Guidewire Software, INC. 10-Q Filing

Ticker: GWRE · Form: 10-Q · Filed: Dec 6, 2024 · CIK: 1528396

Sentiment: neutral

Filing Stats: 4,475 words · 18 min read · ~15 pages · Grade level 17.2 · Accepted 2024-12-05 18:13:56

Key Financial Figures

Filing Documents

– Financial Information

Part I – Financial Information

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited): 1 Condensed Consolidated Balance Sheets as of October 31, 2024 and July 31, 2024 3 Condensed Consolidated Statements of Operations for the Three Months Ended October 31, 2024 and 2023 4 Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended October 31, 2024 and 2023 5 Condensed Consolidated Statements of Changes in Stockholders' Equity for the Three Months Ended October 31, 2024 and 2023 6 Condensed Consolidated Statements of Cash Flows for the Three Months Ended October 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 23

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 39

Controls and Procedures

Item 4. Controls and Procedures 40

– Other Information

Part II – Other Information 41

Legal Proceedings

Item 1. Legal Proceedings 41

Risk Factors

Item 1A. Risk Factors 41 Item 5. Other Information 67

Exhibits

Item 6. Exhibits 68

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"), that 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 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 to us

– 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) October 31, 2024 July 31, 2024 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 823,562 $ 547,992 Short-term investments 514,767 455,576 Accounts receivable, net of allowances of $ 1,904 and $ 646 , respectively 97,475 137,339 Unbilled accounts receivable, net 129,429 87,031 Prepaid expenses and other current assets 72,059 67,596 Total current assets 1,637,292 1,295,534 Long-term investments 142,119 125,885 Unbilled accounts receivable, net 648 4,157 Property and equipment, net 55,215 55,409 Operating lease assets 41,993 43,750 Intangible assets, net 7,638 9,005 Goodwill 372,214 372,214 Deferred tax assets, net 274,875 253,085 Other assets 64,703 67,255 TOTAL ASSETS $ 2,596,697 $ 2,226,294 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 31,394 $ 15,209 Accrued employee compensation 51,860 109,084 Deferred revenue, net 224,189 281,855 Convertible senior notes, net 278,595 398,903 Other current liabilities 29,199 32,584 Total current liabilities 615,237 837,635 Lease liabilities 32,934 34,721 Convertible senior notes, net 671,820 — Deferred revenue, net 3,187 3,628 Other liabilities 5,490 7,578 Total liabilities 1,328,668 883,562 STOCKHOLDERS' EQUITY: Common stock 8 8 Additional paid-in capital 1,894,904 1,979,021 Accumulated other comprehensive income (loss) ( 11,969 ) ( 12,244 ) Retained earnings (accumulated deficit) ( 614,914 ) ( 624,053 ) Total stockholders' equity 1,268,029 1,342,732 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,596,697 $ 2,226,294 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 Oc

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