Guidewire Software Inc (GWRE) 2023 Q3 法說會逐字稿

Greetings, and welcome to the Guidewire Third Quarter Fiscal 2023 Financial Results Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 Guidewire 2023 財年第三季度財務業績電話會議。 （操作員說明）提醒一下，正在錄製此會議。

It is now my pleasure to introduce your host, Alex Hughes, Vice President of Investor Relations. Thank you. Mr. Hughes, you may begin.

現在我很高興向您介紹主持人，投資者關係副總裁 Alex Hughes。謝謝。休斯先生，您可以開始了。

Thanks, Kamal. I'm Alex Hughes, Vice President of Investor Relations. With me today is Mike Rosenbaum, Chief Executive Officer; and Jeff Cooper, 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.

謝謝，卡馬爾。我是投資者關係副總裁 Alex Hughes。今天和我在一起的是首席執行官邁克·羅森鮑姆 (Mike Rosenbaum)；和首席財務官 Jeff Cooper。我們今天發布的新聞稿以及我們提交給美國證券交易委員會的相關 8-K 表格中可以找到我們結果的完整披露，兩者都可以在我們網站的投資者關係部分找到。今天的通話正在錄製中，通話結束後將提供重播。

Statements made on this call include forward-looking ones regarding our financial results, products, customer demand, operations, 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.

在此次電話會議上發表的聲明包括關於我們的財務業績、產品、客戶需求、運營、地方、國家和地緣政治事件對我們業務的影響以及其他事項的前瞻性聲明。這些陳述受風險、不確定性和假設的影響，並且基於管理層截至今天的當前預期，不應被視為代表我們在任何後續日期的觀點。

Please refer to the press release and the risk factors and documents we file with the SEC, including our most recent annual report on Form 10-K and our quarterly reports on Form 10-Q filed and 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.

請參閱新聞稿和我們向美國證券交易委員會提交的風險因素和文件，包括我們最近向美國證券交易委員會提交的 10-K 表格年度報告和我們向美國證券交易委員會提交和將要向美國證券交易委員會提交的季度報告，以獲取有關風險的信息、不確定性和假設可能導致實際結果與此類聲明中的結果存在重大差異。

We will also 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-GAAP to GAAP measures is provided in our press release. Reconciliations and additional data are also posted in the supplemental on our IR website.

我們還將參考某些非 GAAP 財務措施，以向投資者提供更多信息。除非另有說明，否則所有關於利潤率、盈利能力和費用的評論均基於非公認會計原則。我們的新聞稿中提供了非 GAAP 措施與 GAAP 措施的對賬。我們的 IR 網站的補充資料中還發布了對賬和其他數據。

And with that, I'll now turn the call over to Mike.

有了這個，我現在把電話轉給邁克。

Thank you, Alex. Good afternoon, and thanks for joining us today. We had a strong third quarter, highlighted by sustained demand for InsuranceSuite Cloud and ARR and profitability, both exceeding guidance. We were pleased with overall software revenue led by 34% subscription revenue growth. However, services revenue was below expectations, primarily due to the timing of revenue from a few complex engagements, which we will address later in the call.

謝謝你，亞歷克斯。下午好，感謝您今天加入我們。我們第三季度表現強勁，突出表現在對 InsuranceSuite Cloud 和 ARR 以及盈利能力的持續需求，均超出預期。我們對 34% 的訂閱收入增長帶動的整體軟件收入感到滿意。但是，服務收入低於預期，這主要是由於一些複雜業務的收入時間安排，我們將在稍後的電話會議中解決。

We were thrilled to see continued improvement in subscription and support gross margins, which more than offset the services shortfall. Our cloud gross margin trajectory drove operating income outperformance and gives us confidence to raise our full year outlook for operating income.

我們很高興看到訂閱和支持毛利率持續改善，這足以抵消服務的不足。我們的雲毛利率軌跡推動營業收入表現出色，並讓我們有信心提高全年營業收入預期。

A few highlights of the quarter relating to our main corporate objectives were that we closed 8 cloud deals and sales momentum remained solid ahead of our seasonally strong fourth quarter. Cloud deployments were also strong with 8 go-lives in the quarter across both commercial and personal lines, and we continue to drive improved cloud efficiency with subscription and support gross margins, finishing 5 points above expectations.

本季度與我們的主要企業目標相關的幾個亮點是我們完成了 8 筆雲交易，並且在季節性強勁的第四季度之前銷售勢頭依然強勁。雲部署也很強勁，本季度在商業和個人領域有 8 個上線，我們繼續通過訂閱和支持毛利率推動提高雲效率，比預期高出 5 個百分點。

Before I go into more detail, let me just make a couple of comments about the P&C insurance industry. To serve this industry and the core system use case well requires a platform that reliably and securely addresses and ensures complex business requirements while also providing for greater agility and innovation.

在我詳細介紹之前，讓我先對財產保險行業發表一些評論。為了很好地服務於這個行業和核心系統用例，需要一個平台能夠可靠、安全地解決和確保複雜的業務需求，同時提供更大的靈活性和創新。

Sales cycles and deployment projects are lengthy, complex and sometimes arduous. But when we win a customer and we successfully deploy a customer in production, we establish a durable relationship with significant lifetime value.

銷售週期和部署項目冗長、複雜，有時甚至是艱鉅的。但是，當我們贏得客戶並在生產中成功部署客戶時，我們就建立了具有重要生命週期價值的持久關係。

I believe our hard work demonstrated execution with Guidewire Cloud Platform and the growth of our ecosystem have clearly established us as the cloud leader in our market and have positioned us well to serve the top insurance carriers in the world. From this position, we will continue to expand the breadth and depth of our solutions and ecosystem to help insurers drive innovation and improve decisions at scale.

我相信我們的辛勤工作證明了 Guidewire 雲平台的執行力和我們生態系統的發展已經明確確立了我們在市場上的雲領導者地位，並使我們能夠很好地為世界頂級保險公司提供服務。從這一立場出發，我們將繼續擴大我們解決方案和生態系統的廣度和深度，以幫助保險公司推動創新並大規模改進決策。

The second point I would like to make is about the macroeconomic environment and its impact on our P&C customers. The industry is generally resilient to economic cycles, but it is not immune. The inflation-driven increase in claims expense has had an impact on the profitability of many insurance companies and is causing scrutiny on near-term investments and budgets.

我想說的第二點是關於宏觀經濟環境及其對我們財產險客戶的影響。該行業通常對經濟周期具有彈性，但也不能倖免。通脹驅動的理賠費用增加對許多保險公司的盈利能力產生了影響，並引發了對近期投資和預算的審查。

Given this backdrop, we are pleased to see our momentum on strategic deals and projects continue to progress, and we remain confident in our sales outlook. Our industry is adept at managing market cycles, and this cycle has the undercurrent of the ever-increasing need for innovation and agility in the market, which strengthens our strategic positioning with customers.

在此背景下，我們很高興看到我們在戰略交易和項目方面的勢頭繼續取得進展，我們對我們的銷售前景仍然充滿信心。我們的行業擅長管理市場週期，這個週期暗流湧動著市場對創新和敏捷性不斷增長的需求，這加強了我們與客戶的戰略定位。

The value of being on our platform is increasingly clear as carriers navigate the current cycle. So while I'd say we are navigating through this environment well, it is appropriate to acknowledge that expense pressures are present.

隨著運營商駕馭當前週期，使用我們平台的價值越來越明顯。因此，雖然我會說我們在這種環境中航行得很好，但承認存在費用壓力是適當的。

With that said, let me turn to discussing our Q3 results in a little more detail before handing it over to Jeff to cover the financials. As I said earlier, it was a strong quarter with 8 cloud deals, 7 of which were for InsuranceSuite. In addition to insurers seeking to modernize legacy mainframe systems, we are starting to see an increased interest in replacing previously modernized on-prem systems, which is a very positive market development for us and a great validation of the investment we've made in the Guidewire Cloud platform.

話雖如此，讓我轉而更詳細地討論我們的第三季度業績，然後再交給傑夫來討論財務狀況。正如我之前所說，這是一個強勁的季度，有 8 筆雲交易，其中 7 筆是針對 InsuranceSuite 的。除了尋求對遺留大型機系統進行現代化改造的保險公司外，我們開始看到人們越來越有興趣更換以前現代化的本地系統，這對我們來說是一個非常積極的市場發展，也是對我們在導絲雲平台。

Deal volume in Q3 was well balanced with 3 new logos, 3 migrations and 2 expansions. So first, let me walk through our new customer wins. Texas Farm Bureau, a Tier 2 insurer headquartered in Waco, Texas, selected full InsuranceSuite Cloud to modernize their existing portfolio of legacy and on-prem core systems. We look forward to helping them achieve improved system performance and operational excellence, staying current on functional and technical capabilities via Guidewire Cloud updates, taking advantage of Guidewire's extensive marketplace offerings and improving agent and customer experiences.

第三季度的交易量與 3 個新徽標、3 個遷移和 2 個擴展保持平衡。首先，讓我介紹一下我們贏得的新客戶。 Texas Farm Bureau 是一家總部位於德克薩斯州韋科的二級保險公司，它選擇了完整的 InsuranceSuite Cloud 來對其現有的遺留和本地核心系統組合進行現代化改造。我們期待幫助他們實現更高的系統性能和卓越運營，通過 Guidewire 雲更新保持最新的功能和技術能力，利用 Guidewire 廣泛的市場產品並改善代理和客戶體驗。

We were also fortunate to welcome a rapidly up-and-coming Tier 3 carrier to the Guidewire community. This commercial insurer selected Guidewire as their long-term partner and will use InsuranceSuite Cloud to retire legacy systems and transform core operations across policy, billing, claims, digital and data.

我們也很幸運地迎來了 Guidewire 社區迅速崛起的第 3 級承運人。這家商業保險公司選擇 Guidewire 作為他們的長期合作夥伴，並將使用 InsuranceSuite Cloud 淘汰遺留系統並轉變政策、計費、索賠、數字和數據的核心運營。

Predictive Analytics was a key differentiator in this hard fought, competitive deal, and it represents a key mid-market win for us as this progressive carrier has substantial growth aspirations. And the insurance company of Prince Edward Island, a growing Canadian property and casualty carrier selected Guidewire Cloud platform to expand their product line and streamline operations so that they can efficiently and effectively support growth in commercial markets across Canada.

Predictive Analytics 是這項艱苦競爭的交易的關鍵差異化因素，它代表了我們在中端市場的關鍵勝利，因為這家先進的運營商具有巨大的增長願望。愛德華王子島的保險公司是一家成長中的加拿大財產和意外傷害保險公司，它選擇了 Guidewire Cloud 平台來擴展其產品線並簡化運營，以便他們能夠高效、有效地支持加拿大商業市場的增長。

Turning to cloud migrations. We saw Country Mutual, a Tier 2 carrier focused on personal and commercial lines across 19 states elected to upgrade their on-prem claim center system to the cloud, and they also expanded their Guidewire footprint, selecting PolicyCenter Cloud for its commercial and agricultural lines business.

轉向雲遷移。我們看到 Country Mutual 是一家專注於 19 個州的個人和商業線路的二級運營商，他們選擇將其本地索賠中心系統升級到雲，他們還擴大了 Guidewire 的足跡，選擇 PolicyCenter Cloud 用於其商業和農業線路業務.

A Tier 2 provider of reinsurance and insurance will migrate the PolicyCenter on Guidewire Cloud platform and expand to additional lines. Advanced product designer capability within PolicyCenter Cloud was a key differentiator to increase agility and support their growth strategy.

二級再保險和保險提供商將 PolicyCenter 遷移到 Guidewire Cloud 平台並擴展到其他線路。 PolicyCenter Cloud 中的高級產品設計人員能力是提高敏捷性和支持其增長戰略的關鍵差異化因素。

And the homebuilding compensation fund, a provider of safety net insurance for homeowners in Australia who are faced with incomplete or defective building work will migrate to InsuranceSuite Cloud.

房屋建築補償基金是一家為面臨未完成或有缺陷的建築工程的澳大利亞房主提供安全網保險的提供商，它將遷移到 InsuranceSuite Cloud。

Finally, looking at expansions CNA, a top 12 commercial lines carrier based in Chicago expanded their investment in ClaimCenter cloud to support additional commercial lines and a Tier 4 insurer expanded their InsuranceNow investment to include additional lines. This brings the total number of wins for the Guidewire Cloud platform to 20 for the year.

最後，看看擴展 CNA，總部位於芝加哥的 12 大商業線路運營商擴大了對 ClaimCenter 雲的投資以支持更多商業線路，一家 4 級保險公司擴大了其 InsuranceNow 投資以包括更多線路。這使 Guidewire Cloud 平台今年的獲獎總數達到 20 場。

Over 70% of this total was with Tier 1 and 2 insurers, which I think really validates the approach we have taken to ensure we can support the most demanding customers in the world as well as provide a system suited to the success of the Tier 3 through 5 customers that make up a significant proportion of our customer base.

超過 70% 的總數是一級和二級保險公司，我認為這確實驗證了我們為確保我們能夠支持世界上最苛刻的客戶以及提供適合三級保險公司成功的系統而採取的方法通過占我們客戶群很大比例的 5 個客戶。

The improving maturity of our platform is also reflected in the increased cadence of cloud production go-lives. In Q3, we added another 8 cloud deployments, bringing the total number of customers live on Guidewire Cloud platform to nearly 40 with healthy activity in both personal and commercial lines.

我們平台成熟度的提高還體現在雲生產上線節奏的加快上。在第三季度，我們又增加了 8 個雲部署，使 Guidewire 雲平台上的客戶總數達到近 40 個，個人和商業線路都保持良好的活動。

In Personal lines, some of the deployments included Auto Club of Southern California, the largest member of the AAA Federation with 16 million members and to Guidewire customers since 2004, went live with InsuranceSuite on Guidewire Cloud Platform. In addition, a large insurer with over 2 million customers across the Nordics and performing 90,000 claims per year and 4,300 new policies per day went live with PolicyCenter, ClaimCenter and BillingCenter on GWCP.

在個人線路方面，一些部署包括南加州汽車俱樂部，它是 AAA 聯合會最大的成員，擁有 1600 萬會員，自 2004 年以來一直為 Guidewire 客戶提供服務，並在 Guidewire 雲平台上啟用了 InsuranceSuite。此外，一家在北歐擁有超過 200 萬客戶、每年處理 90,000 起索賠和每天處理 4,300 份新保單的大型保險公司在 GWCP 上啟用了 PolicyCenter、ClaimCenter 和 BillingCenter。

With respect to Commercial Lines, -- some of the deployments included a commercial trucking and specialty insurer based in South Carolina deployed PolicyCenter on GWCP, to drive scale, operational efficiencies and innovation for agents and customers, a provider of commercial lines to multiple industries across 20 states went live with ClaimCenter on Guidewire Cloud Platform to further reduce claims processing times and automate claims adjustments and costs.

關於商業線路，一些部署包括位於南卡羅來納州的一家商業貨運和專業保險公司在 GWCP 上部署了 PolicyCenter，以推動規模、運營效率和代理商和客戶的創新，這是一家跨多個行業的商業線路提供商20 個州在 Guidewire 雲平台上啟用了理賠中心，以進一步縮短理賠處理時間並自動化理賠​​調整和成本。

And an insurer of over 1.5 million Texas workers deployed PolicyCenter, ClaimCenter and BillingCenter on GWCP to further improve operational excellence and customer satisfaction. All of these deployments represent incredible work by our customers' project teams, our Guidewire service teams and our ecosystem partners. As I mentioned earlier, this is a community that is increasingly leading cloud deployments, and I'm pleased to see it continue to expand.

一家擁有超過 150 萬德克薩斯員工的保險公司在 GWCP 上部署了 PolicyCenter、ClaimCenter 和 BillingCenter，以進一步提高卓越運營和客戶滿意度。所有這些部署都代表了我們客戶的項目團隊、我們的 Guidewire 服務團隊和我們的生態系統合作夥伴的出色工作。正如我之前提到的，這是一個越來越引領雲部署的社區，我很高興看到它繼續擴大。

SIs now have over 22,000 Guidewire consultants as of the end of April, up 27% year-over-year. Moreover, the number of cloud certified consultants increased 67% year-over-year to approximately 7,300. These are important stats because a healthy partner ecosystem helps to drive customer success, but also because it is critical to providing ever-increasing predictability and cost efficiency to our customers and prospects.

截至 4 月底，SI 現在擁有超過 22,000 名 Guidewire 顧問，同比增長 27%。此外，雲認證顧問的數量同比增長 67% 至約 7,300 人。這些都是重要的統計數據，因為健康的合作夥伴生態系統有助於推動客戶成功，還因為它對於為我們的客戶和潛在客戶提供不斷提高的可預測性和成本效率至關重要。

We are committed to enabling SIs to serve increasingly as the prime integrator on cloud projects. This will inevitably lead to Guidewire services revenue growth slowing relative to the growth of the total services ecosystem and allows us to focus on a more scaled services model that drives expert services in coordination with the SIs and retains the scale required for delivery of new products and strategically important projects.

我們致力於使 SI 越來越多地成為雲項目的主要集成商。這將不可避免地導致 Guidewire 服務收入增長相對於整個服務生態系統的增長放緩，並使我們能夠專注於更大規模的服務模型，該模型推動與 SI 協調的專家服務，並保持交付新產品所需的規模和具有戰略意義的重要項目。

This approach will provide us with a more durable and profitable service model. The services revenue shortfall we saw in the quarter speaks to the importance of this. Earlier in our cloud journey, we took on complex fixed fee arrangements where we leveraged SIs as subcontractors. This was both to actually deliver the work but also to fuel the SI cloud ecosystem. For the past year and going forward, we are limiting subcontracting and fixed fee arrangements, and we are seeing DSIs step into the prime role on most cloud projects. As this portfolio of early projects are completed and the services margin burden associated with these early cloud customers will lessen.

這種方法將為我們提供更持久和盈利的服務模式。我們在本季度看到的服務收入不足說明了這一點的重要性。在我們的雲之旅的早期，我們採用了複雜的固定費用安排，我們利用 SI 作為分包商。這既是為了實際交付工作，也是為了推動 SI 雲生態系統。在過去一年和未來，我們限制分包和固定費用安排，我們看到 DSI 在大多數雲項目中扮演主要角色。隨著早期項目組合的完成，與這些早期雲客戶相關的服務利潤負擔將會減輕。

Turning to our solution partner ecosystem. We also continued to grow the number of partners on the Guidewire marketplace. This collection of integrated applications amplifies the total platform innovation for our customers and serves as a powerful differentiator for us. We now have 180 solution partners in our marketplace and we have added 6 new solution partners in areas such as providing more granular and accurate property data for better risk scoring and enabling greater workflow automation and speed.

轉向我們的解決方案合作夥伴生態系統。我們還繼續增加 Guidewire 市場上的合作夥伴數量。這種集成應用程序的集合為我們的客戶擴大了整個平台的創新，並成為我們強大的差異化因素。現在，我們的市場上有 180 個解決方案合作夥伴，我們在以下領域增加了 6 個新的解決方案合作夥伴，例如提供更精細和準確的財產數據以更好地進行風險評分，以及實現更高的工作流程自動化和速度。

We are building a powerful cloud platform where greater innovation will layer on over time and where customers can accept this innovation more easily and with less integration friction. An example of a recent strategic partnership showing good momentum on our platform is one with One Inc, where we are seeing strong interest from insurers to incorporate its technology to enable a more frictionless payment experience for their customers.

我們正在構建一個強大的雲平台，隨著時間的推移，更多的創新將層出不窮，客戶可以更輕鬆地接受這種創新，並且集成摩擦更少。最近在我們的平台上顯示出良好勢頭的戰略合作夥伴關係的一個例子是與 One Inc 的合作夥伴關係，我們看到保險公司對整合其技術以為其客戶提供更順暢的支付體驗的濃厚興趣。

I would also like to briefly discuss generative AI and large language models and their exciting potential for Guidewire and the insurance industry. First, and I think the most important consideration as it relates to Guidewire is that insurers begin to look at their systems and processes to evaluate if they are equipped to take advantage of this technology shift. They will realize that modernization is a key first step. We believe that insurers who have already modernized their core systems will be dramatically better positioned to take advantage of the potential this technology provides. Those who are still relying on legacy systems will be held back and will be reconsidering that approach, and I believe this could support efforts to justify modernization initiatives.

我還想簡要討論一下生成式人工智能和大型語言模型，以及它們對 Guidewire 和保險業的巨大潛力。首先，我認為與 Guidewire 相關的最重要的考慮因素是保險公司開始審視他們的系統和流程，以評估他們是否有能力利用這種技術轉變。他們將意識到現代化是關鍵的第一步。我們相信，已經實現核心系統現代化的保險公司將能夠更好地利用這項技術提供的潛力。那些仍然依賴遺留系統的人將會退縮，並將重新考慮這種方法，我相信這可以支持證明現代化舉措合理性的努力。

Second, Generative AI has the potential to make developers more productive, which in turn will drive more efficient implementation projects and improved product innovation. I think it's likely that in the course of 12 to 18 months, most developers internally and in our services organization and in our SI ecosystem will be able to leverage large language models to support software development and project execution.

其次，生成式人工智能有可能提高開發人員的工作效率，進而推動更高效的實施項目和改進產品創新。我認為在 12 到 18 個月的過程中，內部和我們的服務組織以及我們的 SI 生態系統中的大多數開發人員將能夠利用大型語言模型來支持軟件開發和項目執行。

Third, like a lot of software companies and many of the companies in our solution partner ecosystem, we are working on incorporating large language model-driven product enhancements into our cloud product suite that will enhance the value of the products we offer to our customers. Broad-based productivity gains should be a logical outcome of embracing generative AI, and we expect that our cloud-based product suite will be an enabler of this.

第三，與我們解決方案合作夥伴生態系統中的許多軟件公司和許多公司一樣，我們正在努力將大型語言模型驅動的產品增強功能整合到我們的雲產品套件中，這將提高我們為客戶提供的產品的價值。廣泛的生產力提升應該是採用生成 AI 的合乎邏輯的結果，我們希望我們基於雲的產品套件將成為這一目標的推動者。

Overall, generative AI has tremendous potential to have a positive impact on our mission, and we look forward to taking a leadership position in how the industry adopts generative AI in the months and years to come.

總體而言，生成式人工智能具有對我們的使命產生積極影響的巨大潛力，我們期待在未來數月和數年內在行業如何採用生成式人工智能方面發揮領導作用。

Finally, let me spend a minute on leadership in the organization. I was very happy to announce the addition of Michael How to the Guidewire team as Chief Product Officer. Michael is a long-time veteran as the insurance technology industry, having led product at Applied Systems for over a decade. He will lead product strategy and product marketing here at Guidewire.

最後，讓我花一點時間談談組織中的領導力。我很高興地宣布 Michael How 加入 Guidewire 團隊擔任首席產品官。 Michael 是保險技術行業的資深人士，曾在 Applied Systems 領導產品十多年。他將在 Guidewire 領導產品戰略和產品營銷。

We are now in a position to build on the tremendous progress Diego Devalle and the engineering team have made in establishing our cloud platform and InsuranceSuite product releases. Michael will help us increase and optimize our focus on product innovation and the alignment of our data and analytics solutions with our core. While Diego continues to lead platform growth, performance and scale, which is all foundational to everything else we do.

我們現在可以在 Diego Devalle 和工程團隊在建立我們的雲平台和 InsuranceSuite 產品版本方面取得的巨大進展的基礎上再接再厲。 Michael 將幫助我們加強和優化對產品創新的關注，以及使我們的數據和分析解決方案與我們的核心保持一致。 Diego 繼續引領平台增長、性能和規模，這是我們所做的一切的基礎。

With that, I'll turn it over to Jeff to discuss the financials.

有了這個，我會把它交給傑夫來討論財務問題。

Thanks, Mike. I want to highlight a few topics as I walk through the financial results in the quarter. First, as Mike noted, sales momentum continues to be strong. And notably, we are seeing more new customer wins and new modernization programs. We are also seeing some insurers looking to replace core systems put in place over the last decade or 2 as they evaluate their cloud strategies and want to ensure they have a partner that is investing to grow and innovate with them. This is an exciting development for us.

謝謝，邁克。在我瀏覽本季度的財務業績時，我想強調幾個主題。首先，正如 Mike 指出的那樣，銷售勢頭繼續強勁。值得注意的是，我們看到了更多的新客戶贏得和新的現代化計劃。我們還看到一些保險公司在評估其云戰略並希望確保他們有一個正在投資以與他們一起發展和創新的合作夥伴時，希望更換過去十年或兩年內部署的核心系統。這對我們來說是一個令人興奮的發展。

At the same time, we are seeing steeper ramps than last year, which means the initial ARR impact of new sales activity is lower in the first year, but fully ramped ARR is preserved. This, combined with the macro backdrop are the primary reasons healthy sales activity is not translating into a higher ARR outlook for the year.

與此同時，我們看到比去年更陡峭的增長，這意味著第一年新銷售活動的初始 ARR 影響較低，但完全增長的 ARR 得以保留。這一點，再加上宏觀背景，是健康的銷售活動沒有轉化為今年更高的 ARR 前景的主要原因。

Second, continued sales momentum, combined with better-than-planned execution on cost controls and efficiency initiatives are driving cloud margins ahead of our FY '23 expectations. Our subscription and support gross margin trajectory gives us increased confidence in the long-term earnings power of our operating model.

其次，持續的銷售勢頭，加上成本控制和效率計劃好於計劃的執行，正在推動雲利潤率超過我們 23 財年的預期。我們的訂閱和支持毛利率軌跡使我們對我們運營模式的長期盈利能力更有信心。

Third, in the services portion of our business, we are working through a number of very complex core system modernization programs. A handful of these are fixed bid arrangements where changes in the project plan can impact the timing of services revenue. A couple of programs had an adverse impact on services revenue in the quarter vis-a-vis our forecast by approximately $4 million.

第三，在我們業務的服務部分，我們正在開展一系列非常複雜的核心系統現代化計劃。其中少數是固定投標安排，其中項目計劃的變化會影響服務收入的時間安排。與我們的預測相比，幾個項目對本季度的服務收入產生了大約 400 萬美元的不利影響。

Finally, turning to cash flow. We are seeing slower collections than we expected in our model. Accounts receivable grew by $43 million over Q3 last year and over 60% of that incremental ARR is coming from payments outstanding for over 30 days. In the quarter, we also shifted our operating bank account from Silicon Valley Bank to Bank of America, which did have a brief disruption to our collections cadence, but this is now resolved.

最後，轉向現金流。我們發現收集速度比我們在模型中預期的要慢。應收賬款比去年第三季度增長了 4300 萬美元，其中超過 60% 的增量 ARR 來自超過 30 天的未付款項。在本季度，我們還將我們的運營銀行賬戶從矽谷銀行轉移到了美國銀行，這確實對我們的收款節奏造成了短暫的干擾，但現在已經解決了。

Given slower collections, combined with the fact that we have approximately $150 million in collections due in the last 5 days of our fiscal year, we've adjusted our cash flow expectations for the year. This adjustment to timing of collections has no impact on the long-term cash generation assumptions we have discussed with you all at our Analyst Day.

鑑於收款速度較慢，再加上我們在財政年度的最後 5 天有大約 1.5 億美元的收款到期，我們調整了今年的現金流量預期。這種對收款時間的調整不會影響我們在分析師日與大家討論的長期現金生成假設。

Now turning to the results for the quarter. Third quarter ARR ended at $722 million ahead of our expectations. This represents 17% year-over-year growth on a constant currency basis. Total revenue was $207.5 million. This finished below our outlook due to services revenue results. All product components of revenue were either better than or in line with our expectations.

現在轉向本季度的結果。第三季度 ARR 以 7.22 億美元結束，超出我們的預期。按固定匯率計算，這意味著同比增長 17%。總收入為 2.075 億美元。由於服務收入結果，這低於我們的預期。收入的所有產品組成部分都好於或符合我們的預期。

Cloud strength continues to be visible with subscription revenue -- within subscription revenue, which grew 34% year-over-year to $89.1 million. Subscription and support revenue was $107.5 million, up 24% year-over-year. License revenue was $50.5 million, down 6% year-over-year.

訂閱收入繼續體現雲的優勢——在訂閱收入中，訂閱收入同比增長 34% 至 8910 萬美元。訂閱和支持收入為 1.075 億美元，同比增長 24%。許可收入為 5050 萬美元，同比下降 6%。

Services revenue was $49.4 million, down 13% year-over-year. As I mentioned previously, we had 2 Guidewire lead programs where project replanning resulted in an adjustment to the time lines and as a result, an adjustment to the revenue recognition timing. This was an approximately $4 million impact when compared with our outlook last quarter.

服務收入為 4940 萬美元，同比下降 13%。正如我之前提到的，我們有 2 個 Guidewire 主導項目，項目重新規劃導致對時間表進行調整，從而調整了收入確認時間。與我們上個季度的展望相比，這產生了大約 400 萬美元的影響。

Additionally, there has been increased scrutiny on services statements of work that has caused some streamlining of scope or pushing more services work to lower-cost partners, which resulted in lower-than-expected billings in the quarter, and this accounted for approximately $2 million to $3 million.

此外，對服務工作說明書的審查越來越嚴格，這導致範圍精簡或將更多服務工作推給成本較低的合作夥伴，從​​而導致本季度的賬單低於預期，這約佔 200 萬美元到 300 萬美元。

Turning to profitability for the quarter, which we will discuss on a non-GAAP basis. Gross profit was $107.7 million. Overall gross margin was 52%. Subscription and support gross margin was 55% compared to 47% a year ago. We are thrilled with the progress we're making on subscription and support gross margin, which continues to track ahead of our expectations.

轉向本季度的盈利能力，我們將在非 GAAP 基礎上進行討論。毛利潤為 1.077 億美元。整體毛利率為52%。訂閱和支持毛利率為 55%，而一年前為 47%。我們對我們在訂閱和支持毛利率方面取得的進展感到興奮，這繼續超出我們的預期。

Services gross margin finished at negative 2% compared with positive 4% a year ago. We have been expecting positive margin in Q3, but revenue headwinds impacted margins in the quarter. We continue to be confident in our services strategy to return to profitability in the fourth quarter and beyond.

服務毛利率為負 2%，而一年前為正 4%。我們一直預計第三季度的利潤率為正，但收入逆風影響了本季度的利潤率。我們繼續對我們的服務戰略充滿信心，以在第四季度及以後恢復盈利。

Operating loss was $12.2 million, better than our expectations due to strong subscription and support gross profit and lower-than-expected operating costs. These factors more than offset the impact of services margin shortfall in the quarter.

由於強勁的訂閱和支持毛利潤以及低於預期的運營成本，運營虧損為 1220 萬美元，好於我們的預期。這些因素足以抵消本季度服務利潤率下降的影響。

Overall stock-based compensation was $35 million. Stock-based compensation expense was up 6% year-over-year in Q3 and up 3% year-over-year through the first 3 quarters of 2023. We ended the quarter with $807 million in cash, cash equivalents and investments. As of the end of Q3, the accelerated share repurchase program was settled in full with the delivery of an additional 648,000 shares of common stock, which resulted in total repurchases under the ASR of 3.2 million shares at an average purchase price of $61.93 per share. Also in Q3, we repurchased an additional 207,000 shares at an average price of $77.19 per share.

基於股票的整體薪酬為 3500 萬美元。基於股票的薪酬支出在第三季度同比增長 6%，到 ​​2023 年前三個季度同比增長 3%。本季度末，我們擁有 8.07 億美元的現金、現金等價物和投資。截至第三季度末，加速股票回購計劃已全部完成，額外交付了 648,000 股普通股，根據 ASR 以每股 61.93 美元的平均購買價格回購了 320 萬股股票。同樣在第三季度，我們以每股 77.19 美元的平均價格回購了額外的 207,000 股。

Turning to our outlook for the full fiscal year 2023. We are adjusting our ARR outlook to $745 million to $755 million. As I previously mentioned, we are seeing healthy sales activity and expect this to continue in Q4, but we are seeing steeper ramps this year. This results in less ARR in the first year of new sales arrangements. However, we are still preserving attractive fully ramped ARR terms in these arrangements. So while ARR growth this year is expected to be approximately 13% at the midpoint, I expect fully ramped ARR to grow at 14% to 15%. We will also provide more detail on fully ramped ARR at year-end as this is a metric we discuss on an annual basis.

轉向我們對 2023 年整個財政年度的展望。我們將 ARR 展望調整為 7.45 億美元至 7.55 億美元。正如我之前提到的，我們看到健康的銷售活動，並預計這種情況將在第四季度繼續，但今年我們看到更陡峭的斜坡。這導致新銷售安排的第一年 ARR 較少。然而，我們仍然在這些安排中保留有吸引力的完全傾斜的 ARR 條款。因此，雖然今年的 ARR 增長率預計在中點約為 13%，但我預計完全上升的 ARR 將增長 14% 至 15%。我們還將在年底提供有關全面提升 ARR 的更多詳細信息，因為這是我們每年討論的指標。

As a reminder, our ARR outlook assumes foreign currency exchange rates as of the end of the last fiscal year, and then we update exchange rates at year-end. Last year, the year-end exchange rate adjustments to ARR were negative $19 million. If exchange rates stay the same as current rates, then we would expect a negative $5 million adjustment at year-end largely driven by the dollar strengthening versus the Canadian dollar.

提醒一下，我們的 ARR 展望假設外幣匯率截至上一財年末，然後我們在年底更新匯率。去年，對 ARR 的年終匯率調整為負 1900 萬美元。如果匯率與當前匯率保持不變，那麼我們預計年底將出現 500 萬美元的負調整，這主要是由於美元兌加元走強。

With respect to revenue, we are increasing our expectations for subscription, subscription and support and license revenue. We are adjusting subscription revenue to approximately $349 million, a positive adjustment of $1 million. We are adjusting subscription and support revenue to approximately $426 million, a positive adjustment of $1 million, and we are adjusting license revenue to approximately $261 million, a positive adjustment of approximately $5 million to $6 million. We are lowering our services revenue expectations by $10 million to $12 million. As a result, our outlook for total revenue is $890 million to $900 million, a $4 million adjustment at the midpoint.

關於收入，我們提高了對訂閱、訂閱和支持以及許可收入的預期。我們將訂閱收入調整為約 3.49 億美元，即 100 萬美元的正調整。我們將訂閱和支持收入調整為約 4.26 億美元，正調整 100 萬美元，我們將許可收入調整為約 2.61 億美元，正調整約 500 萬至 600 萬美元。我們將服務收入預期下調了 1000 萬美元至 1200 萬美元。因此，我們對總收入的預期為 8.9 億美元至 9 億美元，中點調整為 400 萬美元。

Turning to margins and profitability, which we will discuss on a non-GAAP basis, we expect subscription and support gross margins to be between 54% and 55% for the year, an increase of 3 percentage points when compared to our outlook last quarter and 8 to 9 percentage points from the Q4 call. We expect services gross margins to be around breakeven for the year. This implies a Q4 improvement that assumes the successful completion of ongoing fixed bid arrangements. As a result, we now expect overall gross margins of approximately 54% for the year.

談到我們將在非 GAAP 基礎上討論的利潤率和盈利能力，我們預計今年的訂閱和支持毛利率將在 54% 至 55% 之間，與我們上季度的預期相比增加了 3 個百分點，比第四季度電話高出 8 到 9 個百分點。我們預計今年的服務毛利率將達到收支平衡。這意味著第 4 季度的改進假設成功完成了正在進行的固定投標安排。因此，我們現在預計今年的整體毛利率約為 54%。

With respect to operating income, we expect between a $4 million operating loss and a $6 million operating profit for the fiscal year. We expect stock-based compensation to be approximately $140 million, representing 2% growth year-over-year. Given this, combined with the impact of our accelerated share repurchase program and our active repurchase program, we expect fully diluted shares to decline by approximately 1 million shares this fiscal year.

關於營業收入，我們預計本財年的營業虧損為 400 萬美元，營業利潤為 600 萬美元。我們預計基於股票的薪酬約為 1.4 億美元，同比增長 2%。鑑於此，再加上我們加速股票回購計劃和積極回購計劃的影響，我們預計本財年完全攤薄的股票將減少約 100 萬股。

As mentioned above, we are adjusting our cash flow from operations expectations to between $10 million and $40 million. Finally, as we look ahead to fiscal year 2024, we feel it is prudent to wait until after our fourth quarter before discussing ARR growth expectations. With respect to profitability, we are committed to demonstrate non-GAAP operating margins of 6% or higher and GAAP operating margins of negative 10% or better. We will continue to monitor both GAAP and non-GAAP operating income metrics. But we expect to ultimately measure our success in hitting targets that capture the real cost of Guidewire and our shareholders associated with stock-based compensation.

如上所述，我們正在將運營預期的現金流調整到 1000 萬至 4000 萬美元之間。最後，展望 2024 財年，我們認為謹慎的做法是等到第四季度之後再討論 ARR 增長預期。關於盈利能力，我們致力於展示 6% 或更高的非 GAAP 營業利潤率和 10% 或更高的負 GAAP 營業利潤率。我們將繼續監控 GAAP 和非 GAAP 營業收入指標。但我們希望最終衡量我們在實現目標方面取得的成功，這些目標反映了 Guidewire 和我們與股票薪酬相關的股東的實際成本。

With that, let's open the call for questions.

有了這個，讓我們打開問題的電話。

(Operator Instructions) Our first question comes from Dylan Becker with William Blair.

（操作員說明）我們的第一個問題來自 Dylan Becker 和 William Blair。

I appreciate the question and certainly get the product versus services side here. Maybe, Mike, for you, I think you noted some of those existing on-prem customers seeing accelerated migration activity. I wonder how much of that is a function of kind of the updated garbage release here and that the shift to, I think, 3 product releases annually versus 2, maybe widening the functional gap kind of the on-prem capabilities versus the cloud.

我很欣賞這個問題，並且肯定會在此處了解產品與服務方面的問題。也許，邁克，對你來說，我想你注意到一些現有的本地客戶看到了加速的遷移活動。我想知道其中有多少是這裡更新的垃圾版本的功能，我認為每年發布 3 個產品版本而不是 2 個，這可能會擴大本地功能與雲之間的功能差距。

And from a go-live perspective now maybe having more of those customers that are -- that can validate that update versus upgrade kind of type of framework you guys have talked about?

從上線的角度來看，現在可能有更多這樣的客戶——可以驗證更新與升級你們討論過的那種框架類型？

Thanks for the question, Dylan. I appreciate the insight. It certainly helps. I'd say in addition to those I don't know, topics, which I'll discuss briefly. I think the most important thing, it's just our experience and our track record running these programs at scale going live over the special go lag weekends repeatedly now, something that we're getting better and better at. And so just building the overall confidence in the ecosystem, in the community of P&C customers. I think it is helping us.

謝謝你的問題，迪倫。我很欣賞這種洞察力。這當然有幫助。除了那些我不知道的話題之外，我還會說一些話題，我將簡要討論這些話題。我認為最重要的是，我們的經驗和我們運行這些程序的記錄在特殊的滯後周末反复上線，我們在這方面做得越來越好。因此，只需在 P&C 客戶社區中建立對生態系統的整體信心。我認為它正在幫助我們。

The shift to 3 releases a year, I think is also -- it's great and it helps. I think the most important thing is what you should read into that is more and more confidence that we have in that we can execute these updates seamlessly. Now we're still working through that with our cloud customer base and with the new customers. This is a different approach that this whole P&C ecosystem, the entirety of the way that this all operates throughout the world is changing, and we are changing it. But I think customers especially those that have been on the journey with us for a couple of years now and are seeing it and our experience in it are very excited about the potential that it offers.

轉向每年 3 次發布，我認為也是——這很棒而且很有幫助。我認為最重要的是你應該讀到的是我們越來越有信心我們可以無縫地執行這些更新。現在我們仍在與我們的雲客戶群和新客戶一起解決這個問題。這是一種不同的方法，整個 P&C 生態系統，這一切在世界範圍內運作的整個方式正在改變，而我們正在改變它。但我認為客戶，尤其是那些已經與我們一起旅行了幾年並且正在看到它以及我們在其中的經驗的客戶，對它提供的潛力感到非常興奮。

Just personally, I know I commented a little bit on generative AI. I am very much looking forward to the idea that we have production cloud customers where we can put these changes into updates and then get them shipped out to customers seamlessly, and they can hopefully just literally turn them on. It's just a very, very different operating model than Guidewire has been operating under, and the industry has been operating under for the last 20 years. And I think it is -- that is helping us drive the continued sales activity that we're seeing. So thanks for the question.

就個人而言，我知道我對生成 AI 發表了一些評論。我非常期待我們擁有生產雲客戶的想法，我們可以在其中將這些更改放入更新中，然後將它們無縫地發送給客戶，希望他們可以直接打開它們。這與 Guidewire 所採用的運營模式截然不同，而該行業在過去 20 年中一直採用這種模式。我認為這是 - 這正在幫助我們推動我們所看到的持續銷售活動。所以謝謝你的問題。

Yes. Makes total sense. And then I think you made a comment as well around kind of obviously some of the carrier pressures around elevated claims. Would think, again, core modernization can help address this, and there's a lot of optionality on the data side. But wondering what kind of role like maybe digital twins could play in the future evolution of insurance and real-time data connectivity to help carriers predict with a more holistic view, maybe risk analysis and then maybe even preventative risk mitigation.

是的。完全有道理。然後我想你也發表了評論，顯然是圍繞著索賠增加的一些運營商壓力。再次認為，核心現代化可以幫助解決這個問題，而且數據方面有很多選擇。但想知道數字孿生在保險和實時數據連接的未來發展中可能扮演什麼樣的角色，以幫助承運人以更全面的觀點進行預測，可能是風險分析，甚至可能是預防性風險緩解。

Yes. That's a deep strategic question, and I think it is top of mind as carriers think about modernization and getting to a core platform that provides sort of an agile ability to roll out new innovative products that take advantage of some of the connectivity and IoT like IoT-enabled characteristics that you're describing.

是的。這是一個深刻的戰略問題，我認為這是運營商考慮現代化和獲得核心平台時的首要考慮，該平台提供某種敏捷能力來推出利用某些連接性和物聯網等物聯網的創新產品-您正在描述的啟用特徵。

I'm not sure I'd go so far as to say those things would have prevented the cycle that we're in right now. I think inflation jumped up and caught lots of industries by surprise, and has this impact that just has to be worked through. It's just sort of a normal cycle. I guess, normal in the sense that if there is inflation, there will be a disconnect between you're feeling that -- you're feeling the impact of that inflation and claims versus being able to adjust premiums and readjust the policies that support -- to support the risk actually, in the replacement costs.

我不確定我是否會說那些事情會阻止我們現在所處的循環。我認為通貨膨脹率飆升並令許多行業措手不及，並且產生了必須克服的影響。這只是一種正常的循環。我想，從某種意義上說，如果存在通貨膨脹是正常的，那麼你所感受到的 - 你感受到通貨膨脹和索賠的影響與能夠調整保費和重新調整支持的政策 - - 在重置成本中實際支持風險。

But certainly, there is a lot of excitement in the overall industry about modernization in general and the ability for it to reposition insurance companies somewhat around providing risk mitigation services and actually just controlling the risk as opposed to sort of paying for things that break, actually using the industry and the relationship to prevent that risk, prevent that breakage, reduce the expense of mishaps and perils. And so that is an exciting part of what we do. And I think, Todd, to just this general idea of bringing agility to the core system equation to the data and analytics equation, which makes these models more possible. So I love the question and it's definitely part of the story and what we're selling to customers.

但可以肯定的是，整個行業對總體現代化以及它能夠在某種程度上圍繞提供風險緩解服務重新定位保險公司的能力以及實際上只是控制風險而不是為發生故障的事情買單的能力感到非常興奮，實際上利用行業和關係來防止這種風險，防止這種破壞，減少事故和危險的代價。因此，這是我們所做工作中令人興奮的部分。我認為，托德，就是將敏捷性引入核心系統方程式到數據和分析方程式的一般想法，這使得這些模型更有可能。所以我喜歡這個問題，它絕對是故事的一部分，也是我們向客戶銷售的東西。

Our next question is from Peter Heckmann with D.A. Davidson.

我們的下一個問題來自 D.A. 的 Peter Heckmann。戴維森。

With the ACO lives this quarter, can you talk about how many live modules you have? And what percentage of ARR is now either live or committed to migrate to the cloud.

隨著本季度的 ACO 直播，您能談談您有多少直播模塊嗎？現在有多少百分比的 ARR 是實時的或致力於遷移到雲中。

Say again, the last clause in your sentence, I missed it.

再說一遍，你這句話的最後一個從句，我漏了。

Sure, sure. So just -- and trying to think about what percentage of ARR is now either live or committed to migrate to the cloud? I mean, something in the range of 50%, 55%.

一定一定。那麼只是 - 並嘗試考慮現在有多少百分比的 ARR 是實時的或致力於遷移到雲端？我的意思是，在 50%、55% 的範圍內。

Okay. So let me -- let me pivot to Jeff in a second. I just want to say like there's a couple of things that are included in the statistics. We talk about the number of customers that are live. Within each customer, they're going to sometimes have one instance, but oftentimes, we'll have many instances. So when you dig into the actual number of instances of, say, claim center or policy center or policy center for a particular line of business, there might be and often is multiple instances that are live in production. And then each of those, depending on whether or not it's an established line of business or a new line of business for that carrier will carry with it a certain amount of DWP, right?

好的。所以讓我——讓我馬上轉向杰夫。我只想說統計數據中包含一些內容。我們談論的是現場客戶的數量。在每個客戶中，他們有時會有一個實例，但通常我們會有很多實例。因此，當您深入研究特定業務線的索賠中心或保單中心或保單中心的實際實例數量時，可能並且經常有多個實例在生產中運行。然後，根據它是該運營商的既定業務線還是新業務線，每一個都會帶來一定數量的 DWP，對嗎？

So very -- the biggest go-lives for us in terms of scale are when you have like a fully deployed claim center or a policy center, billing center implementation on-prem, and we moved that to our cloud. And then immediately, you have all that DWP operating on the cloud instance on the cloud on the production instance.

所以非常 - 就規模而言，對我們來說最大的上線是當你有一個完全部署的索賠中心或政策中心，計費中心在本地實施，我們將其轉移到我們的雲中。然後立即，您將在生產實例上的雲上的雲實例上運行所有 DWP。

In terms of factory, Jeff can give you a sense of this. Cloud ARR is now larger than noncloud ARR at Guidewire. And that has to do with the price point as much as it is the momentum in the count. But certainly, the predominance of the -- or the majority of the ARR at the company now is associated with cloud.

在 factory 方面，Jeff 可以給你一個感悟。在 Guidewire，雲 ARR 現在大於非雲 ARR。這與價格點有關，因為它是計數的勢頭。但可以肯定的是，公司現在的主導地位或大部分 ARR 都與雲相關。

And Pete, the way we measure cloud ARR is that once a customer commits to go into that path, we count them in our cloud ARR calculation. So as of the end of last year, we were just over 50% of our ARR was coming from cloud ARR. And our expectation that we said at Analyst Day is that we'd be in the 58% to 62% range of total ARR coming from cloud this fiscal year. And I think that's still in line with our overall expectations. But we'll update on that particular metric that you're in.

皮特，我們衡量雲 ARR 的方式是，一旦客戶承諾進入該路徑，我們就會將他們計入我們的雲 ARR 計算中。因此，截至去年年底，我們的 ARR 剛剛超過 50% 來自云 ARR。我們在分析師日表示的預期是，本財年我們將在來自云的總 ARR 的 58% 至 62% 範圍內。我認為這仍然符合我們的總體預期。但我們會更新您所在的特定指標。

Yes. I would just add, we obviously know this. We obviously track this very closely internally, like the percentage of that ARR that is live or is still in a project to go live, right? But we don't -- that's not in my script or in my head because it's not something we talk about publicly, but it's obviously something that we pay very, very close attention to. And look, the culture at the company, and we have a very, very good track record of this is that 100% of that will successfully get to production. That's the commitment we make. And I think as part of the brand promise that is Guidewire.

是的。我只想補充一點，我們顯然知道這一點。顯然，我們在內部非常密切地跟踪這一點，比如正在運行或仍在項目中運行的 ARR 的百分比，對吧？但我們沒有——這不在我的劇本或我的腦海中，因為這不是我們公開談論的事情，但顯然我們非常非常關注它。看看公司的文化，我們有一個非常非常好的記錄，那就是 100% 的產品將成功投入生產。這是我們做出的承諾。我認為 Guidewire 是品牌承諾的一部分。

Despite these projects being complicated and hard, we are standing shoulder to shoulder with these customers and partners and making sure 100% of that is eventually live in production. Sometimes takes longer than a year because the price is complicated, but it all does -- or at least the intention is and the commitment is culturally that we will get it all live.

儘管這些項目複雜而艱鉅，但我們與這些客戶和合作夥伴並肩作戰，並確保其中 100% 最終投入生產。有時需要超過一年的時間，因為價格很複雜，但它確實如此——或者至少我們的意圖是，並且在文化上承諾我們將實現所有這些。

All right. That makes sense. And then to your point on underwriting losses nationwide for insurance carriers, something like $30 billion of underwriting losses in the last 2 years. But won't that lead then to further price increases for premium that could potentially lead to a higher growth in DWP over the next couple of years?

好的。這就說得通了。然後關於保險公司在全國范圍內的承保損失，過去兩年大約有 300 億美元的承保損失。但這是否會導致保費價格進一步上漲，從而可能在未來幾年內導致 DWP 的更高增長？

Yes. That's the expectation. It should. The system went in balance is equal on both sides of that equation and the overall system can operate profitably. And over time, based on the variety of ways we contract for our core systems, that TWP will flow into Guidewire and complicated growth bands and barriers and thresholds that need to be crossed in order to trigger those increases. But generally, yes. This -- like I said, this is a bit of a headache, let's say, or maybe issue for us in the short term, working through this and causing, like I said in the script, a little bit of scrutiny around short-term expenditures.

是的。這就是期望。它應該。系統達到平衡，等式兩邊都相等，整個系統可以盈利。隨著時間的推移，基於我們為核心系統簽訂合同的各種方式，TWP 將流入 Guidewire 和復雜的增長帶以及需要跨越的障礙和閾值，以觸發這些增長。但一般來說，是的。這 - 就像我說的那樣，這有點讓人頭疼，或者可能是短期內對我們來說是個問題，解決這個問題並導致，就像我在劇本中所說的那樣，對短期進行一些審查開支。

But in the long run, the industry is equipped to deal with this. And I think Guidewire as a system providing innovation and agility facilitates carriers being better able to absorb this. And one of the reasons why we think sales activity continues to be solid heading into the fourth quarter.

但從長遠來看，該行業有能力應對這一問題。我認為 Guidewire 作為一個提供創新和敏捷性的系統，可以幫助運營商更好地吸收這一點。這也是我們認為進入第四季度銷售活動繼續保持穩定的原因之一。

Our next question is from Kevin Kumar with Goldman Sachs.

我們的下一個問題來自高盛的凱文庫馬爾。

I wanted to double click on the ramp deal activity. Jeff, can you help us frame the types of multiyear ramp deal structures you're closing? And maybe how that compares to prior years? And how much of a headwind is it in the initial year or years? And kind of how steep is that ramp compared to kind of maybe historical levels?

我想雙擊斜坡交易活動。傑夫，你能幫我們確定你要關閉的多年爬坡交易結構的類型嗎？也許這與往年相比如何？在最初的一年或幾年中，逆風有多大？與某種可能的歷史水平相比，這種斜坡有多陡峭？

Yes. It's a good question. And it's interesting because last Q4 we saw a little bit less ramp activity and a bit more kind of smaller starts that would grow in a more organic fashion. So a little bit surprised this year to see a bit higher ramp activity. And interestingly, we are also seeing our deal portfolio skew a bit more than we expected towards new modernization programs and new customer wins versus migrations.

是的。這是個好問題。這很有趣，因為在上個第四季度，我們看到斜坡活動有所減少，而更多的是較小的開始，這些開始將以更有機的方式增長。所以今年看到更高的斜坡活動有點驚訝。有趣的是，我們還看到我們的交易組合比我們預期的更傾向於新的現代化計劃和新客戶贏得與遷移。

And migration's always had fairly kind of steep ramp elements attached to them because we count a booking as the incremental ARR that's being added to Guidewire. And sometimes, they're already paying ARR and a term license fee, and it takes a little while to get up and running and live in the cloud. And so oftentimes, there's not a big uplift associated with ARR associated with migration.

而且遷移總是有相當陡峭的斜坡元素附加到他們身上，因為我們將預訂視為添加到 Guidewire 的增量 ARR。有時，他們已經支付了 ARR 和定期許可費，並且需要一些時間才能啟動並運行並在雲中生活。因此，通常情況下，與遷移相關的 ARR 並沒有太大的提升。

So seeing higher ramps this year is both a little bit of an interesting fact pattern, but a positive fact pattern. It means that customers and prospects are willing to make big multiyear commitments to Guidewire and this path with Guidewire. So we are seeing a little bit -- we used to raise steeper ramps, which means kind of the starting point to the endpoint that the growth is bigger in those committed ramps than what we saw the prior year. And the prior year was notably a little bit shallower in terms of the overall all ramp activities. We saw some smaller starts rather than big commitments.

因此，今年看到更高的增長既是一個有趣的事實模式，也是一個積極的事實模式。這意味著客戶和潛在客戶願意為 Guidewire 和 Guidewire 的這條道路做出多年的重大承諾。所以我們看到了一點——我們過去常常提高更陡峭的坡道，這意味著這些承諾坡道的增長比我們去年看到的更大。就所有坡道活動的整體而言，前一年明顯有點淺。我們看到了一些小的開始而不是大的承諾。

So it's a mix. It's -- I was a little bit surprised to see that. But in general, we are pleased to see especially new customer wins and even some competitive displacements, which is very exciting for us to see, and we're seeing healthy fully ramped ARR events. But I do think some of the near-term cost-conscious pressures that are existing in the insurer installed base is having a little bit of impact on kind of their appetite to sign up for new spend over the first year or 2. But we're certainly capturing an attractive fully ramped ARR.

所以這是一個混合。這是——看到這一點我有點驚訝。但總的來說，我們很高興看到特別是新客戶的獲勝，甚至是一些競爭性的取代，這對我們來說是非常令人興奮的，而且我們正在看到健康的完全上升的 ARR 事件。但我確實認為，保險公司安裝基礎中存在的一些近期成本意識壓力正在對他們在第一年或第二年簽署新支出的興趣產生一些影響。但我們'我們肯定會捕捉到一個有吸引力的完全傾斜的 ARR。

That's helpful context. And then maybe just on the subscription and support gross margin. Obviously, a nice outperformance there, higher than the guide you gave. Is that just a function of kind of continued cost discipline anything else you'd call out there? And then how are you feeling about cloud infrastructure investments and the ability to reach $1 billion in ARR with minimal kind of incremental costs?

這是有用的上下文。然後可能只是訂閱和支持毛利率。顯然，那裡的表現很好，比你給出的指南還要好。這只是一種持續成本紀律的功能嗎？那麼您對雲基礎設施投資以及以最少的增量成本達到 10 億美元的 ARR 的能力有何看法？

Yes. So we are very pleased with the efficiency gains we're seeing in the platform. The engineering team has done a lot of work to help us manage our overall cloud infrastructure costs. And so that is continuing to exceed our expectations, which is a big positive. Another area of cloud COGS at this point in the cloud journey is cloud updates and upgrade costs. And we did see a little bit of those costs push out. So when I think about the outperformance in the quarter, if you think about 5 percentage points, about 2.5 percentage points was related to just core efficiency gains vis-a-vis our expectations, and the other was a little bit of this work getting pushed out.

是的。因此，我們對在平台中看到的效率提升感到非常滿意。工程團隊做了大量工作來幫助我們管理整體雲基礎設施成本。因此，這繼續超出我們的預期，這是一個很大的積極因素。在雲之旅的這個階段，雲 COGS 的另一個方面是雲更新和升級成本。我們確實看到了其中的一些成本。因此，當我考慮本季度的出色表現時，如果你考慮 5 個百分點，大約 2.5 個百分點與我們預期的核心效率提升有關，另一個是這項工作的一點點推動出去。

We tend to model this work very conservatively. So we're not surprised by a lot of work coming into a quarter that was unforecasted. But that was the primary drivers of the outperformance in the quarter.

我們傾向於非常保守地為這項工作建模。因此，我們對進入一個無法預料的季度的大量工作並不感到驚訝。但這是本季度表現出色的主要驅動因素。

Our next question is from Ken Wong with Oppenheimer.

我們的下一個問題來自 Ken Wong 和 Oppenheimer。

Maybe the first one for Mike. Just in terms of the scrutiny of IT budgets, I guess, how has that materialized for Guidewire versus just broad IT spend pullback? And if that has hit sales conversations, is that more on the edges of your products? Or is that actually impacting core systems? I would love to get a sense for kind of how that may or may not materialize.

也許是邁克的第一個。就 IT 預算的審查而言，我想，Guidewire 與廣泛的 IT 支出回落相比如何實現？如果這對銷售對話產生了影響，那麼它是否更多地出現在您的產品邊緣？或者這實際上影響了核心系統？我很想了解這可能會或可能不會實現的方式。

Yes. Okay. Thanks for the question. I would say -- I would say -- my sense is Guidewire is more immune to this than most, okay? I think people think about Guidewire investment in the Guidewire project very strategically. 5-year duration, 10-year duration is a very legitimate conversation 1 of which I had this quarter, that company is not thinking about as much the day-to-day, quarter-to-quarter cash flow as they are thinking about what are we doing for the next 10 years.

是的。好的。謝謝你的問題。我會說——我會說——我的感覺是 Guidewire 比大多數人更能抵抗這種情況，好嗎？我認為人們非常有戰略性地考慮 Guidewire 對 Guidewire 項目的投資。 5 年期、10 年期是一個非常合理的對話 1 我在這個季度進行過，該公司考慮的不是日常的、季度到季度的現金流，而是他們在考慮什麼未來 10 年我們在做什麼？

So in general, Guidewire's more immune to this than probably most IT spend. But it does exist, right? And so you bring it up -- I bring it up because it's like the ability for us to manufacture deals, the ability for us to accelerate things in a climate where the general man set is conservatism as it relates to budget, it just makes it a little bit harder.

所以總的來說，Guidewire 比大多數 IT 支出更能避免這種情況。但它確實存在，對吧？所以你提出來 - 我提出來是因為它就像我們製造交易的能力，我們在一般人認為保守主義的氣候中加速事情的能力，因為它與預算有關，它只是讓它成為現實有點難。

The things that were already in flight and the plans that were already in place are continuing to progress, and does give us confidence in the outlook we've provided for Q4. But it is a bit of a headwind, and it is coming up much more in the last few months than it has in the past. And so I thought it was worth mentioning.

已經在進行中的事情和已經到位的計劃正在繼續取得進展，並且確實讓我們對我們為第四季度提供的前景充滿信心。但這有點不利，而且在過去幾個月裡出現的次數比過去多得多。所以我認為值得一提。

That said, I do want to stress, and this was -- we touched on this in one of the earlier answers to 1 of the earlier questions, this is a cycle. There is an adjustment period that we believe the industry will process through. And then I think things will get a bit back to normal, and it will open up and the budgets will loosen a bit, and we'll be able to create a bit more acceleration even beyond what we've got right now. So hopefully, that helps you give you a sense of things.

也就是說，我確實想強調，這是 - 我們在對早期問題之一的早期回答之一中談到了這一點，這是一個週期。我們相信該行業將經歷一個調整期。然後我認為事情會恢復正常，它會開放，預算會有所放鬆，我們將能夠創造更多的加速，甚至超過我們現在所擁有的。希望這能幫助您了解事物。

Yes, super helpful. I really appreciate all the thoughtful color there. And then, Jeff, just wanted to maybe dig into the cash flow reduction. How much of that is maybe a byproduct of the lower top line, kind of trimming the ARR a little bit on the services side versus what was just pushed out because of timing, collection, things of that nature, which hopefully you guys can recapture in future quarters?

是的，超級有幫助。我真的很欣賞那裡所有深思熟慮的顏色。然後，傑夫，只是想深入研究現金流量的減少。其中有多少可能是收入較低的副產品，在服務方面稍微削減了 ARR，而不是因為時間安排、收集等性質的事情而被推出的內容，希望你們能重新獲得未來的宿舍？

Yes. The majority of it was just given the environment that we're seeing in some of the dynamics that Mike just talked to, putting a bit more conservatism into our collections assumptions vis-a-vis what's going to be billed and invoiced in Q4. So that is the big part of it.

是的。其中大部分只是考慮到我們在 Mike 剛剛談到的一些動態中看到的環境，相對於第四季度將要計費和開具發票的內容，我們的收款假設更加保守。這就是其中的重要部分。

We have the services -- the overall services billing also had an impact. But if you think about -- that's probably a pretty small percentage of the adjustment to cash flow. Most of it is just the timing of collections and making sure we build some more conservatism. We are seeing a bit more process and bureaucracy that insurers are putting in place before they make large vendor payments and we're having to jump through those hoops and certainly, the shift in our operating bank account in the quarter didn't help as we had to kind of go through a lot of revalidation to make sure that everything was in order.

我們有服務——整體服務計費也產生了影響。但如果你想想——這可能只佔現金流調整的很小一部分。其中大部分只是收藏的時機，並確保我們建立更多的保守主義。我們看到保險公司在向供應商大筆付款之前正在實施更多的流程和官僚主義，我們不得不跳過這些障礙，當然，本季度我們運營銀行賬戶的轉變並沒有幫助，因為我們必須經過大量的重新驗證，以確保一切都井井有條。

So that created a bit more process. That's behind us now. But as we look ahead, we just felt it was prudent to build more conservatism into our collections forecast.

所以這創造了更多的過程。現在已經過去了。但當我們展望未來時，我們只是覺得在我們的收藏預測中建立更多的保守主義是謹慎的。

Our next question is from Rishi Jaluria with RBC.

我們的下一個問題來自 RBC 的 Rishi Jaluria。

Wonderful. Mike, I wanted to go back to the generative AI theme. I'm really glad to hear kind of the way you're talking about it. And some of the transformational effects for Guidewire, I want to think about the impact on the industry itself, right? Not only does it force some of the peak drivers to modernize and kind of catch up and migrate to the cloud. But what's the potential for P&C insurers to actually change the way they do view the business and maybe even more importantly, the way that they interact with customers?

精彩的。邁克，我想回到生成人工智能主題。我真的很高興聽到你談論它的方式。 Guidewire 的一些轉型影響，我想考慮對行業本身的影響，對嗎？它不僅迫使一些高峰驅動程序實現現代化，並在一定程度上趕上並遷移到雲端。但是，P&C 保險公司真正改變他們看待業務的方式，甚至更重要的是，改變他們與客戶互動的方式的潛力有多大？

And what sort of impact do you think that can have on the overall spending environment as it pertains to budget for Guidewire? And then I've got a quick follow-up.

您認為這會對與 Guidewire 預算相關的整體支出環境產生什麼樣的影響？然後我有一個快速的跟進。

Yes. Thanks for the question. So I spoke recently at a Guidewire event and kind of talked about how you can think of these things on a spectrum sort of near term to long term and you can get a little bit wrapped up in how dramatically impactful it can be to systems like insurance in the long run. But I think you're making a bit of a mistake if you do that and missing out on the potential for us to just generally improve process efficiency and operational efficiency and all the little things that we do every day.

是的。謝謝你的問題。所以我最近在 Guidewire 活動上談到瞭如何從短期到長期的範圍內考慮這些事情，你可以稍微了解它對保險等系統的巨大影響從長遠來看。但我認為，如果你這樣做並且錯過了我們提高流程效率和運營效率以及我們每天做的所有小事的潛力，那你就犯了一個錯誤。

And I think there's -- it's not just Guidewire thinking this. There's plenty of industry analysts who are looking at this and looking at the insurance industry, and you just see some potential or maybe a lot of potential to better -- to operationalize these models and use them with human beings in the loop. Not to replace human beings, but to augment human beings and make people more productive in managing sales processes, managing customer service, managing claims, making sure that all of those processes are more and more efficient.

而且我認為 - 不僅僅是 Guidewire 這麼想。有很多行業分析師正在研究這個問題並研究保險業，你只是看到了一些潛力或者可能有很多潛力可以更好地實現這些模型並將它們與循環中的人類一起使用。不是要取代人類，而是要增強人類，使人們在管理銷售流程、管理客戶服務、管理索賠方面更有效率，確保所有這些流程越來越高效。

It's like hundreds and hundreds of little tiny details that can be managed more effectively through systems like Guidewire. I think that there is a very important story to be told and granted this stuff needs to be built and fleshed out and rolled out and proven, but it's exciting to see something with this much potential and very accessible.

這就像成百上千的小細節，可以通過 Guidewire 等系統更有效地管理。我認為有一個非常重要的故事要講述並承認這些東西需要構建、充實、推出和驗證，但看到具有如此巨大潛力且非常容易獲得的東西是令人興奮的。

The other thing I was saying to the audience there was that one of the things I really, really like about these generative AI and large language model solutions is they don't necessitate a replacement of a system like Guidewire. You can just augment what you're already using Guidewire for.

我對聽眾說的另一件事是，我非常非常喜歡這些生成式人工智能和大型語言模型解決方案的一件事是，它們不需要更換像 Guidewire 這樣的系統。您可以擴充您已經在使用 Guidewire 的目的。

Now I think if you're running a legacy mainframe system, it will be much more difficult for you to augment that system and that workflow with generative AI, and I think that, that might drive these transformations. But it's just like Guidewire with a cloud API. You can call out -- you can grab some information call out to a model and get an answer back and that helps the person who's on the phone with agents or a customer and it makes the process more efficient.

現在我認為，如果你正在運行一個遺留的大型機系統，你將很難用生成 AI 來增強該系統和該工作流，我認為，這可能會推動這些轉變。但它就像帶有云 API 的 Guidewire。你可以打電話——你可以抓取一些信息，打電話給一個模型，然後得到一個答复，這有助於與代理或客戶通電話的人，它使這個過程更有效率。

So I'm very excited about this. I think a lot of people in the industry are very excited about it. We're excited to, over the next few months, start to roll this out and start to think about how do we productize it. And I just talk for 5 whole minutes maybe, and I haven't even touched on the implementation side of it. As I said, I think that the developer productivity component of this technology is very, very exciting. And I also expect it will improve. We're not yet at the point where we can give you estimates for objective measures of the productivity improvements.

所以我對此感到非常興奮。我認為很多業內人士對此感到非常興奮。我們很高興在接下來的幾個月內開始推出它並開始考慮我們如何將其產品化。我可能只講了整整 5 分鐘，我什至沒有談到它的實施方面。正如我所說，我認為這項技術的開發人員生產力組件非常非常令人興奮。我也希望它會有所改善。我們還沒有達到可以為您提供生產力改進的客觀衡量指標的估計值。

But there's a lot of engineers who are super excited about this. And so hopefully, that gives you a little bit of color about where we are, how we're thinking about it and how we think it will have an impact on the industry.

但是有很多工程師對此非常興奮。因此，希望這能讓您對我們所處的位置、我們的想法以及我們認為它將如何對行業產生影響有一些了解。

Yes. Got it. That's really helpful. I appreciate all the thoughts there. And then I wanted to go back to some of the dynamics around ramped ARR. And maybe -- I know you talked about this kind of a little bit of a surprise seeing that versus the smaller lands with potential upside that we saw last year. But what's driving, in your opinion, that change in behavior? And maybe as we see some of those shallower lands or whatever you want to call it, the smaller lands from last year, as those kind of come up for renewal, should that be kind of a driver if you put it -- think about our models that might lead to a little bit of an uptick in ARR and potential ARR acceleration?

是的。知道了。這真的很有幫助。我很欣賞那裡的所有想法。然後我想回到圍繞 ARR 上升的一些動態。也許 - 我知道你談到了這種與我們去年看到的具有潛在上升空間的較小土地相比有點令人驚訝。但在您看來，是什麼推動了這種行為的改變？也許當我們看到一些較淺的土地或任何你想稱呼它的東西時，去年較小的土地，當這些土地出現更新時，如果你說的話，這應該是一種驅動力——想想我們的可能導致 ARR 和潛在 ARR 加速的模型？

Yes. I mean, as I said, I think it's an exciting pattern that insurers in this environment are tackling large strategic programs and making big commitments in investments with Guidewire. And we're seeing that in the total contract values that support these ramped agreements.

是的。我的意思是，正如我所說，我認為在這種環境下，保險公司正在處理大型戰略計劃並在 Guidewire 的投資中做出重大承諾，這是一種令人興奮的模式。我們在支持這些不斷增加的協議的總合同價值中看到了這一點。

In terms of the shift over last year, it was a bit interesting. Last year, we saw a bit slower starts kind of dipping their toe in the water type of dynamic. And there was a thought that maybe that would persist and that could have a pretty big impact on how we think about our model if that was the way that the industry chose to adopt and buy.

就去年的轉變而言，這有點有趣。去年，我們看到有點慢的開始有點像在水里試水。並且有一種想法可能會持續存在，並且如果這是行業選擇採用和購買的方式，這可能會對我們如何看待我們的模型產生相當大的影響。

I think it's a positive fact pattern that we're seeing some of these bigger commitments this fiscal year. But it is driving -- what -- the way we -- just to give you a glimpse into how we think about this is so we measure a booking. A booking for Guidewire is the average ARR that's delivered over a 5-year period. And then we have certain metrics that we look at internally such as what is the ratio between the Year 1 ARR to that average ARR over a 5-year period. And that ratio -- our model is quite sensitive to that ratio.

我認為這是一個積極的事實模式，我們在本財年看到了其中一些更大的承諾。但它正在推動 - 什麼 - 我們的方式 - 只是為了讓您了解我們如何看待這一點，所以我們衡量預訂。 Guidewire 的預訂是 5 年期間交付的平均 ARR。然後我們有一些我們在內部查看的指標，例如第 1 年 ARR 與 5 年期間平均 ARR 之間的比率是多少。這個比率——我們的模型對該比率非常敏感。

And so if you see that ratio go down a little bit. It means that there's -- and the bookings levels are the same. It means you're adding really attractive fully ramped ARR, but the Year 1 dynamics that are a little bit lower than what we had modeled. So it's just one of these multiple levers that we have to manage through, and we try to provide some insights into that.

因此，如果您看到該比率下降了一點。這意味著有——而且預訂水平是一樣的。這意味著您正在添加非常有吸引力的完全提升的 ARR，但第 1 年的動態比我們建模的要低一點。所以這只是我們必須管理的這些多重槓桿之一，我們試圖提供一些見解。

For a period of time, I thought fully ramped ARR may fade into the background of relevant metrics because if insurers are buying a bit smaller and growing in a more organic fashion then that metric would just be a little bit less relevant. But as we're executing through this year, we're seeing that metric outpace ARR growth once again, which is -- gives us confidence as we think about the long term but does create some dynamics that we have to manage through expectations.

有一段時間，我認為完全上升的 ARR 可能會淡出相關指標的背景，因為如果保險公司購買的規模較小，並以更有機的方式增長，那麼該指標的相關性就會降低一點。但隨著我們今年的執行，我們看到該指標再次超過 ARR 增長，這讓我們在考慮長期時充滿信心，但確實創造了一些我們必須通過預期來管理的動力。

What was the second -- was there another part of the question?

第二個是什麼——問題的另一部分是什麼？

No. You covered everything. Really appreciate guys.

不，你涵蓋了一切。真的很感謝你們。

Our next question is from Matt VanVliet with BTIG.

我們的下一個問題來自 BTIG 的 Matt VanVliet。

I guess just one more on sort of the higher mix of fully ramped ARR or fully ramped deals. How should we, I guess, think about that over the next couple of years of from both a backlog perspective on the implementation side and then related to that overall staffing needs for the services group, especially as you push more to SIs in general?

我想還有一個關於完全增加的 ARR 或完全增加的交易的更高組合。我想，在接下來的幾年中，我們應該如何從實施方面的積壓角度以及與服務組的整體人員配置需求相關的角度來考慮這一點，尤其是當您將更多的工作推向 SI 時？

Yes. And I think what I don't want to do is make this out to be a bigger deal than it is. I mean we saw ramped activity look more akin to what we saw 2 years ago. And coming out of last year, we adjusted our models a little bit to make those ramps a little bit shallower. So I don't want to overplay this, but it is a dynamic that we wanted to call out in the business.

是的。而且我認為我不想做的是把這件事弄得比實際情況更嚴重。我的意思是，我們看到的活躍活動看起來更類似於我們 2 年前看到的情況。從去年開始，我們對模型進行了一些調整，使這些坡道更淺一些。所以我不想誇大這一點，但這是我們想在業務中呼籲的一種動態。

And how it relates to the services engagement is pretty detached, right? So -- and what we're seeing in the services part of our business is a part of our longer-term strategy to shift more and more of this work to our -- to the partner community, and we had to go through a cycle of certifying and enabling the partners to lead these programs. And that's what we are starting to see more and more of today, which will allow us to build a more scaled and durable services organization in support of the broader ecosystem who will take the lead in managing these programs.

它與服務參與的關係是非常獨立的，對吧？所以 - 我們在業務的服務部分看到的是我們長期戰略的一部分，即將越來越多的這項工作轉移到我們 - 合作夥伴社區，我們必須經歷一個週期證明並使合作夥伴能夠領導這些計劃。這就是我們今天開始越來越多地看到的，這將使我們能夠建立一個規模更大、更持久的服務組織，以支持將帶頭管理這些項目的更廣泛的生態系統。

And I just want to say, I don't expect the manpower in our services organization to go down. I just think as the overall economy of Guidewire implementations to grow. More of that growth will flow to the SI partners, and it will flow to Guidewire. I think there's a very important role that our team plays in -- with respect to this. At these expert services that we can provide, especially around new product introductions and strategic projects, and there's just going to be some percentage of the prospect base. The potential customers that want to have Guidewire take a role in the implementation. And it's important for us to maintain that manpower.

我只想說，我不希望我們服務組織的人力減少。我只是認為隨著 Guidewire 實施的整體經濟增長。更多的增長將流向 SI 合作夥伴，並將流向 Guidewire。我認為我們的團隊在這方面發揮著非常重要的作用。在我們可以提供的這些專家服務中，特別是圍繞新產品介紹和戰略項目，並且只會有一定比例的潛在客戶群。希望 Guidewire 參與實施的潛在客戶。保持這種人力對我們來說很重要。

So I wouldn't be thinking that this is going to contract just that it will grow more slowly than the overall ecosystem as we shift to this more durable -- more leverage model.

因此，我不會認為隨著我們轉向這種更持久——更具槓桿作用的模式，它的增長速度將比整個生態系統的增長速度更慢。

Yes, makes sense. And then, I guess, on a few of the answers, you talked about a number of customers wanting to lean more into data and really the analytics behind a lot of that. And it sounds like more projects are maybe going live with those implemented originally. But curious on how that overall demand cycle is impacting kind of the upsell, cross-sell motion versus now just being included from the start because of the value perceived by the customers?

是的，有道理。然後，我猜，在一些答案中，你談到了一些客戶希望更多地了解數據以及其中很多背後的分析。聽起來更多的項目可能會與最初實施的項目一起上線。但好奇整個需求週期是如何影響追加銷售、交叉銷售運動的，而現在只是因為客戶感知的價值而從一開始就被包括在內？

Yes, it's a great question. I think we're doing a much better job sort of designing the product to be -- to work together, to be integrated from the beginning, to be pitched and sold and packaged and marketed and then the sales process described as one unified solution that can solve, of course, system modernization problem, but also deliver business benefits through predictive analytics.

是的，這是一個很好的問題。我認為我們在設計產品方面做得更好——一起工作，從一開始就集成，推銷、銷售、包裝和營銷，然後將銷售過程描述為一個統一的解決方案當然可以解決系統現代化問題，還可以通過預測分析帶來商業利益。

And so it's exciting to see very often the economic justification for the modernization is attached to efficiency gains that can be either significantly or partially produced with predictive analytics. There's been a lot of excitement for not just the predictive analytics, but also the sort of operational machinery for what I'd say, deploying the prediction into a user experience that actually causes end users to change their behaviors.

因此，令人興奮的是，經常看到現代化的經濟理由與效率的提高有關，而效率的提高可以通過預測分析顯著或部分產生。不僅預測分析令人興奮，而且我所說的那種操作機制，將預測部署到用戶體驗中，實際上會導致最終用戶改變他們的行為。

And I think the industry in general, and this is not just insurance, but sort of the industry overall, the world of IT is pretty good at making analytics and pretty good at making analytics predictions and not as good at activating those predictions and causing a business change.

而且我認為整個行業，這不僅僅是保險業，而是整個行業，IT 世界非常擅長進行分析，非常擅長進行分析預測，但不太擅長激活這些預測並導致業務變更。

And so a part of what we're producing here and what customers are excited about, is that we'll be able to take these algorithms and turn them into practical useful predictions that end users will be able to use to either make better decisions about underwriting risks or make better decisions about processing claims, and that's exciting. And it's a bigger and bigger part of the story and the reason that a customer makes the decision to go now with the Guidewire project.

因此，我們在這裡生產的部分產品以及客戶感到興奮的是，我們將能夠採用這些算法並將它們轉化為實際有用的預測，最終用戶將能夠使用這些預測來做出更好的決策承保風險或就處理索賠做出更好的決定，這令人興奮。這是故事中越來越重要的部分，也是客戶決定現在使用 Guidewire 項目的原因。

So that's exciting to see, and I hope it will continue to improve -- and we'll see, but my expectation is generative AI, large language model supported, capabilities augment that and kind of fit right into the same story I just told you about our predictive analytics capabilities.

所以這很令人興奮，我希望它會繼續改進——我們會看到，但我的期望是生成 AI，支持大型語言模型，功能增強了它，並且有點適合我剛才告訴你的同一個故事關於我們的預測分析能力。

Our next question is from Joe Vruwink with Robert W. Baird.

我們的下一個問題來自 Joe Vruwink 和 Robert W. Baird。

a little bit on the last topic since you brought up analytics. But just on that new logo win with the Tier 3 carrier, the mid-market does seem a bit more competitive of late. What are you finding to be the differentiator for Guidewire when you're winning in that segment or Tier 3 through 5 outside of Tier 1 through 2 is something like analytics catching on? Or would you maybe point to some broader themes there?

關於您提出分析後的最後一個主題。但就在與 Tier 3 運營商的新標誌勝利中，中端市場最近似乎確實更具競爭力。當您在該細分市場或第 1 至 2 層之外的第 3 至 5 層中獲勝時，您發現什麼是 Guidewire 的差異化因素，例如分析流行起來？或者您是否可以指出一些更廣泛的主題？

Yes, great question. I'll give you the themes. I think, number one, it's important that there is valuable that we bring a complete solution that is consistent across claims, policy billing, right? So I think the larger carriers probably have more horsepower, maybe more capacity to be able to tolerate different systems for different use cases. But with these smaller companies, more limited IT organizations, a consistent platform with one approach to integration, data, analytics, configuration, one vendor, the whole stack, the full suite, the whole insurance business process operating very cleanly. That's important.

是的，很好的問題。我會給你主題。我認為，第一，重要的是我們帶來了一個完整的解決方案，該解決方案在索賠、政策計費方面是一致的，對吧？所以我認為更大的運營商可能有更多的馬力，也許更多的能力能夠容忍不同的系統用於不同的用例。但是，對於這些規模較小的公司、更有限的 IT 組織，一個一致的平台，採用一種集成、數據、分析、配置方法，一個供應商，整個堆棧，全套，整個保險業務流程運行得非常乾淨。這很重要。

I think that one vendor being responsible for the predictive analytics and that part of the equation is also very valuable to these customers. The other thing that's coming up is just -- and I kind of touched on this before, it's just track record of success that we've got. I think 40 some and customers in production. We've got multiple years now of track record and experience running this. We've got a vision for these 3 releases a year. And I think that customers see that momentum. And I think that, that does factor into the decision-making process in a significant way and helps us.

我認為，由一家供應商負責預測分析以及等式的這一部分對這些客戶也非常有價值。即將出現的另一件事是——我之前有點提到過這一點，這只是我們取得的成功記錄。我認為 40 一些和客戶在生產中。我們已經有多年的跟踪記錄和運行它的經驗。我們對每年這 3 個版本有一個願景。我認為客戶看到了這種勢頭。我認為，這確實在很大程度上影響了決策過程並幫助了我們。

And I wanted to say something because I'm surprised actually nobody asked this question yet, Jeff and I touched on this. Like in this quarter, we're seeing conversations about competitive displacement that I have not seen in my 4 years at Guidewire is like we mentally think of these systems as being the main frame been replaced and this package has been deployed. And we started to think of it as like that TAM is removed. But now it's coming back up. And these systems that are now at this point, maybe more than a decade old, these companies are talking to us about what's our potential for replacing them. And that's a very, very exciting development. It's a great conversation to have.

我想說點什麼，因為令我驚訝的是實際上還沒有人問這個問題，Jeff 和我談到了這個問題。就像在本季度一樣，我們看到了我在 Guidewire 的 4 年裡從未見過的關於競爭性取代的對話，就像我們在心理上認為這些系統是被替換的主要框架並且已經部署了這個包。我們開始認為 TAM 已被刪除。但現在它又回來了。現在這些系統，可能已有十多年的歷史了，這些公司正在與我們討論我們取代它們的潛力。這是一個非常非常令人興奮的發展。這是一次很棒的談話。

And I think the reasoning behind that interest has a lot to do with all the reasons I just gave you about why that tier of the market is interested in Guidewire. So I think it all plays to -- it all plays to our strengths right now.

而且我認為這種興趣背後的原因與我剛才給你的所有原因有很大關係，為什麼那層市場對 Guidewire 感興趣。所以我認為這一切都發揮了作用——這一切都發揮了我們現在的優勢。

And I'll just quickly follow up on that last point. I think in the past, you said like 20% to 25% global DWP. You manage that of what remains half of that remainder is on a mainframe system. You're really talking about like that half is maybe just unbounded at this point. I mean it's all up for grabs?

我將快速跟進最後一點。我想過去，你說的是 20% 到 25% 的全球 DWP。您管理剩下的一半，剩下的一半在大型機系統上。你真的在談論那一半在這一點上可能只是無限的。我的意思是這一切都可以爭奪？

Yes. I think if you play it out, if you play that concept out, yes, you could say all of that is now up for grabs. Now it obviously depends on which vendor you're talking about and when the implementation was done and what are the unique circumstances associated with that implementation, it's probably too exaggerated to say that it is completely all up for grabs. But part of that segment of the market is up for grabs. And that -- like I said, that's a very exciting thing to see. And I think is unlocked a bit just based on time but also based on the momentum and the innovation that we've established and are proving through our execution.

是的。我想如果你把它玩出來，如果你把那個概念玩出來，是的，你可以說所有這些現在都可以爭奪了。現在，這顯然取決於您在談論哪個供應商、何時完成實施以及與該實施相關的獨特情況，說它完全可以搶奪可能太誇張了。但該市場的一部分正在爭奪中。而且 - 就像我說的那樣，這是一件非常令人興奮的事情。而且我認為只是基於時間解鎖了一點，但也基於我們已經建立並通過我們的執行證明的勢頭和創新。

Our next question is from Michael Turrin with Wells Fargo.

我們的下一個問題來自富國銀行的 Michael Turrin。

Just one for me. Going back to just some of the other comments. So the 3Q ARR came in ahead of the prior guide. The fiscal Q4 compared to the full year is more a tightening of the range. I appreciate you not wanting to turn this into a call around ramp deals. But is the second half impact you're characterizing last quarter there, the difference between what was previously expected? And is that more what's driving the decision to wait for Q4 before framing the prelim growth outlook as you historically have? Or is some of that also just macro fiscal Q4 being important and that's what's driving the decision process there? Any further context is helpful.

只給我一個。回到其他一些評論。因此，第三季度 ARR 領先於之前的指南。與全年相比，第四財季更多是區間收緊。我很感激你不想把它變成一個圍繞坡道交易的電話。但是你在上個季度描述的下半年影響是否與之前預期的有所不同？是不是更多的原因促使您決定等待第四季度，然後再像以往那樣制定初步增長前景？或者其中一些也只是宏觀財政第四季度很重要，這就是推動那裡決策過程的原因嗎？任何進一步的上下文都是有幫助的。

I think you're thinking about it right. That's exactly our thought process. I mean I also think it in prior years when we assess the analyst models and looked at what was out there, if there was something that we felt that was critical to get in front of that we had visibility into, we would try to do that. But given kind of where we are and how critical Q4 is for establishing the right framework for the next fiscal year, we felt like it was prudent to kind of wait until that is completed.

我認為你在考慮它是對的。這正是我們的思考過程。我的意思是，我還認為，在前幾年，當我們評估分析師模型並查看其中的內容時，如果我們認為有一些事情對我們有可見性至關重要，我們會嘗試這樣做.但考慮到我們所處的位置以及第四季度對於為下一財年建立正確框架的重要性，我們覺得等待它完成是明智的。

Our next question is from Parker Lane with Stifel.

我們的下一個問題來自 Stifel 的 Parker Lane。

I'll just ask one in the interest of time. Mike, I was wondering if you could talk about the share migrations that carry expansion as part of the project and the general appetite you see for customers that are embarking on the cloud journey to either hit the ground running and just make sure they have a successful cloud migration or widen the scope of what they're trying to achieve.

為了節省時間，我只問一個。邁克，我想知道你是否可以談談作為項目一部分進行擴展的共享遷移，以及你看到的對開始雲之旅的客戶的普遍興趣，要么立即開始運行，要么確保他們取得成功雲遷移或擴大他們試圖實現的範圍。

Super question. This is a dynamic, which we also have noticed. And very often, it is the, let's call it, the modernization projects to modernize something that causes the conversation about, let's do the cloud upgrade of the existing implementation as well. Sometimes it's the other way around where we're talking about a cloud upgrade or a version upgrade, and that causes the conversation about new lines of business or modernization around another component of the core system.

超級問題。這是一種動態，我們也注意到了這一點。很多時候，我們稱之為現代化項目，使某些東西現代化，這引起了人們的討論，讓我們也對現有實施進行雲升級。有時我們談論的是雲升級或版本升級，這會導致圍繞核心系統另一個組件的新業務線或現代化的對話。

But what triggers these things are -- deals like this, they need triggers. They need compelling events. They need business related objectives that can drive the projects and the deal for us. And so like I said, a lot of times, this is, hey, we've got an initiative to do X, Y, Z in our business. We need a modern system to do that. Okay, that we have Guidewire for claims already, and we're happy. And so let's talk about policy. And then the well, we're going to do policy on cloud, how should we think about claims? Should we move that to cloud also? And that's the way that the conversation goes and evolves and it results in migration and an upgrade.

但觸發這些事情的是——像這樣的交易，他們需要觸發。他們需要引人注目的事件。他們需要可以推動項目和交易的業務相關目標。所以就像我說的，很多次，這是，嘿，我們有一個在我們的業務中做 X、Y、Z 的倡議。我們需要一個現代系統來做到這一點。好吧，我們已經有了用於理賠的 Guidewire，我們很高興。因此，讓我們談談政策。然後好吧，我們要製定雲政策，我們應該如何考慮索賠？我們是否也應該將其移動到雲端？這就是對話進行和發展的方式，並導致遷移和升級。

And there's just a variety of different ways that those conversations can happen, but those compelling events are created and driven by these business objectives. And so that's a dynamic that we're absolutely seeing right now and are excited about just continuing it. And so it's like there the fact like it kind of relates also to this idea that we are a very good solution for a full suite offering, where you can do everything in a very consistent way, 1 vendor, 1 approach to configuration, 1 approach to data and analytics and integration, 1 approach to the marketplace partners and having a consistency across these core systems, claims, policy and billing really just facilitates a better end-to-end insurance process. And it's a big part -- the value prop that we've provided.

這些對話可以通過多種不同的方式發生，但這些引人入勝的事件是由這些業務目標創建和驅動的。因此，這是我們現在絕對看到的一種動態，並且很高興繼續它。因此，這就像它的事實也與我們是一個非常好的完整套件產品解決方案的想法有關，在那裡您可以以非常一致的方式做所有事情，1 家供應商，1 種配置方法，1 種方法對於數據、分析和集成，一種面向市場合作夥伴的方法，以及在這些核心系統、索賠、政策和計費之間保持一致性，真的只會促進更好的端到端保險流程。這是一個很大的部分——我們提供的價值支柱。

And even -- it's like not competitors, but just like Guidewire. It's pretty unique in the landscape for P&C core systems in that -- from the InsuranceSuite perspective, all of these -- all of these products have been built organically at Guidewire. They haven't been acquired or kind of bolted together through acquisition. It's like this has been built and crafted by great engineers, great teams at Guidewire over the course of many, many years and hundreds of users of implementations. And that's a big part of our success. So I appreciate the insight in the question and it's definitely one of the things driving a lot of these deals right now.

甚至——它不像競爭對手，而是像 Guidewire。它在 P&C 核心系統領域非常獨特——從 InsuranceSuite 的角度來看，所有這些——所有這些產品都是在 Guidewire 有機構建的。它們還沒有被收購或通過收購被捆綁在一起。這就像由偉大的工程師、Guidewire 的偉大團隊在許多年和數百名實施用戶的過程中構建和製作。這是我們成功的重要組成部分。所以我很欣賞這個問題的洞察力，這絕對是目前推動大量此類交易的因素之一。

There are no further questions at this time. I would like to turn the floor back over to CEO, Mike Rosenbaum for closing comments.

目前沒有其他問題。我想把發言權交還給首席執行官 Mike Rosenbaum 以發表結束評論。

Thanks very much. So I just want to thank everybody for participating in the call today. We're obviously thrilled with the continued cloud momentum across new and existing customers, Tier 1 and Tier 2 insurers, while also driving margin improvement. I was particularly happy to see the continued improvement in margins. There's been a huge effort here at the company to make that happen, and this was a great validation of that hard work. And so we're very excited about the future. Very excited to have a great Q4, and we look forward to talking to everybody again at the end of our fourth quarter at our next call. So thanks very much.

非常感謝。所以我只想感謝大家參加今天的電話會議。我們顯然對新客戶和現有客戶、一級和二級保險公司的持續雲勢頭感到興奮，同時也推動了利潤率的提高。我特別高興地看到利潤率持續提高。為了實現這一目標，公司付出了巨大的努力，這是對辛勤工作的一個很好的驗證。因此，我們對未來感到非常興奮。很高興有一個很棒的第四季度，我們期待在第四季度末的下一次電話會議上再次與大家交談。非常感謝。

Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。