[September 01, 2015] |
|
Guidewire Software Announces Fourth Quarter and Fiscal Year 2015 Financial Results
Guidewire Software, Inc. (NYSE: GWRE), a provider of software products
for property and casualty insurers, today announced its financial
results for the fiscal fourth quarter and fiscal year ended July 31,
2015.
"Fiscal year 2015 and fourth quarter revenue and profitability exceeded
our expectations," said Marcus Ryu, chief executive officer, Guidewire
Software. "We initiated multiple new relationships with large domestic
and international insurers, including five Tier 1 customers, which we
define as insurers which have direct written premiums in excess of five
billion dollars, and we expanded multiple relationships to include our
newer portal and data management offerings. These developments, along
with further traction in cultivating a robust System Integrator partner
community, advanced our ambition of becoming the pre-eminent software
provider to the global P/C industry and continuing to shift our revenue
mix toward recurring licenses."
Ryu continued, "Our vision is to deliver a comprehensive technology
platform for the P/C industry, encompassing core processing, data and
analytics, and digital experience. In fiscal year 2016 we intend to
increase our R&D investments to help fulfill that vision while reducing
our products' total cost of ownership. Our product leadership and
momentum in winning new customers in fiscal year 2015 positions
Guidewire to achieve term license revenue growth of 20% in fiscal year
2016."
Fiscal 2015 Financial Highlights
Revenue
-
Total license revenue, including term and perpetual licenses for
fiscal year 2015 was $179.2 million, an increase of 18% from fiscal
year 2014. Term license revenue was $169.4 million, up 21% in a year
when we faced significant foreign exchange pressure. Revenue from
perpetual licenses was $9.8 million, down 18% which reflects the
Company's focus on engaging with customers through the term license
model. Maintenance revenue was $50.0 million, up 19%. Services revenue
was $151.3 million, down 3%, in line with the Company's outlook and
strategic priority of growing the contribution of our partner
community. Total revenue for the fiscal year ended July 31, 2015 was
$380.5 million, an increase of 9% from fiscal year 2014.
-
Rolling four-quarter recurring term license and maintenance revenue
was $219.4 million, an increase of 21% from July 31, 2014.
Profitability
-
GAAP operating income was $16.5 million for fiscal year 2015, compared
to $18.4 million in fiscal year 2014.
-
Non-GAAP operating income was $69.3 million for fiscal year 2015,
compared to $62.4 million in fiscal year 2014.
-
GAAP net income was $9.9 million for fiscal year 2015, compared to
$14.7 million in fiscal year 2014. GAAP net income per share was
$0.14, based on diluted weighted average shares outstanding of 72.3
million, compared to $0.21 in fiscal year 2014, based on diluted
weighted average shares outstanding of 69.1 million.
-
Non-GAAP net income was $46.5 million for fiscal year 2015, compared
to $43.5 million in fiscal year 2014. Non-GAAP net income per share
was $0.65, based on diluted weighted average shares outstanding of
72.3 million, compared to $0.63 for fiscal year 2014, based on diluted
weighted average shares outstanding of 69.1 million.
Balance Sheet
-
The Company had $677.8 million in cash, cash equivalents and
investments at July 31, 2015, compared to $647.8 million at July 31,
2014. The Company had $63.7 million in cash flow from operations in
fiscal year 2015, compared to cash flow from operations of $75.5
million in fiscal year 2014.
Fourth Quarter Fiscal Year 2015 Financial Highlights
Revenue
-
Total license revenue, including term and perpetual licenses, for the
fourth quarter of fiscal 2015 was $73.4 million, an increase of 11%
from the fourth quarter of fiscal year 2014. Term license revenue was
$68.6 million, a 16% increase from the comparable period in fiscal
year 2014, while revenue from perpetual licenses was $4.8 million, a
decrease of 27%. Maintenance revenue was $13.2 million, an increase of
10%, and services revenue was $39.4 million, a decrease of 3%. Total
revenue for the fourth quarter of fiscal year 2015 was $125.9 million,
an increase of 7% from the comparable period in fiscal year 2014.
Profitability
-
GAAP operating income was $23.5 million for the fourth quarter of
fiscal year 2015, compared to $26.4 million in the comparable period
in fiscal year 2014.
-
Non-GAAP operating income was $37.4 million for the fourth quarter of
fiscal year 2015, compared to $37.6 million in the comparable period
in fiscal year 2014.
-
GAAP net income was $11.9 million for the fourth quarter of fiscal
year 2015, compared to $19.8 million for the comparable period in
fiscal year 2014. GAAP net income per share was $0.16, based on
diluted weighted average shares outstanding of 72.5 million, compared
to $0.28 for the comparable period in fiscal year 2014, based on
diluted weighted average shares outstanding of 71.1 million.
-
Non-GAAP net income was $25.7 million for the fourth quarter of fiscal
year 2015, compared to $26.4 million in the comparable period in
fiscal year 2014. Non-GAAP net income per diluted share was $0.35,
based on diluted weighted average shares outstanding of 72.5 million,
compared to $0.37 for the fourth quarter of fiscal year 2014, based on
diluted weighted average shares outstanding of 71.1 million.
Business Outlook
Guidewire is issuing the following outlook for the first quarter and
fiscal year 2016, based on current expectations:
(in $ millions, except per share outlook)
|
|
|
First Quarter Fiscal Year 2016
|
|
|
|
Full Year Fiscal Year 2016
|
Revenue
|
|
|
78.5 - 82.5
|
|
|
|
405.0 - 415.0
|
License revenue
|
|
|
30.0 - 32.0
|
|
|
|
202.0 - 212.0
|
Maintenance revenue
|
|
|
13.0 - 14.0
|
|
|
|
56.0 - 58.0
|
Services revenue
|
|
|
35.0 - 37.0
|
|
|
|
144.0 - 148.0
|
GAAP operating income/(loss)
|
|
|
(13.3) - (9.3)
|
|
|
|
(1.6) - 8.4
|
Non-GAAP operating income
|
|
|
1.0 - 5.0
|
|
|
|
60.0 - 70.0
|
GAAP net income/(loss)
|
|
|
(4.4) - (3.1)
|
|
|
|
(0.5) - 2.8
|
GAAP net income/(loss) per share
|
|
|
(0.06) - (0.04)
|
|
|
|
(0.01) - 0.04
|
Non-GAAP net income
|
|
|
0.7 - 3.3
|
|
|
|
39.6 - 46.2
|
Non-GAAP net income/(loss) per share
|
|
|
0.01 - 0.05
|
|
|
|
0.54 - 0.63
|
Conference Call Information
What:
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|
|
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Guidewire Software fourth quarter and fiscal year 2015 financial
results conference call
|
When:
|
|
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|
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Tuesday, September 1, 2015
|
Time:
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|
|
2:00 p.m. PT (5:00 p.m. ET)
|
Live Call:
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(877) 419-6600, Domestic
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(719) 325-4789, International
|
Replay:
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(877) 870-5176, Passcode 5715910, Domestic
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(858) 384-5517, Passcode 5715910, 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 earnings per
share and Non-GAAP effective tax rate. 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
earnings 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.
|
GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
July 31, 2015
|
|
|
July 31, 2014
|
ASSETS
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
212,362
|
|
|
|
$
|
148,101
|
|
Short-term investments
|
|
|
359,273
|
|
|
|
296,231
|
|
Accounts receivable
|
|
|
62,062
|
|
|
|
49,839
|
|
Deferred tax assets, current
|
|
|
13,845
|
|
|
|
11,431
|
|
Prepaid expenses and other current assets
|
|
|
14,102
|
|
|
|
10,828
|
|
Total current assets
|
|
|
661,644
|
|
|
|
516,430
|
|
Long-term investments
|
|
|
106,117
|
|
|
|
203,449
|
|
Property and equipment, net
|
|
|
12,160
|
|
|
|
12,607
|
|
Intangible assets, net
|
|
|
3,999
|
|
|
|
5,439
|
|
Deferred tax assets, noncurrent
|
|
|
5,896
|
|
|
|
8,681
|
|
Goodwill
|
|
|
9,205
|
|
|
|
9,205
|
|
Other assets
|
|
|
926
|
|
|
|
1,416
|
|
TOTAL ASSETS
|
|
|
$
|
799,947
|
|
|
|
$
|
757,227
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
8,816
|
|
|
|
$
|
7,030
|
|
Accrued employee compensation
|
|
|
37,235
|
|
|
|
34,912
|
|
Deferred revenues, current
|
|
|
50,766
|
|
|
|
48,937
|
|
Other current liabilities
|
|
|
7,592
|
|
|
|
4,507
|
|
Total current liabilities
|
|
|
104,409
|
|
|
|
95,386
|
|
Deferred revenues, noncurrent
|
|
|
1,800
|
|
|
|
6,395
|
|
Other liabilities
|
|
|
4,350
|
|
|
|
4,760
|
|
Total liabilities
|
|
|
110,559
|
|
|
|
106,541
|
|
STOCKHOLDERS' EQUITY:
|
|
|
|
|
|
|
Common stock
|
|
|
7
|
|
|
|
7
|
|
Additional paid-in capital
|
|
|
662,869
|
|
|
|
629,076
|
|
Accumulated other comprehensive loss
|
|
|
(6,343
|
)
|
|
|
(1,367
|
)
|
Retained earnings
|
|
|
32,855
|
|
|
|
22,970
|
|
Total stockholders' equity
|
|
|
689,388
|
|
|
|
650,686
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
$
|
799,947
|
|
|
|
$
|
757,227
|
|
|
GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
(unaudited, in thousands except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended July 31,
|
|
|
|
|
Fiscal Year Ended July 31,
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
2015
|
|
|
|
2014
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
License
|
|
|
|
$
|
73,395
|
|
|
|
|
$
|
65,909
|
|
|
|
|
|
$
|
179,172
|
|
|
|
|
$
|
151,921
|
Maintenance
|
|
|
|
13,158
|
|
|
|
|
11,919
|
|
|
|
|
|
50,024
|
|
|
|
|
41,888
|
Services
|
|
|
|
39,364
|
|
|
|
|
40,379
|
|
|
|
|
|
151,341
|
|
|
|
|
156,437
|
Total revenues
|
|
|
|
125,917
|
|
|
|
|
118,207
|
|
|
|
|
|
380,537
|
|
|
|
|
350,246
|
Cost of revenues: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
License
|
|
|
|
1,194
|
|
|
|
|
1,154
|
|
|
|
|
|
4,605
|
|
|
|
|
4,442
|
Maintenance
|
|
|
|
2,261
|
|
|
|
|
2,301
|
|
|
|
|
|
9,073
|
|
|
|
|
8,118
|
Services
|
|
|
|
35,974
|
|
|
|
|
35,193
|
|
|
|
|
|
133,506
|
|
|
|
|
136,387
|
Total cost of revenues
|
|
|
|
39,429
|
|
|
|
|
38,648
|
|
|
|
|
|
147,184
|
|
|
|
|
148,947
|
Gross profit: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
License
|
|
|
|
72,201
|
|
|
|
|
64,755
|
|
|
|
|
|
174,567
|
|
|
|
|
147,479
|
Maintenance
|
|
|
|
10,897
|
|
|
|
|
9,618
|
|
|
|
|
|
40,951
|
|
|
|
|
33,770
|
Services
|
|
|
|
3,390
|
|
|
|
|
5,186
|
|
|
|
|
|
17,835
|
|
|
|
|
20,050
|
Total gross profit
|
|
|
|
86,488
|
|
|
|
|
79,559
|
|
|
|
|
|
233,353
|
|
|
|
|
201,299
|
Operating expenses: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
|
26,273
|
|
|
|
|
21,365
|
|
|
|
|
|
93,440
|
|
|
|
|
76,178
|
Sales and marketing
|
|
|
|
25,517
|
|
|
|
|
21,609
|
|
|
|
|
|
82,023
|
|
|
|
|
71,295
|
General and administrative
|
|
|
|
11,202
|
|
|
|
|
10,164
|
|
|
|
|
|
41,397
|
|
|
|
|
35,404
|
Total operating expenses
|
|
|
|
62,992
|
|
|
|
|
53,138
|
|
|
|
|
|
216,860
|
|
|
|
|
182,877
|
Income from operations
|
|
|
|
23,496
|
|
|
|
|
26,421
|
|
|
|
|
|
16,493
|
|
|
|
|
18,422
|
Interest income, net
|
|
|
|
602
|
|
|
|
|
431
|
|
|
|
|
|
2,245
|
|
|
|
|
1,350
|
Other income (expense), net
|
|
|
|
(731
|
)
|
|
|
|
2
|
|
|
|
|
|
(1,998
|
)
|
|
|
|
174
|
Income before provision for income taxes
|
|
|
|
23,367
|
|
|
|
|
26,854
|
|
|
|
|
|
16,740
|
|
|
|
|
19,946
|
Provision for income taxes
|
|
|
|
11,474
|
|
|
|
|
7,097
|
|
|
|
|
|
6,855
|
|
|
|
|
5,225
|
Net income
|
|
|
|
$
|
11,893
|
|
|
|
|
$
|
19,757
|
|
|
|
|
|
$
|
9,885
|
|
|
|
|
$
|
14,721
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.17
|
|
|
|
|
$
|
0.29
|
|
|
|
|
|
$
|
0.14
|
|
|
|
|
$
|
0.22
|
Diluted
|
|
|
|
$
|
0.16
|
|
|
|
|
$
|
0.28
|
|
|
|
|
|
$
|
0.14
|
|
|
|
|
$
|
0.21
|
Shares used in computing earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
70,763,837
|
|
|
|
|
68,805,440
|
|
|
|
|
|
70,075,908
|
|
|
|
|
65,748,896
|
Diluted
|
|
|
|
72,522,026
|
|
|
|
|
71,083,713
|
|
|
|
|
|
72,314,433
|
|
|
|
|
69,112,733
|
(1) Amounts include stock-based compensation expense as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended July 31,
|
|
|
|
Fiscal Year Ended July 31,
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
Stock-based compensation expenses:
|
|
|
|
(in thousands)
|
Cost of license revenue
|
|
|
|
$
|
64
|
|
|
|
|
$
|
43
|
|
|
|
|
$
|
222
|
|
|
|
$
|
184
|
Cost of maintenance revenues
|
|
|
|
279
|
|
|
|
|
225
|
|
|
|
|
1,158
|
|
|
|
797
|
Cost of services revenues
|
|
|
|
3,857
|
|
|
|
|
3,067
|
|
|
|
|
15,022
|
|
|
|
11,929
|
Research and development
|
|
|
|
3,065
|
|
|
|
|
2,351
|
|
|
|
|
10,683
|
|
|
|
9,008
|
Marketing and sales
|
|
|
|
3,041
|
|
|
|
|
2,604
|
|
|
|
|
12,090
|
|
|
|
10,744
|
General and administrative
|
|
|
|
3,189
|
|
|
|
|
2,556
|
|
|
|
|
12,200
|
|
|
|
9,876
|
Total stock-based compensation expenses
|
|
|
|
$
|
13,495
|
|
|
|
|
$
|
10,846
|
|
|
|
|
$
|
51,375
|
|
|
|
$
|
42,538
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended July 31,
|
|
|
|
Fiscal Year Ended July 31,
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
11,893
|
|
|
|
|
$
|
19,757
|
|
|
|
|
$
|
9,885
|
|
|
|
|
$
|
14,721
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
1,930
|
|
|
|
|
1,773
|
|
|
|
|
7,480
|
|
|
|
|
6,751
|
|
Stock-based compensation
|
|
|
13,495
|
|
|
|
|
10,846
|
|
|
|
|
51,375
|
|
|
|
|
42,538
|
|
Excess tax benefit from exercise of stock options and vesting of RSUs
|
|
|
(3,538
|
)
|
|
|
|
(6,569
|
)
|
|
|
|
(3,538
|
)
|
|
|
|
(7,067
|
)
|
Deferred tax assets
|
|
|
8,151
|
|
|
|
|
635
|
|
|
|
|
295
|
|
|
|
|
(2,718
|
)
|
Other noncash items affecting net income
|
|
|
851
|
|
|
|
|
1,362
|
|
|
|
|
4,840
|
|
|
|
|
3,589
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(2,942
|
)
|
|
|
|
8,544
|
|
|
|
|
(12,999
|
)
|
|
|
|
(9,276
|
)
|
Prepaid expenses and other assets
|
|
|
(1,522
|
)
|
|
|
|
815
|
|
|
|
|
(3,178
|
)
|
|
|
|
(1,372
|
)
|
Accounts payable
|
|
|
(1,497
|
)
|
|
|
|
258
|
|
|
|
|
2,266
|
|
|
|
|
393
|
|
Accrued employee compensation
|
|
|
12,003
|
|
|
|
|
10,542
|
|
|
|
|
3,261
|
|
|
|
|
8,463
|
|
Other liabilities
|
|
|
5,262
|
|
|
|
|
4,466
|
|
|
|
|
6,253
|
|
|
|
|
5,288
|
|
Deferred revenues
|
|
|
(11,073
|
)
|
|
|
|
(2,991
|
)
|
|
|
|
(2,263
|
)
|
|
|
|
14,181
|
|
Net cash provided by operating activities
|
|
|
33,013
|
|
|
|
|
49,438
|
|
|
|
|
63,677
|
|
|
|
|
75,491
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of available-for-sale securities
|
|
|
(130,485
|
)
|
|
|
|
(166,414
|
)
|
|
|
|
(491,626
|
)
|
|
|
|
(687,419
|
)
|
Sales and maturities of available-for-sale securities
|
|
|
150,932
|
|
|
|
|
106,103
|
|
|
|
|
520,997
|
|
|
|
|
312,149
|
|
Purchase of property and equipment
|
|
|
(1,225
|
)
|
|
|
|
(1,324
|
)
|
|
|
|
(6,301
|
)
|
|
|
|
(4,993
|
)
|
Acquisition, net of cash acquired
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(157
|
)
|
Net cash provided by (used in) investing activities
|
|
|
19,222
|
|
|
|
|
(61,635
|
)
|
|
|
|
23,070
|
|
|
|
|
(380,420
|
)
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock upon exercise of stock options
|
|
|
1,499
|
|
|
|
|
1,401
|
|
|
|
|
6,294
|
|
|
|
|
8,755
|
|
Taxes remitted on RSU awards vested
|
|
|
(781
|
)
|
|
|
|
(7,145
|
)
|
|
|
|
(27,183
|
)
|
|
|
|
(32,799
|
)
|
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
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(408
|
)
|
Excess tax benefit from exercise of stock options and vesting of RSUs
|
|
|
3,538
|
|
|
|
|
6,569
|
|
|
|
|
3,538
|
|
|
|
|
7,067
|
|
Net cash provided by (used in) financing activities
|
|
|
4,256
|
|
|
|
|
825
|
|
|
|
|
(17,351
|
)
|
|
|
|
372,564
|
|
Effect of foreign exchange rate changes on cash and cash equivalents
|
|
|
(1,071
|
)
|
|
|
|
137
|
|
|
|
|
(5,135
|
)
|
|
|
|
699
|
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
|
55,420
|
|
|
|
|
(11,235
|
)
|
|
|
|
64,261
|
|
|
|
|
68,334
|
|
CASH AND CASH EQUIVALENTS-Beginning of period
|
|
|
156,942
|
|
|
|
|
159,336
|
|
|
|
|
148,101
|
|
|
|
|
79,767
|
|
CASH AND CASH EQUIVALENTS-End of period
|
|
|
$
|
212,362
|
|
|
|
|
$
|
148,101
|
|
|
|
|
$
|
212,362
|
|
|
|
|
$
|
148,101
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 July 31,
|
|
|
|
Fiscal Year Ended July 31,
|
Income from operations reconciliation:
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
2015
|
|
|
|
2014
|
GAAP net income from operations
|
|
|
|
$
|
23,496
|
|
|
|
$
|
26,421
|
|
|
|
|
$
|
16,493
|
|
|
|
$
|
18,422
|
|
Non-GAAP adjustments (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
|
13,495
|
|
|
|
10,846
|
|
|
|
|
51,375
|
|
|
|
42,538
|
|
Amortization of intangibles
|
|
|
|
360
|
|
|
|
360
|
|
|
|
|
1,440
|
|
|
|
1,440
|
|
Non-GAAP net income from operations
|
|
|
|
$
|
37,351
|
|
|
|
$
|
37,627
|
|
|
|
|
$
|
69,308
|
|
|
|
$
|
62,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
|
|
|
|
$
|
11,893
|
|
|
|
$
|
19,757
|
|
|
|
|
$
|
9,885
|
|
|
|
$
|
14,721
|
|
Non-GAAP adjustments (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
|
13,495
|
|
|
|
10,846
|
|
|
|
|
51,375
|
|
|
|
42,538
|
|
Amortization of intangibles
|
|
|
|
360
|
|
|
|
360
|
|
|
|
|
1,440
|
|
|
|
1,440
|
|
Tax effect on non-GAAP adjustments
|
|
|
|
(81
|
)
|
|
|
(4,586
|
)
|
|
|
|
(16,190
|
)
|
|
|
(15,202
|
)
|
Non-GAAP net income
|
|
|
|
$
|
25,667
|
|
|
|
$
|
26,377
|
|
|
|
|
$
|
46,510
|
|
|
|
$
|
43,497
|
|
|
|
|
Three Months Ended July 31,
|
|
|
Fiscal Year Ended July 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
Tax provision (benefits) reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP tax provision (benefits)
|
|
|
$
|
11,474
|
|
|
49
|
%
|
|
|
$
|
7,097
|
|
|
26
|
%
|
|
|
$
|
6,855
|
|
|
41
|
%
|
|
|
$
|
5,225
|
|
|
26
|
%
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
3,775
|
|
|
|
|
|
3,473
|
|
|
|
|
|
15,823
|
|
|
|
|
|
13,618
|
|
|
|
Amortization of intangibles
|
|
|
101
|
|
|
|
|
|
115
|
|
|
|
|
|
444
|
|
|
|
|
|
461
|
|
|
|
ISO deduction
|
|
|
103
|
|
|
|
|
|
62
|
|
|
|
|
|
389
|
|
|
|
|
|
(37
|
)
|
|
|
Tax effect on GAAP profit before taxes due to different tax rates
between GAAP and non-GAAP
|
|
|
(3,898
|
)
|
|
|
|
|
936
|
|
|
|
|
|
(466
|
)
|
|
|
|
|
1,160
|
|
|
|
Non-GAAP tax provision
|
|
|
$
|
11,555
|
|
|
31
|
%
|
|
|
$
|
11,683
|
|
|
31
|
%
|
|
|
$
|
23,045
|
|
|
33
|
%
|
|
|
$
|
20,427
|
|
|
32
|
%
|
(1) Adjustments relate to amortization of acquired
intangibles and stock-based compensation recognized during the period
for GAAP purposes and the tax benefit resulting from these adjustments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
|
Reconciliation of GAAP to Non-GAAP Operating Results
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 July 31,
|
|
|
|
Fiscal Year Ended July 31,
|
Earnings per share reconciliation:
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
GAAP earnings per share - Diluted
|
|
|
|
$
|
0.16
|
|
|
|
$
|
0.28
|
|
|
|
|
$
|
0.14
|
|
|
|
|
$
|
0.21
|
|
Amortization of intangibles acquired in business combinations
|
|
|
|
-
|
|
|
|
0.01
|
|
|
|
|
0.02
|
|
|
|
|
0.02
|
|
Stock-based compensation
|
|
|
|
0.19
|
|
|
|
0.15
|
|
|
|
|
0.71
|
|
|
|
|
0.62
|
|
Less tax benefit of non GAAP items
|
|
|
|
-
|
|
|
|
(0.07
|
)
|
|
|
|
(0.22
|
)
|
|
|
|
(0.22
|
)
|
Non-GAAP dilutive shares excluded from GAAP EPS calculation (1)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Non-GAAP earnings per share - Diluted
|
|
|
|
$
|
0.35
|
|
|
|
$
|
0.37
|
|
|
|
|
$
|
0.65
|
|
|
|
|
$
|
0.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended July 31,
|
|
|
|
Fiscal Year Ended July 31,
|
Shares used in computing non-GAAP per share amounts:
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
Weighted average shares - Diluted
|
|
|
|
72,522,026
|
|
|
|
71,083,713
|
|
|
|
|
72,314,433
|
|
|
|
|
69,112,733
|
|
Non-GAAP dilutive shares excluded from GAAP EPS calculation (1)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Pro forma weighted average shares - Diluted
|
|
|
|
72,522,026
|
|
|
|
71,083,713
|
|
|
|
|
72,314,433
|
|
|
|
|
69,112,733
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150901006630/en/
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