Guidewire Software Inc Analyst Day Presentation September 2014

Guidewire Software
Analyst Day
Thursday, September 18th
© Guidewire Software, Inc. All rights reserved. Do not distribute without permission.
1
Safe Harbor
This presentation is for informational purposes only and is not an offer to sell securities or a solicitation of an offer to buy
any securities, and may not be relied upon in connection with the purchase or sale of any security.
This presentation is proprietary and is intended solely for the information of the persons to whom it is presented. It may
not be retained, reproduced or distributed, in whole or in part, by any means (including electronic) without the prior
written consent of Guidewire Software.
This presentation contains forward-looking statements. All statements other than statements of historical fact contained
in this presentation are forward-looking statements. In some cases, you can identify forward-looking statements by
terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,”
“potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only
current predictions and are subject to known and unknown risks, uncertainties and other factors that may cause our or
our industry’s actual results, levels of activity, performance or achievements to be materially different from those
anticipated by the forward-looking statements. These forward-looking statements are subject to a number of risks,
including those described under the heading “Risk Factors” in our periodic reports we have filed with the Securities and
Exchange Commission (the “SEC”). Although we believe that the expectations reflected in the forward-looking statements
are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by
law, we are under no duty to update or revise any of the forward-looking statements, whether as a result of new
information, future events or otherwise, after the date of this presentation.
In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These non-GAAP
financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared
in accordance with U.S. GAAP.
This presentation contains statistical data that we obtained from industry publications and reports generated by third
parties. Although we believe that the publications and reports are reliable, we have not independently verified this
statistical data.
2
Agenda
Time Topic Speaker
1:00 − 1:45pm Company Update Marcus Ryu, CEO, Guidewire
1:45 − 2:15pm Sales & Organization Scott Roza, SVP, Worldwide Sales
Update
2:15 − 2:30pm Break

2:30 − 3:15pm Case Study 1: CAA Matthew Turack, VP, CAA Insurance Company
Insurance
3:15 − 4:00pm Case Study 2: ADAC AG Günter Weinrauch, CIO, ADAC AG
4:00− 4:45pm Partner Perspective Rajcan Surface, Director, Insurance Core

System Transformation, PwC
4:45 − 5:00pm Financial Update Karen Blasing, CFO, Guidewire
5:00 − 6:00pm Cocktail reception
Company Update
Marcus Ryu, CEO
•
4
Mission and Value

s Proposition
5
Our Mission
To build software products that transform

the global P/C insurance industry…
…and to ensure that every customer

succeeds in the journey
6
P&C Insurance: Large and Pervasive
Global P&C Premiums Diverse Lines of Business

100% = ~$2 trillion
APAC
20%
Americas
44%
EMEA
36%
Source: Swiss Re, AM Best, NAIC (2013)

7
What Insurers Do: The P&C Lifecycle
Serving and
Selling policies
billing customers
Defining and
Managing claims
pricing risks
Policyholder
8
Legacy Core System Environments
Hard-coded, unstructured Extremely complex
9
Guidewire InsuranceSuite
• Full legacy replacement

PolicyCenter
• Pre-integrated but can be
implemented individually
• Flexible and upgradeable
BillingCenter ClaimCenter
10
InsuranceSuite in Action: A Few Examples
Policyholder
11
Example Benefit Case (Claims)
Multi-dimensional benefit case spanning growth,

customer retention, leakage reduction, and efficiency
12
Proven Value in Legacy Replacement
OTHER
PREMIUM
LEAKAGE GROWTH
OPPORTUNITY:
EXPENSE 2.5−4.5 points of
operating income
INDEMNITY
PRODUCTIVITY LEAKAGE
Source: Customer data, Guidewire analysis

13
Mission and Value Proposition
Winning in our Market: Adoption
14
Goal: Recurring Revenue Growth

License and Maint Services Total
Fiscal Year ended 31 July 2014 • FY14 license/maint
$million 23%
350 growth from Suite
adoption + Tier 1 wins
301
• Services is enabler of
232 recurring license/maint
24%
194
22%
161 156 • Fundamentally, two
127
140 growth vectors ahead:
105
- Winning in our market
(adoption)
- Growing our market
(product expansion)
FY12 FY13 FY14 FY12 FY13 FY14 FY12 FY13 FY14
15
Market Progress Metrics: Early Days

Total Customer Count Premiums Under License1
$ billion
260
183 235
158 204
130 154
101
84 107
71
57 84
$50
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY08 FY09 FY10 FY11 FY12 FY13 FY14
Guidewire has at least one core application at 13-15% of

market by customer count and premiums
(1) Premium Under License = Total of licensed premiums, across all customers that have licensed one or more products
16
Market Progress Metrics (cont.)

Expansion Potential in Customer Base Overall Penetration by Insurer Size
100% = Recurring Revenue Potential for Full $ billion
InsuranceSuite for Current DWP Under License1
>$5B
$1-5B
Licensed
$300M -
Opportunity DWP under license
$1B
Remaining market
<$300M
$0 $850
Significant upsell potential within customer base, and

opportunity across all market tiers
(1) Assumes average historical prices; does not include expansion of DWP under license.
17

Total Customer $DWP by Tiers
• Customer base spans all
sizes of insurer
FY11 FY14 • Tier 1 (top 10%)

- Moderate concentration
of industry premium
>$5B 9% 3 Yr. CAGR
14 18 - Tend to license single
product / BU at a time
$1B to <$5B 18% - Often expand usage of
31 51
products over time
$300M to <$1B 23 47 27% • Tiers 2-4 (remaining 90%)

- Tend to license multiple
products/Suite at once
<$300M 33 67 20% - Higher pricing
Notes: As of 31 July 2011 & 31 July 2014; DWP = Direct Written Premium
18

Premiums Under License, by Region
Americas EMEA APAC
100% = $880 billion 100% = $720 billion 100% = $400 billion
Guidewire Guidewire Guidewire
Opportunity
Global orientation essential for both R&D and S&M:

<10% of international premium is under license
19
Global Footprint and Credentials

Finland
Poland
Germany
United Kingdom Russia
Canada Belgium
France
US Switzerland Japan
Italy China
Mexico Puerto Rico
Brazil
Peru
Australia
New Zealand
Argentina
South Africa
>300 projects competed or underway in 20 countries

>125 customers now live in production
20
Mission and Value Proposition
Winning in our Market: Adoption
Growing our Market: Product Expansion
21
P&C Lifecycle: Transformation Themes
“Digital” distribution Omni-channel Customer centricity

Straight through processing Policyholder self-service
Usage-based insurance Non-financial indemnification
Micro-segmentation Claims supply chain integration
Pricing optimization Proactive catastrophe mgmt
Business-user configuration Medical severity management
Accelerated product intros Fraud prevention
Policyholder
Predictive analytics
Insurers undertaking transformation initiatives —

motivated by ambition and/or competitive necessity
22
The P&C Lifecycle and Guidewire’s Role
Omni-channel
“Digital” distribution Customer centricity
Straight through processing Policyholder self-service
Usage-based insurance Non-financial indemnification
Micro-segmentation Claims supply chain integration
Pricing optimization Proactive catastrophe mgmt
Business-user config Medical severity mgmt
Accelerated product intros Fraud prevention
Policyholder
Predictive analytics
InsuranceSuite is the operational core of the lifecycle —

but does not yet serve all transformation goals
23
Policyholder
Mobile & Portal products: extending InsuranceSuite

to external parties for distribution and service
24
Policyholder
DataHub InfoCenter Live
Data Management and Analytics: serving major needs for

reporting, data warehousing, and analytic insight
25
Product Investment: Headcount

FY13 FY14 FY15E
InsuranceSuite InsuranceSuite InsuranceSuite
New
Initiatives
New
Initiatives
New
Initiatives
R&D HC: 330 328 420 (+28%)
Investments to advance InsuranceSuite leadership, mature

newer offerings, and expand scope to full lifecycle
26
Our Long-Term Agenda
Decisively win the Build products Aggregate and find

1 land grab for legacy 2 addressing the 3 insight within data
replacement full P&C lifecycle of customer base
27
What We Could Achieve If Successful
Key enabling Creation of a new

Leadership position
1 in core systems 2 role in industry 3 data standard for
transformation the industry
Growth to multiple times our size and influence

Transformation of a $2 trillion global industry
29
Introducings Scott Roza
Sales & Organization Update
Scott Roza, SVP Worldwide Sales
•
31
FY14 Sales
32
FY14 Sales
• 26 new customers; 12 bought multiple products

• 32 existing customers bought more products
• 25 new product sales; gaining market traction
• 27 customer go-lives
33
FY14 Core Product Wins (partial listing)

PolicyCenter BillingCenter ClaimCenter
34
Growth in InsuranceSuite Adoption

Cumulative Licenses by Product
350
3 yr.
CAGR
300
69 PolicyCenter 57%
250
50
82
200 BillingCenter 37%
35 61
150 46
18 151
32 131
14
100
26
116 ClaimCenter 18%
10 92
6 17
8 76
50 62
53
0
FY08 FY09 FY10 FY11 FY12 FY13 FY14
35
Customers Moving Towards Suite
PolicyCenter
69
82 151
Fiscal Year ended July 31, 2014

36
Customers Moving Towards Suite

69
2
PolicyCenter • 48 InsuranceSuite
customers
11 8
48 • 14 added during FY14
8 80
BillingCenter 15 ClaimCenter
82 151
Early Innings of InsuranceSuite Adoption
37
Momentum in New Initiatives New Offerings: Customers

who have bought Data
Mgmt, Guidewire Live, or
License & Maintenance ($M) Mobile & Portals
$200 $194M
$161M
$150
$127M
InsuranceSuite
InsuranceSuite
$100
InsuranceSuite
$50
$0
FY12 FY13 FY14
New Products Expand TAM
38
Investment in Sales & Marketing

FY13 FY14 FY15
Sales Sales Sales Sales
Marketing
Marketing Marketing Marketing
FY15 sales & marketing investments include:

• Sales coverage, primarily across Europe
• Sales specialists supporting new product sales
• Product marketing aligns with new product initiatives

Global Presence (partial listing)
39
MULTI-NATIONALS U.S. ITALY FRANCE SWITZERLAND
GEICO
BELGIUM RUSSIA GERMANY
CANADA U.K. POLAND FINLAND CHINA
SOUTH AFRICA NEW ZEALAND AUSTRALIA
MEXICO BRAZIL PERU ARGENTINA JAPAN
180+ Total Customers (125+ in Production)

© Guidewire Software, Inc. All rights reserved. Do not distribute without permission. © Guidewire Software, Inc. Confidential / For the Internal Use of Nationwide Only.
40
European Customers
Beazley FINLAND
BELGIUM
RU SSIA
UK POLAND
GERMANY
Switzerland
FRANCE
ITALY
Continuing to Invest in Europe

41
First-Time Customer Go-Lives
Poland
Another year extending our track record of

customer success
42
Strong System Integrator Ecosystem
Consultants in 3rd Party Guidewire Practices

5,000 • ~4,400 Consultants
trained
4,000
3,000
• Expanding ranks of
2,000 regional specialists:
1,000
2010 2011 2012 2013 2014
43
Industry Analyst Recognition

Gartner Magic Quadrant: P&C Insurance Claims Management Systems
Guidewire has demonstrated

strength in terms of market
momentum and consistent
results that put it in a class of
its own.
‒ Jeff Haner, Gartner
senior analyst, May 2014
Guidewire Named a Leader

44
PolicyCenter Repeats as Sole “Strong

Positive” in Gartner MarketScope Report
MarketScope for North American Property and Casualty Insurance Policy Management Modules
RATING
Strong Caution Promising Positive Strong

Negative Positive
Accenture X
Adaptik X
CodeObjects X
Guidewire Software X
Innovation Group X
Insurity X
MajescoMastek X
Maximum Processing X
Oceanwide X
OneShield X
As of March 2014
Gartner Research Document:
Gartner MarketScope for North American Property and Casualty Insurance Policy Management Modules
Jeff Haner, March 2014.
Report has been published by Gartner; Reprint link available on guidewire.com

© Guidewire Software, Inc. All rights reserved. Do not distribute without permission. Guidewire Proprietary & Confidential – For Internal Use Only
45
FY14 Sales
A Customer Example
46
Example of Selection Process Timeline
Initial Guidewire
Meeting Qualified Evaluating Finalist Selected
Requirements Value Implementation Customer Connections

Collection Consulting Workshop References
Initial Role Scripted Proof of Analyst Guidewire HQ

Demonstration Observations Demonstration Concept Validation Visit
47
Example of a Real Buying Cycle

Timeline of key buying decisions Adoption of full InsuranceSuite Expansion with Data Management
May ‘12 June ‘13 Nov ‘13

ClaimCenter PolicyCenter & Datahub &
purchased BillingCenter InfoCenter
purchased purchased
FY 2011 FY 2012 FY 2013 FY 2014
ClaimCenter demo Value Consulting PolicyCenter & Data Management

workshop BillingCenter deep dive
Workshops
Initial meeting Customer attends PolicyCenter & PolicyCenter &

Connections BillingCenter BillingCenter Proof
demo of Concept
Claims, policy, & billing decisions all went through a competitive selection process
48
Example of a Real Buying Cycle – cont’d
3 point retention increase
Growth
Customer Was 5% new business policies in force
Driving for Growth & (PIF) increase
Business Efficiency
~0.5 point decrease in business
expense ratio
Business Efficiency
6% decrease in annual IT budget
49
Example of a Real Buying Cycle – cont’d

What did the customer say?
Bought the Product… …and Bought the Company
“Provides end-to-end full policy lifecycle

capabilities.” “Focus solely on the P&C software
market.”
“Provides for business transformation
mindset instead of software factory.” “Proven track record of implementation
success.”
“Existing integration with last year’s
choice of Guidewire’s ClaimCenter “Corporate culture of excellence, integrity,
product.” and client success.”
“Guidewire was the clear choice…they

differentiated themselves from the competition.”
CAA Insurance
Core System Replacement with Guidewire Products
Focused on Member Service
Multi-channel Distribution
Partnerships
What we needed
OUR GOAL:
TheCAA
Enable gapto overcome this
gap and transform our business
What we had
30% 50%
increase in reduction in
straight- overall sales
through and service
processing processing
time
Increased claims
processing productivity
More Responsive
New regions in 84 and 93 days
14 rate & product changes
in first 9 months
Fully self-sufficient
Better Agility
Reduced operating
expenses through
automated payment and
refund processes
Better cost controls with

IT self-sufficiency
Lower Cost
Core System Transformation
Avaya Telephony Platform
InsuranceSuite
PolicyCenter
PolicyCenter
BillingCenter
ClaimCenter
Data Warehouse
Organic Growth 6.0% CAGR
Auto/Property Policy Growth
103.1%
142,857
99.8%
133,714
Industry Average
127,465
91.8%
112,852 91.2%
Combined Ratio
2010 2011 2012 2013

Questions?
Guidewire
New York Analyst Day
September 18, 2014
Günter Weinrauch
CIO ADAC e. V.
© www.adac.de
Innovation IT Business
Proactivity
Projects
Technology
Strategy
Agenda
Key Facts ADAC and ADAC IT
Why Did We Choose Guidewire?
Project “Hermes”: the Implementation of Guidewire at ADAC
Guidewire and Personal Comment on Partnership
18.09.2014 New York Analyst Day, Günter Weinrauch 2

Günter Weinrauch – Personal Data
CIO at ADAC e. V. since March 2011
January 2005 to September 2009 CIO at Premiere AG (now Sky

Deutschland AG)
14 years of experience in IT and strategic management consulting
International experience in USA, Portugal, Switzerland and Egypt
Engineering Degree (University of Applied Sciences, Munich,

Germany) and MBA (University of Maryland, College Park, USA)
mail: guenter.weinrauch@adac.de
Tel: +49.89.7676-2822
Awards:
• CIO of the Year 2006, 2008 (2nd place, SME) and 2013 (Top 10, large corporations)
• Handelsblatt IT-Strategy Award: Finalist 2008 and 2009; Winner 2014
• Representative for Germany for the “European CIO of the Year 2014”

Key Facts ADAC
More than 300 additional products and

services for ADAC members:
2nd largest • Medical Assistance worldwide
Automobile Club • Insurance
in the World
• Car rental
• Publishing
• Driver safety training
• …
Roadside Assistance:
• 4,2 M. assistance calls
(peak > 30.000 calls/day)
• 1,660 Roadside Assistance
Vehicles, 45 helicopters and
5 airplanes
• Multiple services around car and
mobility

Key Facts ADAC IT
8,600 users in ADAC headquarters,

offices in Germany and abroad
300 employees in IT & 60 to 70

permanent external employees
Annual IT budget ~ US $100 million
16 million phone calls and 24 million

emails annually
90 apps & portals on the web and on

mobile devices
7 x 24 business / support

The three Pillars of the ADAC IT-Strategy
ADAC Strategy
Vision / IT- Strategy
Positioning of the IT- Standardization & Optimization und

Organization Orientation on Best Rejuvenation of IT-
Practices Infrastructure
Top-down
Bottom-up
Goal: Goal: Goal:
• Strategic positioning of IT • Orientation of the IT • Future-oriented systems
within the ADAC Service delivery along development
organization industry standards and • Creation of synergies and
• Managed change best practices improved efficiency
Strategy Execution Process

Why Did We Choose Guidewire?

18.09.20
8 New York Analyst Day, Günter Weinrauch
14
Business pain points • Overall system landscape very complex – old technology
that drove the need and custom-built systems, with too many different systems
for a new solution providing similar functionality
• Existing systems offer only limited flexibility for business;
further customization costly and complex
• High operations costs to support the legacy systems
9 • As a result, case handling cost was deemed to be high and
New York Analyst Day, Günter Weinrauch
18.09.20
14
reduction was necessary
Starting Position IT
Until beginning 2012 two projects in parallel to implement

new IT-systems to support the ADAC assistance process
Both projects initiated as custom-development due to

lack of standard system available at time of inception
Primary targets: external case handling cost reduction

and continued ability to support business requirements
Significant problems in both projects early in 2012
New ADAC IT-Strategy also led to re-evaluation of chosen

approach

Vendor Selection Process
Beginning of 2012 a new market analysis was started
Assessment that Guidewire ClaimCenter would be able to

address all help processes at ADAC
Eight week ‘Proof-of-Concept’ with Guidewire in Fall 2012
Reference calls to 5 existing Guidewire customers (AXA

Germany, Direct Line UK, CAA, AAA CA, RGS); all were very
positive
Capability to replace additional ADAC legacy systems was

seen as additional benefit of Guidewire solution

Challenges with the ADAC Selection of Guidewire
Guidewire Challenges
• Core focus of Guidewire ClaimCenter is claim settlement
• Several key ADAC requirements new to Guidewire (7/24-Low Down-Time,
Push Notifications, ...)
• Limited experience and references in the European market for Guidewire
• At least partial use of German language
ADAC Challenges
• No experience with international contracts and US-licensing agreements
• English language added extra complexity
• The typical project setup in Guidewire implementation projects has never
been used before
•…
Project “Hermes”: the implementation of
Guidewire at ADAC

The ADAC HERMES Project – Embedding in ADAC Strategy
ADAC Cost efficiency and future

readiness
Business Ability to quickly introduce new
Strategy products and processes
Use of
standard Reduction
ADAC IT software in number
Strategy where of IT
systems
possible

The ADAC HERMES Project – Key Facts
HERMES: Project Product

Project
the protector duration used:
costs: ~ US
of travelling with current Guidewire
$ 15 million
people plan: 3 years ClaimCenter

The ADAC HERMES Project – Paradigm Changes
The previous attempt to implement a solution failed
ADAC has Development Project

Technology Project Setup
changed .... Methodology Language
This has been a fundamental culture change!

The ADAC HERMES Project – Project Execution
Guidewire
provides
Project staff
software,
mostly
Tight integration methodology,
ADAC-
with numerous and project
employees
Project legacy systems guidance
with
implementation and telephony Guidewire
in 3 distinct support
“Waves”

The ADAC HERMES Project – Current Status
Primary Vehicle
Go-live Vehicle
Roadside Assistance Go-live Int’l. Medical
Secondary Roadside
(Wave 1) in pilot Assistance (Wave 2b)
Assistance
production; full in Q4/2015
(Wave 2a) in Q3/2015
rollout in Q4/2014

Future Plans with Guidewire

Strategic Roadmap with Guidewire
Replacement of the legacy system to dispatch support

services to external partners using “Guidewire Vendor Portal”
Proof-of-Concept to replace several custom-developed legacy

claim settlement systems with Guidewire ClaimCenter
Additional projects envisioned with Guidewire:

• Replacement of the current system to handle B2B assistance contracts
also with “Guidewire ClaimCenter”
• Replacement of the legacy system to handle insurance contracts with
“Guidewire PolicyCenter”
• …

ADAC & Guidewire Partnership – Success Factors
Key success factors were Guidewire helped ADAC to

successfully work on the
the personal presence &
Guidewire implementation
involvement of Guidewire project and manage the
senior management paradigm changes required

ADAC & Guidewire Partnership – ADAC Recommendations
Stronger guiding
hand through the
project
Increased Guidewire
presence in Germany
– including German
speaking experts
More prominent
European representation
familiar with European
regulations and
peculiarities

Thank you
for your attention!
www.pwc.com
Guidewire Software
Analyst Day
PwC Partner Perspective
September 18, 2014
RAJCAN SURFACE, Director Insurance Practice

Agenda
 PwC and Guidewire Software
 What is fueling our growth
 Market segments, drivers and trends
2
PwC
About me
 More than 15 years experience in P&C industry

 Software Selection, Roadmap, Execution of Core System Projects
 Global responsibilities to grow our practice
 PwC, KPMG Consulting, Cognizant Technology, Hewlett-Packard
 Chicago resident
 Purdue undergrad in Environmental Science and Physics
 Weekends at home with my wife and 2 boys
3
PwC
Overview of PwC
About PwC Global

PwC is one of the largest professional services networks in
the world.
PwC helps organisations and individuals create the value they’re looking for. We’re a
network of firms in 157 countries with over 184,000 people who are committed to
delivering quality in assurance, tax and advisory services.
Assurance/Advisory/Tax
North & South Europe, Middle East Asia Pacific
America & Africa
59,103 people 79,509 people
45,623 people
Locations Revenue
157 countries 776 cities US$ 32.1 billion
People
184,235 people
PwC 4
Relationship with Guidewire
 Dating back to 2003
 From Strategy and Roadmap to Execution
 Over 8,000 insurance professionals, with over 600 resources focused on

Guidewire and insurance business transformation
 More than 75 Guidewire related projects
 Guidewire Software is recognized as a 1 of 7 Global Partners within PwC
 Global development centers supporting Guidewire Software

implementations
 Joint marketing to drive awareness in the marketplace
 PwC Managed Services offering
5
PwC
What is fueling the growth
 Market has been shifting over the last 5-7 years

 Disparate 20+ year old systems
 Maturing of software solutions
 Aging workforce
 Manual and broken processes
 Lack of usable data
 Product speed to market
 Customer and digital experience
 M&A
 Global, Regional, State Funds, Personal, Commercial
6
PwC
Industry Trends – What we are seeing
Nearly 60% of technology spend is going towards core system

transformation
Improve Market Responsiveness Improve Operating Leverage
Product Cross-
Sell Expense Ratio
Simplify Customer View
Profitability Improve Operational Efficiency
Policy
Customer Throughput
Retention
Improve Customer & Agent Experience
Revenue
Expense Ratio
Revenue Increase Delivery Assurance

Enhance Multi-Channel Distribution
Cost to Introduce
Strategy / React
Profitability
Revenue Expense Ratio

Enhance Information Management Retention
Eliminate Legacy Platforms Reusability
Profitability
Revenue Maintenance
Introduce New Products to Market Cost
Profitability
More Rapidly
Market Share Cost to
Compete
Cost of
Reduce Cost Pressures
React to Regulatory Change More Compliance
Rapidly Profitability
Profitability
7
PwC
Questions
©2014 PricewaterhouseCoopers LLP. All rights reserved. "PricewaterhouseCoopers" refers to PricewaterhouseCoopers LLP, a Delaware limited liability
partnership, or, as the context requires, the PricewaterhouseCoopers global network or other member firms of the network, each of which is a separate
legal entity. This proposal is protected under the copyright laws of the United States and other countries. This proposal contains information that is
proprietary and confidential to PricewaterhouseCoopers LLP, and shall not be disclosed outside the recipient's company or duplicated, used or disclosed
in whole or in part by the recipient for any purpose other than to evaluate this proposal. Any other use or disclosure in whole or in part of this information
without the express written permission of PricewaterhouseCoopers LLP
is prohibited.
8
PwC
Financial Update
Karen Blasing, CFO
•
1
FY14 Financial Results and FY15 Guidance
2
FY14 Full-Year Compared to FY13

NON-GAAP
$m FY13 FY14
Revenue Deepened the annuity model:
License $124 $152 Term license 24%
Maintenance 38 42
Services 140 156 Leveraged SI ecosystem
TOTAL REVENUE 301 350
Total COR 118 135

Gross margin 61% 62%
Expenses
Development 57 67 Delivered v8 of InsuranceSuite and
Sales & marketing 47 61 new products
General & admin 23 26
Expanded sales team
Operating income 56 62
Operating margin 18% 18% Delivered margin
Stock-based comp 26 43
0
FY15 Reconfirming Guidance

Reconfirming Guidance as of September 18, 2014
NON-GAAP
FY15
$m Guidance
Revenue Strengthening the annuity model:
License $168.3 – 180.0 Term License 20% +
Maintenance 47.9 – 49.9
Services 148.0 – 152.0
TOTAL REVENUE 364.2 – 381.9 Leveraging SI ecosystem
Service and Maintenance Cost
Investing primarily in Europe

Research & Development
Advancing product leadership
Sales & Marketing
Building new products
Non-GAAP operating income 39.2 – 50.4
4
FY14 Results and FY15 Guidance
Business Model
5
Trailing 4 Quarters Recurring Revenues

Maintenance
Fiscal Year ended 31 July
($M) License
21% YoY growth
182
165
154
150 148 42
131
127 40
115 37 37 39
104
34 36
32
29
140
113 115 125
111
83 93 95
75
Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14

% of total
license and 80% 82% 89% 93% 94% 93% 93% 93% 94%
maintenance
revenue
Growth Drivers: New Customers and Upsell to

InsuranceSuite
6
Business Model: Land and Expand

Go To Market Plan
1. Term Licensing Model
2. Pricing Based on DWP
3. Win New Customers
Recurring Revenue 4. Sales to Sibling Companies
5. Expand to New Geographies
6. Sell InsuranceSuite
7. Sell New Products
Deep Investments
1. Research & Development
• Advancing Product Leadership
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 • Building New Products
FY12 FY13 FY14
2. Sales & Marketing
• High Touch Direct Selling Model
• Global Expansion
• Product Marketing
7
FY14 Financial Results
Examples of the Go To Market
8
Selling New Products

Tier 4 Customer Adoption
Mobile and Portals
.03$
Economic Multiplier
of 6%
ClaimCenter
.5$
Year 0 Year 1 Year 2
9
Selling InsuranceSuite and New Products

Data Management
$$
BillingCenter
$$
PolicyCenter
Economic Multiplier
$$$$$ of 260%
ClaimCenter
$$$
Year 0 Year 1 Year 2
10
Selling InsuranceSuite
BillingCenter
$$
PolicyCenter
$$$$$$$$$$$$
ClaimCenter Economic Multiplier

of 150%
$$$$$$$$$$
Year 0 Year 1 Year 2 Year 3 Year 4
11
Geo and Product Expansion

PolicyCenter (APAC)
BillingCenter (APAC)
$$$$$$
Data Management (APAC)
Mobile and Portals (APAC)
ClaimCenter (US)
$$$$$ Economic Multiplier
ClaimCenter (EMEA) of 470%
ClaimCenter (APAC) $$$$$$
$$$$
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Appendix
14
Guidewire Balance Sheet
$ million 31 July 2013 31 July 2014

Cash and cash equivalents $80 $148
ST and LT investments 128 500
Accounts receivable 41 50
Total assets 306 757
Long-term debt, including current portion 0 0
Deferred revenues 41 55
Total stockholders’ equity 222 651
15
Reconciliation of Non-GAAP Operating Income

$ million FY 13 (A) FY 14(A) FY 15(F)
Income (loss) from operations 29.7 18.4 (10.7)
Non-GAAP adjustments:
Total stock-based compensation 25.5 42.5 54.0
Amortization of intangible assets 0.3 1.4 1.4
Non-GAAP operating income 55.6 62.4 44.8

Guidewire Software Inc Analyst Day Presentation September 2014

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Guidewire Software Inc Analyst Day Presentation September 2014

Uploaded by

Copyright:

Available Formats

Guidewire Software

2:15 − 2:30pm Break

4:00− 4:45pm Partner Perspective Rajcan Surface, Director, Insurance Core

5:00 − 6:00pm Cocktail reception

Mission and Value

To build software products that transform

…and to ensure that every customer

P&C Insurance: Large and Pervasive

Global P&C Premiums Diverse Lines of Business

Source: Swiss Re, AM Best, NAIC (2013)

What Insurers Do: The P&C Lifecycle

Legacy Core System Environments

Hard-coded, unstructured Extremely complex

• Full legacy replacement

InsuranceSuite in Action: A Few Examples

Example Benefit Case (Claims)

Multi-dimensional benefit case spanning growth,

Proven Value in Legacy Replacement

Source: Customer data, Guidewire analysis

Mission and Value Proposition

Winning in our Market: Adoption

Goal: Recurring Revenue Growth

Market Progress Metrics: Early Days

Guidewire has at least one core application at 13-15% of

Market Progress Metrics (cont.)

Significant upsell potential within customer base, and

Market Progress Metrics (cont.)

FY11 FY14 • Tier 1 (top 10%)

$300M to <$1B 23 47 27% • Tiers 2-4 (remaining 90%)

Market Progress Metrics (cont.)

Guidewire Guidewire Guidewire

Global orientation essential for both R&D and S&M:

Global Footprint and Credentials

Mexico Puerto Rico

>300 projects competed or underway in 20 countries

Mission and Value Proposition

Winning in our Market: Adoption

Growing our Market: Product Expansion

P&C Lifecycle: Transformation Themes

“Digital” distribution Omni-channel Customer centricity

Insurers undertaking transformation initiatives —

The P&C Lifecycle and Guidewire’s Role

InsuranceSuite is the operational core of the lifecycle —

The P&C Lifecycle and Guidewire’s Role

Mobile & Portal products: extending InsuranceSuite

The P&C Lifecycle and Guidewire’s Role

Data Management and Analytics: serving major needs for

Product Investment: Headcount

InsuranceSuite InsuranceSuite InsuranceSuite

R&D HC: 330 328 420 (+28%)

Investments to advance InsuranceSuite leadership, mature

Our Long-Term Agenda

Decisively win the Build products Aggregate and find

What We Could Achieve If Successful

Key enabling Creation of a new

Growth to multiple times our size and influence

Introducings Scott Roza

• 26 new customers; 12 bought multiple products

FY14 Core Product Wins (partial listing)

Growth in InsuranceSuite Adoption

Customers Moving Towards Suite

Fiscal Year ended July 31, 2014

Customers Moving Towards Suite