Guidewire shrinks net loss, increases revenues for fiscal Q1

Guidewire Software, a platform provider for property and casualty re/insurers, has reported a net loss of $27.1 million for the first quarter of fiscal year 2024, compared with $69.3 million for the same period in the previous fiscal year.

Similarly, the company’s loss from operations saw a loss of $33.8 million for the first quarter of fiscal year 2024, a lower figure compared to the $74.6 million for the same quarter in 2023.

At the same time, Guidewire’s total revenues for Q1 increased by 6% to $207.4 million. Subscription and support revenue was $127.6 million, an increase of 29%; services revenue was $45.8 million, a decrease of 17%; and license revenue was $34.0 million, a decrease of 17%.

As of October 31, 2023, annual recurring revenue, or ARR, was $770 million, compared to $763 million as of July 31, 2023.

Guidewire notes that 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.

The company also reports that it had $853.6 million in cash, cash equivalents, and investments at October 31, 2023, compared to $927.5 million at July 31, 2023.

It also noted that Guidewire used $72.1 million in cash from operations during the first quarter of fiscal year 2024.

Mike Rosenbaum, chief executive officer, Guidewire, commented: “We are thrilled with our first quarter financial results and the continued momentum in Guidewire Cloud Platform with another seven cloud deals closed.

“The excitement around Guidewire Cloud Platform was on full display at our annual customer conference, Connections, where approximately 3,000 members from our customer and partner communities came together to share success stories, collaborate, and learn more about Innsbruck, our latest and ninth cloud release.

“We are off to a strong start to the fiscal year with ARR finishing above the high end of our outlook, and margins significantly beating our expectations,” said Jeff Cooper, chief financial officer, Guidewire. “We are at an exciting inflection point with respect to profitability and are raising our profitability targets for the year.”

Looking ahead, Guidewire expects to report total revenue of between $237 million and $243 million for Q2 of fiscal year 2024, along with ARR of up to $798, and an operating loss of between $24 million and $19 million.

For the full fiscal year, it projects revenues of $976 million to $986 million, ARR of up to $858 million and an operating loss of between $75 million and $65 million.

The post Guidewire shrinks net loss, increases revenues for fiscal Q1 appeared first on ReinsuranceNe.ws.