Guidewire Posts Lower-Than-Expected Q1 Loss

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Guidewire Software, Inc. (GWRE) has delivered better-than-expected results for the first quarter of Fiscal Year 2022. The company provides a technology platform, consisting of software, services and a partner ecosystem, for the global Property and Casualty insurance industry.

GWRE reported an adjusted net loss of $0.21 per share, lower than the analysts’ expectations of a loss of $0.25 per share. The company had reported earnings of $0.17 per share in the prior-year period. (See Guidewire stock charts on TipRanks)

Revenues declined 2% year-over-year to $165.9 million but exceeded consensus estimates of $164.8 million. The decline in revenues reflected a 38% decrease in license revenue to $40.2 million, offsetting a 36% growth in subscription and support revenue to $79 million and a 1% increase in services revenue to $46.8 million.

The company reported annual recurring revenue (ARR) of $594 million, compared to $582 million in the last year’s quarter.

The CEO of Guidewire, Mike Rosenbaum, said, “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. 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.”


For the full year, the company forecasts revenues to be in the range of $780 million to $790 million. For the fiscal second quarter, Guidewire expects revenues to be in the range of $195 million to $199 million.

Price Target

Consensus among analysts is a Hold based on 4 Buys, 6 Holds and 2 Sells. The average Guidewire price target of $131.88 implies 12.5% upside potential to current levels.

See Analysts’ Top Stocks on TipRanks >>

Negative Sentiments

TipRanks’ Stock Investors tool shows that investors currently have a Very Negative stance on Guidewire, with 13.8% of investors on TipRanks decreasing their exposure to GWRE stock over the past 30 days.

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