NYSE$GWRE

Guidewire Software Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Guidewire reported strong Q4 results with a significant increase in subscription revenue and the launch of its first cloud-optimized InsuranceSuite release.

Guidewire Software announced its Q4 and FY2020 financial results, demonstrating a strong fourth quarter with a 17% increase in total revenue compared to the same quarter in the previous year. The company added 10 InsuranceSuite Cloud customers and grew subscription revenue for the year by 84%.

  • Total revenue for the fourth quarter of fiscal year 2020 was $243.7 million, an increase of 17% from the same quarter in fiscal year 2019.
  • Subscription and support revenue was $54.1 million, an increase of 29%.
  • GAAP income from operations was $44.3 million for the fourth quarter of fiscal year 2020, compared to $21.1 million for the same quarter in fiscal year 2019.
  • GAAP net income per share was $0.46, based on diluted weighted average shares outstanding of 83.9 million, compared to $0.28 for the same quarter in fiscal year 2019, based on diluted weighted average shares outstanding of 82.9 million.

Headline financials

Total Revenue

$244M

Previous: $208M+17.2%
EPS (adj)

$0.83

Previous: $0.56+48.2%
Annual Recurring Revenue

$514M

Previous: $460M+11.7%
Capital Expenditures

$2.41M

Previous: $16.2M-85.1%
Free Cash Flow

$105M

Previous: $86.8M+20.7%
Net Income

$38.8M

Previous: $23M+68.6%
Operating Income

$44.3M

Previous: $21.1M+110.3%
Gross Profit

$156M

Previous: $125M+24.6%
Cash & Equivalents

$367M

Previous: $254M+44.4%
Total Assets

$2.36B

Previous: $2.17B+9.1%
Stock-Based Comp

$25.7M

Previous: $22.8M+13.0%

Revenue & EPS history

Guidewire · Revenue · Quarterly

$244M

Q4 2020+17.2%vs Q4 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Guidewire · $244M total across 3 segments · Q4 2020

  • License
    $138M+28.0%
  • Subscription and Support
    $54.1M+28.6%
  • Services
    $52M-10.8%

Forward guidance

Guidewire is issuing the following outlook for the first quarter of fiscal year 2021 based on current expectations:

Tailwinds

  • ARR between $509 million and $512 million
  • Total revenue between $162 million and $166 million

Headwinds

  • Operating loss between $44 million and $40 million
  • Non-GAAP operating loss between $10 million and $6 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

+2.7%

Avg return

Earnings day

-0.7%

Avg return

5 days after

-0.2%

Avg return

30 days after

58%

36 / 62 earnings

Positive

+32.2%

Q2 2012

Best reaction

-14.6%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-9.7%-22.7%
Q2 2026+5.0%-1.6%-6.2%
Q1 2026-2.2%-8.6%-13.0%
Q4 2025+20.1%+16.6%+6.0%
Q3 2025+16.3%+18.0%+5.6%
Q2 2025-7.3%-5.7%-6.8%
Q1 2025-14.3%-17.3%-16.8%
Q4 2024+10.0%+13.9%+25.3%
Q3 2024+16.2%+18.5%+26.8%
Q2 2024+2.1%-0.6%+0.2%
Q1 2024-0.2%-0.5%+7.1%
Q4 2023+9.9%+8.0%+6.7%
Q3 2023-14.6%-11.8%-8.3%
Q2 2023+2.7%-2.3%+7.5%
Q1 2023+4.5%+9.0%+5.1%
Q4 2022-1.7%+1.4%-4.8%
Q3 2022+1.4%-5.4%-5.1%
Q2 2022+2.0%-2.4%+4.8%
Q1 2022-1.5%+2.5%+0.5%
Q4 2021+3.8%+3.6%+0.0%
Q3 2021+4.1%+6.5%+16.1%
Q2 2021-7.1%-8.0%-6.6%
Q1 2021-3.6%-1.8%+5.6%
Q4 2020+0.1%-1.6%-12.2%
Q3 2020-1.2%+2.1%+5.4%
Q2 2020-11.7%-21.4%-30.2%
Q1 2020-6.6%-10.2%-7.0%
Q4 2019+16.1%+13.0%+12.6%
Q3 2019-1.8%+0.2%+5.9%
Q2 2019+2.7%+2.4%+13.8%
Q1 2019-8.6%-8.3%-17.1%
Q4 2018-2.3%-3.0%-4.5%
Q3 2018-2.3%-6.8%-4.7%
Q2 2018+7.3%+3.5%-4.3%
Q1 2018-8.7%-13.5%-8.9%
Q4 2017+6.3%+5.9%+3.9%
Q3 2017+4.4%+4.4%+3.4%
Q2 2017+3.3%+2.7%+1.3%
Q1 2017-4.6%-10.3%-14.4%
Q4 2016-1.5%-2.2%-6.0%
Q3 2016+5.0%+5.8%+4.7%
Q2 2016+6.5%
Q1 2016+0.7%
Q4 2015-2.2%
Q3 2015+10.1%
Q2 2015-2.8%
Q1 2015+0.5%
Q4 2014+0.2%
Q3 2014-1.9%
Q2 2014+7.0%
Q1 2014+1.6%
Q4 2013-6.3%
Q3 2013+3.6%
Q2 2013+19.0%
Q1 2013+5.3%
Q4 2010-4.9%
Q4 2012+13.0%
Q3 2011-2.5%
Q3 2012+4.5%
Q4 2011+26.1%
Q2 2011+26.1%
Q2 2012+32.2%
Q1 2012
Q1 2011

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