Guidewire Software Inc (NYSE: GWRE) stock fell over 16.8% on 5th March, 2020 (Source: Google finance) as the firm slashed its annual guidance. Guidewire has reported fiscal second-quarter earnings of $19.9 million. The software company now expects full-year 2020 revenue to be in the range of $702 million to $714 million, after previously stating a forecast of range of $759 million to $771 million, and blamed a faster-than-expected cloud transition.
On the other hand, in the second quarter of FY 20, the company had achieved some very strategic milestones achieved in the quarter. First, the company was honored to be selected by USAA for their Policy Transformation Project covering all 22 billion of their DWP. Secondly, the company got back on the board with an insurance now win at Warrior Invictus Holding Company, which is a Tier 4 insurer and parent company to First Chicago Insurance Company and United Security Health and Casualty. After the close of the second quarter, the company had significantly expanded the ARR and existing InsuranceNow customer, Tuscarora Wayne Insurance Company by agreeing to migrate their on-premises instance to our cloud-based offering. In the second quarter, a large existing Tier 1 self-managed customer selected PolicyCenter, BillingCenter, and Digital in the Cloud for use by the innovation group tasked with developing novel insurance products and bringing them to market quickly. During the second quarter, the company had seven customers go live for the first time on 20 different products. On top of that, five customers completed major version upgrades, including two customers who upgraded to InsuranceSuite 10 and one customer who upgraded to the latest version of InsuranceNow. The company also continues to see existing customers add Digital and Data products with Admiralty CAA Club Group of Canada and Western Reserve Group adding data management in the second quarter and Republic Indemnity, RSA Canada Group, Western National Mutual Group, and Zurich Insurance adding digital.
GWRE in the second quarter of FY 20 has reported the adjusted earnings per share of 21 cents, while reported the adjusted revenue growth of 3 percent to $173.5 million in the second quarter of FY 20.