NYSE$GWRE

Guidewire Software Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Guidewire's financial performance exceeded expectations in Q3 2022, driven by strong momentum in Guidewire Cloud adoption.

Guidewire announced its Q3 fiscal year 2022 financial results, exceeding revenue and ARR outlook, driven by continued momentum for Guidewire Cloud. Total revenue was $197.4 million, a 20% increase from the same quarter in fiscal year 2021. ARR was $637 million as of April 30, 2022.

  • Total revenue for the third quarter of fiscal year 2022 was $197.4 million, an increase of 20% from the same quarter in fiscal year 2021.
  • Subscription and support revenue was $86.9 million, an increase of 34%.
  • ARR was $637 million as of April 30, 2022, compared to $582 million as of July 31, 2021.
  • GAAP net loss was $57.4 million for the third quarter of fiscal year 2022, compared with $36.6 million for the same quarter in fiscal year 2021.

Headline financials

Total Revenue

$197M

Previous: $164M+20.4%
EPS (adj)

-$0.26

Previous: -$0.16-62.5%
Annual Recurring Revenue

$637M

Previous: $538M+18.4%
Capital Expenditures

-$7.98M

Previous: -$12.4M+35.7%
Free Cash Flow

-$130M

Previous: -$9.18M-1310.9%
Net Income

-$57.4M

Previous: -$36.6M-56.8%
Operating Income

-$62.4M

Previous: -$46.8M-33.3%
Gross Profit

$77M

Previous: $71.9M+7.0%
Cash & Equivalents

$327M

Previous: $284M+14.9%
Total Assets

$2.16B

Previous: $2.25B-4.1%
Stock-Based Comp

$32.9M

Previous: $28.2M+16.7%

Revenue & EPS history

Guidewire · Revenue · Quarterly

$197M

Q3 2022+20.4%vs Q3 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Guidewire · $197M total across 3 segments · Q3 2022

  • Subscription and Support
    $86.9M+34.0%
  • Services
    $56.7M+17.7%
  • License
    $53.9M+5.8%

Forward guidance

Guidewire is issuing the following outlook for the fourth quarter of fiscal year 2022 based on current expectations: •ARR between $668 million and $674 million •Total revenue between $226 million and $232 million •Operating income (loss) between $(37) million and $(31) million •Non-GAAP operating income (loss) between $(2) million and $4 million

Tailwinds

  • ARR between $668 million and $674 million
  • Total revenue between $226 million and $232 million
  • Non-GAAP operating income (loss) between $(2) million and $4 million

Headwinds

  • Operating income (loss) between $(37) million and $(31) 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 2022

Historical avgQ3 2022

+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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