Guidewire Software (GWRE) Tops Q2 EPS by 8c, Revenues Beat; Offers Q1 & FY20 EPS/Revenue Guidance Below Consensus
Guidewire Software (NYSE: GWRE) reported Q2 EPS of $0.21, $0.08 better than the analyst estimate of $0.13. Revenue for the quarter came in at $173.46 million versus the consensus estimate of $166.39 million.
Second Quarter Fiscal Year 2020 Financial Highlights
Revenue
- Total revenue for the second quarter of fiscal year 2020 was $173.5 million, an increase of 3% from the same quarter in fiscal year 2019. License and subscription revenue was $105.0 million, an increase of 21%; services revenue was $47.4 million, a decrease of 22%; and maintenance revenue was $21.1 million, which remained relatively flat.
- Annual recurring revenue, or ARR, was $474 million as of January 31, 2020, up from $460 million as of July 31, 2019. Quarterly ARR results for fiscal year 2020 are based on actual currency rates at the end of fiscal year 2019, held constant throughout the year.
Profitability
- GAAP loss from operations was $18.0 million for the second quarter of fiscal year 2020, compared with $6.3 million for the comparable period in fiscal year 2019.
- Non-GAAP income from operations was $15.4 million for the second quarter of fiscal year 2020, compared with $25.4 million for the comparable period in fiscal year 2019.
- GAAP net loss was $19.9 million for the second quarter of fiscal year 2020, compared with less than $0.1 million for the comparable period in fiscal year 2019. GAAP net loss per share was $0.24, based on diluted weighted average shares outstanding of 82.7 million, compared with less than $0.01 for the comparable period in fiscal year 2019, based on diluted weighted average shares outstanding of 81.2 million.
- Non-GAAP net income was $17.6 million for the second quarter of fiscal year 2020, compared with $27.3 million for the comparable period in fiscal year 2019. Non-GAAP net income per share was $0.21, based on diluted weighted average shares outstanding of 83.6 million, compared with $0.33 for the comparable period in fiscal year 2019, based on diluted weighted average shares outstanding of 82.7 million.
“Our second quarter was highlighted by two Tier 1 insurers selecting InsuranceSuite Cloud and one new customer selecting InsuranceNow," said Mike Rosenbaum, chief executive officer, Guidewire Software. "Total revenue and profitability exceeded our outlook in the quarter, and we continue to see a clear shift to cloud-based core systems. However, the growing interest in cloud-based systems is dampening self-managed demand, impacting our full year outlook. Ultimately, this trend is a positive validation of our cloud strategy and reinforces our confidence in serving the more than $2 trillion P&C industry."
GUIDANCE:
Guidewire Software sees Q3 2020 EPS of ($0.06)-($0.02), versus the consensus of $0.22. Guidewire Software sees Q3 2020 revenue of $153-157 million, versus the consensus of $186.02 million.
Guidewire Software sees FY2020 EPS of $0.82-$0.94, versus the consensus of $1.48. Guidewire Software sees FY2020 revenue of $702-714 million, versus the consensus of $873.3 million.
For earnings history and earnings-related data on Guidewire Software (GWRE) click here.