Reported Q: Q2 2024 Rev YoY: +3.6% EPS YoY: +209.1% Move: -2.88%
Guidewire Software Inc
GWRE
$126.66 -2.88%
Exchange NYSE Sector Technology Industry Software Application
Q2 2024
Published: Mar 8, 2024

Company Status Snapshot

Fast view of the latest quarter outcome for GWRE

Reported

Report Date

Mar 8, 2024

Quarter Q2 2024

Revenue

240.90M

YoY: +3.6%

EPS

0.12

YoY: +209.1%

Market Move

-2.88%

Previous quarter: N/A

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Earnings Highlights

  • Revenue of $240.90M up 3.6% year-over-year
  • EPS of $0.12 increased by 209.1% from previous year
  • Gross margin of 59.1%
  • Net income of 9.69M
  • "ARR of $800 million, which was above our outlook range." - Jeffrey Cooper
GWRE
Company GWRE

Executive Summary

Summary: Guidewire reported a solid QQ2 2024 quarter with meaningful progress on its cloud-first strategy and partner-led services transformation. ARR reached $800 million, enabling Guidewire to raise its ARR guidance for FY2024 to a range of $852–$862 million and project total revenue of $957–$967 million. Management highlighted a robust cloud sequence (11 cloud deals in the quarter, including four Tier 1 deals) and a growing SI ecosystem that is shifting a greater portion of implementation revenue to partners, with total revenue constraints largely driven by lower subcontracted work rather than weaker demand. On a GAAP basis, quarterly operating income was negative at -$12.4 million, but the company emphasized non-GAAP profitability momentum, driven by a subscription and support gross margin of 65% and improving cloud margins. Management also underscored the acceleration of cloud updates (three releases per year) and the ability to layer in analytics and data offerings atop Guidewire Cloud Platform, positioning the company for greater long-term margin expansion and higher ARR around $1 billion in the medium term. Key takeaways for investors include the durability of Guidewire’s P&C software platform, the strategic shift toward SI-led services, and the importance of monitoring cloud adoption, SI partner performance, DWP-based pricing tailwinds, and macro inflation dynamics as drivers of future ARR and margin trajectory.

Key Performance Indicators

Revenue
Increasing
240.90M
QoQ: 16.15% | YoY: 3.56%
Gross Profit
Increasing
142.41M
59.11% margin
QoQ: 26.82% | YoY: 15.34%
Operating Income
Increasing
-12.41M
QoQ: 63.26% | YoY: 46.55%
Net Income
Increasing
9.69M
QoQ: 135.78% | YoY: 205.42%
EPS
Increasing
0.12
QoQ: 136.36% | YoY: 209.09%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q2 2025 289.48 -0.45 +20.2% View
Q1 2025 262.90 0.11 +26.8% View
Q4 2024 291.52 0.20 +8.0% View
Q3 2024 240.68 -0.07 +16.0% View
Q2 2024 240.90 0.12 +3.6% View