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Oct 31, 2021

Guidewire Q1 2022 Earnings Report

Guidewire's Q1 2022 financial results were announced, showing a mixed performance with a decrease in total revenue but growth in subscription revenue and ARR.

Key Takeaways

Guidewire announced its Q1 2022 financial results, with total revenue at $165.9 million, a 2% decrease year-over-year. However, subscription and support revenue increased by 36% to $79.0 million, and ARR reached $594 million. The company reported a GAAP net loss of $51.3 million, or $0.62 per share, and a non-GAAP net loss of $18.1 million, or $0.21 per share.

Total revenue decreased by 2% year-over-year to $165.9 million.

Subscription and support revenue increased by 36% year-over-year to $79.0 million.

ARR reached $594 million, exceeding the high-end of guidance.

GAAP net loss was $51.3 million, or $0.62 per share, while non-GAAP net loss was $18.1 million, or $0.21 per share.

Total Revenue
$166M
Previous year: $170M
-2.3%
EPS
-$0.21
Previous year: $0.17
-223.5%
ARR
$594M
Previous year: $513M
+15.8%
Gross Profit
$62.8M
Previous year: $78.8M
-20.4%
Cash and Equivalents
$240M
Previous year: $294M
-18.5%
Free Cash Flow
-$110M
Previous year: -$20.2M
+446.5%
Total Assets
$2.18B
Previous year: $2.34B
-6.9%

Guidewire

Guidewire

Guidewire Revenue by Segment

Forward Guidance

Guidewire provided its outlook for the second quarter and updated its outlook for fiscal year 2022.

Positive Outlook

  • ARR between $613 million and $616 million for Q2 2022.
  • Total revenue between $195 million and $199 million for Q2 2022.
  • ARR between $659 million and $669 million for fiscal year 2022.
  • Total revenue between $780 million and $790 million for fiscal year 2022.
  • Operating cash flow between $10 million and $20 million for fiscal year 2022.

Challenges Ahead

  • Operating loss between $(52) million and $(49) million for Q2 2022.
  • Non-GAAP operating loss between $(15) million and $(11) million for Q2 2022.
  • Operating loss between $(205) million and $(195) million for fiscal year 2022.
  • Non-GAAP operating loss between $(58) million and $(48) million for fiscal year 2022.

Revenue & Expenses

Visualization of income flow from segment revenue to net income