Guidewire Software has staked its claim on providing software to the insurance industry. The company's InsuranceSuite offers applications to the property and casualty insurance industry for underwriting, policy administration (PolicyCenter), claims management (ClaimsCenter), and billing (BillingCenter). Its software is intended to replace paper-based processes and legacy systems built around outdated programming languages. Guidewire counts about 100 customers in a dozen countries. It customers include Tokio Marine, Nationwide Mutual, and Zurich Financial Services.
Guidewire's corporate headquarters is in Foster City, California. It also leases facilities for distributed sales and international operations in Dublin, Ireland; Edina, Minnesota; London, United Kingdom; Mississauga, Ontario, Canada; Munich, Germany; Paris, France; Sydney, Australia; and Tokyo, Japan.
In 2012 the US accounted for 55% of Guidewire's revenues.
Sales and Marketing
The company has more than 120 employees in a sales and marketing capacity, including 23 direct sales representatives organized by geographic region across Australia, Canada, France, Germany, Hong Kong, Japan, the UK, and the US.
The company generates revenue through licensing its software, providing professional services, and maintenance. Its software is generally licensed over a five-year contract and is priced according to the number of the insurance provider's written premiums. Guidewire charges customers in advance for both term license and maintenance fees.
Guidewire's revenues increased by 35% in 2012 driven by continued adoption of the company's Claim Center software, increasing adoption of itsPolicy Center and Suite software, and increased sales and marketing efforts in North America and Europe. The rise in maintenance revenues was primarily driven by new orders. Service revenues increased due to increase use of the company's software.
Net income decreased by 57% in 2012 due to an increase in operating expenses such as an increase in research and development expenses and Sales and Marketing and General Administrative expenses, primarily due to an increase in personnel-related expenses (as a result of adding 45 employees). Other factors included an increase in administrative and other professional services expenses, and an increase in stock-based compensation.
The company has extensive relationships with system integration, consulting, and industry partners. It encourages partners to co-market, pursue joint sales initiatives and drive broader adoption of their technology. Its leading system integrator partners include Capgemini, Ernst & Young, IBM Global Services, and PricewaterhouseCoopers.
In 2012 Guidwire's customer base in Europe increased by 20%. Guidewire has 19 customers in seven countries across Europe. Ten insurers across the region are using a Guidewire system. These include Beazley, Direct Line UK, LV=, NFU Mutual, Towergate, Rosgosstrakh, QBE Europe , and a top three French insurer.
Funds affiliated with Bay Partners own 10.9% of the company.
Guidewire was founded in 2001 by CEO Marcus Ryu, Product Strategy Director Kenneth Branson, and four others who are no longer with the company. Its ClaimCenter product launched in 2003, PolicyCenter in 2004 and BillingCenter in 2006.
Guidewire filed a $100 million initial public offering in September 2011 and began trading on the NYSE in 2012.