Guidewire Software, a platform provider for property and casualty re/insurers, has reported a net loss of $9.2 million for the second quarter of fiscal year 2023, compared with $40.7 million for the same period in the previous fiscal year.
Similarly, the company’s loss from operations shrank from $39.5 million previously to $23.2 million for the latest quarterly period.
At the same time, Guidewire’s total revenues for Q2 increased by 14% to $232.6 million.
Subscription and support revenue was $105.8 million, an increase of 25%, while services revenue grew 6% to $53.7 million, and license revenue was up 5% to $73.1 million.
As of January 31, 2023, annual recurring revenue, or ARR, was $707 million, compared to $664 million as of July 31, 2022.
Guidewire notes that ARR results for interim quarterly periods in fiscal year 2023 are based on actual currency rates at the end of fiscal year 2022, held constant throughout the year.
The company also reports that it had $870.0 million in cash, cash equivalents, and investments at the end of January, compared to $1.2 billion at the end of July last year, and used $86.2 million in cash from operations during these six months.
“We are thrilled with our second quarter results. We closed eight cloud transactions and improved operating efficiency, resulting in strong top-line growth and improved subscription and support gross margins,” said Mike Rosenbaum, Chief Executive Officer, Guidewire.
“Continued progress on our cloud platform enabled us to exceed the top end of our guidance range for revenue, ARR, and profitability.”
Looking ahead, Guidewire expects to report total revenue of between $211 million and $216 million for Q3 of fiscal year 2023, along with ARR of up to $720, and an operating loss of between $64 million and $59 million.
For the full fiscal year, it projects revenues of $894 million to $904 million, ARR of up to $760 million and an operating loss of between $175 million and $164 million.
