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Duck Creek Technologies, Inc. (DCT)

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Previous Close41.66
Open42.67
Bid42.13 x 800
Ask42.19 x 900
Day's Range41.02 - 42.92
52 Week Range35.10 - 59.40
Volume644,439
Avg. Volume946,516
Market Cap5.544B
Beta (5Y Monthly)N/A
PE Ratio (TTM)N/A
EPS (TTM)-0.22
Earnings DateApr 05, 2021
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est52.20
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  • Duck Creek Technologies Announces Second Quarter Fiscal 2021 Financial Results
    GlobeNewswire

    Duck Creek Technologies Announces Second Quarter Fiscal 2021 Financial Results

    Second Quarter Fiscal 2021 Subscription revenue grew 51% year-over-yearSaaS Annual Recurring Revenue grew 75% year-over-year BOSTON, April 05, 2021 (GLOBE NEWSWIRE) -- Duck Creek Technologies (NASDAQ: DCT), a provider of SaaS-delivered enterprise software to the property & casualty (“P&C”) insurance industry, today announced its financial results for the three and six months ended February 28, 2021. “Duck Creek delivered strong second quarter results, as our continued market momentum drove 51% subscription revenue growth,” said Michael Jackowski, Duck Creek’s Chief Executive Officer. “Our growing number of SaaS wins, across all segments of the market, highlights that Duck Creek OnDemand can successfully scale from solutions for regional insurers to serving as the global platform for the most demanding Tier 1 Insurers.” Mr. Jackowski added, “Many P&C carriers have embraced the need for true digital transformation and have recognized that a SaaS-based core systems platform is a competitive differentiator. We believe our continued success demonstrates that Duck Creek OnDemand is the leading SaaS platform of choice for the global P&C industry.” Second Quarter 2021 Financial Highlights Revenue Total revenue for the second quarter of fiscal year 2021 was $62.7 million, an increase of 19% from the comparable period in fiscal year 2020. Subscription revenue was $30.6 million, an increase of 51%; services revenue was $22.6 million, a decrease of 8%; license revenue was $3.6 million, an increase of 61%; and maintenance revenue was $5.9 million, an increase of 1%.SaaS annual recurring revenue, or SaaS ARR, was $118.1 million as of February 28, 2021, an increase of 75% from the comparable period in fiscal year 2020. Profitability GAAP loss from operations was $6.4 million for the second quarter of fiscal year 2021, compared with a GAAP loss from operations of $2.0 million for the comparable period in fiscal year 2020.Non-GAAP income from operations was $2.2 million for the second quarter of fiscal year 2021, compared with non-GAAP income from operations of $2.7 million for the comparable period in fiscal year 2020.GAAP net loss was $6.4 million for the second quarter of fiscal year 2021, compared with GAAP net loss of $2.4 million for the comparable period in fiscal year 2020.Non-GAAP net income was $2.0 million for the second quarter of fiscal year 2021, compared with non-GAAP net income of $1.9 million for the comparable period in fiscal year 2020.GAAP net loss per share was $(0.05), based on basic weighted average shares outstanding of approximately 131.0 million shares as of February 28, 2021. Non-GAAP net income per share was $0.01 based on fully diluted weighted average shares outstanding of approximately 134.8 million shares as of February 28, 2021.Adjusted EBITDA was $3.0 million for the second quarter of fiscal 2021, compared with adjusted EBITDA of $3.5 million for the comparable period in fiscal year 2020. Liquidity As of February 28, 2021 Duck Creek had $76.1 million in cash and cash equivalents, $287.9 million in short term investments and no debt. The Company used $0.9 million in cash from operating activities and had free cash flow of $(1.6) million during the second quarter of fiscal year 2021, compared with $1.8 million used in cash from operating activities and free cash flow of $(3.6) million in the comparable period in fiscal year 2020. The information presented above includes non-GAAP financial measures such as “non-GAAP income from operations,” “adjusted EBITDA,” “non-GAAP net income,” “non-GAAP net income per share,” and “free cash flow.” Refer to “Non-GAAP Financial Measures and Other Metrics” for a discussion of these measures and reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure. Business Outlook Duck Creek is issuing the following outlook for the third quarter of fiscal 2021 and full year of fiscal 2021 based on current expectations as of April 5, 2021: Third Quarter Fiscal 2021 Full Year Fiscal 2021Revenue $62.5 million to $64.5 million $250.0 million to $254.5 millionSubscription Revenue $31.0 million to $31.5 million $120.0 million to $121.5 millionAdjusted EBITDA $(0.5) million to $0.5 million $6.5 million to $8.0 million Conference Call Information Duck Creek Technologies will host a conference call today, April 5, 2021, at 5:00 p.m. (Eastern Time) to discuss the Company’s financial results and business outlook. A live webcast of the call will be available on the “Investor Relations” page of the Company’s website at https://ir.duckcreek.com/. To access the call by phone, dial 1-833-570-1119 (domestic) or 1-914-987-7066 (international). A replay of this conference call will be available for a limited time at 1-855-859-2056 (domestic) or 1-404-537-3406 (international) using conference ID 5074509. A replay of the webcast will also be available for a limited time at https://ir.duckcreek.com/. About Duck Creek Technologies Duck Creek Technologies is a leading provider of core system solutions to the P&C and General insurance industry. By accessing Duck Creek OnDemand, the company’s enterprise Software-as-a-Service solution, insurance carriers are able to navigate uncertainty and capture market opportunities faster than their competitors. Duck Creek’s functionally-rich solutions are available on a standalone basis or as a full suite, and all are available via Duck Creek OnDemand. Forward Looking Statements This press release includes certain disclosures which contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements because they contain words such as “expect,” “believe,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “forecast,” “outlook” and variations of these terms or the negative of these terms and similar expressions. Forward-looking statements, including statements regarding Duck Creek’s expected outlook for third quarter fiscal 2021 and full year fiscal 2021, are based on Duck Creek’s current expectations and assumptions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements will be set forth in Duck Creek’s most recent Annual Report on Form 10-K that was filed with the Securities and Exchange Commission on November 3, 2020 and any subsequent public filings. In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the impact of pandemics, including the on-going COVID-19 pandemic, on U.S. and global economies, Duck Creek’s business and results and financial condition, its employees, demand for its products, sales and implementation cycles, and the health of its customers’ and partners’ businesses; Duck Creek’s history of losses; changes in Duck Creek’s product revenue mix as it continues to focus on sales of its SaaS solutions, which will cause fluctuations in its results of operations and cash flows between periods; Duck Creek’s reliance on orders and renewals from a relatively small number of customers for a substantial portion of its revenue, and the substantial negotiating leverage customers have in renewing and expanding their contracts for Duck Creek’s solutions; the success of Duck Creek’s growth strategy focused on SaaS solutions and its ability to develop or sell its solutions into new markets or further penetrate existing markets; Duck Creek’s ability to manage its expanding operations; intense competition in Duck Creek’s market; third parties may assert Duck Creek is infringing or violating their intellectual property rights; U.S. and global market and economic conditions, particularly adverse in the insurance industry; additional complexity, burdens and volatility in connection with Duck Creek’s international sales and operations; the length and variability of Duck Creek’s sales and implementation cycles; data breaches, unauthorized access to customer data or other disruptions of Duck Creek’s solutions; the significant influence of Duck Creek’s largest shareholders on its management, business plans, and policies and any conflicts of interests therewith; and Duck Creek’s continued reliance on “controlled company” exemptions under the corporate governance standards of Nasdaq during the applicable phase-in periods. Any forward-looking statement in this release speaks only as of the date of this release. Duck Creek undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable laws. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance unless expressed as such, and should only be viewed as historical data. Non-GAAP Financial Measures and Other Metrics This press release contains the following non-GAAP financial measures: non-GAAP gross margin, non-GAAP income from operations, adjusted EBITDA, non-GAAP net income, non-GAAP net income per share, and free cash flow. Adjusted EBITDA excludes provision for income taxes, other (income) expense, interest expense, net, depreciation of property and equipment, amortization of intangible assets, share-based compensation expense, and change in fair value of contingent earnout liability. Non-GAAP income from operations excludes share-based compensation expense, amortization of intangible assets and change in fair value of contingent earnout liability. Non-GAAP gross margin excludes share-based compensation expense, amortization of intangible assets, and amortization of capitalized internal-use software. Non-GAAP net income excludes share-based compensation expense, amortization of intangible assets and change in fair value of contingent earnout liability and the tax effect of such adjustments. Free cash flow consists of net cash provided by operating activities less cash used for purchases of property and equipment and capitalized internal-use software. See below for a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure. Other metrics include SaaS ARR and SaaS Net Dollar Retention, which are calculated for all SaaS continuing software services, excluding the subscription revenue related to one legacy contract for a service no longer offered separately by the Company. SaaS ARR is calculated by annualizing recurring revenue recorded in the last month of the measurement period. SaaS Net Dollar Retention is a rate calculated by annualizing recurring revenue recorded in the last month of the measurement period for those customers in place throughout the entire measurement period. We divide the result by annualized recurring revenue from the month that is one year prior to the end of the measurement period, for all customers in place at the beginning of the measurement period. The Company believes that these non-GAAP financial measures and other metrics provide useful information to management and investors regarding certain financial and business trends relating to Duck Creek’s financial condition and results of operations. The Company’s management uses these non-GAAP financial measures and other metrics to manage its business, make planning decisions, evaluate its performance and allocate resources. The Company believes that the use of these non-GAAP financial measures and other metrics help investors and analysts in comparing its results across reporting periods on a consistent basis by excluding items that the Company does not believe are indicative of its core operating performance. These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or as a substitute for, the analysis of other GAAP financial measures, including net income and cash flows from operating activities. These non-GAAP financial measures are not universally consistent calculations, limiting their usefulness as comparative measures. Other companies may calculate similarly titled financial measures differently than the Company does or may not calculate them at all. Additionally, these non-GAAP financial measures are not measurements of financial performance or liquidity under GAAP. In order to facilitate a clear understanding of its consolidated historical operating results, readers should examine the Company’s non-GAAP financial measures in conjunction with its historical GAAP financial information. To the extent that the Company provides guidance on a non-GAAP basis, it does not provide reconciliations of such forward-looking non-GAAP measures to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including adjustments that could be made for the charges reflected in the Company’s reconciliation of historic numbers, the amount of which, based on historical experience, could be significant. Investor Contact: Brian Denyeau ICR 646-277-1251 Brian.denyeau@icrinc.com Media Contact: Paul Rechichi Racepoint Global 617 624 3295 prechichi@racepointglobal.com Sam A. Shay Duck Creek Technologies 857 201 5784 sam.shay@duckcreek.com Duck Creek Technologies, Inc. and Subsidiaries Consolidated Balance Sheets (unaudited, in thousands) February 28, August 31, 2021 2020 Assets Current assets: Cash and cash equivalents $76,074 $389,878 Short-term investments 287,906 — Accounts receivable, net 34,738 29,149 Unbilled revenue 22,143 18,121 Prepaid expenses and other current assets 15,240 12,186 Total current assets 436,101 449,334 Property and equipment, net 16,725 18,113 Operating lease assets 16,632 18,171 Goodwill 272,455 272,455 Intangible assets, net 73,512 81,687 Deferred tax assets 2,065 1,550 Unbilled revenue, net of current portion 2,824 3,487 Other assets 16,983 16,303 Total assets $837,297 $861,100 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $1,001 $1,802 Accrued liabilities 40,664 58,202 Contingent earnout liability 5,267 3,701 Lease liability 3,292 3,611 Deferred revenue 28,860 30,397 Total current liabilities 79,084 97,713 Contingent earnout liability, net of current portion — 3,391 Lease liability, net of current portion 20,196 21,739 Deferred revenue, net of current portion 23 379 Other long-term liabilities 6,058 4,121 Total liabilities 105,361 127,343 Commitments and contingencies (Note 13) Stockholders' equity Common stock, 134,081,473 shares issued and 131,524,442 shares outstanding at February 28, 2021, 133,269,301 shares issued and 130,713,745 shares outstanding at August 31, 2020, 300,000,000 shares authorized at February 28, 2021 and August 31, 2020, par value $0.01 per share 1,341 1,333 Preferred stock, 0 shares outstanding, 50,000,000 shares authorized at February 28, 2021 and August 31, 2020, par value $0.01 per share — — Treasury stock, common shares at cost; 2,557,031 shares at February 28, 2021 and 2,555,556 shares at August 31, 2020 (64,745) (64,688)Accumulated deficit (35,349) (24,334)Accumulated other comprehensive income (loss) (6) — Additional paid in capital 830,695 821,446 Total stockholders' equity 731,936 733,757 Total liabilities and stockholders' equity $837,297 $861,100 Duck Creek Technologies, Inc. and Subsidiaries Consolidated Statements of Operations (unaudited, in thousands except share and per share amounts) For the Three Months EndedFebruary 28 and 29, For the Six Months EndedFebruary 28 and 29, 2021 2020 2021 2020 Revenue: Subscription $30,608 $20,276 $58,517 $37,813 License 3,588 2,226 4,938 3,271 Maintenance and support 5,885 5,801 12,075 11,727 Professional services 22,571 24,524 46,028 46,586 Total revenue 62,652 52,827 121,558 99,397 Cost of revenue: Subscription 11,411 8,873 21,495 16,150 License 446 515 834 841 Maintenance and support 859 887 1,701 1,765 Professional services 14,826 13,338 28,542 25,380 Total cost of revenue 27,542 23,613 52,572 44,136 Gross margin 35,110 29,214 68,986 55,261 Operating expenses: Research and development 12,681 10,008 23,785 19,227 Sales and marketing 14,165 11,245 26,762 21,816 General and administrative 14,617 9,747 29,035 19,732 Change in fair value of contingent consideration 95 167 98 211 Total operating expenses 41,558 31,167 79,680 60,986 Loss from operations (6,448) (1,953) (10,694) (5,725)Other income (expense), net 510 (153) 463 220 Interest expense, net (38) (45) (81) (326)Loss before income taxes (5,976) (2,152) (10,312) (5,832)Provision for income taxes 388 288 703 622 Net loss $(6,364) $(2,440) $(11,015) $(6,454)Net loss per share information2 Net loss per share of common stock, basic and diluted $(0.05) $(0.08) Weighted average shares of common stock, basic and diluted 130,982,116 — 130,851,680 — (1) Amounts include share-based compensation expense as disclosed in the following table: Three Months EndedFebruary 28 and 29, Six Months EndedFebruary 28 and 29, 2021 2020 2021 2020 Cost of subscription revenue $132 $10 $212 $10 Cost of maintenance and support revenue 8 1 15 2 Cost of services revenue 1,139 41 1,750 67 Research and development 709 98 1,220 188 Sales and marketing 1,395 87 2,294 164 General and administrative 1,133 251 2,117 494 Total share-based compensation expense $4,516 $488 $7,608 $924 (2) Prior to Duck Creek’s initial public offering in August 2020, there were no shares of common stock outstanding, and the membership structure of Duck Creek Technologies consisted of limited partnership units. Accordingly, comparable period net loss per share has not been presented because it would not be meaningful to the users of the Company’s consolidated financial statements. Duck Creek Technologies, Inc. and Subsidiaries Consolidated Statements of Cash Flows (unaudited, in thousands) For the Three Months EndedFebruary 28 and 29, For the Six Months EndedFebruary 28 and 29, 2021 2020 2021 2020 Operating activities: Net loss $(6,364) $(2,440) $(11,015) $(6,454)Adjustments to reconcile net loss to cash used in operating activities: Depreciation of property and equipment 800 785 1,587 1,522 Amortization of capitalized software 498 51 996 51 Amortization of intangible assets 4,088 4,268 8,175 8,535 Amortization of deferred financing fees 29 28 57 39 Share-based compensation expense 4,516 488 7,608 924 Loss on change in fair value of contingent earnout liability 95 167 98 211 Bad debt expense (4) (32) 10 (72)Deferred taxes (344) 4 (515) 23 Changes in operating assets and liabilities Accounts receivable (6,880) (4,785) (5,600) (6,124)Unbilled revenue (1,629) (2,769) (3,359) (3,938)Prepaid expenses and other current assets (3,430) (2,588) (3,111) (1,601)Other assets (664) (3,723) (679) (3,636)Accounts payable (204) 398 508 168 Accrued liabilities 5,958 6,040 (10,671) 1,340 Deferred revenue 2,665 2,342 (1,893) (1,300)Operating leases (162) (63) (323) 249 Cash settlement of vested phantom stock (227) — (6,904) — Other long-term liabilities 338 22 1,938 115 Net cash used in operating activities (921) (1,807) (23,093) (9,948)Investing activities: Purchase of short-term investments (287,912) — (287,912) — Capitalized internal-use software (214) (693) (750) (1,555)Purchase of property and equipment (484) (1,058) (672) (2,694)Net cash used in investing activities (288,610) (1,751) (289,334) (4,249)Financing activities: Proceeds from follow-on offering, net of issuance costs 3,452 — 3,452 — Payment of deferred IPO costs — — (3,650) — Payment of deferred Class E offering costs — (1,337) (192) (2,072)Proceeds from issuance of Class E Units, net of issuance costs — 100,214 — 215,668 Payment on redemption of Class A and Class B Units — (100,000) — (198,000)Purchase of treasury stock — — (57) — Proceeds from stock option exercises 993 — 993 — Payments of contingent earnout liability — — (1,923) (3,182)Proceeds from revolving credit facility — — — 5,000 Payments on revolving credit facility — (4,000) — (9,000)Payment of deferred financing costs — — — (228)Net cash provided by (used in) financing activities 4,445 (5,123) (1,377) 8,186 Net decrease in cash and cash equivalents (285,086) (8,681) (313,804) (6,011)Cash and cash equivalents – beginning of period 361,160 14,669 389,878 11,999 Cash and cash equivalents – end of period $76,074 $5,988 $76,074 $5,988 Duck Creek Technologies, Inc. and Subsidiaries Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) Three Months EndedFebruary 28 and 29, Six Months EndedFebruary 28 and 29, ($ in thousands) 2021 2020 2021 2020 GAAP Gross Margin $35,110 $29,214 $68,986 $55,261 Share-based compensation expense 1,280 50 1,977 77 Amortization of intangible assets 1,186 1,186 2,372 2,372 Amortization of capitalized internal-use software 498 51 996 51 Non-GAAP Gross Margin $38,074 $30,501 $74,331 $57,761 Three Months EndedFebruary 28 and 29, Six Months EndedFebruary 28 and 29, ($ in thousands) 2021 2020 2021 2020 GAAP Loss from Operations $(6,448) $(1,953) $(10,694) $(5,725)Share-based compensation expense 4,516 488 7,608 924 Amortization of intangible assets 3,994 3,994 7,988 7,988 Change in fair value of contingent earnout liability 95 167 98 211 Non-GAAP Income from Operations $2,157 $2,696 $5,000 $3,398 Three Months EndedFebruary 28 and 29, Six Months EndedFebruary 28 and 29, ($ in thousands) 2021 2020 2021 2020 GAAP Net Loss $(6,364) $(2,440) $(11,015) $(6,454)Provision for income taxes 388 288 703 622 Other (income) expense (510) 153 (463) (220)Interest expense, net 38 45 81 326 Depreciation of property and equipment 800 785 1,587 1,522 Amortization of intangible assets 3,994 3,994 7,988 7,988 Share-based compensation expense 4,516 488 7,608 924 Change in fair value of contingent earnout liability 95 167 98 211 Adjusted EBITDA $2,957 $3,480 $6,587 $4,919 Adjusted EBITDA as a percent of total revenue 5% 7% 5% 5% Three Months EndedFebruary 28 and 29, Six Months EndedFebruary 28 and 29, ($ in thousands) 2021 Per Share 2020 2021 Per Share 2020 GAAP Net Loss (2) $(6,364) $(0.05) $(2,440) $(11,015) $(0.08) $(6,454)Add: GAAP tax provision 388 288 703 622 GAAP pre-tax loss (5,976) (2,152) (10,312) (5,832)Share-based compensation expense 4,516 488 7,608 924 Amortization of intangible assets 3,994 3,994 7,988 7,988 Change in fair value of contingent earnout liability 95 167 98 211 Non-GAAP pre-tax income 2,629 2,497 5,382 3,291 Non-GAAP tax provision applied at a 24% tax rate (1) 631 599 1,292 790 Non-GAAP Net Income (2) $1,998 $0.01 $1,898 $4,090 $0.03 $2,501 Shares used in computing Non-GAAP income per share amounts:(2) GAAP weighted-average shares - basic and diluted 130,982,116 130,851,680 Non-GAAP dilutive shares excluded from GAAP income (loss) per share calculation 3,814,530 3,814,530 Non-GAAP weighted-average shares - diluted 134,796,646 134,666,210 (1) Our GAAP tax provision is primarily related to state taxes and income taxes in profitable foreign jurisdictions. We maintain a full valuation allowance against our deferred tax assets in the U.S. For purposes of determining our Non-GAAP Net Income, we have applied a tax rate of 24% which represents our estimated effective tax rate once we are profitable on a GAAP basis. (2) Prior to Duck Creek’s initial public offering in August 2020, there were no shares of common stock outstanding, and the membership structure of Duck Creek Technologies consisted of limited partnership units. Accordingly, comparable period net loss per share has not been presented because it would not be meaningful to the users of the Company’s consolidated financial statements. Three Months EndedFebruary 28 and 29, Six Months EndedFebruary 28 and 29, ($ in thousands) 2021 2020 2021 2020 Net cash used in operating activities $(921) $(1,807) $(23,093) $(9,948)Purchases of property and equipment (484) (1,058) (672) (2,694)Capitalized internal-use software (214) (693) (750) (1,555)Free Cash Flow $(1,619) $(3,558) $(24,515) $(14,197)

  • ACCESSWIRE

    Duck Creek Technologies Inc to Host Earnings Call

    NEW YORK, NY / ACCESSWIRE / April 5, 2021 / Duck Creek Technologies Inc (NASDAQ:DCT) will be discussing their earnings results in their 2021 Second Quarter Earnings call to be held on April 5, 2021 at 5:00 PM Eastern Time.To listen to the event live or access a replay of the call - visit https://www.