Guidewire Software, Inc.

This is our first report on Guidewire, a leading provider of software solutions for property and casualty (P&C) insurers worldwide. The company reported an excellent finish to its fiscal year and beat Wall Street expectations on all counts. Even though they generated a significant amount of deals in the quarter, they completed them with smaller upfront payments, a trend that might continue as customers increase. As the fiscal year began, the company closed fewer significant cloud migrations than anticipated. Besides, they have improved the user and employee experience and freed up priceless IT resources to support a shift in emphasis toward innovation and commercial value. A significant Tier 1 carrier went live with ClaimCenter on the Guidewire Cloud Platform. Guidewire also introduced 13 new solution partners to the Guidewire Marketplace, bringing the total number of solution partners on its platform to over 160. They are currently operating in a sizable, resilient sector steadily undergoing a significant digital transition. We initiate coverage on the stock of Guidewire with a ‘Buy’ rating.