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Guidewire (NYSE: GWRE) today announced its financial results for the fiscal quarter ended October 31, 2021.
“We’re off to a strong start to the fiscal year with record first quarter deal activity, ARR exceeding the high-end of our guidance range, and subscription revenue growing over 50% year-over-year,” said Mike Rosenbaum, chief executive officer, Guidewire Software. “I was particularly pleased to see this level of activity after the strong finish to last fiscal year, which speaks to Guidewire Cloud’s growing momentum.”
First Quarter Fiscal Year 2022 Financial Highlights
Revenue:
•Total revenue for the first quarter of fiscal year 2022 was $165.9 million, a decrease of 2% from the same quarter in fiscal year 2021. Subscription and support revenue was $79.0 million, an increase of 36%; services revenue was $46.8 million, an increase of 1%; and license revenue was $40.2 million, a decrease of 38%.
•Annual recurring revenue, or ARR, was $594 million as of October 31, 2021, 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.
Profitability:
•GAAP loss from operations was $65.4 million for the first quarter of fiscal year 2022, compared with $31.6 million for the same quarter in fiscal year 2021.
•Non-GAAP loss from operations was $28.7 million for the first quarter of fiscal year 2022, compared with income of $2.8 million for the same quarter in fiscal year 2021.
•GAAP net loss was $51.3 million for the first quarter of fiscal year 2022, compared with $20.2 million for the same quarter in fiscal year 2021. GAAP net loss per share was $0.62, based on diluted weighted average shares outstanding of 83.2 million, compared with $0.24 for the same quarter in fiscal year 2021, based on diluted weighted average shares outstanding of 83.6 million.
•Non-GAAP net loss was $18.1 million for the first quarter of fiscal year 2022, compared with net income of $14.4 million for the same quarter in fiscal year 2021. Non-GAAP net loss per share was $0.21, based on diluted weighted average shares outstanding of 83.2 million, compared with net income per share of $0.17 for the same quarter in fiscal year 2021, based on diluted weighted average shares outstanding of 84.2 million.
Liquidity:
•The Company had $1.1 billion in cash, cash equivalents, and investments at October 31, 2021, compared to $1.3 billion at July 31, 2021. The Company used $107.0 million in cash from operations and $43.8 million for the acquisition of Hazard Hub during the first quarter of fiscal year 2022.
•During the first quarter of fiscal year 2022, the Company used $26.3 million to repurchase 0.2 million shares of its common stock.
Business Outlook:
Guidewire is issuing the following outlook for the second quarter of fiscal year 2022 based on current expectations:
•ARR between $613 million and $616 million
•Total revenue between $195 million and $199 million
•Operating income (loss) between $(52) million and $(49) million
•Non-GAAP operating income (loss) between $(15) million and $(11) million
Guidewire is issuing the following updated outlook for fiscal year 2022 based on current expectations:
•ARR between $659 million and $669 million
•Total revenue between $780 million and $790 million
•Operating income (loss) between $(205) million and $(195) million
•Non-GAAP operating income (loss) between $(58) million and $(48) million
•Operating cash flow between $10 million and $20 million