Guidewire Software, Inc. (NYSE: GWRE), a provider of software products
for property and casualty insurers, today announced its financial
results for the fiscal quarter ended January 31, 2015.
“Our second quarter results exceeded our expectations for both revenue
and profitability, reflecting InsuranceSuite momentum with both existing
and new customers,” said Marcus Ryu, chief executive officer, Guidewire
Software. “We continue to benefit from the P&C industry's demand for
business transformation predicated on a combination of legacy system
replacement and adoption of new technologies for data management and
digital interaction with their sales channels and end customers. We also
continue to benefit from strong engagement with our global system
integrators. While this element of our strategy is impacting the growth
of our services revenue as planned, the SIs bring market validation and
implementation scale to our growing customer base.”
Ryu continued, “We are also pleased with our engineering investments to
support this demand and to widen our differentiation from competitors.
For example, during the quarter, Gartner positioned Guidewire as a
'Leader' in their first ever Magic Quadrant for Property and Casualty
Insurance Policy Management Modules in North America. This recognition
complements our leadership position with InsuranceSuite and advances our
goal of becoming the pre-eminent software provider to the global P&C
industry.”
“On a personal note, Karen Blasing, our chief financial officer, has
announced her retirement. She has been a tremendous asset to Guidewire
and deserves significant credit for our growth and maturation over the
last five years. Richard Hart, who was one of the lead bankers in our
2012 IPO, will be replacing Karen. I am very confident that Richard will
be a great addition to our leadership team,” said Ryu.
Blasing will be succeeded by Hart and will remain with the company for
the next several months to ensure a smooth transition of
responsibilities. Hart previously spent 14 years at Deutsche Bank, where
he was a managing director.
Second Quarter Fiscal 2015 Financial Highlights
Revenue
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License revenue for the second quarter of fiscal 2015 was $43.6
million, an increase of 24% from the comparable period in fiscal 2014.
Maintenance revenue was $12.2 million, up 23%, and Services revenue
was $33.6 million, a decrease of 12%. Total revenue was $89.4 million,
an increase of 7%.
-
License revenue for the six month period of fiscal 2015 was $72.5
million, an increase of 34% from the comparable period in fiscal 2014.
Maintenance revenue was $24.7 million, up 26%, and Services revenue
was $72.0 million, a decrease of 6%. Total revenue was $169.2 million,
an increase of 13%.
-
Rolling four-quarter recurring term license and maintenance revenue
was $204.6 million, an increase of 33%.
Profitability
-
GAAP operating income was $3.3 million for the second quarter of
fiscal 2015, compared with $4.5 million in the comparable period in
fiscal 2014.
-
Non-GAAP operating income was $17.2 million for the second quarter of
fiscal 2015, compared with $17.0 million in the comparable period in
fiscal 2014.
-
GAAP net income was $4.0 million for the second quarter of fiscal
2015, compared with $3.3 million for the comparable period in fiscal
2014. GAAP net income per share was $0.06, based on diluted weighted
average shares outstanding of 72.1 million, compared with $0.05 for
the comparable period in fiscal 2014, based on diluted weighted
average shares outstanding of 70.9 million.
-
Non-GAAP net income was $12.5 million for the second quarter of fiscal
2015, compared with $11.6 million in the comparable period in fiscal
2014. Non-GAAP net income per diluted share was $0.17, based on
diluted weighted average shares outstanding of 72.1 million, compared
with $0.16 in the comparable period in fiscal 2014, based on diluted
weighted average shares outstanding of 70.9 million.
Balance Sheet
-
The Company had $627.2 million in cash, cash equivalents and
investments at January 31, 2015, compared with $647.8 million at July
31, 2014. The Company had $9.6 million in cash flow provided by
operations in the second quarter of fiscal 2015, compared with cash
flow from operations of $20.3 million in the comparable period in
fiscal 2014.
Business Outlook
Guidewire is issuing the following outlook for the third quarter and
fiscal 2015, based on current expectations:
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(in $ millions, except per share outlook)
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Third Quarter
Fiscal 2015
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Full Year
Fiscal 2015
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Revenue
|
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76.5-84.0
|
|
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362.7-378.4
|
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License revenue
|
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30.4-34.9
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170.3-180.0
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Maintenance revenue
|
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11.1-12.1
|
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48.4-50.4
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Services revenue
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35.0-37.0
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144.0-148.0
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GAAP operating income/(loss)
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(11.5)-(7.5)
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0.4-8.4
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Non-GAAP operating income
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2.3-6.3
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54.8-62.8
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GAAP net income/(loss)
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(6.5)-(4.2)
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0.4-4.9
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Per share
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(0.09)-(0.06)
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0.01-0.07
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Non-GAAP net income
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1.5-4.2
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36.6-41.9
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Per share
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0.02-0.06
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0.51-0.58
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Non-GAAP operating income and non-GAAP net income in the table above
excludes stock-based compensation expense of $13.4 million and
amortization of intangible assets of $0.4 million in the third quarter
of fiscal 2015, and $53.0 million and $1.4 million, respectively, for
the full year fiscal 2015. GAAP effective tax rate is expected to be
approximately 44% and non-GAAP effective tax rate is expected to be
approximately 34% for both the third quarter and fiscal 2015.
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Conference Call Information
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What:
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Guidewire Software second quarter fiscal 2015 financial results
conference call
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When:
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Monday, March 2, 2015
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Time:
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2:00 p.m. PT (5:00 p.m. ET)
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Live Call:
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(888) 215-7015, domestic
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(913) 981-5550, international
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Conference ID:
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2027616
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Replay:
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(877) 870-5176, domestic
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(858) 384-5517, international
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Conference ID:
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2027616
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Webcast:
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http://ir.guidewire.com
(live and replay)
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The webcast will be archived on Guidewire’s website for a period of
three months.
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Non-GAAP Financial Measures
This press release contains the following non-GAAP financial measures:
Non-GAAP operating income, Non-GAAP net income, Non-GAAP earnings per
share and Non-GAAP effective tax rate.
Guidewire believes that these non-GAAP measures of financial results
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. In order to compensate for these limitations,
management presents non-GAAP financial measures in connection with GAAP
results. 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 this press release, and not to rely on any single
financial measure to evaluate the Company’s business.
Reconciliation tables of the most comparable GAAP financial measures to
the non-GAAP financial measures used in this press release are included
with the financial tables at the end of this release.
About Guidewire Software
Guidewire builds software products that help Property/Casualty insurers
replace their legacy core systems and transform their business. Designed
to be flexible and scalable, Guidewire products enable insurers to
deliver excellent service, increase market share and lower operating
costs. Guidewire InsuranceSuite™ provides the core systems used by
insurers as operational systems of record. Additional products provide
support for data management, business intelligence, anytime/anywhere
access and guidance and monitoring. More than 180 Property/Casualty
insurers around the world have selected Guidewire. For more information,
please visit www.guidewire.com.
Follow us on twitter: @Guidewire_PandC.
NOTE: Guidewire, Guidewire Software, Guidewire ClaimCenter, Guidewire
PolicyCenter, and Guidewire BillingCenter are registered trademarks of
Guidewire Software, Inc. in the United States and/or other countries.
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, and future
investments. 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 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: the market for our software may develop
more slowly than expected or than it has in the past; 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 revenues; our services
revenues produce lower gross margins than our license and maintenance
revenues; assertions by third parties that we violate their intellectual
property rights could substantially harm our business; we face intense
competition in our market; 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.
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GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)
|
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|
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January 31,
2015
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July 31,
2014
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ASSETS
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CURRENT ASSETS:
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Cash and cash equivalents
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$
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125,224
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$
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148,101
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Short-term investments
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420,161
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296,231
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Accounts receivable
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61,797
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|
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49,839
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|
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Deferred tax assets, current
|
|
|
12,056
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|
|
11,431
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Prepaid expenses and other current assets
|
|
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9,279
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|
|
10,828
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|
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Total current assets
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628,517
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516,430
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Long-term investments
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81,779
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|
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203,449
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Property and equipment, net
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|
|
12,372
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|
|
12,607
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Intangible assets, net
|
|
|
4,719
|
|
|
5,439
|
|
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Deferred tax assets, noncurrent
|
|
|
11,504
|
|
|
8,681
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|
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Goodwill
|
|
|
9,205
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|
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9,205
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Other assets
|
|
|
924
|
|
|
1,416
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TOTAL ASSETS
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$
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749,020
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|
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$
|
757,227
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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CURRENT LIABILITIES:
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|
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Accounts payable
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|
|
$
|
7,008
|
|
|
$
|
7,030
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Accrued employee compensation
|
|
|
20,875
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|
|
34,912
|
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Deferred revenues, current
|
|
|
51,181
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48,937
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Other current liabilities
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|
5,085
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|
|
4,507
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Total current liabilities
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|
84,149
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95,386
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Deferred revenues, noncurrent
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1,290
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6,395
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Other liabilities
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4,510
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|
4,760
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Total liabilities
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89,949
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|
106,541
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STOCKHOLDERS’ EQUITY:
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Common stock
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|
7
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|
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7
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Additional paid-in capital
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640,573
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629,076
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Accumulated other comprehensive loss
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|
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(5,458
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)
|
|
(1,367
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)
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Retained earnings
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|
23,949
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|
|
22,970
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Total stockholders’ equity
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659,071
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|
|
650,686
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
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|
$
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749,020
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|
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$
|
757,227
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|
|
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GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in
thousands except share and per share data)
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|
|
|
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Three Months Ended January 31,
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Six Months Ended January 31,
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2015
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2014
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2015
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2014
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Revenues:
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License
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$
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43,655
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$
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35,215
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$
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72,475
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$
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54,085
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Maintenance
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12,163
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9,890
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24,683
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19,529
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Services
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33,628
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38,370
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72,022
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76,390
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Total revenues
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89,446
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|
|
83,475
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|
|
169,180
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|
|
150,004
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Cost of revenues: (1) (2)
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|
|
|
|
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|
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License
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1,145
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|
|
1,593
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2,227
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|
|
2,439
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|
Maintenance
|
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|
2,271
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|
|
1,902
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|
|
4,513
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|
|
3,684
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Services
|
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30,664
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|
|
32,672
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|
|
63,111
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|
|
67,901
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|
|
Total cost of revenues
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|
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34,080
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|
|
36,167
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|
|
69,851
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|
|
74,024
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|
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Gross profit:
|
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|
|
|
|
|
|
|
|
|
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License
|
|
|
42,510
|
|
|
33,622
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|
|
70,248
|
|
|
51,646
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|
|
Maintenance
|
|
|
9,892
|
|
|
7,988
|
|
|
20,170
|
|
|
15,845
|
|
|
Services
|
|
|
2,964
|
|
|
5,698
|
|
|
8,911
|
|
|
8,489
|
|
|
Total gross profit
|
|
|
55,366
|
|
|
47,308
|
|
|
99,329
|
|
|
75,980
|
|
|
Operating expenses: (1) (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
22,282
|
|
|
17,525
|
|
|
42,592
|
|
|
35,052
|
|
|
Sales and marketing
|
|
|
20,176
|
|
|
17,278
|
|
|
37,705
|
|
|
32,951
|
|
|
General and administrative
|
|
|
9,573
|
|
|
8,024
|
|
|
19,335
|
|
|
16,123
|
|
|
Total operating expenses
|
|
|
52,031
|
|
|
42,827
|
|
|
99,632
|
|
|
84,126
|
|
|
Income (loss) from operations
|
|
|
3,335
|
|
|
4,481
|
|
|
(303
|
)
|
|
(8,146
|
)
|
|
Interest income, net
|
|
|
495
|
|
|
346
|
|
|
1,007
|
|
|
504
|
|
|
Other income (expense), net
|
|
|
(861
|
)
|
|
(58
|
)
|
|
(1,344
|
)
|
|
57
|
|
|
Income (loss) before income taxes (1)
|
|
|
2,969
|
|
|
4,769
|
|
|
(640
|
)
|
|
(7,585
|
)
|
|
Provision for (benefit from) income taxes (1)
|
|
|
(1,007
|
)
|
|
1,437
|
|
|
(1,619
|
)
|
|
(4,462
|
)
|
|
Net income (loss)(1)
|
|
|
$
|
3,976
|
|
|
$
|
3,332
|
|
|
$
|
979
|
|
|
$
|
(3,123
|
)
|
|
Net income (loss) per share: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Basic
|
|
|
$
|
0.06
|
|
|
$
|
0.05
|
|
|
$
|
0.01
|
|
|
$
|
(0.05
|
)
|
|
Diluted
|
|
|
$
|
0.06
|
|
|
$
|
0.05
|
|
|
$
|
0.01
|
|
|
$
|
(0.05
|
)
|
|
Shares used in computing net income (loss) per share: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
69,883,622
|
|
|
67,360,775
|
|
|
69,600,161
|
|
|
63,005,064
|
|
|
Diluted
|
|
|
72,056,861
|
|
|
70,904,255
|
|
|
71,914,972
|
|
|
63,005,064
|
|
(1) See Note 2 “Change in Accounting Policy - Stock-Based
Compensation” of Notes to Consolidated Financial Statements for the
fiscal year ended July 31, 2014 included in the Company’s Annual Report
on Form 10-K.
(2) Amounts include stock-based compensation expense as
follows:
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|
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Three Months Ended January 31,
|
|
|
Six Months Ended January 31,
|
|
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
|
|
(unaudited, in thousands)
|
|
Stock-based compensation expenses: (1)
|
|
|
|
|
Cost of license revenue
|
|
|
$
|
55
|
|
|
$
|
51
|
|
|
|
$
|
104
|
|
|
$
|
96
|
|
Cost of maintenance revenues
|
|
|
309
|
|
|
201
|
|
|
|
586
|
|
|
361
|
|
Cost of services revenues
|
|
|
3,878
|
|
|
3,120
|
|
|
|
7,391
|
|
|
5,834
|
|
Research and development
|
|
|
2,662
|
|
|
2,402
|
|
|
|
4,805
|
|
|
4,397
|
|
Marketing and sales
|
|
|
3,442
|
|
|
3,790
|
|
|
|
6,429
|
|
|
5,849
|
|
General and administrative
|
|
|
3,152
|
|
|
2,575
|
|
|
|
6,171
|
|
|
4,788
|
|
Total stock-based compensation expenses
|
|
|
$
|
13,498
|
|
|
$
|
12,139
|
|
|
|
$
|
25,486
|
|
|
$
|
21,325
|
(1) See Note 2 “Change in Accounting Policy - Stock-Based
Compensation” of Notes to Consolidated Financial Statements for the
fiscal year ended July 31, 2014 included in the Company’s Annual Report
on Form 10-K.
|
|
GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended January 31,
|
|
|
Six Months Ended January 31,
|
|
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income(loss) (1)
|
|
|
$
|
3,976
|
|
|
$
|
3,332
|
|
|
|
$
|
979
|
|
|
$
|
(3,123
|
)
|
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
1,848
|
|
|
1,617
|
|
|
|
3,621
|
|
|
3,208
|
|
|
Stock-based compensation (1)
|
|
|
13,498
|
|
|
12,139
|
|
|
|
25,486
|
|
|
21,325
|
|
|
Excess tax benefit from exercise of stock options and vesting of RSUs
|
|
|
—
|
|
|
(157
|
)
|
|
|
—
|
|
|
(289
|
)
|
|
Deferred tax assets (1)
|
|
|
(2,504
|
)
|
|
231
|
|
|
|
(3,459
|
)
|
|
(5,936
|
)
|
|
Other noncash items affecting net loss
|
|
|
1,470
|
|
|
823
|
|
|
|
2,884
|
|
|
1,139
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(22,268
|
)
|
|
(9,908
|
)
|
|
|
(12,775
|
)
|
|
(16,118
|
)
|
|
Prepaid expenses and other assets
|
|
|
2,541
|
|
|
(232
|
)
|
|
|
1,727
|
|
|
1,103
|
|
|
Accounts payable
|
|
|
730
|
|
|
(1,327
|
)
|
|
|
817
|
|
|
(443
|
)
|
|
Accrued employee compensation
|
|
|
4,017
|
|
|
4,920
|
|
|
|
(13,215
|
)
|
|
(4,937
|
)
|
|
Other liabilities
|
|
|
447
|
|
|
614
|
|
|
|
457
|
|
|
(685
|
)
|
|
Deferred revenues
|
|
|
5,860
|
|
|
8,260
|
|
|
|
(2,455
|
)
|
|
10,485
|
|
|
Net cash provided by operating activities
|
|
|
9,615
|
|
|
20,312
|
|
|
|
4,067
|
|
|
5,729
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of available-for-sale securities
|
|
|
(123,111
|
)
|
|
(310,944
|
)
|
|
|
(236,841
|
)
|
|
(354,101
|
)
|
|
Sales and maturities of available-for-sale securities
|
|
|
129,356
|
|
|
79,126
|
|
|
|
231,895
|
|
|
110,228
|
|
|
Purchase of property and equipment
|
|
|
(2,402
|
)
|
|
(1,375
|
)
|
|
|
(3,651
|
)
|
|
(2,581
|
)
|
|
Acquisition, net of cash acquired
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
(95
|
)
|
|
Net cash provided by (used in) investing activities
|
|
|
3,843
|
|
|
(233,193
|
)
|
|
|
(8,597
|
)
|
|
(246,549
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock upon exercise of stock options
|
|
|
2,414
|
|
|
2,080
|
|
|
|
3,859
|
|
|
4,143
|
|
|
Taxes remitted on RSU awards vested
|
|
|
(9,278
|
)
|
|
(7,896
|
)
|
|
|
(17,848
|
)
|
|
(15,198
|
)
|
|
Proceeds from issuance of common stock in connection with stock
offerings, net of underwriting discounts and commission
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
389,949
|
|
|
Costs paid in connection with stock offerings
|
|
|
—
|
|
|
(303
|
)
|
|
|
—
|
|
|
(410
|
)
|
|
Excess tax benefit from exercise of stock options and vesting of RSUs
|
|
|
—
|
|
|
157
|
|
|
|
—
|
|
|
289
|
|
|
Net cash provided by (used in) financing activities
|
|
|
(6,864
|
)
|
|
(5,962
|
)
|
|
|
(13,989
|
)
|
|
378,773
|
|
|
Effect of foreign exchange rate changes on cash and cash equivalents
|
|
|
(2,880
|
)
|
|
(673
|
)
|
|
|
(4,358
|
)
|
|
(91
|
)
|
|
NET CHANGE IN CASH AND CASH EQUIVALENTS
|
|
|
3,714
|
|
|
(219,516
|
)
|
|
|
(22,877
|
)
|
|
137,862
|
|
|
CASH AND CASH EQUIVALENTS—Beginning of period
|
|
|
121,510
|
|
|
437,145
|
|
|
|
148,101
|
|
|
79,767
|
|
|
CASH AND CASH EQUIVALENTS—End of period
|
|
|
$
|
125,224
|
|
|
$
|
217,629
|
|
|
|
$
|
125,224
|
|
|
$
|
217,629
|
|
(1) See Note 2 “Change in Accounting Policy - Stock-Based Compensation”
of Notes to Consolidated Financial Statements for the fiscal year ended
July 31, 2014 included in the Company’s Annual Report on Form 10-K.
|
|
GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
Reconciliation
of GAAP to Non-GAAP Operating Results
(unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following tables reconcile the specific items excluded from GAAP
in the calculation of non-GAAP operating results for the periods
indicated below:
|
|
|
|
|
Three Months Ended January 31,
|
|
|
Six Months Ended January 31,
|
|
Income (loss) from operations reconciliation: (1)
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
GAAP net income (loss) from operations
|
|
|
$
|
3,335
|
|
|
$
|
4,481
|
|
|
|
$
|
(303
|
)
|
|
$
|
(8,146
|
)
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation (2)
|
|
|
13,498
|
|
|
12,139
|
|
|
|
25,486
|
|
|
21,325
|
|
|
Amortization of intangibles (2)
|
|
|
360
|
|
|
360
|
|
|
|
720
|
|
|
720
|
|
|
Non-GAAP net income from operations
|
|
|
$
|
17,193
|
|
|
$
|
16,980
|
|
|
|
$
|
25,903
|
|
|
$
|
13,899
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) reconciliation: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss)
|
|
|
$
|
3,976
|
|
|
$
|
3,332
|
|
|
|
$
|
979
|
|
|
$
|
(3,123
|
)
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation (2)
|
|
|
13,498
|
|
|
12,139
|
|
|
|
25,486
|
|
|
21,325
|
|
|
Amortization of intangibles (2)
|
|
|
360
|
|
|
360
|
|
|
|
720
|
|
|
720
|
|
|
Tax effect on non-GAAP adjustments (3)
|
|
|
(5,384
|
)
|
|
(4,265
|
)
|
|
|
(9,070
|
)
|
|
(9,311
|
)
|
|
Non-GAAP net income
|
|
|
$
|
12,450
|
|
|
$
|
11,566
|
|
|
|
$
|
18,115
|
|
|
$
|
9,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended January 31,
|
|
|
Six Months Ended January 31,
|
|
|
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
Tax provision (benefits) reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP tax provision (benefits)
|
|
|
$
|
(1,007
|
)
|
(34
|
)%
|
|
$
|
1,437
|
|
30
|
%
|
|
|
$
|
(1,619
|
)
|
253
|
%
|
|
$
|
(4,462
|
)
|
59
|
%
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
4,432
|
|
|
|
|
3,933
|
|
|
|
|
|
8,563
|
|
|
|
|
6,921
|
|
|
|
|
|
Amortization of intangibles
|
|
|
118
|
|
|
|
|
117
|
|
|
|
|
|
242
|
|
|
|
|
234
|
|
|
|
|
|
ISO deduction
|
|
|
139
|
|
|
|
|
83
|
|
|
|
|
|
216
|
|
|
|
|
370
|
|
|
|
|
|
Tax effect on GAAP profit before taxes due to
different tax
rates between GAAP and non-GAAP
|
|
|
695
|
|
|
|
|
132
|
|
|
|
|
|
49
|
|
|
|
|
1,786
|
|
|
|
|
Non-GAAP tax provision
|
|
|
$
|
4,377
|
|
26
|
%
|
|
$
|
5,702
|
|
33
|
%
|
|
|
$
|
7,451
|
|
29
|
%
|
|
$
|
4,849
|
|
34
|
%
|
(1) See Note 2 “Change in Accounting Policy - Stock-Based Compensation”
of Notes to Consolidated Financial Statements for the fiscal year ended
July 31, 2014 included in the Company’s Annual Report on Form 10-K.
(2) Adjustments relate to amortization of acquired intangibles and
stock-based compensation recognized during the period for GAAP purposes.
(3) Adjustment reflects the tax benefit resulting from all non-GAAP
adjustments.
|
|
|
GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
Reconciliation
of GAAP to Non-GAAP Operating Results
(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 operating results for the
periods indicated below:
|
|
|
|
|
Three Months Ended
January 31,
|
|
|
Six Months Ended
January 31,
|
|
Earnings per share reconciliation: (1)
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
GAAP earnings per share - Diluted
|
|
|
$
|
0.06
|
|
|
$
|
0.05
|
|
|
|
$
|
0.01
|
|
|
$
|
(0.05
|
)
|
|
Amortization of intangibles acquired in business combinations
|
|
|
—
|
|
|
—
|
|
|
|
0.01
|
|
|
0.01
|
|
|
Stock-based compensation
|
|
|
0.18
|
|
|
0.17
|
|
|
|
0.35
|
|
|
0.32
|
|
|
Less tax benefit of non GAAP items
|
|
|
(0.07
|
)
|
|
(0.06
|
)
|
|
|
(0.12
|
)
|
|
(0.14
|
)
|
|
Non-GAAP dilutive shares excluded from GAAP EPS calculation (2)
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
Non-GAAP earnings per share - Diluted
|
|
|
$
|
0.17
|
|
|
$
|
0.16
|
|
|
|
$
|
0.25
|
|
|
$
|
0.14
|
|
|
(1) See Note 2 “Change in Accounting Policy - Stock-Based
Compensation” of Notes to Consolidated Financial Statements
for
the fiscal year ended July 31, 2014 included in the Company’s
Annual Report on Form 10-K.
|
|
(2) 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
Non-GAAP earnings per
share and are included here.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
January 31,
|
|
|
Six Months Ended
January 31,
|
|
Shares used in computing non-GAAP per share amounts: (1)
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
Weighted average shares - Diluted
|
|
|
72,056,861
|
|
|
70,904,255
|
|
|
|
71,914,972
|
|
|
63,005,064
|
|
|
Non-GAAP dilutive shares excluded from GAAP EPS calculation (2)
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
3,822,087
|
|
|
Pro forma weighted average shares - Diluted
|
|
|
72,056,861
|
|
|
70,904,255
|
|
|
|
71,914,972
|
|
|
66,827,151
|
|
|
(1) See Note 2 “Change in Accounting Policy - Stock-Based
Compensation” of Notes to Consolidated Financial Statements
for
the fiscal year ended July 31, 2014 included in the Company’s
Annual Report on Form 10-K.
|
|
(2) 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
Non-GAAP earnings per
share and are included here.
|
Copyright Business Wire 2015