Guidewire(US:GWRE)2025-03-06 21:18Financial Performance - Total revenue for Q2 FY 2025 was $289.5 million, a 20% increase from Q2 FY 2024[6] - Subscription and support revenue reached $177.8 million, up 35% year-over-year[6] - Annual recurring revenue (ARR) as of January 31, 2025, was $918.1 million, compared to $864.0 million as of July 31, 2024[6] - GAAP income from operations was $11.7 million, a turnaround from a loss of $12.4 million in Q2 FY 2024[6] - Non-GAAP net income for Q2 FY 2025 was $43.9 million, compared to $39.1 million in Q2 FY 2024[6] - The company reported a GAAP net loss of $37.3 million for Q2 FY 2025, compared to a net income of $9.7 million in Q2 FY 2024[6] - Total revenue for the three months ended January 31, 2025, was $289,480,000, representing a 20.1% increase from $240,897,000 in the same period of 2024[22] - Subscription and support revenue increased to $177,838,000 for the three months ended January 31, 2025, up 35.1% from $131,642,000 year-over-year[22] - Net loss for the three months ended January 31, 2025, was $(37,277,000), compared to a net income of $9,687,000 in the same period of 2024[22] - Gross profit for the three months ended January 31, 2025, was $179,152,000, a 25.8% increase from $142,406,000 in the same period of 2024[22] - Non-GAAP net income for the three months ended January 31, 2025, was $43,929 thousand, compared to $39,127 thousand in the same period of 2024, reflecting a 7.1% increase[26] Cash and Assets - The company had $1,412.4 million in cash, cash equivalents, and investments as of January 31, 2025, up from $1,129.5 million at July 31, 2024[6] - Total current assets rose to $1,478,126,000 as of January 31, 2025, an increase of 14.1% from $1,295,534,000 as of July 31, 2024[20] - Total cash, cash equivalents, and restricted cash at the end of the period was $698,680 thousand, down from $351,181 thousand at the end of January 31, 2024[25] - Cash provided by operating activities for the three months ended January 31, 2025, was $85,991 thousand, compared to $69,251 thousand in 2024, indicating a 24.4% increase[25] - Net cash provided by operating activities for the six months ended January 31, 2025, was $23.7 million, compared to a cash outflow of $(2.8) million in the same period of 2024[27] Expenses and Liabilities - Research and development expenses for the three months ended January 31, 2025, were $70,268,000, up from $65,458,000 in the same period of 2024, indicating a focus on innovation[22] - Total liabilities increased to $1,274,053,000 as of January 31, 2025, compared to $883,562,000 as of July 31, 2024, reflecting a significant rise in convertible senior notes[20] - Stock-based compensation expense totaled $40,948,000 for the three months ended January 31, 2025, compared to $36,427,000 in the same period of 2024[23] - Stock-based compensation for the three months ended January 31, 2025, was $40,948 thousand, compared to $36,427 thousand in the same period of 2024, a 13.8% increase[26] Future Outlook - Guidewire raised its full-year 2025 outlook due to strong performance and a healthy pipeline[2] - Guidewire expects ending ARR for FY 2025 to be between $1,000 million and $1,010 million[9] - Total revenue guidance for FY 2025 is between $1,164 million and $1,174 million[9] - The company expects a GAAP income from operations outlook of $(4) million to $2 million for the third quarter of fiscal year 2025[29] - Non-GAAP income from operations is projected to be between $36 million and $42 million for the third quarter of fiscal year 2025[29] - Non-GAAP income from operations for fiscal year 2025 is expected to range from $175 million to $185 million[29] Losses and Cash Flow - The company recorded a $53.6 million loss on retirement of debt during the six months ended January 31, 2025, which included a $53.3 million loss on extinguishment[27] - Cash used in investing activities for the three months ended January 31, 2025, was $(52,920) thousand, compared to $(23,427) thousand in 2024[25] - The company experienced a net cash decrease of $(126,074) thousand for the three months ended January 31, 2025, compared to an increase of $48,570 thousand in the same period of 2024[25] - Free cash flow for the three months ended January 31, 2025, was $82.3 million, compared to $63.9 million in the same period of 2024[27]