Guidewire Software Inc (NYSE:GWRE) stock rose 5.71% (As on December 7, 11:34:27 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 23. Subscription and support revenue was $99.1 million, an increase of 25%; services revenue was $55.3 million, an increase of 18%; and license revenue was $41.0 million, a decrease of 2%. As of October 31, 2022, annual recurring revenue, or ARR, was $673 million, compared to $664 million as of July 31, 2022. Non-GAAP loss from operations was $35.9 million for the first quarter of fiscal year 2023, compared with $28.7 million for the same quarter in fiscal year 2022. Non-GAAP net loss was $9.9 million for the first quarter of fiscal year 2023, compared with $18.1 million for the same quarter in fiscal year 2022. The Company had $0.9 billion in cash, cash equivalents, and investments at October 31, 2022, compared to $1.2 billion at July 31, 2022. The Company used $87.4 million in cash from operations during the first quarter of fiscal year 2023.

GWRE in the first quarter of FY 23 has reported the adjusted loss per share of 12 cents, beating the analysts’ estimates for the adjusted loss per share of 39 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 18 percent to $195.3 million in the first quarter of FY 23, beating the analysts’ estimates for revenue of $190.5 million.

During the first quarter of fiscal year 2023, the Company authorized a $400 million share repurchase program. As part of this program, the Company entered into an accelerated share repurchase agreement (“ASR”) to repurchase an aggregate of $200 million of Guidewire’s outstanding shares of common stock. Under the terms of the ASR, the Company received an aggregate initial share delivery of 2,581,478 shares, with the remainder expected to be delivered upon the final settlement under the ASR, which is scheduled to occur no later than the third quarter of its fiscal year 2023, upon completion of the repurchases.

For the current quarter ending in January, Guidewire Software expects revenue in the range of $221 million to $226 million. Analysts surveyed by Zacks had expected revenue of $189.1 million. ARR is expected to be between $695 million and $700 million in Q2

The company expects full-year revenue in the range of $886 million to $896 million. FY 2023 ARR is expected to be between $745 million and $760 million.