Guidewire Software (GWRE) 5 Dec 242025 Q1 Earnings call transcript

Greetings, and welcome to the Guidewire First Quarter of Fiscal 2025 Financial Results Conference Call. [Operator Instructions] I would now like to turn the call over to Alex Hughes, Vice President of Investor Relations. Thank you, Alex.

You may begin.

Thank you, Grace. everyone. Hello, us is and Executive Chief results SEC, our release both Investor are on of John who be today as found of Chief Jeff Revenue issued Rosenbaum, on Form will X-K Officer; today Relations in Financial our Mullen, with the Mike me complete Officer; Chief Cooper, Officer, the our as With which call. A Q&A disclosure in related be for President website. section furnished can today our press well to of the available and call replay include following matters. Today's our is financial operations, be being regarding national ones of a recorded, results, today on will and conclusion. Statements impact and customer events demand, and the business its other our products, available forward-looking local, geopolitical Form uncertainties recent may actual to and the set those report results statements. for with such uncertainties differ views be on on filed subject be subsequent should of quarterly and with and are XX-K, Form are of expectations we documents our based that not date. Please most our the forthcoming current filed our prior and risk to information statements more materially from SEC and reports press on to SEC, assumptions file representing annual on as as risks, including as assumptions and release management's These and the factors today XX-Q and refer any relied to upon cause forth risks, in

stated posted reconciliation press and provide non-GAAP information on profitability supplement on is data margins, release. We measures basis, our a are IR a also certain commentary on our otherwise. are all additional in of will to and website. investors, measures A refer also Reconciliations GAAP financial unless additional in to to provided non-GAAP expenses to non-GAAP

of rather call with Q&A Relations will Q&A. decided with of current help today's the This And first a Grace me call our managing conduct any earnings be the heard if Investor during handoffs decade internally patient on portion short Finally, we in just us manage the encounter our from. enter it's the and please than to Zoom telebridge. Since we moderating, quarter, this Q&A. means you go, pauses

to will I hand that, it off with Mike. So

XXth company Leñas, to and us together. And is come excited and feedback out the our thanks, and to believe themes efforts a Connections team's continued to was has opportunity Thank our strong the the four been gratifying think it Good for of start joining our In and consistent It our are us us. thousands today. QX to connect our heels of and appropriate an record for the present see event, I our we key about and that results our to partners you, world, everyone, call break coming the in year afternoon, I'm for in had customers momentum on Alex. company very Las QX, opportunity the positive. vision of was I to product and business. I a now. And right also with released conference cloud Connections. took universally at November, driving release. from industry the the

strong we market. particularly at the the see solutions, from end First, cloud-based our of demand to continue high

referenceability ease customer driven cloud being the Second, this which base. around maturity updates, particularly cloud demand of throughout is by our increasing of driving our platform, the is

to and innovation. Fourth, and is rally platform, cloud impact. and flexibility and both industry's cloud that and and our deliver platform and delivering marketplace accelerating in the terms our pace around consulting solutions resonating reach solutions analytics our agility AI-powered improved with demand extending of which ecosystem, partner and speed the partners for Third, growing our is continues

we create to running before demand QX. drive to to Finally, these strong touch call Jeff model as Guidewire it of out, the handing remained Platform. to Cloud leverage our briefly important greater in to X Connections, continue efficiency deals discuss we financials. Cloud over but on operating Unrelated I'll in each with

high was and that Guidewire world's these ClaimCenter for total insurance its of Zurich is, serve middle wins entities and Tier a ability InsuranceSuite commercial Cloud. In across to with Tier strong in for Tier market to an Our of InsuranceSuite one based Australia. speak signed the adopt to at agreement close Zurich conjunction InsuranceSuite each Zurich InsuranceSuite commercial at elected Guidewire to European for with another Arch two the of multi-country another and in a of insurer of process at X global five a with results scale entities, at system to X commercial quarter, This largest InsuranceSuite full Also business. And three agreement selected deals agreement, selected Australia suite the one the the replace were Insurance of framework X legacy a -- Zurich end lines, entity world. We'll This Europe. entertainment and on commercial insurers. adopt top deals for large streamlines insurance the arm Cloud Cloud X lines country-specific a two corporate the business global insurance the companies Cloud. on largest rollout In adopted insurers and mobility the local our included Guidewire and within market this for Group, insurer. the a decision X were global particularly at insurers. focused we

are before, take we relationships these expected As last discussed and years to decades. develop to have

serve new We the in opportunity incredible market are the about of excited all this momentum customers. to segment the and some

international with pleased in Bell strategic its the customers, our Zealand with European Group, full entities. In to region added cloud the a a outlined to I off. we've Australia momentum European to the we've investments for long-time region, quarter we is continue ones self-managed expanding to the was suite And just Tier trust to pay three focus X to migrate aligns deals great, was customer I it New and previously. this to earn Tier particularly but region, pleased also very is who exciting [indiscernible] In chose continued Cloud of including mentioned. momentum Asia X the and while Our made Platform mentioned. the two in I'm Pacific another strong see Guidewire the insurers

for which in another also insurance with win supports good smaller expansion We one quarter. InsuranceNow, quarter an the customers had net new and

saying main the to platform see and base more employees has cloud-based it Guidewire platform. and strong and by customers connections. time claim report you a a on insurance with are drive about a the with to move you'll cloud automation. of they to continued the overall that by vastly COO get and shared demand Our from now CTO and customer efficiency more brands XX and on unlocked insurer waiting the was Guidewire faster and put, from to has XX Cloud. their And just taking customers on sooner Cloud thousands is easier minutes takeaways others migrating one solutions. greater made spoke gone largest claims successful getting single consolidating primarily the of And to for started and maturity increasing who Platform of innovation. The Their driven of with referenceability the and of Cloud Guidewire Simply Travelers our importantly, growth seconds. specifically the success Australia's operator more develop team about of XX innovation experience IAG, our now to earlier, for Guidewire for serious PolicyCenter her modernization. The innovate intelligent have implored plans been and right of This to

market. contingent opportunity from market. The AI a have customers leadership to the from of the advantages with P&C specific Connections, from our to and our to was It and a Japanese received see positive. conducted our engagement of underscoring and and infuse modern need rapid Japan innovate, the for to generative improve incredibly customers, commitment Platform connect further this vision a plans opportunity At our the creates for accelerate claims also this we platform our generative The cloud solutions also session Cloud insurers Japanese to feedback in developer about and baseline processes. platform. exciting excited We was event the shared insurance the maturity at to are productivity we're we level technology AI underwriting need and around strategy

maturity grow. And core increasingly Platform, generative releases potential AI-driven which appreciate maturity Magic of flexible great of need them clear core the engagement with run evolving positive America, allow to pace very agile the Cloud to are together APIs this nature requires competitive. The think being Quadrant This Gartner's to customers and of modern an with momentum was as unprecedented our think core easily I at take North Software-as-a-Service that of InsuranceSuite stay capabilities to modern Guidewire the platform and this I which to many able the advantage around P&C As especially platform. continue shifted has is fact, innovate and platforms and platform our taking leader. to led for and the cloud migration conversations. It's more of see recent underscoring customer a showed

our Deloitte, key the is see. including momentum strength EY, and and table both impressive unique was and element to success, was to the It Accenture, bring a our SI competitors partners. of PwC, [indiscernible] that a with XX partner continue partners, community of Capgemini, The Sollers SI great technology clear to space. Our to we we partners in see relative presence very

step to successful and launch ultimately that that on It isn't can being us. marketplace It strategy ecosystem customers. software really implemented with an creating best-in-class focus use partners to new is and partner one-of-a-kind as a achieved products be great intention creates requires event far also the successfully by creating a was just This technology build company opportunity by to integrations and more great see products. partners. Our up

of launched loss a increase to of first that For a speed the automation conversational example, AI claim. ease Hi dramatically and and notice starting leverages Marley experience

data framework the prebuilt approach that automatically that announced to to and from and life and is a insurance customer documents, accuracy. Partnerships said claims categorize And details companies populates now leveraging my records. incident InsuranceSuite to before, and critical data integration aggressively customer outcomes can increase information as processing Box Insurers to accelerate Cloud In Platforms success. addition, these extracts offer working. I enhance better cycle policy extracting corresponding like numbers, across automatically claims and with files leading confidence partner like Box it's our analyze such Guidewire integration

on to efficiency begin and a business execution Guidewire in and very deployments build we adoption detail. This subscription industry. about to with a future we base first margins play more what's great platform of conclude, next. To the value which to greater blue-chip Jeff our continue P&C talk innovation leverage continued in operating confidence reaching will to see we expanding say continually work based and Finally, out to attractive model. our the It continue to Cloud increasing is grow retention on support Platform, in customer gross demonstrate gives as and with to the XX% in deliver quarter, designed customers us the best-in-class freedom customer business that's and I'd a in operating

more where turn it we And We insurers. for durable point to over delivers are Jeff and change to at that believe, this discuss a attractive to platform pace growth makes financials. margin. And the important build a with combination business than ever a an us of I'll like of this positions that,

want the Mike. Thanks, four details in fiscal I I of great the key to jump to before into financial off highlights start touch We're on a quarter. XXXX.

at end of our outlook at $XXX First, million. the ARR high ended

support to revenue growth and QX. XX% accelerated subscription Second, in

total in XX% exciting billion. revenue coming Third, time we is clearly surpassed and an hit financial subscription the it margin connections, the on to highlights energy fourth, with a these basis be quarter; $X out trailing experienced just gross of Combining and Guidewire. XX-month at support

details. the revenue our the above million, $XXX year-over-year. Total into and dive me let of outlook high was XX% end Now up

higher million, was Our QX at utilization total Subscription and finished services million X the This finished revenue highest beat which rates. growth translated XX% continued Services and revenue. subscription InsuranceSuite is healthy is cloud higher-than-expected bookings support $XXX year-over-year support and momentum. growth, years. our in reflecting due revenue a services as reflection rate revenue $XX into revenue to at of

the unless otherwise. profit XX% in stated quarter, growth. year-over-year a will Overall to and $XXX 'XX. compared basis ago, margin was with first on XX% year gross of non-GAAP a Turning fiscal XX% which was for QX profitability discuss we million, Gross XX% representing

to million expense from with progress This and XX% revenue margin This our $XX $XX an came higher a compensation About than up is led coming line has $XX remainder this on discipline. Overall rates and a gross grants. We $XX.X adjustment equivalents expectations to XX% share profitability beat ago. year our performance-based fantastic. Subscription over positive profitability strong compared continued operating year due billion at costs. This million in margins expectations the gross of ended was year stock due on All accrual with an stock-based QX compared gross when margin subcontractor RSU progress prior X% ago. and profit XX% to of from and momentum compared investments. from on to utilization grants, efficiency. Services of in $X.X date prior midpoint. cash, benefited the price of support the strong gross to profit for of our million, million. employee to appreciation with a last Our this for lower outlook from quarter result cash was recent grant was XX% operating was ahead the higher-than-expected platform and been year and

portion million this notes that net our March be maturity. On minimizing remaining net we at $XX due of to completed liquidity pursue a share are $XXX while Operating in necessary growth flow in revolving The quarter, XXXX. dilution. about million of a negative quarter maturing incremental we shareholder we to XXXX the This cash settled facility us convertible ensure ended During offering, the XX% credit the retired Using to convertible of debt gives Dec of to have established offering. expected proceeds flexibility facility. are existing we converts a inorganic million. at X, $XXX

in flow related reminder, commission fiscal and the a QX in year. than annual QX out bonuses is QX. As as other always quarters paid are the a sales result, lower employee cash And expenses to

Now go line. for year top through with outlook updated me XXXX. the fiscal let our Starting

confident We pleased with hit and feel are first to annual our performance and pipeline very our ability quarter in targets. our our

X $X.XXX the annual million just ARR are quarter maintaining are to we billion. our into for of we year, Given outlook $XXX

$X.XXX total billion. now expect billion revenue, $X.XXX and we For between

revenue. and and We support expect approximately revenue million million subscription subscription $XXX in $XXX in

be Given improving in we $XXX approximately revenue higher-than-expected and to services million. QX now expect utilization, services revenue

approximately which we on a to basis, margin quarter. non-GAAP be support and Turning for year, and we the the XX% our we last gross profitability, margins increasing are will from XX% to discuss subscription up discussed expectations

full of services the margins approximately XX% expect gross to for XX% year. gross be overall We approximately margins and

are As a result outlook we also raising of operating lifting our our revenue outlook, income. for

We million, the million breakeven operating of and income year. $XXX expect million non-GAAP for between $XXX of GAAP $XX and and between fiscal operating income

still million, flow million. year X% to cash the stock-based be from representing million operations and be expect We compensation $XXX approximately to for $XXX We between growth year-over-year. expect $XXX

outlook Turning to our for QX.

million. We expect ARR to finish between $XXX million and $XXX

Our $XXX outlook $XXX and in QX total revenue between for million million. is

We expect support of million. $XXX approximately revenue revenue million and services $XX subscription approximately and of

subscription and around expect margins XX%. around gross approximately XX%, to services of margins and X% margins support total be We

open is and start million for very now $XX was non-GAAP outlook is can year, summary, for for the call Our and $XX between great a operating million. In QX to the we income are questions. Alex, what you excited ahead.

Great. Thanks, Jeff.

at line question William Blair. the Becker of first comes Dylan Our from

on the you wondering touched you and to customers Connections, were Mike, into at very was question. enthusiasm dive this that we partners from could I'm and it clear importance. talked you the the to. appreciate I start. if Obviously,

the of half You roughly called cloud kind out along base now migration journey. this of

the I of those majority as frequent versions of on think more kind of well. are the vast software

ecosystem this So goal confidence and kind more contributes aspirational of getting cloud over of this XXX% your the how converted of it unlocks in of time. how enthusiasm ecosystem that to

the question. Yes. Thanks, Dylan. appreciate I

use case serious. think customers the has an the one customers that over and the case. years past we serve we for I not the been just, serve -- case So in that's is is is industry use incredibly of few use That it's hard the been things the experimental

take and they very track the seriously, success. to they record to of so customers to record. Many decision want of move these a track a cloud want see see And to

the gone They the of executed And haven't we've can proud happy gone programs. And well so it's all they cloud I decision. that we've well. made all say but perfectly, of is they've that's we're everybody kind that how just one very decision that executed that it's our how of with made genuinely and things consistently

just when the perceived right thinking risk reduces confidence with is the that just the them for year And the us platform that helps that right that when about is still adds on-prem it and move. the And to a so the are and are still customers and have really ours. conversations like they're taking to to it quarter going

versions way question, is programs getting and event the Now our are we more than actually that the in which to on only updates we existed of the other doing can release versions on-prem the write the side current the customer running validate your the we frequently, cloud customers. but able technically that in the a Connections product, of at software and different distribution so on of the basically customers touched live is slightly do to and all only not cheaper new lot successfully production, are for of We're releases we're our implementations, they base. keep of which validate the we not faster these

that it that to that the cloud, they decision. improves the so get proposition the the think adds see value it when customers increases benefit to likelihood that about on-prem that to going make just they're that they'll And and expect the

of you the go as all And that got to got patient we've just pretty has priorities want amazing achieved a XX-year of have. legitimately to our But and path can going we customers about we based on that believe it thing they to add And there's a its up, customer to of XXX% to can we're it's I happening. are set I so over we're the as our never that, nature you the that genuinely that say be with get to having. kind work It's Guidewire and we've fast and scope history. committed to changing of that and do when say of the see conversations I that's think cloud. going the what to base

kind a And do it. going make our commitment we to customer to but base. and long the I industry of so sort of to take And to exciting. And it time, it's going we're it's speaks think the

Thanks helps. that question. hopefully, anyway, So the for

see no, off it Maybe the great appreciate event. segue to no, to a that. Jeff, at enthusiasm was you and it No, does it, the as of

in acceleration tracking obviously, there? a Tier You confidence subscription obviously, well these called of there, gross this implications margin financial XX% X your targets and gives longer-term normalization revenues of as and and of and support of larger this the ahead, out some of of deals, function the how kind some kind long-term

comes of question Ken from Next Oppenheimer. Wong

of out a much how is out? is near help this you in help -- agreement versus global remarks, notice couldn't framework being your Mike, how gets more a kind Zurich much the this the of called long guess there. tossed that prepared framework. might global but rolled deal we that in medium, as something I term maybe significance And something materialize this out I understand term us and see might flowing financially framework of

Yes. the But this Zurich offering Thanks is few working. in call customer we've concept looks many could that the started of across the what of every single the to part Ken. create began We had pick -- many entity. to and momentum kind with have to with years. a And one entities structuring for globally deals this up entities. worldwide conversations conversations, We that success cloud us as is as to that countries as them of of, is cloud the conversations individual facilitate have supports the global Zurich that negotiations, -- with the the kind and and our Group partnerships with oversight the in the past over each success we've got question, critical various Obviously, entity Zurich really about Group, the it, instances. to for started we have of do we

the of is to so to us to decision grease the And for speak, mechanism a proceed. somewhat, so with those this fluid to each move more cloud. about as create And a we skids, entities conversation

of that get that those basically, can those certainly represents because were with in negotiated don't easier earn earned Zurich, really I the the was it a So short-term this we I it's lot it and it's just to deals to I structure for both deals entities, And business strength don't that out things But still slow partnership certainly of our what it prepared straightforward momentum, incredible to because centrally And it think great worldwide, it sales to not completed. remarks, momentum like each of us entities. And Zurich it we up. been was for sales to only think their of us, to point. doing to that the trust we more two it to one I structure. create we we're our and the but down and want those we've to of get a lined share became we agreement have I could committed those to we kind know, going proud should project, just in it's can speed nice that that agreement just milestone across make had that incredible have an create called with once all up two cycles deals with place, but global have discussing. a

And to maybe Jeff, quarter. margins. Great. subscription up Super dig to support or step pick into wanted the gross XX% this on the helpful. -- meaningful I really

from know the be any expenses, tailwinds next onetime aware of step quarter. you would help we Yes, line some to should top guided be out it a called uplift there great. a little and but I that back You of?

a Sure. do. things Yes. I mean of to there's couple

usage platform as customers throughout more more and we move the increased see significant of as we some year customer First, we are modeling the go-live.

impact. have does an that so And

tooling. is bit we that a engineers is migration had little more The building some cloud second were nuanced thing that

engineers at towards as COGS, And some to associated with move expenses And people occurred common engineers of end pretty that the their DevOps with regular of from associated to the impact how those allocating and time the function the cloud how us look It's cloud a transition a appropriate their expense time. supporting those R&D result, with QX. take to we're customers. spend for focus of their

And so an had that that did impact. happen,

about gross impact throughout margin year, impact adds didn't up If but of you impact whole percentage a the of look QX that kind it at X the will to that the impact year. to rest

so not And reason That's at but why you sustain take of still the together. expectations we're a bit that expecting for our year. to the tracking ahead XX%, little

Great.

Our comes from next question Parker Lane at Stifel.

Can you guys hear me okay?

Yes.

at implied Perfect. into dynamic and in XQ the the wondering full was Jeff, could looking you performance I bit this the services. of guidance little year that a for if more dive year. growth

services you of sort are how ideal partners internal teams. versus work comment being on of And split your to the by done close

Yes.

over I it's the talked take time we've have is outlook as capacity bit a a we'd would $XXX we for operating But this we guidance the a we've establish is for a high-performing a of higher really level. think that strategic this, we general, are us year, build this thought indicated utilization services little at expected. than back at kind the have given with that million. about to now little quarter we that what end of do in And it when to for team. This we've to us, critical to asset and

it we the lead as QX that kind not we these first And at I of through as engaged the year, I in. right work to margins the the is Mullen for in quarter some programs. continue a that offer the think, off throughout be a to work partners partners utilization as look most The he to expect strong can at balance here really as engaging rest a our of comments. healthy bit. and are the now of move teams look expecting tick up we and we're but XX% between utilization year, John in rates and are finding We're well, little us. And was

that gives better ahead utilization we that I what's of The point just really start in about unique to had our us We're reaching balance where subcontracting really I'll we deals that us from seeing look hot chance sized QX do QX the add to some year. that, and agree. nice a QX at was a created part what standpoint.

And finding So schedule done. about, the work But good to little ahead sure that partnership on got that across systems feel the we integrators tight a really team with make of also to we're of deals. balance mix and the really that that, is we're all the ensure utilization. success bit talking Jeff we've about has these right

from Our next question comes of Raymond Sklar James. Alex

just on the I migration pacing. want to on cloud Dylan's Mike, question earlier up follow

far as highlights of referenceability, You Is terms staying kind for called of any around X-year connections, as overall going of coming future. pacing the anything into there change an a out next with X- cloud some migrations. of to want of kind out though, do driver the window over the the just in customers current. the more AI AI of that driver, visibility your is customers to

would nothing's changed years. to look you if X out say, I X

where of a had time things more conversations we've couple associated a planning. Connections think bit I of there's with have and improved, you of coming little could say a line out

like remainder kind the of certainly said, for fiscal so the helps solidify of And I it opportunities our through year. expectations

with customers this they I support think and should exactly to and have for the out should start that about plan. to other characteristic how And is years. that to customers about to what expect ability clear conversations X to we starting they long-term expectations beyond of should real have on-prem X our be and what like the looks what begun be more

to run so these would workloads product, And successfully. I say our like support ability the excitement the and the about referenceability,

quarter we expect for opportunity success out hone each the is what relates definitely All out that just we and of years, stretches also our and next like -- what helps, will our on-prem have make And customer plan these the sales of customers that of for X our leaders. what conversation to that to but those all of couple with kind with it look a final the organization years. We continue outcome we that implementations.

say helped would changed it a hasn't Connections I it little, So dramatically. but

quick point that. add I'll one on

I trust and think off keynote message vision. Mike balanced

had the our start And together proof does for it industry have how large opportunity. to and the prospects vision much gaining of so materially work been at that trust And shift towards we've in to about brands conversations work and unlock us customers and points. together,

map that, really from decision-making table in now, insurance, pressure the across And well for for need that with exists and and competitive is that times the real. agility, precise to the right prospects and the them out tremendous up that our platform sit to proving exists a very together these with need to to property now adding in how more casualty insurance, than pressure opportunity right about Just having how customers general work context the the problem. asset. we work the gives me solve in continue more invest of out optimism value a together strategic and of It that can them just help amount we R&D continue

Okay. for Great Jeff, color. you. follow-up just one maybe

Any with what hitting the in Just of that the on QX different kind X look Or increase? activity in in ARR like color them kind to what of terms kind the any you've this really of of Tier number? of Tier versus those Xs historically ramp booked schedules past? relative aren't quarter, strong this any ARR

Yes.

but was particular the quarter, where one this deal closed deal doesn't start quarter. next there So the ARR in until

tackling. one progress QX. the blocking was that that, But was and it the quarter. other than pretty with so typical And Pleased in nuance in

we size year, the throughout backlog well. our year, the ramps at pretty little expect in and what a and of for we and QX that's churn the our that's year the quarter. we of hinting as usually considered and the what outperformance In did kind forecast. for the year rest kind this then have of of then that ARR higher bit the is expect you're QX, guidance in the If into slow than And

Got it. I Xs, it laid sounded the appreciate were of X way they really just that Tier color. the large. suggestive wasn't of out, And upside

years, ARR perfect. curious going hit that's the different there's just few how those So I'm were over anything to on if but next

Great.

Our Fargo. Unger Michael Turrin's at next from David Wells question comes from team

time engagement some just got X X Can to we year and Connections be to versus their talk Tier see Tier you spend connections and of with prior great X Tier out continued call So levels success of through Connections. at good out this vendors wins and years? the to

Yes.

InsuranceNow years effectively effectively? you a helping possible. But energy and the actuaries making there's delivering underwriters bubble great. like from systems lot priority you just around there's improve. functionality successful us the something, I it's such its customers list and get of can the that X not people where road the okay, with would feedback programs map Let listen you more say, to And called with and kind on have there's and at we claims do about that the a is carriers, validating. sure feedback we can and for I'm X say delivering the your the as about give to that PolicyCenter lot over road spent we're we to I what way I in can at the that he And say what we we behind up definitely those as adjust are all helping so great update feedback our a the doing experience had got are And let how relates Connections such to before and indemnity as is customers work carriers the would it's of on strategic want we've Connections, as been with our manage systems perspective, just or can we ClaimCenter manage insurance the haven't idea did. connect one-to-one get kind can and on running doing not more map space. Connections all but the events we tons to be. implementations Tier Tier we claims system our out and how success Tier adjusters? Xs I And now And find at starting to of and I time percentage are customers where start we've about these they that fast opportunity that's the just and we're as mean, road we what underwriting, got say of John working, I much X your sizes, headed and that, -- direction are just think generally projects very, cloud, it's we're would approach these your positive closely and and the aligned on me BillingCenter your pretty very working. premium in And and as industry us are It's hard going focused we've a that back out rating perfect. overall we and past of what and and doing. to exciting. And more map, for the how the obviously a the into high and to because and

was takeaway, that a a but And of spent with comment these give too. I'll because he my John time let so there, customers big lot

application we in with to so absolutely I our principle with Tier Xs stand of at and critical road they Yes. great teaming coexistence. platform and R&D that I'll the such business the Tier a drive the operating love the much their element those map. And the great we because simply so to is start shoulder conversations opportunity learned Tier Xs exercise way the with Xs. feedback, value our the to critical prioritize of the aggressively. kind operations shoulder them, to It's

ability XX-year smaller of that was more history, next value, a achieve The And certainly and us, the part to agility ability that's Tier is see scale to unlocking for for so we're is unlocking away that of and can and working aggressively. aggressively. second. The And more selection, Brings to insurance is leverage their come talking quite for them that shape I would drive stand-alone. level Mike Tier is mentioned, they do features to Guidewire's talk So I'll level that things really those from a functions, a true take it's brings compete be that these we that becoming at to fun. such business very pricing, customers X difficult the I Tier are the about to operate of maybe much together. The really really partnership. back anything not important X than that risk their in moving a Xs, we're as them. which big about rating, available large, without the with else customers, Connections how with the it do thing that, chapters

it great So conversation things a together those two basis -- creates planning. and for is

customer off at let was it coming thought could share GenAI could you relates shown for Any that future. of the into right being engagement my you as initial question, next demos obviously So great stats Connections. to be which

Just how compares of the that engagement wondering Connections, terms of across out at In GenAI. customer tiers? really

I percentage new conversation write really XXX% maybe case into net big the think say, the migration. the specifically, are becoming a important core either next the what we Gen move processing business environment for I have of to conversations their that inside decision-making those value. XXX%, that of and and of critical plans customer overstatement. would at AI important those that environment of that looking core What or part work enterprise. step speaking, on don't is is implications more, that basis, statistically some for to take on are next to More modernizing addressing case unlock the and it's make processing -- our an business together that more Well,

customer and organization last months. to don't our that bit and of call of the product analytics organization and very customers, in for co is those a market conversation the codesign prevalent conversations in conceptualizing and intensity X but quite I we're solutions having organization them are in For frequency number the kind success want the both has our increased of our

give insurance Yes. be And tool applied can X,XXX I AI you in the quick just perspective industry. generative a a can that is ways to

before. some with customer talk another, production partners, AI from learning doing and out is industry, it's be get people learn from done tiers. times across is doing cases. we're to there to every the life cases across fun kind Like set up fluid way there to much to more a where ubiquitous will like insurance some this learning and over do X,XXX to interesting. But we what And it's what be about might cycle. But we're a like deliver we very to start especially all platform capability countries, like learn of will trying literally, sit applied step. deployed very isn't down And to in across all us technology something Guidewire. trying think different cloud have doing of enable apply in to that the like experimentation, it's It's learn what a aligning they're use this they're use able with and this things, given level doing different generative it were doing, everybody we certain so to like that's from in trying it what And that one than to innovation

Great.

of from Our Aaron Kimson JMP next question comes Securities.

look Great. [indiscernible]. what and you model think use G&A, keynote. cases like? Connections of the may can the help that the part But us GI I piece know it's vision of for on was about early pricing

we we I different think look at lot packaging it's it. options that ways look a premature for about because have us just to It's of could talk we'll it. at

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the segment P&C Workers' you And seeing are what's existing you comp? of recently your And platform. for opportunity then comp within have the customers activity your Workers' what mentioned that customer with type you incremental Understood. like market? base of Mike, on XXX running

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Great.

of Alexei comes Gogolev question from next Our JPMorgan.

of expect Could fully that you of to you're now would an both, those back you update entering to in ramped large ARR half sort ARR headline When begin the levels ramped ARR on growth converge? and contracts. provide

thing with annual is comment on The activity. an we Alex, ramped basis. very I would on Yes, one QX to was strong comment a us only respect it bookings for fully overall ARR

that that to measure ourselves But start. really basis. we annual particular off good metric an so with And a got on us

on year-end. comment at we'll So that

in you optimization cost that additional elaborate Another of you a that this can ARR around. $X question. you with on bit some Does Could well mean were where limited beyond go more billion hiring? moving resources

-- engineers run we those operations so that a time are we time. spending these focused DevOps. we And where that And regular more that from formulates more customers. mean, I some a supporting their R&D. on were of in think about capabilities the cloud we And are specific of engineers, folks particular, really how have then roles at some appropriately debt building they into looked site we and and of team were to team assessments time, Yes. do

into of but accounting to cost we sold And movement we see -- is for the terms pretty resources where does, with our typical needed. we us appropriately how those are I do they are basis in don't have that to on of and so shift team we manage flexibility them move some we this goods do line we like resourced. run sure statement. And the make based it, assessments way a the too can much, on think income It on that all to regular team

And the think quarter. guide you to I has all in as in QX. capacity. a I But because bit little is just And to a team a below that landed so just the that's good in flagged job understand why help bit what margin the we happened done that little wanted where

Mike for hand I'll it question. closing Okay. comments. Great. the last That's over to

Well, was for happier the the few It months course and we over seeing call the start great couldn't It thanks, maybe to at year. rest incredible everybody an look to participating a the We're QX. of the year, with fiscal everybody, excited of be in forward Connections. of and prospects the about was the QX. today. the next We for end the

everybody, So much. very thanks,