Delaware | 001-35394 | 36-4468504 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit No. | Description of Exhibits | |
99.1 | Press release dated November 27, 2012, titled "Guidewire Software Announces First Quarter Fiscal 2013 Financial Results" |
GUIDEWIRE SOFTWARE, INC. | |
By: | /s/ Karen Blasing |
Karen Blasing | |
Chief Financial Officer |
Exhibit No. | Description of Exhibits | ||
99.1 | Press release dated November 27, 2012, titled "Guidewire Software Announces First Quarter Fiscal 2013 Financial Results" |
• | Total revenue for the first quarter of fiscal 2013 was $63.3 million, an increase of 21% from the comparable period in fiscal 2012. |
• | License revenue for the first quarter of fiscal 2013 was $20.8 million, consistent with the comparable period in fiscal 2012. Reflecting the company's focus on recurring revenue, term license revenue was $20.6 million, a 67% increase from a year ago and revenue from perpetual licenses was $0.2 million compared with $8.5 million a year ago. Maintenance revenue was $9.4 million, up 32% from the comparable period in fiscal 2012, and services revenue was $33.1 million, up 35% from the comparable period in fiscal 2012. |
• | Rolling four-quarter recurring term license and maintenance revenue was $114.9 million, an increase of 31% from the comparable period in fiscal 2012. |
• | GAAP operating loss was $0.1 million for the first quarter of fiscal 2013, compared to operating income of $8.1 million in the comparable period in fiscal 2012. |
• | Non-GAAP operating income was $9.7 million for the first quarter of fiscal 2013, compared to $11.4 million in the comparable period in fiscal 2012. |
• | Adjusted EBITDA was $10.8 million for the first quarter of fiscal 2013, compared to $12.1 million in the comparable period in fiscal 2012. |
• | GAAP net income was $0.4 million for the first quarter of fiscal 2013, compared to $4.8 million for the comparable period in fiscal 2012. GAAP net income per share was $0.01, based on diluted weighted average shares outstanding of 61.2 million, compared to a GAAP net income per share of $0.09 for the comparable period in fiscal 2012, based on diluted weighted average shares outstanding of 21.2 million. |
• | Non-GAAP net income was $6.7 million for the first quarter of fiscal 2013, compared to $7.0 million in the comparable period in fiscal 2012. Non-GAAP net income per diluted share was $0.11, based on diluted weighted average shares outstanding of 61.2 million, compared to $0.15 for the first quarter of fiscal 2012, based on pro forma diluted weighted average shares outstanding of 46.5 million. |
• | The year-over-year decline in profitability metrics during the first quarter of 2012 was due primarily to greater investment across the business and increased stock-based compensation expense. |
• | The Company had $185.5 million in cash and cash equivalents at October 31, 2012, a decrease from $205.7 million at July 31, 2012. The Company used $16.3 million in cash flow for operations in the first quarter, an improvement from $27.1 million used in cash flow for operations in the comparable period in fiscal 2012. The company used $10.0 million in cash during the first quarter of fiscal 2012 to pay for a litigation settlement. |
What: | Guidewire Software first quarter fiscal 2013 financial results conference call |
GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(unaudited, in thousands) | |||||||
October 31, 2012 | July 31, 2012 | ||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 185,472 | $ | 205,718 | |||
Restricted cash, current portion | 2,121 | 3,726 | |||||
Accounts receivable | 38,132 | 32,313 | |||||
Deferred tax asset, current portion | 14,359 | 13,442 | |||||
Prepaid expenses and other current assets | 6,275 | 7,266 | |||||
Total current assets | 246,359 | 262,465 | |||||
Property and equipment, net | 11,535 | 11,924 | |||||
Deferred tax asset, net of current portion | 9,313 | 9,313 | |||||
Other assets | 534 | 545 | |||||
TOTAL ASSETS | $ | 267,741 | $ | 284,247 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Accounts payable | $ | 6,517 | $ | 9,781 | |||
Accrued employee compensation | 14,695 | 26,502 | |||||
Deferred revenues, current portion | 41,549 | 52,947 | |||||
Other current liabilities | 3,942 | 3,957 | |||||
Total current liabilities | 66,703 | 93,187 | |||||
Deferred revenues, net of current portion | 2,057 | 2,569 | |||||
Other liabilities | 5,362 | 4,529 | |||||
Total liabilities | 74,122 | 100,285 | |||||
STOCKHOLDERS’ EQUITY: | |||||||
Common stock | 5 | 5 | |||||
Additional paid-in capital | 216,850 | 207,624 | |||||
Accumulated other comprehensive loss | (512 | ) | (496 | ) | |||
Accumulated deficit | (22,724 | ) | (23,171 | ) | |||
Total stockholders’ equity | 193,619 | 183,962 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 267,741 | $ | 284,247 |
GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES | |||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||
(unaudited, in thousands) | |||||||
Three Months Ended October 31, | |||||||
2012 | 2011 | ||||||
Revenues : | |||||||
License | $ | 20,812 | $ | 20,815 | |||
Maintenance | 9,370 | 7,106 | |||||
Services | 33,119 | 24,459 | |||||
Total revenues | 63,301 | 52,380 | |||||
Cost of revenues: | |||||||
License | 167 | 299 | |||||
Maintenance | 1,564 | 1,266 | |||||
Services | 25,826 | 17,925 | |||||
Total cost of revenues (1) | 27,557 | 19,490 | |||||
Gross profit : | |||||||
License | 20,645 | 20,516 | |||||
Maintenance | 7,806 | 5,840 | |||||
Services | 7,293 | 6,534 | |||||
Total gross profit | 35,744 | 32,890 | |||||
Operating expenses: | |||||||
Research and development | 14,764 | 10,959 | |||||
Sales and marketing | 12,376 | 7,361 | |||||
General and administrative | 8,666 | 6,438 | |||||
Total operating expenses (1) | 35,806 | 24,758 | |||||
Income (loss) from operations | (62 | ) | 8,132 | ||||
Interest income, net | 90 | 40 | |||||
Other income (expense), net | 141 | (316 | ) | ||||
Income before provision for (benefit from) income taxes | 169 | 7,856 | |||||
Provision for (benefit from) income taxes | (278 | ) | 3,044 | ||||
Net income | $ | 447 | $ | 4,812 | |||
Net income per share: | |||||||
Basic | $ | 0.01 | $ | 0.10 | |||
Diluted | $ | 0.01 | $ | 0.09 | |||
Shares used in computing net income per share: | |||||||
Basic | 54,814,044 | 14,554,428 | |||||
Diluted | 61,185,270 | 21,153,440 |
Three Months Ended October 31, | |||||||
2012 | 2011 | ||||||
Stock-based compensation expenses: | (in thousands) | ||||||
Cost of maintenance revenues | $ | 261 | $ | 72 | |||
Cost of services revenues | $ | 2,616 | $ | 686 | |||
Research and development | 2,042 | 845 | |||||
Marketing and sales | 1,651 | 497 | |||||
General and administrative | 3,214 | 1,212 | |||||
Total stock-based compensation expenses | $ | 9,784 | $ | 3,312 |
GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(unaudited, in thousands) | |||||||
Three Months Ended October 31, | |||||||
2012 | 2011 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 447 | $ | 4,812 | |||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||
Depreciation and amortization | 1,100 | 679 | |||||
Stock-based compensation | 9,784 | 3,312 | |||||
Excess tax benefit from exercise of stock options and vesting of RSUs | (114 | ) | — | ||||
Deferred tax assets | (917 | ) | 2,819 | ||||
Changes in operating assets and liabilities: | — | ||||||
Accounts receivable | (5,847 | ) | (7,749 | ) | |||
Prepaid expenses and other assets | 1,016 | 1,543 | |||||
Accounts payable | 827 | 644 | |||||
Accrued employee compensation | (11,604 | ) | (9,000 | ) | |||
Other liabilities | 929 | (10,366 | ) | ||||
Deferred revenues | (11,900 | ) | (13,779 | ) | |||
Net cash used in operating activities | (16,279 | ) | (27,085 | ) | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchase of property and equipment | (4,810 | ) | (490 | ) | |||
Decrease in restricted cash | 1,605 | — | |||||
Net cash used in investing activities | (3,205 | ) | (490 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Proceeds from issuance of common stock upon exercise of stock options | 3,163 | 402 | |||||
Taxes remitted on RSU awards vested | (4,164 | ) | — | ||||
Costs paid in connection with public offerings | — | (973 | ) | ||||
Excess tax benefit from exercise of stock options and vesting of RSUs | 114 | — | |||||
Net cash used in financing activities | (887 | ) | (571 | ) | |||
Effect of foreign exchange rate changes on cash and cash equivalents | 125 | (308 | ) | ||||
NET DECREASE IN CASH AND CASH EQUIVALENTS | (20,246 | ) | (28,454 | ) | |||
CASH AND CASH EQUIVALENTS—Beginning of period | 205,718 | 59,625 | |||||
CASH AND CASH EQUIVALENTS—End of period | $ | 185,472 | $ | 31,171 |
GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES | |||||||
Reconciliation of GAAP to Non-GAAP Operating Results | |||||||
(unaudited, in thousands except share and per share data) | |||||||
The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP operating results for the periods indicated below: | |||||||
Three Months Ended October 31, | |||||||
2012 | 2011 | ||||||
Gross profit reconciliation: | |||||||
GAAP gross profit | $ | 35,744 | $ | 32,890 | |||
Stock-based compensation | 2,877 | 758 | |||||
Non-GAAP gross profit | $ | 38,621 | $ | 33,648 | |||
Three Months Ended October 31, | |||||||
2012 | 2011 | ||||||
Gross margin reconciliation - maintenance: | |||||||
GAAP gross margin - maintenance | 83.3 | % | 82.2 | % | |||
Stock-based compensation - maintenance | 2.8 | % | 1.0 | % | |||
Non-GAAP gross margin - maintenance | 86.1 | % | 83.2 | % | |||
Three Months Ended October 31, | |||||||
2012 | 2011 | ||||||
Gross margin reconciliation - services: | |||||||
GAAP gross margin - services | 22.0 | % | 26.7 | % | |||
Stock-based compensation - services | 7.9 | % | 2.8 | % | |||
Non-GAAP gross margin - services | 29.9 | % | 29.5 | % | |||
Three Months Ended October 31, | |||||||
2012 | 2011 | ||||||
Gross margin reconciliation - total: | |||||||
GAAP gross margin | 56.5 | % | 62.8 | % | |||
Stock-based compensation | 4.5 | % | 1.4 | % | |||
Non-GAAP gross margin | 61.0 | % | 64.2 | % | |||
Three Months Ended October 31, | |||||||
2012 | 2011 | ||||||
Operating expense reconciliation: | |||||||
Total GAAP operating expenses | 35,806 | 24,758 | |||||
Less Stock-based compensation | 6,907 | 2,554 | |||||
Total non-GAAP operating expenses | $ | 28,899 | $ | 22,204 | |||
Three Months Ended October 31, | |||||||
2012 | 2011 | ||||||
Operating income (loss) reconciliation: | |||||||
GAAP operating income (loss) | $ | (62 | ) | $ | 8,132 | ||
Stock-based compensation | 9,784 | 3,312 | |||||
Non-GAAP operating income | $ | 9,722 | $ | 11,444 | |||
Three Months Ended October 31, | |||||||
2012 | 2011 | ||||||
Pre-tax income reconciliation: | |||||||
GAAP pre-tax income | $ | 169 | $ | 7,856 | |||
Stock-based compensation | 9,784 | 3,312 | |||||
Non-GAAP pre-tax income | $ | 9,953 | $ | 11,168 | |||
Three Months Ended October 31, | |||||||
2012 | 2011 | ||||||
Net income reconciliation: | |||||||
GAAP net income | $ | 447 | $ | 4,812 | |||
Stock-based compensation | 9,784 | 3,312 | |||||
Less tax benefit of non-GAAP items | (3,532 | ) | (1,159 | ) | |||
Non-GAAP net income | $ | 6,699 | $ | 6,965 | |||
Three Months Ended October 31, | |||||||
2012 | 2011 | ||||||
Computation of net income per share: | |||||||
GAAP net income | $ | 447 | $ | 4,812 | |||
Non-cumulative dividends to preferred stockholders | — | (823 | ) | ||||
Undistributed earnings allocated to preferred stockholders | — | (2,534 | ) | ||||
Net income, Basic | 447 | 1,455 | |||||
Adjustments to net income for dilutive options and restricted stock units | — | 358 | |||||
Net income, Diluted | $ | 447 | $ | 1,813 | |||
GAAP net income per share - Basic | $ | 0.01 | $ | 0.10 | |||
GAAP net income per share - Diluted | $ | 0.01 | $ | 0.09 | |||
Weighted average shares - Basic | 54,814,044 | 14,554,428 | |||||
Weighted average shares - Diluted | 61,185,270 | 21,153,440 | |||||
Three Months Ended October 31, | |||||||
2012 | 2011 | ||||||
Net income per share reconciliation: | |||||||
GAAP net income per share - Diluted | $ | 0.01 | $ | 0.09 | |||
Stock-based compensation | 0.16 | 0.16 | |||||
Less tax benefit of non GAAP items | (0.06 | ) | (0.05 | ) | |||
Pro forma conversion of preferred shares | — | (0.05 | ) | ||||
Non-GAAP net income per share - Diluted | $ | 0.11 | $ | 0.15 | |||
Three Months Ended October 31, | |||||||
2012 | 2011 | ||||||
Shares used in computing non-GAAP per share amounts: | |||||||
Weighted average shares - Diluted | 61,185,270 | 21,153,440 | |||||
Pro forma conversion of preferred shares | — | 25,357,721 | |||||
Pro forma weighted average shares - Diluted | 61,185,270 | 46,511,161 | |||||
Three Months Ended October 31, | |||||||
2012 | 2011 | ||||||
Adjusted EBITDA reconciliation: | |||||||
GAAP net income | $ | 447 | $ | 4,812 | |||
Non-GAAP adjustments: | |||||||
Provision for (benefit from) income taxes | (278 | ) | 3,044 | ||||
Other (income) expense, net | (141 | ) | 316 | ||||
Interest (income) expense, net | (90 | ) | (40 | ) | |||
Depreciation and amortization | 1,100 | 679 | |||||
Stock-based compensation | 9,784 | 3,312 | |||||
Adjusted EBITDA | $ | 10,822 | $ | 12,123 |