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Jan 31, 2023
Guidewire Q2 2023 Earnings Report
Guidewire's financial performance exceeded expectations with strong revenue growth, ARR, and profitability.
Key Takeaways
Guidewire announced strong second quarter results for fiscal year 2023, with total revenue reaching $232.6 million, a 14% increase year-over-year. The company closed eight cloud transactions and improved operating efficiency, leading to improved subscription and support gross margins. ARR reached $707 million, and the company exceeded the top end of its guidance range for revenue, ARR, and profitability.
Total revenue for the second quarter of fiscal year 2023 was $232.6 million, an increase of 14% from the same quarter in fiscal year 2022.
Subscription and support revenue was $105.8 million, an increase of 25%.
As of January 31, 2023, annual recurring revenue, or ARR, was $707 million, compared to $664 million as of July 31, 2022.
GAAP net loss was $9.2 million for the second quarter of fiscal year 2023, compared with $40.7 million for the same quarter in fiscal year 2022.
Revenue by Segment
Forward Guidance
Guidewire is issuing the following outlook for the third quarter of fiscal year 2023 based on current expectations: •ARR between $715 million and $720 million •Total revenue between $211 million and $216 million •Operating income (loss) between $(64) million and $(59) million •Non-GAAP operating income (loss) between $(20) million and $(16) million Guidewire is issuing the following updated outlook for fiscal year 2023 based on current expectations: •ARR between $745 million and $760 million •Total revenue between $894 million and $904 million •Operating income (loss) between $(175) million and $(164) million •Non-GAAP operating income (loss) between $(17) million and $(7) million •Operating cash flow between $50 million and $80 million
Positive Outlook
- ARR between $715 million and $720 million for Q3 2023
- Total revenue between $211 million and $216 million for Q3 2023
- ARR between $745 million and $760 million for fiscal year 2023
- Total revenue between $894 million and $904 million for fiscal year 2023
- Operating cash flow between $50 million and $80 million for fiscal year 2023
Challenges Ahead
- Operating income (loss) between $(64) million and $(59) million for Q3 2023
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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