GWRE Earnings Prediction
The chart below shows how GWRE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GWRE sees a +2.33% change in stock price 10 days leading up to the earnings, and a +3.70% change 10 days following the report. On the earnings day itself, the stock moves by -1.03%. This data can give you a slight idea of what to expect for the next quarter's release.
GWRE Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
262.90M
26.76%
-9.82%
Gross Margin
60.25%
11.29%
-5.95%
Operating Margin
-1.80%
-88.82%
-149.45%
Net Margin
3.48%
126.67%
-39.48%
EPS
0.11
133.33%
-45.00%
No Data Available
GWRE Earnings Analysis
GUIDEWIRE SOFTWARE, INC. Corporation (GWRE.N) Earnings Conference Call
Positive
Strong Revenue Performance: Total revenue was $263 million, above the high end of our outlook and up 27% year-over-year.
Subscription Revenue Acceleration: Subscription and support revenue growth accelerated to 33% in Q1.
High Subscription Margin: Subscription and support gross margin hit 70% in the quarter.
Billion-Dollar Revenue Milestone: Total revenue on a trailing 12-month basis surpassed $1 billion.
Cash and Investments Overview: We ended the quarter with over $1.5 billion in cash, cash equivalents and investments.
Negative
Negative Operating Cash Flow: Operating cash flow ended the quarter at negative $62 million, reflecting annual employee bonuses and commission expenses related to Q4 sales paid out in Q1.
Cash Position Overview: We ended the quarter with over $1.5 billion in cash, cash equivalents and investments, indicating a significant cash outflow during the quarter.
Revenue Exceeds Expectations: Total revenue was $263 million, above the high end of our outlook and up 27% year-over-year, but still reflecting challenges in customer growth.
Seasonal Cash Flow Trends: Operating cash flow is always lower than the other quarters in the fiscal year, indicating a seasonal trend that negatively impacts Q1 results.
Operating Income Expectations Decline: We expect non-GAAP operating income to be between $39 million and $45 million, which is lower than previous expectations, indicating potential challenges ahead.
GWRE FAQs
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GWRE Earning Call Sentiment
Guidewire Software, Inc. (GWRE) Q1 2025 Earnings Call Transcript
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GWRE.N
0.58%Positive
The earnings call summary highlights strong financial performance with a 27% revenue increase and improved gross margins. The Q&A section revealed confidence in cloud migration and strategic partnerships, despite some margin pressure next quarter. The revolving credit facility supports growth, and optimistic guidance suggests potential stock price appreciation. The positive engagement with vendors and exploration of generative AI further bolster the outlook. However, the lack of a specific timeline for ARR convergence slightly tempers enthusiasm. Overall, the sentiment is positive, likely leading to a 2% to 8% stock price increase.
