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Jul 31, 2022

Guidewire Q4 2022 Earnings Report

Guidewire's Q4 2022 financial results were announced, revealing a revenue increase and strong cloud adoption.

Key Takeaways

Guidewire announced its Q4 and FY2022 financial results, with Q4 revenue increasing by 7% year-over-year to $244.6 million. The company exceeded its outlook for ARR, revenue, and profitability, driven by strong cloud adoption, with 16 cloud deals won in the quarter.

Total revenue for the fourth quarter of fiscal year 2022 was $244.6 million, an increase of 7% from the same quarter in fiscal year 2021.

Subscription and support revenue was $93.6 million, an increase of 34% from the same quarter in fiscal year 2021.

The Company generated $83.6 million in cash from operations and had positive free cash flow of $79.0 million during the fourth quarter of fiscal year 2022.

Sixteen cloud deals were won in the fourth quarter across new and existing customers.

Total Revenue
$245M
Previous year: $229M
+6.6%
EPS
$0.03
Previous year: $0.37
-91.9%
ARR
$664M
Previous year: $582M
+14.1%
Gross Profit
$116M
Previous year: $129M
-10.4%
Cash and Equivalents
$606M
Previous year: $385M
+57.5%
Free Cash Flow
$79M
Previous year: $82.7M
-4.5%
Total Assets
$2.27B
Previous year: $2.32B
-2.4%

Guidewire

Guidewire

Guidewire Revenue by Segment

Forward Guidance

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

Positive Outlook

  • ARR between $667 million and $670 million
  • Total revenue between $190 million and $195 million

Challenges Ahead

  • Operating income (loss) between $(82) million and $(77) million
  • Non-GAAP operating income (loss) between $(45) million and $(40) million

Revenue & Expenses

Visualization of income flow from segment revenue to net income