NYSE$GWRE

Guidewire Software Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Experienced strong sales activity across core, cloud, and analytics offerings, closing six cloud deals and five standalone wins for data and analytics solutions.

Guidewire Software announced its Q2 fiscal year 2021 financial results, reporting a 4% increase in total revenue compared to the same quarter in fiscal year 2020. The company closed six cloud deals, including five for InsuranceSuite and one for InsuranceNow, along with five standalone wins for its data and analytics solutions.

  • Total revenue for the second quarter of fiscal year 2021 was $180.1 million, an increase of 4% from the same quarter in fiscal year 2020.
  • Subscription and support revenue was $59.6 million, an increase of 20%.
  • GAAP loss from operations was $27.1 million for the second quarter of fiscal year 2021, compared with $18.0 million for the comparable period in fiscal year 2020.
  • Annual recurring revenue, or ARR, was $520 million as of January 31, 2021, compared to $514 million as of July 31, 2020.

Headline financials

Total Revenue

$180M

Previous: $173M+3.8%
EPS (adj)

$0.11

Previous: $0.21-47.6%
Annual Recurring Revenue

$520M

Previous: $474M+9.7%
Capital Expenditures

-$5.52M

Previous: -$11.3M+51.0%
Free Cash Flow

-$7.9M

Previous: -$9.92M+20.4%
Net Income

-$8.65M

Previous: -$19.9M+56.6%
Operating Income

-$27.1M

Previous: -$18M-50.1%
Gross Profit

$88.2M

Previous: $89.9M-1.9%
Cash & Equivalents

$331M

Previous: $218M+51.7%
Total Assets

$2.34B

Previous: $2.22B+5.1%
Stock-Based Comp

$29.9M

Previous: $26.7M+11.8%

Revenue & EPS history

Guidewire · Revenue · Quarterly

$180M

Q2 2021+3.8%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Guidewire · $180M total across 3 segments · Q2 2021

  • License
    $77.9M+269.0%
  • Subscription and Support
    $59.6M-43.2%
  • Services
    $42.6M-10.1%

Forward guidance

Guidewire is issuing the following outlook for the third quarter of fiscal year 2021 based on current expectations:

Tailwinds

  • ARR between $533 million and $536 million
  • Total revenue between $155 million and $159 million
  • Non-GAAP operating income (loss) between $(29) million and $(25) million

Headwinds

  • Operating income (loss) between $(62) million and $(58) million

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 Q2 2021

Historical avgQ2 2021

+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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