Guidewire Software, Inc.

Greetings and welcome to the Guidewire fourth quarter of fiscal 2025 financial results conference call. As a reminder, this call is being recorded and will be posted on our investor relations page later today. I would now like to turn the call over to Alex Hughes, Vice President of Investor Relations. Thank you, Alex. You may begin.

Thank you, Grace. Hello, everyone. With me today is Mike Rosenbaum, Chief Executive Officer, John Mullen, President, and Jeff Cooper, Chief Financial Officer. 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 in the investor relations section of our website. Today's call is being recorded and a replay will be available following its conclusion. Statements today include forward-looking ones regarding our financial results, products, customer demand, operations, the impact of local, national, and geopolitical events 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 in other documents we file with the SEC, including our annual report and quarterly reports on Forms 10-K and 10-Q for information on risks, uncertainties, and assumptions that may cause actual results to differ materially. We also will refer to certain non-GAAP financial measures to provide additional information to investors. All commentary on margins, profitability, and expenses are on a non-GAAP basis unless stated otherwise. A reconciliation of non-gap to gap measures is provided in our press release. Reconciliation 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.

Thanks, Alex. Good afternoon, everyone, and thanks for joining us today. To begin, I want to take a moment to acknowledge and congratulate the entire Guidewire team across every function of our company on a truly outstanding year. We've all worked tirelessly to build a cloud platform that serves the P&C industry. We have engaged with customers and prospects, often for multiple years, to listen to feedback and help connect their imperatives and aspirations to our product capabilities. to create an ecosystem of certified professionals capable of successfully modernizing the core systems that power our industry and help our customers and partners realize the benefits of moving to our cloud-based model. All this hard work is paying off for customers, partners, and the industry overall. It has also yielded tremendous financial results this year, with both ARR and fully ramped ARR growth rates accelerating. ARR in fiscal 2025 grew 19% and fully ramped ARR grew 22% on a constant currency basis. We emphatically surpassed the $1 billion ARR milestone and collectively feel great about the future potential in the business. Before I hand it over to John, I just want to summarize my key takeaways from the quarter and fiscal year and why I think we're well positioned to continue building on our current momentum. First, demand for Guidewire Cloud Platform is strong and continues to grow. Q4 was a record quarter, driven by deal volume, deal size, and a milestone win for our company. Liberty Mutual, a major tier one insurer, chose to migrate their on-premise claim center instance to the cloud and also made a 10-year commitment to Guidewire to adopt Policy Center on our Guidewire Cloud Platform. This is one of the most strategic partnerships in our history. Everything we have been talking about in prior quarters about platform maturity, referenceability, and flexibility really played out to drive this win. and the overall results this quarter. Second, our pipeline entering fiscal 2026 remains very healthy. This durable demand environment is being driven by the success and referenceability of our cloud customers, which continues to generate great engagement and conversations with insurers of all sizes across all worldwide regions. Third, cloud margins are improving ahead of schedule. Guidewire Cloud Platform continues to scale very well, reflected in subscription and support's gross margins finishing the year at 70%. Jeff will talk more about this, but I'll just say that this increases our confidence that we can run a best-in-class cloud service and continue to grow into our target profile. But as proud as we are about our financial performance, it's important to recognize that what really drives us is delivering value and innovation to the PNC insurance industry. While there's still a lot of important work ahead in continuing the cloud transformation for our customers and the industry as a whole, I'm increasingly energized by data-driven analytics and AI-focused applications that will truly deliver on the modernization potential we see. Our performance over the last few quarters has allowed us to begin to invest more in this incremental potential we see in the industry. Our acquisition of Quanty is a great example of this, where we believe we can modernize pricing operations and product management across the industry, and as a result, help insurers grow. We also see tremendous potential with our industry intelligence offering, delivering predictive models in claims operations that will help drive down loss and expense ratios for our customers. We see opportunity in underwriting and intelligent ingestion of documents and data that will power a step change in commercial underwriting efficiency. The successful transformation of our company to cloud puts us in a very unique strategic position. especially when you consider the possibilities for generative AI in our industry. Our cloud platform, cloud install base, ecosystem, and collective expertise and experience provides the general industry and line of business context needed to unlock the potential in large language models and generative AI. by combining mission critical core systems of record with cloud native services and modern APIs, we're in a position to focus directly and incrementally on these new applications that I think will genuinely improve the industry. We are excited to share more about this vision at our Connections User Conference in Las Vegas in October, which will include a session specifically for financial analysts and our investor community. And with that, I'll hand it over to John.