Guidewire Software Announces Fourth Quarter and Fiscal Year 2021 Financial Results

Guidewire Software, Inc. (NYSE: GWRE), the platform Property and Casualty (“P&C”) insurers trust to engage, innovate, and grow efficiently, today announced its financial results for the fiscal quarter and fiscal year ended July 31, 2021.

"We ended fiscal year 2021 with great momentum across Guidewire Cloud" said Mike Rosenbaum, chief executive officer, Guidewire Software. "We closed a record 17 core cloud deals in the fourth quarter, including 16 for InsuranceSuite, and strength across cloud migrations, new deals, and expansions all pushed ARR, total revenue, and profitability above our guidance ranges. We enter the new fiscal year with confidence in our cloud vision, strategy, and execution, and are well positioned to drive increasing ARR growth going forward."

Fiscal Year 2021 Financial Highlights

Revenue

  • Total revenue for fiscal year 2021 was $743.3 million, an increase of less than 1% from fiscal year 2020. Subscription and support revenue was $252.4 million, an increase of 24%; license revenue was $303.8 million, a decrease of 8%; and services revenue was $187.1 million, a decrease of 10%.
  • As of July 31, 2021, annual recurring revenue, or ARR, was $582 million, or $575 million based on currency exchange rates as of July 31, 2020. We measure ARR on a constant currency basis during the fiscal year and revalue ARR at year end to current currency rates. ARR grew in fiscal year 2021 by 13%, or 12% on a constant currency basis.

Profitability

  • GAAP loss from operations was $105.6 million for fiscal year 2021, compared with $23.9 million for fiscal year 2020.
  • Non-GAAP income from operations was $26.0 million for fiscal year 2021, compared with $104.8 million for fiscal year 2020.
  • GAAP net loss was $66.5 million for fiscal year 2021, compared with $27.2 million for fiscal year 2020. GAAP net loss per share was $0.79, based on diluted weighted average shares outstanding of 83.6 million, compared with net loss per share of $0.33 for fiscal year 2020, based on diluted weighted average shares outstanding of 82.9 million.
  • Non-GAAP net income was $41.3 million for fiscal year 2021, compared with $105.8 million for fiscal year 2020. Non-GAAP net income per share was $0.49, based on diluted weighted average shares outstanding of 84.4 million, compared with net income per share of $1.26 for fiscal year 2020, based on diluted weighted average shares outstanding of 83.7 million.

Liquidity

  • The Company had $1.3 billion in cash, cash equivalents, and investments at July 31, 2021, compared to $1.4 billion at July 31, 2020. The Company generated $111.6 million in cash from operations and had positive free cash flow of $82.7 million during fiscal year 2021.
  • During fiscal year 2021, the Company used $162.5 million to repurchase 1.5 million shares of its common stock.

Fourth Quarter Fiscal Year 2021 Financial Highlights

Revenue

  • Total revenue for the fourth quarter of fiscal year 2021 was $229.4 million, a decrease of 6% from the same quarter in fiscal year 2020. Subscription and support revenue was $70.0 million, an increase of 29%; license revenue was $109.7 million, a decrease of 20%; services revenue was $49.8 million, a decrease of 4%.

Profitability

  • GAAP loss from operations was $0.1 million for the fourth quarter of fiscal year 2021, compared with GAAP income from operations of $44.3 million for the same quarter in fiscal year 2020.
  • Non-GAAP income from operations was $32.0 million for the fourth quarter of fiscal year 2021, compared with $76.4 million for the same quarter in fiscal year 2020.
  • GAAP net loss was $1.0 million for the fourth quarter of fiscal year 2021, compared with net income of $38.8 million for the same quarter in fiscal year 2020. GAAP net loss per share was $0.01, based on diluted weighted average shares outstanding of 83.2 million, compared with net income per share of $0.46 for the same quarter in fiscal year 2020, based on diluted weighted average shares outstanding of 83.9 million.
  • Non-GAAP net income was $31.1 million for the fourth quarter of fiscal year 2021, compared with net income of $69.5 million for the same quarter in fiscal year 2020. Non-GAAP net income per share was $0.37, based on diluted weighted average shares outstanding of 83.7 million, compared with net income per share of $0.83 for the same quarter in fiscal year 2020, based on diluted weighted average shares outstanding of 83.9 million.

Liquidity

  • During the fourth quarter of fiscal year 2021, the Company used $38.8 million to repurchase 0.4 million shares of its common stock.

Business Outlook

Guidewire is issuing the following outlook for the first quarter of fiscal year 2022 based on current expectations:

  • ARR between $586 million and $590 million
  • Total revenue between $162 million and $166 million
  • Operating income (loss) between $(60) million and $(56) million
  • Non-GAAP operating income (loss) between $(27) million and $(23) million

Guidewire is issuing the following updated outlook for fiscal year 2022 based on current expectations:

  • ARR between $657 million and $667 million
  • Total revenue between $780 million and $790 million
  • Operating income (loss) between $(180) million and $(170) million
  • Non-GAAP operating income (loss) between $(38) million and $(28) million
  • Operating cash flow between $30 million and $40 million

Conference Call Information

What:

 

Guidewire Software Fourth Quarter and Fiscal Year 2021 Financial Results Conference Call

When:

 

Thursday, September 2, 2021

Time:

 

2:00 p.m. PT (5:00 p.m. ET)

Live Call:

 

(877) 705-6003, Domestic

 

 

(201) 493-6725, International 

Replay:

 

(844) 512-2921, Passcode 13722593, Domestic

 

 

(412) 317-6671, Passcode 13722593, International

Webcast:

 

http://ir.guidewire.com/ (live and replay) 

The webcast will be archived on Guidewire’s website (www.guidewire.com) for a period of three months.

Non-GAAP Financial Measures and Other Metrics

This press release contains the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP income tax provision (benefit), non-GAAP net income (loss) per share, and free cash flow. Non-GAAP gross profit and non-GAAP income (loss) from operations exclude stock-based compensation, amortization of intangibles, and COVID-19 Canada Emergency Wage Subsidy benefits. Non-GAAP net income (loss), non-GAAP income tax provision (benefit), and non-GAAP net income (loss) per share also exclude the amortization of debt discount and issuance costs from our convertible notes, changes in fair value of our strategic investments, and the related tax effects of the non-GAAP adjustments. Free cash flow consists of net cash flow provided by (used in) operating activities less cash used for purchases of property and equipment and capitalized software development costs. These Non-GAAP measures enable us to analyze our financial performance without the effects of certain non-cash items such as depreciation, amortization, stock-based compensation, and changes in fair value of strategic investments.

Annual recurring revenue ("ARR") is used to quantify the annualized recurring value outlined in active customer contracts at the end of a reporting period. ARR includes the annualized recurring value of term licenses, subscription agreements, support contracts, and hosting agreements based on customer contracts, which may not be the same as the timing and amount of revenue recognized. All components of the licensing and other arrangements that are not expected to recur (primarily perpetual licenses and professional services) are excluded. In some arrangements with multiple performance obligations, a portion of recurring license and support or subscription contract value is allocated to services revenue for revenue recognition purposes. This allocation only impacts the initial term of the contract and does not impact ARR. This means that as we increase arrangements with multiple performance obligations that include services at discounted rates, more of the total contract value will be recognized as services revenue. In fiscal year 2021, the recurring license and support or subscription contract value recognized as services revenue was $5.5 million.

Guidewire believes that these non-GAAP financial measures and other metrics 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 and other metrics 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 and other metrics 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 and other metrics 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. 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 the financial tables at the end of this press release, and not to rely on any single financial measure to evaluate the Company’s business.

About Guidewire Software

Guidewire is the platform P&C insurers trust to engage, innovate, and grow efficiently. We combine digital, core, analytics, and AI to deliver our platform as a cloud service. More than 400 insurers, from new ventures to the largest and most complex in the world, run on Guidewire.

As a partner to our customers, we continually evolve to enable their success. We are proud of our unparalleled implementation track record, with 1,000+ successful projects, supported by the largest R&D team and partner ecosystem in the industry. Our marketplace provides hundreds of applications that accelerate integration, localization, and innovation.

For more information, please visit www.guidewire.com and follow us on twitter: @Guidewire_PandC.

NOTE: For information about Guidewire’s trademarks, visit https://www.guidewire.com/legal-notices.

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 and our future business momentum related to our cloud vision and strategy. 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: quarterly and annual operating results may fluctuate more than expected; the impact of the COVID-19 pandemic on our employees and our business and the businesses of our customers, system integrator ("SI") partners, and vendors; seasonal and other variations related to our customer agreements and related 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 revenue; our ability to successfully manage any changes to our business model, including the transition of our products to cloud offerings and the costs related to cloud operations; our products or cloud-based services may experience data security breaches; we face intense competition in our market; our services revenue produces lower gross margins than our license, subscription and support revenue; our product development and sales cycles are lengthy and may be affected by factors outside of our control; changes in accounting guidance, such as revenue recognition, which have and may cause us to experience greater volatility in our quarterly and annual results; assertions by third parties that we violate their intellectual property rights could substantially harm our business; weakened global economic conditions may adversely affect the P&C insurance industry including the rate of information technology spending; general political or destabilizing events, including war, conflict or acts of terrorism; our ability to sell our products is highly dependent on the quality of our professional services and SI partners; the risk of losing key employees; the challenges of international operations, including changes in foreign exchange rates; 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,

2021

 

July 31,

2020

ASSETS

 

 

 

CURRENT ASSETS:

 

 

 

Cash and cash equivalents

$

384,910

 

 

$

366,969

 

Short-term investments

734,517

 

 

766,527

 

Accounts receivable, net

104,068

 

 

114,242

 

Unbilled accounts receivable, net

79,061

 

 

49,491

 

Prepaid expenses and other current assets

52,729

 

 

45,989

 

Total current assets

1,355,285

 

 

1,343,218

 

Long-term investments

227,164

 

 

300,771

 

Unbilled accounts receivable, net

24,361

 

 

34,737

 

Property and equipment, net

80,061

 

 

65,235

 

Operating lease assets

97,447

 

 

103,797

 

Intangible assets, net

19,743

 

 

39,708

 

Goodwill

340,877

 

 

340,877

 

Deferred tax assets, net

138,428

 

 

101,565

 

Other assets

38,479

 

 

34,944

 

TOTAL ASSETS

$

2,321,845

 

 

$

2,364,852

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

CURRENT LIABILITIES:

 

 

 

Accounts payable

$

27,830

 

 

$

22,634

 

Accrued employee compensation

102,137

 

 

58,547

 

Deferred revenue, net

138,699

 

 

118,311

 

Other current liabilities

31,648

 

 

25,706

 

Total current liabilities

300,314

 

 

225,198

 

Lease liabilities

115,374

 

 

119,408

 

Convertible senior notes, net

343,825

 

 

330,208

 

Deferred revenue, net

7,237

 

 

14,685

 

Other liabilities

10,201

 

 

18,585

 

Total liabilities

776,951

 

 

708,084

 

STOCKHOLDERS’ EQUITY:

 

 

 

Common stock

8

 

 

8

 

Additional paid-in capital

1,617,204

 

 

1,499,050

 

Accumulated other comprehensive income (loss)

(6,218)

 

 

(5,246)

 

Retained earnings (accumulated deficit)

(66,100)

 

 

162,956

 

Total stockholders’ equity

1,544,894

 

 

1,656,768

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

2,321,845

 

 

$

2,364,852

 

GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands except share and per share data)

 

 

 

 

 

 

 

 

 

Three Months Ended July 31,

 

Twelve Months Ended July 31,

 

2021

 

2020

 

2021

 

2020

Revenue:

 

 

 

 

 

 

 

Subscription and support

$

69,993

 

 

$

54,120

 

 

$

252,358

 

 

$

203,473

 

License

109,660

 

 

137,567

 

 

303,792

 

 

331,554

 

Services

49,782

 

 

51,987

 

 

187,117

 

 

207,280

 

Total revenue

229,435

 

 

243,674

 

 

743,267

 

 

742,307

 

Cost of revenue(1):

 

 

 

 

 

 

 

Subscription and support

46,535

 

 

33,491

 

 

164,983

 

 

117,158

 

License

2,807

 

 

3,539

 

 

10,569

 

 

11,566

 

Services

50,778

 

 

50,781

 

 

199,502

 

 

209,291

 

Total cost of revenue

100,120

 

 

87,811

 

 

375,054

 

 

338,015

 

Gross profit:

 

 

 

 

 

 

 

Subscription and support

23,458

 

 

20,629

 

 

87,375

 

 

86,315

 

License

106,853

 

 

134,028

 

 

293,223

 

 

319,988

 

Services

(996)

 

 

1,206

 

 

(12,385)

 

 

(2,011)

 

Total gross profit

129,315

 

 

155,863

 

 

368,213

 

 

404,292

 

Operating expenses(1):

 

 

 

 

 

 

 

Research and development

59,530

 

 

52,232

 

 

219,494

 

 

200,575

 

Sales and marketing

43,805

 

 

36,830

 

 

160,544

 

 

142,420

 

General and administrative

26,064

 

 

22,460

 

 

93,759

 

 

85,183

 

Total operating expenses

129,399

 

 

111,522

 

 

473,797

 

 

428,178

 

Income (loss) from operations

(84)

 

 

44,341

 

 

(105,584)

 

 

(23,886)

 

Interest income

1,032

 

 

4,039

 

 

7,395

 

 

24,705

 

Interest expense

(4,742)

 

 

(4,549)

 

 

(18,711)

 

 

(17,945)

 

Other income (expense), net

(2,013)

 

 

5,584

 

 

12,619

 

 

(7,205)

 

Income (loss) before provision for (benefit from) income taxes

(5,807)

 

 

49,415

 

 

(104,281)

 

 

(24,331)

 

Provision for (benefit from) income taxes

(4,775)

 

 

10,640

 

 

(37,774)

 

 

2,867

 

Net income (loss)

$

(1,032)

 

 

$

38,775

 

 

$

(66,507)

 

 

$

(27,198)

 

Net income (loss) per share:

 

 

 

 

 

 

 

Basic

$

(0.01)

 

 

$

0.46

 

 

$

(0.79)

 

 

$

(0.33)

 

Diluted

$

(0.01)

 

 

$

0.46

 

 

$

(0.79)

 

 

$

(0.33)

 

Shares used in computing net income (loss) per share:

 

 

 

 

 

 

 

Basic

83,234,153

 

 

83,314,410

 

 

83,577,375

 

 

82,855,392

 

Diluted

83,234,153

 

 

83,947,187

 

 

83,577,375

 

 

82,855,392

 

(1)Amounts include stock-based compensation expense as follows:

 

Three Months Ended July 31,

 

Twelve Months Ended July 31,

 

2021

 

2020

 

2021

 

2020

 

(unaudited, in thousands)

Stock-based compensation expense:

 

 

 

 

 

 

 

Cost of subscription and support revenue

$

2,895

 

 

$

2,070

 

 

$

11,231

 

 

$

7,575

 

Cost of license revenue

191

 

 

224

 

 

770

 

 

769

 

Cost of services revenue

5,293

 

 

5,153

 

 

21,809

 

 

20,816

 

Research and development

7,743

 

 

6,975

 

 

29,524

 

 

26,324

 

Sales and marketing

6,450

 

 

5,117

 

 

25,820

 

 

21,260

 

General and administrative

6,234

 

 

6,203

 

 

25,855

 

 

25,073

 

Total stock-based compensation expense

$

28,806

 

 

$

25,742

 

 

$

115,009

 

 

$

101,817

 

GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)

 

 

 

 

 

 

 

 

 

Three Months Ended July 31,

 

Twelve Months Ended July 31,

 

2021

 

2020

 

2021

 

2020

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

Net income (loss)

$

(1,032)

 

 

$

38,775

 

 

$

(66,507)

 

 

$

(27,198)

 

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

7,927

 

 

10,386

 

 

36,955

 

 

42,641

 

Amortization of debt discount and issuance costs

3,474

 

 

3,288

 

 

13,617

 

 

12,886

 

Amortization of contract costs

2,944

 

 

4,282

 

 

11,442

 

 

9,892

 

Stock-based compensation

28,806

 

 

25,742

 

 

115,009

 

 

101,817

 

Changes to allowance for credit losses and revenue reserves

216

 

 

177

 

 

226

 

 

367

 

Deferred income tax

(5,495)

 

 

(813)

 

 

(35,789)

 

 

(11,859)

 

Amortization of premium (accretion of discount) on available-for-sale securities, net

1,645

 

 

484

 

 

6,567

 

 

(1,882)

 

Changes in fair value of strategic investments

 

 

 

 

 

 

10,672

 

Other non-cash items affecting net income (loss)

118

 

 

38

 

 

863

 

 

739

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

(32,555)

 

 

(34,302)

 

 

10,820

 

 

23,878

 

Unbilled accounts receivable

28,693

 

 

6,615

 

 

(19,194)

 

 

(38,125)

 

Prepaid expenses and other assets

(12,177)

 

 

(8,417)

 

 

(16,764)

 

 

(18,564)

 

Operating lease assets

3,366

 

 

(17,895)

 

 

6,350

 

 

(10,784)

 

Accounts payable

3,745

 

 

4,471

 

 

3,627

 

 

(1,209)

 

Accrued employee compensation

25,075

 

 

9,662

 

 

41,526

 

 

(15,624)

 

Deferred revenue

51,021

 

 

26,900

 

 

12,940

 

 

1,165

 

Lease liabilities

(3,374)

 

 

21,312

 

 

(3,346)

 

 

18,678

 

Other liabilities

5,957

 

 

16,454

 

 

(6,755)

 

 

15,576

 

Net cash provided by (used in) operating activities

108,354

 

 

107,159

 

 

111,587

 

 

113,066

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

Purchases of available-for-sale securities

(274,873)

 

 

(431,443)

 

 

(1,033,095)

 

 

(1,280,755)

 

Sales of available-for-sale securities

(4,097)

 

 

40,632

 

 

123,234

 

 

134,050

 

Maturities of available-for-sale securities

319,731

 

 

357,179

 

 

1,005,290

 

 

1,168,720

 

Purchases of property and equipment

(6,596)

 

 

(2,411)

 

 

(19,008)

 

 

(21,377)

 

Capitalized software development costs

(2,227)

 

 

(1,010)

 

 

(9,846)

 

 

(4,283)

 

Acquisition of strategic investments

(384)

 

 

(2,156)

 

 

(2,384)

 

 

(2,156)

 

Net cash provided by (used in) investing activities

31,554

 

 

(39,209)

 

 

64,191

 

 

(5,801)

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

Proceeds from issuance of common stock upon exercise of stock options

10

 

 

1,878

 

 

1,932

 

 

4,955

 

Repurchase and retirement of common stock

(38,742)

 

 

 

 

(161,319)

 

 

 

Net cash provided by (used in) financing activities

(38,732)

 

 

1,878

 

 

(159,387)

 

 

4,955

 

Effect of foreign exchange rate changes on cash and cash equivalents

(714)

 

 

3,326

 

 

1,550

 

 

648

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

100,462

 

 

73,154

 

 

17,941

 

 

112,868

 

CASH AND CASH EQUIVALENTS—Beginning of period

284,448

 

 

293,815

 

 

366,969

 

 

254,101

 

CASH AND CASH EQUIVALENTS—End of period

$

384,910

 

 

$

366,969

 

 

$

384,910

 

 

$

366,969

 

 

GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES

Reconciliation of GAAP to Non-GAAP Financial Measures

(unaudited, in thousands)

 

 

 

 

 

 

 

 

The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP financial measures for the periods indicated below:

 

Three Months Ended July 31,

 

Twelve Months Ended July 31,

 

2021

 

2020

 

2021

 

2020

Gross profit reconciliation:

 

 

 

 

 

 

 

GAAP gross profit

$

129,315

 

 

$

155,863

 

 

$

368,213

 

 

$

404,292

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

Stock-based compensation

8,379

 

 

7,447

 

 

33,810

 

 

29,160

 

Amortization of intangibles

1,820

 

 

4,526

 

 

13,175

 

 

19,221

 

COVID-19 Canada Emergency Wage Subsidy benefit (1)

(56)

 

 

 

 

(1,975)

 

 

 

Non-GAAP gross profit

$

139,458

 

 

$

167,836

 

 

$

413,223

 

 

$

452,673

 

 

 

 

 

 

 

 

 

Income (loss) from operations reconciliation:

 

 

 

 

 

 

 

GAAP income (loss) from operations

$

(84)

 

 

$

44,341

 

 

$

(105,584)

 

 

$

(23,886)

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

Stock-based compensation

28,806

 

 

25,742

 

 

115,009

 

 

101,817

 

Amortization of intangibles

3,398

 

 

6,323

 

 

19,965

 

 

26,834

 

COVID-19 Canada Emergency Wage Subsidy benefit (1)

(87)

 

 

 

 

(3,396)

 

 

 

Non-GAAP income (loss) from operations

$

32,033

 

 

$

76,406

 

 

$

25,994

 

 

$

104,765

 

 

 

 

 

 

 

 

 

Net income (loss) reconciliation:

 

 

 

 

 

 

 

GAAP net income (loss)

$

(1,032)

 

 

$

38,775

 

 

$

(66,507)

 

 

$

(27,198)

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

Stock-based compensation

28,806

 

 

25,742

 

 

115,009

 

 

101,817

 

Amortization of intangibles

3,398

 

 

6,323

 

 

19,965

 

 

26,834

 

Amortization of debt discount and issuance costs

3,474

 

 

3,288

 

 

13,617

 

 

12,886

 

Changes in fair value of strategic investment (2)

 

 

 

 

 

 

10,672

 

COVID-19 Canada Emergency Wage Subsidy benefit (1)

(87)

 

 

 

 

(3,396)

 

 

 

Tax impact of non-GAAP adjustments (3)

(3,472)

 

 

(4,598)

 

 

(37,379)

 

 

(19,243)

 

Non-GAAP net income (loss)

$

31,087

 

 

$

69,530

 

 

$

41,309

 

 

$

105,768

 

 

 

 

 

 

 

 

 

Tax provision (benefit) reconciliation:

 

 

 

 

 

 

 

GAAP tax provision (benefit)

$

(4,775)

 

 

$

10,640

 

 

$

(37,774)

 

 

$

2,867

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

Stock-based compensation

(1,260)

 

 

4,629

 

 

(20,979)

 

 

16,453

 

Amortization of intangibles

(149)

 

 

1,137

 

 

(4,220)

 

 

4,334

 

Amortization of debt discount and issuance costs

(152)

 

 

591

 

 

(2,555)

 

 

2,080

 

Changes in fair value of strategic investment (2)

 

 

 

 

 

 

1,418

 

COVID-19 Canada Emergency Wage Subsidy benefit (1)

4

 

 

 

 

(135)

 

 

 

Tax impact of non-GAAP adjustments (3)

5,029

 

 

(1,759)

 

 

65,268

 

 

(5,042)

 

Non-GAAP tax provision (benefit)

$

(1,303)

 

 

$

15,238

 

 

$

(395)

 

 

$

22,110

 

(1) Effective the second fiscal quarter of 2021, the COVID-19 Canada Emergency Wage Subsidy benefit was included as a non-GAAP adjustment. Prior to the second fiscal quarter of 2021, this program was unavailable.

(2) Effective the third fiscal quarter of 2020, changes in fair value of strategic investments are excluded from non-GAAP measures. Prior to the third fiscal quarter of 2020, there were no changes in fair value of strategic investments in any periods presented.

(3) Adjustments reflect the tax benefit (provision) resulting from all non-GAAP adjustments.

GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES

Reconciliation of GAAP to Non-GAAP Financial Measures

(unaudited, in thousands except per share amounts)

 

 

 

 

 

 

 

 

The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP financial measures for the periods indicated below:

 

Three Months Ended July 31,

 

Twelve Months Ended July 31,

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

Net income (loss) per share reconciliation:

 

 

 

 

 

 

 

GAAP net income (loss) per share — diluted

$

(0.01)

 

 

$

0.46

 

 

$

(0.79)

 

 

$

(0.33)

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

Stock-based compensation

0.35

 

 

0.31

 

 

1.39

 

 

1.23

 

Amortization of intangibles

0.04

 

 

0.08

 

 

0.25

 

 

0.33

 

Amortization of debt discount and issuance costs

0.04

 

 

0.04

 

 

0.16

 

 

0.16

 

Changes in fair value of strategic investment (1)

 

 

 

 

 

 

0.13

 

COVID-19 Canada Emergency Wage Subsidy benefit (2)

 

 

 

 

(0.04)

 

 

 

Tax impact of non-GAAP adjustments (3)

(0.04)

 

 

(0.05)

 

 

(0.45)

 

 

(0.23)

 

Non-GAAP dilutive shares excluded from GAAP net income (loss) per share calculation (4)

(0.01)

 

 

(0.01)

 

 

(0.03)

 

 

(0.03)

 

Non-GAAP net income (loss) per share — diluted

$

0.37

 

 

$

0.83

 

 

$

0.49

 

 

$

1.26

 

 

 

 

 

 

 

 

 

Shares used in computing Non-GAAP income (loss) per share amounts:

 

 

 

 

 

 

 

GAAP weighted average shares — diluted

83,234,153

 

 

83,947,187

 

 

83,577,375

 

 

82,855,392

 

Non-GAAP dilutive shares excluded from GAAP income (loss) per share calculation (4)

426,718

 

 

 

 

805,747

 

 

834,002

 

Pro forma weighted average shares — diluted

83,660,871

 

 

83,947,187

 

 

84,383,122

 

 

83,689,394

 

(1) Effective the third fiscal quarter of 2020, changes in fair value of strategic investments are excluded from non-GAAP measures. Prior to the third fiscal quarter of 2020, there were no changes in fair value of strategic investments in any periods presented.

(2) Effective the second fiscal quarter of 2021, the COVID-19 Canada Emergency Wage Subsidy benefit was included as a non-GAAP adjustment. Prior to the second fiscal quarter of 2021, this program was unavailable.

(3) Adjustments reflect the impact on the tax benefit (provision) resulting from all non-GAAP adjustments.

(4) Due to the occurrence of a net loss on a GAAP basis, potentially dilutive securities were excluded from the calculation of GAAP net income (loss) per share, as they would have an anti-dilutive effect. However, these shares have a dilutive effect on non-GAAP net income (loss) per share and, therefore, are included in the non-GAAP net income (loss) per share calculation.

 

Twelve Months Ended July 31,

 

2021

 

2020

Free cash flow:

 

 

 

Net cash provided by (used in) operating activities

$

111,587

 

 

$

113,066

 

Purchases of property and equipment

(19,008)

 

 

(21,377)

 

Capitalized software development costs

(9,846)

 

 

(4,283)

 

Free cash flow

$

82,733

 

 

$

87,406

 

GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES

Reconciliation of GAAP to Non-GAAP Outlook

The following tables reconcile the specific items excluded from GAAP outlook in the calculation of non-GAAP outlook for the periods indicated below:

(in $ millions)

 

First Quarter Fiscal

Year 2022

 

Fiscal Year 2022

Income (loss) from operations outlook reconciliation:

 

 

 

 

 

 

 

 

GAAP income (loss) from operations

 

$(60)

$(56)

 

$(180)

$(170)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Stock-based compensation

 

30

30

 

131

131

Amortization of intangibles

 

3

3

 

11

11

Non-GAAP income (loss) from operations

 

$(27)

$(23)

 

$(38)

$(28)

 

 

 

 

 

 

 

 

 

 

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.