Guidewire Software (GWRE) saw its loss widen to $1.82 million, or $0.02 a share for the quarter ended Apr. 30, 2017. In the previous year period, the company reported a loss of $0.40 million, or $0.01 a share. On the other hand, adjusted net income for the quarter stood at $12.28 million, or $0.16 a share compared with $10.67 million or $0.14 a share, a year ago. 

Revenue during the quarter grew 24.86 percent to $123.44 million from $98.86 million in the previous year period. Gross margin for the quarter contracted 224 basis points over the previous year period to 58.30 percent. Operating margin for the quarter stood at negative 3.52 percent as compared to a negative 5.84 percent for the previous year period.

Operating loss for the quarter was $4.34 million, compared with an operating loss of $5.78 million in the previous year period.

However, the adjusted operating income for the quarter stood at $17.08 million compared to $10.99 million in the prior year period. At the same time, adjusted operating margin improved 272 basis points in the quarter to 13.83 percent from 11.12 percent in the last year period.

"Revenue and profitability exceeded our guidance for the third quarter," said Marcus Ryu, chief executive officer, Guidewire Software. "Our quarter benefited from the completion of a significant expansion of our relationship with an existing Tier 1 customer earlier in the fiscal year than we expected, as well as sales across our core, data, and digital product families."

For the fourth-quarter, Guidewire Software projects revenue to be in the range of $165.80 million to $169.80 million. It expects net income to be in the range of $9.10 million to $11.20 million.  It forecasts adjusted net income to be in the range of $27.30 million to $30.10 million.  The company projects operating income to be in the range of $16.50 million to $20.50 million.  The company projects adjusted operating income to be in the range of $39.40 million to $43.40 million.  The company forecasts diluted earnings per share to be in the range of $0.12 to $0.15.  On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.36 to $0.40. 

For fiscal year 2017, Guidewire Software projects revenue to be in the range of $499 million to $503 million.  It expects net income to be in the range of $3.40 million to $5.50 million. It forecasts adjusted net income to be in the range of $61.40 million to $64.10 million, the company projects operating income to be in the range of $2 million to $6 million, the company projects adjusted operating income to be in the range of $86 million to $90 million. The company forecasts diluted earnings per share to be in the range of $0.05 to $0.07. The company forecasts diluted earnings per share to be in the range of $0.82 to $0.86 on adjusted basis.

The company has spent $96.81 million cash to meet investing activities during the nine month period as against cash outgo of $62.95 million in the last year period.

Cash flow from financing activities was $2.46 million for the nine month period, down 45.39 percent or $2.04 million, when compared with the last year period.

Cash and cash equivalents stood at stood at $180.17 million as at Apr. 30, 2017.