Guidewire Earnings: What To Look For From GWRE

Kayode Omotosho /
2023/12/06 2:00 am EST

Insurance industry-focused software maker Guidewire (NYSE:GWRE) will be reporting results tomorrow after market close. Here's what to expect.

Last quarter Guidewire reported revenues of $270 million, up 10.4% year on year, beating analyst revenue expectations by 3.3%. It was a mixed quarter for the company, with revenue exceeding Wall Street's estimates. On the other hand, next quarter's revenue and non-GAAP operating loss guidance were both below expectations. Furthermore, full-year revenue guidance was below expectations, although non-GAAP operating profit guidance was above Wall Street analysts' estimates.

Is Guidewire buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Guidewire's revenue to grow 3.3% year on year to $201.8 million, slowing down from the 17.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.18 per share.

Guidewire Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.8%.

Looking at Guidewire's peers in the vertical software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Manhattan Associates delivered top-line growth of 20.4% year on year, beating analyst estimates by 5.4% and Alarm.com reported revenues up 2.6% year on year, missing analyst estimates by 0.7%. Manhattan Associates traded down 4.1% on the results, and Alarm.com was up 8.8%.

Read our full analysis of Manhattan Associates's results here and Alarm.com's results here.

There has been positive sentiment among investors in the vertical software segment, with the stocks up on average 10.1% over the last month. Guidewire is up 11.4% during the same time, and is heading into the earnings with analyst price target of $100.9, compared to share price of $102.9.

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The author has no position in any of the stocks mentioned.