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Guidewire Software Announces Fourth Quarter and Fiscal Year 2020 Financial Results

Guidewire Software Announces Fourth Quarter and Fiscal Year 2020 Financial Results

SAN MATEO, 2 septiembre, 2020

Guidewire Software, Inc. (NYSE: GWRE), provider of the platform Property and Casualty (“P&C”) insurers trust to engage, innovate, and grow efficiently, today announced its financial results for the fourth fiscal quarter and fiscal year ended July 31, 2020.

“We had a strong fourth quarter, adding 10 InsuranceSuite Cloud customers and growing subscription revenue for the year by 84%,” saidMike Rosenbaum, chief executive officer, Guidewire Software. “Additionally, we launched Aspen, our first cloud-optimized release of InsuranceSuite, taking a major leap forward in our mission to provide the cloud platform that enables P&C insurers around the world to engage, innovate and grow efficiently.”

Fiscal Year 2020 Financial Highlights

Revenue

  • Total revenue for fiscal year 2020 was $742.3 million, an increase of 3% from fiscal year 2019. Subscription and support revenue was $203.5 million, an increase of 35%; license revenue was $331.5 million, an increase of 4%; services revenue was $207.3 million, a decrease of 17%.

  • Annual recurring revenue, or ARR, was $514 million as of July 31, 2020, up from $460 million as of July 31, 2019, an increase of 12%, or 11% on a constant currency basis. We measure ARR on a constant currency basis during the fiscal year and revalue ARR at year end to current currency rates. Currency rate changes between the end of fiscal year 2019 and the end of fiscal year 2020 have resulted in a $5 million dollar benefit to ARR.

Profitability

  • GAAP loss from operations was $23.9 million for fiscal year 2020, compared to income of $1.5 million for fiscal year 2019.

  • Non-GAAP income from operations was $104.8 million for fiscal year 2020, compared to $122.1 million for fiscal year 2019.

  • GAAP net loss was $27.2 million for fiscal year 2020, compared to income of $20.7 million for fiscal year 2019. GAAP net loss per share was $0.33, based on diluted weighted average shares outstanding of 82.9 million, compared to net income per share of $0.25 for fiscal year 2019, based on diluted weighted average shares outstanding of 82.7 million.

  • Non-GAAP net income was $105.8 million for fiscal year 2020, compared to $119.9 million for fiscal year 2019. Non-GAAP net income per share was $1.26, based on diluted weighted average shares outstanding of 83.7 million, compared to $1.45 for fiscal year 2019, based on diluted weighted average shares outstanding of 82.7 million.

Liquidity

  • The Company had $1.4 billion in cash, cash equivalents, and investments at July 31, 2020, compared to $1.3 billion at July 31, 2019. The Company generated $113.1 million in cash from operations and had positive free cash flow of $87.4 million during fiscal year 2020.

Fourth Quarter Fiscal Year 2020 Financial Highlights

Revenue

  • Total revenue for the fourth quarter of fiscal year 2020 was $243.7 million, an increase of 17% from the same quarter in fiscal year 2019. Subscription and support revenue was $54.1 million, an increase of 29%; license revenue was $137.5 million, an increase of 28%; services revenue was $52.0 million, a decrease of 11%.

Profitability

  • GAAP income from operations was $44.3 million for the fourth quarter of fiscal year 2020, compared to $21.1 million for the same quarter in fiscal year 2019.

  • Non-GAAP income from operations was $76.4 million for the fourth quarter of fiscal year 2020, compared to $51.1 million for the same quarter in fiscal year 2019.

  • GAAP net income was $38.8 million for the fourth quarter of fiscal year 2020, compared to $23.0 million for the same quarter in fiscal year 2019. GAAP net income per share was $0.46, based on diluted weighted average shares outstanding of 83.9 million, compared to $0.28 for the same quarter in fiscal year 2019, based on diluted weighted average shares outstanding of 82.9 million.

  • Non-GAAP net income was $69.5 million for the fourth quarter of fiscal year 2020, compared to $46.3 million for the same quarter in fiscal year 2019. Non-GAAP net income per share was $0.83, based on diluted weighted average shares outstanding of 83.9 million, compared to $0.56 for the same quarter in fiscal year 2019, based on diluted weighted average shares outstanding of 82.9 million.

Business Outlook

Guidewire is issuing the following outlook for the first quarter of fiscal year 2021 based on current expectations:

  • ARR between $509 million and $512 million

  • Total revenue between $162 million and $166 million

  • Operating loss between $44 million and $40 million

  • Non-GAAP operating loss between $10 million and $6 million

Guidewire is issuing the following outlook for the fiscal year 2021 based on current expectations:

  • ARR between $560 million and $571 million

  • Total revenue between $723 million and $733 million

  • Operating loss between $155 million and $145 million

  • Non-GAAP operating (loss) income between $(5) million and $5 million

  • Operating cash flow between $60 million and $70 million

Conference Call Information

What:

When:

Time:

Live Call:

Replay:

Webcast:

The webcast will be archived on Guidewire’s website (www.guidewire.com) for a period of three months.

Non-GAAP Financial Measures and Other Metrics

This press release contains the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP income tax provision (benefit), non-GAAP net income (loss) per share, and free cash flow. Non-GAAP gross profit and non-GAAP income (loss) from operations exclude 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, changes in fair value of our strategic investments, and the related tax effects of the non-GAAP adjustments. Free cash flow consists of net cash flow provided by (used in) operating activities less cash used for purchases of property and equipment and capitalized software development costs. These Non-GAAP measures enable us to analyze our financial performance without the effects of certain non-cash items such as depreciation, amortization, stock-based compensation, and changes in fair value of strategic investments.

Annual recurring revenue ("ARR") is used to identify the annualized recurring value of active customer contracts at the end of a reporting period. ARR includes the annualized recurring value of term licenses, subscription agreements, support contracts, and hosting agreements based on customer contracts, which may not be the same as the timing and amount of revenue recognized. All components of the licensing and other arrangements that are not expected to recur (primarily perpetual licenses and services) are excluded.

Guidewire believes that these non-GAAP financial measures and other metrics 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 and other metrics 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 and other metrics 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 and other metrics 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.

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Email: pr@guidewire.com

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