Guidewire Software Q3 Loss Narrows - Update

(RTTNews) - Insurance software maker Guidewire Software Inc. (GWRE), Monday reported a smaller loss for the third quarter, helped mainly by a 20 percent growth in revenues. Adjusted earnings and revenues for the quarter came in ahead of Wall Street's expectations.

Foster City, California-based Guidewire's third-quarter loss narrowed to $1.4 million or $0.02 per share from $2.7 million or $0.05 per share for the year-ago quarter.

Excluding special items, adjusted net income for the third quarter improved to $7.6 million or $0.11 per share from $2.0 million or $0.03 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.03 per share for the third quarter. Analysts' estimates typically exclude special items.

Guidewire's revenue for the third quarter grew 20 percent to $82.0 million from $68.3 million a year ago. Analysts had a consensus revenue estimate of $78.70 million for the quarter.

"Our third quarter results exceeded our expectations for both revenue and profitability," said CEO Marcus Ryu. "New customer wins, expansions of existing relationships, and several major implementation go-lives all represented progress in our mission to be the global Property/Casualty insurance industry's premier technology partner in the replacement of its obsolete legacy core systems."

GWRE closed Monday's trading at $36.91, down $0.86 or 2.28%, on the Nasdaq. The stock, however, gained $1.69 or 4.58%, in after-hours trade.