Guidewire Software is an American technology company that offers key technology solutions to property and casualty insurers. The solutions include areas like analytics, business intelligence, digital engagement, artificial intelligence, and mission-critical core operations. Guidewire Software delivers a lot of its software through the cloud or in self-management mode. Therefore, rolling out product updates at scale and earnings recurring revenues are some of the benefits that Guidewire enjoys. The company is among the software application stocks to invest in 2021. The property and casualty insurance industry is large and fragmented. Competition is stiff and competitive advantages like high switching costs are important factors. At the same time, digital user experience is becoming increasingly important and decisions are also more data-driven in the current times than they were in the past.
Guidewire Software Announces Q32021 Earnings Results
Guidewire Software reported its third-quarter 2021 earnings numbers on 3rd June 2021. The total revenue reduced from $168 million in Q32020 to $163 million. While the gross profit was $71 million, Guidewire reported an operating loss of $46 million. In Q32020, Guidewire had reported an operating loss of slightly more than $25 million. Net loss per share on a diluted basis was $0.44 as compared to a net loss per diluted share of $0.37 in Q32020. However, company CEO Mike Rosenbaum sounded optimistic as he said that the annual recurring revenue numbers and subscription revenues for Q32021 were ahead of their respective guidance estimates. He also said that the demand for data analytics was strong and that the company’s cloud pipeline was in a good position. The longer-term prospects of the company appear to be intact and Guidewire could be among the best software application stock options to choose from.
Guidewire Software’s stock closed at $110.75 on 12th July 2021. The stock was down 2.2% over the preceding month. On a 1-year basis as well, the stock was down about 2% as there was a lot of sideways movement in the year 2021. Perhaps, this is the time to initiate a long position with the stock seemingly in consolidation mode.