On September 5, 2024, Guidewire Software Inc (GWRE, Financial) released its 8-K filing detailing the financial results for the fourth quarter and fiscal year ended July 31, 2024. Guidewire Software provides software solutions for property and casualty insurers, including its flagship product InsuranceSuite and the cloud-based offering InsuranceNow.
Fiscal Year 2024 Financial Highlights
Guidewire Software Inc (GWRE, Financial) reported total revenue of $980.5 million for fiscal year 2024, an 8% increase from the previous year. Subscription and support revenue grew by 28% to $549.1 million, while license revenue decreased by 6% to $250.2 million, and services revenue fell by 14% to $181.2 million.
Annual recurring revenue (ARR) reached $872 million, a 14% increase on a constant currency basis. The company also reported a GAAP net loss of $6.1 million, a significant improvement from the $111.9 million loss in fiscal year 2023. Non-GAAP net income was $114.5 million, up from $29.2 million in the previous year.
Fourth Quarter Financial Highlights
For the fourth quarter of fiscal year 2024, Guidewire Software Inc (GWRE, Financial) reported total revenue of $291.5 million, an 8% increase from the same quarter in fiscal year 2023. Subscription and support revenue grew by 29% to $151.8 million, while license revenue decreased by 12% to $88.9 million, and services revenue decreased by 2% to $50.8 million.
GAAP net income for the fourth quarter was $16.8 million, compared to $12.2 million in the same quarter of the previous year. Non-GAAP net income was $54.0 million, down from $62.8 million in the same quarter of fiscal year 2023.
Profitability and Cash Flow
Guidewire Software Inc (GWRE, Financial) reported a GAAP loss from operations of $52.6 million for fiscal year 2024, compared to a loss of $149.5 million in fiscal year 2023. Non-GAAP income from operations was $99.5 million, up from $11.7 million in the previous year. The company generated $195.7 million in cash from operations during the fiscal year, demonstrating strong cash flow management.
Balance Sheet and Liquidity
As of July 31, 2024, Guidewire Software Inc (GWRE, Financial) had $1,129.5 million in cash, cash equivalents, and investments, compared to $927.5 million at the end of the previous fiscal year. The company did not repurchase any shares of common stock during the fiscal year.
Key Metrics and Analysis
Guidewire Software Inc (GWRE, Financial) achieved a fully ramped ARR growth of 19%, highlighting the company's ability to secure long-term recurring revenue. The increase in subscription and support revenue underscores the growing adoption of the company's cloud-based solutions.
“We finished the year with record fourth quarter sales activity and fully ramped ARR growth of 19%,” said Mike Rosenbaum, chief executive officer, Guidewire. “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 for Fiscal Year 2025
Guidewire Software Inc (GWRE, Financial) provided the following outlook for fiscal year 2025:
- ARR between $995 million and $1,005 million
- Total revenue between $1,135 million and $1,149 million
- Operating income (loss) between $(4) million and $10 million
- Non-GAAP operating income between $157 million and $171 million
- Operating cash flow between $220 million and $250 million
Guidewire Software Inc (GWRE, Financial) continues to demonstrate strong financial performance and growth in its subscription and support revenue, positioning itself well for future success in the property and casualty insurance software market.
Explore the complete 8-K earnings release (here) from Guidewire Software Inc for further details.
