Guidewire Software Slips To Loss On Expenses - Update

(RTTNews) - Guidewire Software Inc. (GWRE) said Tuesday it slipped to a loss for the first quarter as lower margins offset a five percent growth in revenue. However, the results came in above Wall Street estimates.

Shares of the company gained about 3 percent in after-hours trade on the New York Stock Exchange.

"Our first quarter results reflected our customary seasonality, but exceeded expectations for both revenue and profitability," said CEO Marcus Ryu. "We see good validation for the investments we are making in our existing products and in new initiatives that expand our market opportunity."

Guidewire provides system software to the property and casualty insurance industry.

The Foster City, California-based company posted quarterly net loss of $10.6 million or $0.18 per share, compared with net income of $0.45 million or $0.01 per share last year.

Results for the recent quarter included stock-based compensation expense of $14.7 million, compared with $9.8 million last year.

Excluding items, adjusted loss for the quarter was $0.01 million or $0.01 per share, compared with net income of $6.7 million or $0.11 per share a year ago.

On average, six analysts polled by Thomson Reuters expected a loss of $0.16 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter climbed 5 percent to $66.5 million from $63 million last year. Analysts expected revenue of $62.78 million.

Cost of revenue for the quarter climbed to $40 million from $27.6 million last year. Also, operating expenses were higher at about $45 million, compared with $36 million a year ago.

The company's stock closed Tuesday at $44.98, down $1.42 or 3.06%, on a volume of 940 thousand shares on the NYSE. In after hours, the stock gained $1.33 or 2.96% at $46.31.