NYSE$GWRE

Guidewire Software Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Guidewire's financial performance exceeded expectations in Q3 2020, driven by strong subscription revenue growth. Leadership team updates were also announced.

Guidewire Software announced strong financial results for the third quarter of fiscal year 2020, with total revenue of $168.2 million, a 3% increase year-over-year. Subscription revenue grew by 105% year-over-year. The company's ARR reached $483 million.

  • Total revenue increased by 3% year-over-year to $168.2 million.
  • Subscription revenue grew by 105% year-over-year.
  • ARR reached $483 million.
  • GAAP net loss was $31.0 million, or $0.37 per share.

Headline financials

Total Revenue

$168M

Previous: $163M+3.3%
EPS (adj)

$0.09

Previous: $0.18-50.0%
Annual Recurring Revenue

$483M

No prior period
Capital Expenditures

-$19M

Previous: -$28.7M+34.0%
Free Cash Flow

-$13.1M

Previous: -$15.6M+16.0%
Net Income

-$31M

Previous: -$8.58M-261.7%
Operating Income

-$25.6M

Previous: -$15.8M-62.4%
Gross Profit

$82.4M

Previous: $82.6M-0.2%
Cash & Equivalents

$294M

Previous: $369M-20.3%
Total Assets

$2.21B

Previous: $2.06B+7.3%
Stock-Based Comp

$24.8M

Previous: $21.1M+17.7%

Revenue & EPS history

Guidewire · Revenue · Quarterly

$168M

Q3 2020+3.3%vs Q3 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Guidewire · $241M total across 3 segments · Q3 2020

  • Subscription and Support
    $93.2M+22.3%
  • License
    $93.2M+22.3%
  • Services
    $54.3M-16.9%

Forward guidance

Guidewire is issuing the following outlook for the fourth quarter of fiscal year 2020: Revenue between $204.9 million and $212.9 million and GAAP income from operations between $4.2 million and $12.2 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 Q3 2020

Historical avgQ3 2020

+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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro