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Jan 31, 2022

Guidewire Q2 2022 Earnings Report

Guidewire's Q2 2022 financial results exceeded expectations, with subscription revenue increasing 64% year-over-year and continued demand for Guidewire Cloud.

Key Takeaways

Guidewire announced its Q2 Fiscal Year 2022 financial results, exceeding guidance for ARR, revenue, and profitability. Total revenue was $204.6 million, a 14% increase year-over-year, with subscription revenue growing 64%. ARR reached $620 million. However, GAAP loss from operations was $39.5 million, and GAAP net loss was $40.7 million.

Total revenue for the second quarter of fiscal year 2022 was $204.6 million, an increase of 14% from the same quarter in fiscal year 2021.

Subscription and support revenue was $84.3 million, an increase of 42% from the same quarter in fiscal year 2021.

Annual recurring revenue, or ARR, was $620 million as of January 31, 2022, compared to $582 million as of July 31, 2021.

GAAP loss from operations was $39.5 million for the second quarter of fiscal year 2022, compared with $27.1 million for the same quarter in fiscal year 2021.

Total Revenue
$205M
Previous year: $180M
+13.6%
EPS
-$0.06
Previous year: $0.11
-154.5%
ARR
$620M
Previous year: $520M
+19.2%
Gross Profit
$96.6M
Previous year: $88.2M
+9.6%
Cash and Equivalents
$257M
Previous year: $331M
-22.3%
Free Cash Flow
-$6.67M
Previous year: $9.72M
-168.6%
Total Assets
$2.18B
Previous year: $2.34B
-6.5%

Guidewire

Guidewire

Guidewire Revenue by Segment

Forward Guidance

Guidewire is issuing the following outlook for the third quarter of fiscal year 2022 based on current expectations: •ARR between $632 million and $635 million •Total revenue between $186 million and $190 million •Operating income (loss) between $(65) million and $(62) million •Non-GAAP operating income (loss) between $(29) million and $(25) million

Positive Outlook

  • ARR between $632 million and $635 million
  • Total revenue between $186 million and $190 million

Challenges Ahead

  • Operating income (loss) between $(65) million and $(62) million
  • Non-GAAP operating income (loss) between $(29) million and $(25) million

Revenue & Expenses

Visualization of income flow from segment revenue to net income