Guidewire Software, Inc.

and welcome to Guidewire's second quarter 2021 financial results conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Alex Hughes, Vice President of Investor Relations. Please go ahead.

Thank you, Operator. Good afternoon, and welcome to Guidewire Software's earnings conference call for the second quarter of fiscal year 2021, which ended on January 31st. 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, aka, furnished to the SEC, both of which are available on the Investor Relations section of our website. Today's call is being recorded and the replay will be available following the conclusion of the call. Statements made on this call include forward-looking statements 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 risk factors in the documents we file with the SEC, including our most recent annual report on Form 10-K and our quarterly report on Form 10-Q to be 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 will also refer to 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 a supplement on our IR website. And with that, I'll now turn the call over to Mike.

Thanks, Alex, and thanks, everyone, for joining us today. I'm pleased to report another strong quarter as our team continues to steadily execute on each of the key pillars powering our business. This includes driving a fundamental transformation of the company to a cloud service, continuing to lead the market for PNC Insurance Core system modernization, and developing an analytics capability that enhances the value we are able to deliver to our core customers while providing us growth opportunities. In the quarter, we saw a strong deal momentum for a broad selection of Guidewire solutions across customer tiers and geographies. We executed on a few key deployments on Guidewire Cloud. We had strong performance in our analytics business, and we continued to grow our partner ecosystem. We all feel great about our progress to date and our execution in the quarter makes me increasingly confident in not just our full-year financial outlook, which Jeff will talk more about in a minute, but also in the long-term potential of our company to serve the PNC insurance industry. I'd like to take a moment to comment on the PNC insurance industry and the role it plays in our economy and our lives. I think that the severe weather event in the United States, and especially Texas, is a great reminder of how important and beneficial the transfer and sharing of risk is to the function of our society. When I saw all the videos and news stories showing burst pipes and flooded houses, I asked our team how dire the situation was for our customers ensuring this risk. The answer was quick and, for me, reassuring. This event and its costs were, of course, large, but this event is exactly what the industry is here for, helping people, families, and businesses recover and get on with their lives. That answer was, as I said, reassuring, but also for me it was motivating. Having an opportunity to support an industry that helps families and businesses manage risk, giving us all some resilience in the face of crisis is a big part of why the team here at Guidewire loves what we do. Turning to the quarter, I'll walk through our sales highlights and then touch on some operational milestones. Cloud sales activity in the quarter was strong with five insurance week cloud wins and one insurance now win. Economical Mutual Insurance Company, a Canadian PNC insurer and two-time winner of the Guidewire Innovation Award, chose to migrate policy center and billing center to the Guidewire cloud to simplify their technical ecosystem and accelerate speed to market. Kentucky Farm Bureau, a tier two insurer and the second largest PNC insurer in Kentucky, agreed to upgrade their on-premise full insurance suite instance to the cloud and added predictive analytics. Mountain West Farm Bureau and 360 Insurance, a property and casualty insurance company doing business in Colorado, Montana, and Wyoming, decided to adopt the full suite in the cloud, including reinsurance management, predictive analytics, and science, representing a significant customer expansion. Royal Sun Alliance, or RSA, an existing claim center and digital customer in the UK, decided to upgrade to Guidewire Cloud, representing our first insurance suite cloud win in the UK. A longstanding Guidewire customer and global insurer selected PolicyCenter in the cloud for a new greenfield opportunity, representing their first cloud-based deployment in an important tier one insurer. And finally, Bowhead Specialty Underwriters, a new underwriting platform based in New York, selected insurance now due to its cloud maturity and confidence in our ability to deliver. We also closed two very exciting self-managed deals in the quarter, which highlights a unique benefit of our approach to our cloud transformation. While we still expect the majority of our bookings to come from cloud, We are seeing some insurers who, for a variety of reasons, are not yet ready to transition to a cloud-based core system and still have legacy systems in need of modernization. These companies recognize that eventually these applications will move to the cloud, and our approach offers them an opportunity to modernize now and smoothly migrate to our cloud when they're ready. We will work with these insurers to standardize their self-managed implementations with an eventual upgrade to the cloud in mind. This dynamic is enabled by our design approach, which optimizes for the install base of Guidewire customers, but its benefit to net new customers is proving to be important enough to call out. Covia, France's largest P&C insurer, is a good example of this dynamic. Covia selected Claim Center combined with Digital and Guidewire for Salesforce. This important win in Europe highlights both our global strength with tier one carriers and the value of our platform to large carriers seeking to modernize on-prem today with a longer term aspiration to go to our cloud. We're thrilled to establish a presence at Covea and look forward to expanding our footprint over time as we demonstrate success in this critical account. In addition, James River Group, a tier two insurer based in Bermuda, selected all of insurance suite, including digital and data, after a comprehensive RSP process. Market leadership and platform investments were critical to this win, which will start on-prem today, but we hope to have the opportunity to upgrade them to the cloud in the future. Sales activity and data and analytics was also strong in the quarter. And we were very pleased to see the momentum of our offerings, both as part of the core and as standalone solutions. Analytics is proving to be a key driver in a number of our core deals as insurers look to strategically leverage analytics across multiple touchpoints within the insurance lifecycle. We tend to think of core system modernizations as mechanisms to upgrade and de-risk decades-old systems and to provide better support for new digital experiences. But analytics and specifically new approaches to embedding analytics-driven insights within core workflows can also improve decisions and efficiency. We also saw a strong sales performance of analytics on a standalone basis with five deals, including one for our predictive analytics platform and four for science. This included a range of insurers from a large tier one to an insurance broker focused on the London market. Switching gears to customer success, our teams continue to drive solid customer deployment activity with 12 customers going live on implementations for 35 Guidewire products globally. I was particularly pleased to see the important milestones with cloud deployments. In less than nine months, USAA was able to publicly launch their small business-focused product on the Guidewire cloud platform. This milestone demonstrates our ability to work successfully with the largest and most complex insurance companies as they execute on their business imperatives and cloud journeys. I look forward to continuing to execute and build on this very important relationship. Amica, one of the first customers to align with us on our cloud strategy, went live with Billing Center on Guidewire Cloud. This is the first step in our partnership with Amica to migrate all of insurance suite to our cloud. Amica has been an incredible partner in this journey with us, and this milestone is a proof point of the progress we've made towards establishing our cloud service. EMC, while not yet in production with their cloud implementation, successfully upgraded their pre-production instance from the Aspen release to Banff. This is an exciting early demonstration of the faster, more frequent, and more efficient customer upgrade cadence that will enable us to deliver greater value to our customers. Prior to Guidewire Cloud Platform, customers would start and complete their implementation journey on a single major release and only consider an upgrade years after the initial go live event. In this instance, we had a customer take an upgrade during the pre-production implementation process, which will allow them to go live on a more current release. This is an exciting event as it marks a new pattern for us, and it is more aligned to customer success and value. Finally, we saw Warrior Invictus Holding Company, a new InsuranceNow customer that we won last year, complete a successful initial go-live. Shifting to the ecosystem, we continue to see tremendous enthusiasm and excitement across Guidewire's global partner community and marketplace. With over 12,000 Guidewire-focused consultants, our SI partners remain important to facilitating implementations and accelerating customer success with value-added solutions. Moreover, the enthusiasm for Guidewire Cloud is growing. We finished the quarter with nearly 1,200 consultants from 28 partner companies who now have earned the advanced certifications required for Guidewire Insurance Suite Cloud implementations. This is up from approximately 730 at the end of Q1. At the same time, the momentum with our marketplace partners also continues. There are now over 690 applications from Guidewire and over 100 partners, doubling the number of partners over the last two years. As we continue to grow this marketplace, we unlock greater value for our customers by enabling InsurTechs to innovate on top of our platform through our open API-first approach. I was pleased to see second quarter momentum in Europe, where we added a number of new companies to Partner Connect, including Sprout AI and Tractable. who both use artificial intelligence technology to streamline the claims process. Sprout AI offers AI-driven real-time claims recommendations to settle, investigate, or repudiate a claim. And Tractable provides an AI estimating platform that uses photo capture and other metadata to generate first repair estimates. This quarter, we also announced the first partners and marketplace apps for InsuranceNow customers. And one of the first to join is Cloverleaf. Cloverleaf accelerates the insurance process by extracting detailed policy and claim data from InsuranceNow and loading it into a pre-built reporting and analytics business intelligence solution. Finally, it's gratifying to see all of our hard work continue to be recognized by industry analysts. In the second quarter, Cellent gave Guidewire three of four excellent awards in its policy administration systems report for EMEA. Policy Center won for its breadth of functionality, customer base, and depth of service categories. Guidewire was also named best in class by IT Group in its 2020 US P&C Core Systems Report for vendor stability, client strength, client service, and product features. As we enter the second half of the year, both the progress we've made to date and the growing customer enthusiasm give us increasing confidence in our strategic direction and our ability to execute. In May, we will build on this momentum by releasing Cortina, the third release in our new Guidewire Cloud Platform six-month release cycle. And we plan to run a connections event to coincide with that release. This virtual event will be a great opportunity for you to hear more about our progress and to hear directly from our customers. Now I'll turn the call over to Jeff for more details on our financial results and our outlook for Q3 and the rest of the year. Jeff?