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Jan 31, 2021

Guidewire Q2 2021 Earnings Report

Experienced strong sales activity across core, cloud, and analytics offerings, closing six cloud deals and five standalone wins for data and analytics solutions.

Key Takeaways

Guidewire Software announced its Q2 fiscal year 2021 financial results, reporting a 4% increase in total revenue compared to the same quarter in fiscal year 2020. The company closed six cloud deals, including five for InsuranceSuite and one for InsuranceNow, along with five standalone wins for its data and analytics solutions.

Total revenue for the second quarter of fiscal year 2021 was $180.1 million, an increase of 4% from the same quarter in fiscal year 2020.

Subscription and support revenue was $59.6 million, an increase of 20%.

GAAP loss from operations was $27.1 million for the second quarter of fiscal year 2021, compared with $18.0 million for the comparable period in fiscal year 2020.

Annual recurring revenue, or ARR, was $520 million as of January 31, 2021, compared to $514 million as of July 31, 2020.

Total Revenue
$180M
Previous year: $173M
+3.8%
EPS
$0.11
Previous year: $0.21
-47.6%
ARR
$520M
Previous year: $474M
+9.7%
Gross Profit
$88.2M
Previous year: $89.9M
-1.9%
Cash and Equivalents
$331M
Previous year: $218M
+51.7%
Free Cash Flow
$9.72M
Previous year: $17.8M
-45.5%
Total Assets
$2.34B
Previous year: $2.22B
+5.1%

Guidewire

Guidewire

Guidewire Revenue by Segment

Forward Guidance

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

Positive Outlook

  • ARR between $533 million and $536 million
  • Total revenue between $155 million and $159 million
  • Non-GAAP operating income (loss) between $(29) million and $(25) million

Challenges Ahead

  • Operating income (loss) between $(62) million and $(58) million

Revenue & Expenses

Visualization of income flow from segment revenue to net income