Shares of property and casualty (P&C) insurance software vendor Guidewire Software, Inc. (NYSE:GWRE) fell, as the company was forced to delay revenue recognition on a large new deal. Guidewire is the leading P&C core systems vendor, with near-perfect retention rates, a growing installed user base, and accelerating customer adoption. The company is early in its core system replacement cycle, and it has tripled its addressable market through new products and cloud-based delivery. We believe Accenture’s new relationship with Guidewire will help to enhance its pricing and win rates, while also shortening its sales cycle. We believe the recent drop in the stock was not warranted, given the company’s meaningful long-term growth trajectory.
From Barron Asset Fund fourth quarter 2016 commentary.
