IZEA Worldwide Inc
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Communication Services : Interactive Media & Services | Small Cap Blend
Company profile

IZEA Worldwide. Inc., formerly IZEA, Inc.(IZEA), operates online marketplaces that facilitate transactions between brands and influential content creators. These creators produce and distribute text, videos and photos on behalf of brands through Websites, blogs and social media channels. Its technology enables transactions to be completed at scale through the management of content workflow, creator search and targeting, bidding, analytics and payment processing. Brands and Publishers engage IZEA in order to gain access to its technology and network of creators. These companies use its technology for various purposes, such as the engagement of online influencers for sponsored social campaigns, or the creation of standalone content for distribution through their owned channels. The Company provides services to customers in multiple industry segments, including consumer products, retail/eTail, technology and travel. Its platforms include IZEA.com and The IZEA Exchange, and Ebyline.

Price
Delayed
$1.47
Day's Change
0.045 (3.16%)
Bid
--
Ask
--
B/A Size
--
Day's High
1.54
Day's Low
1.37
Volume
(Heavy Day)

Today's volume of 14,837,091 shares is on pace to be much greater than IZEA's 10-day average volume of 6,802,394 shares.

14,837,091

Guidewire Software Announces Third Quarter Fiscal Year 2020 Financial Results, Updates to Leadership Team

4:15 pm ET June 3, 2020 (BusinessWire) Print

Guidewire Software, Inc. (NYSE: GWRE), provider of the industry platform Property and Casualty ("P&C") insurers rely upon, today announced its financial results for the fiscal quarter ended April 30, 2020.

"We delivered strong financial results in the third quarter highlighted by 105% year-over-year growth in subscription revenue that, along with total revenue and profitability, exceeded our guidance ranges," said Mike Rosenbaum, chief executive officer, Guidewire Software. "I am very proud of how our team and community have responded to the headwinds caused by COVID-19. During our third quarter, we made significant progress on our Guidewire Cloud Platform release, closed a new InsuranceSuite Cloud deal with Aviva Italia, and added three new Cyence customers."

Third Quarter Fiscal Year 2020 Financial Highlights

Revenue

Total revenue for the third quarter of fiscal year 2020 was $168.2 million, an increase of 3% from the same quarter in fiscal year 2019. License and subscription revenue was $93.2 million, an increase of 22%; services revenue was $54.3 million, a decrease of 17%; and maintenance revenue was $20.7 million, which remained relatively flat. Annual recurring revenue, or ARR, was $483 million as of April 30, 2020, up from $460 million as of July 31, 2019. Quarterly ARR results for fiscal year 2020 are based on actual currency rates at the end of fiscal year 2019, held constant throughout the year.

Profitability

GAAP loss from operations was $25.6 million for the third quarter of fiscal year 2020, compared with $15.8 million for the comparable period in fiscal year 2019. Non-GAAP income from operations was $5.8 million for the third quarter of fiscal year 2020, compared with $12.6 million for the comparable period in fiscal year 2019. GAAP net loss was $31.0 million for the third quarter of fiscal year 2020, compared with less than $0.1 million for the comparable period in fiscal year 2019. GAAP net loss per share was $0.37, based on diluted weighted average shares outstanding of 83.0 million, compared with less than $0.01 for the comparable period in fiscal year 2019, based on diluted weighted average shares outstanding of 81.6 million. Non-GAAP net income was $7.7 million for the third quarter of fiscal year 2020, compared with $15.2 million for the comparable period in fiscal year 2019. Non-GAAP net income per share was $0.09, based on diluted weighted average shares outstanding of 83.5 million, compared with $0.18 for the comparable period in fiscal year 2019, based on diluted weighted average shares outstanding of 82.6 million.

Liquidity

The Company had $1.3 billion in cash, cash equivalents, and investments at April 30, 2020, the same as at July 31, 2019. The Company generated $5.9 million in cash from operations and had negative free cash flow of $16.3 million during the nine months ended April 30, 2020.

Business Outlook

Guidewire is issuing the following outlook for the fourth quarter of fiscal year 2020 and fiscal year 2020 based on current expectations:

(in $ millions)                                                                    Fourth Quarter                                                                                      Fiscal Year 2020
                                                                                                     Fiscal Year 2020
--------------------------------------                      --------------------------------------------------------------------------------------------                            --------------------------------------------------------------------------------------------
Revenue                                  204.9     -    212.9     703.5     -    711.5  
                                         138.4     -    146.4     419.0     -    427.0  
   License and subscription
                                          20.2     -     21.2      83.0     -     84.0  
   Maintenance
                                          42.7     -     48.7     198.0     -    204.0  
   Services
GAAP income (loss) from operations         4.2     -     12.2     (64.8 )                      -    (56.8 )
Non-GAAP income (loss) from operations    36.7     -     44.7      65.0     -     73.0  
GAAP net income (loss)                    (2.4 )                      -     (5.6 )                      (70.9 )                      -    (63.2 )
GAAP net income (loss) per share         (0.03 )                      -    (0.07 )                      (0.86 )                      -    (0.76 )
Non-GAAP net income (loss)                33.8     -     40.3      70.0     -     76.7  

ARR growth on a constant currency basis is now expected to be between 9% and 11% in fiscal year 2020 compared to our previous range of 11% to 12%.

Leadership Announcements

The Company today announced that chief sales officer Steve Sherry plans to retire next fiscal year and that Frank O'Dowd has been named his successor. Additionally, the Company announced the permanent appointment of Jeff Cooper to the chief financial officer role, after serving in an interim capacity, as well as the promotion of Priscilla Hung to president, chief operating officer.

After nearly 15 years as a sales leader at Guidewire, which was preceded by an extraordinary career in enterprise software, Steve Sherry has decided to retire. "Guidewire is incredibly indebted to Steve for the contribution and leadership he provided during his tenure at Guidewire. He is an incredible sales leader and has built atrulyfirstclasssales division here at Guidewire," said Mr. Rosenbaum. The Company today announced Mr. Sherry's successor, Frank O'Dowd, who joins Guidewire from Oracle, where he was most recently group vice president and a member of the sales team for over 21 years. "While Steve's retirement is bittersweet, we are incredibly excited to welcome FrankO'Dowdto theleadershipteamhere at Guidewire," said Mr. Rosenbaum. Mr. O'Dowd will join Guidewire on June 15, working with Mr. Sherryandthe sales teamthrough the end of the fiscal year, before taking over the leadership role. Mr. Sherry will continue with the Company as senior vice president, strategic accounts into the Company's next fiscal year, to ensure a complete and seamless transition, after which he plans to retire.

After conducting an extensive and thorough search, Guidewire determined that Jeff Cooper was the best individual to lead the finance organization, resulting in the Board of Directors appointing him permanently to the chief financial officer role, after his service in an interim capacity. "Jeff's command of the very detailed and complex cloud business modeltransition, combined with the trust he has engendered and the leadership shown duringthisinterim period, clearly demonstrated Jeff is the right chief financial officer for Guidewire," said Mr. Rosenbaum.

Guidewire also announced that Priscilla Hung, who has been with Guidewire since 2005, including serving as chief operating officer since June 2017, has been promoted to president, chief operating officer. "Priscilla has been a key leader of the organization, embodying the grit, determination, and resilience of our culture. I'm excited to continue to partner with her as we drive the next chapter for Guidewire, Guidewire Cloud and our partner ecosystem," said Mr. Rosenbaum. "Through most of Guidewire's history, Priscilla has been an essential leader, driving many of our most important initiatives and finding a way to succeed for our customers. The Board and I look forward to her continued leadership in her new role," said Marcus Ryu, chairman of the board.

Conference Call Information
                                                                                                                                                                 
What:                                            Guidewire Software Third Quarter Fiscal Year 2020 Financial Results Conference Call Guidewire Software Third Quarter Fiscal Year 2020 Financial Results Conference Call Guidewire Software Third Quarter Fiscal Year 2020 Financial Results Conference Call
When:                                            Wednesday, June 3, 2020                                                             Wednesday, June 3, 2020                                                             Wednesday, June 3, 2020
Time:                                            2:00 p.m. PT (5:00 p.m. ET)                                                         2:00 p.m. PT (5:00 p.m. ET)                                                         2:00 p.m. PT (5:00 p.m. ET)
Live Call:                                       (877) 705-6003, Domestic                                                            (877) 705-6003, Domestic                                                            (877) 705-6003, Domestic
(201) 493-6725, International                    (201) 493-6725, International                                                       (201) 493-6725, International                                                       (201) 493-6725, International
Replay:                                          (844) 512-2921, Passcode 13704201, Domestic                                         (844) 512-2921, Passcode 13704201, Domestic                                         (844) 512-2921, Passcode 13704201, Domestic
(412) 317-6671, Passcode 13704201, International (412) 317-6671, Passcode 13704201, International                                    (412) 317-6671, Passcode 13704201, International                                    (412) 317-6671, Passcode 13704201, International

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 and amortization of intangibles. 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 identify the annualized recurring value of active customer contracts at the end of a reporting period. ARR includes the annualized recurring value of term licenses, subscription agreements, maintenance 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 usage arrangements that are not expected to recur (primarily perpetual licenses and services) are excluded.

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 delivers the industry platform that P&C insurers rely upon to adapt and succeed in a time of accelerating change. We provide the software, services, and partner ecosystem to enable our customers to run, differentiate, and grow their business. As of the end of our fiscal year 2019, we were privileged to serve more than 380 companies in 34 countries. 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 future leadership announcements. 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 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 services revenue produces lower gross margins than our license and maintenance revenue; our products or cloud-based services may experience data security breaches; we face intense competition in our market; assertions by third parties that we violate their intellectual property rights could substantially harm our business; changes in accounting guidance, such as revenue recognition, which have and may cause us to experience greater volatility in our quarterly and annual results; our product development and sales cycles are lengthy and may be affected by factors outside of our control; 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; 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)
                                                                   
                                                            April 30,                               July 31,
                                                                                 2020                                                       2019
                                                                -----------------------------------                        ------------------------------------
ASSETS                                                                                
CURRENT ASSETS:                                                                       
                                                                     $   293,815           $   254,101  
   Cash and cash equivalents
                                                                         740,386               870,136  
   Short-term investments
                                                                          79,587               138,443  
   Accounts receivable, net
                                                                          68,913                36,728  
   Unbilled accounts receivable, net
                                                                          41,598                35,566  
   Prepaid expenses and other current assets
                                                                ---------------  --------------------                      ----------------  --------------------
                                                                       1,224,299             1,334,974  
      Total current assets
Long-term investments                                                    291,760               213,524  
Unbilled accounts receivable, net                                         21,930                 9,375  
Property and equipment, net                                               65,461                65,809  
Operating lease assets                                                    85,902        --  
Intangible assets, net                                                    46,031                66,542  
Goodwill                                                                 340,877               340,877  
Deferred tax assets, net                                                 100,925                90,308  
Other assets                                                              31,683                45,554  
                                                                ---------------  --------------------                      ----------------  --------------------
TOTAL ASSETS                                                         $ 2,208,868           $ 2,166,963  
                                                                ====== ========= ====================                      ======= ========= ====================
LIABILITIES AND STOCKHOLDERS' EQUITY                       
CURRENT LIABILITIES:                                                                  
                                                                     $    18,348           $    34,255  
   Accounts payable
                                                                          47,493                73,365  
   Accrued employee compensation
                                                                          89,087               108,304  
   Deferred revenue, net
                                                                          21,789                16,348  
   Other current liabilities
                                                                ---------------  --------------------                      ----------------  --------------------
                                                                         176,717               232,272  
      Total current liabilities
Lease liabilities                                                         99,110        --  
Convertible senior notes, net                                            326,920               317,322  
Deferred revenue, net                                                     17,009                23,527  
Other liabilities                                                          3,099                19,641  
                                                                ---------------  --------------------                      ----------------  --------------------
                                                                         622,855               592,762  
      Total liabilities
                                                                ---------------  --------------------                      ----------------  --------------------
STOCKHOLDERS' EQUITY:                                      
                                                                               8                     8  
   Common stock
                                                                       1,471,340             1,391,904  
   Additional paid-in capital
                                                                         (9,516)               (7,758)  
   Accumulated other comprehensive income (loss)
                                                                         124,181               190,047  
   Retained earnings
                                                                ---------------  --------------------                      ----------------  --------------------
Total stockholders' equity                  1,586,013             1,574,201  
                                                                ---------------  --------------------                      ----------------  --------------------
                                                                                                                    GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
                                                                                                                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                                                            (unaudited, in thousands except share and per share data)
                                                                                                        
                                                                             Three Months Ended April 30,                                                                     Nine Months Ended April 30,
                                                               ---------------------------------------------------------------------------------------                            ---------------------------------------------------------------------------------------
                                                            2020                                   2019                                  2020                                   2019
                                                               ----------------------------------                        ---------------------------------                        ----------------------------------                        ---------------------------------
Revenue:                                                                                                                   
                                                                    $   93,182          $  76,218          $  280,559          $ 257,611  
   License and subscription
                                                                        20,694             21,335              62,781             63,602  
   Maintenance
                                                                        54,289             65,314             155,293            190,443  
   Services
                                                               --------------  --------------------                      -------------  --------------------                      --------------  --------------------                      -------------  --------------------
                                                                       168,165            162,867             498,633            511,656  
      Total revenue
                                                               --------------  --------------------                      -------------  --------------------                      --------------  --------------------                      -------------  --------------------
Cost of revenue(1):                                                                                                        
                                                                        28,713             15,781              79,541             43,850  
   License and subscription
                                                                         4,375              3,924              12,153             11,746  
   Maintenance
                                                                        52,664             60,573             158,510            185,970  
   Services
                                                               --------------  --------------------                      -------------  --------------------                      --------------  --------------------                      -------------  --------------------
                                                                        85,752             80,278             250,204            241,566  
      Total cost of revenue
                                                               --------------  --------------------                      -------------  --------------------                      --------------  --------------------                      -------------  --------------------
Gross profit:                                                                                                              
                                                                        64,469             60,437             201,018            213,761  
   License and subscription
                                                                        16,319             17,411              50,628             51,856  
   Maintenance
                                                                         1,625              4,741             (3,217)              4,473  
   Services
                                                               --------------  --------------------                      -------------  --------------------                      --------------  --------------------                      -------------  --------------------
                                                                        82,413             82,589             248,429            270,090  
      Total gross profit
                                                               --------------  --------------------                      -------------  --------------------                      --------------  --------------------                      -------------  --------------------
Operating expenses(1):                                                                                                     
                                                                        51,893             47,102             148,343            139,069  
   Research and development
                                                                        35,235             33,301             105,590             96,793  
   Sales and marketing
                                                                        20,885             17,953              62,723             53,839  
   General and administrative
                                                               --------------  --------------------                      -------------  --------------------                      --------------  --------------------                      -------------  --------------------
                                                                       108,013             98,356             316,656            289,701  
      Total operating expenses
                                                               --------------  --------------------                      -------------  --------------------                      --------------  --------------------                      -------------  --------------------
Income (loss) from operations                                         (25,600)           (15,767)            (68,227)           (19,611)  
                                                                         6,072              7,748              20,666             22,152  
   Interest income
                                                                       (4,505)            (4,327)            (13,396)           (12,858)  
   Interest expense
                                                                      (12,356)              (617)            (12,789)              (958)  
   Other income (expense), net
                                                               --------------  --------------------                      -------------  --------------------                      --------------  --------------------                      -------------  --------------------
Income (loss) before provision for (benefit from) income taxes        (36,389)           (12,963)            (73,746)           (11,275)  
                                                                       (5,351)            (4,382)             (7,773)            (9,002)  
   Provision for (benefit from) income taxes
                                                               --------------  --------------------                      -------------  --------------------                      --------------  --------------------                      -------------  --------------------
Net income (loss)                                                   $ (31,038)          $ (8,581)          $ (65,973)          $ (2,273)  
                                                               ====== ======== ====================                      ====== ======= ====================                      ====== ======== ====================                      ====== ======= ====================
Net income (loss) per share:                                                                                               
                                                                    $   (0.37)          $  (0.11)          $   (0.80)          $  (0.03)  
   Basic
                                                               ====== ======== ====================                      ====== ======= ====================                      ====== ======== ====================                      ====== ======= ====================
                                                                    $   (0.37)          $  (0.11)          $   (0.80)          $  (0.03)  
   Diluted
                                                               ====== ======== ====================                      ====== ======= ====================                      ====== ======== ====================                      ====== ======= ====================
Shares used in computing net income (loss) per share:                                                                      
                                                                    83,024,291         81,606,088          82,701,267         81,252,993  
   Basic
                                                               ==============  ====================                      =============  ====================                      ==============  ====================                      =============  ====================

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

                                                        Three Months Ended April 30,                                                                  Nine Months Ended April 30,
                                            ------------------------------------------------------------------------------------                            ------------------------------------------------------------------------------------
                                        2020                                 2019                                 2020                                 2019
                                            --------------------------------   -------------------- --------------------------------   -------------------- --------------------------------   -------------------- --------------------------------
                                                                                                                  (unaudited, in thousands)
Stock-based compensation expense:                                                                  
                                                 $  1,694          $    589          $  4,674          $  1,458  
   Cost of license and subscription revenue
                                                      469               274             1,376             1,366  
   Cost of maintenance revenue
                                                    4,862             5,721            15,663            17,899  
   Cost of services revenue
                                                    6,500             4,919            19,349            17,765  
   Research and development
                                                    4,990             4,731            16,143            14,426  
   Sales and marketing
                                                    6,266             4,816            18,870            15,843  
   General and administrative
                                            ------------  --------------------                      ------------  --------------------                      ------------  --------------------                      ------------  --------------------
                                                                                                                                        GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
                                                                                                                                          CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                                                                (unaudited, in thousands)
                                                                                                                                                
                                                                                                                    Three Months Ended April 30,                                                                      Nine Months Ended April 30,
                                                                                                      ----------------------------------------------------------------------------------------                            ----------------------------------------------------------------------------------------
                                                                                                   2020                                   2019                                   2020                                   2019
                                                                                                      ----------------------------------                        ----------------------------------                        ----------------------------------                        ----------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:                                                                                                                              
                                                                                                           $ (31,038)           $ (8,581)          $ (65,973)           $ (2,273)  
   Net income (loss)
                                                                                                                                                                   
   Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
                                                                                                               10,611               9,699              32,255              29,140  
      Depreciation and amortization
                                                                                                                3,244               3,069               9,598               9,082  
      Amortization of debt discount and issuance costs
                                                                                                               24,781              21,050              76,075              68,757  
      Stock-based compensation
                                                                                                                (688)                 127                 190                 479  
      Charges to bad debt and revenue reserves
                                                                                                              (6,685)             (5,074)            (11,046)            (11,836)  
      Deferred income tax
                                                                                                                (354)             (1,880)             (2,366)             (5,696)  
      Accretion of discount on available-for-sale securities, net
                                                                                                               10,672      --              10,672      --  
      Changes in fair value of strategic investment
                                                                                                                  129      --                 701                 575  
      Other non-cash items affecting net income (loss)
                                                                                                                                                                   
      Changes in operating assets and liabilities:
                                                                                                               21,921              10,355              58,180              14,769  
         Accounts receivable
                                                                                                             (27,722)            (13,668)            (44,740)            (43,858)  
         Unbilled accounts receivable
                                                                                                              (1,010)             (4,947)             (4,537)             (5,832)  
         Prepaid expenses and other assets
                                                                                                                2,618      --               7,111      --  
         Operating lease assets
                                                                                                              (1,648)               3,339             (5,680)            (11,136)  
         Accounts payable
                                                                                                                3,508              10,197            (25,286)             (5,065)  
         Accrued employee compensation
                                                                                                              (2,152)             (2,149)            (25,735)            (29,639)  
         Deferred revenue
                                                                                                              (2,875)      --             (2,634)      --  
         Lease liabilities
                                                                                                                1,259               4,674               (878)               5,785  
         Other liabilities
                                                                                                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------
                                                                                                                4,571              26,211               5,907              13,252  
            Net cash provided by (used in) operating activities
                                                                                                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------
CASH FLOWS FROM INVESTING ACTIVITIES:                                                                                                                              
                                                                                                            (247,909)           (315,109)           (849,312)           (778,011)  
   Purchases of available-for-sale securities
                                                                                                              328,210             316,519             904,959             727,102  
   Sales and maturities of available-for-sale securities
                                                                                                              (7,712)            (17,740)            (18,966)            (28,746)  
   Purchases of property and equipment
                                                                                                              (1,063)             (1,139)             (3,273)             (2,302)  
   Capitalized software development costs
                                                                                                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------
                                                                                                               71,526            (17,469)              33,408            (81,957)  
           Net cash provided by (used in) investing activities
                                                                                                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------
CASH FLOWS FROM FINANCING ACTIVITIES:                                                                                                                              
Proceeds from issuance of common stock upon exercise of stock options                                           1,838                 748               3,077               1,851  
                                                                                                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------
                                                                                                                1,838                 748               3,077               1,851  
           Net cash provided by (used in) financing activities
                                                                                                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------
Effect of foreign exchange rate changes on cash and cash equivalents                                          (2,583)               (790)             (2,678)             (1,417)  
                                                                                                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                           75,352               8,700              39,714            (68,271)  
CASH AND CASH EQUIVALENTS--Beginning of period                                                    218,463             360,169             254,101             437,140  
                                                                                                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------
                                                                                                                        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 April 30,                                                                              Nine Months Ended April 30,
                                                     ------------------------------------------------------------------------------------------------                            ------------------------------------------------------------------------------------------------
                                                    2020                                       2019                                       2020                                       2019
                                                     --------------------------------------                        --------------------------------------                        --------------------------------------                        --------------------------------------
Gross profit reconciliation:                                                                                                  
GAAP gross profit                                            $    82,413             $    82,589             $   248,429             $   270,090  
Non-GAAP adjustments:                                                                                                         
                                                                   7,025                   6,584                  21,713                  20,723  
   Stock-based compensation
                                                                   4,805                   4,945                  14,695                  14,835  
   Amortization of intangibles
                                                     ------------------  --------------------                      ------------------  --------------------                      ------------------  --------------------                      ------------------  --------------------
Non-GAAP gross profit                                        $    94,243             $    94,118             $   284,837             $   305,648  
                                                     ========= ========= ====================                      ========= ========= ====================                      ========= ========= ====================                      ========= ========= ====================
                                                                                                           
Income (loss) from operations reconciliation:                                                                                 
GAAP income (loss) from operations                           $  (25,600)             $  (15,767)             $  (68,227)             $  (19,611)  
Non-GAAP adjustments:                                                                                                         
                                                                  24,781                  21,050                  76,075                  68,757  
   Stock-based compensation
                                                                   6,602                   7,278                  20,511                  21,896  
   Amortization of intangibles
                                                     ------------------  --------------------                      ------------------  --------------------                      ------------------  --------------------                      ------------------  --------------------
Non-GAAP income (loss) from operations                       $     5,783             $    12,561             $    28,359             $    71,042  
                                                     ========= ========= ====================                      ========= ========= ====================                      ========= ========= ====================                      ========= ========= ====================
                                                                                                           
Net income (loss) reconciliation:                                                                                             
GAAP net income (loss)                                       $  (31,038)             $   (8,581)             $  (65,973)             $   (2,273)  
Non-GAAP adjustments:                                                                                                         
                                                                  24,781                  21,050                  76,075                  68,757  
   Stock-based compensation
                                                                   6,602                   7,278                  20,511                  21,896  
   Amortization of intangibles
                                                                   3,244                   3,070                   9,598                   9,083  
   Amortization of debt discount and issuance costs
                                                                  10,672          --                  10,672          --  
   Changes in fair value of strategic investment (1)
                                                                 (6,559)                 (7,586)                (14,645)                (23,860)  
   Tax impact of non-GAAP adjustments (2)
                                                     ------------------  --------------------                      ------------------  --------------------                      ------------------  --------------------                      ------------------  --------------------
Non-GAAP net income (loss)                                   $     7,702             $    15,231             $    36,238             $    73,603  
                                                     ========= ========= ====================                      ========= ========= ====================                      ========= ========= ====================                      ========= ========= ====================
                                                                                                           
Tax provision (benefit) reconciliation:                                                                                       
GAAP tax provision (benefit)                                 $   (5,351)             $   (4,382)             $   (7,773)             $   (9,002)  
Non-GAAP adjustments:                                                                                                         
                                                                   3,295                   3,676                  11,824                  11,578  
   Stock-based compensation
                                                                     878                   1,271                   3,197                   3,694  
   Amortization of intangibles
                                                                     431                     536                   1,489                   1,540  
   Amortization of debt discount and issuance costs
                                                                   1,418          --                   1,418          --  
   Changes in fair value of strategic investment (1)
                                                                     537                   2,103                 (3,283)                   7,048  
   Tax impact of non-GAAP adjustments (2)
                                                     ------------------  --------------------                      ------------------  --------------------                      ------------------  --------------------                      ------------------  --------------------
(1) Effective the third fiscal quarter of 2020, changes in fair value of strategic investments are excluded from the non-GAAP measures. Prior to the third fiscal quarter of 2020, there have been no changes in fair value of strategic investments in any periods presented.
                                                                                                                                           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 April 30,                                                                              Nine Months Ended April 30,
                                                                                           ------------------------------------------------------------------------------------------------                            ------------------------------------------------------------------------------------------------
                                                                                          2020                                       2019                                       2020                                       2019
                                                                                           --------------------------------------                        --------------------------------------                        --------------------------------------                        --------------------------------------
                                                                                                                                                 
Net income (loss) per share reconciliation:                                                                                                                         
GAAP net income (loss) per share -- diluted                                            $    (0.37)             $    (0.11)             $    (0.80)             $    (0.03)  
Non-GAAP adjustments:                                                                                                                                               
                                                                                                          0.30                    0.26                    0.92                    0.84  
   Stock-based compensation
                                                                                                          0.08                    0.09                    0.25                    0.27  
   Amortization of intangibles
                                                                                                          0.04                    0.04                    0.12                    0.12  
   Amortization of debt discount and issuance costs
                                                                                                          0.13          --                    0.13          --  
   Changes in fair value of strategic investment (1)
                                                                                                        (0.08)                  (0.09)                  (0.18)                  (0.30)  
   Tax impact of non-GAAP adjustments (2)
                                                                                                        (0.01)                  (0.01)                  (0.02)                  (0.01)  
   Non-GAAP dilutive shares excluded from GAAP net income (loss) per share calculation (3)
                                                                                           ------------------  --------------------                      ------------------  --------------------                      ------------------  --------------------                      ------------------  --------------------
Non-GAAP net income (loss) per share -- diluted                                        $      0.09             $      0.18             $      0.42             $      0.89  
                                                                                           ========= ========= ====================                      ========= ========= ====================                      ========= ========= ====================                      ========= ========= ====================
                                                                                                                                                 
Shares used in computing Non-GAAP income (loss) per share amounts:                                                                                                  
GAAP weighted average shares -- diluted                                                 83,024,291              81,606,088              82,701,267              81,252,993  
                                                                                                       486,398               1,031,086                 798,189               1,245,769  
   Non-GAAP dilutive shares excluded from GAAP income (loss) per share calculation (3)
                                                                                           ------------------  --------------------                      ------------------  --------------------                      ------------------  --------------------                      ------------------  --------------------
(1) Effective the third fiscal quarter of 2020, changes in fair value of strategic investments are excluded from the non-GAAP measures. Prior to the third fiscal quarter of 2020, there have been no changes in fair value of strategic investments in any periods presented.
(2) Adjustments reflect the impact on the tax benefit (provision) resulting from all non-GAAP adjustments.
                                                                 Nine Months Ended April 30,
                                                    ------------------------------------------------------------------------------------
                                                2020                                 2019
                                                    --------------------------------                        --------------------------------
Free cash flow:                                                        
Net cash provided by (used in) operating activities      $  5,907          $ 13,252  
Purchases of property and equipment                      (18,966)          (28,746)  
Capitalized software development costs                    (3,273)           (2,302)  
                                                    ------------  --------------------                      ------------  --------------------
                                                                                                                                     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)                                                                                      Fourth Quarter                                                                                            Fiscal Year 2020
                                                                                                                       Fiscal Year 2020
-----------------------------------------------------                      ----------------------------------------------------------------------------------------------------                          ----------------------------------------------------------------------------------------------------
Income (loss) from operations outlook reconciliation:                        
GAAP income (loss) from operations                                       4.2                      -                   12.2                 (64.8)                      -                 (56.8)
Non-GAAP adjustments:                                                        
                                                                        24.0                      -                   26.0                   99.6                      -                  101.6
   Stock-based compensation
                                                                         7.4                      -                    7.4                   29.1                      -                   29.1
   Amortization of intangibles
                                                                           -------------------- -------------------- -------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- -------------------- --------------------
Non-GAAP income (loss) from operations                                  36.7                      -                   44.7                   65.0                      -                   73.0
                                                                           ==================== ==================== ==================== ==================== ====================                      ==================== ==================== ==================== ==================== ====================
                                                          
Net income (loss) outlook reconciliation:                                    
GAAP net income (loss)                                                 (2.4)                      -                  (5.6)                 (70.9)                      -                 (63.2)
Non-GAAP adjustments:                                                        
                                                                        24.0                      -                   26.0                   99.6                      -                  101.6
   Stock-based compensation
                                                                         7.4                      -                    7.4                   29.1                      -                   29.1
   Amortization of intangibles
                                                                         3.1                      -                    3.1                   12.7                      -                   12.7
   Amortization of debt discount and issuance costs
                                                              --                      -         --                   10.7                      -                   10.7
   Change in fair value of strategic investment
                                                                         0.6                      -                   10.3                 (12.3)                      -                 (13.3)
   Tax impact of non-GAAP adjustments
                                                                           -------------------- -------------------- -------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- -------------------- --------------------

View source version on businesswire.com: https://www.businesswire.com/news/home/20200603005849/en/

SOURCE: Guidewire Software, Inc.

Media: 
Diana Stott
Guidewire Software, Inc.
(650) 356-4941
dstott@guidewire.com


Investors: 
Garo Toomajanian
ICR, LLC
(650) 357-5282
ir@guidewire.com

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