Guidewire Software Inc (NYSE:GWRE) stock rose 4.58% (As on Mar 9, 11:13:34 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY 22. Subscription and support revenue was $84.3 million, an increase of 42%; services revenue was $50.5 million, an increase of 19%; and license revenue was $69.8 million, a decrease of 10%. Annual recurring revenue, or ARR, was $620 million as of January 31, 2022, compared to $582 million as of July 31, 2021. ARR results for interim quarterly periods in fiscal year 2022 are based on actual currency rates at the end of fiscal year 2021, held constant throughout the year. Non-GAAP income from operations was $3.0 million for the second quarter of fiscal year 2022, compared with $7.5 million for the same quarter in fiscal year 2021. Non-GAAP net loss was $4.8 million for the second quarter of fiscal year 2022, compared with net income of $9.0 million for the same quarter in fiscal year 2021. The Company had $1.1 billion in cash, cash equivalents, and investments at January 31, 2022, compared to $1.3 billion at July 31, 2021. The Company used $110.1 million in cash from operations during the first half of fiscal year 2022 and $43.8 million for the acquisition of Hazard Hub during the first quarter of fiscal year 2022.
GWRE in the second quarter of FY 22 has reported the adjusted loss per share of 6 cents, beating the analysts’ estimates for the adjusted loss per share of 11 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 14 percent to $204.6 million in the second quarter of FY 22, beating the analysts’ estimates for revenue of $197.5 million.
Additionally, during the second quarter of fiscal year 2022, the Company used $11.2 million to repurchase 0.1 million shares of its common stock, which completes its authorized share repurchase program of $200 million.
For the third quarter ending in May, Guidewire Software expects revenue to be in the range of $186 million to $190 million. Analysts surveyed by Zacks had expected revenue of $182.9 million. Q3 2022 ARR is expected to be between $632 million and $635 million, Operating income (loss) to be between $(65) million and $(62) million and Non-GAAP operating income (loss) to be between $(29) million and $(25) million
The company expects full-year revenue in the range of $784 million to $792 million.