Guidewire Software recently released its outlooks for the first quarter and fiscal year 2024, causing a 4.5% retreat in the company’s shares, which now stand at $81. Despite this decline, the stock is still up by an impressive 36% for the year.
As a leading provider of software solutions for the insurance industry, Guidewire Software expects its revenue for the first quarter of fiscal 2024 to be between $197 million and $202 million. This falls below analysts’ estimates of $212.5 million. Additionally, annual recurring revenue for the quarter is projected to range from $766 million to $769 million.
For the entire fiscal year, Guidewire Software anticipates revenue between $976 million and $986 million, which also falls below analysts’ estimates of $989.2 million. The company’s annual recurring revenue for fiscal 2024 is expected to be in the range of $846 million to $858 million.
Despite these figures, Guidewire Software’s Chief Executive Mike Rosenbaum remains confident in the company’s ability to meet its mid-term and long-term financial targets. He stated, “Sales activity in the quarter exceeded our expectations, adding to our confidence in achieving our mid-term and long-term financial targets.”
Guidewire Software is poised to face new challenges in the coming months, but with strong sales activity and a solid outlook, the company remains determined to deliver outstanding results.
