an end-to-end single platform which starts from trade execution, portfolio management, all the way through to risk and cash flow?
That's really helpful.
Just curiosity, I may have missed this, but is Bistro currently being sold externally, or is this just used internally?
Yeah. Bistro is used by the clients of Blackstone, but they're not, so they're sold to clients and clients, they're not sold publicly. They're used by clients of Blackstone, but they're not sold externally to non-Blackstone clients, if that makes sense.
Yep. Makes sense. Okay. That's great. Thank you so much. Congrats.
Thank you.
The next question today will be from the line of Peter Heckmann with D.A. Davidson. Please go ahead. Your line is open.
Hey, good morning, everyone. Congratulations on the transactions. Do these two new deals change how you think about some of the efficiencies, operational efficiencies at Enfusion?
Then just in terms of a real preliminary number, it certainly seems like the buildup here suggests that pro forma 2026, you will be hitting a run rate roughly $300 million in EBITDA, which would be easily double your 2024. Do those numbers seem to foot with what you're penciling out?
Yeah. I will talk on the technology, and perhaps Jim can comment on the number here. Peter, thank you. Look, Peter, it is all about that. I think there was inefficiency in the industry, and we were part of the solution of trying to solve that. We obviously were not able to solve it for pre-trade, and that's why the partnership with Enfusion is so important. If you ask asset owners today, much of the operational inefficiency comes from private assets because there just aren't systems and technology to handle it.
Whether that's private credit, private debt, it just, the technology doesn't exist as you might expect. Also because, Peter, these are newer asset classes, and so they haven't had time to emerge. What's happened, Peter, is that every one of these have their own technology, if you will, often in-house. Then you're trying to get an understanding of your exposure across all private assets. Best of luck. What we hope to do is, in this partnership and this product from Blackstone, is to provide that comprehensive view. What also makes it so powerful is working with Beacon, which is inherently a part of how Bistro works effectively. Not only can you get a comprehensive view, you would be able to get a portfolio-level view of risk and analytics.
We feel we will change efficiency, operational efficiency very meaningfully, but also, Peter, allow our clients to make better business decisions and much more swiftly because they will have this information available, which currently takes literally days and sometimes weeks to put together. Jim, did you want to comment on the numbers?
Sure. I think so, Peter, I don't think we'll guide at this point in time, but just to reiterate what we had said, we were talking about for core Clearwater $182 million-$185 million for the year for EBITDA. Last year, we had, last year, Enfusion had roughly $40 million of EBITDA. Obviously we talked about the synergies, and we talked about the timing of those synergies playing in for that. What I would say is Beacon was a nicely growing business, but obviously not at the same scale as us.
It did not have the same EBITDA profile that we would, but we see the basic unit economics of that business that align very much to the unit economics that we see in our business going forward, if that helps without giving you a specific audit.
Sure. That does help. Certainly, as we start to pencil this out, I mean, the growth, the potential growth in EBITDA suggests that you are going to be reducing debt with strong cash flow, but the growth of EBITDA suggests that something around the range of net leverage of two and a half times is potentially possible within the next six to seven quarters.
Yeah. I think you are saying by the end of 2026? Yeah. Let's, yeah, or early 2027.
Instead of, I think what our plan is, as Enfusion closes, is to walk through combined metrics for that. Obviously, we will layer this information in as well. I think we're thinking about that. Hard to pick the specific date that we think it'll close, but we think it's closing on or around April 21. I think we'll give you an update at that point in time.
Okay. We'll look forward to it.
The next question today will be from the line of Faith Brunner with William Blair. Please go ahead. Your line is now open.
Hey, guys. Thanks for taking my questions. I guess to start, you touched on the bridge to the one to four basis points potential.
As you integrate these new solutions, how are you thinking about maybe any shifts to your go-to-market strategy to make these customers across the different end markets and asset classes aware of the new capabilities and how they can extract the most value from the connected platform? I guess I would think given the benefits of all the connected data, it would be a pretty easy sell, but maybe given that insurers are somewhat more slower moving in a technology standpoint, how are you thinking about this?
Thank you for the question here. Incredibly important. Sometimes when you do transactions like this, you can get very caught up in this new shiny toy. The way we approach this is, number one, each one of these businesses is growing really nicely itself.
We need to ensure that they continue to grow at the right pace by themselves without a massive amount of distraction. That feels like point number one, just to make sure that we continue to focus on that. The second thing is that obviously all of this, there's a straight cross-sell opportunity. The way we are structured is we have account-based sales leadership. As you know, the overlap between us and Beacon is very marginal. Our thought is that the leader of an account, the account manager, would be able to take all of these capabilities to market. We want it to be nicely additive, but not at the expense of the organic growth, so to speak. We expect to integrate all our capabilities of risk into under one leader.
Kirat Singh is the CEO of Beacon, and our expectation would be that we will take our own capability, the Clearwater capability, we'll take the Wilshire capability, we will take the Beacon capability and put it under one roof, and it will be a Clearwater capability in risk and analytics. We will take that across to every one of our clients. The approach with Enfusion also, you might remember, is very much the same. We have a singular platform, singular capability, and we will take that to all of our clients, whether it is front-to-back capability or asset owners wanting a pre-trade system. Our thinking is very much around GTM has got to change and evolve, but do not disturb what is already working. Be additive to that by setting up focused and dedicated teams whose only job is to bring cross-sell capabilities to our current clients.
That's very helpful. If I can sneak in one more, you guys talked about the value of ecosystem partnerships and these relationships with Blackstone and PIMCO. Can you maybe just add some color how you think these can continue to play into your product development long-term and maybe future M&A opportunities once these three are settled?
If you just think about that a little bit, Bistro will continue to be used extensively by Blackstone and by Blackstone's clients. We feel they have a very strong vested interest in partnering effectively with us. When you come to our side of the table, Blackstone is the largest asset manager in alternatives.
If we can collaborate effectively with them and make sure that we are providing the right functionality for their new asset classes or the current asset classes, that should be easily transferable to other asset managers and other asset owners. We feel that partnership works well because it serves the interests of both parties to continue to do this well in a very similar approach with PIMCO. It is not about, hey, would they want to do it? I am sure they would because they do want to have the best technology for the internal use, but also for the client. We feel like the partnership is set up very nicely. We do expect employees of Blackstone to be dedicated to this effort.
We do expect really good collaboration with the leadership of Blackstone, whom we have gotten to know over the last year, year and a half, and they are just completely fantastic executives. We are very excited about all of it.
Awesome. Thanks for the color. Congrats again.
Thank you.
Our next question today will be from the line of Yun Kim with Loop Capital Markets. Please go ahead. Your line is now open.
Okay. Great. Congrats on the highly strategic acquisitions. Sandeep, following the GTM question just now, given the pending Enfusion acquisition and the acquisitions that you announced today, it completely makes sense that you do not want to disrupt your go-to-market that is working today. It seems like that account-based sales leadership model allows for the optimal cross-selling. Longer term, what is your thought around your go-to-market and how that evolves?
For instance, for new logos, given the breadth of your products that you're going to have post-acquisitions, do you plan to land big, for instance, across the multiple asset classes rather than maybe today, maybe you're more thinking more strategically landing wherever you have different opportunity and then expand afterwards?
Yeah. Yoon Kim, thank you for the question. I think I could just say yes because I think you've described it perfectly. I think what happens in companies like ours has got to be new logos. Even then, you'll break that up by industry as we do today, which is separate teams for insurance, asset management, and asset owners. Even then, you would sort of break it up more. You would have a team which focuses just on the large insurers and the mid-sized insurers and the smaller insurance companies. We have that structure today.
What we also have is a dedicated team which grows our current business with current clients. That team is already separate. If you can think about the universe of clients, we have clients who are current customers, and we have teams which are dedicated to taking all of our current products to them. We would take, for example, our LP product. We would take MLX and products like that. The new logo team is sort of separate and adjunct now. Also, Europe is a separate team, and we have a separate team for Asia. We do not see the change in that. We think that we will continue to approach it in the way we have set up. I think—
Thank you for that. Jim, I have a quick—go ahead. Go ahead. You. Go ahead. I was just going to say—all right. Jim, real quick.
Go ahead, Sandeep.
I was just adding that that was one of the things that as you think about LPx and you think about MLx and products we have brought to market, it takes time, Yun Kim, right? It takes time to develop it, get initial adoption, and then continue to sell it to clients and get traction. One of the ideas of these two transactions was these are already industry-leading. They're already used by some of the most sophisticated clients in the world. Our ability to go sell it to our current clients to help solve the problem should be really high. We will have dedicated teams which are taking only a risk capability powered by Beacon, so to speak, across our client base. We will similarly have a dedicated team which takes Bistro to our client base.
Yes, we will adjust by adding teams which are dedicated GTM for these capabilities. Sorry, Jim, go ahead, please.
I was just going to add, Sandeep, that as part of the kind of—you might ask, why would Beacon be interested in joining Clearwater? As we met with Kirat, and particularly Scott Erickson, who is our Chief Revenue Officer, and Kirat met and talked about the client problems that we see today. Kirat was able to understand how we are able to provide the access so that they can understand that and connect those pieces together. I think that is when we all got so excited about the opportunity. It became apparent both to Beacon as well as Clearwater, as well as Blackstone. Go ahead. Did you have another question?
Yeah. Thanks, Jim, for that.
Real quick, anything structurally around contracts that we should be aware of, such as ASC 606 or anything licensing terms that could potentially impact the way you guys recognize revenue?
Beacon is a recurring revenue model. No, as we went through diligence, it's a ratable recognition model as well.
Okay. Great. Thank you so much, Jim.
Thank you. This will conclude Q&A, and I will now hand the call back to CEO Sandeep Sahai for closing remarks.
Thank you all. Look, we just continue to appreciate all the interest you have in Clearwater, and we hope to build something which is truly special and industry transformative. Thank you again.
This concludes the Clearwater Analytics Investor Update Conference Call. Thank you for your participation. You may now disconnect your lines.