Guidewire Software Inc (NYSE:GWRE) stock rallies 11.17% (As on September 6, 12:13:00 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 24. Subscription and support revenue was $151.8 million, an increase of 29%; license revenue was $88.9 million, a decrease of 12%; and services revenue was $50.8 million, a decrease of 2%, each as compared to the same quarter in fiscal year 2023. Non-GAAP income from operations was $49.0 million for the fourth quarter of fiscal year 2024, compared with $44.7 million for the same quarter in fiscal year 2023. Non-GAAP net income was $54.0 million for the fourth quarter of fiscal year 2024, compared with $62.8 million for the same quarter in fiscal year 2023. As of July 31, 2024, annual recurring revenue, or ARR, was $872 million based on currency exchange rates as of July 31, 2023, compared to $763 million as of July 31, 2023. ARR grew in fiscal year 2024 by 14% on a constant currency basis. Guidewire had $1,129.5 million in cash, cash equivalents, and investments at July 31, 2024, compared to $927.5 million at July 31, 2023. Guidewire generated $195.7 million in cash from operations during the fiscal year ended July 31, 2024. During the fiscal year ended July 31, 2024, the Company did not repurchase any shares of common stock.

GWRE in the fourth quarter of FY 24 has reported the adjusted earnings per share of 62 cents, beating the analysts’ estimates for the adjusted earnings per share of 52 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 8 percent to $291.52 million in the fourth quarter of FY 24, beating the analysts’ estimates for revenue by 2.95%.

For first quarter of fiscal 2025, the company expects ARR to be between $869 million and $874 million, Total revenue to be between $251 million and $257 million, Operating loss to be between $18 million and $12 million and Non-GAAP operating income to be between $18 million and $24 million.

For fiscal 2025, the company expects ARR to be between $995 million and $1,005 million, total revenue to be between $1,135 million and $1,149 million, Operating income (loss) to be between $(4) million and $10 million, Non-GAAP operating income to be between $157 million and $171 million and Operating cash flow to be between $220 million and $250 million.