Guidewire Software Announces Third Quarter Fiscal Year 2019 Financial Results
Bill Sinn | June 04, 2019
Guidewire Software, Inc. (NYSE: GWRE), provider of the industry platform Property and Casualty (“P&C”) insurers rely upon, today announced its financial results for the fiscal quarter ended April 30, 2019.
“Total revenue and profitability were above our guidance ranges in the third quarter,” said Marcus Ryu, chief executive officer, Guidewire Software. “During the quarter we added two additional InsuranceSuite Cloud customers amidst robust demand for Guidewire Cloud overall, as new and existing customers increasingly seek Guidewire as a trusted partner to shoulder a broader role in their digital transformations. We also continue to ramp our product, operational, and delivery capacity to serve this wave of change for the $2 trillion global P&C industry.”
As of the first quarter of fiscal year 2019, Guidewire began reporting results under Accounting Standards Codification Topic 606, Revenue Recognition (“ASC 606”), using the modified retrospective method. Financial results for reporting periods prior to fiscal year 2019 are presented as previously disclosed in conformity with then existing guidance and as revised to reflect the restatement more fully described in Guidewire’s Form 10-K/A for the year ended July 31, 2018, filed on June 3, 2019.
Third Quarter Fiscal Year 2019 Financial Highlights
- Total revenue for the third quarter of fiscal year 2019 was $162.9 million, an increase of 15% from the same quarter in fiscal year 2018.
- License and subscription revenue was $76.2 million, an increase of 45%; services revenue was $65.3 million, a decrease of 8%; and maintenance revenue was $21.3 million, an increase of 14%.
- GAAP loss from operations was $15.8 million for the third quarter of fiscal year 2019, compared with a $28.9 million loss in the comparable period in fiscal year 2018.
- Non-GAAP income from operations was $12.6 million for the third quarter of fiscal year 2019, compared with $2.6 million of non-GAAP income in the comparable period in fiscal year 2018.
- GAAP net loss was $8.6 million for the third quarter of fiscal year 2019, compared with a $31.2 million loss for the comparable period in fiscal year 2018, which was adversely impacted by the effects of the provisions of the Tax and Jobs Act passed in December 2017. GAAP net loss per share was $0.11, based on diluted weighted average shares outstanding of 81.6 million, compared with a $0.40 net loss per share for the comparable period in fiscal year 2018, based on diluted weighted average shares outstanding of 78.8 million.
- Non-GAAP net income was $15.2 million for the third quarter of fiscal year 2019, compared with $4.2 million non-GAAP net income in the comparable period in fiscal year 2018. Non-GAAP net income per share was $0.18, based on diluted weighted average shares outstanding of 82.6 million, compared with $0.05 net income per share in the comparable period in fiscal year 2018, based on diluted weighted average shares outstanding of 80.4 million.
- The Company had $1.2 billion in cash, cash equivalents, and investments at April 30, 2019, compared with $1.3 billion at July 31, 2018. The Company generated $13.2 million in cash from operations during the nine months ended April 30, 2019.
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