FOSTER CITY, Calif. (AP) — Insurance industry software provider Guidewire Software Inc. said Tuesday that net income fell in its fiscal first quarter as it invested more money in its business and its stock-based compensation costs increased.
Revenue rose 21 percent during the quarter ended Oct. 31, but profitability declined as investments increased and compensation costs nearly tripled to $9.8 million.
Net income sank to $447,000, or a penny per share, from $4.8 million, or 9 cents per share. Excluding one-time items, earnings fell to 11 cents per share from 15 cents per share. Revenue rose to $63.3 million from $52.4 million.
Analysts expected break-even on a per share basis with $60.6 million in revenue, according to FactSet.
Guidewire's license revenue was unchanged at $20.8 million. Service revenue rose 35 percent to $33.1 million and maintenance revenue climbed to $9.4 million from $7.1 million.
Guidewire shares lost 24 cents to close at $29.46. They dropped $3.56, or 12.1 percent, to $25.90 in after-hours trading.
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