Guidewire Q4 Beats Estimates, Revenue And ARR Surge

Guidewire Software, Inc. GWRE shares are trading higher after the company reported fourth-quarter results on Thursday.

Total revenue rose 8% Y/Y to $291.5 million, beating the consensus of $283.9 million. Subscription and support revenue increased by 29% Y/Y to $151.8 million, while license revenue decreased by 12% Y/Y to $88.9 million. Also, Services revenue fell by 2% to $50.8 million in the quarter.

As of July-end, annual recurring revenue (ARR) was $872 million, up from $763 million on July 31, 2023.

Adjusted income from operations increased to $49.0 million from $44.7 million a year ago quarter. Adjusted EPS of $0.62 exceeded the consensus of $0.54.

As of July-end, Guidewire held $1.129 billion in cash, cash equivalents, and investments. In FY24, Guidewire generated $195.7 million in cash from operations and did not repurchase any shares of common stock.

Mike Rosenbaum, chief executive officer, said, “We enter the new fiscal year positioned well to continue accelerating modernization programs in the P&C industry and delivering increasing value to P&C insurers’ drive for greater agility and innovation.”

Outlook: Guidewire projects first-quarter total revenue of $251 million – $257 million ($236.1 million estimate) and expects FY 2025 revenue of $1.135 billion – $1.149 billion (vs. street view of $1.093 billion).

The company expects an ARR of $869 million – $874 million in the first quarter and $995 million to $1.005 billion in FY25.

Investors can gain exposure to the stock via Global X PropTech ETF PTEC and Global X FinTech ETF FINX.

Price Action: GWRE shares are up 8.38% at $155.99 premarket at the last check Friday.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.