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Apr 30, 2024

Guidewire Q3 2024 Earnings Report

Guidewire's Q3 2024 financial results were announced, marked by exceeding expectations in ARR, revenue, and operating income.

Key Takeaways

Guidewire reported strong Q3 2024 results, driven by Tier-1 deal volume and migration activity, particularly in Asia Pacific. The company exceeded expectations for ARR, revenue, and operating income, with eight cloud deals contributing to a 33% increase in InsuranceSuite cloud wins year-to-date.

Total revenue increased by 16% year-over-year to $240.7 million.

Subscription and support revenue grew by 28% to $138.0 million.

GAAP loss from operations improved significantly, from $57.8 million to $16.7 million.

ARR reached $828 million, compared to $763 million as of July 31, 2023.

Total Revenue
$241M
Previous year: $207M
+16.0%
EPS
$0.26
Previous year: -$0.08
-425.0%
ARR
$828M
Previous year: $722M
+14.7%
Gross Profit
$142M
Previous year: $98.9M
+43.8%
Cash and Equivalents
$360M
Previous year: $267M
+34.9%
Free Cash Flow
$15.3M
Previous year: -$49.3M
-131.1%
Total Assets
$2.04B
Previous year: $1.92B
+6.4%

Guidewire

Guidewire

Guidewire Revenue by Segment

Forward Guidance

Guidewire is issuing the following outlook for the fourth quarter of fiscal year 2024 based on current expectations:

Positive Outlook

  • ARR between $856 million and $864 million
  • Total revenue between $279 million and $287 million
  • Operating income between $5 million and $13 million
  • Non-GAAP operating income between $43 million and $51 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income