FOSTER CITY, Calif.–(BUSINESS WIRE)–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
Revenue
-
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%.
Profitability
-
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.
Liquidity
-
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.
Business Outlook
Guidewire is issuing the following outlook for the fourth fiscal quarter
and fiscal year of 2019 based on current expectations:
| (in $ millions, except per share outlook) |
Fourth Quarter |
Fiscal Year 2019 | ||||||||||
| Revenue | 199.0 | – | 207.0 | 711.0 | – | 719.0 | ||||||
| License and subscription revenue | 121.4 | – | 129.4 | 379.0 | – | 387.0 | ||||||
| Maintenance revenue | 20.4 | – | 21.4 | 84.0 | – | 85.0 | ||||||
| Services revenue | 53.6 | – | 59.6 | 244.0 | – | 250.0 | ||||||
| GAAP operating income (loss) | 11.3 | – | 17.3 | (8.1) | – | (2.1) | ||||||
| Non-GAAP operating income | 41.0 | – | 47.0 | 112.0 | – | 118.0 | ||||||
| GAAP net income | 13.1 | – | 18.7 | 11.0 | – | 16.6 | ||||||
| GAAP net income per share | 0.16 | – | 0.23 | 0.13 | – | 0.20 | ||||||
| Non-GAAP net income | 38.8 | – | 43.8 | 112.2 | – | 117.2 | ||||||
| Non-GAAP net income per share | 0.47 | – | 0.53 | 1.36 | – | 1.42 | ||||||
Conference Call Information
| What: |
Guidewire Software Third Quarter Fiscal Year 2019 Financial Results Conference Call |
|
| When: | Tuesday, June 4, 2019 | |
| Time: | 2:00 p.m. PT (5:00 p.m. ET) | |
| Live Call: | (800) 239-9838, Domestic | |
| (323) 794-2551, International | ||
| Replay: | (844) 512-2921, Passcode 6008687, Domestic | |
| (412) 317-6671, Passcode 6008687, International | ||
| Webcast: |
http://ir.guidewire.com/ |
The webcast will be archived on Guidewire’s website (www.guidewire.com)
for a period of three months.
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.
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.
About Guidewire Software
Guidewire delivers the industry platform that P&C insurers rely upon to
adapt and succeed in a time of accelerating change. We provide the
software, services, and partner ecosystem to enable our customers to
run, differentiate, and grow their business. We are privileged to serve
more than 350 companies in 40 countries. For more information, please
visit www.guidewire.com
and follow us on twitter: @Guidewire_PandC.
NOTE: For information about Guidewire’s trademarks, visit https://www.guidewire.com/legal-notices.
Cautionary Language Concerning Forward-Looking Statements
This press release contains “forward-looking statements” within the
meaning of the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995, including but not limited to, statements
regarding our financial outlook, market positioning, business momentum
and demand for Guidewire Cloud. These forward-looking statements are
made as of the date they were first issued and were based on current
expectations, estimates, forecasts and projections as well as the
beliefs and assumptions of management. Words such as “expect,”
“anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,”
“estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,”
“intend,” variations of these terms or the negative of these terms and
similar expressions are intended to identify these forward-looking
statements. Forward-looking statements are subject to a number of risks
and uncertainties, many of which involve factors or circumstances that
are beyond Guidewire’s control. Guidewire’s actual results could differ
materially from those stated or implied in forward-looking statements
due to a number of factors, including but not limited to, risks detailed
in Guidewire’s most recent Forms 10-K, 10-K/A and 10-Q filed with the
Securities and Exchange Commission as well as other documents that may
be filed by the Company from time to time with the Securities and
Exchange Commission. In particular, the following factors, among others,
could cause results to differ materially from those expressed or implied
by such forward-looking statements: quarterly and annual operating
results may fluctuate more than expected; seasonal and other variations
related to our revenue recognition may cause significant fluctuations in
our results of operations and cash flows; our reliance on sales to and
renewals from a relatively small number of large customers for a
substantial portion of our revenue; our ability to successfully manage
any changes to our business model, including the transition of our
products to cloud offerings; our services revenue produces lower gross
margins than our license and maintenance revenue; assertions by third
parties that we violate their intellectual property rights could
substantially harm our business; we face intense competition in our
market; our products or cloud-based services may experience data
security breaches; changes in accounting guidance on revenue
recognition, such as contained in ASC 606, have and may cause us to
experience greater volatility in our quarterly and annual results; our
ability to remediate our material weakness that arose in connection with
the restatement of our financial statements for the years ended July 31,
2018 and 2017; weakened global economic conditions may adversely affect
the P&C insurance industry including the rate of information technology
spending; our product development and sales cycles are lengthy; the risk
of losing key employees; changes in foreign exchange rates; general
political or destabilizing events, including war, conflict or acts of
terrorism; and other risks and uncertainties. Past performance is not
necessarily indicative of future results. The forward-looking statements
included in this press release represent Guidewire’s views as of the
date of this press release. The Company anticipates that subsequent
events and developments will cause its views to change. Guidewire
undertakes no intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. These forward-looking statements should not
be relied upon as representing Guidewire’s views as of any date
subsequent to the date of this press release.
| GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (unaudited, in thousands) | ||||||||
|
April 30, 2019 |
July 31, 2018
As Restated |
|||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 368,869 | $ | 437,140 | ||||
| Short-term investments | 636,333 | 630,008 | ||||||
| Accounts receivable, net | 108,844 | 124,849 | ||||||
| Unbilled accounts receivable, net | 59,710 | — | ||||||
| Prepaid expenses and other current assets | 35,479 | 30,464 | ||||||
| Total current assets | 1,209,235 | 1,222,461 | ||||||
| Long-term investments | 242,994 | 190,952 | ||||||
| Unbilled accounts receivable, net | 12,910 | — | ||||||
| Property and equipment, net | 55,375 | 18,595 | ||||||
| Intangible assets, net | 73,759 | 95,654 | ||||||
| Goodwill | 340,877 | 340,877 | ||||||
| Deferred tax assets, net | 88,345 | 90,369 | ||||||
| Other assets | 35,204 | 22,525 | ||||||
| TOTAL ASSETS | $ | 2,058,699 | $ | 1,981,433 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 33,058 | $ | 30,635 | ||||
| Accrued employee compensation | 54,459 | 60,135 | ||||||
| Deferred revenue, net | 90,651 | 127,107 | ||||||
| Other current liabilities | 11,236 | 20,280 | ||||||
| Total current liabilities | 189,404 | 238,157 | ||||||
| Convertible senior notes, net | 314,210 | 305,128 | ||||||
| Deferred revenue, net | 21,169 | 23,758 | ||||||
| Other liabilities | 7,915 | 774 | ||||||
| Total liabilities | 532,698 | 567,817 | ||||||
| STOCKHOLDERS’ EQUITY: | ||||||||
| Common stock | 8 | 8 | ||||||
| Additional paid-in capital | 1,366,899 | 1,296,380 | ||||||
| Accumulated other comprehensive loss | (7,944 | ) | (7,748 | ) | ||||
| Retained earnings | 167,038 | 124,976 | ||||||
| Total stockholders’ equity | 1,526,001 | 1,413,616 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 2,058,699 | $ | 1,981,433 | ||||
| GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (unaudited, in thousands except share and per share data) | ||||||||||||||||
| Three Months Ended April 30, | Nine Months Ended April 30, | |||||||||||||||
| 2019 |
2018
As Revised |
2019 |
2018
As Revised |
|||||||||||||
| Revenue: | ||||||||||||||||
| License and subscription | $ | 76,218 | $ | 52,392 | $ | 257,611 | $ | 165,310 | ||||||||
| Maintenance | 21,335 | 18,749 | 63,602 | 56,789 | ||||||||||||
| Services | 65,314 | 71,008 | 190,443 | 190,490 | ||||||||||||
| Total revenue | 162,867 | 142,149 | 511,656 | 412,589 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| License and subscription | 15,781 | 9,742 | 43,850 | 25,497 | ||||||||||||
| Maintenance | 3,924 | 3,828 | 11,746 | 10,888 | ||||||||||||
| Services | 60,573 | 62,111 | 185,970 | 169,918 | ||||||||||||
| Total cost of revenue | 80,278 | 75,681 | 241,566 | 206,303 | ||||||||||||
| Gross profit: | ||||||||||||||||
| License and subscription | 60,437 | 42,650 | 213,761 | 139,813 | ||||||||||||
| Maintenance | 17,411 | 14,921 | 51,856 | 45,901 | ||||||||||||
| Services | 4,741 | 8,897 | 4,473 | 20,572 | ||||||||||||
| Total gross profit | 82,589 | 66,468 | 270,090 | 206,286 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 47,102 | 46,787 | 139,069 | 126,155 | ||||||||||||
| Sales and marketing | 33,301 | 30,378 | 96,793 | 85,949 | ||||||||||||
| General and administrative | 17,953 | 18,170 | 53,839 | 57,907 | ||||||||||||
| Total operating expenses | 98,356 | 95,335 | 289,701 | 270,011 | ||||||||||||
| Loss from operations | (15,767 | ) | (28,867 | ) | (19,611 | ) | (63,725 | ) | ||||||||
| Interest income | 7,748 | 3,762 | 22,152 | 7,247 | ||||||||||||
| Interest expense | (4,327 | ) | (2,228 | ) | (12,858 | ) | (2,239 | ) | ||||||||
| Other income (expense), net | (617 | ) | (356 | ) | (958 | ) | 1,040 | |||||||||
| Loss before income taxes | (12,963 | ) | (27,689 | ) | (11,275 | ) | (57,677 | ) | ||||||||
| Provision for (benefit from) income taxes | (4,382 | ) | 3,461 | (9,002 | ) | 27,843 | ||||||||||
| Net loss | $ | (8,581 | ) | $ | (31,150 | ) | $ | (2,273 | ) | $ | (85,520 | ) | ||||
| Net loss per share: | ||||||||||||||||
| Basic | $ | (0.11 | ) | $ | (0.40 | ) | $ | (0.03 | ) | $ | (1.09 | ) | ||||
| Diluted | $ | (0.11 | ) | $ | (0.40 | ) | $ | (0.03 | ) | $ | (1.09 | ) | ||||
| Shares used in computing net loss per share: | ||||||||||||||||
| Basic | 81,606,088 | 78,777,484 | 81,252,993 | 78,246,146 | ||||||||||||
| Diluted | 81,606,088 | 78,777,484 | 81,252,993 | 78,246,146 | ||||||||||||
Amounts include stock-based compensation expense as follows:
| Three Months Ended April 30, | Nine Months Ended April 30, | ||||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||
| (unaudited, in thousands) | |||||||||||||||
| Stock-based compensation expense: | |||||||||||||||
| Cost of license and subscription revenue | $ | 589 | $ | 274 | $ | 1,458 | $ | 706 | |||||||
| Cost of maintenance revenue | 273 | 462 | 1,365 | 1,398 | |||||||||||
| Cost of services revenue | 5,720 | 5,310 | 17,879 | 15,982 | |||||||||||
| Research and development | 4,919 | 7,236 | 17,763 | 19,845 | |||||||||||
| Sales and marketing | 4,732 | 4,527 | 14,427 | 13,768 | |||||||||||
| General and administrative | 4,817 | 6,030 | 15,844 | 16,795 | |||||||||||
| Total stock-based compensation expense | $ | 21,050 | $ | 23,839 | $ | 68,736 | $ | 68,494 | |||||||
| GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||
| (unaudited, in thousands) | ||||||||||||||||
| Three Months Ended April 30, | Nine Months Ended April 30, | |||||||||||||||
| 2019 |
2018
As Revised |
2019 |
2018
As Revised |
|||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||
| Net loss | $ | (8,581 | ) | $ | (31,150 | ) | $ | (2,273 | ) | $ | (85,520 | ) | ||||
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
||||||||||||||||
| Depreciation and amortization | 9,698 | 9,802 | 29,140 | 26,117 | ||||||||||||
| Amortization of debt discount and issuance costs | 3,069 | 1,568 | 9,082 | 1,568 | ||||||||||||
| Stock-based compensation | 21,050 | 23,839 | 68,736 | 68,494 | ||||||||||||
| Charges to bad debt and revenue reserves | 127 | — | 479 | — | ||||||||||||
| Deferred income tax | (5,074 | ) | 1,982 | (11,836 | ) | 24,692 | ||||||||||
|
Amortization of premium (accretion of discount) on available-for-sale securities |
(1,880 | ) | (395 | ) | (5,696 | ) | (34 | ) | ||||||||
| Other non-cash items affecting net income (loss) | — | — | 515 | — | ||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||||
| Accounts receivable | 10,355 | (464 | ) | 14,769 | (16,809 | ) | ||||||||||
| Unbilled accounts receivable | (13,668 | ) | — | (43,858 | ) | — | ||||||||||
| Prepaid expenses and other assets | (4,945 | ) | 1,027 | (5,812 | ) | (2,153 | ) | |||||||||
| Accounts payable | 3,339 | (265 | ) | (11,136 | ) | 4,569 | ||||||||||
| Accrued employee compensation | 10,197 | 10,310 | (5,065 | ) | (7,237 | ) | ||||||||||
| Other liabilities | 4,676 | 1,582 | 5,787 | 2,386 | ||||||||||||
| Deferred revenue | (2,149 | ) | 2,333 | (29,639 | ) | 20,542 | ||||||||||
| Net cash provided by operating activities | 26,214 | 20,169 | 13,193 | 36,615 | ||||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||
| Purchases of available-for-sale securities | (315,109 | ) | (424,490 | ) | (778,011 | ) | (535,310 | ) | ||||||||
| Sales and maturities of available-for-sale securities | 316,519 | 106,370 | 727,102 | 276,686 | ||||||||||||
| Purchases of property and equipment | (17,740 | ) | (90 | ) | (28,746 | ) | (4,710 | ) | ||||||||
| Capitalized software development costs | (1,140 | ) | (1,081 | ) | (2,243 | ) | (1,850 | ) | ||||||||
| Acquisitions of business, net of acquired cash | — | 318 | — | (130,058 | ) | |||||||||||
| Net cash used in investing activities | (17,470 | ) | (318,973 | ) | (81,898 | ) | (395,242 | ) | ||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||
|
Proceeds from issuance of convertible senior notes, net of issuance costs |
— | 387,239 | — | 387,239 | ||||||||||||
| Proceeds from issuance of common stock, net of issuance costs | — | 220,948 | — | 220,948 | ||||||||||||
| Purchase of capped calls | — | (37,200 | ) | — | (37,200 | ) | ||||||||||
| Proceeds from issuance of common stock upon exercise of stock options | 748 | 328 | 1,851 | 1,055 | ||||||||||||
| Net cash provided by financing activities | 748 | 571,315 | 1,851 | 572,042 | ||||||||||||
| Effect of foreign exchange rate changes on cash and cash equivalents | (792 | ) | (1,697 | ) | (1,417 | ) | (490 | ) | ||||||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 8,700 | 270,814 | (68,271 | ) | 212,925 | |||||||||||
| CASH AND CASH EQUIVALENTS—Beginning of period | 360,169 | 205,287 | 437,140 | 263,176 | ||||||||||||
| CASH AND CASH EQUIVALENTS—End of period | $ | 368,869 | $ | 476,101 | $ | 368,869 | $ | 476,101 | ||||||||
| GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES | ||||||||||||||||
| Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||||||||||
| (unaudited, in thousands except share and per share data) | ||||||||||||||||
|
The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP financial measures for the periods indicated below: |
||||||||||||||||
| Three Months Ended April 30, | Nine Months Ended April 30, | |||||||||||||||
| 2019 |
2018
As Revised |
2019 |
2018
As Revised |
|||||||||||||
| Income (loss) from operations reconciliation: | ||||||||||||||||
| GAAP income (loss) from operations | $ | (15,767 | ) | $ | (28,867 | ) | $ | (19,611 | ) | $ | (63,725 | ) | ||||
| Non-GAAP adjustments: | ||||||||||||||||
| Stock-based compensation (1) | 21,050 | 23,839 | 68,736 | 68,494 | ||||||||||||
| Amortization of intangibles (1) | 7,278 | 7,669 | 21,896 | 20,114 | ||||||||||||
| Non-GAAP income (loss) from operations | $ | 12,561 | $ | 2,641 | $ | 71,021 | $ | 24,883 | ||||||||
| Net income (loss) reconciliation: | ||||||||||||||||
| GAAP net income (loss) | $ | (8,581 | ) | $ | (31,150 | ) | $ | (2,273 | ) | $ | (85,520 | ) | ||||
| Non-GAAP adjustments: | ||||||||||||||||
| Stock-based compensation (1) | 21,050 | 23,839 | 68,736 | 68,494 | ||||||||||||
| Amortization of intangibles (1) | 7,278 | 7,669 | 21,896 | 20,114 | ||||||||||||
| Amortization of debt discount and issuance costs (2) | 3,070 | 1,568 | 9,126 | 1,568 | ||||||||||||
| Tax impact of non-GAAP adjustments (3) | (7,586 | ) | 2,228 | (23,860 | ) | 19,142 | ||||||||||
| Non-GAAP net income (loss) | $ | 15,231 | $ | 4,154 | $ | 73,625 | $ | 23,798 | ||||||||
| Tax provision (benefit) reconciliation: | ||||||||||||||||
| GAAP tax provision (benefit) | $ | (4,382 | ) | $ | 3,461 | $ | (9,002 | ) | $ | 27,843 | ||||||
| Non-GAAP adjustments: | ||||||||||||||||
| Stock-based compensation (1) | 3,676 | 6,808 | 11,578 | 20,189 | ||||||||||||
| Amortization of intangibles (1) | 1,271 | 2,190 | 3,694 | 5,884 | ||||||||||||
| Amortization of debt discount and issuance costs (2) | 536 | 448 | 1,540 | 448 | ||||||||||||
| Other income tax effects and adjustments (3) | 2,103 | (11,674 | ) | 7,048 | (45,663 | ) | ||||||||||
| Non-GAAP tax provision (benefit) | $ | 3,204 | $ | 1,233 | $ | 14,858 | $ | 8,701 | ||||||||
| Net income (loss) per share reconciliation: | ||||||||||||||||
| GAAP net income (loss) per share – diluted | $ | (0.11 | ) | $ | (0.40 | ) | $ | (0.03 | ) | $ | (1.09 | ) | ||||
| Non-GAAP adjustments: | ||||||||||||||||
|
Amortization of intangibles (1) |
0.09 | 0.10 | 0.27 | 0.26 | ||||||||||||
| Stock-based compensation (1) | 0.26 | 0.30 | 0.84 | 0.89 | ||||||||||||
| Amortization of debt discount and issuance costs (2) | 0.04 | 0.02 | 0.12 | 0.02 | ||||||||||||
| Tax impact of non-GAAP adjustments (3) | (0.09 | ) | 0.02 | (0.30 | ) | 0.22 | ||||||||||
|
Non-GAAP dilutive shares excluded from GAAP net loss per share calculation (4) |
(0.01 | ) | 0.01 | (0.01 | ) | 0.02 | ||||||||||
| Non-GAAP net income (loss) per share – diluted | $ | 0.18 | $ | 0.05 | $ | 0.89 | $ | 0.32 | ||||||||
| Shares used in computing Non-GAAP income (loss) per share amounts: | ||||||||||||||||
| GAAP weighted average shares – diluted | 81,606,088 | 78,777,484 | 81,252,993 | 78,246,146 | ||||||||||||
|
Non-GAAP dilutive shares excluded from GAAP loss per share calculation (4) |
1,031,086 | 1,581,552 | 1,245,769 | 1,561,424 | ||||||||||||
| Pro forma weighted average shares – diluted | 82,637,174 | 80,359,036 | 82,498,762 | 79,807,570 | ||||||||||||
(1) Adjustments relate to amortization of acquired intangibles and
stock-based compensation recognized during the period for GAAP purposes.
(2)
Adjustments reflect the amortization of debt discount and issuance costs
related to the issuance of our Senior Convertible Notes recognized
during the period for GAAP purposes.
(3) Adjustments reflect the
tax benefit (provision) resulting from all non-GAAP adjustments.
(4)
Due to the occurrence of a net loss on a GAAP basis, potentially
dilutive securities were excluded from the calculation of GAAP earnings
per share, as they would have an anti-dilutive effect. However, as net
income was earned on a non-GAAP basis, these shares have a dilutive
effect on a non-GAAP earnings per share and are included here.
| GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES | ||||||||
| Reconciliation of GAAP to Non-GAAP Outlook | ||||||||
|
The following tables reconcile the specific items excluded from GAAP outlook in the calculation of non-GAAP outlook for the periods indicated below: |
||||||||
| (in $ millions) |
Fourth Quarter |
Fiscal Year 2019 | ||||||
| Operating income (loss) outlook reconciliation: | ||||||||
| GAAP operating income (loss) | 11.3 | – | 17.3 | (8.1) | – | (2.1) | ||
| Non-GAAP adjustments: | ||||||||
| Stock-based compensation | 22.0 | – | 23.0 | 89.5 | – | 92.5 | ||
| Amortization of intangibles | 7.0 | – | 7.5 | 28.6 | – | 29.6 | ||
| Non-GAAP operating income | 41.0 | – | 47.0 | 112.0 | – | 118.0 | ||
| Net income (loss) outlook reconciliation | ||||||||
| GAAP net income | 13.1 | – | 18.7 | 11.0 | – | 16.6 | ||
| Non-GAAP adjustments: | ||||||||
| Stock-based compensation | 22.0 | – | 23.0 | 89.5 | – | 92.5 | ||
| Amortization of intangibles | 7.0 | – | 7.5 | 28.6 | – | 29.6 | ||
| Amortization of debt discount and issuance costs | 3.1 | – | 3.1 | 12.2 | – | 12.2 | ||
| Tax impact of non-GAAP adjustments | (7.1) | – | (7.8) | (31.1) | – | (31.8) | ||
| Non-GAAP net income | 38.8 | – | 43.8 | 112.2 | – | 117.2 | ||
Contacts
Media Contact:
Diana Stott
Guidewire Software, Inc.
(650)
356-4941
[email protected]
Investor Contact:
Garo Toomajanian
ICR, LLC
(650)
357-5282
[email protected]
