Guidewire Software delivered a solid QQ4 2024 performance, highlighted by a revenue beat and meaningful cash generation, reflecting ongoing execution in a cloud-enabled software model for the property and casualty (P&C) insurance market. Revenue of $291.5 million posted a 7.99% year-over-year increase and a strong sequential uptick of 21.12% quarter-over-quarter, underscoring improving demand and seasonal alignment into the year-end release period. The company reported a gross margin of approximately 63.95% and an EBIT margin of about 3.54%, yielding net income of $16.76 million and earnings per share of $0.20 for the quarter. Operational efficiency combined with a robust cash flow framework produced free cash flow of $189.3 million and operating cash flow of $193.8 million, supporting a net cash position (net debt of roughly $105 million in cash terms) and a substantial liquidity runway.
Balance sheet strength is evident: total assets of $2.23 billion, a sizable cash and short-term investment buffer (~$1.00 billion combined), and a low long-term leverage profile (debt-to-capitalization around 24.8%). Deferred revenue remains a meaningful source of future revenue recognition, reflecting the subscription and cloud-based nature of the Guidewire portfolio. The quarterly performance reflects ongoing benefits from Guidewire’s Cloud and InsuranceNow strategies, and operating expenses remained elevated due to R&D and go-to-market investments that support platform growth. While the market for insurtech software remains competitive and sensitive to IT budget cycles, Guidewire’s cash generation, margin discipline, and product breadth position it to capitalize on ongoing migration to cloud-based solutions in a multi-year cycle.