Guidewire Software Inc (NYSE: GWRE) stock fell over 1.8% on June 6th, 2018 (as of 1:26 PM GMT-4; Source: Google finance) after the company in the third quarter of FY 18 has reported the adjusted earnings per share of 5 cents, which much lower than the year-ago figure of 16 cents per share.
The company had reported the adjusted revenue growth of 14 percent to $140.5 million in the third quarter of FY 18, while delivered Non-GAAP net income of $3.9 million compared with a net income of $12.3 million in the comparable period in fiscal 2017. Meanwhile, the company had $1,158.5 million in cash, cash equivalents and investments at April 30th, 2018, compared with $687.8 million at July 31, 2017. The increase was due to total net proceeds of $608.2 million related to the public offering of the common stock and convertible notes offering, partially offset by the use of approximately $130.1 million of cash in connection with the acquisition of Cyence.
Moreover, in the third quarter, momentum with cloud-based solutions continued. Almost 50% of the company’s year-to-date new sales are subscriptions, and GWRE continue to be at the high-end of the prior communicated rage of 30% to 40%, with nearly all of the remainder coming in the form of traditional recurring term licenses. In the third quarter, License and other revenue fell 15% to $50.4 million, services revenue rose 50% to $71.4 million, and maintenance revenue rose 11% to $18.7 million.
Rolling four-quarter recurring revenue was $334.4 million for the period ended April 30, 2018, an increase of 10% compared to the same metric for the period ended April 30, 2017
For the fourth quarter ending in July, GWRE expects its per-share earnings to be in the range of 72 cents to 77 cents. The company expects the revenue to be in the range of $234 million to $240 million for the fiscal fourth quarter. Analysts surveyed by Zacks had expected revenue of $239.6 million.
For the full year 2018, GWRE expects the full-year earnings to be in the range of $1.05 to $1.11 per share, and the revenue is expected to range from $647 million to $653 million.