Guidewire Software, Inc. (NYSE: GWRE), a provider of software products
to Property and Casualty insurers, today announced its financial results
for the fiscal quarter ended January 31, 2016.
“We achieved revenue and profitability above the high end of our
guidance range for the second quarter, reflecting strong demand for both
core system replacement and our newer products in the data management
and digital engagement domains,” said Marcus Ryu, chief executive
officer, Guidewire Software. “We believe the appeal that all the
products in our portfolio have to a diverse set of insurers globally
validates our strategy of industry focus and investment in product
expansion.”
Ryu continued, “Our products have become even more appealing as they
enable significant changes in P&C insurance strategies in response to
data driven decisioning and end-market digital preferences. We intend to
extend our product leadership to further service the industry and
support our continued growth in the years ahead.”
Second Quarter Fiscal 2016 Financial Highlights
Revenue
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License revenue for the second quarter of fiscal 2016 was $53.4
million, an increase of 22% from the second quarter of fiscal 2015.
Maintenance revenue was $14.3 million, an increase of 17% and services
revenue was $34.5 million, an increase of 3%. Total revenue was $102.1
million, an increase of 14% from the same quarter in fiscal 2015.
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License revenue for the six months ended January 31, 2016 was $85.7
million, an increase of 18% from the comparable period of fiscal 2015.
Maintenance revenue was $28.3 million, an increase of 15% and services
revenue was $70.4 million, a decrease of 2%. Total revenue was $184.4
million, an increase of 9% from the same period in fiscal 2015.
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Rolling four-quarter recurring term license and maintenance revenue
was $238.3 million, an increase of 16% compared to the same period in
fiscal 2015.
Profitability
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GAAP operating income was $7.7 million for the second quarter of
fiscal 2016, compared with $3.3 million in the comparable period in
fiscal 2015.
-
Non-GAAP operating income was $24.6 million for the second quarter of
fiscal 2016, compared with $17.2 million in the comparable period in
fiscal 2015.
-
GAAP net income was $0.9 million for the second quarter of fiscal
2016, compared with $4.0 million for the comparable period in fiscal
2015. GAAP net income per share was $0.01, based on diluted weighted
average shares outstanding of 73.4 million, compared with $0.06 per
share for the comparable period in fiscal 2015, based on diluted
weighted average shares outstanding of 72.1 million.
-
Non-GAAP net income was $17.8 million for the second quarter of fiscal
2016, compared with $12.5 million in the comparable period in fiscal
2015. Non-GAAP net income per diluted share was $0.24, based on
diluted weighted average shares outstanding of 73.4 million, compared
with $0.17 in the comparable period in fiscal 2015, based on diluted
weighted average shares outstanding of 72.1 million.
Balance Sheet
-
The Company had $700.8 million in cash, cash equivalents and
investments at January 31, 2016, compared with $677.8 million at July
31, 2015. The Company generated $37.9 million cash inflow from
operations in the second quarter of fiscal 2016, compared with cash
flow from operations of $9.6 million in the comparable period in
fiscal 2015.
Business Outlook
Guidewire is issuing the following outlook for the third quarter and
fiscal 2016, based on current expectations:
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(in $ millions, except per share outlook)
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Third Quarter
Fiscal 2016
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Full Year
Fiscal 2016
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Revenue
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90.3 - 94.3
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408.5 - 416.5
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License revenue
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40.0 - 42.0
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206.0 - 212.0
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Maintenance revenue
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14.0 - 14.5
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56.5 - 58.5
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Services revenue
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36.0 - 38.0
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144.0 - 148.0
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GAAP operating income/(loss)
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(11.8) - (7.8)
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4.5 - 12.5
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Non-GAAP operating income
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4.5 - 8.5
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69.0 - 77.0
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GAAP net income/(loss)
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(6.6) - (4.4)
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1.8 - 6.3
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GAAP net income/(loss) per share
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(0.09) - (0.06)
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0.03 - 0.09
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Non-GAAP net income
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3.1 - 5.8
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46.3 - 51.7
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Non-GAAP net income per share
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0.04 - 0.08
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0.64 - 0.71
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Guidewire continues to target term license revenue growth of 20% or
higher for the current fiscal year. Non-GAAP operating income and
non-GAAP net income exclude stock-based compensation expense and
amortization of intangible assets.
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Conference Call Information
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What:
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Guidewire Software second quarter fiscal 2016 financial results
conference call
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When:
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Tuesday, March 1, 2016
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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) 661-5176, Domestic
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(913) 312-6668, International
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Replay:
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(877) 870-5176, Passcode 6794165, Domestic
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(858) 384-5517, Passcode 6794165, International
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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.
Non-GAAP Financial Measures
This press release contains the following non-GAAP financial measures:
Non-GAAP operating income, Non-GAAP net income, Non-GAAP net income per
share and Non-GAAP tax provision. These Non-GAAP financial measures
exclude stock-based compensation and amortization of intangibles, and
the tax effect of these adjustments for Non-GAAP net income and Non-GAAP
net income per share.
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 delivers the software
that Property/Casualty (P/C) insurers need to adapt and succeed in a
time of rapid industry change. We combine three elements - core
processing, data and analytics, and digital engagement - into a
technology platform that enhances insurers’ ability to engage and
empower their customers and employees. More than 200 P/C 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
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CONDENSED CONSOLIDATED BALANCE SHEETS
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(unaudited, in thousands)
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January 31,
2016
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July 31,
2015
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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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216,922
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$
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212,362
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Short-term investments
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374,022
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359,273
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Accounts receivable
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59,392
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62,062
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Deferred tax assets, current
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—
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|
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13,845
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Prepaid expenses and other current assets
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13,486
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|
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14,102
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Total current assets
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663,822
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661,644
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Long-term investments
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109,820
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106,117
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Property and equipment, net
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13,040
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|
|
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12,160
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Intangible assets, net
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|
|
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3,279
|
|
|
|
3,999
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Deferred tax assets, noncurrent
|
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21,430
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|
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5,896
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Goodwill
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9,205
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9,205
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Other assets
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3,681
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|
|
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926
|
|
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TOTAL ASSETS
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$
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824,277
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|
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$
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799,947
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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CURRENT LIABILITIES:
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Accounts payable
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$
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7,259
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$
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8,816
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Accrued employee compensation
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21,990
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37,235
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Deferred revenues, current
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57,796
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50,766
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Other current liabilities
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7,411
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7,592
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Total current liabilities
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94,456
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104,409
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Deferred revenues, noncurrent
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4,167
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1,800
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Other liabilities
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3,762
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|
|
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4,350
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Total liabilities
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102,385
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110,559
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STOCKHOLDERS’ EQUITY:
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Common stock
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|
7
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|
7
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|
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Additional paid-in capital
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697,628
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662,869
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Accumulated other comprehensive loss
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(7,881
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)
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|
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(6,343
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)
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Retained earnings
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32,138
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|
32,855
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Total stockholders’ equity
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721,892
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689,388
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
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|
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$
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824,277
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$
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799,947
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|
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GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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(unaudited, in thousands except share and per share data)
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Three Months Ended
January 31,
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Six Months Ended
January 31,
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2016
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2015
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2016
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2015
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Revenues:
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License
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$
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53,376
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$
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43,655
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$
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85,716
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$
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72,475
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Maintenance
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14,256
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12,163
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28,269
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|
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24,683
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Services
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|
|
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34,497
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33,628
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|
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|
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70,424
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|
|
|
72,022
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Total revenues
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|
|
|
|
102,129
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|
|
|
89,446
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|
|
|
|
184,409
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|
|
|
169,180
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|
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Cost of revenues: (1)
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
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License
|
|
|
|
|
1,577
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|
|
|
1,145
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|
|
|
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2,741
|
|
|
|
2,227
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|
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Maintenance
|
|
|
|
|
2,636
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|
|
|
2,271
|
|
|
|
|
5,111
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|
|
|
4,513
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|
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Services
|
|
|
|
|
30,688
|
|
|
|
30,664
|
|
|
|
|
62,219
|
|
|
|
63,111
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|
|
Total cost of revenues
|
|
|
|
|
34,901
|
|
|
|
34,080
|
|
|
|
|
70,071
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|
|
|
69,851
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|
|
Gross profit:
|
|
|
|
|
|
|
|
|
|
|
|
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|
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License
|
|
|
|
|
51,799
|
|
|
|
42,510
|
|
|
|
|
82,975
|
|
|
|
70,248
|
|
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Maintenance
|
|
|
|
|
11,620
|
|
|
|
9,892
|
|
|
|
|
23,158
|
|
|
|
20,170
|
|
|
Services
|
|
|
|
|
3,809
|
|
|
|
2,964
|
|
|
|
|
8,205
|
|
|
|
8,911
|
|
|
Total gross profit
|
|
|
|
|
67,228
|
|
|
|
55,366
|
|
|
|
|
114,338
|
|
|
|
99,329
|
|
|
Operating expenses: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Research and development
|
|
|
|
|
25,409
|
|
|
|
22,282
|
|
|
|
|
51,081
|
|
|
|
42,592
|
|
|
Sales and marketing
|
|
|
|
|
22,661
|
|
|
|
20,176
|
|
|
|
|
41,952
|
|
|
|
37,705
|
|
|
General and administrative
|
|
|
|
|
11,456
|
|
|
|
9,573
|
|
|
|
|
22,566
|
|
|
|
19,335
|
|
|
Total operating expenses
|
|
|
|
|
59,526
|
|
|
|
52,031
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|
|
|
|
115,599
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|
|
|
99,632
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|
|
Income (loss) from operations
|
|
|
|
|
7,702
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|
|
|
3,335
|
|
|
|
|
(1,261
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)
|
|
|
(303
|
)
|
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Interest income
|
|
|
|
|
758
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|
|
|
495
|
|
|
|
|
1,454
|
|
|
|
1,007
|
|
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Other income (expense), net
|
|
|
|
|
(1,182
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)
|
|
|
(861
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)
|
|
|
|
(965
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)
|
|
|
(1,344
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)
|
|
Income (loss) before income taxes
|
|
|
|
|
7,278
|
|
|
|
2,969
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|
|
|
|
(772
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)
|
|
|
(640
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)
|
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Provision for (benefit from) income taxes
|
|
|
|
|
6,365
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|
|
|
(1,007
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)
|
|
|
|
(55
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)
|
|
|
(1,619
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)
|
|
Net income (loss)
|
|
|
|
|
$
|
913
|
|
|
|
$
|
3,976
|
|
|
|
|
$
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(717
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)
|
|
|
$
|
979
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|
|
Net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Basic
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|
|
|
|
$
|
0.01
|
|
|
|
$
|
0.06
|
|
|
|
|
$
|
(0.01
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)
|
|
|
$
|
0.01
|
|
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Diluted
|
|
|
|
|
$
|
0.01
|
|
|
|
$
|
0.06
|
|
|
|
|
$
|
(0.01
|
)
|
|
|
$
|
0.01
|
|
|
Shares used in computing net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Basic
|
|
|
|
|
71,779,496
|
|
|
|
69,883,622
|
|
|
|
|
71,511,198
|
|
|
|
69,600,161
|
|
|
Diluted
|
|
|
|
|
73,402,064
|
|
|
|
72,056,861
|
|
|
|
|
71,511,198
|
|
|
|
71,914,972
|
|
(1) Amounts include stock-based compensation expense as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
January 31,
|
|
|
|
Six Months Ended
January 31,
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
(unaudited, in thousands)
|
|
Stock-based compensation expenses:
|
|
|
|
|
|
|
Cost of license revenue
|
|
|
|
|
$
|
103
|
|
|
|
$
|
55
|
|
|
|
|
$
|
192
|
|
|
|
$
|
104
|
|
Cost of maintenance revenues
|
|
|
|
|
380
|
|
|
|
309
|
|
|
|
|
719
|
|
|
|
586
|
|
Cost of services revenues
|
|
|
|
|
4,673
|
|
|
|
3,878
|
|
|
|
|
9,036
|
|
|
|
7,391
|
|
Research and development
|
|
|
|
|
3,911
|
|
|
|
2,662
|
|
|
|
|
7,583
|
|
|
|
4,805
|
|
Marketing and sales
|
|
|
|
|
3,616
|
|
|
|
3,442
|
|
|
|
|
7,046
|
|
|
|
6,429
|
|
General and administrative
|
|
|
|
|
3,862
|
|
|
|
3,152
|
|
|
|
|
7,116
|
|
|
|
6,171
|
|
Total stock-based compensation expenses
|
|
|
|
|
$
|
16,545
|
|
|
|
$
|
13,498
|
|
|
|
|
$
|
31,692
|
|
|
|
$
|
25,486
|
|
GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended January 31,
|
|
|
Six Months Ended January 31,
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
913
|
|
|
|
$
|
3,976
|
|
|
|
$
|
(717
|
)
|
|
|
$
|
979
|
|
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
1,751
|
|
|
|
1,848
|
|
|
|
3,542
|
|
|
|
3,621
|
|
|
Stock-based compensation
|
|
|
|
16,545
|
|
|
|
13,498
|
|
|
|
31,692
|
|
|
|
25,486
|
|
|
Excess tax benefit from exercise of stock options and vesting of
restricted stock units
|
|
|
|
(91
|
)
|
|
|
—
|
|
|
|
(566
|
)
|
|
|
—
|
|
|
Deferred tax assets
|
|
|
|
5,202
|
|
|
|
(2,504
|
)
|
|
|
(1,703
|
)
|
|
|
(3,459
|
)
|
|
Amortization of premium on available-for-sale securities
|
|
|
|
961
|
|
|
|
1,470
|
|
|
|
1,838
|
|
|
|
2,884
|
|
|
Loss on disposals of property and equipment
|
|
|
|
5
|
|
|
|
—
|
|
|
|
23
|
|
|
|
—
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(5,417
|
)
|
|
|
(22,268
|
)
|
|
|
2,221
|
|
|
|
(12,775
|
)
|
|
Prepaid expenses and other assets
|
|
|
|
(1,237
|
)
|
|
|
2,541
|
|
|
|
(2,308
|
)
|
|
|
1,727
|
|
|
Accounts payable
|
|
|
|
1,151
|
|
|
|
730
|
|
|
|
(1,391
|
)
|
|
|
817
|
|
|
Accrued employee compensation
|
|
|
|
4,876
|
|
|
|
4,017
|
|
|
|
(14,964
|
)
|
|
|
(13,215
|
)
|
|
Other liabilities
|
|
|
|
918
|
|
|
|
447
|
|
|
|
(121
|
)
|
|
|
457
|
|
|
Deferred revenues
|
|
|
|
12,343
|
|
|
|
5,860
|
|
|
|
9,484
|
|
|
|
(2,455
|
)
|
|
Net cash provided by operating activities
|
|
|
|
37,920
|
|
|
|
9,615
|
|
|
|
27,030
|
|
|
|
4,067
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of available-for-sale securities
|
|
|
|
(146,654
|
)
|
|
|
(123,111
|
)
|
|
|
(341,990
|
)
|
|
|
(236,841
|
)
|
|
Sales of available-for-sale securities
|
|
|
|
132,640
|
|
|
|
129,356
|
|
|
|
321,507
|
|
|
|
231,895
|
|
|
Purchase of property and equipment
|
|
|
|
(851
|
)
|
|
|
(2,402
|
)
|
|
|
(3,867
|
)
|
|
|
(3,651
|
)
|
|
Net cash used in investing activities
|
|
|
|
(14,865
|
)
|
|
|
3,843
|
|
|
|
(24,350
|
)
|
|
|
(8,597
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock upon exercise of stock options
|
|
|
|
2,526
|
|
|
|
2,414
|
|
|
|
3,989
|
|
|
|
3,859
|
|
|
Taxes remitted on RSU awards vested
|
|
|
|
(614
|
)
|
|
|
(9,278
|
)
|
|
|
(1,488
|
)
|
|
|
(17,848
|
)
|
|
Excess tax benefit from exercise of stock options and vesting of
restricted stock units
|
|
|
|
91
|
|
|
|
—
|
|
|
|
566
|
|
|
|
—
|
|
|
Net cash provided by (used in) financing activities
|
|
|
|
2,003
|
|
|
|
(6,864
|
)
|
|
|
3,067
|
|
|
|
(13,989
|
)
|
|
Effect of foreign exchange rate changes on cash and cash equivalents
|
|
|
|
(867
|
)
|
|
|
(2,880
|
)
|
|
|
(1,187
|
)
|
|
|
(4,358
|
)
|
|
NET CHANGE IN CASH AND CASH EQUIVALENTS
|
|
|
|
24,191
|
|
|
|
3,714
|
|
|
|
4,560
|
|
|
|
(22,877
|
)
|
|
CASH AND CASH EQUIVALENTS—Beginning of period
|
|
|
|
192,731
|
|
|
|
121,510
|
|
|
|
212,362
|
|
|
|
148,101
|
|
|
CASH AND CASH EQUIVALENTS—End of period
|
|
|
|
$
|
216,922
|
|
|
|
$
|
125,224
|
|
|
|
$
|
216,922
|
|
|
|
$
|
125,224
|
|
|
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:
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
GAAP net income (loss) from operations
|
|
|
|
$
|
7,702
|
|
|
|
$
|
3,335
|
|
|
|
$
|
(1,261
|
)
|
|
|
$
|
(303
|
)
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation (1)
|
|
|
|
16,545
|
|
|
|
13,498
|
|
|
|
31,692
|
|
|
|
25,486
|
|
|
Amortization of intangibles (1)
|
|
|
|
360
|
|
|
|
360
|
|
|
|
720
|
|
|
|
720
|
|
|
Non-GAAP income from operations
|
|
|
|
$
|
24,607
|
|
|
|
$
|
17,193
|
|
|
|
$
|
31,151
|
|
|
|
$
|
25,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss)
|
|
|
|
$
|
913
|
|
|
|
$
|
3,976
|
|
|
|
$
|
(717
|
)
|
|
|
$
|
979
|
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation (1)
|
|
|
|
16,545
|
|
|
|
13,498
|
|
|
|
31,692
|
|
|
|
25,486
|
|
|
Amortization of intangibles (1)
|
|
|
|
360
|
|
|
|
360
|
|
|
|
720
|
|
|
|
720
|
|
|
Tax effect on non-GAAP adjustments (2)
|
|
|
|
26
|
|
|
|
(5,384
|
)
|
|
|
(9,098
|
)
|
|
|
(9,070
|
)
|
|
Non-GAAP net income
|
|
|
|
$
|
17,844
|
|
|
|
$
|
12,450
|
|
|
|
$
|
22,597
|
|
|
|
$
|
18,115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
January 31,
|
|
|
Six Months Ended
January 31,
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Tax provision (benefits) reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP tax provision (benefits)
|
|
|
|
$
|
6,365
|
|
|
|
$
|
(1,007
|
)
|
|
|
$
|
(55
|
)
|
|
|
$
|
(1,619
|
)
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
|
5,143
|
|
|
|
4,215
|
|
|
|
10,142
|
|
|
|
8,410
|
|
|
|
Amortization of intangibles
|
|
|
|
111
|
|
|
|
111
|
|
|
|
230
|
|
|
|
238
|
|
|
|
ISO deduction
|
|
|
|
108
|
|
|
|
139
|
|
|
|
167
|
|
|
|
216
|
|
|
|
Tax effect on GAAP profit before taxes due to different tax rates
between GAAP and non-GAAP
|
|
|
|
(5,388
|
)
|
|
|
919
|
|
|
|
(1,441
|
)
|
|
|
206
|
|
|
Non-GAAP tax provision
|
|
|
|
$
|
6,339
|
|
|
|
$
|
4,377
|
|
|
|
$
|
9,043
|
|
|
|
$
|
7,451
|
|
(1) Adjustments relate to amortization of acquired intangibles and
stock-based compensation recognized during the period for GAAP purposes.
(2) 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:
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
GAAP earnings per share - Diluted
|
|
|
|
$
|
0.01
|
|
|
|
$
|
0.06
|
|
|
|
$
|
(0.01
|
)
|
|
|
$
|
0.01
|
|
|
Amortization of intangibles acquired in business combinations
|
|
|
|
0.01
|
|
|
|
—
|
|
|
|
0.01
|
|
|
|
0.01
|
|
|
Stock-based compensation
|
|
|
|
0.23
|
|
|
|
0.18
|
|
|
|
0.44
|
|
|
|
0.35
|
|
|
Less tax benefit of non GAAP items
|
|
|
|
—
|
|
|
|
(0.07
|
)
|
|
|
(0.13
|
)
|
|
|
(0.12
|
)
|
|
Non-GAAP dilutive shares excluded from GAAP EPS calculation (1)
|
|
|
|
(0.01
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Non-GAAP earnings per share - Diluted
|
|
|
|
$
|
0.24
|
|
|
|
$
|
0.17
|
|
|
|
$
|
0.31
|
|
|
|
$
|
0.25
|
|
|
|
|
(1) 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:
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Weighted average shares - Diluted
|
|
|
|
73,402,064
|
|
|
|
72,056,861
|
|
|
|
71,511,198
|
|
|
|
71,914,972
|
|
|
Non-GAAP dilutive shares excluded from GAAP EPS calculation (1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,711,132
|
|
|
|
—
|
|
|
Pro forma weighted average shares - Diluted
|
|
|
|
73,402,064
|
|
|
|
72,056,861
|
|
|
|
73,222,330
|
|
|
|
71,914,972
|
|
|
|
|
(1) 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.
|
|
GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
|
|
Reconciliation of GAAP to Non-GAAP Outlook
|
|
The following tables reconcile the specific items excluded from GAAP
in the calculation of non-GAAP outlook for the periods indicated
below:
|
|
|
|
(in $ millions)
|
|
|
|
Third Quarter
Fiscal 2016
|
|
|
Full Year
Fiscal 2016
|
|
Outlook reconciliation: GAAP and non-GAAP operating income/(loss)
|
|
|
|
|
|
|
|
|
GAAP operating income/(loss)
|
|
|
|
(11.8) - (7.8)
|
|
|
4.5 - 12.5
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
|
15.4 - 16.4
|
|
|
62.0 - 64.0
|
|
Amortization of intangibles
|
|
|
|
0.4
|
|
|
1.4
|
|
Non-GAAP income from operations
|
|
|
|
4.5 - 8.5
|
|
|
69.0 - 77.0
|
|
|
|
|
|
|
|
|
|
|
Outlook reconciliation: GAAP and non-GAAP net income/(loss)
|
|
|
|
|
|
|
|
|
GAAP net income (loss)
|
|
|
|
(6.6) - (4.4)
|
|
|
1.8 - 6.3
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
|
15.4 - 16.4
|
|
|
62.0 - 64.0
|
|
Amortization of intangibles
|
|
|
|
0.4
|
|
|
1.4
|
|
Tax effect on non-GAAP adjustments
|
|
|
|
(6.6) - (6.1)
|
|
|
(20.0) - (19.1)
|
|
Non-GAAP net income
|
|
|
|
3.1 - 5.8
|
|
|
46.3 - 51.7
|
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