Guidewire Software develops software for the insurance industry. The company's InsuranceSuite offers applications to property and casualty insurers 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 Its software is intended to replace paper-based processes and legacy systems built around outdated programming languages. Its products can run on-premise or from the cloud. Guidewire counts some 210 customers in two dozen countries. It customers include Tokio Marine, Nationwide Mutual, and Zurich Financial Services.
Licensing of the company's software brings in about 47% of revenue while service accounts for another 40%. Maintenance rounds out the revenue pie with a 13% slice.
Guidewire's software is generally licensed over a five-year contract and is priced according to the number of the insurance provider's written premiums. It charges customers in advance for both term license and maintenance fees.
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 2015 the US accounted for 55% of Guidewire's revenues. The UK supplies 12% of revenue and Canada's share is 10%.
Sales and Marketing
The company has more than 230 employees in a sales and marketing capacity, including 41 direct sales representatives organized by geographic region across Australia, Canada, France, Germany, Hong Kong, Japan, the UK, and the US. Guidewire's 10 largest customers accounted for 31% of revenue in 2015, a bit lower than the 35% of 2014.
Guidewire's revenue increased 8% to $380.5 million in 2015 (ended July) driven by continued adoption of the company's InsuranceSuite package. A growing customer based led to a 19% increase in maintenance fees. Geographically the company had strong growth in Europe and Asia-Pacific, but saw reduced revenue from Canada and other countries in the Americas other than the US, where sales increased 2%.
Net income decreased 33% in 2015 due to an increase in operating expenses such as an increase in research and development expenses and taxes. Profit has declined since it peaked at $35.5 million in 2011.
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.
Guidewire is intent on expanding its insurance software footprint internationally. It established a Regional Development Centre in Krakow to help the company further expand its global operations. It is Guidewire's sixth global development center, joining teams in California, Dublin, Pennsylvania, Tokyo, and Toronto.
The company also expanded its Ireland operations by the leasing of additional office space to handle its growing team. It anticipates hiring 60-80 new staff in 2015-2016.
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.