Guidewire Software Announces Third Quarter Fiscal 2017 Financial Results

Guidewire Software Announces Third Quarter Fiscal 2017 Financial Results

FOSTER CITY, 1 junio, 2017

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 April 30, 2017.

“Revenue and profitability exceeded our guidance for the third quarter,” saidMarcus Ryu, chief executive officer, Guidewire Software. “Our quarter benefited from the completion of a significant expansion of our relationship with an existing Tier 1 customer earlier in the fiscal year than we expected, as well as sales across our core, data, and digital product families.”

Ryu continued, “We also advanced the delivery of our software as cloud-based solutions. We completed the first sale of our all-in-one cloud-based system, InsuranceNow, and our first cloud-based implementation of InsuranceSuite went live in May with its first line of business. This latter engagement, which we have described as a digital greenfield project, represents a major milestone in our strategy to offer the full breadth of Guidewire InsurancePlatform in both cloud-based and on-premises models to serve our customers’ diverse needs.”

Third Quarter Fiscal 2017 Financial Highlights

Revenue

  • License and other revenue for the third quarter of fiscal 2017 was $59.0 million, an increase of 29% from the third quarter of fiscal 2016. Maintenance revenue was $16.9 million, an increase of 15% and services revenue was $47.6 million, an increase of 24%. Total revenue was $123.4 million, an increase of 25% from the same quarter in fiscal 2016.

  • License and other revenue for the nine months ended April 30, 2017 was $161.8 million, an increase of 23% from the comparable period in fiscal 2016. Maintenance revenue was $50.0 million, an increase of 16% and services revenue was $121.4 million, an increase of 12%. Total revenue was $333.2 million, an increase of 18% from the same period in fiscal 2016.

  • Rolling four-quarter recurring term license and maintenance revenue was $304.9 million as of April 30, 2017, an increase of 22% compared to the same metric as of April 30, 2016.

Profitability

  • GAAP loss from operations was $4.3 million for the third quarter of fiscal 2017, compared with a loss of $5.8 million in the comparable period in fiscal 2016.

  • Non-GAAP income from operations was $17.1 million for the third quarter of fiscal 2017, compared with $11.0 million in the comparable period in fiscal 2016.

  • GAAP net loss was $1.8 million for the third quarter of fiscal 2017, compared with a net loss of $0.4 million for the comparable period in fiscal 2016. GAAP net loss per share was $0.02, based on diluted weighted average shares outstanding of 74.2 million, compared with $0.01 net loss per share for the comparable period in fiscal 2016, based on diluted weighted average shares outstanding of 72.3 million.

  • Non-GAAP net income was $12.3 million for the third quarter of fiscal 2017, compared with $10.7 million in the comparable period in fiscal 2016. Non-GAAP net income per diluted share was $0.16, based on diluted weighted average shares outstanding of 75.2 million, compared with $0.14 in the comparable period in fiscal 2016, based on diluted weighted average shares outstanding of 73.6 million.

Balance Sheet

  • The Company had $591.4 million in cash, cash equivalents and investments at April 30, 2017, compared with $735.8 million at July 31, 2016. The decrease in cash, cash equivalents and investments was primarily due to $154.1 million cash used for the acquisition of ISCS and $33.5 million used for the acquisition of FirstBest. The Company generated $21.9 million cash from operations in the third quarter of fiscal 2017, compared with cash flow from operations of $23.6 million in the comparable period in fiscal 2016.

Business Outlook

Guidewire is issuing the following outlook for the fourth quarter and fiscal 2017, based on current expectations:

Fiscal 2017

Fiscal 2017 Revenue 165.8 – 169.8 499.0 – 503.0 License and other revenue 96.2 – 100.2 258.0 – 262.0 Maintenance revenue 17.5 – 18.5 67.5 – 68.5 Services revenue 50.6 – 52.6 172.0 – 174.0 GAAP income from operations

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Non-GAAP Financial Measures

This press release contains the following non-GAAP financial measures: Non-GAAP income from operations, Non-GAAP net income, Non-GAAP net income per share and Non-GAAP tax provision. 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 and Non-GAAP net income 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.

Sobre Guidewire

Guidewire es la plataforma en la que las compañías de seguros generales confían para comunicarse, innovar y crecer de manera efectiva. Combinamos digital, core, el análisis y la inteligencia artificial en nuestra plataforma como servicio en la nube. Más de 400 aseguradoras, desde nuevas empresas hasta las más grandes y complejas del mundo, funcionan con Guidewire.

Como socio de nuestros clientes, evolucionamos continuamente para garantizar su éxito. Estamos orgullosos de nuestro historial de implementación sin igual, con más de 1,000 proyectos completados con éxito, respaldados por el equipo de I + D más grande y el ecosistema de socios más amplio de la industria. Nuestro marketplace tiene cientos de aplicaciones que aceleran la integración, localización e innovación.

Para obtener más información, visite nuestro sitio web www.guidewire.fr. Síguenos en Twitter: @Guidewire_PandC.

Contacto de prensa

Contacto

Email: pr@guidewire.com

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