Guidewire Software, inc (NYSE:GWRE)
Q1 2022 Earnings Call
Dec 2, 2021, 5:00 p.m. ET
- Prepared Remarks
- Questions and Answers
- Call Participants
Greetings and welcome to the Guidewire First Quarter 2022 Financial Results Conference Call. [Operator Instructions]
It is now my pleasure to introduce your host, Alex Hughes, Vice President of Investor Relations. Thank you, Alex. You may begin.
Alex Hughes — Investor Relations
Thank you operator. Good afternoon and welcome to Guidewire earnings conference call for the first quarter of fiscal year 2022, which ended on October 31. My name is Alex Hughes, I am Vice President of Investor Relations and with me on the call is Mike Rosenbaum, Guidewire’s Chief Executive Officer; and Jeff Cooper, Guidewire’s Chief Financial Officer.
A complete disclosure of our results can be found in our press release issued today as well as in our related Form 8-K furnished to the SEC, both of which are available on the Investor Relations section of our website. Today’s call is being recorded and a replay will be available following the conclusion of the call.
Statements made on this call include forward-looking ones regarding our financial results, products, customer demand, operations and the impact of COVID-19 on our business and other matters. These statements are subject to risks, uncertainties and assumptions and are based on management’s current expectations as of today and should not be relied upon as representing our views as of any subsequent date. Please refer to the press release and the risk factors included within the documents we file with the SEC, including our most recent annual report on Form 10-K as filed with the SEC, for information on risks, uncertainties and assumptions that may cause actual results to differ materially from those set forth in such statements.
We also will refer to certain non-GAAP financial measures to provide additional information to investors. A reconciliation of non-GAAP to GAAP measures is provided in our press release. Reconciliations and additional data are also posted in the supplement on our IR website.
And with that, I’ll now turn the call over to Mike.
Mike Rosenbaum — Chief Executive Officer
Thank you, Alex. Good afternoon everyone and thanks very much for joining us today. On the heels of a strong finish to last fiscal year, we had a record Q1 sales activity with — and continued to build momentum for Guidewire Cloud. Cloud bookings were over 90% of deal activity for the first time ever and helped drive Q1 ARR above the high end of our guidance range. It was a great start to our fiscal year and points to continued strength in our Cloud business and strategy.
In the quarter, we signed five more InsuranceSuite Cloud deals on top of 17 last quarter and saw another six successful Cloud customer deployments. This is a great illustration of success leading to success. As we close more deals and demonstrate more go-lives, we will see increasing confidence in demand from our customer base, with a growing number of commitments and successful deployments more insurers will decide that the time to move to the cloud is now. Interest in Guidewire and the overall Insurtech market was on full display at our recent Connections Customer Conference, which was held as a hybrid event in Las Vegas last month. We had over 1,300 people in physical attendance, which I think it’s phenomenal considering the current environment and international travel restrictions. We saw a broad participation from across our customer base and partner community and it was great to see a heightened focus on cloud and insurance innovation from everyone in our ecosystem. Connections was a great platform to show the Guidewire community the exciting new developments and innovations in Dobson, our fourth release of the Guidewire Cloud Platform.
I’ll talk more about Dobson in a minute, but I think it is getting clearer and clearer to our customers that the six-month release cycle of Guidewire Cloud Platform offers a superior track to the faster and continuous innovation needed to advance their objectives. As I mentioned Cloud deal activity in the quarter was phenomenal, with five new InsuranceSuite Cloud upgrades in the first quarter, spanning both Americas and EMEA. In the Americas, I was pleased to see a deal with a Tier 1 insurer and activity across both commercial and personal lines. A Tier one insurer elected to upgrade ClaimCenter to the cloud as part of its strategic vision to provide industry leading claims services while balancing superior satisfaction indemnity accuracy and cost of service management. Franklin Mutual based in New Jersey and dating back to 1879 elected to migrate to the Guidewire Cloud Platform to take advantage of our Autopilot Roadmap, data strategy and the combination of our deep R&D and innovation cadence delivered to the cloud through our fast six month release cycle. Franklin Mutual came to Guidewire through our acquisition of ISCS, decided to migrate to InsuranceSuite V10 from InsuranceNow in 2018, and we are now excited to take them to our cloud as they look to further expand. A Tier 2 Insurer based in Canada chose to migrate ClaimCenter in order to simplify its technical ecosystem and to accelerate speed to market. This builds on their adoption earlier in the year of PolicyCenter and BillingCenter for the Guidewire Cloud.
In EMEA, it was great to see two exciting Cloud deals. Tryg, the largest non-life insurance company in Scandinavia with significant market share across Denmark, Sweden and Norway adopted ClaimCenter on Guidewire Cloud for its platform sophistication autopilot and analytics technologies. P&V Assurances founded in 1907 and now one of Belgium’s largest insurers, elected to migrate InsuranceSuite to the cloud, because of our platform strong fit with its strategic imperatives. We also saw continued success in analytics in the first quarter.
S&P as I briefly mentioned last earnings call expanded their relationship with us in a very significant and strategic way. We will work with S&P to use science to develop the first cyber risk impact quantification of credit and financial health. This is an outstanding validation of what we already know that cyber risk is an important consideration when evaluating credit risk and it’s exciting to partner with S&P on this initiative.
Additionally Markel Corporation, a global insurance and reinsurance carrier, based in Virginia selected science. In addition to deal activity, we continue to drive strong cloud deployments with six more Cloud go-lives in the quarter. These deployments are critical element of our cloud strategy, because they enable us to show the industry that customers just like them are successfully executing cloud strategies on the Guidewire Cloud Platform. A large Tier 1 insurer went live with ClaimCenter on Guidewire Cloud and began its business rollout. This speaks to our ability to support an important Tier 1 customer in the cloud and we look forward to continuing our work together.
Amica, the oldest mutual insurer of automobiles in the United States, achieved the second of its three major Cloud milestones with the launch of PolicyCenter on Guidewire Cloud. This joins BillingCenter and will next be joined by ClaimCenter and speaks to our ability to successfully transition a large long-standing and highly configured customer to Guidewire Cloud.
We also saw a private mutual insurer with over 120 years of experience serving individuals, families and businesses in multiple states throughout the United States, deploy PolicyCenter, BillingCenter, producer engage and cloud data access in Guidewire Cloud. This sets the foundation for multi-state expansion and additional lines of business on Guidewire Cloud. In addition a fast-moving commercial insurer targeting the evolving mobility market successfully launched ClaimCenter on Guidewire Cloud in less than 10 weeks, which speaks to the fast time-to-market advantage that Guidewire Cloud brings to greenfield initiatives. This follows the PolicyCenter and BillingCenter go-lives a year ago, meaning they’re now in production with all three core InsuranceSuite Cloud products.
At the same time, we also deployed InsuranceNow, two [Phonetic] more insurers, Bowhead Specialty and Innovated [Phonetic] Holdings. Customers adopting and deploying Guidewire Cloud are doing so in large part to…