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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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.
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.
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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