Latest news with #GWRE
Yahoo
6 days ago
- Business
- Yahoo
Guidewire's Q3 Earnings & Revenues Beat Estimates, Stock Surges
Guidewire Software, Inc GWRE reported non-GAAP earnings per share of 88 cents in third-quarter fiscal 2025 (ended April 30, 2025), up 238.5% year over year and beat the Zacks Consensus Estimate by 91.3%. The company reported revenues of $293.5 million, up 22% year over year. Revenues beat the Zacks Consensus Estimate by 2.7%. The figure also surpassed the company's guided range of $283-$289 million. This uptick was driven by solid sales activity. Guidewire Cloud continued to gain momentum in the reported quarter with 17 deal wins. Out of these deals, 14 were for various InsuranceSuite Cloud applications and three InsuranceNow deals. It closed seven core system deals with Tier 1 insurers and three with Tier 2 insurers. Guidewire Software, Inc. price-consensus-eps-surprise-chart | Guidewire Software, Inc. Quote As of April 30, annual recurring revenues ('ARR') were $960 million, up 15.9% year over year. GWRE now expects ARR for fiscal 2025 to be in the range of $1.012 billion to $1.022 billion (previous projection: $1-$1.01 billion).Driven by strong revenue performance in the fiscal third quarter, GWRE expects total revenues for fiscal 2025 to be between $1.178 billion and $1.186 billion compared with earlier guidance of $1.164 billion to $1.174 billion. Subscription revenues are now forecasted to be $660 million, while subscription and support revenues are expected to be $724 million. Services revenues are expected to be approximately $215 million. Non-GAAP operating income is estimated between $187 million and $195 million compared with $175-$185 million expected previously. Cash flow from operations is now anticipated to be in the range of $255-$275 million (earlier range: $230-$260 million). Following the results, shares are up 11.4% in the pre-market trading session today. In the past year, shares of the company have gained 71.1% compared with the Internet Software industry's growth of 35.6%. (See the Zacks Earnings Calendar to stay ahead of market-making news.) Image Source: Zacks Investment Research The subscription and support segment's revenues (62% of total revenues) soared 32% from the year-ago quarter's level to $181.8 revenues (19.5%) were up 2% year over year to $57.2 million. Services' revenues (18.5%) jumped 17% year over year to $54.5 gross margin expanded to 65.5% from 62.6% on a year-over-year basis. The subscription and support segment's gross margin increased to 70.6% from 65.6% on a year-over-year basis, attributed to higher-than-expected revenues and increases in cloud infrastructure platform efficiency, along with $4 million in credits received from its cloud service provider. Services' non-GAAP gross margin was 12.9% against negative 10.3% in the year-ago quarter. Total operating expenses increased 12.1% year over year to $178.2 million. Non-GAAP operating income was $46.1 million compared with $20.8 million in the year-ago quarter. As of April 30, 2025, cash and cash equivalents and short-term investments were $1,243.7 million compared with $1,412.4 million as of Jan. 31, by strong collections, GWRE generated $32.4 million in cash from operations in the quarter under discussion while free cash flow was nearly $27.8 million. For the fourth quarter of fiscal 2025, revenues are expected in the range of $332-$340 million. Non-GAAP operating income is estimated in the range of $52-$60 million. Guidewire currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here. CoreWeave CRWV reported first-quarter 2025 loss per share of $1.49, which was much wider than a loss of 62 cents in the year-ago quarter. Adjusted net loss for the quarter was $149.6 million compared with a loss of $23.6 million a year ago. Revenues in the quarter were a record $981.6 million, which beat the Zacks Consensus Estimate by 15.2%. Total revenues jumped 420% year over year. The top-line performance was driven by increasing demand for AI-cloud infrastructure. CRWV highlighted that AI is forecasted to have a global economic impact of $20 trillion by 2030, while the total addressable market is anticipated to increase to $400 billion by 2028. Shares of CoreWeave have skyrocketed 195% in the past month. Atlassian Corporation TEAM reported third-quarter fiscal 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Its non-GAAP earnings per share of 97 cents beat the Zacks Consensus Estimate by 7.8%. The figure jumped 9% from the year-ago quarter's non-GAAP earnings of 89 cents per share. TEAM's fiscal third-quarter revenues climbed 21.4% year over year to $1.36 billion and beat the Zacks Consensus Estimate by 0.72%. The top line was primarily driven by robust paid growth in Atlassian Government Cloud and Isolated Cloud, and momentum in AI-adoption. Shares of TEAM have inched up 1.4% in the past month. Zoom Communications Inc's. ZM first-quarter fiscal 2026 adjusted earnings of $1.43 per share beat the Zacks Consensus Estimate by 10% and increased 5.93% year over year. Zoom's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 10.33%. Revenues of $1.175 billion beat the consensus mark by 0.89% and increased 2.93% year over year. Adjusting for foreign currency impact, revenues in constant currency were $1.18 billion, up 3.4% year over year. Shares of ZM are up 3.5% in the past month. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Guidewire Software, Inc. (GWRE) : Free Stock Analysis Report Atlassian Corporation PLC (TEAM) : Free Stock Analysis Report Zoom Communications, Inc. (ZM) : Free Stock Analysis Report CoreWeave Inc. (CRWV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
GWRE Q1 Earnings Call: Cloud Platform Drives Growth, Misses Revenue Expectations, Raises Guidance
Insurance industry-focused software maker Guidewire (NYSE:GWRE) fell short of the market's revenue expectations in Q1 CY2025, but sales rose 22% year on year to $293.5 million. Its non-GAAP EPS of $0.88 per share was 88.1% above analysts' consensus estimates. Is now the time to buy GWRE? Find out in our full research report (it's free). Revenue: $293.5 million (22% year-on-year growth) Adjusted EPS: $0.88 vs analyst estimates of $0.47 (88.1% beat) Adjusted Operating Income: $46.06 million vs analyst estimates of $39.63 million (15.7% margin, 16.2% beat) Revenue Guidance for Q2 CY2025 is $336 million at the midpoint, above analyst estimates of $332.2 million Operating Margin: 1.5%, up from -6.9% in the same quarter last year Annual Recurring Revenue: $960 million at quarter end, up 15.9% year on year Billings: $289.3 million at quarter end, up 27.8% year on year Market Capitalization: $18.3 billion Guidewire's first quarter results reflected significant customer adoption of its cloud platform and broad-based momentum across the property and casualty insurance industry. CEO Mike Rosenbaum highlighted, 'We closed 17 cloud deals, 14 for at least one of our InsuranceSuite applications, and three for InsuranceNow.' Management attributed the progress to strong execution, particularly among large insurers, and pointed to international traction in Canada, Asia Pacific, and Europe. In addition to robust cloud migrations and expansions, the company's recent acquisition of Quanti was cited as a strategic move to enhance its pricing and rating technology capabilities. The quarter also saw notable customer go-lives, including Cincinnati Insurance Company and Santa Lucia, further validating Guidewire's cloud strategy. Looking ahead, Guidewire's increased guidance is underpinned by expectations for continued growth in annual recurring revenue and accelerated adoption of its cloud offerings. Management believes that investments in product innovation, such as Guidewire Industry Intelligence and generative AI use cases, will expand the platform's relevance for both large and smaller insurers. CFO Jeff Cooper stated the company expects to maintain upper-teens annual recurring revenue growth, driven by larger, longer-term customer commitments and record-low attrition. CEO Rosenbaum emphasized the importance of international markets, with a $60 million investment planned for Japan, signaling a long-term commitment to global expansion. However, management acknowledged that execution in the upcoming quarter is critical, given the high concentration of sales activity and variability in large deal timing. Management attributed the quarter's performance to strength in cloud adoption, successful execution in large and international markets, and early traction with advanced analytics products. Cloud adoption momentum: Guidewire continued to see increased demand for its cloud platform, with 17 new cloud deals and a strong mix of migrations, expansions, and net new wins. Management emphasized that Tier 1 and Tier 2 insurers are increasingly replacing legacy systems to enable faster product launches and business agility. Expansion of InsuranceNow: The company reported three net new InsuranceNow wins, including two of the largest ever on the product. CEO Rosenbaum attributed this success to improvements in the product and closer integration with Guidewire's cloud platform, making it more competitive in the lower tiers of the insurance market. International growth and investment: Guidewire highlighted notable cloud expansion in Canada, APAC, and EMEA, and announced a $60 million investment in Japan over five years to deepen local operations and partnerships. Management views this as a strategic move to capture growing demand from Japanese insurers amid evolving regulations and market dynamics. Advanced analytics and AI initiatives: The first sale of Guidewire Industry Intelligence, a predictive analytics model embedded in the claims workflow, was positioned as an initial step toward monetizing cloud-based industry data. Management also discussed generative AI use cases in claims processing, underwriting, and developer productivity, as key areas of customer interest. Quanti acquisition integration: The addition of Quanti's pricing and rating technology is expected to enhance Guidewire's ability to support more agile actuarial and pricing strategies. The integration is underway, with management noting its applicability for both large and small insurers looking to modernize pricing processes. Guidewire's outlook is shaped by expectations for continued cloud deal momentum, product innovation, and international expansion, tempered by execution risks in large deal timing and ongoing investments. Cloud platform expansion: Management expects sustained demand for Guidewire Cloud Platform, especially as more insurers pursue core system modernization to improve agility. The company sees ongoing migrations and expansions as a key source of recurring revenue growth. Product innovation and analytics: Guidewire plans to broaden adoption of Industry Intelligence and AI-driven tools, aiming to create value for insurers lacking in-house data resources. The rollout of new predictive models and integration of Quanti's capabilities are expected to differentiate Guidewire's platform and drive incremental revenue opportunities. International market commitments: The company's investment in Japan and expansion across Europe and Asia-Pacific are intended to capture market share as global insurers seek compliant, modern technology solutions. However, management cautioned that large deal timing and the pace of international adoption could cause variability in quarterly results. In the coming quarters, the StockStory team will monitor (1) continued growth in annual recurring revenue as Guidewire targets the $1 billion milestone, (2) customer adoption and expansion of Guidewire Industry Intelligence and other analytics tools, and (3) execution of the $60 million investment in Japan and resulting traction with local insurers. We will also track the integration of Quanti's technology and progress in cloud deal momentum globally. Guidewire currently trades at a forward price-to-sales ratio of 14.4×. At this valuation, is it a buy or sell post earnings? Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Globe and Mail
6 days ago
- Business
- Globe and Mail
Guidewire's Q3 Earnings & Revenues Beat Estimates, Stock Surges
Guidewire Software, Inc GWRE reported non-GAAP earnings per share of 88 cents in third-quarter fiscal 2025 (ended April 30, 2025), up 238.5% year over year and beat the Zacks Consensus Estimate by 91.3%. The company reported revenues of $293.5 million, up 22% year over year. Revenues beat the Zacks Consensus Estimate by 2.7%. The figure also surpassed the company's guided range of $283-$289 million. This uptick was driven by solid sales activity. Guidewire Cloud continued to gain momentum in the reported quarter with 17 deal wins. Out of these deals, 14 were for various InsuranceSuite Cloud applications and three InsuranceNow deals. It closed seven core system deals with Tier 1 insurers and three with Tier 2 insurers. As of April 30, annual recurring revenues ('ARR') were $960 million, up 15.9% year over year. GWRE now expects ARR for fiscal 2025 to be in the range of $1.012 billion to $1.022 billion (previous projection: $1-$1.01 billion). Driven by strong revenue performance in the fiscal third quarter, GWRE expects total revenues for fiscal 2025 to be between $1.178 billion and $1.186 billion compared with earlier guidance of $1.164 billion to $1.174 billion. Subscription revenues are now forecasted to be $660 million, while subscription and support revenues are expected to be $724 million. Services revenues are expected to be approximately $215 million. Non-GAAP operating income is estimated between $187 million and $195 million compared with $175-$185 million expected previously. Cash flow from operations is now anticipated to be in the range of $255-$275 million (earlier range: $230-$260 million). Following the results, shares are up 11.4% in the pre-market trading session today. In the past year, shares of the company have gained 71.1% compared with the Internet Software industry' s growth of 35.6%. (See the Zacks Earnings Calendar to stay ahead of market-making news.) GWRE's Fiscal Q3 in Details The subscription and support segment's revenues (62% of total revenues) soared 32% from the year-ago quarter's level to $181.8 million. License 's revenues (19.5%) were up 2% year over year to $57.2 million. Services ' revenues (18.5%) jumped 17% year over year to $54.5 million. Non-GAAP gross margin expanded to 65.5% from 62.6% on a year-over-year basis. The subscription and support segment's gross margin increased to 70.6% from 65.6% on a year-over-year basis, attributed to higher-than-expected revenues and increases in cloud infrastructure platform efficiency, along with $4 million in credits received from its cloud service provider. Services' non-GAAP gross margin was 12.9% against negative 10.3% in the year-ago quarter. Total operating expenses increased 12.1% year over year to $178.2 million. Non-GAAP operating income was $46.1 million compared with $20.8 million in the year-ago quarter. Financial Details of GWRE As of April 30, 2025, cash and cash equivalents and short-term investments were $1,243.7 million compared with $1,412.4 million as of Jan. 31, 2025. Driven by strong collections, GWRE generated $32.4 million in cash from operations in the quarter under discussion while free cash flow was nearly $27.8 million. GWRE's Fiscal Q4 Outlook For the fourth quarter of fiscal 2025, revenues are expected in the range of $332-$340 million. Non-GAAP operating income is estimated in the range of $52-$60 million. GWRE's Zacks Rank Guidewire currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here. Recent Performance of Other Companies in the Same Space CoreWeave CRWV reported first-quarter 2025 loss per share of $1.49, which was much wider than a loss of 62 cents in the year-ago quarter. Adjusted net loss for the quarter was $149.6 million compared with a loss of $23.6 million a year ago. Revenues in the quarter were a record $981.6 million, which beat the Zacks Consensus Estimate by 15.2%. Total revenues jumped 420% year over year. The top-line performance was driven by increasing demand for AI-cloud infrastructure. CRWV highlighted that AI is forecasted to have a global economic impact of $20 trillion by 2030, while the total addressable market is anticipated to increase to $400 billion by 2028. Shares of CoreWeave have skyrocketed 195% in the past month. Atlassian Corporation TEAM reported third-quarter fiscal 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Its non-GAAP earnings per share of 97 cents beat the Zacks Consensus Estimate by 7.8%. The figure jumped 9% from the year-ago quarter's non-GAAP earnings of 89 cents per share. TEAM's fiscal third-quarter revenues climbed 21.4% year over year to $1.36 billion and beat the Zacks Consensus Estimate by 0.72%. The top line was primarily driven by robust paid growth in Atlassian Government Cloud and Isolated Cloud, and momentum in AI-adoption. Shares of TEAM have inched up 1.4% in the past month. Zoom Communications Inc 's. ZM first-quarter fiscal 2026 adjusted earnings of $1.43 per share beat the Zacks Consensus Estimate by 10% and increased 5.93% year over year. Zoom's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 10.33%. Revenues of $1.175 billion beat the consensus mark by 0.89% and increased 2.93% year over year. Adjusting for foreign currency impact, revenues in constant currency were $1.18 billion, up 3.4% year over year. Shares of ZM are up 3.5% in the past month. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Guidewire Software, Inc. (GWRE): Free Stock Analysis Report Atlassian Corporation PLC (TEAM): Free Stock Analysis Report Zoom Communications, Inc. (ZM): Free Stock Analysis Report CoreWeave Inc. (CRWV): Free Stock Analysis Report
Washington Post
6 days ago
- Business
- Washington Post
Guidewire Software: Fiscal Q3 Earnings Snapshot
SAN MATEO, Calif. — SAN MATEO, Calif. — Guidewire Software Inc. (GWRE) on Tuesday reported fiscal third-quarter earnings of $46 million. The San Mateo, California-based company said it had profit of 54 cents per share. Earnings, adjusted for one-time gains and costs, were 88 cents per share. The results beat Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 46 cents per share. The provider of software to the insurance industry posted revenue of $293.5 million in the period, also topping Street forecasts. Six analysts surveyed by Zacks expected $285.7 million. For the current quarter ending in July, Guidewire Software said it expects revenue in the range of $332 million to $340 million. The company expects full-year revenue in the range of $1.18 billion to $1.19 billion. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on GWRE at
Yahoo
02-06-2025
- Business
- Yahoo
Guidewire Set to Report Q3 Earnings: Here's What Investors Should Know
Guidewire Software, Inc GWRE is slated to report third-quarter fiscal 2025 results tomorrow. Management expects revenues to be in the range of $283-$289 million. The Zacks Consensus Estimate is pegged at $285.7 million, indicating an 18.7% increase from the prior-year quarter's level. The consensus estimate for the bottom line is pegged at 46 cents, which remained unchanged in the past 60 days. GWRE reported earnings of 26 cents per share in the year-ago period. Image Source: Zacks Investment Research It delivered a trailing four-quarter earnings surprise of 40.2%, on average. Shares of GWRE have gained 96.1% in the past year compared with the Internet-Software industry's growth of 35%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Guidewire's performance is likely to have benefited from continued momentum in its cloud-based solutions. GWRE is expected to have benefited from secular tailwinds in the property & casualty insurance industry, especially as climate-driven catastrophes highlight the critical role of robust risk infrastructure. Solid deal volume across all tiers (especially Tier 1 insurers) and increasing international momentum, especially in Asia Pacific and Europe, are other tailwinds. In the last reported quarter, Guidewire Cloud reported 12 deal wins. Out of these deals, four were for InsuranceSuite Cloud, one InsuranceNow deal and the remainder for one or two core X Center applications. The company's focus on enhancing the Guidewire Cloud platform with new capabilities is expected to have boosted sales of subscription-based solutions. Management expects subscription and support revenues of $178 million, with services revenues of $52 million. GWRE noted that sequential growth in subscription revenues will be modest due to three fewer calendar days in the third quarter. The company has been expanding its partner ecosystem, including more than 500 cloud apps on Guidewire Marketplace and more than 10,500 certified professionals, to drive sustained activity and greater value from the platform. Guidewire Software, Inc. price-eps-surprise | Guidewire Software, Inc. Quote For the third quarter of fiscal 2025, ARR is anticipated to be between $942 million and $947 million. We expect ARR to be $944.6 million. GWRE's efforts to drive cloud operations efficiency to boost cloud margins remain an additional tailwind. The company's expectation for non-GAAP operating income is pinned in the range of $36-$42 million. Subscription and support non-GAAP gross margin is expected to remain strong at 68-69%, while services gross margins are guided at 10%. We expect non-GAAP gross margin Subscription and support to be 68.7% while our estimate for non-GAAP operating income is pegged at $39 million, up 87.8% year over year. Increasing investments in product enhancements, along with weakness in global macroeconomic conditions and inflation, remain concerning. License revenues are likely to have been affected owing to the migration of on-premise customers to the cloud. Our proven model does not predict an earnings beat for GWRE this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here. GWRE has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Here are some better-ranked stocks that you may consider, as our model shows that these have the right combination of elements to beat on earnings this season. Broadcom Inc. AVGO is set to release quarterly numbers on June 5. It currently has an Earnings ESP of +1.27% and a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for AVGO's to-be-reported quarter's earnings and revenues is pegged at $1.57 per share and $14.92 billion, respectively. Shares of AVGO have gained 83.1% in the past year. Oxford Industries, Inc. OXM presently has an Earnings ESP of +0.92% and a Zacks Rank #3. OXM is scheduled to report quarterly numbers on June 11. The Zacks Consensus Estimate for OXM's to-be-reported quarter's earnings and revenues is pegged at $1.82 per share and $385.2 million, respectively. Shares of OXM have lost 50.8% in the past year. Inc. JILL has an Earnings ESP of +1.71% and a Zacks Rank #3 at present. JILL is scheduled to report quarterly figures on June 11. The Zacks Consensus Estimate for JILL's to-be-reported quarter's earnings and revenues is pegged at 88 cents per share and $156.7 million, respectively. Shares of JILL have plunged 54.8% in the past year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Broadcom Inc. (AVGO) : Free Stock Analysis Report Guidewire Software, Inc. (GWRE) : Free Stock Analysis Report Oxford Industries, Inc. (OXM) : Free Stock Analysis Report Inc. (JILL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
