NYSE$GWRE

Guidewire Software Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Guidewire's Q1 2023 financial results were announced, revealing revenue, ARR, and profitability exceeding guidance.

Guidewire reported a solid start to fiscal year 2023, with Q1 ARR, revenue, and profitability exceeding the guidance range. The growth was driven by subscription revenue and improved subscription and support gross margins.

  • Total revenue for Q1 2023 was $195.3 million, an 18% increase year-over-year.
  • Subscription and support revenue increased by 25% to $99.1 million.
  • ARR reached $673 million as of October 31, 2022.
  • GAAP net loss was $69.3 million, or $0.83 per share.

Headline financials

Total Revenue

$195M

Previous: $166M+17.7%
EPS (adj)

-$0.12

Previous: -$0.21+42.9%
Annual Recurring Revenue

$673M

Previous: $594M+13.3%
Capital Expenditures

-$604K

Previous: -$3.33M+81.9%
Free Cash Flow

-$88M

Previous: -$110M+20.2%
Net Income

-$69.3M

Previous: -$51.3M-35.2%
Operating Income

-$74.6M

Previous: -$65.4M-14.0%
Gross Profit

$72.2M

Previous: $62.8M+15.0%
Cash & Equivalents

$263M

Previous: $240M+9.8%
Total Assets

$1.95B

Previous: $2.18B-10.6%
Stock-Based Comp

$35.1M

Previous: $32.2M+8.9%

Revenue & EPS history

Guidewire · Revenue · Quarterly

$195M

Q1 2023+17.7%vs Q1 2022
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Guidewire · $195M total across 3 segments · Q1 2023

  • Subscription and Support
    $99.1M+25.4%
  • Services
    $55.3M+18.1%
  • License
    $41M+2.0%

Forward guidance

Guidewire issued the following outlook for the second quarter and updated outlook for fiscal year 2023 based on current expectations.

Tailwinds

  • ARR between $695 million and $700 million for Q2 2023
  • Total revenue between $221 million and $226 million for Q2 2023
  • ARR between $745 million and $760 million for fiscal year 2023
  • Total revenue between $886 million and $896 million for fiscal year 2023
  • Operating cash flow between $50 million and $80 million for fiscal year 2023

Headwinds

  • Operating income (loss) between $(41) million and $(37) million for Q2 2023
  • Non-GAAP operating income (loss) between $(4) million and $0 million for Q2 2023
  • Operating income (loss) between $(176) million and $(166) million for fiscal year 2023
  • Non-GAAP operating income (loss) between $(28) million and $(18) million for fiscal year 2023

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+2.7%

Avg return

Earnings day

-0.7%

Avg return

5 days after

-0.2%

Avg return

30 days after

58%

36 / 62 earnings

Positive

+32.2%

Q2 2012

Best reaction

-14.6%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-9.7%-22.7%
Q2 2026+5.0%-1.6%-6.2%
Q1 2026-2.2%-8.6%-13.0%
Q4 2025+20.1%+16.6%+6.0%
Q3 2025+16.3%+18.0%+5.6%
Q2 2025-7.3%-5.7%-6.8%
Q1 2025-14.3%-17.3%-16.8%
Q4 2024+10.0%+13.9%+25.3%
Q3 2024+16.2%+18.5%+26.8%
Q2 2024+2.1%-0.6%+0.2%
Q1 2024-0.2%-0.5%+7.1%
Q4 2023+9.9%+8.0%+6.7%
Q3 2023-14.6%-11.8%-8.3%
Q2 2023+2.7%-2.3%+7.5%
Q1 2023+4.5%+9.0%+5.1%
Q4 2022-1.7%+1.4%-4.8%
Q3 2022+1.4%-5.4%-5.1%
Q2 2022+2.0%-2.4%+4.8%
Q1 2022-1.5%+2.5%+0.5%
Q4 2021+3.8%+3.6%+0.0%
Q3 2021+4.1%+6.5%+16.1%
Q2 2021-7.1%-8.0%-6.6%
Q1 2021-3.6%-1.8%+5.6%
Q4 2020+0.1%-1.6%-12.2%
Q3 2020-1.2%+2.1%+5.4%
Q2 2020-11.7%-21.4%-30.2%
Q1 2020-6.6%-10.2%-7.0%
Q4 2019+16.1%+13.0%+12.6%
Q3 2019-1.8%+0.2%+5.9%
Q2 2019+2.7%+2.4%+13.8%
Q1 2019-8.6%-8.3%-17.1%
Q4 2018-2.3%-3.0%-4.5%
Q3 2018-2.3%-6.8%-4.7%
Q2 2018+7.3%+3.5%-4.3%
Q1 2018-8.7%-13.5%-8.9%
Q4 2017+6.3%+5.9%+3.9%
Q3 2017+4.4%+4.4%+3.4%
Q2 2017+3.3%+2.7%+1.3%
Q1 2017-4.6%-10.3%-14.4%
Q4 2016-1.5%-2.2%-6.0%
Q3 2016+5.0%+5.8%+4.7%
Q2 2016+6.5%
Q1 2016+0.7%
Q4 2015-2.2%
Q3 2015+10.1%
Q2 2015-2.8%
Q1 2015+0.5%
Q4 2014+0.2%
Q3 2014-1.9%
Q2 2014+7.0%
Q1 2014+1.6%
Q4 2013-6.3%
Q3 2013+3.6%
Q2 2013+19.0%
Q1 2013+5.3%
Q4 2010-4.9%
Q4 2012+13.0%
Q3 2011-2.5%
Q3 2012+4.5%
Q4 2011+26.1%
Q2 2011+26.1%
Q2 2012+32.2%
Q1 2012
Q1 2011

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