Guidewire Software, Inc. Reports Q2 Fiscal Year 2024 Results

TL;DR

<b>Guidewire Software, Inc. filed its Q2 FY2024 10-Q report, detailing financial performance and operational status.</b>

AI Summary

Guidewire Software, Inc. (GWRE) filed a Quarterly Report (10-Q) with the SEC on March 8, 2024. Guidewire Software, Inc. filed its 10-Q for the period ending January 31, 2024. The filing covers the second quarter of fiscal year 2024. The company's fiscal year ends on July 31st. Guidewire Software, Inc. is incorporated in Delaware. The company's primary business is in prepackaged software services.

Why It Matters

For investors and stakeholders tracking Guidewire Software, Inc., this filing contains several important signals. This 10-Q filing provides investors with an updated view of Guidewire's financial health and operational performance for the second quarter of fiscal year 2024. Understanding the details within this report is crucial for assessing the company's progress, profitability, and future outlook in the competitive software market.

Risk Assessment

Risk Level: medium — Guidewire Software, Inc. shows moderate risk based on this filing. The company operates in the competitive software industry, which can lead to pricing pressures and market share challenges, as indicated by its SIC code for prepackaged software services.

Analyst Insight

Monitor Guidewire's revenue growth and profitability trends in upcoming filings to assess its competitive positioning and financial performance.

Key Numbers

• 2024-01-31 — Period End Date (Fiscal year 2024, second quarter)
• 2024-03-08 — Filing Date (Date the 10-Q was filed)
• 0731 — Fiscal Year End (Guidewire's fiscal year concludes on July 31st)
• 364468504 — IRS Number (Company's IRS identification number)

Key Players & Entities

• Guidewire Software, Inc. (company) — Filer name
• GWRE (company) — Ticker symbol
• 10-Q (regulator) — Filing type
• 2024-01-31 (date) — Period of report
• 2024-03-08 (date) — Filed as of date
• DE (jurisdiction) — State of incorporation
• 7372 (industry) — Standard Industrial Classification
• SAN MATEO, CA (location) — Business address city and state

FAQ

Risk Factors

• Competition [medium — market]: The company operates in a highly competitive market for software and services, facing potential impacts on pricing and market share.
• Reliance on Key Personnel [medium — operational]: The success of the company may depend on the continued service of its key employees, whose departure could adversely affect operations.
• Revenue Recognition [medium — financial]: Changes in accounting standards or the company's ability to accurately recognize revenue could impact financial reporting.

Key Dates

• 2024-01-31: Quarter End — End of the second fiscal quarter for 2024.
• 2024-03-08: Filing Date — Date the 10-Q report was officially filed with the SEC.
• 2024-07-31: Fiscal Year End — The conclusion of Guidewire's fiscal year.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides a comprehensive overview of a company's financial performance during a specific quarter.)

Fiscal Year

A 12-month period that a company uses for financial reporting and budgeting. (Helps in understanding the timing of financial results and comparisons across different reporting periods.)

Key Financial Figures

• $0.0001 — ange on which registered Common Stock, $0.0001 par value GWRE New York Stock Exchange

Filing Documents

• gwre-20240131.htm (10-Q) — 1922KB
• gwreex101guidewire_ar2020s.htm (EX-10.1) — 104KB
• gwreex3111312024-10q.htm (EX-31.1) — 12KB
• gwreex3121312024-10q.htm (EX-31.2) — 12KB
• gwreex3211312024-10q.htm (EX-32.1) — 11KB
• 0001528396-24-000017.txt (&nbsp;) — 7359KB
• gwre-20240131.xsd (EX-101.SCH) — 26KB
• gwre-20240131_cal.xml (EX-101.CAL) — 59KB
• gwre-20240131_def.xml (EX-101.DEF) — 178KB
• gwre-20240131_lab.xml (EX-101.LAB) — 516KB
• gwre-20240131_pre.xml (EX-101.PRE) — 344KB
• gwre-20240131_htm.xml (XML) — 1167KB

– Financial Information

Part I – Financial Information

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited): 1 Condensed Consolidated Balance Sheets as of January 31, 2024 and July 31, 2023 3 Condensed Consolidated Statements of Operations for the Three and Six Months Ended January 31, 2024 and 2023 4 Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended January 31, 2024 and 2023 5 Condensed Consolidated Statements of Changes in Stockholders' Equity for the Three and Six Months Ended January 31, 2024 and 2023 6 Condensed Consolidated Statements of Cash Flows for the Six Months Ended January 31, 2024 and 2023 7 Notes to Condensed Consolidated Financial Statements 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 20

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 41

Controls and Procedures

Item 4. Controls and Procedures 42

– Other Information

Part II – Other Information 43

Legal Proceedings

Item 1. Legal Proceedings 43

Risk Factors

Item 1A. Risk Factors 43 Item 5. Other Information 68

Exhibits

Item 6. Exhibits 69

Signatures

Signatures 70 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS The section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" as well as other parts of this Quarterly Report on Form 10-Q and certain information incorporated herein by reference contain forward-looking statements within the meaning of the Securities Act of 1933, as amended (the "Securities Act"), and the Securities Exchange Act of 1934, as amended (the "Exchange Act") which are subject to risks and uncertainties. The forward-looking statements may include statements concerning, among other things, our business strategy (including anticipated trends and developments in, and management plans for, our business, growth, and the markets in which we operate), financial results, results of operations, revenue, gross margins, operating expenses, services, products, projected costs and capital expenditures, research and development programs, sales and marketing initiatives, competition, and the impact of general economic, business, and market conditions. In some cases, you can identify these statements by forward-looking words, such as "will," "may," "might," "should," "could," "estimate," "expect," "suggest," "believe," "anticipate," "intend," "plan," and "continue," the negative or plural of these words and other comparable terminology. Actual events or results may differ materially from those expressed or implied by these statements due to various factors, including but not limited to the matters discussed below, in the section titled "Part II – Other Information – Item 1A. Risk Factors," and elsewhere in this Quarterly Report on Form 10-Q. Many of the forward-looking statements are located in "Management's Discussion and Analysis of Financial Condition and Results of Operations." Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. The forward-looking statements contained in this Quarterly Report on Form 10-Q are based on information available

– Financial Information

PART I – Financial Information

Financial Statements (unaudited)

ITEM 1. Financial Statements (unaudited) 1 Table of Contents GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in thousands) January 31, 2024 July 31, 2023 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 349,989 $ 401,813 Short-term investments 427,634 396,872 Accounts receivable, net of allowances of $ 24 and $ 218 , respectively 128,242 151,034 Unbilled accounts receivable, net 90,966 87,752 Prepaid expenses and other current assets 63,799 62,132 Total current assets 1,060,630 1,099,603 Long-term investments 155,061 128,782 Unbilled accounts receivable, net 6,796 11,112 Property and equipment, net 55,109 54,499 Operating lease assets 48,327 52,373 Intangible assets, net 11,739 14,473 Goodwill 372,214 372,214 Deferred tax assets, net 243,424 226,875 Other assets 60,220 67,957 TOTAL ASSETS $ 2,013,520 $ 2,027,888 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 21,999 $ 34,627 Accrued employee compensation 62,669 103,980 Deferred revenue, net 195,083 206,923 Other current liabilities 27,325 27,731 Total current liabilities 307,076 373,261 Lease liabilities 39,074 42,972 Convertible senior notes, net 398,033 397,171 Deferred revenue, net 4,072 5,988 Other liabilities 9,152 9,030 Total liabilities 757,407 828,422 STOCKHOLDERS' EQUITY: Common stock 8 8 Additional paid-in capital 1,903,873 1,831,267 Accumulated other comprehensive income (loss) ( 12,434 ) ( 13,859 ) Retained earnings (accumulated deficit) ( 635,334 ) ( 617,950 ) Total stockholders' equity 1,256,113 1,199,466 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,013,520 $ 2,027,888 See accompanying Notes to Condensed Consolidated Financial Statements. 3 Table of Contents GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands except shares and per share amounts) Three Months Ended Six Months Ended January 31, January 31, 2

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View this 10-Q filing on SEC EDGAR