Guidewire Software 3Q Loss Widens on Higher Expenses

Guidewire Software 3Q Loss Widens on Higher Expenses
Guidewire Software 3Q Loss Widens on Higher Expenses

Guidewire Software Inc. said Tuesday that despite increased revenue its third-quarter profit fell on rising operating expenses.

The company, which provides a software platform for the insurance industry, said its loss widened to $57.4 million, or 69 cents a share, for the quarter that ended April 30, compared to a loss of $36.6 million, or 44 cents a share, a year ago.

On an adjusted basis, Guidewire had a loss of $21.8 million, or 26 cents a share, wider than the loss of $13.2 million, or 16 cents a share, in the prior-year period. Analysts polled by FactSet expected an adjusted loss of 28 cents a share.

Total revenue rose 20% to $197.4 million. Analysts expected $188.4 million.

The San Mateo, Calif.-based company reported higher operating expenses in sales and marketing and research and development during the quarter.

The company said annual recurring revenue was $637 million as of April 30. Subscription and support revenue was up 34% to $86.9 million and services revenue was up 18% to $56.7 million.

Chief Executive Mike Rosenbaum said in prepared remarks that the company’s momentum is a result of the Guidewire Cloud product and the resiliency of its customers.


Write to Kathryn Hardison at [email protected]