Guidewire Software, Inc. (NYSE:GWRE) Q2 2023 Earnings Call Transcript

Jeff Cooper: Yes. I think on the overall subscription and support margins, we’re clearly tracking a little bit ahead of our FY ’23 targets. So that’s positive. And it’s helpful as we think through our kind of longer-term targets, but I wouldn’t necessarily call them out as upside yet, right? This is helpful for us to kind of feel more and more confident as we execute towards those targets. Like the building and the real estate consolidation was not embedded into our plan. So that is a little bit of an upside in terms of how we built the model previously. And then in general, when we look at some of the cost savings initiatives, the company is doing a number of activities that I think give us a little bit of confidence that we’re tracking a bit ahead of the plan. But know that there’s still a ton of execution between now and FY ’25 or some of those longer-term targets. So at a high level, that’s how I think about it.

Operator: At this time, we are end of our question-and-answer session. I’ll turn the floor to Mike Rosenbaum for closing remarks.

Mike Rosenbaum: Okay. I just wanted to say thanks, everybody, for participating today. We’re obviously thrilled with the continued cloud momentum across new and existing customers. And we had Tier 1 and Tier 2 insurers, going live this quarter and like we talked about, driving margin improvement. We think this quarter is a great validation of our strategy and increases in our long-term opportunities. So I look forward to catching up with you all further throughout the quarter, and have a great afternoon. Thank you.

Operator: This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.