U.S. Markets closed
  • S&P 500

    4,432.99
    -40.76 (-0.91%)
     
  • Dow 30

    34,584.88
    -166.44 (-0.48%)
     
  • Nasdaq

    15,043.97
    -137.96 (-0.91%)
     
  • Russell 2000

    2,236.87
    +3.96 (+0.18%)
     
  • Crude Oil

    71.96
    -0.65 (-0.90%)
     
  • Gold

    1,753.90
    -2.80 (-0.16%)
     
  • Silver

    22.42
    -0.33 (-1.44%)
     
  • EUR/USD

    1.1732
    -0.0040 (-0.3402%)
     
  • 10-Yr Bond

    1.3700
    +0.0390 (+2.93%)
     
  • Vix

    20.81
    +2.12 (+11.34%)
     
  • GBP/USD

    1.3737
    -0.0059 (-0.4286%)
     
  • USD/JPY

    109.8950
    +0.1770 (+0.1613%)
     
  • BTC-USD

    47,912.93
    -722.34 (-1.49%)
     
  • CMC Crypto 200

    1,193.48
    -32.05 (-2.62%)
     
  • FTSE 100

    6,963.64
    -63.84 (-0.91%)
     
  • Nikkei 225

    30,500.05
    +176.71 (+0.58%)
     

Guidewire (GWRE) Q4 Earnings & Revenues Top Estimates, Down Y/Y

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Guidewire Software GWRE reported fourth-quarter fiscal 2021 non-GAAP earnings of 37 cents per share, beating the Zacks Consensus Estimate by 32.1% but declining 55.4% year over year.

The company reported revenues of $229.4 million, which beat the Zacks Consensus Estimate by 3.3% but declined 5.8% year over year.

Guidewire closed a record 17 core cloud deals, including 16 for Insurance Suite in the fourth quarter.

Quarter in Detail

Subscription and support revenues (30.5% of total revenues) increased 29.3% from the year-ago quarter to $70 million due to higher subscription revenues, which jumped 47% to $48.6 million.

Support revenues were up 1.8% year over year to $21.4 million in the quarter under review.

Guidewire Software, Inc. Price, Consensus and EPS Surprise

Guidewire Software, Inc. Price, Consensus and EPS Surprise
Guidewire Software, Inc. Price, Consensus and EPS Surprise

Guidewire Software, Inc. price-consensus-eps-surprise-chart | Guidewire Software, Inc. Quote

License revenues (47.8% of total revenues) declined 20.3% year over year to $109.7 million while Services revenues (21.7% of total revenues) fell 4.2% year over year to $49.8 million.

Annual recurring revenues (ARR) were $575 million as of Jul 31, 2021, compared with $509 million as of Jul 30, 2020.

Non-GAAP gross margin contracted 810 basis points (bps) on a year-over-year basis to 60.8%.

Total operating expenses increased 16% year over year to $129.4 million.

Non-GAAP operating income was $32 million, down 58.1% year over year.

Balance Sheet

As of Jul 31, 2021, cash and cash equivalents and short-term investments came in at $1.1 billion compared with $1.3 billion as of Apr 30, 2021.

The company generated cash of $108.4 million from operating activities compared with $5.6 million reported in third-quarter fiscal 2021. Adjusted free cash flow was $82.7 million.

In the quarter under review, Guidewire repurchased 0.4 million shares worth $38.8 million.

Guidance

For first-quarter fiscal 2022, revenues are expected in the range of $162-$166 million. ARR is expected between $586 million and $590 million.

Non-GAAP operating loss is projected in the range of $23-$27 million.

For fiscal 2022, the company expects total revenues between $780 million and $790 million. ARR is expected between $657 million and $667 million.

Non-GAAP operating loss for fiscal 2022 is projected in the range of $28-$38 million.

For fiscal 2022, cash flow from operations is projected in the range of $30-$40 million.

Zacks Rank & Stocks to Consider

Guidewire currently has a Zacks Rank #3 (Hold).

Apple AAPL, Advanced Micro Devices AMD and Zscaler ZS are better-ranked stocks in the broader computer & technology sector. All the three stocks carry Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long term earnings growth rate for Apple, AMD and Zscaler stands at 12.7%, 44.6% and 50.6%, respectively.


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

Apple Inc. (AAPL) : Free Stock Analysis Report

Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report

Guidewire Software, Inc. (GWRE) : Free Stock Analysis Report

Zscaler, Inc. (ZS) : Free Stock Analysis Report

To read this article on Zacks.com click here.