Guidewire Software, Inc. (NYSE:GWRE) Q4 2020 Earnings Conference Call - Final Transcript
Sep 02, 2020 • 05:00 pm ET
The first question comes from the line of Ken Wong with Guggenheim Securities. You may proceed with your question.
Thanks for taking my question, and great quarter, guys. Maybe first off for you, Mike. Would love to get a sense of what you're hearing from customers in regard to Aspen. Obviously, a very strong quarter from a cloud deal perspective. But just wondering how they're thinking about adopting Aspen with all the new features potentially dragging out sales cycles, or has that shortened the sales cycles?
Yeah. Thanks for the question. I wouldn't say at all that it's dragging on the sales cycles. I think the biggest thing customers are excited about with respect to Aspen is just this philosophy of making the upgrades easier and easier and easier for them to take rate and the proof points that I talked about that -- which are early. We've had a couple of customers begin the process, but those proof points are positive. And I think -- what I'm hearing from people is just real, real excitement about the shift in the strategy, the product strategy that we've taken from a two-year cycle to a six-month cycle, and a shift in the design approach to the idea that we expect these to be just easier and easier and easier to adopt. You add on top of that sort of the idea that you can take these cloud-native services and you can use them to add to the approach that they're taking to building out new lines of business on a Guidewire core platform, and it just offers them more flexibility in terms of how they use the system to attack business problems. And so I wouldn't say it slows it down at all. It's been really, really positive the feedback that I've got from customers in terms of our strategic project direction.
Got it. Fantastic. And then, I guess, this could be either for you or Jeff. But as we look at ARR growth, you guys in the past have obviously threw -- thrown out a number of 20% longer term. Just wondering as we look at this trajectory, is it fair to assume that fiscal '21 is the trough, and any color you can provide there?
Yeah. I think that -- I'll let Jeff chime in. And I think we intend to provide a little bit more longer-term visibility on the Analyst Day presentation that we'll provide. Certainly, we see the potential for that when you look at the installed base and the potential that we see. But the guidance we provided this year is just based on what we see in the pipeline, and what we feel very confident in our ability to go execute on this year. Jeff, anything to add?
Yeah. I think that's -- you hit it, Mike. The only thing that we've talked about in the past, Ken, is -- is just the pace of this migration activity as a -- as a big