Revenue during the quarter grew 14.40 percent to $94.13 million from $82.28 million in the previous year period. Gross margin for the quarter contracted 190 basis points over the previous year period to 55.36 percent. Operating margin for the quarter stood at negative 19.44 percent as compared to a negative 10.89 percent for the previous year period.

Operating loss for the quarter was $18.30 million, compared with an operating loss of $8.96 million in the previous year period.

However, the adjusted operating income for the quarter stood at $1.01 million compared to $6.54 million in the prior year period. At the same time, adjusted operating margin contracted 688 basis points in the quarter to 1.08 percent from 7.95 percent in the last year period.

"Revenue and profitability exceeded our guidance for the first quarter," said Marcus Ryu, chief executive officer, Guidewire Software. "We continue to see P/C insurers of all sizes undertaking transformation programs to compete in a more digital and data-driven future. Our product strategy of unifying a transactional core with digital and data solutions matches this demand, as reflected by strong interest in our new cloud-based Predictive Analytics and Underwriting Management solutions."

For the second-quarter 2017, Guidewire Software, Inc. forecasts revenue to be in the range of $106 million to $110 million. The company projects net loss to be in the range of $2.90 million to $1.20 million. The company expects adjusted net income to be in the range of $8.90 million to $11.60 million. The company forecasts operating loss to be in the range of $6.70 million to $2.70 million. The company forecasts adjusted operating income to be in the range of $13.50 million to $17.50 million. The company expects diluted loss per share to be in the range of $0.04 to $0.02. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.12 to $0.15.

For financial year 2017, Guidewire Software, Inc. forecasts revenue to be in the range of $473 million to $483 million. The company projects net income to be in the range of $0.60 million to $5 million. The company expects adjusted net income to be in the range of $52.80 million to $59.40 million. The company forecasts adjusted operating income to be in the range of $77 million to $87 million. The company expects diluted earnings per share to be in the range of $0.01 to $0.07. The company expects diluted earnings per share to be in the range of $0.70 to $0.79 on adjusted basis.

The company has spent $79.80 million cash to meet investing activities during the quarter as against cash outgo of $9.48 million in the last year period.

Cash flow from financing activities was $1.11 million for the quarter, up 4.51 percent or $0.05 million, when compared with the last year period.

Cash and cash equivalents stood at $131.06 million as on Oct. 31, 2016, down 32 percent or $61.67 million from $192.73 million on Oct. 31, 2015.

Working capital declines
Guidewire Software, Inc. has witnessed a decline in the working capital over the last year. It stood at $505.42 million as at Oct. 31, 2016, down 6.81 percent or $36.95 million from $542.37 million on Oct. 31, 2015. Current ratio was at 6.05 as on Oct. 31, 2016, down from 8.07 on Oct. 31, 2015.

Days sales outstanding went down to 57 days for the quarter compared with 65 days for the same period last year.

At the same time, days payable outstanding went up to 21 days for the quarter from 19 for the same period last year.