Guidewire Announces Third Quarter Fiscal Year 2025 Financial Results

Guidewire, a leading provider of software products for property and casualty (P&C) insurers, has released its financial results for the third quarter of fiscal year 2025, ending April 30, 2025. The company reported significant growth in revenue and profitability, driven by strong sales activity and an increase in cloud deals.

Financial Highlights

Guidewire's total revenue for the third quarter of fiscal year 2025 was $293.5 million, marking a 22% increase from the same quarter in fiscal year 2024. Subscription and support revenue saw a substantial rise of 32% to $181.8 million, while license revenue grew by 2% to $57.2 million, and services revenue increased by 17% to $54.5 million. The company's annual recurring revenue (ARR) reached $960 million as of April 30, 2025, up from $864 million as of July 31, 2024.

On the profitability front, Guidewire reported a GAAP income from operations of $4.5 million, a significant improvement from a GAAP loss of $16.7 million in the same quarter of the previous year. Non-GAAP income from operations was $46.1 million, compared to $20.8 million in the third quarter of fiscal year 2024. GAAP net income was $46.0 million, translating to $0.54 per share, compared to a GAAP net loss of $5.5 million or $0.07 per share in the same period last year. Non-GAAP net income was $75.2 million, or $0.88 per share, up from $21.7 million, or $0.26 per share, in the third quarter of fiscal year 2024.

Business and Operational Highlights

Guidewire's CEO, Mike Rosenbaum, highlighted the company's record Q3 sales activity and the successful closing of 17 cloud deals. The company has been actively increasing its market engagement, hosting major industry events in Paris, Tokyo, and Sydney, as well as its second annual Developer Summit in Bangalore. These efforts have helped establish Guidewire as a leader in P&C core systems.

Strategic Initiatives and Corporate Developments

Guidewire's CFO, Jeff Cooper, noted that the company's strong execution and robust pipeline have led to an upward revision of its full-year fiscal 2025 targets. The company has also been active in managing its capital resources, with $1,243.7 million in cash, cash equivalents, and investments as of April 30, 2025. This increase is attributed to proceeds from the issuance of convertible senior notes due 2029 and operating cash flow, partially offset by the settlement of convertible senior notes due 2025.

Management's Perspective

CEO Mike Rosenbaum expressed confidence in Guidewire's market position and growth trajectory, emphasizing the company's leadership in P&C core systems and its expanding developer ecosystem. CFO Jeff Cooper reinforced this sentiment by highlighting the company's strong financial performance and the decision to raise full-year fiscal 2025 targets.

Future Outlook

Guidewire has issued an optimistic outlook for the fourth quarter of fiscal year 2025, with expected ARR between $1,012 million and $1,022 million, total revenue between $332 million and $340 million, and non-GAAP operating income between $52 million and $60 million. For the full fiscal year 2025, the company projects ARR between $1,012 million and $1,022 million, total revenue between $1,178 million and $1,186 million, and non-GAAP operating income between $187 million and $195 million.

SEC Filing: Guidewire Software, Inc. [ GWRE ] - 8-K - Jun. 03, 2025