Guidewire Software delivered a better-than-expected fiscal fourth quarter, but investors wanted a stronger growth outlook to justify the stock's recent gains, rather than another quarter that simply beat expectations.

Shares of the insurance-software provider tumbled more than 20% in after-hours trading Thursday to around $161. The stock had closed at $202.86, up 5.2% during the regular session.

For the quarter ended on July 31, Guidewire reported adjusted earnings of 99 cents a share, ahead of the 93 cents analysts had expected. Revenue rose 15% from a year earlier to $411.1 million, also topping the roughly $402.6 million Wall Street consensus, according to FactSet.

Annual recurring revenue, a closely watched measure of the company's subscription business, increased 19% on a constant-currency basis to $1.24 billion.

But investors are not so impressed by the company's near-term outlook. For the current quarter, Guidewire expects revenue to come between $372 million and $378 million, which is well below analysts' $387 million forecast.

Expectations had risen substantially heading into the report. Guidewire shares had gained roughly 35% since the end of July, helped by optimism around its cloud transition, a series of bullish analyst calls, and a broader rebound in software stocks.

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