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Jul 31, 2020

Guidewire Q4 2020 Earnings Report

Guidewire reported strong Q4 results with a significant increase in subscription revenue and the launch of its first cloud-optimized InsuranceSuite release.

Key Takeaways

Guidewire Software announced its Q4 and FY2020 financial results, demonstrating a strong fourth quarter with a 17% increase in total revenue compared to the same quarter in the previous year. The company added 10 InsuranceSuite Cloud customers and grew subscription revenue for the year by 84%.

Total revenue for the fourth quarter of fiscal year 2020 was $243.7 million, an increase of 17% from the same quarter in fiscal year 2019.

Subscription and support revenue was $54.1 million, an increase of 29%.

GAAP income from operations was $44.3 million for the fourth quarter of fiscal year 2020, compared to $21.1 million for the same quarter in fiscal year 2019.

GAAP net income per share was $0.46, based on diluted weighted average shares outstanding of 83.9 million, compared to $0.28 for the same quarter in fiscal year 2019, based on diluted weighted average shares outstanding of 82.9 million.

Total Revenue
$244M
Previous year: $208M
+17.2%
EPS
$0.83
Previous year: $0.56
+48.2%
ARR
$514M
Previous year: $460M
+11.7%
Gross Profit
$156M
Previous year: $125M
+24.6%
Cash and Equivalents
$367M
Previous year: $254M
+44.4%
Free Cash Flow
$105M
Previous year: $86.8M
+20.7%
Total Assets
$2.36B
Previous year: $2.17B
+9.1%

Guidewire

Guidewire

Guidewire Revenue by Segment

Forward Guidance

Guidewire is issuing the following outlook for the first quarter of fiscal year 2021 based on current expectations:

Positive Outlook

  • ARR between $509 million and $512 million
  • Total revenue between $162 million and $166 million

Challenges Ahead

  • Operating loss between $44 million and $40 million
  • Non-GAAP operating loss between $10 million and $6 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income