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]