NYSE$GWRE

Guidewire Software Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Guidewire's Q3 2021 financial results were announced, revealing revenue and profitability above expectations, and eight cloud wins.

Guidewire Software, Inc. reported its financial results for the third quarter of fiscal year 2021. The company's ARR, total revenue, and profitability exceeded expectations, with eight cloud wins. Total revenue was $164.0 million, a decrease of 2% year-over-year. The company had $1.3 billion in cash, cash equivalents, and investments at the end of the quarter.

  • Total revenue for the third quarter of fiscal year 2021 was $164.0 million, a decrease of 2% from the same quarter in fiscal year 2020.
  • Subscription and support revenue was $64.8 million, an increase of 28% year-over-year.
  • Annual recurring revenue (ARR) was $538 million as of April 30, 2021, compared to $514 million as of July 31, 2020.
  • GAAP loss from operations was $46.8 million, compared with $25.6 million for the comparable period in fiscal year 2020.

Headline financials

Total Revenue

$164M

Previous: $168M-2.5%
EPS (adj)

-$0.16

Previous: $0.09-277.8%
Annual Recurring Revenue

$538M

Previous: $483M+11.4%
Capital Expenditures

-$12.4M

Previous: -$19M+34.6%
Free Cash Flow

-$9.18M

Previous: -$13.1M+29.7%
Net Income

-$36.6M

Previous: -$31M-18.0%
Operating Income

-$46.8M

Previous: -$25.6M-82.9%
Gross Profit

$71.9M

Previous: $82.4M-12.8%
Cash & Equivalents

$284M

Previous: $294M-3.2%
Total Assets

$2.25B

Previous: $2.21B+1.9%
Stock-Based Comp

$28.2M

Previous: $24.8M+13.9%

Revenue & EPS history

Guidewire · Revenue · Quarterly

$164M

Q3 2021-2.5%vs Q3 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Guidewire · $164M total across 3 segments · Q3 2021

  • Subscription and Support
    $64.8M-30.4%
  • License
    $50.9M-45.3%
  • Services
    $48.2M-11.2%

Forward guidance

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

Tailwinds

  • ARR between $562 million and $569 million
  • Total revenue between $218 million and $224 million
  • Non-GAAP operating income (loss) between $20 million and $26 million

Headwinds

  • Operating income (loss) between $(11) million and $(5) 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 2021

Historical avgQ3 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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