Guidewire Reports Solid Results; Demand Is Steady and Guidance Is in Line; Maintaining FVE at $95

Wide-moat Guidewire once again reported solid results with upside to both revenue and non-GAAP operating profits relative to guidance for its first quarter. Guidance for the second quarter was in line with our thinking on both measures as well. Management noted the demand environment remains steady and that the company began buying back shares under its new repurchase authorization. Considering these factors, we made a few modest adjustments to our model and are thus maintaining our fair value estimate of $95 per share. Like for most of our coverage, we view the stock as attractive for long-term investors. We continue to see Guidewire as the primary winner as the property-casualty, or P&C, insurance industry continues to modernize and see consistent momentum in Tier 1 insurers selecting the platform.