16 Best Mid Cap Growth Stocks To Buy Now

12. Guidewire Software Inc. (NYSE:GWRE)

Market Capitalization as of September 13: $14.20 billion

Number of Hedge Fund Holders: 43

Guidewire Software Inc. (NYSE:GWRE) is a global software company that offers an industry platform for property and casualty insurance carriers. Its comprehensive suite of solutions helps insurers manage their entire business lifecycle, from underwriting and policy administration to claims processing and risk management.

In FQ4 2024, the company recorded a revenue of $291.52 million, up 7.99% year-over-year.  Subscription and support revenue was up 28% year-over-year, offset by a 6% decline in license revenue, due to the migration of on-premise customers to the cloud. Services revenue was also down 14% year-over-year as the company transitioned more implementation work to its SI (system integrator) partners and minimized reliance on subcontractors.

The ARR was up 14% on the year. Growth was driven by 16 closed cloud deals in this quarter (13 InsuranceSuite cloud deals), and 42 overall for the year (37 InsuranceSuite cloud deals). These results position the company well to achieve its $1 billion ARR target this fiscal year.

Guidewire Software Inc. (NYSE:GWRE) added 4 new customers in FQ4. A super regional personal lines carrier chose the company’s full suite of data products to modernize their core systems for growth, while Argonaut Managed Services selected ClaimCenter (the company’s management system) to consolidate claims systems and enhance operational efficiency.

Over 25,000 professionals from 38 SIs are now collaborating with this company. In FQ4, the number of cloud-certified partner professionals grew 22% year-over-year to 9,500. The Guidewire Marketplace has expanded to include over 215 technology partners.

The strong momentum in customer engagement, evidenced by significant expansions and new wins, positions it for continued growth in the industry.

Parnassus Mid Cap Fund stated the following regarding Guidewire Software, Inc. (NYSE:GWRE) in its Q2 2024 investor letter:

“Guidewire Software, Inc. (NYSE:GWRE), the leading software provider for property and casualty insurers, reported strong fiscal-third-quarter earnings highlighted by accelerating growth in annual recurring revenue and structurally higher profitability. With demand increasing and a broad array of strategic partners to guide implementations and migrations, we see a long runway ahead.”