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Guidewire Software Announces Fourth Fiscal Quarter and Fiscal Year 2018 Financial Results

Guidewire Software Announces Fourth Fiscal Quarter and Fiscal Year 2018 Financial Results

FOSTER CITY, 5 septiembre, 2018

Guidewire Software, Inc. (NYSE: GWRE), a provider of software products to Property and Casualty (“P&C”) insurers, today announced its financial results for the fourth fiscal quarter and year ended July 31, 2018.

“Driven by a record number of transactions at new and existing customers in both domestic and international markets, revenue and net income were above our guidance ranges for the fourth quarter and fiscal year 2018,” saidMarcus Ryu, chief executive officer, Guidewire Software. “As insurers strive for differentiation through automation, digital engagement, predictive analytics, and integration to insurtech partners, they increasingly seek cloud solutions that reduce IT complexity and risk. We enter fiscal 2019 well situated to continue Guidewire InsurancePlatform’s progress toward becoming the platform of choice for the $2 trillion P&C insurance industry.”

Fiscal Year 2018 Financial Highlights

Revenue

  • Total revenue for fiscal year 2018 was $661.1 million, an increase of 29% from fiscal year 2017. License and other revenue for fiscal year 2018 was $315.8 million, an increase of 16% from fiscal year 2017. Services revenue was $268.0 million, an increase of 54%, and maintenance revenue was $77.3 million, an increase of 13%.

  • Rolling four-quarter recurring revenue was $381.3 million for the period ended July 31, 2018, an increase of 17% compared to the same metric for the period ended July 31, 2017. With our transition to more subscription-based contracts and our upcoming adoption of the new revenue standard, this metric becomes less indicative of our revenue trends and will not be disclosed in future quarters.

Profitability

  • GAAP loss from operations was $7.3 million for fiscal year 2018, compared with income of $26.6 million in fiscal year 2017.

  • Non-GAAP income from operations was $109.7 million for fiscal year 2018, compared with $110.5 million for fiscal year 2017.

  • GAAP net loss was $19.7 million for fiscal year 2018, compared with net income of $21.2 million for fiscal year 2017. GAAP net loss per share was $0.25 for fiscal year 2018, based on diluted weighted average shares outstanding of 77.7 million, compared to $0.28 net income per share for fiscal year 2017, based on diluted weighted average shares outstanding of 75.3 million.

  • Non-GAAP net income was $90.9 million for fiscal year 2018, compared to $78.8 million for fiscal year 2017. Non-GAAP net income per share was $1.14 for fiscal year 2018, based on diluted weighted average shares outstanding of 77.7 million, compared to $1.05 for fiscal year 2017, based on diluted weighted average shares outstanding of 75.3 million.

Fourth Fiscal Quarter 2018 Financial Highlights

Revenue

  • Total revenue for the fourth quarter of fiscal year 2018 was $248.6 million, an increase of 37% from the same quarter in fiscal year 2017. License and other revenue was $151.1 million, an increase of 38%; services revenue was $77.0 million, an increase of 46%; and maintenance revenue was $20.5 million, an increase of 10%.

Profitability

  • GAAP income from operations was $55.2 million for the fourth quarter of fiscal year 2018, compared with $41.0 million in the comparable period in fiscal year 2017.

  • Non-GAAP income from operations was $83.7 million for the fourth quarter of fiscal year 2018, compared with $64.0 million in the comparable period in fiscal year 2017.

  • GAAP net income was $83.4 million for the fourth quarter of fiscal year 2018, compared with $26.9 million for the comparable period in fiscal year 2017. GAAP net income per share was $1.02, based on diluted weighted average shares outstanding of 82.2 million, compared with $0.36 for the comparable period in fiscal year 2017, based on diluted weighted average shares outstanding of 75.8 million.

  • Non-GAAP net income was $66.3 million for the fourth quarter of fiscal year 2018, compared with $44.8 million in the comparable period in fiscal year 2017. Non-GAAP net income per share was $0.81, based on diluted weighted average shares outstanding of 82.2 million, compared with $0.59 in the comparable period in fiscal year 2017, based on diluted weighted average shares outstanding of 75.8 million.

Liquidity

  • The Company had $1.3 billion in cash, cash equivalents and investments at July 31, 2018, compared with $687.8 million at July 31, 2017. The increase was primarily due to total net proceeds of $608.2 million related to the public offering of our common stock and convertible notes and $140.5 million in cash generated from operations, partially offset by the use of $130.1 million of cash in connection with our acquisition of Cyence.

Business Outlook

Guidewire is issuing the following outlook for the first fiscal quarter and fiscal year 2019 based on current expectations:

2019

What:

Non-GAAP Financial Measures

This press release contains the following non-GAAP financial measures: Non-GAAP operating income (loss), Non-GAAP net income (loss), Non-GAAP income tax provision (benefit), and Non-GAAP net income (loss) per share. Non-GAAP operating income (loss) excludes stock-based compensation and amortization of intangibles. Non-GAAP net income (loss), Non-GAAP income tax provision (benefit), and Non-GAAP net income (loss) per share also exclude the amortization of debt discount and issuance costs from our convertible notes and the related tax effects of the non-GAAP adjustments. The estimated annual tax rates used in the business outlook to compute GAAP and Non-GAAP net income exclude discrete items such as forecasted tax benefits related to stock-based compensation and are impacted by the passage of the Tax Cuts and Jobs Act.

Guidewire believes that these non-GAAP financial measures 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 the financial tables at the end of this press release, and not to rely on any single financial measure to evaluate the Company’s business.

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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