Guidewire Software Inc. ( (GWRE) ) has released its Q2 earnings. Here is a breakdown of the information Guidewire Software Inc. presented to its investors.
Guidewire Software Inc. is a leading provider of software products for property and casualty (P&C) insurers, offering a platform that integrates data, analytics, and artificial intelligence to help insurers engage, innovate, and grow efficiently. With a strong presence in over 42 countries, Guidewire supports more than 570 insurers, ranging from startups to large-scale enterprises.
In its second quarter of fiscal year 2025, Guidewire reported robust financial results, surpassing its outlook ranges for annual recurring revenue (ARR), total revenue, and profitability. The company highlighted the successful closure of 12 cloud deals, primarily with larger insurers, which contributed significantly to its performance this quarter.
Key financial metrics for the quarter included a total revenue of $289.5 million, marking a 20% increase from the previous year. Subscription and support revenue saw a notable rise of 35%, while services revenue grew by 26%. Despite a 10% decline in license revenue, the company’s ARR increased to $918.1 million from $864.0 million in the previous quarter. Guidewire also reported a GAAP income from operations of $11.7 million, a significant improvement from a loss in the same quarter last year.
The company experienced a GAAP net loss of $37.3 million, contrasting with a net income in the previous year. However, on a non-GAAP basis, Guidewire achieved a net income of $43.9 million, reflecting a positive trajectory. The company also strengthened its liquidity position, with cash, cash equivalents, and investments totaling $1,412.4 million by the end of the quarter.
Looking ahead, Guidewire has raised its full-year 2025 outlook, anticipating continued growth in ARR and total revenue. The company remains optimistic about its strategic initiatives and market leadership, focusing on expanding its cloud-based services and maintaining a healthy pipeline of opportunities.