Research Desk Line-up: Descartes Systems Post Earnings Coverage
LONDON, UK / ACCESSWIRE / September 26, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Guidewire Software, Inc. (NYSE: GWRE), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=GWRE, following the Company's announcement of its fourth quarter and fiscal 2017 financial results on September 06, 2017. The provider of software products for property and casualty (P&C) insurers' outperformed top- and bottom-line expectations and provided guidance for the upcoming quarter and fiscal year. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
Get more of our free earnings reports coverage from other constituents of the Business Software & Services industry. Pro-TD has currently selected The Descartes Systems Group Inc. (NASDAQ: DSGX) for due-diligence and potential coverage as the Company announced on September 06, 2017, its financial results for Q2 FY18 which ended on July 31, 2017. Register for a free membership today, and be among the early birds that get access to our report on Descartes Systems when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on GWRE; also brushing on DSGX. With the links below you can directly download the report of your stock of interest free of charge at:
For the fiscal fourth quarter ended July 31, 2017, Guidewire's revenue surged 28% to $181.1 million compared to revenue of $141.18 million for Q4 FY16. The Company's revenue beat analysts' expectations of $168.7 million. Guidewire's revenue for FY17 totaled $514.28 million versus $424.45 million in FY16.
During Q4 FY17, Guidewire's GAAP income from operations was $41.0 million compared to $23.5 million in Q4 FY16. The Company's non-GAAP income from operations was $64.0 million for the reported quarter compared to $42.7 million in the year-ago corresponding period.
Guidewire's GAAP net income was $26.9 million, or $0.36 per share, for Q4 FY17 compared to net income of $16.1 million, or $0.22 per diluted share, in Q4 FY16. The Company's non-GAAP net income for the reported quarter totaled $0.59 per diluted share, based on diluted weighted average shares outstanding of 75.8 million, compared to $0.39 earnings per diluted share in the year-ago same period, based on diluted weighted average shares outstanding of 74.2 million. Guidewire's earnings beat Wall Street's estimates of $0.39 per share.
For FY17, Guidewire's GAAP net income was $21.2 million, or $0.28 per diluted share, compared to net income of $15.0 million, or $0.20 earnings per diluted share, for the fiscal year 2016. The Company's non-GAAP earnings per diluted share were $1.05 for FY17 compared to $0.84 earnings per diluted share for FY16.
Guidewire's License and Other revenue totaled $109.7 million for Q4 FY17, up 24% on a y-o-y basis. The Company's Maintenance revenue grew 10% to $18.7 million, while services revenue surged 47% to $52.7 million. The notable y-o-y increase in services revenue was due primarily to higher-than-forecasted utilization levels, the addition of approximately $9.4 million of hosting and services revenue related to InsuranceNow customers, which had contracted with ISCS prior to Guidewire's acquisition of the Company.
Geographically, the US represented 60% and 59% of Guidewire's revenue for Q4 FY17 and FY17, respectively, compared to 55% and 54% in Q4 FY16 and FY 2016, respectively.
As of July 31, 2017, Guidewire had $687.8 million in cash, cash equivalents, and investments compared to $735.8 million at July 31, 2016. The decrease in cash, cash equivalents and investments was primarily due to $154.1 million cash used for the acquisition of ISCS and $33.5 million used for the acquisition of FirstBest.
Guidewire generated $137.2 million cash flow from operations in FY17 compared to cash flow from operations of $99.9 million in FY16. The Company's total deferred revenue was $111.1 million at the end of Q4 FY17, increasing from $107.2 million at the end of Q3 FY17.
Guidewire's total headcount of 1,893 increased by 357 employees during the year, including 214 the Company added from its acquisitions of FirstBest and ISCS.
For fiscal year 2018, Guidewire is forecasting total revenue to be in the range of $611.5 million to $623.5 million; representing an increase of 19% to 21% over FY17. The Company is expecting license and other revenue to be in the band of $298 million to $310 million, and maintenance revenue to be in the range of $72 million to $75 million. Guidewire is estimating a meaningful increase in services revenue in FY18, that is a range of $235 million to $245 million.
For FY18, Guidewire is anticipating gross margins to decline to between 62% and 64%, due primarily to the significant increase of lower-margin services revenues. The Company is expecting non-GAAP operating income in the range of $106 million to $118 million, which represents an operating margin of 18.1% at the midpoint. Guidewire is projecting non-GAAP net income in FY18 to be in the range of $74.8 million to $83 million, or $0.97 to $1.08 per diluted share. From a cash flow perspective, the Company expects to generate free cash flow of between $94 million and $106 million based on anticipated operating cash flow of $106 million to $118 million, less anticipated capital expenditures of approximately $12 million.
For Q1 FY18, Guidewire is forecasting total revenue to be in the range of $98 million to $102 million. Within revenue, the Company expects license revenue to be in the range of $26 million to $28 million, maintenance revenue in the band of $17.5 million to $18.5 million, and services revenue of $54 million to $56 million.
Guidewire is projecting Q1 FY18 non-GAAP operating loss of between $20 million and $16 million and a non-GAAP net loss of between $12.9 million and $10.2 million, or $0.17 to $0.14 per basic share.
At the closing bell, on Monday, September 25, 2017, Guidewire Software's stock fell 1.22%, ending the trading session at $77.68. A total volume of 680.96 thousand shares have exchanged hands, which was higher than the 3-month average volume of 479.45 thousand shares. The Company's stock price soared 12.51% in the last three months, 38.00% in the past six months, and 30.23% in the previous twelve months. Moreover, the stock skyrocketed 57.47% since the start of the year. The stock is trading at a PE ratio of 302.26 and currently has a market cap of $5.81 billion.
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