10-Q 1 gwre-20240430.htm 10-Q gwre-20240430
false2024Q30001528396--07-31http://fasb.org/us-gaap/2023#AccountingStandardsUpdate202006Memberhttp://fasb.org/us-gaap/2023#OtherLiabilitiesCurrentxbrli:sharesiso4217:USDiso4217:USDxbrli:sharesxbrli:puregwre:customer00015283962023-08-012024-04-3000015283962024-05-3100015283962024-04-3000015283962023-07-310001528396gwre:SubscriptionAndSupportMember2024-02-012024-04-300001528396gwre:SubscriptionAndSupportMember2023-02-012023-04-300001528396gwre:SubscriptionAndSupportMember2023-08-012024-04-300001528396gwre:SubscriptionAndSupportMember2022-08-012023-04-300001528396us-gaap:LicenseMember2024-02-012024-04-300001528396us-gaap:LicenseMember2023-02-012023-04-300001528396us-gaap:LicenseMember2023-08-012024-04-300001528396us-gaap:LicenseMember2022-08-012023-04-300001528396us-gaap:ServiceMember2024-02-012024-04-300001528396us-gaap:ServiceMember2023-02-012023-04-300001528396us-gaap:ServiceMember2023-08-012024-04-300001528396us-gaap:ServiceMember2022-08-012023-04-3000015283962024-02-012024-04-3000015283962023-02-012023-04-3000015283962022-08-012023-04-300001528396us-gaap:CommonStockMember2023-07-310001528396us-gaap:AdditionalPaidInCapitalMember2023-07-310001528396us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-310001528396us-gaap:RetainedEarningsMember2023-07-310001528396us-gaap:RetainedEarningsMember2023-08-012023-10-3100015283962023-08-012023-10-310001528396us-gaap:CommonStockMember2023-08-012023-10-310001528396us-gaap:AdditionalPaidInCapitalMember2023-08-012023-10-310001528396us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-08-012023-10-310001528396us-gaap:CommonStockMember2023-10-310001528396us-gaap:AdditionalPaidInCapitalMember2023-10-310001528396us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-10-310001528396us-gaap:RetainedEarningsMember2023-10-3100015283962023-10-310001528396us-gaap:RetainedEarningsMember2023-11-012024-01-3100015283962023-11-012024-01-310001528396us-gaap:CommonStockMember2023-11-012024-01-310001528396us-gaap:AdditionalPaidInCapitalMember2023-11-012024-01-310001528396us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-11-012024-01-310001528396us-gaap:CommonStockMember2024-01-310001528396us-gaap:AdditionalPaidInCapitalMember2024-01-310001528396us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-310001528396us-gaap:RetainedEarningsMember2024-01-3100015283962024-01-310001528396us-gaap:RetainedEarningsMember2024-02-012024-04-300001528396us-gaap:CommonStockMember2024-02-012024-04-300001528396us-gaap:AdditionalPaidInCapitalMember2024-02-012024-04-300001528396us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-02-012024-04-300001528396us-gaap:CommonStockMember2024-04-300001528396us-gaap:AdditionalPaidInCapitalMember2024-04-300001528396us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-04-300001528396us-gaap:RetainedEarningsMember2024-04-300001528396us-gaap:CommonStockMember2022-07-310001528396us-gaap:AdditionalPaidInCapitalMember2022-07-310001528396us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-310001528396us-gaap:RetainedEarningsMember2022-07-3100015283962022-07-310001528396us-gaap:RetainedEarningsMember2022-08-012022-10-3100015283962022-08-012022-10-310001528396us-gaap:CommonStockMember2022-08-012022-10-310001528396us-gaap:AdditionalPaidInCapitalMember2022-08-012022-10-310001528396us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-08-012022-10-310001528396srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AdditionalPaidInCapitalMember2022-10-310001528396srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:RetainedEarningsMember2022-10-310001528396srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-10-310001528396us-gaap:CommonStockMember2022-10-310001528396us-gaap:AdditionalPaidInCapitalMember2022-10-310001528396us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-10-310001528396us-gaap:RetainedEarningsMember2022-10-3100015283962022-10-310001528396us-gaap:RetainedEarningsMember2022-11-012023-01-3100015283962022-11-012023-01-310001528396us-gaap:CommonStockMember2022-11-012023-01-310001528396us-gaap:AdditionalPaidInCapitalMember2022-11-012023-01-310001528396us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-11-012023-01-310001528396us-gaap:CommonStockMember2023-01-310001528396us-gaap:AdditionalPaidInCapitalMember2023-01-310001528396us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-310001528396us-gaap:RetainedEarningsMember2023-01-3100015283962023-01-310001528396us-gaap:RetainedEarningsMember2023-02-012023-04-300001528396us-gaap:CommonStockMember2023-02-012023-04-300001528396us-gaap:AdditionalPaidInCapitalMember2023-02-012023-04-300001528396us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-02-012023-04-300001528396us-gaap:CommonStockMember2023-04-300001528396us-gaap:AdditionalPaidInCapitalMember2023-04-300001528396us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-300001528396us-gaap:RetainedEarningsMember2023-04-3000015283962023-04-300001528396us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2024-04-300001528396us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2023-07-310001528396us-gaap:OtherAssetsMember2023-07-310001528396us-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMembergwre:CustomerOneMember2024-02-012024-04-300001528396gwre:SubscriptionMember2024-02-012024-04-300001528396gwre:SubscriptionMember2023-02-012023-04-300001528396gwre:SubscriptionMember2023-08-012024-04-300001528396gwre:SubscriptionMember2022-08-012023-04-300001528396gwre:SupportMember2024-02-012024-04-300001528396gwre:SupportMember2023-02-012023-04-300001528396gwre:SupportMember2023-08-012024-04-300001528396gwre:SupportMember2022-08-012023-04-300001528396gwre:TermLicenseMember2024-02-012024-04-300001528396gwre:TermLicenseMember2023-02-012023-04-300001528396gwre:TermLicenseMember2023-08-012024-04-300001528396gwre:TermLicenseMember2022-08-012023-04-300001528396gwre:PerpetualLicenseMember2024-02-012024-04-300001528396gwre:PerpetualLicenseMember2023-02-012023-04-300001528396gwre:PerpetualLicenseMember2023-08-012024-04-300001528396gwre:PerpetualLicenseMember2022-08-012023-04-300001528396country:USgwre:SubscriptionAndSupportMember2024-02-012024-04-300001528396country:USus-gaap:LicenseMember2024-02-012024-04-300001528396country:USus-gaap:ServiceMember2024-02-012024-04-300001528396country:US2024-02-012024-04-300001528396country:CAgwre:SubscriptionAndSupportMember2024-02-012024-04-300001528396us-gaap:LicenseMembercountry:CA2024-02-012024-04-300001528396us-gaap:ServiceMembercountry:CA2024-02-012024-04-300001528396country:CA2024-02-012024-04-300001528396gwre:OtherAmericasMembergwre:SubscriptionAndSupportMember2024-02-012024-04-300001528396gwre:OtherAmericasMemberus-gaap:LicenseMember2024-02-012024-04-300001528396gwre:OtherAmericasMemberus-gaap:ServiceMember2024-02-012024-04-300001528396gwre:OtherAmericasMember2024-02-012024-04-300001528396srt:AmericasMembergwre:SubscriptionAndSupportMember2024-02-012024-04-300001528396us-gaap:LicenseMembersrt:AmericasMember2024-02-012024-04-300001528396us-gaap:ServiceMembersrt:AmericasMember2024-02-012024-04-300001528396srt:AmericasMember2024-02-012024-04-300001528396gwre:SubscriptionAndSupportMemberus-gaap:EMEAMember2024-02-012024-04-300001528396us-gaap:LicenseMemberus-gaap:EMEAMember2024-02-012024-04-300001528396us-gaap:ServiceMemberus-gaap:EMEAMember2024-02-012024-04-300001528396us-gaap:EMEAMember2024-02-012024-04-300001528396gwre:APACMembergwre:SubscriptionAndSupportMember2024-02-012024-04-300001528396us-gaap:LicenseMembergwre:APACMember2024-02-012024-04-300001528396us-gaap:ServiceMembergwre:APACMember2024-02-012024-04-300001528396gwre:APACMember2024-02-012024-04-300001528396country:USgwre:SubscriptionAndSupportMember2023-02-012023-04-300001528396country:USus-gaap:LicenseMember2023-02-012023-04-300001528396country:USus-gaap:ServiceMember2023-02-012023-04-300001528396country:US2023-02-012023-04-300001528396country:CAgwre:SubscriptionAndSupportMember2023-02-012023-04-300001528396us-gaap:LicenseMembercountry:CA2023-02-012023-04-300001528396us-gaap:ServiceMembercountry:CA2023-02-012023-04-300001528396country:CA2023-02-012023-04-300001528396gwre:OtherAmericasMembergwre:SubscriptionAndSupportMember2023-02-012023-04-300001528396gwre:OtherAmericasMemberus-gaap:LicenseMember2023-02-012023-04-300001528396gwre:OtherAmericasMemberus-gaap:ServiceMember2023-02-012023-04-300001528396gwre:OtherAmericasMember2023-02-012023-04-300001528396srt:AmericasMembergwre:SubscriptionAndSupportMember2023-02-012023-04-300001528396us-gaap:LicenseMembersrt:AmericasMember2023-02-012023-04-300001528396us-gaap:ServiceMembersrt:AmericasMember2023-02-012023-04-300001528396srt:AmericasMember2023-02-012023-04-300001528396gwre:SubscriptionAndSupportMemberus-gaap:EMEAMember2023-02-012023-04-300001528396us-gaap:LicenseMemberus-gaap:EMEAMember2023-02-012023-04-300001528396us-gaap:ServiceMemberus-gaap:EMEAMember2023-02-012023-04-300001528396us-gaap:EMEAMember2023-02-012023-04-300001528396gwre:APACMembergwre:SubscriptionAndSupportMember2023-02-012023-04-300001528396us-gaap:LicenseMembergwre:APACMember2023-02-012023-04-300001528396us-gaap:ServiceMembergwre:APACMember2023-02-012023-04-300001528396gwre:APACMember2023-02-012023-04-300001528396country:USgwre:SubscriptionAndSupportMember2023-08-012024-04-300001528396country:USus-gaap:LicenseMember2023-08-012024-04-300001528396country:USus-gaap:ServiceMember2023-08-012024-04-300001528396country:US2023-08-012024-04-300001528396country:CAgwre:SubscriptionAndSupportMember2023-08-012024-04-300001528396us-gaap:LicenseMembercountry:CA2023-08-012024-04-300001528396us-gaap:ServiceMembercountry:CA2023-08-012024-04-300001528396country:CA2023-08-012024-04-300001528396gwre:OtherAmericasMembergwre:SubscriptionAndSupportMember2023-08-012024-04-300001528396gwre:OtherAmericasMemberus-gaap:LicenseMember2023-08-012024-04-300001528396gwre:OtherAmericasMemberus-gaap:ServiceMember2023-08-012024-04-300001528396gwre:OtherAmericasMember2023-08-012024-04-300001528396srt:AmericasMembergwre:SubscriptionAndSupportMember2023-08-012024-04-300001528396us-gaap:LicenseMembersrt:AmericasMember2023-08-012024-04-300001528396us-gaap:ServiceMembersrt:AmericasMember2023-08-012024-04-300001528396srt:AmericasMember2023-08-012024-04-300001528396gwre:SubscriptionAndSupportMemberus-gaap:EMEAMember2023-08-012024-04-300001528396us-gaap:LicenseMemberus-gaap:EMEAMember2023-08-012024-04-300001528396us-gaap:ServiceMemberus-gaap:EMEAMember2023-08-012024-04-300001528396us-gaap:EMEAMember2023-08-012024-04-300001528396gwre:APACMembergwre:SubscriptionAndSupportMember2023-08-012024-04-300001528396us-gaap:LicenseMembergwre:APACMember2023-08-012024-04-300001528396us-gaap:ServiceMembergwre:APACMember2023-08-012024-04-300001528396gwre:APACMember2023-08-012024-04-300001528396country:USgwre:SubscriptionAndSupportMember2022-08-012023-04-300001528396country:USus-gaap:LicenseMember2022-08-012023-04-300001528396country:USus-gaap:ServiceMember2022-08-012023-04-300001528396country:US2022-08-012023-04-300001528396country:CAgwre:SubscriptionAndSupportMember2022-08-012023-04-300001528396us-gaap:LicenseMembercountry:CA2022-08-012023-04-300001528396us-gaap:ServiceMembercountry:CA2022-08-012023-04-300001528396country:CA2022-08-012023-04-300001528396gwre:OtherAmericasMembergwre:SubscriptionAndSupportMember2022-08-012023-04-300001528396gwre:OtherAmericasMemberus-gaap:LicenseMember2022-08-012023-04-300001528396gwre:OtherAmericasMemberus-gaap:ServiceMember2022-08-012023-04-300001528396gwre:OtherAmericasMember2022-08-012023-04-300001528396srt:AmericasMembergwre:SubscriptionAndSupportMember2022-08-012023-04-300001528396us-gaap:LicenseMembersrt:AmericasMember2022-08-012023-04-300001528396us-gaap:ServiceMembersrt:AmericasMember2022-08-012023-04-300001528396srt:AmericasMember2022-08-012023-04-300001528396gwre:SubscriptionAndSupportMemberus-gaap:EMEAMember2022-08-012023-04-300001528396us-gaap:LicenseMemberus-gaap:EMEAMember2022-08-012023-04-300001528396us-gaap:ServiceMemberus-gaap:EMEAMember2022-08-012023-04-300001528396us-gaap:EMEAMember2022-08-012023-04-300001528396gwre:APACMembergwre:SubscriptionAndSupportMember2022-08-012023-04-300001528396us-gaap:LicenseMembergwre:APACMember2022-08-012023-04-300001528396us-gaap:ServiceMembergwre:APACMember2022-08-012023-04-300001528396gwre:APACMember2022-08-012023-04-300001528396us-gaap:AssetBackedSecuritiesMember2024-04-300001528396us-gaap:CertificatesOfDepositMember2024-04-300001528396us-gaap:CommercialPaperMember2024-04-300001528396us-gaap:CorporateBondSecuritiesMember2024-04-300001528396us-gaap:ForeignGovernmentDebtSecuritiesMember2024-04-300001528396us-gaap:MoneyMarketFundsMember2024-04-300001528396us-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-04-300001528396us-gaap:USTreasurySecuritiesMember2024-04-300001528396us-gaap:AssetBackedSecuritiesMember2023-07-310001528396us-gaap:CertificatesOfDepositMember2023-07-310001528396us-gaap:CommercialPaperMember2023-07-310001528396us-gaap:CorporateBondSecuritiesMember2023-07-310001528396us-gaap:ForeignGovernmentDebtSecuritiesMember2023-07-310001528396us-gaap:MoneyMarketFundsMember2023-07-310001528396us-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-07-310001528396us-gaap:USTreasurySecuritiesMember2023-07-310001528396us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel1Member2024-04-300001528396us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMember2024-04-300001528396us-gaap:FairValueInputsLevel3Memberus-gaap:CommercialPaperMember2024-04-300001528396us-gaap:CommercialPaperMember2024-04-300001528396us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueInputsLevel1Member2024-04-300001528396us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateBondSecuritiesMember2024-04-300001528396us-gaap:FairValueInputsLevel3Memberus-gaap:CorporateBondSecuritiesMember2024-04-300001528396us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2024-04-300001528396us-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2024-04-300001528396us-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMember2024-04-300001528396us-gaap:MoneyMarketFundsMember2024-04-300001528396us-gaap:FairValueInputsLevel1Member2024-04-300001528396us-gaap:FairValueInputsLevel2Member2024-04-300001528396us-gaap:FairValueInputsLevel3Member2024-04-300001528396us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Member2024-04-300001528396us-gaap:FairValueInputsLevel2Memberus-gaap:AssetBackedSecuritiesMember2024-04-300001528396us-gaap:FairValueInputsLevel3Memberus-gaap:AssetBackedSecuritiesMember2024-04-300001528396us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel1Member2024-04-300001528396us-gaap:FairValueInputsLevel2Memberus-gaap:CertificatesOfDepositMember2024-04-300001528396us-gaap:FairValueInputsLevel3Memberus-gaap:CertificatesOfDepositMember2024-04-300001528396us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel1Member2024-04-300001528396us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMember2024-04-300001528396us-gaap:FairValueInputsLevel3Memberus-gaap:CommercialPaperMember2024-04-300001528396us-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2024-04-300001528396us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2024-04-300001528396us-gaap:FairValueInputsLevel3Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2024-04-300001528396us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2024-04-300001528396us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-04-300001528396us-gaap:FairValueInputsLevel3Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-04-300001528396us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2024-04-300001528396us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMember2024-04-300001528396us-gaap:FairValueInputsLevel3Memberus-gaap:USTreasurySecuritiesMember2024-04-300001528396us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel1Member2023-07-310001528396us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMember2023-07-310001528396us-gaap:FairValueInputsLevel3Memberus-gaap:CommercialPaperMember2023-07-310001528396us-gaap:CommercialPaperMember2023-07-310001528396us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2023-07-310001528396us-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2023-07-310001528396us-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMember2023-07-310001528396us-gaap:MoneyMarketFundsMember2023-07-310001528396us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-07-310001528396us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-07-310001528396us-gaap:FairValueInputsLevel3Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-07-310001528396us-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-07-310001528396us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel1Member2023-07-310001528396us-gaap:FairValueInputsLevel2Memberus-gaap:CertificatesOfDepositMember2023-07-310001528396us-gaap:FairValueInputsLevel3Memberus-gaap:CertificatesOfDepositMember2023-07-310001528396us-gaap:CertificatesOfDepositMember2023-07-310001528396us-gaap:FairValueInputsLevel1Member2023-07-310001528396us-gaap:FairValueInputsLevel2Member2023-07-310001528396us-gaap:FairValueInputsLevel3Member2023-07-310001528396us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-07-310001528396us-gaap:FairValueInputsLevel2Memberus-gaap:AssetBackedSecuritiesMember2023-07-310001528396us-gaap:FairValueInputsLevel3Memberus-gaap:AssetBackedSecuritiesMember2023-07-310001528396us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel1Member2023-07-310001528396us-gaap:FairValueInputsLevel2Memberus-gaap:CertificatesOfDepositMember2023-07-310001528396us-gaap:FairValueInputsLevel3Memberus-gaap:CertificatesOfDepositMember2023-07-310001528396us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel1Member2023-07-310001528396us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMember2023-07-310001528396us-gaap:FairValueInputsLevel3Memberus-gaap:CommercialPaperMember2023-07-310001528396us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-07-310001528396us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateBondSecuritiesMember2023-07-310001528396us-gaap:FairValueInputsLevel3Memberus-gaap:CorporateBondSecuritiesMember2023-07-310001528396us-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-07-310001528396us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2023-07-310001528396us-gaap:FairValueInputsLevel3Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2023-07-310001528396us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-07-310001528396us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-07-310001528396us-gaap:FairValueInputsLevel3Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-07-310001528396us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-07-310001528396us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMember2023-07-310001528396us-gaap:FairValueInputsLevel3Memberus-gaap:USTreasurySecuritiesMember2023-07-310001528396us-gaap:SeniorNotesMembergwre:ConvertibleSeniorNotes1.250Member2018-03-310001528396us-gaap:SeniorNotesMembergwre:ConvertibleSeniorNotes1.250Member2024-04-300001528396us-gaap:SeniorNotesMembergwre:ConvertibleSeniorNotes1.250Member2023-07-310001528396us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember2024-04-300001528396us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember2023-07-310001528396us-gaap:EmployeeStockOptionMember2024-02-012024-04-300001528396us-gaap:EmployeeStockOptionMember2022-08-012023-04-300001528396us-gaap:EmployeeStockOptionMember2023-08-012024-04-300001528396us-gaap:EmployeeStockOptionMember2021-08-012022-04-300001528396us-gaap:RestrictedStockMember2024-02-012024-04-300001528396us-gaap:RestrictedStockMember2022-08-012023-04-300001528396us-gaap:RestrictedStockMember2023-08-012024-04-300001528396us-gaap:RestrictedStockMember2021-08-012022-04-300001528396us-gaap:ConvertibleDebtSecuritiesMember2024-02-012024-04-300001528396us-gaap:ConvertibleDebtSecuritiesMember2022-08-012023-04-300001528396us-gaap:ConvertibleDebtSecuritiesMember2023-08-012024-04-300001528396us-gaap:ConvertibleDebtSecuritiesMember2021-08-012022-04-300001528396us-gaap:GeneralAndAdministrativeExpenseMember2023-08-012024-04-300001528396us-gaap:GeneralAndAdministrativeExpenseMember2024-02-012024-04-300001528396srt:OfficeBuildingMember2024-02-012024-04-300001528396srt:OfficeBuildingMember2023-08-012024-04-300001528396gwre:CostOfSubscriptionAndSupportRevenueMember2024-02-012024-04-300001528396gwre:CostOfSubscriptionAndSupportRevenueMember2023-02-012023-04-300001528396gwre:CostOfSubscriptionAndSupportRevenueMember2023-08-012024-04-300001528396gwre:CostOfSubscriptionAndSupportRevenueMember2022-08-012023-04-300001528396gwre:CosOfLicenseRevenuesMember2024-02-012024-04-300001528396gwre:CosOfLicenseRevenuesMember2023-02-012023-04-300001528396gwre:CosOfLicenseRevenuesMember2023-08-012024-04-300001528396gwre:CosOfLicenseRevenuesMember2022-08-012023-04-300001528396gwre:CostOfServicesRevenuesMember2024-02-012024-04-300001528396gwre:CostOfServicesRevenuesMember2023-02-012023-04-300001528396gwre:CostOfServicesRevenuesMember2023-08-012024-04-300001528396gwre:CostOfServicesRevenuesMember2022-08-012023-04-300001528396us-gaap:ResearchAndDevelopmentExpenseMember2024-02-012024-04-300001528396us-gaap:ResearchAndDevelopmentExpenseMember2023-02-012023-04-300001528396us-gaap:ResearchAndDevelopmentExpenseMember2023-08-012024-04-300001528396us-gaap:ResearchAndDevelopmentExpenseMember2022-08-012023-04-300001528396us-gaap:SellingAndMarketingExpenseMember2024-02-012024-04-300001528396us-gaap:SellingAndMarketingExpenseMember2023-02-012023-04-300001528396us-gaap:SellingAndMarketingExpenseMember2023-08-012024-04-300001528396us-gaap:SellingAndMarketingExpenseMember2022-08-012023-04-300001528396us-gaap:GeneralAndAdministrativeExpenseMember2023-02-012023-04-300001528396us-gaap:GeneralAndAdministrativeExpenseMember2022-08-012023-04-300001528396us-gaap:EmployeeStockOptionMember2024-04-300001528396us-gaap:EmployeeStockOptionMember2023-08-012024-04-300001528396us-gaap:RestrictedStockUnitsRSUMember2024-04-300001528396us-gaap:RestrictedStockUnitsRSUMember2023-08-012024-04-300001528396us-gaap:RestrictedStockMember2023-07-310001528396us-gaap:RestrictedStockMember2023-08-012024-04-300001528396us-gaap:RestrictedStockMember2024-04-300001528396us-gaap:PerformanceSharesMember2023-08-012024-04-300001528396us-gaap:ShareBasedCompensationAwardTrancheOneMemberus-gaap:PerformanceSharesMember2023-08-012024-04-300001528396us-gaap:ShareBasedCompensationAwardTrancheTwoMemberus-gaap:PerformanceSharesMember2023-08-012024-04-300001528396us-gaap:EmployeeStockOptionMember2023-07-310001528396us-gaap:EmployeeStockOptionMember2022-08-012023-07-310001528396us-gaap:EmployeeStockOptionMember2023-08-012024-01-3100015283962023-08-012024-01-310001528396gwre:AcceleratedShareRepurchaseAgreementMember2022-09-300001528396gwre:AcceleratedShareRepurchaseAgreementMember2023-02-012023-04-300001528396gwre:AcceleratedShareRepurchaseAgreementMember2023-04-300001528396gwre:AcceleratedShareRepurchaseAgreementMember2023-10-310001528396gwre:AcceleratedShareRepurchaseAgreementMember2023-08-012023-10-310001528396gwre:AcceleratedShareRepurchaseAgreementMember2022-08-012023-04-30
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________________________________________
FORM 10-Q
______________________________________________________________
(Mark one)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 30, 2024
OR
 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from             to             .
Commission file number: 001-35394
 ______________________________________________________________
Guidewire Software, Inc.
(Exact name of registrant as specified in its charter)
 ______________________________________________________________
Delaware36-4468504
(State or other jurisdiction of
Incorporation or organization)
(I.R.S. Employer
Identification No.)
970 Park Pl, Suite 200
San Mateo, California
94403
(Address of principal executive offices)(Zip Code)
 
(650) 357-9100
(Registrant’s telephone number, including area code)
 ______________________________________________________________
N/A
(Former name, former address and former fiscal year, if changed since last report)
 ______________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.0001 par valueGWRENew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes     No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes      No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


 


Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company


Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes      No 
On May 31, 2024, the registrant had 82,663,305 shares of common stock issued and outstanding.


Guidewire Software, Inc.
Index

Item 1.
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 5.
Item 6.



FORWARD-LOOKING STATEMENTS

The section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” as well as other parts of this Quarterly Report on Form 10-Q and certain information incorporated herein by reference contain forward-looking statements within the meaning of the Securities Act of 1933, as amended (the “Securities Act”), and the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that are subject to risks and uncertainties. The forward-looking statements may include statements concerning, among other things, our business strategy (including anticipated trends and developments in, and management plans for, our business, growth, and the markets in which we operate), financial results, results of operations, revenue, gross margins, operating expenses, services, products, projected costs and capital expenditures, research and development programs, sales and marketing initiatives, competition, and the impact of general economic, business, and market conditions. In some cases, you can identify these statements by forward-looking words, such as “will,” “may,” “might,” “should,” “could,” “estimate,” “expect,” “suggest,” “believe,” “anticipate,” “intend,” “plan,” and “continue,” the negative or plural of these words and other comparable terminology. Actual events or results may differ materially from those expressed or implied by these statements due to various factors, including but not limited to the matters discussed below, in the section titled “Part II – Other Information – Item 1A. Risk Factors,” and elsewhere in this Quarterly Report on Form 10-Q. Many of the forward-looking statements are located in “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. The forward-looking statements contained in this Quarterly Report on Form 10-Q are based on information available to us as of the filing date of this Quarterly Report on Form 10-Q and our current expectations about future events, which are inherently subject to change and involve risks and uncertainties. You should not place undue reliance on these forward-looking statements.
We do not undertake any obligation to update any forward-looking statements in this Quarterly Report on Form 10-Q or in any of our other communications, except as required by law. All such forward-looking statements should be read as of the time the statements were made and with the recognition that these forward-looking statements may not be complete or accurate at a later date.

_____________

Unless the context requires otherwise, we are referring to Guidewire Software, Inc., together with its subsidiaries, when we use the terms “Guidewire,” the “Company,” “we,” “our,” or “us.” When using the term “products,” we are generally referring to both our subscription services and term license software.


PART I – Financial Information
 
ITEM 1.Financial Statements (unaudited)
1

GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)
 
April 30,
2024
July 31,
2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents$359,600 $401,813 
Short-term investments422,691 396,872 
Accounts receivable, net of allowances of $63 and $218, respectively
104,344 151,034 
Unbilled accounts receivable, net125,531 87,752 
Prepaid expenses and other current assets69,345 62,132 
Total current assets1,081,511 1,099,603 
Long-term investments151,891 128,782 
Unbilled accounts receivable, net7,288 11,112 
Property and equipment, net55,025 54,499 
Operating lease assets46,267 52,373 
Intangible assets, net10,372 14,473 
Goodwill372,214 372,214 
Deferred tax assets, net255,547 226,875 
Other assets59,910 67,957 
TOTAL ASSETS$2,040,025 $2,027,888 
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable$23,514 $34,627 
Accrued employee compensation76,538 103,980 
Deferred revenue, net181,689 206,923 
Convertible senior notes, net398,467  
Other current liabilities24,599 27,731 
Total current liabilities704,807 373,261 
Lease liabilities37,120 42,972 
Convertible senior notes, net 397,171 
Deferred revenue, net3,210 5,988 
Other liabilities9,522 9,030 
Total liabilities754,659 828,422 
STOCKHOLDERS’ EQUITY:
Common stock8 8 
Additional paid-in capital1,940,691 1,831,267 
Accumulated other comprehensive income (loss)(14,521)(13,859)
Retained earnings (accumulated deficit)(640,812)(617,950)
Total stockholders’ equity1,285,366 1,199,466 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$2,040,025 $2,027,888 
See accompanying Notes to Condensed Consolidated Financial Statements.
3

GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands except shares and per share amounts)
 
 Three Months EndedNine Months Ended
April 30,April 30,
 2024202320242023
Revenue:
Subscription and support$137,970 $107,499 $397,239 $312,321 
License56,210 50,602 161,318 164,669 
Services46,498 49,389 130,425 158,393 
Total revenue240,678 207,490 688,982 635,383 
Cost of revenue:
Subscription and support51,185 52,281 149,173 156,896 
License837 1,243 3,539 4,961 
Services46,429 55,048 139,345 178,993 
Total cost of revenue98,451 108,572 292,057 340,850 
Gross profit:
Subscription and support86,785 55,218 248,066 155,425 
License55,373 49,359 157,779 159,708 
Services69 (5,659)(8,920)(20,600)
Total gross profit142,227 98,918 396,925 294,533 
Operating expenses:
Research and development66,134 63,055 194,061 182,927 
Sales and marketing50,487 46,864 144,249 138,113 
General and administrative42,302 46,815 121,502 129,078 
Total operating expenses158,923 156,734 459,812 450,118 
Income (loss) from operations(16,696)(57,816)(62,887)(155,585)
Interest income10,824 6,627 31,727 16,657 
Interest expense(1,686)(1,683)(5,061)(5,034)
Other income (expense), net(6,535)(3,356)(9,501)(5,889)
Income (loss) before provision for (benefit from) income taxes(14,093)(56,228)(45,722)(149,851)
Provision for (benefit from) income taxes(8,615)(10,660)(22,860)(25,776)
Net income (loss)$(5,478)$(45,568)$(22,862)$(124,075)
Net income (loss) per share:
Basic and diluted$(0.07)$(0.56)$(0.28)$(1.51)
Shares used in computing net income (loss) per share:
Basic and diluted82,500,109 81,832,244 82,105,357 82,407,950 

See accompanying Notes to Condensed Consolidated Financial Statements.
4

GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(unaudited, in thousands)

 Three Months EndedNine Months Ended
April 30,April 30,
 2024202320242023
Net income (loss)$(5,478)$(45,568)$(22,862)$(124,075)
Other comprehensive income (loss):
Foreign currency translation adjustments(1,238)(356)(2,383)1,828 
Unrealized gain (loss) on available-for-sale securities(1,016)1,851 2,830 4,516 
Tax benefit (expense) on unrealized gain (loss) on available-for-sale securities262 (421)(533)(920)
Reclassification adjustment for realized gain (loss) included in net income (loss)(95)(89)(576)(655)
Total other comprehensive income (loss)(2,087)985 (662)4,769 
Comprehensive income (loss)$(7,565)$(44,583)$(23,524)$(119,306)

See accompanying Notes to Condensed Consolidated Financial Statements.
5

GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(unaudited, in thousands except share amounts)
 Common stockAdditional
paid-in
capital
Accumulated
other
comprehensive income (loss)
Retained earnings (accumulated deficit)Total
stockholders’
equity
 SharesAmount
Balance as of July 31, 202381,440,669 $8 $1,831,267 $(13,859)$(617,950)$1,199,466 
Net income (loss)— — — — (27,071)(27,071)
Issuance of common stock upon exercise of stock options42 — 1 — — 1 
Issuance of common stock upon vesting of restricted stock units ("RSUs")489,783 — — — — — 
Stock-based compensation— — 36,199 — — 36,199 
Foreign currency translation adjustment— — — (3,507)— (3,507)
Unrealized gain (loss) on available-for-sale securities, net of tax— — — 851 — 851 
Reclassification adjustment for realized gain (loss) on available-for-sale securities, included in net income (loss)— — — (290)— (290)
Balance as of October 31, 202381,930,494 $8 $1,867,467 $(16,805)$(645,021)$1,205,649 
Net income (loss)— — — — 9,687 9,687 
Issuance of common stock upon exercise of stock options327 — 3 — — 3 
Issuance of common stock upon vesting of RSUs391,289 — — — — — 
Stock-based compensation— — 36,403 — — 36,403 
Foreign currency translation adjustment— — — 2,362 — 2,362 
Unrealized gain (loss) on available-for-sale securities, net of tax— — — 2,200 — 2,200 
Reclassification adjustment for realized gain (loss) on available-for-sale securities, included in net income (loss)— — — (191)— (191)
Balance as of January 31, 202482,322,110 $8 $1,903,873 $(12,434)$(635,334)$1,256,113 
Net income (loss)— — — — (5,478)(5,478)
Issuance of common stock upon exercise of stock options746 — 9 — — 9 
Issuance of common stock upon vesting of RSUs340,215 — — — — — 
Stock-based compensation— — 36,809 — — 36,809 
Repurchase and retirement of common stock —  —   
Foreign currency translation adjustment— — — (1,238)— (1,238)
Unrealized gain (loss) on available-for-sale securities, net of tax— — — (754)— (754)
Reclassification adjustment for realized gain (loss) on available-for-sale securities, included in net income (loss)— — — (95)— (95)
Balance as of April 30, 202482,663,071 $8 $1,940,691 $(14,521)$(640,812)$1,285,366 

6

 Common stockAdditional
paid-in
capital
Accumulated
other
comprehensive income (loss)
Retained earnings (accumulated deficit)Total
stockholders’
equity
 SharesAmount
Balance as of July 31, 202284,084,209 $8 $1,755,476 $(19,845)$(283,982)$1,451,657 
Net income (loss)— — — — (69,318)(69,318)
Issuance of common stock upon vesting of RSUs373,380 — — — — — 
Stock-based compensation— — 35,249 — — 35,249 
Repurchase and retirement of common stock(2,581,478)— (40,000)— (160,000)(200,000)
Foreign currency translation adjustment— — — (2,701)— (2,701)
Unrealized gain (loss) on available-for-sale securities, net of tax— — — (1,201)— (1,201)
Reclassification adjustment for realized gain (loss) on available-for-sale securities, included in net income (loss)— — — (216)— (216)
Adoption of Accounting Standards Update ("ASU") 2020-06— — (68,003)— 39,694 (28,309)
Balance as of October 31, 202281,876,111 $8 $1,682,722 $(23,963)$(473,606)$1,185,161 
Net income (loss)— — — — (9,189)(9,189)
Issuance of common stock upon exercise of stock options217 — 2 — — 2 
Issuance of common stock upon vesting of RSUs336,440 — — — — — 
Stock-based compensation— — 36,296 — — 36,296 
Foreign currency translation adjustment— — — 4,885 — 4,885 
Unrealized gain (loss) on available-for-sale securities, net of tax— — — 3,367 — 3,367 
Reclassification adjustment for realized gain (loss) on available-for-sale securities, included in net income (loss)— — — (350)— (350)
Balance as of January 31, 202382,212,768 $8 $1,719,020 $(16,061)$(482,795)$1,220,172 
Net income (loss)— — — — (45,568)(45,568)
Issuance of common stock upon exercise of stock options6,365 — 225 — — 225 
Issuance of common stock upon vesting of RSUs347,370 — — — — — 
Stock-based compensation— — 35,286 — — 35,286 
Repurchase and retirement of common stock(855,192)— 40,000 — (55,993)(15,993)
Foreign currency translation adjustment— — — (356)— (356)
Unrealized gain (loss) on available-for-sale securities, net of tax— — — 1,430 — 1,430 
Reclassification adjustment for realized gain (loss) on available-for-sale securities, included in net income (loss)— — — (89)— (89)
Balance as of April 30, 202381,711,311 $8 $1,794,531 $(15,076)$(584,356)$1,195,107 
See accompanying Notes to Condensed Consolidated Financial Statements.
7


GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
 Nine Months Ended April 30,
 20242023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)$(22,862)$(124,075)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization16,525 19,911 
Amortization of debt issuance costs1,296 1,274 
Amortization of contract costs12,869 13,000 
Stock-based compensation109,174 106,294 
Changes to allowance for credit losses and revenue reserves(142)(304)
Deferred income tax(29,294)(31,034)
Amortization of premium (accretion of discount) on available-for-sale securities, net(9,492)(2,458)
Gain on sale of strategic investment(1,758) 
Changes in fair value of strategic investments(298) 
Accelerated depreciation related to lease assignment 26,921 
Gain from lease assignment (18,419)
Other non-cash items affecting net income (loss)(74)(315)
Changes in operating assets and liabilities:
Accounts receivable46,276 14,756 
Unbilled accounts receivable(33,955)(57,278)
Prepaid expenses and other assets(22,082)(12,718)
Operating lease assets6,106 (11,348)
Accounts payable(10,538)(6,725)
Accrued employee compensation(25,604)(18,392)
Deferred revenue(28,012)(29,360)
Lease liabilities(5,136)953 
Other liabilities(1,028)(5,525)
Net cash provided by (used in) operating activities1,971 (134,842)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available-for-sale securities(453,441)(358,823)
Maturities and sales of available-for-sale securities416,299 382,219 
Purchases of property and equipment(4,668)(2,614)
Capitalized software development costs(9,429)(8,877)
Acquisition of strategic investments(336)(8,051)
Sale of strategic investment6,508  
Net cash provided by (used in) investing activities(45,067)3,854 
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock upon exercise of stock options14 227 
Repurchase and retirement of common stock (213,993)
Net cash provided by (used in) financing activities14 (213,766)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash(2,915)1,659 
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH(45,997)(343,095)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—Beginning of period406,790 614,686 
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—End of period$360,793 $271,591 
8

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest$5,000 $5,000 
Cash paid for income taxes, net of tax refunds$6,173 $4,417 
Accruals for purchase of property and equipment$638 $2,748 
Accruals for capitalized software development costs$712 $804 
Accrual for shares repurchased$ $2,000 
See accompanying Notes to Condensed Consolidated Financial Statements.
9

GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
1. The Company and Summary of Significant Accounting Policies and Estimates
Company
Guidewire Software, Inc., a Delaware corporation, was incorporated on September 20, 2001. Guidewire Software, Inc., together with its subsidiaries (the “Company”), provides a technology platform and suite of products that combine core operations, digital engagement, analytics, and machine learning and artificial intelligence (“AI”) applications. The Company’s technology platform and suite of products support core insurance operations, including underwriting, policy administration, claim management, and billing; insights into data that can improve business decision making; and digital sales, service, and claims experiences for policyholders, agents, and other key stakeholders. The Company’s customers are primarily property and casualty insurance carriers. The term “products” generally refers to both subscription services and term license software offerings.
Basis of Presentation and Consolidation
The Company’s condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The condensed consolidated financial statements and notes include the Company and its wholly owned subsidiaries and reflect all adjustments (all of which are normal and recurring in nature) that, in the opinion of management, are necessary for a fair presentation of the interim periods presented. All intercompany balances and transactions have been eliminated in consolidation. Certain information and disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted under the rules and regulations of the SEC.
These condensed consolidated financial statements should be read in conjunction with the Company’s financial statements and related notes, together with management’s discussion and analysis of financial condition and results of operations, presented in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2023.
Use of Estimates
In preparing the condensed consolidated financial statements and related disclosures in conformity with GAAP and pursuant to the rules and regulations of the SEC, the Company must make estimates and judgments that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results may differ materially from these estimates.
Significant Accounting Policies
There have been no changes in the Company’s significant accounting policies from those that were disclosed in the Company’s consolidated financial statements included in its Annual Report on Form 10-K for the fiscal year ended July 31, 2023, except for those disclosed herein.
Restricted Cash
Unearned acquisition consideration holdback subject to service conditions is held in escrow and considered restricted cash. As of April 30, 2024 and July 31, 2023, restricted cash in the amount of $1.2 million and $2.9 million, respectively, was included in prepaid expenses and other current assets. As of July 31, 2023, $2.1 million was included in other assets in the consolidated balance sheet.
Concentration of Credit Risk
Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash, cash equivalents, investments, accounts receivable, and unbilled accounts receivable. The Company maintains its cash, cash equivalents, and investments with high-quality financial institutions. The Company is exposed to credit risk for cash held in financial institutions in the event of a default to the extent that such amounts recorded in the condensed consolidated balance sheets are in excess of amounts that are insured by the Federal Deposit Insurance Corporation.
No customer accounted for 10% or more of the Company's revenue in the three and nine months ended April 30, 2024. One customer accounted for 10% or more of the Company’s revenue in the three months ended April 30, 2023, and no customer accounted for 10% or more of the Company’s revenue in the nine months ended April 30, 2023. No customer accounted for 10% or more of the Company's accounts receivable as of April 30, 2024 and July 31, 2023.
10

Recent Accounting Pronouncements
In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires public entities to disclose information about their reportable segments’ significant expenses and other segment items on an interim and annual basis. Public entities with a single reportable segment are required to apply the disclosure requirements in ASU No. 2023-07, as well as all existing segment disclosures and reconciliation requirements in ASC 280 on an interim and annual basis. The new standard will be effective and the Company will adopt it for the annual period beginning August 1, 2024, and for the interim periods beginning after August 1, 2025 with early adoption permitted. The adoption of this ASU will impact the Company’s disclosures.
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which improves the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation and income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. The new standard will be effective and the Company will adopt it beginning August 1, 2025 and early adoption is permitted. Upon adoption, the guidance can be applied prospectively or retrospectively. The Company is currently assessing the impact of adopting this standard on the consolidated financial statements.
Other recent accounting pronouncements that will be applicable to the Company are not expected to have a material impact on its present or future financial statements.
2. Revenue
Disaggregation of Revenue
Revenue by service or product type is as follows (in thousands):
Three Months EndedNine Months Ended
April 30,April 30,
2024202320242023
Subscription and support
Subscription$120,430 $89,091 $343,152 $254,083 
Support17,540 18,408 54,087 58,238 
License
Term license55,005 50,556 160,017 164,512 
Perpetual license1,205 46 1,301 157 
Services46,498 49,389 130,425 158,393 
 Total revenue$240,678 $207,490 $688,982 $635,383 
Revenue by service or product type and by geography is as follows (in thousands):
Three Months Ended April 30, 2024
Subscription and supportLicenseServicesTotal
United States$94,089 $36,016 $33,286 $163,391 
Canada19,583 2,859 1,837 24,279 
Other Americas1,484 855 452 2,791 
Total Americas115,156 39,730 35,575 190,461 
Total EMEA15,139 10,556 8,850 34,545 
Total APAC7,675 5,924 2,073 15,672 
Total revenue$137,970 $56,210 $46,498 $240,678 

11

Three Months Ended April 30, 2023
Subscription and supportLicenseServicesTotal
United States$71,764 $33,528 $33,100 $138,392 
Canada18,176 1,932 4,341 24,449 
Other Americas1,441 439 892 2,772 
Total Americas91,381 35,899 38,333 165,613 
Total EMEA10,319 8,351 7,727 26,397 
Total APAC5,799 6,352 3,329 15,480 
Total revenue$107,499 $50,602 $49,389 $207,490 
Nine Months Ended April 30, 2024
Subscription and supportLicenseServicesTotal
United States$271,015 $85,522 $90,853 $447,390 
Canada56,362 10,662 5,970 72,994 
Other Americas4,469 1,357 1,373 7,199 
Total Americas331,846 97,541 98,196 527,583 
Total EMEA43,104 37,511 25,551 106,166 
Total APAC22,289 26,266 6,678 55,233 
Total revenue$397,239 $161,318 $130,425 $688,982 
Nine Months Ended April 30, 2023
Subscription and supportLicenseServicesTotal
United States$210,189 $90,458 $107,925 $408,572 
Canada51,763 11,537 14,818 78,118 
Other Americas4,397 1,291 1,997 7,685 
Total Americas266,349 103,286 124,740 494,375 
Total EMEA28,959 34,484 25,885 89,328 
Total APAC17,013 26,899 7,768 51,680 
Total revenue$312,321 $164,669 $158,393 $635,383 
No country, other than those presented above, accounted for more than 10% of total revenue during the three and nine months ended April 30, 2024 and 2023.
Customer Contract Related Balance Sheet Amounts
Amounts related to customer contract-related arrangements are included on the condensed consolidated balance sheets as follows (in thousands):
April 30, 2024July 31, 2023
Unbilled accounts receivable, net$132,819 $98,864 
Contract costs, net
$44,537 $47,254 
Deferred revenue, net$184,899 $212,911 
As of April 30, 2024 and July 31, 2023, there was no allowance for credit losses associated with unbilled accounts receivable.
12

Contract costs
The current portion of contract costs of $15.5 million and $15.9 million is included in prepaid and other current assets in the Company’s condensed consolidated balance sheets as of April 30, 2024 and July 31, 2023, respectively. The non-current portion of contract costs of $29.0 million and $31.3 million is included in other assets in the Company’s condensed consolidated balance sheets as of April 30, 2024 and July 31, 2023, respectively. The Company amortized $4.1 million and $4.4 million of contract costs during the three months ended April 30, 2024 and 2023, respectively, and amortized $12.9 million and $13.0 million during the nine months ended April 30, 2024 and 2023, respectively.
Deferred revenue
During the three and nine months ended April 30, 2024, the Company recognized revenue of approximately $33.0 million and $184.8 million, respectively, related to the Company’s deferred revenue balance reported as of July 31, 2023.
Remaining Performance Obligations
The aggregate amount of consideration allocated to remaining performance obligations either not satisfied or partially satisfied was approximately $1.6 billion as of April 30, 2024. Subscription services are typically satisfied over three to five years, support services are generally satisfied within one year, and professional services are typically satisfied within one year. Professional services under time and material contracts are not included in the remaining performance obligations calculation as these arrangements can be cancelled at any time.
3. Fair Value of Financial Instruments
Available-for-sale investments within cash equivalents and investments consist of the following (in thousands):
April 30, 2024
Amortized CostUnrealized GainsUnrealized LossesEstimated Fair Value
Asset-backed securities$43,481 $26 $(123)$43,384 
Certificates of deposit56,540   56,540 
Commercial paper163,686   163,686 
Corporate bonds254,954 122 (532)254,544 
Foreign government bonds8,353  (48)8,305 
Money market funds235,149   235,149 
U.S. Government agency securities21,660  (49)21,611 
U.S. Government bonds74,609  (481)74,128 
     Total$858,432 $148 $(1,233)$857,347 
July 31, 2023
Amortized CostUnrealized GainsUnrealized LossesEstimated Fair Value
Asset-backed securities$43,573 $18 $(234)$43,357 
Certificates of deposit34,395   34,395 
Commercial paper150,254   150,254 
Corporate bonds200,691 41 (1,590)199,142 
Foreign government bonds14,559  (203)14,356 
Money market funds229,721   229,721 
U.S. Government agency securities84,180 9 (151)84,038 
U.S. Government bonds87,064 1 (1,230)85,835 
    Total$844,437 $69 $(3,408)$841,098 
The Company does not consider any portion of the unrealized losses at April 30, 2024 to be credit losses. The Company has recorded the securities at fair value in its condensed consolidated balance sheets, with unrealized gains and losses reported as a component of accumulated other comprehensive income (loss). The amount of unrealized gains and losses reclassified into earnings is based on the specific identification of the securities sold. The realized gains and losses from sales of securities are presented as a component of other income (expense) in the condensed consolidated statements of comprehensive income (loss).
13

The following table summarizes the contractual maturities of the Company’s available-for-sale investments measured at fair value (in thousands):
April 30, 2024
Less Than 12 Months12 Months or GreaterTotal
Asset-backed securities$6,070 $37,314 $43,384 
Certificates of deposit56,540  56,540 
Commercial paper163,686  163,686 
Corporate bonds157,889 96,655 254,544 
Foreign government bonds6,486 1,819 8,305 
Money market funds235,149  235,149 
U.S. Government agency securities20,737 874 21,611 
U.S. Government bonds58,899 15,229 74,128 
     Total$705,456 $151,891 $857,347 
Fair Value Measurement
Available-for-sale investments
The following tables summarize the Company’s available-for-sale investments measured at fair value, by level within the fair value hierarchy (in thousands):
April 30, 2024
Level 1Level 2Level 3Total
Cash equivalents:
Commercial paper$ $44,624 $ $44,624 
Corporate bonds$ $2,992 $ $2,992 
Money market funds235,149   235,149 
Total cash equivalents235,149 47,616  282,765 
Short-term investments:
Asset-backed securities 6,070  6,070 
Certificates of deposit 56,540  56,540 
Commercial paper 119,062  119,062 
Corporate bonds 154,897  154,897 
Foreign government bonds 6,486  6,486 
U.S. Government agency securities20,737  20,737 
U.S. Government bonds 58,899  58,899 
Total short-term investments 422,691  422,691 
Long-term investments:
Asset-backed securities 37,314  37,314 
Corporate bonds 96,655  96,655 
Foreign government bonds 1,819  1,819 
U.S. Government agency securities 874  874 
U.S. Government bonds 15,229  15,229 
Total long-term investments 151,891  151,891 
       Total$235,149 $622,198 $ $857,347 
14

July 31, 2023
Level 1Level 2Level 3Total
Cash equivalents:
Commercial paper$ $61,296 $ $61,296 
Money market funds229,721   229,721 
U.S. Government agency securities 8,478  8,478 
U.S. Government bonds 15,949  15,949 
Total cash equivalents229,721 85,723  315,444 
Short-term investments:
Asset-backed securities 2,705  2,705 
Certificates of deposit 34,395  34,395 
Commercial paper 88,958  88,958 
Corporate bonds 156,396  156,396 
Foreign government bonds 10,717  10,717 
U.S. Government agency securities 69,101  69,101 
U.S. Government bonds 34,600  34,600 
Total short-term investments 396,872  396,872 
Long-term investments:
Asset-backed securities 40,652  40,652 
Corporate bonds 42,746  42,746 
Foreign government bonds 3,639  3,639 
U.S. Government agency securities 6,459  6,459 
U.S. Government bonds 35,286  35,286 
Total long-term investments 128,782  128,782 
      Total$229,721 $611,377 $ $841,098 
Convertible Senior Notes
In March 2018, the Company issued $400.0 million aggregate principal amount of 1.25% Convertible Senior Notes due 2025 (the “Convertible Senior Notes”). The fair value of the Convertible Senior Notes was $445.4 million and $388.2 million at April 30, 2024 and July 31, 2023, respectively. The Company estimates the fair value of the Convertible Senior Notes using commonly accepted valuation methodologies and market-based risk measurements that are directly observable, such as unadjusted quoted prices in markets that are not active (Level 2).
15

Strategic Investments
The Company’s other assets include strategic investments in privately held companies in which the Company does not have a controlling interest or the ability to exert significant influence. The strategic investments consist of non-marketable equity securities that do not have readily determinable market values (Level 3), which are recorded using the measurement alternative at cost less impairment and adjusts cost for subsequent observable changes in fair value, and an investment in a limited partnership, which is recorded using the net asset value practical expedient (Level 3) in accordance with ASC 820. Changes in fair value are recorded in other income (expense) on the condensed consolidated statements of operations.
During the nine months ended April 30, 2024, the Company invested $0.3 million in new and existing strategic investments.
During the nine months ended April 30, 2024, one of the Company’s investees was acquired by a privately held limited partnership. As a result, the Company received $12.1 million in consideration for its equity interest in the investee, composed of $6.5 million cash and $5.6 million of an ownership interest in the privately held limited partnership, and recognized a $1.8 million gain in excess of cost as a component of other income (expense), net in the condensed consolidated statements of operations.
The following table summarizes the carrying amount of the Company’s strategic investments (in thousands):