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Guidewire Software (NYSE: GWRE) | Company Profile, History, Competitors

 

Guidewire Software (NASDAQ: GWRE) provides system management software for the property and casualty insurance industry. As of 2017, Guidewire has 328 customers in 37 countries around the world. It was founded in 2001 and headquartered in Foster City, CA.

Guidewire provides cloud software for the property and casualty (P&C) insurance industry. Guidewire's flagship software is InsuranceSuite, which consists of software that helps insurance companies with managing policy underwriting, automate billing/receivables and claims processing.

Business Overview

Guidewire's flagship platform is InsuranceSuite, which has three main products:

PolicyCenter
Underwriting and policy administration application that helps insurance companies manage the entire policy lifecycle from underwriting, quoting, binding, endorsement and renewals.

The software helps insurance companies reduce underwriting costs and provide visibility to their policy portfolio. It helps them manage their clients and improve communication with their agents.

BillingsCenter
Comprehensive billing and receivables management software that automate billings and receivable cycles, including customer billing, agent commission and customer service.

The software helps insurance companies provide wider billing options.payment plans, combine invoices and collect delinquent payments.

ClaimsCenter:
Claims management software that automate end-to-end claims lifecycle, including loss reporting, adjucations and tracking claims.

The software helps insurance companies with complicated tasks like resolving claims leakage.

Pricing

Guidewire sells its InsuranceSuite product as an on-premise and SaaS version of its software.

For the on-premise version, the customer pays a license fee each year and are not granted perpetual use rights. Contracts are typically 3-7 years in length. The license fee is based on the size of the direct written premiums that Guidewire is supporting.

For the SaaS version, the annual fee is higher than the term license given the lack of a need for hardware or software infrastructure.

Customers

As of 2017, Guidewire has 328 customers. Guidewire's cusomers include GEICO (Berkshire Hathaway), Nationwide Mutual, CNA Financial, Hanover Insurance, Zurich Insurance, LIberty Mutual and Amica Mutual Insurance.

Competitors

Guidewire's main competitor is Duck Creek, which was spun out of Accenture, AQS and OneShield.

History

The company was founded in 2001 by Ken Branson, James Kwak, John Raguin and Marcus Ryu. In 2011, the company went public.

in 2013, the company acquired Millbank, a data management and business intelligence company. In 2016, the company acquired EagleEye Analytics, a SaaS predictive analytics tool.

Management

Marcus Ryu (CEO): Marcus serves as CEO and Founder since 2010. Prior, he served in various roles at the company including VP Strategy and VP Products. He had also worked as VP Strategy at Ariba, a supply chain software company owned by SAP. He also worked as an Engagement Manager at McKinsey.

Curtis H. Smith (CFO): Curtis Smith serves as CFO since 2018. Prior, he was CFO of Infusionsoft, an email marketing and sales platform. He had also worked as CFO Keynote Systems, Managing Director at GCA Savvian Advisors and VP Technology investment banking at Credit Suisse.

Financials

 $ USD in millions    2013    2014 2015 2016 2017
 Revenues $301 
$350 
$381 
$424 
$514 
 Gross Profit $175 
$201 
 $233 
 $273 
 $323 
 Operating Profit $30 
$18 
 $17 
 $16 
 $27 
 Net Income$25 
$15 
$10 
 $15 
 $21 
 EPS$0.40 
$0.21 
$0.14 
$0.20 
$0.28 

Guidewire Software, Inc.
 
  Ticker     NASDAQ: GWRE
  Industry Technology
  Founded 2001
  Headquarters Foster City, CA
  Customers328 (2017)
  Revenues
$514mm (2017)
  Employees 1,893 (2017)
  Website guidewire.com