Duck Creek Technologies Announces Fourth Quarter and Full

• Fourth Quarter Fiscal 2022 Subscription income elevated to $40.2 million, up 21% year-over-year
  
• SaaS Annual Recurring Revenue (“SaaS ARR”) elevated to $169.3 million, up 25% year-over-year

BOSTON, Oct. 12, 2022 (GLOBE NEWSWIRE) — Duck Creek Technologies (NASDAQ: DCT), the clever SaaS options supplier defining the way forward for property and casualty (“P&C”) insurance, as we speak introduced its monetary outcomes for the fourth quarter and fiscal 12 months ended August 31, 2022.

“Duck Creek’s fourth quarter performance was highlighted by improved deal activity as customer demand and interest in modernizing their core systems to Duck Creek OnDemand, our industry-leading SaaS cloud platform, remained strong. I am proud of what the Duck Creek team accomplished in a year that saw significant changes in the market and the economy,” stated Michael Jackowski, Duck Creek’s Chief Executive Officer.

Jackowski added, “While we and our customers are still facing some of the same challenges as we and our customers faced in recent quarters, we are encouraged by the sales performance in the fourth quarter and pipeline entering fiscal 2023. We are focused on building upon our success in the quarter and are well positioned to execute on our growth strategy.”

Fourth Quarter 2022 Financial Highlights

Revenue

• Total income for the fourth quarter of fiscal 12 months 2022 was $80.7 million, a rise of 14% from the comparable interval in fiscal 12 months 2021. Subscription income was $40.2 million, a rise of 21%; skilled providers income was $25.4 million, a lower of 6%; license income was $7.8 million, a rise of 65%; and upkeep and assist income was $7.2 million, a rise of 23%.

Profitability

• GAAP loss from operations was $2.1 million for the fourth quarter of fiscal 12 months 2022, in contrast with a GAAP loss from operations of $4.1 million for the comparable interval in fiscal 12 months 2021.
• Non-GAAP earnings from operations was $6.1 million for the fourth quarter of fiscal 12 months 2022, in contrast with non-GAAP earnings from operations of $4.0 million for the comparable interval in fiscal 12 months 2021.
• GAAP internet loss was $2.4 million for the fourth quarter of fiscal 12 months 2022, in contrast with GAAP internet lack of $5.6 million for the comparable interval in fiscal 12 months 2021.
• Non-GAAP internet earnings was $4.5 million for the fourth quarter of fiscal 12 months 2022, in contrast with non-GAAP internet earnings of $2.6 million for the comparable interval in fiscal 12 months 2021.
• GAAP internet loss per share was $0.02 for the fourth quarter of fiscal 12 months 2022, in contrast with a GAAP internet loss per share of $0.04 for the comparable interval in fiscal 12 months 2021, based mostly on a primary and diluted weighted common shares excellent of roughly 132.6 million shares and 131.7 million shares, respectively. Non-GAAP internet earnings per share was $0.03 for the fourth quarter of fiscal 12 months 2022, in contrast with a non-GAAP internet earnings per share of $0.02 for the comparable interval within the fiscal 12 months 2021, based mostly on totally diluted weighted common shares excellent of roughly 133.9 million shares and 134.8 million shares, respectively.
• Adjusted EBITDA was $6.8 million for the fourth quarter of fiscal 2022, in contrast with adjusted EBITDA of $4.8 million for the comparable interval in fiscal 12 months 2021.

Liquidity

• Duck Creek had internet money supplied by working actions of $16.3 million and had free money stream of $15.7 million in the course of the fourth quarter of fiscal 12 months 2022, in contrast with $7.5 million of money supplied by working actions and free money stream of $6.9 million within the comparable interval in fiscal 12 months 2021.

Full Year Fiscal 2022 Financial Highlights

Revenue

• Total income for the fiscal 12 months 2022 was $302.9 million, a rise of 16% from fiscal 12 months 2021. Subscription income was $153.5 million, a rise of 23%; skilled providers income was $106.3 million, a rise of 8%; license income was $17.3 million, a rise of 42%; and upkeep and assist income was $25.8 million, a rise of 6%.
• SaaS ARR, was $169.3 million as of August 31, 2022, a rise of 25% from fiscal 12 months 2021

Profitability

• GAAP loss from operations was $5.4 million for the fiscal 12 months 2022, in contrast with a GAAP loss from operations of $15.4 million in fiscal 12 months 2021.
• Non-GAAP earnings from operations was $21.6 million for the fiscal 12 months 2022, in contrast with non-GAAP earnings from operations of $13.8 million in fiscal 12 months 2021.
• GAAP internet loss was $8.3 million for the fiscal 12 months 2022, in contrast with GAAP internet lack of $16.9 million in fiscal 12 months 2021.
• Non-GAAP internet earnings was $15.1 million for the fiscal 12 months 2022, in contrast with non-GAAP internet earnings of $10.7 million in fiscal 12 months 2021.
• GAAP internet loss per share was $0.06 for the fiscal 12 months 2022, in contrast with a GAAP internet loss per share of $0.13 in fiscal 12 months 2021, based mostly on a primary and diluted weighted common shares excellent of roughly 132.2 million shares and 131.1 million shares, respectively. Non-GAAP internet earnings per share was $0.11 for the fiscal 12 months 2022, in contrast with a non-GAAP internet earnings per share of $0.08 in fiscal 12 months 2021, based mostly on totally diluted weighted common shares excellent of roughly 133.5 million shares and 134.1 million shares, respectively.
• Adjusted EBITDA was $24.2 million for the fiscal 2022, in contrast with adjusted EBITDA of $16.9 million in fiscal 12 months 2021.

Liquidity

• As of August 31, 2022, Duck Creek had $273.1 million in money, money equivalents and short-term investments and no debt. Duck Creek had internet money supplied by working actions of $10.7 million and had free money stream of $8.0 million in the course of the fiscal 12 months 2022, in contrast with $8.7 million of money utilized in working actions and free money stream of ($11.0) million within the comparable interval in fiscal 12 months 2021.

The data offered above consists of non-GAAP monetary measures comparable to “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 dialogue of those measures and reconciliations of every non-GAAP monetary measure to probably the most straight comparable GAAP monetary measure.

Business Outlook

Duck Creek is issuing the next outlook for the primary quarter of fiscal 2023 and full 12 months of fiscal 2023 based mostly on present expectations as of October 12, 2022:

The foregoing business outlook is a forward-looking assertion and is predicated on various assumptions, lots of that are out of the Company’s management. Actual outcomes might differ from such outlook, and such variations could also be materials.

Conference Call Information

Duck Creek Technologies will host a convention name as we speak, October 12, 2022, at 5:00 p.m. (Eastern Time) to debate Duck Creek’s monetary outcomes and business outlook. A reside webcast of the decision will likely be obtainable on the “Investor Relations” web page of the Duck Creek’s web site at https://ir.duckcreek.com/. To entry the decision by telephone, please go to this hyperlink (registration hyperlink), and you’ll be supplied with dial in particulars. To keep away from delays, we encourage contributors to dial into the convention name fifteen minutes forward of the scheduled begin time. A replay of the webcast can even be obtainable for a restricted time at https://ir.duckcreek.com/.

About Duck Creek Technologies

Duck Creek Technologies (NASDAQ: DCT) is the clever options supplier defining the way forward for the property and casualty (P&C) and common insurance trade. We are the platform upon which trendy insurance techniques are constructed, enabling the trade to capitalize on the facility of the cloud to run agile, clever, and evergreen operations. Authenticity, objective, and transparency are core to Duck Creek, and we consider insurance must be there for people and companies when, the place, and how they want it most. Our market-leading options can be found on a standalone foundation or as a full suite, and all can be found through Duck Creek OnDemand. Visit www.duckcreek.com to study extra. Follow Duck Creek on our social channels for the newest data – LinkedIn and Twitter.

Forward Looking Statements

This press launch consists of sure disclosures which comprise “forward-looking statements” throughout the that means of the Private Securities Litigation Reform Act of 1995. You can establish forward-looking statements as a result of they comprise phrases comparable to “expect,” “believe,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “forecast,” “outlook” and variations of those phrases or the unfavorable of those phrases and related expressions. Forward-looking statements, together with statements concerning Duck Creek’s anticipated outlook for fourth quarter fiscal 2022 and full 12 months fiscal 2022, are based mostly on Duck Creek’s present expectations and assumptions. Because forward-looking statements relate to the longer term, they’re topic to inherent uncertainties, dangers and adjustments in circumstances which will differ materially from these contemplated by the forward-looking statements, that are neither statements of historic truth nor ensures or assurances of future efficiency. Important elements that would trigger precise outcomes to vary materially from these within the forward-looking statements are set forth in Duck Creek’s most up-to-date Annual Report on Form 10-Ok that was filed with the Securities and Exchange Commission on October 29, 2021, as supplemented by Duck Creek’s subsequent public filings. In specific, the next elements, amongst others, might trigger outcomes to vary materially from these expressed or implied by such forward-looking statements: the impression of pandemics, together with the on-going COVID-19 pandemic, on U.S. and world economies, Duck Creek’s business and outcomes and monetary situation, its staff, demand for its merchandise, gross sales and implementation cycles, and the well being of its prospects’ and companions’ companies; Duck Creek’s historical past of losses; adjustments in Duck Creek’s product income combine because it continues to give attention to gross sales of its SaaS options, which can trigger fluctuations in its outcomes of operations and money flows between intervals; Duck Creek’s reliance on orders and renewals from a comparatively small variety of prospects for a considerable portion of its income, and the substantial negotiating leverage prospects have in renewing and increasing their contracts for Duck Creek’s options; the success of Duck Creek’s development technique targeted on SaaS options and its capability to develop or promote its options into new markets or additional penetrate current markets; Duck Creek’s capability to handle its increasing operations; intense competitors in Duck Creek’s market; third events might assert Duck Creek is infringing or violating their mental property rights; U.S. and world market and financial circumstances, notably opposed within the insurance trade; extra complexity, burdens and volatility in reference to Duck Creek’s worldwide gross sales and operations; the size and variability of Duck Creek’s gross sales and implementation cycles; information breaches, unauthorized entry to buyer information or different disruptions of Duck Creek’s options; and the numerous affect of Duck Creek’s largest shareholders on the composition of its board of administrators, its administration, business plans, and insurance policies and any conflicts of pursuits therewith.

Any forward-looking assertion on this launch speaks solely as of the date of this launch. Duck Creek undertakes no obligation to publicly replace or assessment any forward-looking assertion, whether or not because of new data, future developments or in any other case, besides as could also be required by any relevant legal guidelines.

Comparisons of outcomes for present and any prior intervals will not be supposed to specific any future traits or indications of future efficiency except expressed as such, and ought to solely be considered as historic information.

Non-GAAP Financial Measures and Other Metrics

This press launch comprises the next non-GAAP monetary measures: non-GAAP gross margin, non-GAAP earnings from operations, adjusted EBITDA, non-GAAP internet earnings, non-GAAP internet earnings per share, and free money stream. Adjusted EBITDA excludes provision for earnings taxes, different (earnings) expense, curiosity (earnings) expense, internet, depreciation of property and gear, amortization of intangible belongings, share-based compensation expense, change in honest worth of contingent earnout legal responsibility, and acquisition-related bills. Non-GAAP earnings from operations excludes share-based compensation expense, amortization of intangible belongings, change in honest worth of contingent earnout legal responsibility, and acquisition-related bills. Non-GAAP gross margin excludes share-based compensation expense, amortization of intangible belongings, and amortization of capitalized internal-use software program. Non-GAAP internet earnings excludes share-based compensation expense, amortization of intangible belongings, change in honest worth of contingent earnout legal responsibility and acquisition-related bills and the tax impact of such changes.  Free money stream consists of internet money supplied by working actions adjusted for purchases of property and gear, capitalized internal-use software program, and acquisition-related funds. See beneath for a reconciliation of every non-GAAP monetary measure to probably the most straight comparable GAAP monetary measure.

Other metrics embrace SaaS ARR and SaaS Net Dollar Retention, that are calculated for all SaaS persevering with software program providers, excluding the subscription income associated to 1 legacy contract for a service not supplied individually by Duck Creek. SaaS ARR is calculated by annualizing recurring income recorded within the final month of the measurement interval. SaaS Net Dollar Retention is a fee calculated by annualizing recurring income recorded within the final month of the measurement interval for these prospects in place all through your complete measurement interval. We divide the consequence by annualized recurring income from the month that’s one 12 months previous to the tip of the measurement interval, for all prospects in place in the beginning of the measurement interval.

Duck Creek believes that these non-GAAP monetary measures and different metrics present helpful data to administration and traders concerning sure monetary and business traits regarding Duck Creek’s monetary situation and outcomes of operations. Duck Creek’s administration makes use of these non-GAAP monetary measures and different metrics to handle its business, make planning choices, consider its efficiency and allocate sources. Duck Creek believes that using these non-GAAP monetary measures and different metrics assist traders and analysts in evaluating its outcomes throughout reporting intervals on a constant foundation by excluding objects that Duck Creek doesn’t consider are indicative of its core working efficiency. These non-GAAP monetary measures have limitations as analytical instruments and shouldn’t be thought-about in isolation from, or as an alternative to, the evaluation of different GAAP monetary measures, together with internet earnings and money flows from working actions.

These non-GAAP monetary measures will not be universally constant calculations, limiting their usefulness as comparative measures. Other firms might calculate equally titled monetary measures in another way than Duck Creek does or might not calculate them in any respect. Additionally, these non-GAAP monetary measures will not be measurements of monetary efficiency or liquidity underneath GAAP. In order to facilitate a transparent understanding of its consolidated historic working outcomes, readers ought to look at Duck Creek’s non-GAAP monetary measures at the side of its historic GAAP monetary data.

Duck Creek is offering sure steerage on a non-GAAP foundation, however will not be offering reconciliations of such forward-looking non-GAAP measures to GAAP as a result of inherent issue in forecasting and quantifying sure quantities which can be crucial for such reconciliation, together with changes that could possibly be made for the costs mirrored in Duck Creek’s reconciliation of historic numbers, the quantity of which, based mostly on historic expertise, could possibly be vital.

Investor Contact:
Brian Denyeau
ICR
646 277 1251
[email protected]

Media Contact:
Paul Rechichi
Racepoint Global
617 624 3295
[email protected]

Drake Manning
Duck Creek Technologies
860 877 3609
[email protected]

Cost of income and working bills quantities within the Consolidated Statements of Operations embrace share-based compensation expense as disclosed within the following desk:

(1) Our GAAP tax provision is primarily associated to state taxes and earnings taxes in worthwhile international jurisdictions.  We preserve a full valuation allowance in opposition to our deferred tax belongings within the U.S.  For functions of figuring out our Non-GAAP Net Income, we have now utilized a tax fee of 24% which represents our estimated efficient tax fee.

(2) For all intervals offered, the Company had a GAAP internet loss and non-GAAP internet earnings. As such, excellent potential shares of widespread inventory are solely included for the calculation of Non-GAAP earnings per share since these shares can be anti-dilutive for the calculation of GAAP earnings per share.