By Kelly Cloonan

Guidewire Software raised its outlook for the year after posting improved results in its latest quarter as subscription and support sales rose.

The insurance-software provider on Tuesday guided for full-year sales of about $1.18 billion to $1.19 billion, up from its previous outlook of about $1.16 billion and $1.17 billion. Analysts polled by FactSet expect $1.17 billion.

The company now expects annual recurring revenue of about $1.01 billion to $1.02 billion for the year, up from $1 billion to $1.01 billion previously.

Chief Financial Officer Jeff Cooper said the raised targets are a result of strong execution in the company's latest quarter and a robust pipeline.

For its fiscal third quarter, the company posted a profit of $46 million, or 54 cents a share, compared with a loss of $5.5 million, or 7 cents a share, a year earlier.

Adjusted earnings per share were 88 cents, ahead of estimates of 46 cents a share according to analysts polled by FactSet.

Revenue rose 22% to $293.5 million, above the $286.3 million expected by analysts.

Annual recurring revenue was $960 million, up from $864 million as of July 31, 2024. Analysts had expected $945.1 million.

Higher subscription and support sales led the revenue increase, up 32% to $181.8 million. Sales in the company's services and license segments also rose, up 17% and 2%, respectively.

The company notched 17 cloud deals in the quarter, Chief Executive Mike Rosenbaum said.

For the current fiscal quarter, Guidewire guided for sales in a range of $332 million to $340 million, with the low end coming in line with analyst estimates.

Shares rise 8.6% to $237 in after-hours trading on Tuesday.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

June 03, 2025 16:49 ET (20:49 GMT)

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