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Free Research Report as Guidewire's Revenues Advanced 14%

LONDON, UK / ACCESSWIRE / July 2, 2018 / If you want access to our free earnings report on Guidewire Software, Inc. (NYSE: GWRE), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=GWRE. The Company reported its third quarter fiscal 2018 operating and financial results on June 05, 2018. The provider of software to the insurance industry outperformed top- and bottom-line expectations. Additionally, the Company raised its guidance for FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Guidewire Software most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=GWRE

Earnings Highlights and Summary

For the third quarter of the fiscal year 2018, ended April 30, 2017, Guidewire's total revenues advanced 14% to $140.5 million compared to $123.4 million in Q3 FY17. The Company's revenue numbers beat analysts' estimates of $137.5 million.

During Q3 FY18, Guidewire's license and other revenues fell 15% to $50.4 million compared to $59.0 million in Q3 FY17. The Company's services revenues soared 50% to $71.4 million in the reported quarter versus $47.6 million in the prior year's comparable quarter. Guidewire's maintenance revenues advanced 11% to $18.7 million in Q3 FY18 compared to $16.9 million in Q3 FY17.

For Q3 FY18, Guidewire's rolling four-quarter recurring revenues were $334.4 million, reflecting an increase of 10% compared to the same metric for the period ended April 30, 2017.

Guidewire reported a GAAP loss from operations of $29.2 million compared to a loss of $4.3 million in Q3 FY17. The Company's non-GAAP income from operations was $2.3 million in the reported quarter compared to $17.1 million in the year ago corresponding period.

For Q3 FY18, Guidewire recorded a GAAP net loss of $48.6 million, or $0.62 loss per diluted share, based on weighted average shares outstanding of 78.8 million; compared to a net loss of $1.8 million, or $0.02 loss per diluted share, based on diluted weighted average shares outstanding of 74.2 million, in Q3 FY17.

Guidewire reported a non-GAAP net income of $3.9 million, or $0.05 per diluted share, in Q3 FY18 compared to $12.3 million, or $0.16 per diluted share, in Q3 FY17. The Company's earnings surpassed Wall Street's estimates for a loss of $0.01 per share.

Liquidity

As of April 30, 2018, Guidewire had cash, cash equivalents, and investments of $1.16 billion compared to $687.8 million as of July 31, 2017. The increase was due to total net proceeds of $608.2 million, related to the public offering of the Company's common stock and convertible notes offering, partially offset by the use of approximately $130.1 million of cash in connection with the acquisition of Cyence.

Guidewire's operating cash flow was $20.2 million, and its free cash flow was $19 million in Q3 FY18. The Company's total deferred revenues were $134.6 million at the end of the reported quarter, reflecting an increase from $130.9 million at the end of the previous quarter.

Outlook

For the full fiscal year 2018, Guidewire is forecasting total revenues to be in the range of $647 million to $653 million, reflecting an increase of 26% to 27% from FY17. The Company is expecting annual license and other revenues to be in the band of $306 million to $312 million, representing an increase of 13% to 15% from FY17.

Due to higher profitability in Q3 FY18 and its higher revenue outlook, Guidewire raised its non-GAAP operating income guidance to be in the range of $104 million to $110 million for FY18. The Company also increased its guidance outlook for non-GAAP net income to $83.3 million to $87.7 million, or $1.05 to $1.11 per diluted share.

For Q4 FY18, Guidewire is projecting total revenues to be in the band of $234 million to $240 million. Within revenues, the Company expects license and other revenues to be in the range of $141 million to $147 million; maintenance revenues of $19 million to $20 million; and services revenues of $71 million to $75 million.

For the upcoming quarter, Guidewire is anticipating a non-GAAP operating income of between $78 million to $84 million, and a non-GAAP net income of between $58.8 million and $63.2 million, or $0.72 to $0.77 per share.

Stock Performance Snapshot

June 29, 2018 - At Friday's closing bell, Guidewire Software's stock was slightly up 0.61%, ending the trading session at $88.78.

Volume traded for the day: 466.84 thousand shares.

Stock performance in the last three-month – up 12.85%; previous six-month period – up 20.10%; past twelve-month period – up 29.23%; and year-to-date – up 19.55%

After last Friday's close, Guidewire Software's market cap was at $7.08 billion.

The stock is part of the Technology sector, categorized under the Business Software & Services industry. This sector was up 0.2% at the end of the session.

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