Guidewire Software Inc (NYSE:GWRE) stock rose 3.17% (As on March 8, 11:26:15 AM UTC-4, Source: Google Finance) after the company posted mixed result for the fourth quarter of FY 23. Subscription and support revenue was $131.6 million, an increase of 24%; services revenue was $38.2 million, a decrease of 29%; and license revenue was $71.1 million, a decrease of 3%, each as compared to the same quarter in fiscal year 2023. As of January 31, 2024, annual recurring revenue, or ARR, was $800 million, compared to $763 million as of July 31, 2023. 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. Non-GAAP income from operations was $25.7 million for the second quarter of fiscal year 2024, compared with non-GAAP income from operations of $15.1 million for the same quarter in fiscal year 2023. Non-GAAP net income was $39.1 million for the second quarter of fiscal year 2024, compared with non-GAAP net loss of $17.4 million for the same quarter in fiscal year 2023. Guidewire had $932.7 million in cash, cash equivalents, and investments at January 31, 2024, compared to $927.5 million at July 31, 2023. Guidewire used $2.8 million in cash from operations during the six months ended January 31, 2024.
GWRE in the second quarter of FY 24 has reported the adjusted earnings per share of 46 cents, beating the analysts’ estimates for the adjusted earnings per share of 21 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 4 percent to $240.9 million in the second quarter of FY 24, missing the analysts’ estimates for revenue of $240.93 million.
Guidewire increases its ARR guidance for the fiscal year to between $852 million and $862 million. For fiscal year 2024, total revenue to be between $957 million and $967 million, Operating loss between $(71) million and $(61) million, Non-GAAP operating income between $82 million and $92 million and Operating cash flow to be between $120 million and $140 million
For the third quarter, ARR is expected to conclude between $815 million and $820 million, with total revenue forecasted at $228 million to $234 million, Operating loss to be between $(34) million and $(28) million and Non-GAAP operating income to be between $4 million and $10 million.
The company maintains a positive stance on its $1 billion 2025 outlook.