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Compared to Estimates, Guidewire Software (GWRE) Q1 Earnings: A Look at Key Metrics

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Guidewire Software (GWRE - Free Report) reported $207.41 million in revenue for the quarter ended October 2023, representing a year-over-year increase of 6.2%. EPS of $0.00 for the same period compares to -$0.12 a year ago.

The reported revenue represents a surprise of +3.19% over the Zacks Consensus Estimate of $201 million. With the consensus EPS estimate being -$0.17, the EPS surprise was +100.00%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Guidewire Software performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Annual recurring revenue: $770 million versus $767.19 million estimated by three analysts on average.
  • Revenue- Subscription and support: $127.63 million versus $119.63 million estimated by five analysts on average.
  • Revenues- License: $34.03 million versus $35.16 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -16.9% change.
  • Revenues- Services: $45.76 million compared to the $43.02 million average estimate based on four analysts. The reported number represents a change of -17.2% year over year.
  • Gross profit- Subscription and support: $79.57 million versus $68.03 million estimated by three analysts on average.
  • Gross profit- Services: -$0.09 million versus $2.62 million estimated by three analysts on average.
  • Gross profit- License: $32.81 million versus $33.54 million estimated by three analysts on average.
View all Key Company Metrics for Guidewire Software here>>>

Shares of Guidewire Software have returned +6.3% over the past month versus the Zacks S&P 500 composite's +4.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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