Guidewire Software Inc (NYSE:GWRE) stock rose 12.55% (As on September 8, 11:39:20 AM UTC-4, Source: Google Finance) after the company reported that revenue for the fiscal first quarter would miss analysts’ estimates. However, the company beats the market’s expectations for the fourth quarter of FY 23. The company has closed 17 cloud deals in the quarter, bringing the total for the year to 37. The company has finished the year at $763 million in ARR, up 15% and just under $900 million in fully ramped ARR, up 17%. Sales highlights in the quarter include phenomenal progress with Tier 1 insurers, closing 11 Tier 1 deals this quarter. This includes a win at Progressive Insurance, one of the leading insurance brands in North America, where the partnership is specific to their non-personal auto lines of business and a full suite win at Allstate Canada. The company also drove further global expansion of GWCP with three wins in Europe and two in the Asia Pacific market.  In Q4, GWRE has completed an agreement with West Bend Mutual Insurance to move their claims processes to claim center on the Guidewire cloud platform.

GWRE in the fourth quarter of FY 23 has reported the adjusted earnings per share of 74 cents, beating the analysts’ estimates for the adjusted earnings per share of 34 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 35.9 percent to $270 million in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $261 million. Subscription and support revenue was $430 million, up 25% year-over-year. On a non-GAAP basis, gross profit was $495 million. This was up 18% year-over-year. Subscription and support gross margin was 55%, an 8 percentage point increase over last year. Operating income was $11.7 million. Overall stock-based compensation was $143 million for the year, up 4% and a little higher than the expectations due to low employee attrition levels. The company ended the quarter with $927.5 million in cash, cash equivalents and investments.

Guidewire is expecting for Q1 revenue to be in the range of $197 million to $202 million, while analysts polled by FactSet anticipated $212.5 million.

For fiscal 2024, the company expects ARR of between $846 million and $858 million, representing 12% constant currency at the midpoint. In FY ’25, the company expects ARR growth to accelerate to 16% to 17%.