Guidewire Software Inc (NYSE:GWRE) Beats Market’s Expectations

Guidewire Software Inc (NYSE:GWRE) stock rose 0.24% (As on June 8, 12:36:56 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 22. Subscription and support revenue was $86.9 million, an increase of 34%; services revenue was $56.7 million, an increase of 18%; and license revenue was $53.9 million, an increase of 6%. Annual recurring revenue, or ARR, was $637 million as of April 30, 2022, compared to $582 million as of July 31, 2021. ARR results for interim quarterly periods in fiscal year 2022 are measured on a constant currency basis, using the actual currency rates at the end of fiscal year 2021 throughout the year. Non-GAAP loss from operations was $24.9 million for the third quarter of fiscal year 2022, compared with $16.3 million for the same quarter in fiscal year 2021. Non-GAAP net loss was $21.8 million for the third quarter of fiscal year 2022, compared with $13.2 million for the same quarter in fiscal year 2021. Non-GAAP net loss was $21.8 million for the third quarter of fiscal year 2022, compared with $13.2 million for the same quarter in fiscal year 2021. In the third quarter, the company had exceeded the outlook for revenue and ARR driven by continued momentum for Guidewire Cloud, closing another eight cloud deals in the quarter. The Company had $1.1 billion in cash, cash equivalents, and investments at April 30, 2022, compared to $1.3 billion at July 31, 2021. The Company used $121.5 million in cash from operations during the first nine months of fiscal year 2022 and $43.8 million for the acquisition of HazardHub during the first quarter of fiscal year 2022.

GWRE in the third quarter of FY 22 has reported the adjusted loss per share of 26 cents, beating the analysts’ estimates for the adjusted loss per share of 30 cents, according to Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 20 percent to $197.45 million in the third quarter of FY 22, beating the analysts’ estimates for revenue by 5.70%.

For the fourth quarter of fiscal year 2022, the company expects ARR to be between $668 million and $674 million, total revenue to be between $226 million and $232 million and Non-GAAP operating income (loss) to be between $(2) million and $4 million.

For the fiscal 2022, the company expects ARR to be between $668 million and $674 million, total revenue to be between $794 million and $800 million, Non-GAAP operating income (loss) to be between $(53) million and $(47) million and Operating cash flow to be between $10 million and $20 million.

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