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    Guidewire Announces Third Quarter Fiscal Year 2024 Financial Results

    6/4/24 4:15:00 PM ET
    $GWRE
    Computer Software: Prepackaged Software
    Technology
    Get the next $GWRE alert in real time by email

    Guidewire (NYSE:GWRE) today announced its financial results for the fiscal quarter ended April 30, 2024.

    "Our outstanding third quarter results were driven by strong Tier-1 deal volume and an acceleration in migration activity, particularly in Asia Pacific," said Mike Rosenbaum, chief executive officer, Guidewire. "Our dedication to continuous innovation and frequent product releases is not only maturing the Guidewire Cloud Platform but also driving global engagement, reinforcing our confidence in delivering on our pipeline and strategic objectives."

    "In the third quarter, we exceeded expectations for ARR, revenue, and operating income, fueled by eight cloud deals that contributed to a 33% increase in InsuranceSuite cloud wins year-to-date," said Jeff Cooper, chief financial officer, Guidewire.

    Third Quarter Fiscal Year 2024 Financial Highlights

    Revenue

    • Total revenue for the third quarter of fiscal year 2024 was $240.7 million, an increase of 16% from the same quarter in fiscal year 2023. Subscription and support revenue was $138.0 million, an increase of 28%; license revenue was $56.2 million, an increase of 11%; and services revenue was $46.5 million, a decrease of 6%, each as compared to the same quarter in fiscal year 2023.
    • As of April 30, 2024, annual recurring revenue, or ARR, was $828 million, compared to $763 million as of July 31, 2023. ARR results for interim quarterly periods in fiscal year 2024 are based on actual currency rates at the end of fiscal year 2023, held constant throughout the year.

    Profitability

    • GAAP loss from operations was $16.7 million for the third quarter of fiscal year 2024, compared with GAAP loss from operations of $57.8 million for the same quarter in fiscal year 2023.
    • Non-GAAP income from operations was $20.8 million for the third quarter of fiscal year 2024, compared with non-GAAP loss from operations of $12.2 million for the same quarter in fiscal year 2023.
    • GAAP net loss was $5.5 million for the third quarter of fiscal year 2024, compared with GAAP net loss of $45.6 million for the same quarter in fiscal year 2023. GAAP net loss per share was $0.07, based on diluted weighted average shares outstanding of 82.5 million, compared to a GAAP net loss per share of $0.56 for the same quarter in fiscal year 2023, based on diluted weighted average shares outstanding of 81.8 million.
    • Non-GAAP net income was $21.7 million for the third quarter of fiscal year 2024, compared with non-GAAP net loss of $6.4 million for the same quarter in fiscal year 2023. Non-GAAP net income per share was $0.26, based on diluted weighted average shares outstanding of 84.0 million, compared to a non-GAAP net loss per share of $0.08 for the same quarter in fiscal year 2023, based on diluted weighted average shares outstanding of 81.8 million.

    Liquidity and Capital Resources

    • Guidewire had $934.2 million in cash, cash equivalents, and investments at April 30, 2024, compared to $927.5 million at July 31, 2023. Guidewire generated $2.0 million in cash from operations during the nine months ended April 30, 2024.

    Business Outlook

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

    • 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

    Guidewire is updating the following outlook for fiscal year 2024 based on current expectations as follows:

    • ARR between $856 million and $864 million
    • Total revenue between $968 million and $976 million
    • Operating loss between $58 million and $50 million
    • Non-GAAP operating income between $94 million and $102 million
    • Operating cash flow between $130 million and $150 million

    Conference Call Information

    What:

    Guidewire Third Quarter Fiscal Year 2024 Financial Results Conference Call

    When:

    Tuesday, June 4, 2024

    Time:

    2:00 p.m. PT (5:00 p.m. ET)

    Live Call:

    (877) 704-4453, Domestic

    Live Call:

    (201) 389-0920, International

    Replay:

    (844) 512-2921, Passcode 13745798, Domestic

    Replay

    (412) 317-6671, Passcode 13745798, International

    Webcast:

    http://ir.guidewire.com/ (live and replay)

    The webcast will be archived on Guidewire's website (www.guidewire.com) for a period of three months.

    Non-GAAP Financial Measures and Other Metrics

    This press release contains the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP tax provision (benefit), non-GAAP net income (loss) per share, and free cash flow. Non-GAAP gross profit and non-GAAP income (loss) from operations exclude stock-based compensation, amortization of intangibles, net impact of assignment of lease agreement, and acquisition consideration holdback. Non-GAAP net income (loss) and non-GAAP tax provision (benefit) also exclude the amortization of debt issuance costs from our convertible senior notes, gain on sale of strategic investment, changes in fair value of strategic investments, and related tax effects of the non-GAAP adjustments. Additionally, non-GAAP net income (loss) per share includes shares from the conversion premium and excludes the tax-effected interest expense on convertible debt using the if-converted method. Free cash flow consists of net cash flow provided by (used in) operating activities less cash used for purchases of property and equipment and capitalized software development costs. These non-GAAP measures enable us to analyze our financial performance without the effects of certain non-cash items such as amortization and stock-based compensation.

    Annual recurring revenue ("ARR") is used to quantify the annualized recurring value outlined in active customer contracts at the end of a reporting period. ARR includes the annualized recurring value of term licenses, subscription agreements, support contracts, and hosting agreements based on customer contractual terms and invoicing activities for the current reporting period, which may not be the same as the timing and amount of revenue recognized. ARR reflects all fee changes due to contract renewals, non-renewals, expansion, cancellations, attrition, or renegotiations at a higher or lower fee arrangement that are effective as of the ARR reporting date. All components of the licensing and other arrangements that are not expected to recur (primarily perpetual licenses and professional services) are excluded from our ARR calculations. In some arrangements with multiple performance obligations, a portion of recurring license and support or subscription contract value is allocated to services revenue for revenue recognition purposes, but does not get allocated for purposes of calculating ARR. This revenue allocation generally only impacts the initial term of the contract. This means that as we increase arrangements with multiple performance obligations that include services at discounted rates, more of the total contract value will be recognized as services revenue, but our reported ARR amount will not be impacted. During the nine months ended April 30, 2024, the recurring license and support or subscription contract value recognized as services revenue was $7.3 million.

    Guidewire believes that these non-GAAP financial measures and other metrics provide useful information to management and investors regarding certain financial and business trends relating to Guidewire's financial condition and results of operations. Guidewire's management uses these non-GAAP measures and other metrics to compare the Company's performance to that of prior periods for trend analysis, for purposes of determining executive and senior management incentive compensation, and for budgeting and planning purposes. Guidewire believes that the use of these non-GAAP financial measures and other metrics provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing Guidewire's financial measures with other software companies, many of which present similar non-GAAP financial measures and other metrics to investors.

    Guidewire's management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in Guidewire's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Guidewire urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including the financial tables at the end of this press release, and not to rely on any single financial measure to evaluate Guidewire's business.

    About Guidewire

    Guidewire is the platform P&C insurers trust to engage, innovate, and grow efficiently. We combine digital, core, analytics, and machine learning to deliver our platform as a cloud service. More than 540 insurers in 40 countries, from new ventures to the largest and most complex in the world, run on Guidewire.

    As a partner to our customers, we continually evolve to enable their success. We are proud of our unparalleled implementation track record, with more than 1,600 successful projects, supported by the largest R&D team and partner ecosystem in the industry. Our marketplace provides hundreds of applications that accelerate integration, localization, and innovation.

    Guidewire uses its Investor Relations website (ir.guidewire.com), X (formerly known as Twitter) feed (@Guidewire_PandC), and LinkedIn page (www.linkedin.com/company/guidewire-software) as a means of disclosing information about the company and for complying with its disclosure obligations under Regulation FD. The information that is posted through these channels may be deemed material. Accordingly, investors should monitor these channels in addition to Guidewire's press releases, SEC filings, public conference calls, and webcasts.

    NOTE: For information about Guidewire's trademarks, visit www.guidewire.com/legal-notices.

    Cautionary Language Concerning Forward-Looking Statements

    This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook and targets, our future business momentum relating to our cloud deals, cloud migration, product innovation, and profitability expectations, and our associated business plan, vision and strategy. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as "expect," "anticipate," "should," "believe," "hope," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Guidewire's control. Guidewire's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in Guidewire's most recent Forms 10-K and 10-Q filed with the Securities and Exchange Commission as well as other documents that may be filed by Guidewire from time to time with the Securities and Exchange Commission. In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: quarterly and annual operating results may fluctuate more than expected; seasonal and other variations related to our customer agreements and related revenue recognition may cause significant fluctuations in our results of operations, ARR, and cash flows; our reliance on sales to and renewals from a relatively small number of large customers for a substantial portion of our revenue and ARR; our ability to successfully manage any changes to our business model, including the transition of our products to cloud offerings and the costs related to cloud operations, cybersecurity, product development, and services; the timing, success, and number of professional services engagements and the billing rates and utilization of our professional services employees and contractors; recent global events (including, without limitation, ongoing conflicts such as the wars between Israel and Hamas and between Russia and Ukraine, escalating tensions in the South China Sea, high inflation, economic volatility, bank failures and associated financial instability and crises, and supply chain issues) and their impact on our employees and our business and the businesses of our customers, system integrator ("SI") partners, and vendors; data security breaches of our cloud-based products or unauthorized access to our employees' or our customers' data; our competitive environment and changes thereto; issues in the development and use of artificial intelligence and machine learning combined with an uncertain regulatory environment; our services revenue produces lower gross margins than our license, subscription and support revenue; our product development and sales cycles are lengthy and may be affected by factors outside of our control; the impact of new regulations and laws (including, without limitation, security, privacy, artificial intelligence and machine learning, tax regulations and laws, and accounting standards); assertions by third parties that we violate their intellectual property rights; weakened global economic conditions may adversely affect the P&C insurance industry, including the rate of information technology spending; general political or destabilizing events, including war, conflict or acts of terrorism; our ability to sell our products is highly dependent on the quality of our professional services and SI partners; the risk of losing key employees; the challenges of international operations, including changes in foreign exchange rates in countries such as Argentina; and other risks and uncertainties. Past performance is not indicative of future results. The forward-looking statements included in this press release represent Guidewire's views as of the date of this press release. Guidewire anticipates that subsequent events and developments will cause its views to change. Guidewire undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Guidewire's views as of any date subsequent to the date of this press release.

    GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES

    CONDENSED CONSOLIDATED BALANCE SHEETS

    (unaudited, in thousands)

     

     

     

     

     

    April 30,

    2024

     

    July 31,

    2023

    ASSETS

     

     

     

    CURRENT ASSETS:

     

     

     

    Cash and cash equivalents

    $

    359,600

     

     

    $

    401,813

     

    Short-term investments

     

    422,691

     

     

     

    396,872

     

    Accounts receivable, net

     

    104,344

     

     

     

    151,034

     

    Unbilled accounts receivable, net

     

    125,531

     

     

     

    87,752

     

    Prepaid expenses and other current assets

     

    69,345

     

     

     

    62,132

     

    Total current assets

     

    1,081,511

     

     

     

    1,099,603

     

    Long-term investments

     

    151,891

     

     

     

    128,782

     

    Unbilled accounts receivable, net

     

    7,288

     

     

     

    11,112

     

    Property and equipment, net

     

    55,025

     

     

     

    54,499

     

    Operating lease assets

     

    46,267

     

     

     

    52,373

     

    Intangible assets, net

     

    10,372

     

     

     

    14,473

     

    Goodwill

     

    372,214

     

     

     

    372,214

     

    Deferred tax assets, net

     

    255,547

     

     

     

    226,875

     

    Other assets

     

    59,910

     

     

     

    67,957

     

    TOTAL ASSETS

    $

    2,040,025

     

     

    $

    2,027,888

     

    LIABILITIES AND STOCKHOLDERS' EQUITY

     

     

     

    CURRENT LIABILITIES:

     

     

     

    Accounts payable

    $

    23,514

     

     

    $

    34,627

     

    Accrued employee compensation

     

    76,538

     

     

     

    103,980

     

    Deferred revenue, net

     

    181,689

     

     

     

    206,923

     

    Convertible senior notes, net

     

    398,467

     

     

     

    —

     

    Other current liabilities

     

    24,599

     

     

     

    27,731

     

    Total current liabilities

     

    704,807

     

     

     

    373,261

     

    Lease liabilities

     

    37,120

     

     

     

    42,972

     

    Convertible senior notes, net

     

    —

     

     

     

    397,171

     

    Deferred revenue, net

     

    3,210

     

     

     

    5,988

     

    Other liabilities

     

    9,522

     

     

     

    9,030

     

    Total liabilities

     

    754,659

     

     

     

    828,422

     

    STOCKHOLDERS' EQUITY:

     

     

     

    Common stock

     

    8

     

     

     

    8

     

    Additional paid-in capital

     

    1,940,691

     

     

     

    1,831,267

     

    Accumulated other comprehensive income (loss)

     

    (14,521

    )

     

     

    (13,859

    )

    Retained earnings (accumulated deficit)

     

    (640,812

    )

     

     

    (617,950

    )

    Total stockholders' equity

     

    1,285,366

     

     

     

    1,199,466

     

    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

    $

    2,040,025

     

     

    $

    2,027,888

     

    GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES

    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

    (unaudited, in thousands except share and per share data)

     

     

     

     

     

     

     

     

     

    Three Months Ended April 30,

     

    Nine Months Ended April 30,

     

    2024

     

    2023

     

    2024

     

    2023

    Revenue:

     

     

     

     

     

     

     

    Subscription and support

    $

    137,970

     

     

    $

    107,499

     

     

    $

    397,239

     

     

    $

    312,321

     

    License

     

    56,210

     

     

     

    50,602

     

     

     

    161,318

     

     

     

    164,669

     

    Services

     

    46,498

     

     

     

    49,389

     

     

     

    130,425

     

     

     

    158,393

     

    Total revenue

     

    240,678

     

     

     

    207,490

     

     

     

    688,982

     

     

     

    635,383

     

    Cost of revenue(1):

     

     

     

     

     

     

     

    Subscription and support

     

    51,185

     

     

     

    52,281

     

     

     

    149,173

     

     

     

    156,896

     

    License

     

    837

     

     

     

    1,243

     

     

     

    3,539

     

     

     

    4,961

     

    Services

     

    46,429

     

     

     

    55,048

     

     

     

    139,345

     

     

     

    178,993

     

    Total cost of revenue

     

    98,451

     

     

     

    108,572

     

     

     

    292,057

     

     

     

    340,850

     

    Gross profit:

     

     

     

     

     

     

     

    Subscription and support

     

    86,785

     

     

     

    55,218

     

     

     

    248,066

     

     

     

    155,425

     

    License

     

    55,373

     

     

     

    49,359

     

     

     

    157,779

     

     

     

    159,708

     

    Services

     

    69

     

     

     

    (5,659

    )

     

     

    (8,920

    )

     

     

    (20,600

    )

    Total gross profit

     

    142,227

     

     

     

    98,918

     

     

     

    396,925

     

     

     

    294,533

     

    Operating expenses(1):

     

     

     

     

     

     

     

    Research and development

     

    66,134

     

     

     

    63,055

     

     

     

    194,061

     

     

     

    182,927

     

    Sales and marketing

     

    50,487

     

     

     

    46,864

     

     

     

    144,249

     

     

     

    138,113

     

    General and administrative

     

    42,302

     

     

     

    46,815

     

     

     

    121,502

     

     

     

    129,078

     

    Total operating expenses

     

    158,923

     

     

     

    156,734

     

     

     

    459,812

     

     

     

    450,118

     

    Income (loss) from operations

     

    (16,696

    )

     

     

    (57,816

    )

     

     

    (62,887

    )

     

     

    (155,585

    )

    Interest income

     

    10,824

     

     

     

    6,627

     

     

     

    31,727

     

     

     

    16,657

     

    Interest expense

     

    (1,686

    )

     

     

    (1,683

    )

     

     

    (5,061

    )

     

     

    (5,034

    )

    Other income (expense), net

     

    (6,535

    )

     

     

    (3,356

    )

     

     

    (9,501

    )

     

     

    (5,889

    )

    Income (loss) before provision for (benefit from) income taxes

     

    (14,093

    )

     

     

    (56,228

    )

     

     

    (45,722

    )

     

     

    (149,851

    )

    Provision for (benefit from) income taxes

     

    (8,615

    )

     

     

    (10,660

    )

     

     

    (22,860

    )

     

     

    (25,776

    )

    Net income (loss)

    $

    (5,478

    )

     

    $

    (45,568

    )

     

    $

    (22,862

    )

     

    $

    (124,075

    )

    Net income (loss) per share:

     

     

     

     

     

     

     

    Basic and diluted

    $

    (0.07

    )

     

    $

    (0.56

    )

     

    $

    (0.28

    )

     

    $

    (1.51

    )

    Shares used in computing net income (loss) per share:

     

     

     

     

     

     

     

    Basic and diluted

     

    82,500,109

     

     

     

    81,832,244

     

     

     

    82,105,357

     

     

     

    82,407,950

     

    (1)Amounts include stock-based compensation expense as follows:

     

    Three Months Ended April 30,

     

    Nine Months Ended April 30,

     

    2024

     

    2023

     

    2024

     

    2023

    Stock-based compensation expense:

     

     

     

     

     

     

     

    Cost of subscription and support revenue

    $

    3,113

     

    $

    3,580

     

    $

    9,989

     

    $

    10,488

    Cost of license revenue

     

    72

     

     

    93

     

     

    220

     

     

    359

    Cost of services revenue

     

    4,722

     

     

    4,631

     

     

    14,154

     

     

    14,377

    Research and development

     

    10,003

     

     

    10,084

     

     

    30,127

     

     

    29,676

    Sales and marketing

     

    9,354

     

     

    7,432

     

     

    25,273

     

     

    22,343

    General and administrative

     

    9,386

     

     

    9,199

     

     

    29,411

     

     

    29,051

    Total stock-based compensation expense

    $

    36,650

     

    $

    35,019

     

    $

    109,174

     

    $

    106,294

    GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES

    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

    (unaudited, in thousands)

     

     

    Three Months Ended April 30,

     

    Nine Months Ended April 30,

     

    2024

     

    2023

     

    2024

     

    2023

    CASH FLOWS FROM OPERATING ACTIVITIES:

     

     

     

     

     

     

     

    Net income (loss)

    $

    (5,478

    )

     

    $

    (45,568

    )

     

    $

    (22,862

    )

     

    $

    (124,075

    )

    Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

     

     

     

     

     

     

     

    Depreciation and amortization

     

    5,591

     

     

     

    5,682

     

     

     

    16,525

     

     

     

    19,911

     

    Amortization of debt issuance costs

     

    434

     

     

     

    426

     

     

     

    1,296

     

     

     

    1,274

     

    Amortization of contract costs

     

    4,124

     

     

     

    4,403

     

     

     

    12,869

     

     

     

    13,000

     

    Stock-based compensation

     

    36,650

     

     

     

    35,019

     

     

     

    109,174

     

     

     

    106,294

     

    Changes to allowance for credit losses and revenue reserves

     

    52

     

     

     

    11

     

     

     

    (142

    )

     

     

    (304

    )

    Deferred income tax

     

    (11,904

    )

     

     

    (12,676

    )

     

     

    (29,294

    )

     

     

    (31,034

    )

    Amortization of premium (accretion of discount) on available-for-sale securities, net

     

    (3,269

    )

     

     

    (1,736

    )

     

     

    (9,492

    )

     

     

    (2,458

    )

    Gain on sale of strategic investment

     

    —

     

     

     

    —

     

     

     

    (1,758

    )

     

     

    —

     

    Changes in fair value of strategic investments

     

    (298

    )

     

     

    —

     

     

     

    (298

    )

     

     

    —

     

    Accelerated depreciation related to lease assignment

     

    —

     

     

     

    26,921

     

     

     

    —

     

     

     

    26,921

     

    Gain from lease assignment

     

    —

     

     

     

    (18,419

    )

     

     

    —

     

     

     

    (18,419

    )

    Other non-cash items affecting net income (loss)

     

    (28

    )

     

     

    (391

    )

     

     

    (74

    )

     

     

    (315

    )

    Changes in operating assets and liabilities:

     

     

     

     

     

     

     

    Accounts receivable

     

    23,729

     

     

     

    (1,768

    )

     

     

    46,276

     

     

     

    14,756

     

    Unbilled accounts receivable

     

    (35,057

    )

     

     

    (27,818

    )

     

     

    (33,955

    )

     

     

    (57,278

    )

    Prepaid expenses and other assets

     

    (9,551

    )

     

     

    (7,898

    )

     

     

    (22,082

    )

     

     

    (12,718

    )

    Operating lease assets

     

    2,060

     

     

     

    (16,156

    )

     

     

    6,106

     

     

     

    (11,348

    )

    Accounts payable

     

    1,674

     

     

     

    (4,436

    )

     

     

    (10,538

    )

     

     

    (6,725

    )

    Accrued employee compensation

     

    14,053

     

     

     

    14,147

     

     

     

    (25,604

    )

     

     

    (18,392

    )

    Deferred revenue

     

    (14,256

    )

     

     

    (3,069

    )

     

     

    (28,012

    )

     

     

    (29,360

    )

    Lease liabilities

     

    (1,891

    )

     

     

    6,670

     

     

     

    (5,136

    )

     

     

    953

     

    Other liabilities

     

    (1,832

    )

     

     

    (1,971

    )

     

     

    (1,028

    )

     

     

    (5,525

    )

    Net cash provided by (used in) operating activities

     

    4,803

     

     

     

    (48,627

    )

     

     

    1,971

     

     

     

    (134,842

    )

    CASH FLOWS FROM INVESTING ACTIVITIES:

     

     

     

     

     

     

     

    Purchases of available-for-sale securities

     

    (138,595

    )

     

     

    (88,494

    )

     

     

    (453,441

    )

     

     

    (358,823

    )

    Maturities and sales of available-for-sale securities

     

    148,883

     

     

     

    146,836

     

     

     

    416,299

     

     

     

    382,219

     

    Purchases of property and equipment

     

    (678

    )

     

     

    (677

    )

     

     

    (4,668

    )

     

     

    (2,614

    )

    Capitalized software development costs

     

    (3,371

    )

     

     

    (2,759

    )

     

     

    (9,429

    )

     

     

    (8,877

    )

    Acquisition of strategic investments

     

    (86

    )

     

     

    (2,210

    )

     

     

    (336

    )

     

     

    (8,051

    )

    Sale of strategic investment

     

    —

     

     

     

    —

     

     

     

    6,508

     

     

     

    —

     

    Net cash provided by (used in) investing activities

     

    6,153

     

     

     

    52,696

     

     

     

    (45,067

    )

     

     

    3,854

     

    CASH FLOWS FROM FINANCING ACTIVITIES:

     

     

     

     

     

     

     

    Proceeds from issuance of common stock upon exercise of stock options

     

    10

     

     

     

    225

     

     

     

    14

     

     

     

    227

     

    Repurchase and retirement of common stock

     

    —

     

     

     

    (13,993

    )

     

     

    —

     

     

     

    (213,993

    )

    Net cash provided by (used in) financing activities

     

    10

     

     

     

    (13,768

    )

     

     

    14

     

     

     

    (213,766

    )

    Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash

     

    (1,354

    )

     

     

    (282

    )

     

     

    (2,915

    )

     

     

    1,659

     

    NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH

     

    9,612

     

     

     

    (9,981

    )

     

     

    (45,997

    )

     

     

    (343,095

    )

    CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—Beginning of period

     

    351,181

     

     

     

    281,572

     

     

     

    406,790

     

     

     

    614,686

     

    CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—End of period

    $

    360,793

     

    $

    271,591

     

    $

    360,793

     

     

    $

    271,591

    GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES

    Reconciliation of GAAP to Non-GAAP Financial Measures

    (unaudited, in thousands)

     

     

     

     

     

     

     

     

    The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP financial measures for the periods indicated below:

     

     

    Three Months Ended April 30,

     

    Nine Months Ended April 30,

     

    2024

     

    2023

     

    2024

     

    2023

    Gross profit reconciliation:

     

     

     

     

     

     

     

    GAAP gross profit

    $

    142,227

     

     

    $

    98,918

     

     

    $

    396,925

     

     

    $

    294,533

     

    Non-GAAP adjustments:

     

     

     

     

     

     

     

    Stock-based compensation

     

    7,907

     

     

     

    8,304

     

     

     

    24,363

     

     

     

    25,224

     

    Amortization of intangibles

     

    485

     

     

     

    485

     

     

     

    1,455

     

     

     

    2,875

     

    Non-GAAP gross profit

    $

    150,619

     

     

    $

    107,707

     

     

    $

    422,743

     

     

    $

    322,632

     

     

     

     

     

     

     

     

     

    Income (loss) from operations reconciliation:

     

     

     

     

     

     

     

    GAAP income (loss) from operations

    $

    (16,696

    )

     

    $

    (57,816

    )

     

    $

    (62,887

    )

     

    $

    (155,585

    )

    Non-GAAP adjustments:

     

     

     

     

     

     

     

    Stock-based compensation

     

    36,650

     

     

     

    35,019

     

     

     

    109,174

     

     

     

    106,294

     

    Amortization of intangibles

     

    1,367

     

     

     

    1,367

     

     

     

    4,101

     

     

     

    5,521

     

    Acquisition consideration holdback

     

    (542

    )

     

     

    706

     

     

     

    143

     

     

     

    2,209

     

    Net impact of assignment of lease agreement

     

    —

     

     

     

    8,502

     

     

     

    —

     

     

     

    8,502

     

    Non-GAAP income (loss) from operations

    $

    20,779

     

     

    $

    (12,222

    )

     

    $

    50,531

     

     

    $

    (33,059

    )

     

     

     

     

     

     

     

     

    Net income (loss) reconciliation:

     

     

     

     

     

     

     

    GAAP net income (loss)

    $

    (5,478

    )

     

    $

    (45,568

    )

     

    $

    (22,862

    )

     

    $

    (124,075

    )

    Non-GAAP adjustments:

     

     

     

     

     

     

     

    Stock-based compensation

     

    36,650

     

     

     

    35,019

     

     

     

    109,174

     

     

     

    106,294

     

    Amortization of intangibles

     

    1,367

     

     

     

    1,367

     

     

     

    4,101

     

     

     

    5,521

     

    Acquisition consideration holdback

     

    (542

    )

     

     

    706

     

     

     

    143

     

     

     

    2,209

     

    Amortization of debt issuance costs

     

    434

     

     

     

    426

     

     

     

    1,296

     

     

     

    1,274

     

    Changes in fair value of strategic investments

     

    (298

    )

     

     

    —

     

     

     

    (298

    )

     

     

    —

     

    Gain on sale of strategic investment

     

    —

     

     

     

    —

     

     

     

    (1,809

    )

     

     

    —

     

    Net impact of assignment of lease agreement

     

    —

     

     

     

    8,502

     

     

     

    —

     

     

     

    8,502

     

    Tax impact of non-GAAP adjustments

     

    (10,469

    )

     

     

    (6,824

    )

     

     

    (29,289

    )

     

     

    (33,309

    )

    Non-GAAP net income (loss)

    $

    21,664

     

     

    $

    (6,372

    )

     

    $

    60,456

     

     

    $

    (33,584

    )

     

     

     

     

     

     

     

     

    Tax provision (benefit) reconciliation:

     

     

     

     

     

     

     

    GAAP tax provision (benefit)

    $

    (8,615

    )

     

    $

    (10,660

    )

     

    $

    (22,860

    )

     

    $

    (25,776

    )

    Non-GAAP adjustments:

     

     

     

     

     

     

     

    Stock-based compensation

     

    2,890

     

     

     

    13,163

     

     

     

    10,108

     

     

     

    97,554

     

    Amortization of intangibles

     

    108

     

     

     

    514

     

     

     

    380

     

     

     

    4,853

     

    Acquisition consideration holdback

     

    (43

    )

     

     

    265

     

     

     

    25

     

     

     

    2,018

     

    Amortization of debt issuance costs

     

    34

     

     

     

    160

     

     

     

    120

     

     

     

    1,160

     

    Changes in fair value of strategic investments

     

    (23

    )

     

     

    —

     

     

     

    (23

    )

     

     

    —

     

    Gain on sale of strategic investment

     

    —

     

     

     

    —

     

     

     

    (191

    )

     

     

    —

     

    Net impact of assignment of lease agreement

     

    —

     

     

     

    3,196

     

     

     

    —

     

     

     

    3,196

     

    Tax impact of non-GAAP adjustments

     

    7,503

     

     

     

    (10,474

    )

     

     

    18,870

     

     

     

    (75,472

    )

    Non-GAAP tax provision (benefit)

    $

    1,854

     

     

    $

    (3,836

    )

     

    $

    6,429

     

     

    $

    7,533

     

    GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES

    Reconciliation of GAAP to Non-GAAP Financial Measures

    (unaudited, in thousands except share and per share data)

     

     

     

     

     

     

     

     

    The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP financial measures for the periods indicated below:

     

     

    Three Months Ended April 30,

     

    Nine Months Ended April 30,

     

    2024

     

    2023

     

    2024

     

    2023

     

     

     

     

     

     

     

     

    Net income (loss) per share reconciliation:

     

     

     

     

     

     

     

    GAAP net income (loss) per share – diluted

    $

    (0.07

    )

     

    $

    (0.56

    )

     

    $

    (0.28

    )

     

    $

    (1.51

    )

    Non-GAAP adjustments:

     

     

     

     

     

     

     

    Stock-based compensation

     

    0.44

     

     

     

    0.43

     

     

     

    1.31

     

     

     

    1.29

     

    Amortization of intangibles

     

    0.02

     

     

     

    0.02

     

     

     

    0.05

     

     

     

    0.07

     

    Acquisition consideration holdback

     

    (0.01

    )

     

     

    0.01

     

     

     

    —

     

     

     

    0.03

     

    Amortization of debt issuance costs

     

    0.01

     

     

     

    0.01

     

     

     

    0.02

     

     

     

    0.03

     

    Changes in fair value of strategic investments

     

    —

     

     

     

    —

     

     

     

    —

     

     

     

    —

     

    Gain on sale of strategic investment

     

    —

     

     

     

    —

     

     

     

    (0.02

    )

     

     

    —

     

    Net impact of assignment of lease agreement

     

    —

     

     

     

    0.10

     

     

     

    —

     

     

     

    0.10

     

    Tax impact of non-GAAP adjustments

     

    (0.13

    )

     

     

    (0.09

    )

     

     

    (0.35

    )

     

     

    (0.43

    )

    Non-GAAP dilutive shares excluded from GAAP net income (loss) per share calculation

     

    —

     

     

     

    —

     

     

     

    (0.01

    )

     

     

    —

     

    Non-GAAP net income (loss) per share – diluted

    $

    0.26

     

     

    $

    (0.08

    )

     

    $

    0.72

     

     

    $

    (0.42

    )

     

     

     

     

     

     

     

     

    Shares used in computing Non-GAAP income (loss) per share amounts:

     

     

     

     

     

     

     

    GAAP weighted average shares – diluted

     

    82,500,109

     

     

     

    81,832,244

     

     

     

    82,105,357

     

     

     

    82,407,950

     

    Non-GAAP dilutive shares excluded from GAAP income (loss) per share calculation

     

    1,453,086

     

     

     

    —

     

     

     

    1,293,859

     

     

     

    —

     

    Pro forma weighted average shares — diluted

     

    83,953,195

     

     

     

    81,832,244

     

     

     

    83,399,216

     

     

     

    82,407,950

     

    The following table summarizes our free cash flow for the periods indicated below:

     

    Three Months Ended April 30,

     

    Nine Months Ended April 30,

     

    2024

     

    2023

     

    2024

     

    2023

    Free cash flow:

     

     

     

     

     

     

     

    Net cash provided by (used in) operating activities

    $

    4,803

     

     

    $

    (48,627

    )

     

    $

    1,971

     

     

    $

    (134,842

    )

    Purchases of property and equipment

     

    (678

    )

     

     

    (677

    )

     

     

    (4,668

    )

     

     

    (2,614

    )

    Capitalized software development costs

     

    (3,371

    )

     

     

    (2,759

    )

     

     

    (9,429

    )

     

     

    (8,877

    )

    Free cash flow

    $

    754

     

     

    $

    (52,063

    )

     

    $

    (12,126

    )

     

    $

    (146,333

    )

    GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES

    Reconciliation of GAAP to Non-GAAP Outlook

     

    The following table reconciles the specific items excluded from GAAP outlook in the calculation of non-GAAP outlook for the periods indicated below (in millions):

     

     

    Fourth Quarter

    Fiscal Year 2024

     

    Fiscal Year 2024

    Income (loss) from operations outlook reconciliation:

     

     

     

     

     

     

     

    GAAP income (loss) from operations

    $5

    —

    $13

     

    $(58)

    —

    $(50)

    Non-GAAP adjustments:

     

     

     

     

     

     

     

    Stock-based compensation

    37

    —

    37

     

    147

    —

    147

    Amortization of intangibles

    1

    —

    1

     

    5

    —

    5

    Non-GAAP income (loss) from operations

    $43

    —

    $51

     

    $94

    —

    $102

     

    View source version on businesswire.com: https://www.businesswire.com/news/home/20240604646345/en/

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      144 - Guidewire Software, Inc. (0001528396) (Subject)

      6/18/25 4:41:27 PM ET
      $GWRE
      Computer Software: Prepackaged Software
      Technology

    $GWRE
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    • Guidewire Software downgraded by DA Davidson with a new price target

      DA Davidson downgraded Guidewire Software from Buy to Neutral and set a new price target of $226.00

      5/22/25 8:20:12 AM ET
      $GWRE
      Computer Software: Prepackaged Software
      Technology
    • Goldman initiated coverage on Guidewire Software with a new price target

      Goldman initiated coverage of Guidewire Software with a rating of Buy and set a new price target of $210.00

      1/23/25 7:46:22 AM ET
      $GWRE
      Computer Software: Prepackaged Software
      Technology
    • Raymond James initiated coverage on Guidewire Software with a new price target

      Raymond James initiated coverage of Guidewire Software with a rating of Outperform and set a new price target of $125.00

      2/1/24 6:23:24 AM ET
      $GWRE
      Computer Software: Prepackaged Software
      Technology

    $GWRE
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    • Guidewire Appoints Jeff Sloan as Board Member

      Veteran Technology Leader Brings Wealth of Experience to the Guidewire Board of Directors Guidewire (NYSE:GWRE) today announced that it appointed Jeff Sloan to its Board of Directors effective January 21, 2025. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250127535286/en/Jeff Sloan joins Guidewire Software's Board of Directors. (Photo: Business Wire) "We are very excited to welcome Jeff Sloan to the Guidewire Board of Directors. With Guidewire Cloud Platform now established as the trusted platform used by P&C insurers globally, we are uniquely positioned to partner with insurers to drive continued growth and innovation. Jeff

      1/27/25 4:15:00 PM ET
      $CPAY
      $GPN
      $GWRE
      Business Services
      Consumer Discretionary
      Computer Software: Prepackaged Software
      Technology
    • Guidewire Software Set to Join S&P MidCap 400; Arrowhead Pharmaceuticals to Join S&P SmallCap 600

      NEW YORK, Jan. 22, 2025 /PRNewswire/ -- Guidewire Software Inc. (NYSE:GWRE) will replace Arrowhead Pharmaceuticals Inc. (NASD: ARWR) in the S&P MidCap 400, and Arrowhead Pharmaceuticals will replace Barnes Group Inc. (NYSE:B) in the S&P SmallCap 600 effective prior to the opening of trading on Monday, January 27. S&P 500 constituent Apollo Global Management Inc. (NYSE:APO) is acquiring Barnes Group in a deal expected to be completed soon pending final conditions. Following is a summary of the changes that will take place prior to the open of trading on the effective date: Effective Date Index Name       Action Company Name Ticker GICS Sector January 27, 2025 S&P MidCap 400 Addition Guidewi

      1/22/25 5:54:00 PM ET
      $APO
      $ARWR
      $B
      $GWRE
      Investment Managers
      Finance
      Biotechnology: Pharmaceutical Preparations
      Health Care
    • Guidewire Announces Norima Consulting as New Consulting Alliance Partner

      Guidewire (NYSE:GWRE) announced that Norima Consulting, a leader in technology, modernization, and client services, has joined Guidewire PartnerConnect as a Consulting alliance partner at the Select level serving insurance companies in North America. Norima Consulting's insurance and technical expertise includes digital transformation, cloud, and data engineering to optimize faster, more efficient business processes. The company partners with insurers to achieve business agility with Guidewire core system and cloud implementations, providing strategy and expertise in analysis, quality assurance, test automation, and data migration. With a team of professionals proficient in Guidewire produ

      10/3/24 8:55:00 AM ET
      $GWRE
      Computer Software: Prepackaged Software
      Technology

    $GWRE
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    • Guidewire Announces Third Quarter Fiscal Year 2025 Financial Results

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      6/3/25 4:15:00 PM ET
      $GWRE
      Computer Software: Prepackaged Software
      Technology
    • Guidewire to Announce Third Quarter Fiscal Year 2025 Financial Results on June 3, 2025

      Guidewire (NYSE:GWRE) announced that it will release its financial results for the fiscal quarter ended April 30, 2025 after market close on Tuesday, June 3, 2025. On that day, management will host an audio webcast at 2:00 p.m. PT (5:00 p.m. ET) to review and discuss the Company's results for the third quarter fiscal year 2025. The live audio webcast will be accessible to the public through the Investor Relations website at https://ir.guidewire.com/. A replay of the event will be available two hours after the conclusion of the live event and archived for a period of three months. What:   Guidewire Third Quarter Fiscal Year 2025 Financial Results Conference Call When:   Tuesday

      5/22/25 4:15:00 PM ET
      $GWRE
      Computer Software: Prepackaged Software
      Technology
    • Guidewire Announces Second Quarter Fiscal Year 2025 Financial Results

      Guidewire (NYSE:GWRE) today announced its financial results for the fiscal quarter ended January 31, 2025. "We delivered another excellent quarter driven by 12 cloud deals, with the majority at larger insurers who demand a platform that can handle their complexity and scale," said Mike Rosenbaum, chief executive officer, Guidewire. "Now, more than ever, we're reminded of the essential role insurers play in helping communities rebuild and recover, and we're proud to partner with these vital institutions and empower their ability to deliver when it matters most." "ARR, revenue and profitability finished above the high end of our outlook ranges in the second quarter," said Jeff Cooper, chief

      3/6/25 4:15:00 PM ET
      $GWRE
      Computer Software: Prepackaged Software
      Technology

    $GWRE
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    • Amendment: SEC Form SC 13G/A filed by Guidewire Software Inc.

      SC 13G/A - Guidewire Software, Inc. (0001528396) (Subject)

      7/10/24 1:14:41 PM ET
      $GWRE
      Computer Software: Prepackaged Software
      Technology
    • SEC Form SC 13G/A filed by Guidewire Software Inc. (Amendment)

      SC 13G/A - Guidewire Software, Inc. (0001528396) (Subject)

      2/14/24 10:28:04 AM ET
      $GWRE
      Computer Software: Prepackaged Software
      Technology
    • SEC Form SC 13G/A filed by Guidewire Software Inc. (Amendment)

      SC 13G/A - Guidewire Software, Inc. (0001528396) (Subject)

      2/13/24 7:04:43 PM ET
      $GWRE
      Computer Software: Prepackaged Software
      Technology