Guidewire Software, Inc. (NYSE:GWRE) Q1 2020 Earnings Conference Call - Final Transcript

Dec 05, 2019 • 05:00 pm ET


Guidewire Software, Inc. (NYSE:GWRE) Q1 2020 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the Guidewire's First Quarter 2020 Financial Results Conference Call. [Operator Instructions] I would now like to turn the conference over to your presenter, Mr. Curtis Smith, Chief Financial Officer. Please go ahead, sir.

Curtis Smith

Good afternoon, and welcome to Guidewire Software's earnings conference call for the first fiscal quarter of fiscal year 2020, which ended on October 31st, 2019. My name is Curtis Smith. I am the Chief Financial Officer of Guidewire and with me on the call is Mike Rosenbaum, Guidewire's Chief Executive Officer. Complete disclosure of our results can be found in our press release issued today as well as in our related Form 8-K furnished to the SEC, both of which are available on the Investor Relations section of our website at As a reminder, today's call is being recorded and a replay will be available following the conclusion of the call. During the call, we will make forward-looking statements pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 regarding trends, strategies and anticipated performance of the business, including the market shift to cloud offerings, our product roadmap and future product availability.

These forward-looking statements are based on management's current views and expectations as of today and should not be relied upon as representing our views as of any subsequent date. We disclaim any obligation to update any forward-looking statements or outlook. Actual results may differ materially. Please refer to the Risk Factors in our most recent Form 10-K and 10-Qs filed with the SEC. We will also refer to certain non-GAAP financial measures to provide additional information to investors. A reconciliation of non-GAAP to GAAP measures is provided in our press release. Reconciliations and additional data are also posted in a supplement on our IR website.

During the call, we may offer incremental metrics to provide greater insight into the dynamics of our business. These details may be one-time in nature and we may or may not provide updates in the future. With that, let me turn the call over to Mike for his prepared remarks and then I will provide details on our results before providing our outlook for Q2 and fiscal 2020. Mike and I will then take your questions.

Mike Rosenbaum

Thank you, Curtis, and thanks to those of you joining us for our first quarter earnings call. We're off to a positive start to fiscal 2020 with total revenue and EPS that were above the high end of our guidance ranges. Total revenue was $157 million, and license and subscription revenue was $82.4 million, both exceeding the top end of our guidance. ARR ended Q1 at $463 million, up from $460 million as of the end of Q4.

Overall, we were pleased with our financial performance in Q1, which is always a seasonally slow quarter for us in terms of new sales activity, and we believe somewhat impacted this year by our strong performance in Q4. Connections, our annual user conference, was held just after