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Guidewire Software (GWRE) |
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WIKI ANALYSIS
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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs: Globe Specialty Metals • LogMeIn • Invesco Mortgage Capital • Medidata • Chemspec |
Guidewire Software (NYSE:GWRE) is a software provider to the property and causality insurance industry. The software allows insurers to maintain records on claims, billing, underwritings, and other key functions. The functionality is web based and can be deployed either on the client's proprietary servers or on the cloud. The software also allows the users to customize the software to fit the company's workflows.[1]
Business Overview
For the full year ended in July 2011, Guidewire reported a total revenue of $172M. This generated a net income of $36M. In 2010, the company's total revenue was $145M and a net income of $16M. [2]
New Updates
The company's initial public offering of stock on the NYSE occurred on January 24, 2012. The company offered 8.9M shares each for $13. This was above the $10-$12 initial price range. The deal raised a total of $115M. The lead mangers of the deal were J P Morgan Chase (JPM), Deutsche Bank AG (DB), and Citi.[3]
Trends & Forces
High Sales and Marketing expense
Guidewire spends a relatively large amount of its sales and marketing in order to generate revenue in the form of subscriptions. If the sales cycle begins to lengthen as the company grows or if low cost competitors enter the market, Guidewire's margins may become strained. [4]
- ↑ GWRE S-1/A 2012 PROSPECTUS SUMMARY "Overview" pp. 1-2
- ↑ GWRE S-1/A 2012 PROSPECTUS SUMMARY "Summary Consolidated Financial Data" pp. 8
- ↑ Renaissance Capital - IPO Home "Guidewire Software prices upsized IPO at $13, above the range" 24 Jan 2012
- ↑ Seeking Alpha "Guidewire Software: Insurnace Industry Software" 2 Feb 2012
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