Guidewire Software (GWRE) 9 Mar 222022 Q2 Earnings call transcript

Greetings and welcome to the Guidewire Second Quarter 2022 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Alex Hughes, VP of Investor Relations. Please go ahead.

Thank you, operator. to of earnings on fiscal welcome the call January and quarter second year afternoon Guidewire conference Software’s for XX. Good XXXX ended is name Alex My Hughes. Relations. I of Vice Investor am President Mike And Rosenbaum, Cooper, with Financial Officer. the me call Chief Chief Officer and on Executive Jeff is today disclosure X-K issued our furnished are SEC, of well complete to press results of available be our which Investor of our the website. found A as Relations on our in in can release as Form section our related both call of replay the Today’s recorded be will a is and the being available following conclusion call. call Statements matters. made other COVID-XX on our forward-looking this impact our demand, on include customer results, operations, of the financial products, and regarding business ones management’s relied current not as and are should as date. any today upon expectations to These and statements assumptions on subject of be our uncertainties subsequent risks, views representing of and based are press Please quarterly such on be file including the information the risks, SEC, we those refer actual risk Form SEC may results assumptions from filed to uncertainties in and cause documents recent set on the differ factors statements. XX-Q to that and for to with on report Form materially XX-K most forth release our with and and annual report our

Reconciliations the our supplement non-GAAP will I call additional will non-GAAP the investors. release. And A in data turn provide to provided in financial reconciliation are website. Mike. posted on GAAP refer We and over also additional with to press now our of to also measures information to IR measures to that, is

has little actual that I briefly start tragedy, this in today. and financial I Thanks, war exposure impact company. joining believe to very for to Guidewire the on afternoon us our its Alex. Good Ukraine. commenting on understates by thanks everybody but want

in say for they when are development in ties friends East situation with very them, direct. in in citizens To from is Prague travel unconscionable Poland, company a We shelters in in we understatement. and a impossible had that It’s center bomb for I very Ukrainian the to there, our lived family Ukraine strategic have Petersburg, is XXXX an Ukraine number and Krakow, and of have to family a Moscow, Budapest. while sleeping where to have the opportunity to and St. Belgium an effectively Berlin, to people fighting ‘XX. And I operate war. just

While was I fleet I part Northern a the Severomorsk, was Navy, visit where the based. U.S. of to Russian in is

conflict a dramatic Ukraine. me, is startling. their resolution we to relations teams see the our as for families regression this we required want So to we are the for in not glad play can hope to peaceful Russian for quickly. is and sacrifice can and this our and for this friends I concluded we in role And find this world that whatever

will I to that, over with turn it the So business.

the I get want I I reasons touch future. Before into the briefly am details excited to quarter, Guidewire’s three of about why on

resilient, and a have global market. casualty a mission-critical we insurance a large very in market-leading First, providing property service position,

proposition by value the software service broad cloud to fundamentally transforming provider our a transform have and from we Second, company to enhance support a provider.

were And XX% key quarter. long-term ARR sales consistent, steadily, in durable growth and saw to of the be a our potential. quarter. again, reflection a for Third, continue Strong continued and over takeaways above cloud up few drove range, Cloud profitable great support very this Guidewire facts We of our are make These the QX transformation. to sales is ARR There year-over-year. guidance activity sales of with new products of we our the three about overall, optimism and XX% from high-end source momentum of on difficult that a quarter successfully executing cloud effectively the confidence for this and potential growth. Guidewire

Tier X First, commercial XX quarter. insurers, to Tier X success in customers with super with insurer a InsuranceSuite In we New Florida and renters and migrations selected X Tier selected to saw X net momentum in new full expansions and cloud continued This and cloud personal insurers. project included both for wins I York new Tier insurer global with Cloud X based customers Cloud, deals insurance states. with selected XX at line, Tampa, X Tier logos, InsuranceSuite new in based lines continued a InsuranceSuite regional across initial support the cloud their sales. want and X start Cloud an We Tier across X total, closed covering

Migration added migrations a is We renters’ cloud in its insurance personal to Safety and Tier a Cloud and insurer, the was American the North business, will X and Cloud specialty power InsuranceSuite customer provides Tier adopting Additionally, activity throughout over new with also we X both X including closed and to Cloud and insurers. quarter, Cloud major Canada. And insurer Tier four workers’ XXX,XXX customer. a PolicyCenter Ontario, ClaimCenter line migrate for BillingCenter strong. X to new InsuranceSuite lines Insurance Board, A compensation InsuranceNow it Cloud. Tier across Workplace employers very

one cloud addition Church across Mutual also and and new a insurers, two expansions: were In There CNA core of three these X to was expansion increasing cloud four which Insurance; migrations, healthy new with cloud cloud their modules. existing footprint with X Insurance Company. Tier customers Tier activity core lines insurer,

HazardHub. see came just data a had We and the activity of offerings. deals of and analytics deal to for with We great products, XX our standalone data analytics under which continue from also majority

is and complex momentum of with our deals success over outset is but the that sales continued HazardHub incredibly ultimate are opportunity strong progress customer an with opportunity momentum. of excited products Many thrilled further small which are there growth. our signal the we to as discussed in am We support. our seeing Overall, the the about X potential. see ARR grow, products HazardHub’s for have I we $XXX,XXX and the quarter, deals at of the did programs I a before, very are But with for our measure the were

deals on-boarding supporting scaling volume over over the Cloud closed we most to programs for To progress our deals including cloud XXX of model. operationally continue to a some progress our XXX put closed deals and customers, in of transformation insurers since have and cloud This make of we cloud InsuranceSuite of Guidewire Cloud. and from We perspective, comprised moving XX in world. has the the created largest portfolio complex have

new with I fact to am We Cloud, Things overall, see at only that Guidewire our having exciting deployed pleased we it’s XX the go over InsuranceSuite XX are continually is by the often have are more production so premise one releases. have are our initial well based also these cloud This feel energized validating and progress X even live. platform customers customers difficult. of the going to investments and on have done our importantly, complex in of the to in programs and but deployed made environments approach. nearly Cloud programs we Tier updates need that have but that these not I least reiterate

from platform our with Our each our is approach, new and systems learning release. cloud each improving our and program organization

significantly to will continue powerful programs given speed. as to of the over of it’s modernize. insurers prioritize P&C we the and success recognize that and appropriate as value reference this a complexity serve more importance the work, look success industry these will in customers are more always a to all to they But delivering we prioritize else. successful We create cloud above ensure migrating company to to are customer capable and platform investing Successfully that our will

our partner energized strategy large and of Now to moving project, is for necessary grew growing XX,XXX, switching consultants gears important and cloud QX, This given a to engaged of the ecosystem an scale I we in continue ecosystem, our XX% SI and were dimension community. as just partner see At said, the XX% a strong to is complex projects. that, our number The core system year-over-year. cloud a to projects. a partners these SI our end up the of enables of

momentum consultants Guidewire increasing partners XXX. large Specifically, up grew time XX% Guidewire. from solution can to innovation we on cloud Cloud. deployment than reflecting the and partners strength solution saw number in year-over-year ecosystem seeing speed to We X,XXX are our a A insurers’ over of certified to with partner similar strength XXX% and increasing more

joined consultative Finally, mindset excited industry to Jeff. very of approach month will leads and I in engagement at as growth John complete welcomed Officer and objectives deep a our organizations. leading and customers’ approach. and the turn that, Revenue in further units. customer With am John and including customer experience services last our brings over President on our business experience have Chief based sales, team. understanding and to strategic He John North XX delivery to Capgemini, to Guidewire a our success global with and of leadership Mullen motivations it to American will be instrumental years insurance unifying I and our teams

Mike. before with summary will outlook. our to of second I results quarter turning Thanks the start our

on Second quarter XX% currency ARR or million, basis. up a XX% constant $XXX year-over-year ended at

million, be up activity constant was was periods. visible As Services XX%. from due during strength on new all the revenue year-over-year. million, XX% basis ahead a rate Subscription to XX% year XX% across revenue revenue our deals and sold Cloud $XXX.X ARR $XX.X we currency compared revenue to last and up from and update in then performance benefited $XX.X $XX.X down report growth QX subscription sales revenue of reminder, cloud was stronger components million, million, prior at in million, exchange a of was License year-over-year. to currency support $XX.X strong This on when end. was year Total up growth ARR which year. revenue. rates continues expectations

a XX% cost to driven which The the cloud gross profit for in QX. term revenue. XX% shift year-over-year margin decline a away gross from ago. and gross discuss was by million. from place was We revenue controls post we compared put XX% XX% support to Subscription mix Overall we Turning non-GAAP was support revenue will towards second and subscription to the benefited compared on margin higher year infrastructure profitability margin license basis, was a and year $XXX.X quarter, ago.

from equivalents and year benefited and We $XXX,XXX X% was impacted that also from compared from spending. of in one-time this provider negative Around due subscription operating we benefited exceeding Overall, and mentioned; perspective. strengthening credit was billable quarter a against investments. remainder fall ago higher cash to our R&D operating cloud and savings primarily $X.X the credit slower-than-expected related delayed to a third to dollar billion million, just the million the some margin rate in higher-than-expected accounting million Services $X.X of benefit gross an service guidance with our internal due revenue, the hiring; euro. support utilization. X% $X expenses, to cost the quarter project expected due We spend; and range credit originally $X.X income exchange revenue; the to total to I ended cash,

$XX share our quarter, repurchase the We XX,XXX also for completed back buying shares million million. in $XXX program

Turning to third I our full discuss outlook, outlook, discuss and then our will I’ll quarter. expectations for the year the

to year, our ARR negative there in the year ARR $XXX approach, second end reflects million of million removal current The and year-end. would to have For of in for increasing exchange are Russian rates from usual year. end. unchanged, This as all operations of years, outperformance optimism. at exchange ARR be outlook we a customers fiscal the rates halting remain couple our are last currency at our between ARR Russia. quarter last of to the as be million outlook If $XXX our full Per foreign our reflect and of approximately continued ARR $X assumes benefited exchange impact we rates million $X our

for also be now revenue, We outlook $XXX to million. million total $XXX which are between our increasing expect and we

support subscription We overall services to expectations, higher and remain respectively. XX% is and revenue and revenue million, XX% closer growth license approximately prior couple acceleration. representing great Expectations a million and to $XXX of for $XXX It annual growth, revenue expect our to than unchanged. see year-over-year million revenue dollars be subscription this

infrastructure XX%. subscription made around a assumes and progress continue and is This team margins. earnings for has beneficial putting since total year to which lot subscription on controls support margin gross gross cloud gross in call, The We approximately the be of to the margins. last our expect support costs, XX% to

remain ensuring over expect XXX% earlier we some margins. and However, services than effort migration services projects, also we this now of and all a is operational success $XX customers I be rates. to This year. upward the to hiring to the by of $XX to With bit this of margins million income, largely offset to exchange some success fiscal loss million impacting closer years, for for It reflects mentioned. some adjustment more committed originally the year from is we expense cloud gross has an between Guidewire’s benefits expected taking achieve current to respect the the and slower breakeven. operating commitment been The expect hallmark gross a adjustment We related outcomes. benefit successful customer previously expenses, revenue and cloud lower from operating

quarter flow our operations the negatively our flow cash from While was by of from unchanged. impacted operations cash collections, are second annual expectations timing

to $XXX Turning QX to $XX QX fewer $XX approximately million between quarter, approximately $XXX QX, approximately to expected expected impacts which $XXX has we and be and $XX recognize Total and million the support and is and to ratable the than be daily, million. Subscription between $XXX Services – million. expected expected is subscription outlook We revenue expect be revenue to for be million be is revenue ARR revenue revenue sequential than million. X our days to is growth. million.

subscription In gross XX%. be expect million margins million. a was between QX. $XX it support of of summary, expected approximately total and operating is strong $XX gross Non-GAAP loss to We XX% and and margins

We we call see Operator, what strategy accomplished, are you now the the for cloud and proud open questions. of excited out. team has playing are can our to

first you. Matt BTIG. Thank Our proceed comes VanVliet Instructions] question. the [Operator your line with of Please with question from

here, as are migrations. quarter. taking guess, cloud the of you what actually seeing, to job overall question, kind around macro you modernize divergence environment any seeing for here? I Nice stack between then overall I my demand on Thanks of the desire at technology in look guys. guess terms the you’re And

is of migrating? the and slightly entertaining lot differently, in that equate fully idea sort and customers So a of overall cloud trend demand market you’re maybe direction continuing the asked seeing the to of seeing now positive

Thanks for the question.

think the is simple I answer yes.

trend We continue to see positively. market the overall

that, objectives see do modernization or, the range systems depend the core IT all wide recognize on we release business core a IT comes that agility. agility and that fundamentally support insurance migration to getting of on the of it, And latest of the call those You of that those from Guidewire. cloud of all systems companies sort systems

launching objectives, partnerships. digital interfaces channels, those making things operations underway things And improved. is. stemmed significant is the decisions of the how agility, to lines efficiency, whether core to that create new the instantiating accelerated of more flexibility, product modern paths All more the meet sort efforts platform can to be and more then those or digital business or company new modernize ability the through industry analytics and just through also so there new means effectively market by All and overall and from insurance better data operational that pretty in

have Jeff all this steady and overall just for so and and a long of And add market things, improvement in I the together time. the a those demand. points talking been towards them and you it sort about continual

while on approach and and think to move is major well a systems but I to the well that, that cloud, think now bit the traction. that market the cloud understood pause gaining I was accepted vendors

And so overall that’s positive. trends just

guess, year? been of any around terms maybe happening, business? Is tax Great. a And that’s obviously, areas so more of far has in as in of impacting this has of created a then the that I of beyond gained some the basis. just Cyence as helpful. little guess both a, very Alright. terms how think, then progressing additional any this headlines I and demand? having the what’s in conversations environment, No, that And in Ukraine, has proactively you’re sort and cybersecurity Russia bit movement well but I a lot sort troops the been

need out Yes, situation it’s And on suppose, is that, everybody that’s – attacks their speak, numbers And This terms like Ukraine numbers efforts, very to in militarily. it’s I component have just they cyber where a the people commented done And to great caused obviously, Cyence clear as in interesting. a global event so up unfortunate in this. question. hasn’t relates it step has and extremely but that’s any immediately. that if Guidewire, Certainly, dynamic this are playing of our to company of this not guard, pretty it’s a incredibly to unprecedented, activity. cyber of that

right? from significant for mind. and and is and more is like world that dynamic As a tell of for company, that insurance it’s in on we Cyence that that for the data think not how you underwrites driver an as be run demand to insurance Cyence every value But in underwriting are how much the confident a It’s advantage we exists up will that potential of CEO for that But how for risk risk that the in pay CEO of create long the Cyence. am to a a for long for proceed. a is companies is growth growth how attack, there in the on my that underwritten. just of that over our it market to to. different big risk for I’ll terms I little insurance when that taking major and But drive That top that on wrapped And and now thinking yet really demand they different long manifest run, cyber the creates I Cyence. so I it terms think Board’s who And to exist it’s think about of growth dynamic protecting of insurance that and opportunity, and the the carriers this cyber will sure, risk. It’s I this right a in more of top line attention the exactly companies market amount run. mind. something just suppose, It’s a risk, that will take But category clear about and assets a to of market support it’s based digital interesting. it’s that such are I I approaches much expect how

Yes, So thanks. question. interesting

you. Great, thank Alright.

Jackson comes question. the with JPMorgan. line next proceed Our from Please your of question with Ader

taking guys. Good my Great. Thanks questions. for evening,

in office The functions follow-up yes, in What And there? mentioned clarify on have the mean, the first you I are that many and Russia footprint generally? a how is just any moment. plans Ukraine the Can you war. people the then you really or mean, just continuity I Poland. place at –

sure. Sure,

to Ukraine. of has do what’s to just to our employees where necessary this being So run, very, it’s feel our about as a an the period That’s R&D impact organization, been for and Obviously, order XXX with in we’ve Guidewire. their over and putting us. location are run of for that an we evacuated supporting very, of that very can and them, and the for very It’s don’t really and from R&D people. short important correct around for confident and trying that driving I them, their efforts source very short friends that been talent a who on we’ve circumstance support are the we everything time. in bullish and market long got to team. people doing families it’s priorities especially part humanitarian that a But for morally think In what’s on they negative their important

have proud war and of very actually they I would Poland. that quickly to of listening, to obviously stance as we’re it can. the if Krakow to and opportunity in say, them. very size possibly work that actually, basically the this, we’re this are the And taken the effort that’s have as in proud all ends support But the hopeful they We’re

Okay. That’s great.

help question. to Does answer your I that I want make just sure question? answered your

pivot helping margin. was and I just internal some to business. projects, Absolutely. hiring towards mentioned delaying more feels detail. to delayed But the It for does. more think It looking of little a something the Jeff, you I the clearer

don’t a Just labor that are curious of the tight Guidewire’s but obviously, pressing because pause or of – some hiring, with know, choice, market efforts? is that’s on hiring the delayed projects, I you, the

investing no. Yes, of terms of no, fact, in full our in are better attraction support been order talent No, And steam some in hiring functions that. we ahead in to we’ve our efforts.

is that looking for especially we’re been it it for. tight market, think, – I the of has profile a types talent

part, are plans to would But still And I little as change in thought. And We that our overall on hiring the that quickly to started our them expect hiring the a say then impacted as project the so that it has get year. didn’t originally referenced plans. those we bit. projects complete on just we no I the internal projects side, fiscal for most

Okay, alright. thank you. Great,

Heckmann question. Our comes from Peter Davidson. next question your proceed with Please D.A. with

Hi, good taking afternoon. Thanks for question. my

a bit hitting can cloud remind talk we’ve the they deal, four mix some or us last and complex? about of deals, more quarters of whether bit little seen basically the on-premise cloud versus about complexity finding terms a new are migrations, to net the them over bit in Just of you a of that you’re your kind in-to-out little relative those expectations the

super question. Yes,

So and of say, past to replacing. about think new is that what all you’re cloud I complexity, XX-XX, do migrations. to in It – then special versus this has overall, nothing net terms quarters, the And with four is respect Guidewire. over right, would I with

new a on So to complicated. When to how based something, to either replacing. straightforward. things do complex sort that that for Those map those system system you’re system the of existing functionality, are replacing, new one capabilities extent but you’re or customer, new net replacing procedures, line, are one the has new the very things, is the of you’re customer we the

when of a and a a complexity The of new how can there great here with of we new accelerate and of something slightly new what or goes, net And business it’s projects. above those that of a equal I of that is of on a surprising Guidewire a instantiation that system a fast line, lot migration Cloud can types would smooth we complicated technology it complexity us of So or say to net and right? line is replacement net so the support expect. all is

we that’s be like have they done the get be and very said these very to they very, And that kind very so feedback is and remarks, are these prepared carefully, done in completely. of to things, the complicated, I have things

how a are sometimes for system side, and a take majority of companies net and to run on same we same the surprised these longer on quickly we are lines them launch can their demand, strategically, significant execute we by integrate on mechanism to and platform, they lines this seconds product that of system. big insurance of characteristic companies. very lines long on they processing, into characteristic channels, need our think their want. the pleasantly proposition those a kinds of be you well, And the a that to existing slow or the the This little provide bit projects. an do that’s provide they for and And agile a also of I unique the And we support me Guidewire than give of value all going little which core product is new quite is and answer. a think on be we’re platform thought go and business vast the But core new new innovate customers. I portion is But things somewhat – can two if that interesting which we to

for that helps. question. thanks And So the hopefully,

– at for we in you to said at the Are looking Thanks maybe one and of live. type I least X, live? for cloud then And closed, clients InsuranceSuite, for years? correctly, of would you out XXX X.X I think XX terms the expecting – all have one XX heard frame What those Yes. Yes. least module if of insights. time were module deals of have be we should XX just we

X.X-year And line say partners. our majority year there you and X.X No, probably is operations next and It’s in our I stretches the for for at the years, online the in most lot X for us coming a you ramping a X, that as services up Things little about a a count. time majority with a months. the within are that time bring more out X.X year. shouldn’t lot would over X, line. it should think of But bit,

hear. that’s Okay, good to Thanks.

you. Thank Yes.

question Please comes proceed Ken question. your Wong Guggenheim next Our with from with Securities.

Great. and having of planned I headcount I This quarter, didn’t believe guys last kind question, churn for Jeff. see it. of for you think, higher probably mentioned

any as far that Just as churn wondering update there activity?

Yes.

still pleased really overall We’re our rate. with attrition employee

I of it’s the being a – what did year. lot see peer group think That kind attrition some below higher we modeled trending said, we’ve of this here. in of see expected We increase that we Valley in areas We within didn’t and development as elements our the organization. attrition some had of a and we little in some bit in QX. had product seen key

saw previously. We’re talking a what percentage point or than we X higher

buttressing our And keep and seats some hiring can clearly efforts still that those talent to it’s watching. fill but I already we’re make So attraction how trending of mentioned something positively. we aggressively, sure we’re

So more post QX. in how adjusted model we with our line

those modest feel more that about I about higher the uptake just the And Is run as that of confidence it’s just then interpretation sense conversion to it. byproduct of, along, of kind for underneath or are kind and have Would of a numbers goalpost? love terms along likelihood higher X there some, but that pushing higher. of further some you the of of else hey, think Got just you closer we’re kind conversations guys business. actually better an incremental as that see in only of along rate, further a know change the ARR closing? you’re either seeing kind another sort what months, I of is we be Or a the so in quarter the might

Yes.

better and clearly, half job year you this to with So results. in a see respect that we’ve the first much done linearity,

that is a positively So for playing that push this year. was something and out very us

our look where very for the Obviously, all pipeline QX history, high, today, inspect is pipeline deals As activity a half know, year, event. that we as is we there, given back the at confident and significant us. coverage the always very you of is us the are we there for are feel

to out into so little of horizon is the causes and cautious there be bit good us a QX And that is on deals, couple quarters have but these still visibility a we as away.

I the more. how related not there, outlook our obviously, in We raised So churn bit a thinking been little Had some customers. think we would that’s that have layer Russian it. did unexpected to about we’re

That’s prefect. Thanks a lot.

question proceed with with comes next Please Turrin your Wells from Our Michael Fargo. question.

on looks Good afternoon. the questions. would income, and of I operating upside given year QX the through. carry Thanks. midpoint taking Maybe full like you the it there. in QX you just more appreciate outlook beat by Hey fiscal the maybe the numbers, revenue than headline

just so comment context I of know anything well. Russia, was else and made just should the be as tied I more to you the around on commentary we $X pronounced, towards the just the carry of And upside given but But the maybe year, yet. pace didn’t of the Jeff through there QX million guide as fiscal full end mindful QX a year appreciate was

are mean of a on. look, trying Yes. to number think going monitor I I things we

back the as to of the our half better year. so we very big been has half drive inspect is And first linearity. promising ability But the the always margin the decline year, terms of in

we so we very all good that the And there. seeing are activity about feel

was unexpected into fall. where hard we the we often good I us But deal and wouldn’t going very are good And is year, anything of the a read necessarily that, outcome for us that. to the than increasing came full long, first year very we pull QX always of wouldn’t say when $X did absent I just so us these it we this ARR think And we our hit for don’t was us. it to million raise and number. are arrangements. slightly targets. that the forward out get really about for mean for for the gives other of that. question those targets like touch of And feel is, to it’s half confidence that There a complex deals. I about impact

of some beginning QX. we the the over that were able in so deals, with have QX, finish closed And were those activity thought very QX. we to line in we have the pleased would may At get of

those line. the on happy see annual way. always cadence and think the in about and think activity and about team pipeline the an get to So, deals we finish But over that work business

That sense. all makes

came sheet, help that there. you the some valuations, program, the pullback just this preserving you of How broader categories some balance you in an tuck-ins just to are allocation are capital some around where the maybe you from billion given appetite supplement the are $X.X seeing thinking you. with about optionality mentioned, of buyback risk, completion. So, could on the here? emerging Thank context or for Is have you environment

Sure. consistent have Great open Yes, are question. pretty with before for nice acquisitions. we we said to looking what is

very things are mentioned, going far for so HazardHub. well us I As with

and customer We are the that in interest customer product. base quite exists pleased base that even with outside the the for

So, that we confidence with of are be bit things. very to gives at looking little happy and a us

more add we confident as transformation us. lot we things little our could As build – reasonable. that strategically other you more be in we for portfolio is selling in our at in product assured success that and confidence we success say, a Guidewire. more feeling that, whole could that cloud more expect and or confidence future That to at And to success maybe gives more the it, the look it just valuations me deploying our or a

one company at under this the data feel to strategic point, about so So, sort gives optionality it and great HazardHub. ability overall and least of I our far the us my and on of position of watch, also position the execute

things understand thinking how about that all to this. I positive. pretty you hopefully, am enough context And gives So, those

That’s you. helpful. Thank

with Our comes of with Please the proceed Blair. question. your question William Bhavan Suri from next line

taking on Dylan for quarter Hey Congrats Bhavan. guys. the and for again from questions. thanks higher on two level our for me. It’s Maybe a

providers value this wins maybe a initiatives you the about for leverage First, highlighted as think a you point of the that But to and a here their is some number data number in how are focal thinking of operational processing they I as enabled a from carriers by better big announced data, their right, being perspective, automation efficiency and well? straight-through as with and quarter, you contributes how unlocked guys earlier. think of modernization and have about from Studio, of carrier Data partnerships in

is and I it’s on question. focused Other would great say top a of carriers a this other priority. the It’s carriers, of less priority, some they a work that with, we are things.

growing customers is a others call customer potential I of and is the on, way. experience think There focused for big automated our and customer it, that on less this few and sort engagement a there – it’s extremely focused line that that top more think about of are just it. very a see are in very,

somewhat certainly exists different. think their industry. And overall the But I in strategy so the is potential

the the that models on really small is improvements can operations For, the claims the the percentage-based And dramatic but lot overall honing the of in a customers, the efficient. would way – say, apply industry, who from pretty points especially industry by data these and those in are interested in we workflows it and claims you there, are I there they that that on overall. things because get more improvements, works operational the potential size that multiply the side, just the the drive see to in I analysis the think when to

and sort these a based just a this a will of it’s an you I that bit maybe And proven, it’s environments – – this would as into informed mixture. this So, see know programs. of to guess, don’t some pure get pulled from the you as more the see guess, I carriers, the of starts on rest that unfold and will gets projection success success is it’s of if

into second really going lead and That’s to it. well. question actually my helpful Got as

revenue optimization of So, a other from equation, looking perspective. the at side that right,

available or incremental than overall of guys. focal platform of last insurance, of new the kind focused maybe I how Thanks kind point serve enabling and whether kind systems and efficient opportunity carriers digitally how guess point fall today cloud I was kind premium an think of this capitalize providers to experiences, the for of of thinking a a carriers, key you as enabling established more how digital right? enabled. this So, legacy on then the could guys driver that’s embedded the today growth? are as conference at more around becoming maybe about kind consumption, purchases positioning embedded within of lot talking of insurance

Super supports then a of it and those to the those initiatives committing yourself technical those I much the adjust Cloud more then automatically will generated and are to speak, necessary execute question. technical faster to so ability kinds much give side on. faster and easier getting of create APIs side products products, it so actually the quote is to the and and it seamlessly products to price next. that embed quickly. involving flows, you get business APIs those The And side ensure more of of these Guidewire

So, today, the where to Guidewire it I just carrier helps insurance. in same car, car But guess can of vertical it U.S. over auto whether with and the people the decade, the for bunches that’s like whether small profound. kinds way around that of business I company, at next sort insurance, motor whole But is happens in separated insurance the it these is a from with Cloud or like not markets for change different lines to people, sale a market terms opportunity pretty least where does and the procure expect There how is that of idea think commercial of drivers technical the happens side the where things. apply how purchase. of fundamental, of things. projections lot households, of There and

digital distribution is or started – technically they – You can just business role make insurance small process lot or of to a as lot as get other in these companies all agility, flows of and embed they that digitally with think a more there to and these significant efficient they businesses the ability insurance products opportunity, different playing get the distribution with think with effective. more more of loans as I the this things a

exciting And at to IT come to are of it things often the is going these look you don’t I lot people all to so said, to then things I before our you got great, very very, down whether is these how tell right. execute idea But for And expensive IT can customers. work. And idea agility. that is like like assess a

And a that so lot can cost you just with idea make IT project, can you more experiments. an if to attempt do the

degree trying with to to you Cloud, all layers with more what your embedded lot agility. are like You And you that companies different in IT can Guidewire way the just and designed that’s do think greater for new experiments products, digital to about a business the new that a product of our ideas when take these approach things very our designer we have in new make cloud execute on. a are these to advanced and exactly easy

So thanks. question. I really appreciate that

for again Thanks helpful. guys. the Congrats quarter. on the Very Yes. taking questions

Thank you.

question next with Please Our question. comes Stifel. with from Lane Parker your proceed

quarter. Parker. Osnowitz on on Hi Congrats Max guys. for the It’s

standalone deals just to mentioned talk around For in starters, about a nice little HazardHub. kind market solely? few, a customers more additionally deeper a HazardHub for the little bit then going remain if know I kind just the of want you is announcements, is HazardHub dig of on the if conversations lands for I there just you they quarter. there what siloed competitive up-sell then is and are that room and or to those into Can

Sure. Thanks for question. the

a accurate, it we a So, the is with and Guidewire very, company. number could insurance world very price respect then a it, access, to a you to you with the more robust the risks the risk. it distribution the bunch easier job the more be was property a companies at are acquisition you different up-to-date, in relationships team to companies the significant – of higher this more at perspective And the into And sales. from good the benefit is are have a good of as fluid, that And whole quality, underwriting assessing relates can really going data, more had better somewhat the it was product, to better the of and just accelerate going that risk. property data my more plug to really embedded thesis be

so the from of feedback and it The been sales us far confidence. our well. that’s excuse from far, next, really feedback lot me, team the customers And – out customers the gives so from feedback a playing positive. the very And has then

and competitive hard, nitty-gritty did a years, really, As reasonably – with together. this can – order going at taking The them certain with to it this fallen disparate relates that of very really think of really really, putting work a the finding number together they to domain putting risks interesting a them But out and and together that competitive matching as love robust a job way put really HazardHub team and really predict over space. and is is to it’s a data and they like something the good as asset really, such associated in together data that sets just the in really in sets need put data really complete.

on much so that before, it’s other think I that I a solution And of a an talked side the is is wherever they it this it, point all need they it API-based. it’s but bit The does is this is which the everything, of very interesting, complete that’s a it’s little API, embedded. idea very can use to anywhere however this embed about idea isn’t – a want. because and companies be it’s interesting. you all want solution also And can you based that

you there. I those positive seeing the bit don’t think more are continued color we have about think that are – had why all know, the we characteristics expect and success I a why why why I quarter the, the for So, we are and hope little we – give –

the that ecosystem, Yes, partner years, last are and expectations for that’s two the see this last X what to about of continue ecosystem, should last really a bit? really it thinking kind end as especially still the And over we Is Thanks. pace quarters. year down growing grown the will? a over will at helpful. follow-up, just then hamper And or of you then the this that something if kind it’s little

to that And hope are Guidewire to integrate see is what Cloud easier are it we with making to, certainly doing is continue fundamentally, the will okay. I grow. Guidewire Yes. Cloud we reason we

drop x, And So, someday x for XXXth even we Guidewire to if build partner of more together thousands or you to there maybe a an build be together. that a going partnerships and think what’s and make launch and the to it’s x for of effort down if are okay. of tenth level sense can to integration us x,

demand taking, a launch a so know. experiment. Guidewire companies in me right. experiments, an previous that risk. costs the build how both necessary this for will Guidewire’s partner is don’t I an And a a – it gave base, order to companies much connect When for solution, to That’s is it How expense back there an a – worth are in about customer doing doing investment to Guidewire’s to bit integration base penetrate customer risk do because I together, answer this I and to right, two there much of partnership is

lot will available you have Guidewire our has see cloud. cost They people that lightweight down applications we customer for that say, to you to demand Guidewire high, pay marketplace. the do down before that can building a more off the of cost afford bring integration and many to partner justify a to see it’s do and and can easier to confident is.” partnerships, I And more it this a you But base. down, got insurance “Well, on the Cloud much solve. if as to great makes integration the integration. lot really that So, got what going integration equation be down on to is doing And customers you a

– that a this creates ecosystem and is expense and that here. up, will be partners down cloud to customers certainly goes we just down and And other start in a is cloud something see I it offering pattern And able dynamic to we and enterprise base and the of up comes software grow. endpoints it cause the and you that can think and that get to healthy expect ecosystems. connect integration up emulate number as will our up mature we installed of to those more a down, I as

see I to your how and helps answer it, So, question. that’s hopefully

helpful. Awesome. really Thanks. That’s

you. Thank Yes.

like reached Ladies And Mike have the turn call back of remarks. I for and end to would Mr. gentlemen, to we Rosenbaum the the session. question-and-answer closing

I just want call to today. the for participating thank in everybody

and us our and opportunity thrilled are Tier existing validation It’s customers Tier of here. with with insurers. obviously in momentum We cloud across X the increasing great and and X confidence long-term a strategy continued new the gives

throughout catching of you up further the And forward to many quarter. so look we with

very a great So, thanks Have evening. much.

This concludes today’s conference.

participation. lines Thank for You your may at all time. your this disconnect you