Guidewire Software (GWRE) reported $262.9 million in revenue for the quarter ending October 2024, marking a year-over-year increase of 26.8%. Earnings per share of $0.43 for the same period, compared to $0.00 a year ago.
Reported revenue compares to the Zacks Consensus Estimate of $254.33 million, a surprise of +3.37%. The company delivered an EPS surprise of +43.33%, with the consensus EPS estimate coming in at $0.30.
While investors look closely at changes in sales and profits year after year and how they compare to Wall Street expectations to determine their next move, some key metrics always provide a more accurate picture of a company’s financial health.
Because these metrics play a crucial role in driving top- and bottom-line numbers, comparing them to a year ago’s numbers and what analysts estimate about them helps investors better predict a stock’s price movement.
Here’s how Guidewire Software performed in the just-reported quarter in terms of the metrics most frequently monitored and projected by Wall Street analysts:
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Annual recurring turnover: $874 million versus $872.67 million average estimate by three analysts.
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Revenue – Services: $55.79 million versus $50.03 million average estimate by five analysts. Compared to the previous year’s quarter, this number represents a change of +21.9%.
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Revenue – Subscription and support: $169.74 million versus the average five-analyst estimate of $167.24 million. The reported figure represents a year-on-year change of +33%.
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Revenue- License: $37.37 million versus the average five-analyst estimate of $37.41 million. The reported figure represents a year-on-year change of +9.8%.
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Term License Revenue: $37.37 million versus $36.59 million average estimate by three analysts. Compared to the previous year’s quarter, this number represents a change of +107.3%.
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Subscription revenue: $152.86 million versus $149.83 million average estimate by three analysts. Compared to the previous year’s quarter, this number represents a change of +39.5%.
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Support the income: $16.88 million versus the three analyst average estimate of $17.59 million. The reported figure represents a year-on-year change of -6.4%.
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Gross Profit – Subscription and Support: $115.72 million compared to the average estimate of $111.02 million from four analysts.
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Gross profit – Services: $6.19 million versus $2.96 million average estimate by four analysts.
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Gross Profit – License: $36.49 million versus the average four analyst estimate of $37 million.
View all key business metrics for Guidewire software here>>>
Shares of Guidewire Software have returned +5.9% over the past month, versus a +5.2% rise in the Zacks S&P 500 composite. The stock currently carries a Zacks Rank #3 (Hold), indicating it could perform in line with the broader market in the near term.
