Hello and welcome to the Clearwater Analytics' Third Quarter Earnings Conference Call. My name is Emma and I'll be your operator today. It's now my pleasure to hand the call over to JR Ritchie, Head of Investor Relations to begin. Please go ahead.

Thank you, and welcome everyone to Clearwater Analytics' first-ever earnings conference call highlighting our results for the third quarter of 2021. We are excited to have so many new shareholders joining us today after our successful initial public offering in late September. Joining me in the call today are, Sandeep Sahai, Chief Executive Officer; and Jim Cox, Chief Financial Officer. After their remarks, we will open the call up to a question-and-answer session. I'd like to remind all participants that during this conference call, any forward-looking statements are made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Expressions of future goals, including business outlook, expectations for future financial performance, 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 Factors section of our filings with the SEC. Actual results may differ 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 statements in our earnings press release. Lastly, all metrics discussed in this call are non-GAAP unless otherwise noted. A reconciliation can be found in our earnings press release that is now posted on our Investor Relations website. With that, I'll turn the call over to our Chief Executive Officer, Sandeep Sahai.

Thank you, JR, and welcome everyone to Clearwater Analytics' third quarter financial results conference call, our first as a publicly traded company. I wanted to start by thanking all of you for your continued interest in Clearwater. We truly appreciate it. We are also excited and incredibly proud of the team and the company that we are building. From a modest beginning, the company has grown organically to more than 1,300 employees across ten offices in seven countries. We have over 1,000 clients and on a daily basis, we process over $5.6 trillion in assets on our platform. And I feel like we are just getting started. I wanted to start by laying out the five core pillars that represents Clearwater's business model and strategy. The first pillar is Clearwater's consistent, durable growth that we have successfully achieved over several years. We have a 100% recurring revenue model and SaaS over multiple years achieved consistent analyzed recurring revenue growth of more than 20%. The company has word-class gross revenue retention rate of 98% for eleven consecutive quarters, because we provide a very secure solution that our clients use every day. We have a solid net revenue retention rate of approximately 110 with absolute room to expand. What drives this net retention is our ability to capitalize on land-and-expand opportunities with existing clients, client AUM growth, and modest pricing increase. The second pillar is a high-quality business and financial model that also has room to expand. Our recurring revenue model and high gross retention provides stability and predictability to our business. Our non-GAAP gross margins are approximately 75% that gives us room to continue making investments while generating reasonable EBITDA margins and free cash flow. We are committed to maintaining our technological leadership and expect to continue to make significant investments…

Thanks, Sandeep, and thank all of you for joining us on our first earnings conference call. We were very excited to complete our initial public offering last quarter and I want to thank my team and truly the dozens of others who helped us reach this milestone. As for my remarks today, I will start with an overview of the business and financial model; review our financial results for the third quarter; and finally wrap up the guidance for the fourth quarter and full year 2021. Our business model is simple, consisting of 100% recurring revenue model with visibility enabled by our consistently high gross revenue retention. This combination creates an incredibly durable business operating at scale, which allows us to reinvest back into our platforms and our teams to truly drive long-term growth. Our mission-critical SaaS solution and focus on delighting our clients has allowed us to consistently win new business by displacing legacy software, as well as manual processes, while our superior client service team keeps clients happy, leading to a consistent gross revenue retention rate 98% in each and every one of the last eleven quarters. Our unique platform built over many years leverages proprietary technology to manage and reconcile our clients' investment data with limited human intervention, allowing us to generate approximately 75% non-GAAP gross margins. These strong gross margins provide us with the opportunity to consistently invest in our solutions with approximately 25% of revenue invested back into research and development. We believe we have the best solution and our significant investment in R&D only deepens our competitiveness. Our strong margin profile and confidence in our offering from our 80% win rate when we write a proposal has led us to increase our investment in our operations and go-to-market capabilities in recent quarters to enable…

Thank you, Jim. As I said at the beginning of the call, I am incredibly proud of what Clearwater has become and I am even more excited about our future. The company's commencement of trading on the New York Stock Exchange on September 24th, commemorated by our executive team ringing the opening bell was an amazing milestone for everyone in the company. Our mission to be the world's most trusted and comprehensive technology platform for investment accounting and analytics is our guiding principle. Our third quarter financial performance, along with the explanation of our business model and growth strategy should demonstrate to you how committed we are to achieving this mission. Speaking for both Jim and I, it's our honor to share the Clearwater story with you and we look forward to discussing of the funds and strategy for the company. Now, let me turn it over to the operator for questions.

Thank you. Our first question today comes from Jackson Ader from J.P. Morgan. Please go ahead, Jackson. Your line is now open.

Alright. Thanks for taking my questions guys, and welcome to the public markets. The first question I have is on maybe bookings. Is there any kind of seasonality we should be expecting in terms of maybe net new ARR in a December quarter, versus September quarter versus the March quarter that we should be thinking about as we head toward the end of the year?

Yes. Thank you, Jackson.

Sure. Go ahead, Sandeep. Go ahead. It's fine.

Go ahead, please.

Sure, Jackson. Thanks for the question. So, there is a couple of mechanisms. So, one, like typical enterprise software companies, there is more kind of contract signing in the fourth quarter. However, when you think about how ARR rules out, not only are we signing those contracts but we're also onboarding those customers throughout that period of time. So, that trend has abated somewhat because of that. But we feel really great about the pipeline we have going into the fourth quarter and we're excited to execute against it.

Okay. It’s great. And then, Sandeep, you mentioned or maybe, it's Jim I can't remember, on the seven-figure APAC customer, I think it was the first one in the region. That seems to be ahead of schedule. I don't remember really thinking about the APAC region just yet becoming material. So, I am just curious, what kind of resources and staffing you actually have there in order to serve customers in that region?

Yes. Thank you for the question, Jackson. A little ahead of schedule would actually be right. Yes, we have a small presence in Singapore and we expected them to be able to get some initial traction, but we are delighted that we got this seven-figure client from a really fast-growing insurance company. So, yes, it seemed to be a little bit ahead of schedule and we will continue to build up that office a little bit faster than we thought.

Okay. Great. That makes sense. Thank you.

Thank you. Our next question today comes from Michael Turrin from Wells Fargo. Please go ahead, Michael. Your line is now open.

Hey there. Thanks. Appreciate you taking the question. Congrats on the first quarter as a public company. The retention rate keeps creeping up here. You're at 111% in Q3. Can you speak to what's driving that steady improvement? And we get questions on market exposure, given you mentioned more than $5.5 trillion in AUM on the platform. Can you just help those newer to the story frame out what some of the reasons your model has proven more resilient even in a volatile environment? Thank you.

Sure. Thanks so much, Michael. So, we do have that AUM-based pricing model. It's a gentle tailwind to our - to – than of our pricing. And just to hit the kind of market volatility question straight on the head, 86% of the assets on our platform are fixed income and structured products. So, they just don't have that equity market volatility. We just don't see that in our business. Now, look, we're really pleased to see some momentum, you know, kind of over the last few quarters we've been 109%, 110%. We're up to 111% in this quarter. One quarter does not a trend to make. But when you look at some of the underlying drivers of what's driving that kind of modest expansion, 220 basis points, it – that's what's really interesting and exciting and that's where we really have to focus as a business to think about strategically over the long run how we continue to grow that and expand it even further. Let me give you two examples that are really the majority of those drivers. One is with our – what we call our strategic asset management client. These are our global asset managers that are using us and we're continuing to see the ability to land-and-expand with those clients. As they grow their business, they are looking to us to grow their business. And that's kind of consistently been the case in the strategic asset management marketplace. Another example, which is more nascent, and we are encouraged by it, but again, we need to continue to execute to be able to continue to drive this expansion. But I'll use an example of a large insurance company that has a fundamental driver of their growth to go out and acquire other businesses. And we have multiple large insurers on our platform who are able to really execute upon that expansion strategy. One, as we've started onboarding the client who had $70 billion in assets by the time we finished, had over $120 billion. And so, when I think about kind of where if I want to double my business, as a CFO, I worry about well, how am I going to do that. And so, what Clearwater allows that CFO to do is worry about it's on, it's on Clearwater's shoulders to burden that. And so, that enables one to be really free to think about their, strategic options there. And then the last thing I think I'll say is, you know, underpinning that 111%, it's easy to get to 111%, when you're always at 98% with that gross retention. That's a really, world-class number. And so driving to that cost there.

And if I could just add to that.

Go ahead.

Just a testimony to the power of the platform a little bit. This client, Jim was talking about who went from $70 billion to $120 billion, the onboarding time didn't change at all. The platform just simply absorbed it and moved on. And that is the value, I think we bring our clients that when they grow, it's fairly effortless, right? And that is, the single-instance and multi-tenancy I'm sure we have talked to you about.

That's very helpful detail. Thank you both.

Emma, do you want to?

Yes. Our next question today comes from Kevin McVeigh from Credit Suisse. Please go ahead, Kevin. Your line is now open.

Great. Thank you so much and let me add my congratulations, as well. Wanted to talk a little bit about the data insights and as that scales, is it – is there a certain level of asset, I mean at $5.6 trillion, what does that need to be to really drive incremental data insights across the business? Or is it a function of client duration just as we think about incremental growth drivers, beyond the business, more around data insights?

Yes. Thank you, Kevin, for your question. So, firstly, that's the business we are in, right? So, we are driving insights for clients today. Every day we would come out and talk to them about how their portfolios are doing. What the risk is. The compliance issues are. But yes, data insights on a broader scale, frankly, we do for our clients today and we hope to do it across clients over time. So, this is nothing we drive revenue from. But we're investing R&D dollars in trying to build that capability sort of over the next several years. What we do think, Kevin, of that is a Horizon 3 thing. It's nothing we're expecting to do or sort of get meaningful revenue from in 2022 or 2023. But over time, we see that as a really, really powerful value we could bring.

That's helpful. And then, just, you've talked about kind of complexity versus geography. How do we think about that in terms of the incremental client needs? Is it the complexity versus the geographical reach? Is that evenly split or, just from a client perspective and the scale, as you scale up across your existing client base?

I think that, when you think about complexity in the North American market, I don't think there is, we continue to see a gradual increase in complexity. And, frankly, we have seen it, Kevin, through the last several years. So, expect that to continue to grow, only because the client complex assets continue to grow quicker than the private assets. But as we grow out in Europe and now in Asia, that is different, I mean, because they have more asset classes there which are unique to those markets. There is also some data sources which are unique that market. And we really want to do that because what that does is makes us a comprehensive provider. So, you could have assets, frankly, around the world and we would be able to report on that. We would be able to get the regulatory reporting on it. So, we want to do that, but that does add more work at least in the short term. If I can just also add that, if you go back several years here, we had the same issue here in North America. And now, as you think about North America, we have most of the data connections, we have most of the reporting needs taken care of and we are continuing to build that out in Europe, Asia is just newer.

Thank you very much.

Thanks, Kevin.

Thank you.

Our next question today comes from James Faucette from Morgan Stanley. Please go ahead, James. Your line is now open.

Hey. Good afternoon, Sandeep. Good afternoon, Jim. I wanted to ask a couple of follow-up questions. First, on back on the retention rate like, obviously, great performance there. And then, you gave a lot of reasons for why your retention rate should be so good. I'm wondering, just as a quick follow-up, should we expect that level of retention to continue to improve or even at least remain at these levels? And what are the things that maybe from a seasonal basis or other factors could move it around a little bit?

Yes. Thanks, James. This is Jim. So, as you've noticed, there is no seasonality to our gross retention, right? The last eleven quarters, 98%. When you think about – so then, let me also say long-term, right, and I do mean this like strategically and in the long-term. Recall, we are effectively, a single product company at this point. So, as you think about offering more to your clients and expanding and thinking about modularizing the offering, those are all rational, reasonable reasons to see that retention rate grow over time. If we look at it kind of over the next kind of few quarters or so, I think that there are, there are tailwinds around driving asset aggregation, as well and I don't – I can't think of specific seasonality around, why do insurance companies choose to do an M&A? Are they doing it in Q1, Q2, Q3, Q4? I don't see that much difference. And so, I see that that trend kind of – is pretty normal throughout those, kind of the cap throughout the calendar year. I think it comes down to, how could that accelerate in the short-term. It could be driven by the timing of some price increases, which are typically annualized, based on when a client has kind of signed their initial contract. And so, if you assume contracts grow a little bit in the fourth quarter, there is relatively more new contracts signed in the fourth quarter than there are in the other three. That could be a slight tailwind there.

Got it. I appreciate --

Yes. Jim, if I can…

Jim and then, you know, yes. Sorry Sandeep, sorry to interrupt. Go ahead.

Go ahead, please.

Oh, no, I…

All those I mentioned in…

It's a way of testing us. Go ahead. Go ahead. Sorry. I sound like I am in a trash thing and Sandeep there is another. Sorry, go ahead Sandeep, please.

Well, all I was going to add was, James, so when you think about how the company has traditionally done this is, it's had a single price for the entire platform. So, we've got a client four years back, the price we said was the price was but we've obviously continued to add a whole new set of functionality. We spent that much money in R&D so we obviously develop it. But we just have never, structured with thought about modularization of a platform and what you saw differently. And those are avenues about how you could structurally improve the net retention rate. Does that make sense?

It does. It does. And I want to go back, Sandeep, you were talking about kind of the benefits and as you expand internationally and incorporating other types of assets and as well as data sources and really how that benefits everybody and I think that explanation is quite compelling. I am wondering if you're also seeing any notable wins in other verticals or adjacent markets yet like state and local governments or those kinds of things or how we should think about kind of the expansion beyond just international into some nearby opportunities even if it's in different types of organizations?

Yes, James, that, we continue to see. I mean one of the – one thing which is true about the platform is it's the same platform, right? So, you obviously know that. Its segment is in multi-tenancy. But is that applicable to local and state governments? Absolutely. Now, do you have to build a little bit to think about reporting needs which are specific to a state government or a local government? Yes. But that's reasonably easy. We did sell our first REIT this quarter. So, that was interesting is that we sold to a REIT. We found that our solution is fully capable of meeting that need. So those are two markets where we have continuously – we should continuously grow. Obviously, we think about pensions and sovereign funds as a Horizon 2 opportunity and it's something our platform can’t address it today. It's just that we just don't have the same ability to go to that market and we need some of the time. So, that's where we sort of think about these markets as a sort of Horizon 2, compared to our Horizon 1 sort of core markets, which is insurance asset management in corporations, right, where, frankly, we win 80% of the time. And so, that's how we see it. But those new markets are definitely interesting in the North American sense.

That's great color. Thank you very much.

Thanks, James.

Thank you.

Our next question today comes from Brian Schwartz from Oppenheimer and Company. Please go ahead, Brian. Your line is now open.

Okay. Thank you very much. Hey, congratulations, Sandeep, and Jim. Really a great quarter here. I have two questions. The first question, I want to follow up on, it was the first question about the Q4 pipeline seasonality. And you signed up a lot of big deals here this quarter. You talked about the one in Asia, the one in Neuberger. Can you shed any light in terms of how the big opportunities are looking in the pipeline here for Q4? I just want to make sure you didn't drain it here in Q3. And then I have a follow-up.

Brian, thank you for that question here. We do continue to see a really good build-out of the pipeline. So, when you think about the pipeline, obviously, we have invested over the last few quarters pretty significantly in sales and marketing, right? So, when you think about our pipeline, firstly, insurance and asset management in North America continues to power that. You see lots of traction in Europe. Quite a bunch of traction in continental Europe, too. And so, we do see a really robust pipeline. And as Jim mentioned, we are trying to get the operations ready to make sure we are effective in onboarding them as they come in, right? I think also Jim said, I think the seasonality isn't quite there. Is Q4 a little bit bigger? Often. But that's true for all enterprise software companies, I guess, right? And -- but it's not like it shows up in the radar right away, because you have to onboard them. Jim, would you add anything to that?

Yes. I think, just to be blunt, we did not drain the pipeline. We feel, that's why we're making the investments that we're making in operations. And if you think about it, we made investments in the leadership and sales and marketing and we've built out those teams. But, that's taken a whole year to do that. So, you understand how it takes time for such people to become productive and build up teams. And so, we're optimistic.

I appreciate that color. And then, the one follow-up I had is the newer product but I was wondering if you can give any update on the Prism Analytics. I am just kind of curious if that was part of any of these big deals that you won in the quarter and just how the reception has been for that newer technology. Thanks.

Yes. This is Sandeep, Brian. Prism is so exciting. I think it's so exciting because, this whole open architecture allows us to go after a market, which we would have – which would have taken longer for us to board and address, right? So, we have three clients live on it which are significant. We have a pipeline which just continues to grow there, but our ability to position this in multiple industries is really interesting. When we talked to you earlier, we have talked about this being a big mover in the asset management world. But really, what we are also finding is it has a lot of receptivity in the insurance sector and the reason for that is the larger insurers have other accounting engines and they can't replace all of them at the same time. And so, that conversation being able to have those conversations now, I think, is very, very helpful. So, they don't always count as just Prism deals as much as how do you bring the pipeline forward and build a pipeline you may have had trouble building otherwise.

Thank you for taking my questions this afternoon.

Thank you, Brian.

Our next question today comes from Gabriela Borges from Goldman Sachs. Please go ahead, Gabriela. Your line is now open.

Good afternoon. Thanks for taking the question and congrats on the IPO and the quarter. Sandeep, I wanted to follow-up on some of the commentary provided on the asset management space in North America, in particular. Could you share with us a little bit of detail on what you are seeing with the size of the deals relative to what you typically see in insurance and corporates? And then, any color on the competitive environment, what that looks like today?

Yes. Thank you, Gabriela, for the question here. So, it is different, right? So, when you think about asset management, it's more land-and-expand than an insurance company, right? So, a lot of the net revenue retention number comes from there. But I've got to say that our asset management business just continued to do really well, especially in North America. We obviously had announced in Dulas in the UK earlier on asset management. So, we continue to see good growth in that. And the insurance clients are obviously more one-time normally unless you have acquisitions as Jim laid out. What else? Would you add anything else to that? Do you want to talk about?

Yes. That's - Gabriela, we've talked about how, in general, we're getting the entire book, right, at the insurance company, whereas in the asset management space, we're nibbling it to use the Neuberger Berman, example, right? Its OCIO and wealth pieces of their business, right and winning. Now, those are significant, because we have an AUM base. It's all driven by kind of the total AUM. So not to say that that's a small piece of business by any stretch. But the point is in typical fashion, once we are in at a firm like that, we will work together and we have some other example asset management clients where they've brought us into one piece of their business, it's working well, they are bringing us into the next piece. Those are typically, they are six-figure deals but they wouldn't be, the seven-figure deals which we typically get at a large insurance company.

That makes sense and then, the follow-up, Jim, you mentioned equity market volatility earlier and having very little exposure there. How about the fixed income side? How do we think about the potential risk to AUM in a rising rate environment?

Yes. So, insurance companies are doing book accounting, right, as well. So, I think they are pretty limited. I think on the fixed income side, that's possible. Also, remember we are managing their full book. So, as they hedge, those things are playing out as well within our AUM there.

And Gabriela, I would just add to that. When you look at – when you think about who our clients are, their business really more often than not is to make sure they protect their current asset pool and then grow it. So, it's like a sort of a almost in their minds, it's a two-step process. It's not like they are putting assets out there with the wanting to grow 20% of their income, down 30% tomorrow. So, just the nature of investing keeps it - ensure those are not volatile. Now, we went back and stress tested for literally many, many, many quarters on end just to see if there was some volatility. And frankly, Jim's confidence about equity market comes from what happened a year back, a year-and-a-half back. And with all of that disruption in the equity markets, the assets on our platform like-to-like I think moved 1% or 2%. And so, we now have a different degree of confidence, if you will, on the lack of volatility on our platform.

Appreciate the color. Thank you.

Thank you, Gabriela.

Our next question today comes from Kamil Mielczarek from William Blair. Please go ahead, Kamil. Your line is now open.

Hey, guys. It's Bhavan. Hey, Sandeep. Hey, Jim. Sorry, Kamil have gotten in with a couple of earnings. But anyway, congratulations. Nice job there. I guess, I wanted to touch a little bit on Souvik, your new CTO here. How should we think about, I know it's early, but as you think about innovation, you think about expansion of some of these more complex assets, maybe crypto, maybe other things, how should we think about what his priorities are? And you've talked about sort of investing in sales and marketing, but how do you think about investing in R&D? And you've obviously discussed this with him, but let’s get some of his priorities.

Yes. Thank you. Thank you, Bhavan. So, I think if you think about our platform, does it do well today for our current clients? I think most clients would say yes, and resoundingly so. But then the question is as you grow globally, and you scale faster, right, having somebody with solid background, who is bringing more with PayPal, for example, which scaled dramatically, right, in the years he was there. And we think he brings – the program 30% he talks about it like it is 10 x, right? And how do you think a platform today and architect it such that it is capable of executing 10 x in terms of transactions load and everything else? So, that is one big focus is 10 x. The second one is around growth globally. So, a lot of energy going into thinking about how do we build software, which is completely at home in every part of the world, right? And that is, I think there's a lot of growth led initiative he is focusing on. And the third one is, how do we more destructively process things like private assets and complex assets. I think we do a good job as good as others, but how do we disruptively do that? And so, those are the three things, I think to wake up in the morning and sort of think about. And that's what we are focused on. I did want to quickly add also that actually, R&D spending has continued to go up, right. And we look at what it was last year and the year before that. And so, we are very focused on. We need to protect and grow our technological leap. And so, those people have the background, if you will, of having good systems like that. That make sense at all?

Yes. No, I think it's fair, Sandeep. I think, especially with the 3,000-plus data source connections in a particular mode, I think certainly makes you a lot of sense. I guess, my other question I had was, you haven't touched on this today. We did on the, obviously, the roadshow earlier, but just about how you are leveraging partner channels, right, enter, especially some of the new markets. Certainly, in Europe, you've relied on channel pretty heavily, custodian partnerships, et cetera. But maybe an update on how those are progressing? And sort of, is there a chance to have the channel be more of a partner where the sales and marketing spend maybe in 2022 goes up, but sort of maybe in 2023, 2024, 2025 start to trend down as the channel absorbs some of that go-to-market, whether it's Europe, Asia, or even in the U.S. I'd love to get sort of a sense on how you think about that and how you're investing in that?

I completely agree – completely agree that in the European market context, those channels make a difference. Now, the good news is, we've been getting all this growth without that channel. So, can there be a true accelerator of growth rather than supplanting…

Right.

The current pipeline build, right? But it does take time. I think if you looked at the progress we've made over the last quarter, I think it's going really well. But the problem with this is, it takes time. These partnerships and channels take time and you cannot sort of bank on them until they are fully up and running. But we have a dedicated team, which is doing that now, which does just this. Channels and partnerships traditionally though, we haven't ever used it, right? And so, it's a question of building that muscle and we have dedicated teams actually out in Europe and in Boston sort of addressing this. But it's on that you can live at pipe today – or not pipe, any of the closed deals and say, oh, those have come through the channel. So, we're very committed to building out the channel, but this is not part of our current booking. We see this as an accelerator.

Got it. Well, it’s helpful. Thank you, guys. Thanks for taking my questions and really nice job again.

Thanks.

Thank you.

Our next question today comes from Rishi Jaluria from RBC. Please go ahead, Rishi. Your line is now open.

Hey guys. Thanks so much for taking my questions, and nice to see a pretty solid quarter out the gate. I wanted to go back and maybe drill a bit deeper into thinking about contribution from new clients versus expansion, and how we should be thinking about that mix going forward. And alongside that, how should we expect the pace of client adds to trend over the next several quarters? And then, I've got a follow-up.

Sure. Sandeep here. Rishi, thank you for the question here. I think, Rishi, we continue to win this 80%. This is really, in our core markets, in our core markets in where we win 80% of the time when we write a proposal. So, we continue to see that with our client satisfaction score really high, yes it is. Do we onboard a large number of clients and logos? Yes, we do, right? Now, I did want to just clarify that, when you look at insurance companies, a lot of the growth is from building logos. When you look at the asset managers, it is more divided only because asset managers have land-and-expand and they also have new logos. In the corporate market, Rishi, it's almost all new logos. So, we do generate a whole lot on new logos and one measure would be the really the NRR, the net retention rate. I think those are from current clients and the rest of the growth is all from new logos.

Got it.

Does that make sense, Rishi?

That's really helpful, Sandeep. I appreciate that. Yes, absolutely. And then, the other question I just wanted to ask. Thinking maybe a little bit more long term, you know, look, you've obviously grown to this size almost entirely organically, if not entirely organically. As you think, though, about expanding the platform and functionality, how do you think about future opportunities to do so, via M&A? And totally understanding that if you do that, you’d fully integrate the assets and kind of keep that single platform versus how some of your competitors approach M&A. But maybe can you give us a sense for just how you're thinking about M &A as a potential lever to accelerate R&D and accelerate that roadmap?

Absolutely. So, look, firstly, we have a really high bar, right? We have a good company. It's on our works. We can grow at this pace and frankly, grow in an accelerated basis using things like channel, using things like pensions and the other markets we talked about. So, our bar is pretty high. But then, when you think about it, what would we look for? So, I can give you some ideas on that. The first one is accelerated adoption in our core markets. So, obviously, if you build out in Europe, it takes time to hire the team, get them onboarded, blah, blah, blah. It takes time, same thing with Asia. So, if there was a way to accelerate adoption in our core markets, that would be a real good fit for M&A. More specifically, of course, growth in Europe and Asia. The third one would be growth in adjacent capabilities. So, there is more things on the risks space, on the rental boarding space, things of that ilk that would be interesting. And the fourth item would be growth in adjacent industries, which are part of Horizon 2. So, if there was a way to pull forward Horizon 2 and make it a Horizon 1, like ventures or things like that, then yes, that should be the other one which should be interesting. So, there is – that’s sort of a list, though, Rishi, that we literally could go down that list and say, does it hit one, two, three, four, or five? In which case, it is interesting, but we do want to do it. The company has not had a history of doing M&A and we think we could contribute do it organically. But really, there is no reason not to accelerate adoption. So, we want to think about it and we are working on it quite diligently as we speak here.

Alright. That's really helpful. Thank you so much.

Our final question today comes from Arvind Ramnani from Piper Sandler. Please go ahead, Arvind. Your line is now open.

Hey. Thank you and congrats on the first quarter growth IPO. Most of my questions have been answered, but the one question is since you've had your public listing, can you talk about some of the customer conversations you have had? Has the public listing made any difference? And, from a kind of Salesforce, is that like being a new slide in the presentation deck? Were you now talking to prospective customers and kind of – and the last question on this is like, you know, is there any, is the kind of the environment charged up and excited or actually kind of looking at this IPO as an event to sort of exit?

Yes. Thank you, Arvind, for those questions. So, look, I've got to say and just want to make sure I say this correctly. I think employees are just, across the board, really excited and happy about this. I think from the mindset perspective, it switches us from being a challenger in our industry to some – to be part of a company, which can absolutely lead this industry worldwide. So, from an employees - literally, up in the whole team I think, there's real excitement about this. Now, I’ve got to also tell you that one of the reasons we did the IPO if you remember was clients. Clients trust us with investment accounting and it's a critical function, mission-critical, if you will. And the fact that being a public company is really helpful to them. They can see, firstly, they get transparency, which was difficult to provide as a private company. Secondly, they can see that they are growing quickly, we are investing in R&D, and they are profitable. So, the planned receptivity has literally bar none, being really, really, really positive. I think the one question people had was whether we would continue to invest in R&D and operations. And get in all that conversations with you Arvind, and to really anyone else, we’ve always said that we will continue to invest in R&D and operations and those are pretty public statements. So, look, I think that the biggest benefit of this – of the IPO is, is the employees are really charged to believe in what we could build. And – but then the second one really is around clients really see us as having some permanence from a corporate structure point of view and the transparency they get about our company. So, I would say it's really, really, really positive. It does take some time, though, preparing for these analyst calls and doing board meetings. But otherwise, all good.

Perfect. Thank you and Happy Diwali.

Yes. Absolutely. Thank you. Happy Diwali.

We have no further questions. So I will hand back the call to Sandeep Sahai for closing remarks.

Look, well, thank you, all for joining. We very much appreciate the time you take to understand our business and for giving us the opportunity to present the company to you. We're really excited about Q3 and we look forward to discussing Q4 results with you early next year. And so, thank you for all your fantastic questions and for your participation. Thank you all.

Thank you for joining today’s call. You may now disconnect your lines.