Guidewire Software Inc · Q2 2023 earnings

Briefing

Guidewire's financial performance exceeded expectations with strong revenue growth, ARR, and profitability.

Guidewire announced strong second quarter results for fiscal year 2023, with total revenue reaching $232.6 million, a 14% increase year-over-year. The company closed eight cloud transactions and improved operating efficiency, leading to improved subscription and support gross margins. ARR reached $707 million, and the company exceeded the top end of its guidance range for revenue, ARR, and profitability.

• Total revenue for the second quarter of fiscal year 2023 was $232.6 million, an increase of 14% from the same quarter in fiscal year 2022.
• Subscription and support revenue was $105.8 million, an increase of 25%.
• As of January 31, 2023, annual recurring revenue, or ARR, was $707 million, compared to $664 million as of July 31, 2022.
• GAAP net loss was $9.2 million for the second quarter of fiscal year 2023, compared with $40.7 million for the same quarter in fiscal year 2022.

Headline financials

Revenue & EPS history

Guidewire is issuing the following outlook for the third quarter of fiscal year 2023 based on current expectations: •ARR between $715 million and $720 million •Total revenue between $211 million and $216 million •Operating income (loss) between $(64) million and $(59) million •Non-GAAP operating income (loss) between $(20) million and $(16) million Guidewire is issuing the following updated outlook for fiscal year 2023 based on current expectations: •ARR between $745 million and $760 million •Total revenue between $894 million and $904 million •Operating income (loss) between $(175) million and $(164) million •Non-GAAP operating income (loss) between $(17) million and $(7) million •Operating cash flow between $50 million and $80 million