Wed, Jun 4, 10:01 AM (20 days ago)
**Guidewire Software, Inc. (GWRE) - Quarterly Financial Health and Performance Summary** **Financial Performance (Q1 2025 vs. Q1 2024):** - **Revenue:** $293.5 million (up 22% YoY) - Subscription and support: $181.8 million (up 32% YoY) - License: $57.2 million (up 2% YoY) - Services: $54.5 million (up 17% YoY) - **Gross Profit:** $182.7 million (up 28% YoY) - Gross margin: 62% (up 3% YoY) - **Operating Expenses:** $178.2 million (up 12% YoY) - Research and development: $72.9 million (up 10% YoY) - Sales and marketing: $57.8 million (up 14% YoY) - General and administrative: $47.5 million (up 12% YoY) - **Net Income:** $46.0 million (up from a loss of $5.5 million in Q1 2024) - **Earnings per Share (EPS):** $0.54 (up from a loss of $0.07 in Q1 2024) **Financial Performance (9M 2025 vs. 9M 2024):** - **Revenue:** $845.9 million (up 23% YoY) - Subscription and support: $529.4 million (up 33% YoY) - License: $158.3 million (down 2% YoY) - Services: $158.2 million (up 21% YoY) - **Gross Profit:** $520.2 million (up 31% YoY) - Gross margin: 62% (up 4% YoY) - **Operating Expenses:** $508.8 million (up 11% YoY) - Research and development: $212.1 million (up 9% YoY) - Sales and marketing: $164.7 million (up 14% YoY) - General and administrative: $132.0 million (up 9% YoY) - **Net Income:** $17.9 million (up from a loss of $22.9 million in 9M 2024) - **Earnings per Share (EPS):** $0.21 (up from a loss of $0.28 in 9M 2024) **Cash Flow (9M 2025 vs. 9M 2024):** - **Operating Cash Flow:** $56.0 million (up from $1.9 million in 9M 2024) - **Investing Cash Flow:** -$178.6 million (down from -$45.1 million in 9M 2024) - **Financing Cash Flow:** $81.6 million (up from $14 in 9M 2024) **Key Metrics:** - **Annual Recurring Revenue (ARR):** $960 million (up from $864 million in 9M 2024) - **Free Cash Flow:** $42.7 million (up from -$12.1 million in 9M 2024) **Debt and Liquidity:** - **Cash and Cash Equivalents:** $511.5 million (down from $549.2 million in 9M 2024) - **Working Capital:** $907.1 million (up from $457.9 million in 9M 2024) - **Debt:** $690.0 million in Convertible Senior Notes due 2029 **Future Operations Impact:** - **Growth Strategy:** Continued focus on cloud-based subscription services and international expansion. - **Risks:** Competitive pressures, economic downturns, regulatory changes, and global events. - **Opportunities:** Increasing demand for digital engagement and analytics products, strategic acquisitions, and partnerships. **Uncertainties:** - **Economic Volatility:** Inflation, tariffs, and global events may impact customer spending and revenue growth. - **Regulatory Environment:** Changes in data privacy and cybersecurity laws may increase compliance costs. - **Technological Advancements:** Rapid evolution of AI and machine learning technologies may require significant investments. **Conclusion:** Guidewire Software, Inc. demonstrated strong financial health and performance in Q1 and 9M 2025, with significant revenue growth, improved gross margins, and positive net income. The company's strategic focus on cloud-based subscription services and international expansion positions it for continued growth. However, it faces uncertainties related to economic volatility, regulatory changes, and technological advancements. Overall, Guidewire Software, Inc. is well-positioned to capitalize on market opportunities while navigating potential challenges.