新闻稿

Guidewire Software Announces First Quarter Fiscal 2018 Financial Results

FOSTER CITY, Calif., 2017年11月29日

Guidewire Software, Inc. (NYSE: GWRE), a provider of software products to Property and Casualty insurers, today announced its financial results for the fiscal quarter ended October 31, 2017.

“We exceeded our guidance for revenue and operating income for the first quarter of fiscal 2018,” said Marcus Ryu, chief executive officer, Guidewire Software. “We were also gratified that our recent user conference attracted 25% greater attendance than last year. At Connections we showcased enhancements to our core, digital, and data products, our industry platform ambition, and our progress toward delivering all Guidewire products in the cloud. We also introduced our newly-acquired Cyence business, unveiled several next-generation digital and data analytics products, and expanded the scope of Guidewire Marketplace.”

Ryu continued, “Connections is also a key opportunity to refresh our understanding of how our customers and prospects are approaching their transformation journeys. This year our new cloud-based solutions received strong positive feedback, and we noted an increased willingness to consider cloud-based core systems as well. As a result, today we expect our mix of sales to feature more subscriptions and fewer perpetual and term sales than our initial expectations for fiscal 2018.”

First Quarter Fiscal 2018 Financial Highlights

Revenue

  • Total revenue for the first quarter of fiscal 2018 was $108.2 million, an increase of 15% from the same quarter in fiscal 2017. Services revenue was $59.1 million, an increase of 52%, and maintenance revenue was $18.9 million, an increase of 15%. License and other revenue was $30.1 million, a decrease of 22% from the first quarter of fiscal 2017.
  • Rolling four-quarter recurring term license and maintenance revenue was $324.8 million for the period ended October 31, 2017, an increase of 19% compared to the same metric for the period ended October 31, 2016.

Profitability

  • GAAP loss from operations was $32.7 million for the first quarter of fiscal 2018, compared with a loss of $18.3 million in the comparable period in fiscal 2017.
  • Non-GAAP loss from operations was $8.3 million for the first quarter of fiscal 2018, compared with $1.0 million in the comparable period in fiscal 2017.
  • GAAP net loss was $8.9 million for the first quarter of fiscal 2018, compared with a net loss of $7.9 million for the comparable period in fiscal 2017. GAAP net loss per share was $0.12, based on diluted weighted average shares outstanding of 75.2 million, compared with $0.11 net loss per share for the comparable period in fiscal 2017, based on diluted weighted average shares outstanding of 73.3 million.
  • Non-GAAP net loss was $4.8 million for the first quarter of fiscal 2018, compared with a net income of $1.1 million in the comparable period in fiscal 2017. Non-GAAP net loss per diluted share was $0.06, based on diluted weighted average shares outstanding of 75.2 million, compared with net income per diluted share of $0.02 in the comparable period in fiscal 2017, based on diluted weighted average shares outstanding of 74.6 million.

Liquidity

  • The Company had $653.5 million in cash, cash equivalents and investments at October 31, 2017, compared with $687.8 million at July 31, 2017. The Company used $31.2 million cash from operations in the first quarter of fiscal 2018, reflecting normal seasonal patterns.

Business Outlook

Guidewire is issuing the following outlook for the second quarter and fiscal 2018, including the impact of the previously announced acquisition of Cyence, based on current expectations:

             
(in $ millions, except per share outlook)    

Second Quarter
Fiscal Year 2018

    Full Year
Fiscal 2018
Revenue     152.0     -   156.0       631.0     -   641.0  
License and other revenue     76.0     -   78.0       302.0     -   312.0  
Maintenance revenue     18.0     -   19.0       73.0     -   75.0  
Services revenue     57.5     -   59.5       250.0     -   260.0  
GAAP operating income/(loss)     (16.1 )   -   (12.1 )     (35.0 )   -   (25.0 )
Non-GAAP operating income/(loss)     18.0     -   22.0       90.0     -   100.0  
GAAP net income/(loss)     (25.9 )   -   (22.5 )     (20.7 )   -   (12.2 )
GAAP net income/(loss) per share     (0.34 )   -   (0.30 )     (0.27 )   -   (0.16 )
Non-GAAP net income/(loss)     13.2     -   15.8       63.3     -   69.9  
Non-GAAP net income/(loss) per share     0.17     -   0.21       0.82     -   0.90  
                                 

Non-GAAP income from operations and non-GAAP net income exclude stock-based compensation expense and amortization of intangible assets. The GAAP and non-GAAP estimated annual tax rates used to compute net income and EPS exclude discrete items such as forecasted tax benefits related to share-based compensation.

Conference Call Information

What:       Guidewire Software First Quarter Fiscal 2018 Financial Results Conference Call
When:       Wednesday, November 29, 2017
Time:       2:00 p.m. PT (5:00 p.m. ET)
Live Call:       (800) 289-0438, Domestic
        (323) 794-2423, International
Replay:       (844) 512-2921, Passcode 9517261, Domestic
        (412) 317-6671, Passcode 9517261, International
Webcast:      

http://ir.guidewire.com (live and replay)

The webcast will be archived on Guidewire’s website for a period of three months.

Non-GAAP Financial Measures

This press release contains the following non-GAAP financial measures: Non-GAAP operating income, Non-GAAP net income (loss), Non-GAAP net income (loss) per share and Non-GAAP tax provision (benefit). These Non-GAAP financial measures exclude stock-based compensation and amortization of intangibles, and the tax effect of these adjustments for Non-GAAP net income (loss) and Non-GAAP net income (loss) per share.

Guidewire believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Guidewire’s financial condition and results of operations. The Company’s management uses these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis, for purposes of determining executive and senior management incentive compensation and for budgeting and planning purposes. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other software companies, many of which present similar non-GAAP financial measures to investors.

Management of the Company does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Guidewire urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company’s business.

Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release.

关于 Guidewire Software

借助于凯德维亚(Guidewire)面向财产保险行业提供的系统平台,保险公司可以适应加速变化的市场并赖以致胜。我们提供软件、服务和合作伙伴生态系统,以赋能我们的客户,满足其业务运营、差异化和增长的需求。目前,全球32个国家中超过350家公司已经选用Guidewire软件。欲了解更多信息,请访问www.guidewire.com或关注我们的微信@凯德维亚在线

Cautionary Language Concerning Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook, market positioning and future investments. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Guidewire’s control. Guidewire’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in Guidewire’s most recent Forms 10-K and 10-Q filed with the Securities and Exchange Commission as well as other documents that may be filed by the Company from time to time with the Securities and Exchange Commission. In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the market for our software may develop more slowly than expected or than it has in the past; quarterly and annual operating results may fluctuate more than expected; seasonal and other variations related to our revenue recognition may cause significant fluctuations in our results of operations and cash flows; our reliance on sales to and renewals from a relatively small number of large customers for a substantial portion of our revenues; our services revenues produce lower gross margins than our license and maintenance revenues; assertions by third parties that we violate their intellectual property rights could substantially harm our business; we face intense competition in our market; weakened global economic conditions may adversely affect the P&C insurance industry including the rate of information technology spending; our product development and sales cycles are lengthy; the risk of losing key employees; changes in foreign exchange rates; general political or destabilizing events, including war, conflict or acts of terrorism; and other risks and uncertainties. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent Guidewire’s views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its views to change. Guidewire undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Guidewire’s views as of any date subsequent to the date of this press release.

 
GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)
             
      October 31,
2017
    July 31,
2017
ASSETS            
CURRENT ASSETS:            
Cash and cash equivalents     $ 255,399       $ 263,176  
Short-term investments     305,685       310,027  
Accounts receivable     78,408       79,433  
Prepaid expenses and other current assets     28,142       26,604  
Total current assets     667,634       679,240  
Long-term investments     92,388       114,585  
Property and equipment, net     13,806       14,376  
Intangible assets, net     66,538       71,315  
Deferred tax assets, net     146,005       37,430  
Goodwill     141,924       141,851  
Other assets     21,853       20,104  
TOTAL ASSETS     $ 1,150,148       $ 1,078,901  
LIABILITIES AND STOCKHOLDERS’ EQUITY            
CURRENT LIABILITIES:            
Accounts payable     $ 14,233       $ 13,416  
Accrued employee compensation     24,579       48,882  
Deferred revenues, current     86,661       91,243  
Other current liabilities     9,959       10,075  
Total current liabilities     135,432       163,616  
Deferred revenues, noncurrent     24,519       19,892  
Other liabilities     1,796       2,112  
Total liabilities     161,747       185,620  
STOCKHOLDERS’ EQUITY:            
Common stock     8       8  
Additional paid-in capital     850,705       830,014  
Accumulated other comprehensive loss     (6,567 )     (5,796 )
Retained earnings     144,255       69,055  
Total stockholders’ equity     988,401       893,281  
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY     $ 1,150,148       $ 1,078,901  
                     
 
GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands except share and per share data)
             
      Three Months Ended October 31,
      2017     2016
Revenues:            
License and other     $ 30,093       $ 38,721  
Maintenance     18,930       16,532  
Services     59,148       38,874  
Total revenues     108,171       94,127  
Cost of revenues: (1)            
License and other     6,715       2,430  
Maintenance     3,467       3,325  
Services     52,712       36,264  
Total cost of revenues     62,894       42,019  
Gross profit:            
License and other     23,378       36,291  
Maintenance     15,463       13,207  
Services     6,436       2,610  
Total gross profit     45,277       52,108  
Operating expenses: (1)            
Research and development     35,711       30,750  
Sales and marketing     23,610       25,500  
General and administrative     18,671       14,160  
Total operating expenses     77,992       70,410  
Loss from operations     (32,715 )     (18,302 )
Interest income     1,908       1,342  
Other expense, net     (262 )     (681 )
Loss before income taxes     (31,069 )     (17,641 )
Benefit from income taxes     (22,155 )     (9,783 )
Net loss     $ (8,914 )     $ (7,858 )
Net loss per share:            
Basic     $ (0.12 )     $ (0.11 )
Diluted     $ (0.12 )     $ (0.11 )
Shares used in computing net loss per share:            
Basic     75,187,430       73,293,467  
Diluted     75,187,430       73,293,467  
                 

(1) Amounts include stock-based compensation expense as follows:

       
      Three Months Ended October 31,
      2017     2016
      (unaudited, in thousands)
Stock-based compensation expenses:            
Cost of license revenue     $ 174       $ 51
Cost of maintenance revenues     455       413
Cost of services revenues     5,226       4,695
Research and development     4,912       4,467
Marketing and sales     4,217       4,223
General and administrative     4,639       4,028
Total stock-based compensation expenses     $ 19,623       $ 17,877
                   
 
GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
             
      Three Months Ended October 31,
      2017     2016
CASH FLOWS FROM OPERATING ACTIVITIES:            
Net loss     $ (8,914 )     $ (7,858 )
Adjustments to reconcile net loss to net cash provided by operating activities:            
Depreciation and amortization     6,634       3,074  
Stock-based compensation     19,623       17,877  
Deferred income tax     (23,708 )     (10,502 )
Amortization of premium on available-for-sale securities, and other non-cash items     210       467  
Changes in operating assets and liabilities:            
Accounts receivable     855       8,682  
Prepaid expenses and other assets     (3,575 )     191  
Accounts payable     1,868       902  
Accrued employee compensation     (23,953 )     (21,300 )
Other liabilities     (356 )     (1,251 )
Deferred revenues     68       (3,192 )
Net cash used in operating activities     (31,248 )     (12,910 )
CASH FLOWS FROM INVESTING ACTIVITIES:            
Purchases of available-for-sale securities     (66,843 )     (200,893 )
Sales of available-for-sale securities     93,039       157,163  
Purchases of property and equipment     (1,899 )     (2,474 )
Capitalized software development costs     (517 )      
Acquisitions of business, net of acquired cash           (33,593 )
Net cash provided by (used in) investing activities     23,780       (79,797 )
CASH FLOWS FROM FINANCING ACTIVITIES:            
Proceeds from issuance of common stock upon exercise of stock options     365       1,112  
Net cash provided by financing activities     365       1,112  
Effect of foreign exchange rate changes on cash and cash equivalents     (674 )     (924 )
NET CHANGE IN CASH AND CASH EQUIVALENTS     (7,777 )     (92,519 )
CASH AND CASH EQUIVALENTS—Beginning of period     263,176       223,582  
CASH AND CASH EQUIVALENTS—End of period     $ 255,399       $ 131,063  
                     
 
GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures

(unaudited, in thousands except share and per share data)

             
The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP financial measures for the periods indicated below:
      Three Months Ended October 31,
      2017     2016
Income (loss) from operations reconciliation:            
GAAP loss from operations     $ (32,715 )     $ (18,302 )
Non-GAAP adjustments:            
Stock-based compensation (1)     19,623       17,877  
Amortization of intangibles (1)     4,776       1,438  
Non-GAAP (loss) income from operations     $ (8,316 )     $ 1,013  
             
Net income (loss) reconciliation:            
GAAP net loss     $ (8,914 )     $ (7,858 )
Non-GAAP adjustments:            
Stock-based compensation (1)     19,623       17,877  
Amortization of intangibles (1)     4,776       1,438  
Tax impact on non-GAAP adjustments (2)     (20,283 )     (10,336 )
Non-GAAP net (loss) income     $ (4,798 )     $ 1,121  
             
Tax (benefits) provision reconciliation:            
GAAP tax benefits     $ (22,155 )     $ (9,783 )
Non-GAAP adjustments:            
Stock-based compensation     6,470       5,721  
Amortization of intangibles     1,575       460  
Other income tax effects and adjustments     12,238       4,155  
Non-GAAP tax (benefits) provision     $ (1,872 )     $ 553  
             
Earnings per share reconciliation:            
GAAP loss per share - Diluted     $ (0.12 )     $ (0.11 )
Amortization of intangibles acquired in business combinations     0.06       0.02  
Stock-based compensation     0.26       0.24  
Less tax benefit of non GAAP items     (0.26 )     (0.14 )
Non-GAAP dilutive shares excluded from GAAP EPS calculation (3)           0.01  
Non-GAAP (loss) earnings per share - Diluted     $ (0.06 )     $ 0.02  
             
Shares used in computing non-GAAP per share amounts:            
GAAP weighted average shares - Diluted     75,187,430       73,293,467  
Non-GAAP dilutive shares excluded from GAAP EPS calculation (3)           1,291,775  
Pro forma weighted average shares - Diluted     75,187,430       74,585,242  

(1) Adjustments relate to amortization of acquired intangibles and stock-based compensation recognized during the period for GAAP purposes.
(2) Adjustment reflects the tax benefit resulting from all non-GAAP adjustments.
(3) Due to the occurrence of a net loss on a GAAP basis, potentially dilutive securities were excluded from the calculation of GAAP earnings per share, as they would have an anti-dilutive effect. However, as net income was earned on a non-GAAP basis, these shares have a dilutive effect on a Non-GAAP earnings per share and are included here.

 
GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Outlook
The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP outlook for the periods indicated below:
 
(in $ millions)    

Second Quarter Fiscal
Year 2018

    Full Year
Fiscal 2018
Outlook reconciliation: GAAP and non-GAAP operating income/(loss)                        
GAAP operating income     (16.1 )   - (12.1 )     (35.0 )   - (25.0 )
Non-GAAP adjustments:                        
Stock-based compensation     25.7     - 26.7       94.9     - 97.9  
Amortization of intangibles     7.7     - 8.2       28.0     - 29.0  
Non-GAAP operating income     18.0     - 22.0       90.0     - 100.0  
                         
Outlook reconciliation: GAAP and non-GAAP net income/(loss)                        
GAAP net income     (25.9 )   - (22.5 )     (20.7 )   - (12.2 )
Non-GAAP adjustments:                        
Stock-based compensation     25.7     - 26.7       94.9     - 97.9  
Amortization of intangibles     7.7     - 8.2       28.0     - 29.0  
Non-GAAP tax impact     5.0     - 4.2       (41.1 )   - (43.0 )
Non-GAAP net income     13.2     - 15.8       63.3     - 69.9  
                             

Media Contact:
Guidewire Software, Inc.
Diana Stott, 650-356-4941
dstott [at] guidewire.com
or
Investor Contact:
ICR, LLC
Garo Toomajanian, 650-357-5282
ir [at] guidewire.com