Guidewire Software, Inc. and Subsidiaries Condensed Consolidated Statement of Operations - GAAP

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

Description

Q1 2020

Q2 2020

Q3 2020

Q4 2020

FY 2020

Q1 2021

Q2 2021

Revenue:

  • $ 203,473

  • $ 331,554

  • $ 207,280

Subscription and support

$

49,031 $

49,550 $

50,772 $

54,120

$

57,966 $

59,563

License

54,363

76,520

63,104 $

137,567

65,283

77,912

Services

53,616

47,388

54,289 $

51,987

46,553

42,587

Total revenue

157,010

173,458

168,165

243,674

742,307

169,802

180,062

Cost of revenue:

117,158 11,566 209,291

Subscription and support

24,933

28,212

30,522

33,491

37,006

40,158

License

2,557

2,904

2,566

3,539

2,937

2,834

Services

53,366

52,480

52,664

50,781

51,024

48,910

Total cost of revenue

80,856

83,596

85,752

87,811

338,015

90,967

91,902

Gross profit:

86,315 319,988

(2,011)

Subscription and support

24,098

21,338

20,250

20,629

20,960

19,405

License

51,806

73,616

60,538

134,028

62,346

75,078

Services

250

(5,092)

1,625

1,206

(4,471)

(6,323)

Total gross profit

76,154

89,862

82,413

155,863

404,292

78,835

88,160

Operating expenses:

200,575 142,420 85,183

Research and development

46,496

49,954

51,893

52,232

52,615

53,194

Sales and marketing

33,016

37,339

35,235

36,830

36,644

39,216

General and administrative

21,239

20,599

20,885

22,460

21,180

22,820

Total operating expenses

100,751

107,892

108,013

111,522

428,178

110,439

115,230

Income (loss) from operations

(24,597)

(18,030)

(25,600)

44,341

(23,886) 24,705 (17,945) (7,205)

(31,604)

(27,070)

Interest income

7,636

6,958

6,072

4,039

2,789

2,015

Interest expense

(4,429)

(4,462)

(4,505)

(4,549)

(4,620)

(4,651)

Other income (expense), net

(251)

(182)

(12,356)

5,584

2,568

6,805

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

(21,641)

(15,716)

(36,389)

49,415

(24,331)

(30,867)

(22,901)

Provision for (benefit from) income taxes

(6,650)

4,228

(5,351)

10,640

2,867

(10,677)

(14,249)

Net income (loss)

$

(14,991) $

(19,944) $

(31,038) $

38,775

$

(27,198)

$

(20,190) $

(8,652)

Earnings per share:

Basic

$

(0.18) $

(0.24) $

(0.37) $

0.46

$

(0.33)

$

(0.24) $

(0.10)

Diluted

$

(0.18) $

(0.24) $

(0.37) $

0.46

$

(0.33)

$

(0.24) $

(0.10)

Shares used in computing net earnings per share:

82,855,392 82,855,392

Basic

82,360,891

82,725,641

83,024,291

83,314,410

83,613,287

83,830,624

Diluted

82,360,891

82,725,641

83,024,291

83,947,187

83,613,287

83,830,624

Impairment of equity in strategic investment

$

- $

- $

10,672 $

-

  • $ 10,672

  • $ 101,817

$

- $

-

Stock-based compensation

$

24,558 $

26,736 $

24,781 $

25,742

$

28,084 $

29,896

These schedules have been derived from, and should be read in conjunction with, our financial statements in our reports on Forms 10-Q and 10-K which are filed with the SEC. Our Forms 10-Q and 10-K may be found on our website athttp://ir.guidewire.com/phoenix.zhtml?c=248177&p=irol-sec.

(6,323)

(27,070)

(4,651)

(22,901)

(14,249)

$

(8,652)

$ (0.10)

$ (0.10)

Guidewire Software, Inc. and Subsidiaries

Condensed Consolidated Statement of Operations - Non-GAAP Adjustments

(unaudited, in thousands)

Description

Q1 2020

Q2 2020

Q3 2020

Q4 2020

FY 2020

Q1 2021

Q2 2021

Amortization of intangibles

$

4,545 $

4,545 $

4,405 $

4,126

$

17,621 7,575 -

$

4,126 $

4,126

Stock-based compensation

1,633

1,886

1,986

2,070

2,602

2,954

COVID-19 Canada Emergency Wage Subsidy benefit (1)

-

-

-

-

-

(770)

Total adjustment to cost of revenue - subscription and support

6,178

6,431

6,391

6,196

25,196

6,728

6,310

Amortization of intangibles

400

400

400

400

1,600 769

400

400

Stock-based compensation

180

188

177

224

251

145

Total adjustment to cost of revenue - license

580

588

577

624

2,369

651

545

Stock-based compensation

5,332

5,469

4,862

5,153

20,816 -

5,543

5,578

COVID-19 Canada Emergency Wage Subsidy benefit (1)

-

-

-

-

-

(198)

Total adjustment to cost of revenue - services

5,332

5,469

4,862

5,153

20,816

5,543

5,380

Stock-based compensation

6,181

6,668

6,500

6,975

26,324 -

7,247

7,604

COVID-19 Canada Emergency Wage Subsidy benefit (1)

-

-

-

-

-

(593)

Total adjustment to research and development

6,181

6,668

6,500

6,975

26,324

7,247

7,011

Stock-based compensation

5,157

5,996

4,990

5,117

21,260 7,613 -

5,977

6,806

Amortization of intangibles

2,222

1,797

1,797

1,797

1,797

1,797

COVID-19 Canada Emergency Wage Subsidy benefit (1)

-

-

-

-

-

(104)

Total adjustment to sales and marketing

7,379

7,793

6,787

6,914

28,873

7,774

8,499

Stock-based compensation

6,075

6,529

6,266

6,203

25,073 -

6,464

6,809

COVID-19 Canada Emergency Wage Subsidy benefit (1)

-

-

-

-

-

(21)

Total adjustment to general and administrative

6,075

6,529

6,266

6,203

25,073

6,464

6,788

Amortization of debt discount and issuance costs

3,156

3,198

3,244

3,288

12,886

3,335

3,379

Total adjustment to interest expense

3,156

3,198

3,244

3,288

12,886

3,335

3,379

Changes in fair value of strategic investment

-

-

10,672

-

10,672

-

-

Total adjustment to other income (expense), net

-

-

10,672

-

10,672

-

-

Non-GAAP tax impact

(8,912)

826

(6,559)

(4,598)

(19,243)

(3,143)

(20,232)

Total adjustment to provision for (benefit from) income taxes

(8,912)

826

(6,559)

(4,598)

(19,243)

(3,143)

(20,232)

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

These schedules have been derived from, and should be read in conjunction with, our financial statements in our reports on Forms 10-Q and 10-K which are filed with the SEC. Our Forms 10-Q and 10-K may be found on our website athttp://ir.guidewire.com/phoenix.zhtml?c=248177&p=irol-sec.

(770)

(198)

(593)

(104)

(21)

(20,232)

(20,232)

Guidewire Software, Inc. and Subsidiaries

Condensed Consolidated Statement of Operations - Other Reconciliations

Description

Q1 2020

Q2 2020

Q3 2020

Q4 2020

FY 2020

Q1 2021

Q2 2021

Reconciliation of GAAP to Non-GAAP earnings per share:

$

(0.33)

0.33

1.23

0.16

0.13 -

(0.23)

(0.03)

GAAP diluted earnings per share

$

(0.18)

$

(0.24)

$

(0.37)

$

0.46

$

(0.24)

$

(0.10)

Amortization of intangibles

0.09

0.08

0.08

0.08

0.08

0.08

Stock-based compensation

0.30

0.32

0.30

0.31

0.34

0.36

Amortization of debt discount and issuance costs

0.04

0.04

0.04

0.04

0.04

0.04

Changes in fair value of strategic investment

-

-

0.13

-

-

-

COVID-19 Canada Emergency Wage Subsidy benefit (1)

-

-

-

-

-

(0.02)

Non-GAAP tax impact

(0.11)

0.01

(0.08)

(0.05)

(0.04)

(0.24)

Non-GAAP dilutive shares excluded from GAAP EPS calculation (2)

(0.01)

-

(0.01)

(0.01)

(0.01)

(0.01)

Non-GAAP diluted earnings per share

$

0.13

$

0.21

$

0.09

$

0.83

$

1.26

$

0.17

$

0.11

82,855,392 834,002

Diluted weighted average shares outstanding

82,360,891

82,725,641

83,024,291

83,947,187

83,613,287

83,830,624

Non-GAAP dilutive shares excluded from GAAP EPS calculation (2)

788,902

842,001

486,398

-

586,287

1,007,573

Diluted weighted average shares outstanding

83,149,793

83,567,642

83,510,689

83,947,187

83,689,394

84,199,574

84,838,197

Gross margin:

42.4 % 3.7 % 8.7 % - %

Subscription and support:

GAAP gross margin

49.1 %

43.0 %

39.9 %

38.2 %

36.2 %

32.6 %

Stock-based compensation

3.3 %

3.8 %

3.9 %

3.8 %

4.5 %

5.0 %

Amortization of intangibles

9.3 %

9.2 %

8.7 %

7.6 %

7.1 %

6.9 %

COVID-19 Canada Emergency Wage Subsidy benefit (1)

- %

- %

- %

- %

- %

(1.3)%

Non-GAAP gross margin

61.7 %

56.0 %

52.5 %

49.6 %

54.8 %

47.8 %

43.2 %

96.5 % 0.2 % 0.5 %

License:

GAAP gross margin

95.3 %

96.3 %

95.9 %

97.4 %

95.5 %

96.4 %

Stock-based compensation

0.3 %

0.2 %

0.3 %

0.2 %

0.4 %

0.2 %

Amortization of intangibles

0.8 %

0.5 %

0.6 %

0.3 %

0.6 %

0.5 %

Non-GAAP gross margin

96.4 %

97.0 %

96.8 %

97.9 %

97.2 %

96.5 %

97.1 %

(0.9)% 10.0 %

Services:

GAAP gross margin

0.4 %

(10.7)%

2.9 %

2.3 %

(9.6)%

(14.8)%

Stock-based compensation

10.0 %

11.5 %

9.0 %

9.9 %

11.9 %

13.1 %

(2) 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.

COVID-19 Canada Emergency Wage Subsidy benefit (1)

- %

- %

- %

- %

- %

- %

(0.5)%

Non-GAAP gross margin

10.4 %

0.8 %

11.9 %

12.2 %

9.1 %

2.3 %

(2.2)%

54.5 % 2.6 % 3.9 % - %

Overall:

GAAP gross margin

48.5 %

51.8 %

49.0 %

63.9 %

46.4 %

49.0 %

Amortization of intangibles

3.1 %

2.9 %

2.9 %

1.9 %

2.7 %

2.5 %

Stock-based compensation

4.6 %

4.3 %

4.1 %

3.1 %

4.9 %

4.8 %

COVID-19 Canada Emergency Wage Subsidy benefit (1)

- %

- %

- %

- %

- %

(0.5)%

Non-GAAP gross margin

56.2 %

59.0 %

56.0 %

68.9 %

61.0 %

54.0 %

55.8 %

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

(2) 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

These schedules have been derived from, and should be read in conjunction with, our financial statements in our reports on Forms 10-Q and 10-K which are filed with the SEC. Our Forms 10-Q and 10-K may be found on our website athttp://ir.guidewire.com/phoenix.zhtml?c=248177&p=irol-sec.

Guidewire Software, Inc. and Subsidiaries

Condensed Consolidated Statement of Operations - Key Metrics

(unaudited, in thousands)

Description

Q1 2020

Q2 2020

Q3 2020

Q4 2020

FY 2020

Q1 2021

Q2 2021

Annual recurring revenue (in millions):

$

514

119,658 83,815

Annual recurring revenue (1)

$

463 $

474 $

483 $

509

$

513 $

520

Subscription and support revenue breakdown:

Subscription revenue

28,060

28,434

30,078

33,086

37,230

38,278

Support revenue

20,971

21,116

20,694

21,034

20,736

21,285

Total subscription and support revenue

$

49,031 $

49,550 $

50,772 $

54,120

$

203,473

$

57,966 $

59,563

$

328,489 3,065

License revenue breakdown:

Term license revenue

$

54,314 $

74,478 $

62,656 $

137,041

$

65,225 $

77,864

Perpetual license revenue

49

2,042

448

526

58

48

Total license revenue

54,363

76,520

63,104

137,567

$

331,554

65,283

77,912

  • $ 113,066

$

(21,377) (4,283)

Adjusted free cash flow:

Net cash provided by (used in) operating activities

$

(18,138) $

19,474 $

4,571 $

107,159

$

(15,707) $

13,329

Purchases of property and equipment

$

(9,625) $

(1,629) $

(7,712) $

(2,411)

$

(1,907) $

(3,610)

Capitalized software development costs

(1,346)

(864)

(1,063)

(1,010)

(2,581)

(2,303)

Total free cash flow

$

(29,109) $

16,981 $

(4,204) $

103,738

$

87,406

$

(20,195) $

7,416

Build out of San Mateo headquarters

$

(7,947) $

314 $

(5,254) $

1,756

$

(11,131)

$

- $

-

Total adjusted free cash flow

$

(21,162) $

16,667 $

1,050 $

101,982

$

98,537

$

(20,195) $

7,416

(1) ARR for Fiscal year 2021 is based on actual currency rates at the end of fiscal year 2020, held constant throughout the year.

These schedules have been derived from, and should be read in conjunction with, our financial statements in our reports on Forms 10-Q and 10-K which are filed with the SEC. Our Forms 10-Q and 10-K may be found on our website athttp://ir.guidewire.com/phoenix.zhtml?c=248177&p=irol-sec.

$ (3,610) (2,303)

Guidewire Software, Inc. and Subsidiaries

Condensed Consolidated Statement of Operations - Non-GAAP Gross Profit Reconciliations

(unaudited, in thousands except percentage)

Description

Q1 2020

Q2 2020

Q3 2020

Q4 2020

FY 2020

Q1 2021

Q2 2021

Gross profit reconciliation:

$ 404,292

29,160 19,221

-

GAAP gross profit

$

76,154

$

89,862

$

82,413

$ 155,863

$

78,835

$

88,160

Non-GAAP adjustments:

Stock-based compensation

7,145

7,543

7,025

7,447

8,396

8,677

Amortization of intangibles

4,945

4,945

4,805

4,526

4,526

4,526

COVID-19 Canada Emergency Wage Subsidy benefit (1)

-

-

-

-

-

(968)

Non-GAAP gross profit

$

88,244

$ 102,350

$

94,243

$ 167,836

$ 452,673

$

91,757

$ 100,395

Non-GAAP gross margin

56.2 %

59.0 %

56.0 %

68.9 %

61.0 %

54.0 %

55.8 %

Gross profit reconciliation - subscription and support:

$

86,315

7,575 17,621

-

GAAP gross profit - subscription and support

$

24,098

$

21,338

$

20,250

$

20,629

$

20,960

$

19,405

Non-GAAP adjustments:

Stock-based compensation

1,633

1,886

1,986

2,070

2,602

2,954

Amortization of intangibles

4,545

4,545

4,405

4,126

4,126

4,126

COVID-19 Canada Emergency Wage Subsidy benefit (1)

-

-

-

-

-

(770)

Non-GAAP gross profit - subscription and support

$

30,276

$

27,769

$

26,641

$

26,825

$ 111,511

$

27,688

$

25,715

Non-GAAP gross margin - subscription and support

61.7 %

56.0 %

52.5 %

49.6 %

54.8 %

47.8 %

43.2 %

Gross profit reconciliation - license:

$ 319,988

769

1,600

GAAP gross profit - license (1)

$

51,806

$

73,616

$

60,538

$ 134,028

$

62,346

$

75,078

Non-GAAP adjustments:

Stock-based compensation

180

188

177

224

251

145

Amortization of intangibles

400

400

400

400

400

400

Non-GAAP gross profit - license

$

52,386

$

74,204

$

61,115

$ 134,652

$ 322,357

$

62,997

$

75,623

Non-GAAP gross margin - license

96.4 %

97.0 %

96.8 %

97.9 %

97.2 %

96.5 %

97.1 %

Gross profit reconciliation - services:

$

(2,011)

20,816 -

-

GAAP gross profit - services

$

250

$

(5,092)

$

1,625

$

1,206

$

(4,471)

$

(6,323)

Non-GAAP adjustments:

Stock-based compensation

5,332

5,469

4,862

5,153

5,543

5,578

Amortization of intangibles

-

-

-

-

-

-

COVID-19 Canada Emergency Wage Subsidy benefit (1)

-

-

-

-

-

(198)

Non-GAAP gross profit - services

$

5,582

$

377

$

6,487

$

6,359

$

18,805

$

1,072

$

(943)

Non-GAAP gross margin - services

10.4 %

0.8 %

11.9 %

12.2 %

9.1 %

2.3 %

(2.2)%

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

These schedules have been derived from, and should be read in conjunction with, our financial statements in our reports on Forms 10-Q and 10-K which are filed with the SEC. Our Forms 10-Q and 10-K may be found on our website athttp://ir.guidewire.com/phoenix.zhtml?c=248177&p=irol-sec.

6

Guidewire Software, Inc. and Subsidiaries

Condensed Consolidated Statement of Operations - Non-GAAP Reconciliations

(unaudited, in thousands)

Description

Q1 2020

Q2 2020

Q3 2020

Q4 2020

FY 2020

Q1 2021

Q2 2021

Income (loss) from operations reconciliation:

$

(24,597) $

(18,030) $

(25,600) $

44,341

$

(23,886)

101,817 26,834

-

$

(31,604) $

(27,070)

GAAP income (loss) from operations

Non-GAAP adjustments:

Stock-based compensation

24,558

26,736

24,781

25,742

28,084

29,896

Amortization of intangibles

7,167

6,742

6,602

6,323

6,323

6,323

COVID-19 Canada Emergency Wage Subsidy benefit (1)

-

-

-

-

-

(1,686)

Non-GAAP income (loss) from operations

$ 0

7,128 $ 0

15,448 $ 0

5,783 $ 0

76,406

$ 0

104,765

$

2,803 $

7,463

Net income (loss) reconciliation:

$

(27,198)

101,817

26,834

12,886

10,672 -

(19,243)

GAAP net income (loss)

$

(14,991) $

(19,944) $

(31,038) $

38,775

$

(20,190) $

(8,652)

Non-GAAP adjustments:

Stock-based compensation

24,558

26,736

24,781

25,742

28,084

29,896

Amortization of intangibles

7,167

6,742

6,602

6,323

6,323

6,323

Amortization of debt discount and issuance costs

3,156

3,198

3,244

3,288

3,335

3,379

Changes in fair value of strategic investment

-

-

10,672

-

-

-

COVID-19 Canada Emergency Wage Subsidy benefit (1)

-

-

-

-

-

(1,686)

Non-GAAP tax impact

(8,912)

826

(6,559)

(4,598)

(3,143)

(20,232)

Non-GAAP net income (loss)

$

10,978 $

17,558 $

7,702 $

69,530

$

105,768

$

14,409 $

9,028

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

These schedules have been derived from, and should be read in conjunction with, our financial statements in our reports on Forms 10-Q and 10-K which are filed with the SEC. Our Forms 10-Q and 10-K may be found on our website athttp://ir.guidewire.com/phoenix.zhtml?c=248177&p=irol-sec.

$

(27,070)

(1,686)

$

(8,652)

(1,686) (20,232)

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Guidewire Software Inc. published this content on 04 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 March 2021 22:12:05 UTC.