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Jul 31, 2021

Guidewire Q4 2021 Earnings Report

Guidewire's Q4 2021 earnings decreased compared to the same quarter last year, but ARR, total revenue, and profitability exceeded guidance.

Key Takeaways

Guidewire Software, Inc. reported a decrease in total revenue for the fourth quarter of fiscal year 2021, with a GAAP net loss of $1.0 million, compared to a net income of $38.8 million for the same quarter in fiscal year 2020.

Total revenue for Q4 2021 was $229.4 million, a 6% decrease year-over-year.

Subscription and support revenue increased by 29% to $70.0 million.

GAAP loss from operations was $0.1 million, compared to an income of $44.3 million in the same quarter last year.

Non-GAAP income from operations was $32.0 million, compared to $76.4 million in the same quarter last year.

Total Revenue
$229M
Previous year: $244M
-5.8%
EPS
$0.37
Previous year: $0.83
-55.4%
ARR
$582M
Previous year: $514M
+13.2%
Gross Profit
$129M
Previous year: $156M
-17.0%
Cash and Equivalents
$385M
Previous year: $367M
+4.9%
Free Cash Flow
$82.7M
Previous year: $105M
-21.0%
Total Assets
$2.32B
Previous year: $2.36B
-1.8%

Guidewire

Guidewire

Guidewire Revenue by Segment

Forward Guidance

Guidewire is issuing the following outlook for the first quarter of fiscal year 2022 based on current expectations:

Positive Outlook

  • ARR between $586 million and $590 million
  • Total revenue between $162 million and $166 million

Challenges Ahead

  • Operating income (loss) between $(60) million and $(56) million
  • Non-GAAP operating income (loss) between $(27) million and $(23) million

Revenue & Expenses

Visualization of income flow from segment revenue to net income