NYSE$GWRE

Guidewire Software Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Guidewire's Q3 2024 financial results were announced, marked by exceeding expectations in ARR, revenue, and operating income.

Guidewire reported strong Q3 2024 results, driven by Tier-1 deal volume and migration activity, particularly in Asia Pacific. The company exceeded expectations for ARR, revenue, and operating income, with eight cloud deals contributing to a 33% increase in InsuranceSuite cloud wins year-to-date.

  • Total revenue increased by 16% year-over-year to $240.7 million.
  • Subscription and support revenue grew by 28% to $138.0 million.
  • GAAP loss from operations improved significantly, from $57.8 million to $16.7 million.
  • ARR reached $828 million, compared to $763 million as of July 31, 2023.

Headline financials

Total Revenue

$241M

Previous: $207M+16.0%
EPS (adj)

$0.26

Previous: -$0.08+425.0%
Capital Expenditures

-$4.67M

Previous: -$2.61M-78.6%
Free Cash Flow

-$2.7M

Previous: -$137M+98.0%
Net Income

-$5.48M

Previous: -$45.6M+88.0%
Operating Income

-$16.7M

Previous: -$57.8M+71.1%
Gross Profit

$142M

Previous: $98.9M+43.8%
Cash & Equivalents

$360M

Previous: $267M+34.9%
Total Assets

$2.04B

Previous: $1.92B+6.4%
R&D Expense

$66.1M

No prior period
Stock-Based Comp

$36.7M

Previous: $35M+4.7%

Revenue & EPS history

Guidewire · Revenue · Quarterly

$241M

Q3 2024+16%vs Q3 2023
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Guidewire · $207M total across 3 segments · Q1 2024

  • Subscription and Support
    $128M+28.8%
  • Services
    $45.8M-17.2%
  • License
    $34M-16.9%

Forward guidance

Guidewire is issuing the following outlook for the fourth quarter of fiscal year 2024 based on current expectations:

Tailwinds

  • ARR between $856 million and $864 million
  • Total revenue between $279 million and $287 million
  • Operating income between $5 million and $13 million
  • Non-GAAP operating income between $43 million and $51 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 2024

Historical avgQ3 2024

+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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