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Oct 31, 2023

Guidewire Q1 2024 Earnings Report

Guidewire's Q1 2024 financial results were announced, showcasing a strong start to the fiscal year with revenue increase and ARR exceeding expectations.

Key Takeaways

Guidewire reported a 6% increase in total revenue to $207.4 million for Q1 2024. ARR reached $770 million, surpassing the high end of the company's outlook. The company's profitability targets for the year were raised, indicating an inflection point.

Total revenue increased by 6% year-over-year to $207.4 million.

Subscription and support revenue grew by 29% to $127.6 million.

ARR reached $770 million, exceeding the high end of the outlook.

GAAP loss from operations improved significantly to $33.8 million, compared to $74.6 million in the same quarter of the previous year.

Total Revenue
$207M
Previous year: $195M
+6.2%
EPS
-$0.44
Previous year: -$0.12
+266.7%
ARR
$770M
Previous year: $673M
+14.4%
Gross Profit
$112M
Previous year: $72.2M
+55.6%
Cash and Equivalents
$713M
Previous year: $263M
+170.9%
Free Cash Flow
-$71.5M
Previous year: -$91.7M
-22.1%
Total Assets
$1.92B
Previous year: $1.95B
-1.5%

Guidewire

Guidewire

Guidewire Revenue by Segment

Forward Guidance

Guidewire issued the following outlook for the second quarter of fiscal year 2024 based on current expectations:

Positive Outlook

  • ARR between $793 million and $798 million
  • Total revenue between $237 million and $243 million
  • Non-GAAP operating income (loss) between $15 million and $20 million
  • ARR between $846 million and $858 million
  • Non-GAAP operating income (loss) between $82 million and $92 million

Challenges Ahead

  • Operating income (loss) between $(24) million and $(19) million
  • Total revenue between $976 million and $986 million
  • Operating income (loss) between $(75) million and $(65) million
  • Operating cash flow between $115 million and $135 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income