Guidewire Software Pulls Ahead With Earnings
Guidewire Software Inc. (NYSE: GWRE) reported its most recent quarterly results after the markets closed on Wednesday. The firm posted $0.34 in earnings per share (EPS) and $169.3 million in revenue, while consensus estimates had called for $0.19 per share and $162 million. The fiscal second quarter of last year reportedly had $0.33 in EPS and $163.79 million in revenue.
During the latest quarter, license and subscription revenue was $87.1 million, an increase of 3%; services revenue was $60.9 million, an increase of 1%; and maintenance revenue was $21.3 million, an increase of 11%.
Looking ahead to the fiscal third quarter, the company expects to see EPS of $0.05 and revenue of $152.5 million. Consensus estimates call for $0.05 in EPS and $148.03 million in revenue for the quarter.
On the books, Guidewire Software cash, cash equivalents and investments totaled $1.24 billion at the end of the fiscal second quarter, down from $1.26 billion at the end of the previous fiscal year.
Marcus Ryu, CEO of Guidewire Software, commented:
We exceeded our guidance ranges for revenue and profitability in the second quarter. During the quarter, we extended our overall market momentum and demonstrated particular success with our cloud and digital initiatives, completing another InsuranceSuite Cloud deal and signing significant new business for digital enablement. We continue to invest in Guidewire Insurance Platform to service the growing demand we see for cloud-based core systems and to strengthen our role as a trusted partner for enabling digital transformation in the $2 trillion global P&C industry.
Shares of Guidewire were last seen up about 7% at $92.59 on Thursday, in a 52-week range of $73.82 to $107.79. The consensus price target is $101.33.