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Apr 30, 2023

Guidewire Q3 2023 Earnings Report

Guidewire's Q3 2023 financial results were announced, showcasing a 5% increase in total revenue and highlighted by eight cloud deals.

Key Takeaways

Guidewire reported a 5% increase in total revenue for Q3 2023, driven by a 24% increase in subscription and support revenue. The company's profitability expectations for the year have been raised due to higher cloud margins and cost discipline.

Total revenue increased by 5% compared to the same quarter in fiscal year 2022.

Subscription and support revenue increased by 24% year-over-year.

GAAP loss from operations improved compared to the same quarter in fiscal year 2022.

ARR reached $722 million as of April 30, 2023.

Total Revenue
$207M
Previous year: $197M
+5.1%
EPS
-$0.08
Previous year: -$0.26
-69.2%
ARR
$722M
Previous year: $637M
+13.3%
Gross Profit
$98.9M
Previous year: $77M
+28.5%
Cash and Equivalents
$267M
Previous year: $327M
-18.4%
Free Cash Flow
-$49.3M
Previous year: -$12.5M
+295.5%
Total Assets
$1.92B
Previous year: $2.16B
-11.2%

Guidewire

Guidewire

Guidewire Revenue by Segment

Forward Guidance

Guidewire is issuing the following outlook for the fourth quarter of fiscal year 2023 based on current expectations:

Positive Outlook

  • ARR between $745 million and $755 million
  • Total revenue between $255 million and $265 million
  • Operating income (loss) between $(7) million and $3 million
  • Non-GAAP operating income (loss) between $29 million and $39 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income