Guidewire Software is a provider of software for casualty and property insurance companies. The company’s products include a claims management system, a policy management system, and a cloud-based solution called InsuranceNow. The company has reported strong results for multiple quarters and benefits from an overall momentum in cloud adoption. Guidewire’s business model is based on recurring subscription revenues. As a result, the company seems to be well-positioned to benefit from the modernization of the property & casualty insurance industry and sustain long-term growth. Therefore, investors looking at software application stocks to buy may want to study Guidewire Software in more detail.
More Information About Guidewire Software
Guidewire Software was founded in the year 2001 by Marcus Ryu, John Raguin, Ken Branson, James Kwak, Mark Shaw, and John Seybold. The company is based in San Mateo, California, which is part of the famous Silicon Valley. Guidewire Software’s business model is centered around earning recurring revenue through the sale of term licenses. In fact, the annual recurring revenue or ARR for Guidewire has grown from $268 million in FY2016 to $514 million in FY2020. Cloud ARR has also taken off from $62 million in FY2018 to $155 million in FY2020. Guidewire also runs a marketplace with 600 apps from more than 90 partners.
As mentioned above, Guidewire Software specializes in the property and casualty insurance sub-sector. This sector is estimated to be worth $2.5 trillion globally. Out of that $2.5 trillion, about $1 trillion of opportunity is estimated to exist within the Americas. More than 400 insurers use the solutions created by Guidewire Software. Investors looking for the top software application stocks could consider Guidewire Software as one of the options.
Guidewire Software’s stock trades on the New York stock exchange under the ticker symbol GWRE. The stock closed at $116 on 29th June 2021. Guidewire Software’s stock has gained a significant 19% over the preceding month. However, on a 1-year basis, the stock is up only 4.6%.