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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
Business Wire
02-06-2025
- Business
- Business Wire
Guidewire Wins Six XCelent Awards and ‘Luminary' Distinction in Celent's Regional Reviews of P&C Policy Administration Systems
SAN MATEO, Calif.--(BUSINESS WIRE)--Guidewire (NYSE: GWRE) announced that Guidewire PolicyCenter has been selected as a winner of six Celent XCelent awards and named a 'Luminary' in three regional Celent Policy Administration System Vendors reports. InsuranceNow was also named a Functional Standout in the 2025 North America report. For the second consecutive year, across all four global regions Guidewire has earned the most XCelent awards of all vendors. The 'Luminary' designation is the highest distinction possible and acknowledges the sophistication and breadth of the vendor's technology and functionality. 'Guidewire PolicyCenter is a leading policy administration system that provides comprehensive functionality and is thoughtfully designed and easy to use. Congratulations to Guidewire for its recognition as a Luminary and achieving the best possible placement on the Celent Technical Capability Matrix charts in the North America, EMEA and APAC regions of the 2025 Policy Administration Systems Vendors reports for P&C insurance,' said Harry Huberty, Senior Analyst - North America, Celent, and co-author of the reports. The report results are: Policy Administration Systems: North America: P&C Insurance; North America Edition XCelent Advanced Technology 2025 XCelent Breadth of Functionality 2025 XCelent Customer Base and Support 2025 Policy Administration Systems: P&C Insurance; EMEA Edition XCelent Breadth of Functionality 2025 XCelent Customer Base and Support 2025 Policy Administration Systems: P&C Insurance: APAC Edition XCelent Breadth of Functionality 2025 In the Celent Technical Capability Matrix for each region, PolicyCenter is placed in the following categories: APAC - Luminary EMEA - Luminary NAM - Luminary LATAM - Technology Standout In the Celent Technical Capability Matrix for North America, InsuranceNow is placed in the following category: Functionality Standout 'Congratulations to Guidewire on the recognition of PolicyCenter and InsuranceNow as standout fully-featured policy administration systems,' said Karlyn Carnahan, Head of North America Insurance, Celent, and co-author of the reports. 'Guidewire's top-tier systems support the breadth of the insurance lifecycle and enable insurers to move quickly and adapt to market changes.' 'We are delighted to be recognized for delivering solutions that power insurance innovation and agility, and accelerate speed to market for P&C insurers,' said Michael Howe, Chief Product Officer, Guidewire. 'Through cloud, AI, and a commitment to continuous innovation, our customers across the globe are achieving operational excellence and accelerating business growth.' About Guidewire Guidewire is the platform P&C insurers trust to engage, innovate, and grow efficiently. More than 570 insurers in 42 countries, from new ventures to the largest and most complex in the world, rely on Guidewire products. With core systems leveraging data and analytics, digital, and artificial intelligence, Guidewire defines cloud platform excellence for P&C insurers. We are proud of our unparalleled implementation record, with 1,700+ successful projects supported by the industry's largest R&D team and SI partner ecosystem. Our marketplace represents the largest solution partner community in P&C, where customers can access hundreds of applications to accelerate integration, localization, and innovation. For more information, please visit and follow us on X (formerly known as Twitter) and LinkedIn. NOTE: For information about Guidewire trademarks, visit .
Yahoo
02-06-2025
- Business
- Yahoo
Guidewire Wins Six XCelent Awards and ‘Luminary' Distinction in Celent's Regional Reviews of P&C Policy Administration Systems
SAN MATEO, Calif., June 02, 2025--(BUSINESS WIRE)--Guidewire (NYSE: GWRE) announced that Guidewire PolicyCenter has been selected as a winner of six Celent XCelent awards and named a "Luminary" in three regional Celent Policy Administration System Vendors reports. InsuranceNow was also named a Functional Standout in the 2025 North America report. For the second consecutive year, across all four global regions Guidewire has earned the most XCelent awards of all vendors. The "Luminary" designation is the highest distinction possible and acknowledges the sophistication and breadth of the vendor's technology and functionality. "Guidewire PolicyCenter is a leading policy administration system that provides comprehensive functionality and is thoughtfully designed and easy to use. Congratulations to Guidewire for its recognition as a Luminary and achieving the best possible placement on the Celent Technical Capability Matrix charts in the North America, EMEA and APAC regions of the 2025 Policy Administration Systems Vendors reports for P&C insurance," said Harry Huberty, Senior Analyst - North America, Celent, and co-author of the reports. The report results are: Policy Administration Systems: North America: P&C Insurance; North America Edition XCelent Advanced Technology 2025 XCelent Breadth of Functionality 2025 XCelent Customer Base and Support 2025 Policy Administration Systems: P&C Insurance; EMEA Edition XCelent Breadth of Functionality 2025 XCelent Customer Base and Support 2025 Policy Administration Systems: P&C Insurance: APAC Edition XCelent Breadth of Functionality 2025 In the Celent Technical Capability Matrix for each region, PolicyCenter is placed in the following categories: APAC - Luminary EMEA - Luminary NAM - Luminary LATAM - Technology Standout In the Celent Technical Capability Matrix for North America, InsuranceNow is placed in the following category: Functionality Standout "Congratulations to Guidewire on the recognition of PolicyCenter and InsuranceNow as standout fully-featured policy administration systems," said Karlyn Carnahan, Head of North America Insurance, Celent, and co-author of the reports. "Guidewire's top-tier systems support the breadth of the insurance lifecycle and enable insurers to move quickly and adapt to market changes." "We are delighted to be recognized for delivering solutions that power insurance innovation and agility, and accelerate speed to market for P&C insurers," said Michael Howe, Chief Product Officer, Guidewire. "Through cloud, AI, and a commitment to continuous innovation, our customers across the globe are achieving operational excellence and accelerating business growth." About Guidewire Guidewire is the platform P&C insurers trust to engage, innovate, and grow efficiently. More than 570 insurers in 42 countries, from new ventures to the largest and most complex in the world, rely on Guidewire products. With core systems leveraging data and analytics, digital, and artificial intelligence, Guidewire defines cloud platform excellence for P&C insurers. We are proud of our unparalleled implementation record, with 1,700+ successful projects supported by the industry's largest R&D team and SI partner ecosystem. Our marketplace represents the largest solution partner community in P&C, where customers can access hundreds of applications to accelerate integration, localization, and innovation. For more information, please visit and follow us on X (formerly known as Twitter) and LinkedIn. NOTE: For information about Guidewire trademarks, visit View source version on Contacts Melissa CobbDirector, Public RelationsGuidewire Software, Inc.+1.650.464.1177mcobb@ 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
