Guidewire Software, Inc. · NYSE:GWRE
Guidewire Software — Investor Day (2025)
55 slides from Guidewire Software's investor day presentation, 2025
Slide 1: Guidewire Investor Day
Guidewire Investor Day Alex Hughes Vice President, Investor Relations
Slide 2: Agenda
Agenda TIME TOPIC SPEAKER 3:00 pm Introduction Alex Hughes, Vice President, Investor Relations 3:05 pm Powering Intelligent Insurance Mike Rosenbaum, Chief Executive Officer 3:25 pm Expanding on our Success John Mullen, President 3:45 pm Customer Panel Christina Colby, Chief Customer Officer 4:15 pm
Slide 3: Safe Harbor
Safe Harbor This presentation contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook and our future business momentum related to our clo
Slide 4: Powering Intelligent Insurance
Powering Intelligent Insurance Mike Rosenbaum Chief Executive Officer
Slide 5: Understanding Guidewire requires understanding P&C insurance
Understanding Guidewire requires understanding P&C insurance ~$3.0T DWP ~90 Tier 1 ~$2.0T APAC AMER Insurers DWP > $5B DWP ~250 Tier 2 ~$0.6T Insurers $1B < DWP < $5B DWP ~$0.4T >2,000 Tier 3/4/5 DWP EMEA Insurers DWP < $1B Tier 1 and 2 Insurers represent 85%+ of DWP supporting our prolonged Global
Slide 6: P&C insurance is critical to the economy and society
P&C insurance is critical to the economy and society ~$3.0 Trillion of Annual Written Premium and 3% of Global GDP PERSONAL LINES COMMERCIAL LINES ~54% DWP ~46% DWP Automotive Residential Title Property Fleet Workers’ Comp Travel Pet Earthquake General Professional Ocean Marine Liability Liability R
Slide 7: The P&C industry is durable and highly resilient
The P&C industry is durable and highly resilient ~$3.0T Covid/inflation Financial crisis Dot-com bubble Gulf war/recession Inflationary shock/ Volcker recession Sources: NAIC and SwissRe Sigma No 2/2025. US DWP from NAIC P&C insurance data. Non-US DWP from SwissRe Sigma No 2/2025 report, which estim
Slide 8: Our Mission
Our Mission To power insurance agility with the platform P&C insurers trust to engage, innovate, and grow efficiently
Slide 9: The pursuit of this mission is playing out over three chapters
The pursuit of this mission is playing out over three chapters Power intelligent insurance through Instantiate these context-driven AI Build modern core applications and a portfolio of software for P&C as a cloud service applications that core processing improve insurance outcomes
Slide 10: In the first chapter, we delivered reliable, upgradable core applications
In the first chapter, we delivered reliable, upgradable core applications that could handle P&C complexity
Slide 11: Delivering on this earned the trust of the world's largest insurers
Delivering on this earned the trust of the world’s largest insurers 349 $1.041B $775B Core Customers ARR DWP FY25 FY25 FY25 Delivering on this earned the world’s largest insurers trust Note: Core Customers include customers who are using InsuranceSuite (ClaimCenter, PolicyCenter or BillingCenter) or
Slide 12: The second chapter introduced Guidewire Cloud Platform
The second chapter introduced Guidewire Cloud Platform A highly reliable, modular, and extensible platform capable of running at scale Guidewire Intelligent Cloud Platform Marketplace By Line of Business Guidewire Extensions Partner Extensions Packaged Integrations By Geography Applications PolicyCe
Slide 13: As a cloud service, our value increases with each release
As a cloud service, our value increases with each release, 3x/year Value Data Studio Autopilot Workflow Jutro Digital August 1, 2025 Platform Integration Framework Industry Guidewire Intelligence Cloud Platform London Market Support Advanced Product Designer Data Platform 2020 2025
Slide 14: Our cloud transformation has been a huge success
Our cloud transformation has been a huge success Core Customers ARR ($M) Subscription and Support Gross Margin Source: Guidewire Analysis. Note: Core Customers include customers who are using InsuranceSuite (ClaimCenter, PolicyCenter or BillingCenter) or InsuranceNow.
Slide 15: We have a strong global footprint and growing momentum
We have a strong global footprint and growing momentum Sweden Norway Finland Netherlands UK Denmark Canada Ireland Poland Germany Belgium Luxembourg Czech Republic France Slovakia United States Hungary Spain Romania Japan Switzerland Italy Morocco Bulgaria Bermuda Austria Mexico Lichtenstein Thailan
Slide 16: Our partner ecosystem amplifies our platform potential
Our partner ecosystem amplifies our platform potential Customers SI Partners Marketplace Solutions ~570 >28K Insurers Professionals across 41 leading Systems Integrators 43 Technology Partners Countries Consulting Partners Developer >225 >540 Community $775B Partners Available applications DWP Note:
Slide 17: We are now positioned for the third chapter
We are now positioned for the third chapter Power intelligent insurance through Instantiate these context-driven AI Build modern core applications as and a portfolio of software for P&C a cloud service applications that core processing improve insurance outcomes
Slide 18: The intelligent insurance opportunity
The intelligent insurance opportunity: Drive efficiencies across ~$3T in direct written premium Loss Adjustment Taxes Expense 2¢ Legal Claims Commissions Claims Payout Expense = 57¢ Exp Adj G&A & IT & Brokerage Profit 5¢ 6¢ 4¢ 11¢ 14¢ Loss Ratio Expense Ratio 67% 25% *10 Year (As of 2024) Industry r
Slide 19: Intelligent applications improve outcomes across the complete insurance lifecycle
Intelligent applications improve outcomes across the complete insurance lifecycle Faster speed to market Smarter risk selection Stronger customer satisfaction
Slide 20: AI will reshape insurance and radically change each key function
AI will reshape insurance and radically change each key function Development Underwriting Claims will become velocity will increase will transform more efficient
Slide 21: Our commitment is to an open trusted core
Our commitment is to an open trusted core Open Trusted Our unique role is Core to provide insurance specific content MCP | Knowledge | Tools
Slide 22: Rane
Rane PRONAVIGATOR
Slide 23: Expanding on our Success
Expanding on our Success John Mullen President
Slide 24: Platform referenceability and maturity is driving high win rates
Platform referenceability and maturity is driving high win rates Core System Decisions Core System Decisions by DWP 10 Vendors Undisclosed 10 Vendors Undisclosed Guidewire Guidewire Guidewire (Cloud Upgrades) Source: Guidewire Analysis of core system decisions. “Undisclosed” includes internal build
Slide 25: We are winning at all ends of market and Tier 1 alignment has progressed
We are winning at all ends of market and Tier 1 alignment has progressed over the last 18 months DWP Penetration by Tier Tier 1: >$5B DWP Tier 2: >$1B to <$5B DWP Tier 3/4/5: <$1B DWP 100% = $2.0T 100% = $0.6T 100% = $0.4T Opportunity GWRE Cloud GWRE On-Prem Sources: Guidewire Analysis reflecting co
Slide 26: We remain committed to key global markets
We remain committed to key global markets and we are seeing returns on that investment DWP Penetration by Region Core DWP - Americas Core DWP - EMEA Core DWP - APAC 100% = $1.3T 100% = $0.9T 100% = $0.8T Opportunity GWRE Cloud GWRE On-Prem Sources: Guidewire Analysis reflecting contracted DWP for on
Slide 27: Guidewire as Industry Platform shapes the opportunity ahead
Guidewire as Industry Platform shapes the opportunity ahead Market Position Market Strategy | Customer Sat | Matching Offers to Market Strategic Impact Risk Expertise Data Platform | Intelligence/Decisions | Portfolio Management Market Agility Product Speed to Market | Pricing Agility | Claims Outco
Slide 28: We are introducing valuable new applications
We are introducing valuable new applications Stronger Faster Smarter Informed customer satisfaction speed to market risk selection portfolio management
Slide 29: Pricing agility is a strategic imperative for our customers
Pricing agility is a strategic imperative for our customers Data Predictive Impact Rating Monitor and Preparation Modeling Analysis Execution Reporting Faster Speed to Market | Pricing Agility
Slide 30: Efficient & Intelligent risk selection is fundamental to the industry
Efficient & Intelligent risk selection is fundamental to the industry Submission Triage and Risk Quote Ingestion Clearance Assessment and Bind
Slide 31: Industry Intel is a unique set of predictive models
Industry Intel is a unique set of predictive models that drive better business outcomes Loss Ratio Improvement Industry Intel Auto Bodily Injury and POOLED DATA Collision claims models ~50 bps Anonymized | Aggregated | Secure NEW Workers’ Compensation claims models ~25 bps Insurer Insurer Insurer In
Slide 32: This portfolio expands our TAM profile
This portfolio expands our TAM profile DWP Monetization Analytics and data products including Industry Intel UnderwritingCenter and PricingCenter Current customers: +$4B +$8B Expand DWP, cross-sell products, and upgrade to cloud New customer wins Current $1.3B FRARR DWP Penetration Note: Guidewire A
Slide 33: Growth pillars driven by Intelligent Insurance
Growth pillars driven by Intelligent Insurance Pricing and Industry Expansion with Net-New Intelligence Underwriting Migrations Existing Brands Logos Speed to Market Operational Insights Industry Mod Pace Risk Insights Solution Coherence Risk Selection/Price Referenceability LOB Specification Platfo
Slide 34: Cloud momentum continues
Cloud momentum continues The Hartford, a longstanding strategic customer, has made the commitment to move to Guidewire Cloud in Q1’FY26
Slide 35: Customer Panel
Customer Panel Christina Colby Chief Customer Officer
Slide 36: Speakers
Speakers Daniel Engelberger John Chu Paige Vincent COO, International Founder and CEO COO, Australia FY24 P&C gross written premium: $30B 2024 managed premiums: ~$500M Premium information is not public • Major Japanese insurer providing • Technology-driven managing general • Leading, privately-owned
Slide 37: Break
Gi cuipewire CONNECTIONS Break
Slide 38: Building on our Cloud Model
Building on our Cloud Model Jeff Cooper Chief Financial Officer
Slide 39: Key Financial Highlights
Durable ARR growth supported by cloud migration and modernization cycles Decades long customer relationships with best-in-class retention Key Financial Highlights Organic and inorganic growth opportunities to expand TAM Visible cloud gross margin expansion leveraging platform investments Continued e
Slide 40: Durable ARR growth is driven by cloud momentum
Durable ARR growth is driven by cloud momentum 2-yr CAGR 19% $ in millions 7-yr CAGR 14% Source: Guidewire Analysis. Note: ARR results are as of the FX rate at end of each respective fiscal year. FY26E is the midpoint of the outlook provided on the previous earnings call.
Slide 41: InsuranceSuite Cloud customers are expanding rapidly
InsuranceSuite Cloud customers are expanding rapidly Total Cloud ARR InsuranceSuite Cloud Customer ARR $ in millions $ in millions 6-yr CAGR 6-yr CAGR 40% 50% Source: Guidewire Analysis. Note: Total Cloud ARR includes ARR from all cloud products. When on-premise customers upgrade to InsuranceSuite C
Slide 42: InsuranceSuite Cloud cohorts are driving durable growth
InsuranceSuite Cloud cohorts are driving durable growth InsuranceSuite Cloud cohorts: Committed ramps schedule at the point of sale Source: Guidewire Analysis. Note: This analysis considers the incremental ARR fee schedule outlined in the relevant InsuranceSuite Cloud contracts. If the relevant fee
Slide 43: ARR visibility supported by cloud cohorts and strong retention
ARR visibility supported by cloud cohorts and strong retention Source: Guidewire Analysis. New ARR includes ARR from new sales, expansions and DWP/CPI adjustments. Backlog includes incremental ARR from ramps.
Slide 44: How to think about 2026 ARR seasonality from backlog timing
How to think about 2026 ARR seasonality from backlog timing Expected ARR backlog Expected ARR backlog per in Gross Dollars quarter as % of Total Backlog • Strong growth in ARR backlog expectation as a result of ramps • Year-over-year growth expected in Q1, Q2 and Q4 • Q3 year-over-year decline due t
Slide 45: Growth and efficiency continue to drive subscription and support gross margin
Growth and efficiency continue to drive subscription and support gross margin • Margin expansion is driven by durable subscription revenue growth • Improving cost and operating efficiencies will continue to drive margin expansion Subscription and Support Gross Margin Subscription and Support Gross P
Slide 46: The critical milestones that defined the cloud transition to date
The critical milestones that defined the cloud transition to date Establish a scalable Drive sales and adoption Demonstrate efficiency cloud architecture of our cloud product and margin improvement 6-yr CAGR 52% e l yc C se ea el R id ap R GWCP Source: Guidewire Analysis. Cloud COGS are non-GAAP.
Slide 47: Cloud success is unlocking multiple growth pillars
Cloud success is unlocking multiple growth pillars Migrations Modernizations New Products Marketplace Potential M&A On-premise New core module PricingCenter Grow ecosystem Evaluate inorganic customer expansion and UnderwritingCenter and revenue opportunities to migrate net-new customers share partne
Slide 48: We are balancing accelerating growth and profitability
We are balancing accelerating growth and profitability FY23A FY24A FY25A FY26E FY28E Midpoint Outlook Goals by FY28 ARR Growth 11% 15% 18% 17% 17-18% FY25-FY28 CAGR Cloud ARR % 59% 66% 74% ~80% 90%+ Total Revenue Growth 11% 8% 23% 16% 15-16%* FY25-FY28 CAGR Subs & Support Gross Margin 55% 66% 70% 71
Slide 49: Long-term target model: Our 80/40 plan
Long-term target model: Our 80/40 plan Long-term Targets Subscription and support gross margin - Non-GAAP ~80% Operating Margin - Non-GAAP ~40% SBC as % of revenue Below 10% How Do We Get There? Strong incremental margins Maintain OPEX discipline This is a framework Durable Cloud ARR growth Opex spe
Slide 50: Capital Allocation
Capital Allocation Maintain Strong Strategic Consider Options Balance Sheet Approach to M&A of Capital Return • $1.5B in cash and cash • Cloud platform • Regularly evaluate equivalents maturity enables us share repurchases to more effectively • In FY26, expect $360M integrate acquisitions • Unlikely
Slide 51: Key Financial Highlights
Durable ARR growth supported by cloud migration and modernization cycles Decades long customer relationships with best-in-class retention Key Financial Highlights Organic and inorganic growth opportunities to expand TAM Visible cloud gross margin expansion leveraging platform investments Continued e
Slide 52: Appendix
Appendix
Slide 53: Reconciliation of non-GAAP subscription and support gross margin
Reconciliation of non-GAAP subscription and support gross margin 2019 2020 2021 2022* 2023 2024 2025 2026E Midpoint Outlook GAAP Subscription and Support Gross Margin 51% 42% 38% 41% 51% 63% 68% 70% Non-GAAP adjustments: Stock-based compensation 3% 4% 4% 4% 3% 3% 2% 2% Amortization of intangibles an
Slide 54: Reconciliation of non-GAAP gross margin and operating margin
Reconciliation of non-GAAP gross margin and operating margin 2019 2020 2021 2022* 2023 2024 2025 2026E Midpoint Outlook GAAP Gross Margin 55% 55% 52% 47% 51% 60% 63% 63% Stock-based compensation 4% 4% 5% 4% 4% 3% 3% 3% Amortization of intangibles 3% 3% 2% 1% 0% 0% 0% 0% Non-GAAP Gross Margin 61% 61%
Slide 55: Executive Q&A
CONNECTIONS Executive Q&A