Guidewire Software Inc (GWRE)

Pretax margin

		Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	14,524	-26,838	-29,965	-72,100	-87,274	-134,094	-186,395	-203,388	-246,814	-229,715	-198,978	-170,463	-141,728	-104,281	-49,059	-40,742	-33,557	-24,331	-50,019	-26,593
Revenue (ttm)	US$ in thousands	1,039,477	982,300	952,197	919,218	910,947	898,831	870,547	857,475	826,697	794,619	779,718	746,444	722,096	726,143	740,463	744,838	738,408	725,792	694,239	693,064
Pretax margin		1.40%	-2.73%	-3.15%	-7.84%	-9.58%	-14.92%	-21.41%	-23.72%	-29.86%	-28.91%	-25.52%	-22.84%	-19.63%	-14.36%	-6.63%	-5.47%	-4.54%	-3.35%	-7.20%	-3.84%

October 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $14,524K ÷ $1,039,477K
= 1.40%

The pretax margin of Guidewire Software Inc has shown a fluctuating trend over the periods analyzed. The company's pretax margin was negative throughout the period from January 31, 2020, to April 30, 2024, indicating that the company's expenses exceeded its gross income before accounting for taxes.

The margin widened further into negative territory in the earlier periods, hitting its lowest point of -29.86% on October 31, 2022. However, as of October 31, 2024, the pretax margin turned positive at 1.40%, signaling a notable improvement in the company's profitability.

It is important to note that negative pretax margins may indicate inefficiency in cost management or a need to increase revenue generation. The recent positive pretax margin could suggest that Guidewire Software Inc has made strategic changes to enhance its operational efficiency or boost its revenue streams. Investors and stakeholders may monitor future financial reports to assess whether this positive trend is sustained.