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Jan 31, 2024
Guidewire Q2 2024 Earnings Report
Guidewire's Q2 2024 performance was marked by strong cloud deal closures and ARR growth, offset by lower services revenue.
Key Takeaways
Guidewire announced strong second-quarter results for fiscal year 2024, with total revenue reaching $240.9 million, a 4% increase year-over-year. The company's ARR grew to $800 million, and non-GAAP profitability improved significantly. However, the revenue outlook for fiscal year 2024 was adjusted downward due to lower expected services revenue.
Total revenue increased by 4% year-over-year to $240.9 million.
Subscription and support revenue grew by 24% to $131.6 million.
ARR reached $800 million as of January 31, 2024.
GAAP net income was $9.7 million, compared to a net loss of $9.2 million in the same quarter of the previous year.
Guidewire
Guidewire
Guidewire Revenue by Segment
Revenue by Segment
Subscription & Support Revenue
CapyFin.comLicense Revenue
CapyFin.comServices Revenue
CapyFin.com Forward Guidance
Guidewire provided its outlook for the third quarter of fiscal year 2024 and updated its outlook for the full fiscal year 2024.
Positive Outlook
- ARR between $815 million and $820 million for Q3 2024
- Total revenue between $228 million and $234 million for Q3 2024
- Non-GAAP operating income between $4 million and $10 million for Q3 2024
- ARR between $852 million and $862 million for fiscal year 2024
- Non-GAAP operating income between $82 million and $92 million for fiscal year 2024
Challenges Ahead
- Operating loss between $(34) million and $(28) million for Q3 2024
- Total revenue between $957 million and $967 million for fiscal year 2024
- Operating loss between $(71) million and $(61) million for fiscal year 2024
- Operating cash flow between $120 million and $140 million for fiscal year 2024
- Fiscal year 2024 revenue outlook change is due to lower expected services revenue.
Revenue & Expenses
Visualization of income flow from segment revenue to net income