•
Jul 31, 2023

Guidewire Q4 2023 Earnings Report

Guidewire's Q4 2023 earnings exceeded expectations with record demand for its cloud platform and significant ARR growth.

Key Takeaways

Guidewire announced strong Q4 2023 financial results, marked by a 10% increase in total revenue to $270.0 million and GAAP net income of $12.2 million, a significant improvement from the previous year's net loss. The company saw record demand for its cloud platform, contributing to a 15% growth in ARR and a 17% increase in Fully Ramped ARR.

Total revenue increased by 10% year-over-year, reaching $270.0 million.

GAAP net income was $12.2 million, a substantial turnaround from a $31.0 million loss in the same quarter of the previous year.

Non-GAAP net income was $62.8 million, compared to $2.2 million in the same quarter of the previous year.

ARR grew by 15% and Fully Ramped ARR grew by 17%, driven by strong cloud sales.

Total Revenue
$270M
Previous year: $245M
+10.4%
EPS
$0.74
Previous year: $0.03
+2366.7%
ARR
$763M
Previous year: $664M
+14.9%
Gross Profit
$164M
Previous year: $116M
+41.3%
Cash and Equivalents
$402M
Previous year: $606M
-33.7%
Free Cash Flow
$170M
Previous year: $79M
+115.2%
Total Assets
$2.03B
Previous year: $2.27B
-10.5%

Guidewire

Guidewire

Guidewire Revenue by Segment

Forward Guidance

Guidewire provided guidance for Q1 2024 and FY 2024, including ARR, total revenue, and operating income (loss) expectations.

Positive Outlook

  • ARR between $766 million and $769 million for Q1 2024.
  • Total revenue between $197 million and $202 million for Q1 2024.
  • ARR between $846 million and $858 million for fiscal year 2024.
  • Total revenue between $976 million and $986 million for fiscal year 2024.
  • Non-GAAP operating income between $62 million and $72 million for fiscal year 2024.

Challenges Ahead

  • Operating loss between $(63) million and $(58) million for Q1 2024.
  • Non-GAAP operating loss between $(25) million and $(20) million for Q1 2024.
  • Operating loss between $(100) million and $(90) million for fiscal year 2024.
  • Operating cash flow between $95 million and $125 million for fiscal year 2024.
  • No specific EPS guidance provided.

Revenue & Expenses

Visualization of income flow from segment revenue to net income