Guidewire Software Releases 3rd Qtr. FY 2014 Financial Results

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Guidewire Software reported its financial results for the fiscal quarter ended April 30.

"Our third quarter results exceeded our expectations for both revenue and profitability," said Marcus Ryu, chief executive officer, Guidewire Software. "New customer wins, expansions of existing relationships, and several major implementation go-lives all represented progress in our mission to be the global Property/ Casualty insurance industry's premier technology partner in the replacement of its obsolete legacy core systems."

Ryu continued, "We also continue to advance our product development in significant new initiatives launched over the last year. We see significant opportunity in strategic areas including portals, data management, and analytics, as we further build on the success of our proven core operating platform, Guidewire InsuranceSuite, in the marketplace."

In its release, the Company noted that third quarter fiscal 2014 financial highlights:

Revenue

-Total revenue for the third quarter of fiscal 2014 was $82.0 million, an increase of 20 percent from the comparable period in fiscal 2013. Year to date revenue for fiscal 2014 was $232.0 million, an increase of 14 percent from the comparable period in fiscal 2013.

-Total license revenue, including term and perpetual licenses, for the third quarter of fiscal 2014 was $31.9 million, an increase of 39 percent from the comparable period in fiscal 2013. Term license revenue was $28.2 million, a 58 percent increase from a year ago. Revenue from perpetual licenses was $3.7 million compared with $5.0 million a year ago. Maintenance revenue was $10.4 million, up 15 percent from the comparable period in fiscal 2013, and services revenue was $39.7 million, up 10 percent from the comparable period in fiscal 2013.

-Total license revenue, including term and perpetual licenses, for the nine month period of fiscal 2014 was $86.0 million, an increase of 15 percent from the comparable period in fiscal 2013. Term license revenue was $80.6 million, a 19 percent increase from a year ago. Revenue from perpetual licenses was $5.4 million compared with $6.5 million a year ago. Maintenance revenue was $30.0 million, up 8 percent from the comparable period in fiscal 2013, and services revenue was $116.1 million, up 14 percent from the comparable period in fiscal 2013.

-Rolling four-quarter recurring term license and maintenance revenue was $165.3 million, an increase of 26.3 percent from the comparable period in fiscal 2013.

Profitability

-GAAP operating loss was $3.4 million for the third quarter of fiscal 2014, compared to $4.4 million GAAP operating loss in the comparable period in fiscal 2013.

-Non-GAAP operating income was $10.9 million for the third quarter of fiscal 2014, compared to $3.9 million non-GAAP operating income in the comparable period in fiscal 2013.

-GAAP net loss was $1.4 million for the third quarter of fiscal 2014, compared to $2.7 million GAAP net loss for the comparable period in fiscal 2013. GAAP net loss per share was $0.02, based on basic and diluted weighted average shares outstanding of 68.3 million, compared to GAAP net loss per share of $0.05 for the comparable period in fiscal 2013, based on basic and diluted weighted average shares outstanding of 57.0 million.

-Non-GAAP net income was $7.6 million for the third quarter of fiscal 2014, compared to $2.0 million non-GAAP net income in the comparable period in fiscal 2013. Non-GAAP net income per diluted share was $0.11, based on diluted weighted average shares outstanding of 71.9 million, compared to $0.03 non-GAAP net income per diluted share for the third quarter of fiscal 2013, based on diluted weighted average shares outstanding of 62.2 million.

Balance Sheet

-The Company had $600.1 million in cash, cash equivalents and investments at April 30, compared to $588.4 million at January 31. The Company had $20.3 million in cash flow from operations in the third quarter, compared to cash flow from operations of $5.0 million in the comparable period in fiscal 2013.

Guidewire builds software products that help Property/Casualty insurers replace their legacy core systems.

More information and complete details:

www.guidewire.com

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