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About Guidewire Software, Inc.

Guidewire Software develops software for the insurance industry. The company's InsuranceSuite via Guidewire Cloud offers applications to property and casualty insurers for underwriting, policy administration (PolicyCenter), claims management (ClaimsCenter), and billing (BillingCenter). Its software is designed to support multiple releases a year to ensure that cloud customers remain on the latest version and gain rapid access to its innovation efforts. Its products can run on-premise or from the cloud. Guidewire counts more than 340 customers in around 35 countries. It customers include Alfa Insurance, Nationwide Insurance, and Promutuel. The company generates most of its sales from the US.

Operations

Licensing of the company's software brings in more than45% of revenue while service accounts for about 30%. Maintenance rounds out the revenue pie with more than 25% slice.

Guidewire's platform combines core operations, digital engagement, analytics, and artificial intelligence (AI) applications delivered as a cloud service or self-managed software. The company's core operational products are InsuranceSuite via Guidewire Cloud, InsuranceNow, and InsuranceSuite for self-managed installations. The products are core transactional systems of record that support the entire insurance lifecycle, including insurance product definition, distribution, underwriting, policyholder services, and claims management.

Geographic Reach

Guidewire's corporate headquarters is in San Mateo, California. It also leases facilities for distributed sales and international operations in Krakow, Poland; Kuala Lumpur, Malaysia; Madrid, Spain; Edina, Minnesota; London, United Kingdom; Mississauga, Canada; Paris, France; Sydney, Australia; and Tokyo, Japan.

The US accounted for more than 60% of Guidewire's revenues. Canada supplies about 10% of revenue and the UK's share is over 5%. 

Sales and Marketing

The company has almost 400 employees in a sales and marketing capacity, including direct sales representatives organized by geographic region across America, EMEA, and APAC.  The company sells its cloud-delivered offerings through subscription services and its self-managed products through term licenses to customers ranging from some of the largest global insurance companies or their subsidiaries to predominantly national or local insurers that serve specific states and/or regions. Guidewire's 10 largest customers accounted for more than 30% of revenue in 2020, 2019, and 2018.

Financial Performance

The company's revenue performance was on an upward trend for the past five years, posting growth of 75% over that span.

Guidewire's revenue increased 3% to $742.3 million in 2020 (ended July) driven by a continued increase in revenue from Subscription and support, and License segments, offset by a decrease in revenue from Services segment.

The company incurred a net loss of $27.2 million in 2020. An increase in total cost of revenue, higher operating expenses, and a $2.9 million provision for income tax contributed to the loss.

Cash and cash equivalents at the end of the period were $367 million. Net cash provided by operating activities $113.1 million and financing activities generated another $5 million, while investing activities used $5.8 million for purchases of securities.

Strategy

The company's business strategy includes the potential acquisition of shares or assets of companies with software, cloud-based services, technologies, or businesses complementary to Guidewire. Its strategy also includes alliances with such companies. For example, it has made several acquisitions in the past, including Cyence, a Software-as-a-Service company that applies data science and risk analytics to enable P&C insurers to underwrite "21st century risks" such as terrorism, cybersecurity, and reputational risk.

It works closely with its network of third-party SI partners to facilitate new sales and implementations of both its self-managed products and subscription services. Its partnerships with leading SI partners allow it to increase efficiency and scale while reducing customer implementation costs. It continues to invest time and resources to increase the number of qualified consultants employed by its SI partners, develop relationships with new partners in existing and new markets, and ensure that all SI partners are qualified to assist with implementing its products.

Company Background

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.

Guidewire Software, Inc.

2850 S Del St Ste 400
San Mateo, CA 94403
Phone: 1 (650) 357-9100

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: GWRE
Stock Exchange: , NYSE
Chairman: Craig A. Conway
SVP Corporate Development and Chief Administrative Officer: Priscilla Hung
President and CEO: Marcus S. Ryu
Employees (This Location): 148
Employees (All Locations): 2,690

Major Office Locations

San Mateo, CA

Other Locations

Minneapolis, MN
Mississauga, Canada
Moscow, Russia