Guidewire Software Announces Fourth Quarter and Fiscal Year 2021 Financial Results
Guidewire Software (GWRE) reported its fiscal Q4 and year-end results for 2021, highlighting a total revenue of $743.3 million, up less than 1% year-over-year. Subscription revenue rose 24% to $252.4 million, while license and services revenue fell 8% and 10%, respectively. The company experienced a GAAP net loss of $66.5 million, compared to $27.2 million in FY 2020. Annual recurring revenue (ARR) grew by 13% to $582 million. Looking ahead, GWRE expects FY 2022 ARR between $657 million and $667 million.
- ARR increased by 13% to $582 million in FY 2021.
- Subscription revenue grew 24% to $252.4 million.
- Closed a record 17 core cloud deals in Q4 2021.
- GAAP loss from operations reached $105.6 million, up from $23.9 million in FY 2020.
- Total revenue for Q4 2021 decreased by 6% year-over-year to $229.4 million.
- License revenue fell 20% in Q4 2021.
"We ended fiscal year 2021 with great momentum across Guidewire Cloud" said
Fiscal Year 2021 Financial Highlights
Revenue
-
Total revenue for fiscal year 2021 was
$743.3 million 1% from fiscal year 2020. Subscription and support revenue was$252.4 million 24% ; license revenue was$303.8 million 8% ; and services revenue was$187.1 million 10% . -
As of
July 31, 2021 , annual recurring revenue, or ARR, was$582 million $575 million 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 by13% , or12% on a constant currency basis.
Profitability
-
GAAP loss from operations was
$105.6 million $23.9 million -
Non-GAAP income from operations was
$26.0 million $104.8 million -
GAAP net loss was
$66.5 million $27.2 million $0.79 $0.33 -
Non-GAAP net income was
$41.3 million $105.8 million $0.49 $1.26
Liquidity
-
The Company had
$1.3 billion July 31, 2021 , compared to$1.4 billion July 31, 2020 . The Company generated$111.6 million $82.7 million -
During fiscal year 2021, the Company used
$162.5 million
Fourth Quarter Fiscal Year 2021 Financial Highlights
Revenue
-
Total revenue for the fourth quarter of fiscal year 2021 was
$229.4 million 6% from the same quarter in fiscal year 2020. Subscription and support revenue was$70.0 million 29% ; license revenue was$109.7 million 20% ; services revenue was$49.8 million 4% .
Profitability
-
GAAP loss from operations was
$0.1 million $44.3 million -
Non-GAAP income from operations was
$32.0 million $76.4 million -
GAAP net loss was
$1.0 million $38.8 million $0.01 $0.46 -
Non-GAAP net income was
$31.1 million $69.5 million $0.37 $0.83
Liquidity
-
During the fourth quarter of fiscal year 2021, the Company used
$38.8 million
Business Outlook
Guidewire is issuing the following outlook for the first quarter of fiscal year 2022 based on current expectations:
-
ARR between
$586 million $590 million -
Total revenue between
$162 million $166 million -
Operating income (loss) between
$(60) million $(56) million -
Non-GAAP operating income (loss) between
$(27) million $(23) million
Guidewire is issuing the following updated outlook for fiscal year 2022 based on current expectations:
-
ARR between
$657 million $667 million -
Total revenue between
$780 million $790 million -
Operating income (loss) between
$(180) million $(170) million -
Non-GAAP operating income (loss) between
$(38) million $(28) million -
Operating cash flow between
$30 million $40 million
Conference Call Information
What: |
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Guidewire Software Fourth Quarter and Fiscal Year 2021 Financial Results Conference Call |
When: |
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Time: |
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Live Call: |
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(877) 705-6003, Domestic |
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(201) 493-6725, International |
Replay: |
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(844) 512-2921, Passcode 13722593, Domestic |
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(412) 317-6671, Passcode 13722593, International |
Webcast: |
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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
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
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 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
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|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(unaudited, in thousands) |
|||||||
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||||
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 |
|
||
|
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 |
|
|
|||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
(unaudited, in thousands except share and per share data) |
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|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
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 |
|
Twelve Months Ended |
||||||||||||
|
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 |
|
|
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CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(unaudited, in thousands) |
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|
Three Months Ended |
|
Twelve Months Ended |
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|
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 |
|
|
|||||||||||||||
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 |
|
Twelve Months Ended |
||||||||||||
|
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 |
(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 |
(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 |
(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 |
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
(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.
|
|||||||||||||||
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 |
|
Twelve Months Ended |
||||||||||||
|
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 |
— |
|
|
— |
|
|
(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
(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 |
||||||
|
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 |
|
|
||||||||
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
|
|
Fiscal Year 2022 |
||||
Income (loss) from operations outlook reconciliation: |
|
|
|
|
|
|
|
|
GAAP income (loss) from operations |
|
|
— |
|
|
|
— |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
Stock-based compensation |
|
30 |
— |
30 |
|
131 |
— |
131 |
Amortization of intangibles |
|
3 |
— |
3 |
|
11 |
— |
11 |
Non-GAAP income (loss) from operations |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210902005840/en/
Investor Contact:
(650) 356-4921
ir@guidewire.com
Media Contact:
(650) 356-4941
dstott@guidewire.com
Source:
FAQ
What were Guidewire Software's total revenues for FY 2021?
How much did Guidewire's annual recurring revenue (ARR) grow in FY 2021?
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