Wed, Jun 5, 10:02 AM (138 days ago)
Guidewire Software, Inc.'s Form 10-Q for the quarter ended April 30, 2024, highlights several key financial metrics and operational insights. The company reported total revenue of $240.7 million, up 16% year-over-year, driven primarily by a 35% increase in subscription revenue to $120.4 million. However, support revenue declined by 5% due to customers migrating to subscription services. License revenue showed mixed results, with term licenses increasing by 9% but perpetual licenses surging by 2520% from a low base. Services revenue decreased by 6%, reflecting a shift towards SI partners leading more new implementations. Cost of revenue decreased by 9% to $98.5 million, largely due to lower subcontractor and personnel costs. Consequently, gross profit improved significantly, with gross margins rising to 59% from 48% a year ago. Operating expenses increased modestly by 1%, with research and development costs up 5%, and sales and marketing expenses up 8%. General and administrative expenses, however, fell by 10%. The company posted a net loss of $5.5 million, a substantial improvement from a $45.6 million loss in the same quarter last year. The effective tax rate was 61%, influenced by various tax benefits and deductions. Guidewire's Annual Recurring Revenue (ARR) as of April 30, 2024, was $828 million, up from $763 million as of July 31, 2023. The company's cash and cash equivalents stood at $359.6 million, with total assets of $2.04 billion. The company noted the potential impact of global economic uncertainties, competitive pressures, and the ongoing transition to a cloud-based subscription model as key factors that could influence future performance.