- Duck Creek Technologies Inc (NASDAQ:DCT) reported second-quarter growth of 29% year-over-year to $76.42 million, beating the consensus of $72.75 million.
- Subscription revenue for the quarter was $39.6 million (+29% Y/Y); professional services was $26 million (+15%Y/Y); the license was $4.6 million (+30% Y/Y), and maintenance and support was $6.2 million (+5% Y/Y).
- Adjusted EPS improved to $0.04 from $0.01, beating the consensus of $0.01. The gross margin expanded by 200 bps to 58%.
- Adjusted income from operations was $6.6 million for the quarter, compared to $2.2 million for the comparable period in FY21.
- As of February 28, 2022, Duck Creek had $348.6 million in cash equivalents and no debt.
- DCT’s net cash provided by operating activities was $1.6 million, and free cash flow was $1.2 million for the quarter.
- 3Q22 Outlook: Duck Creek Technologies expects revenue of $71 million to $73 million vs. $75.93 million consensus, Subscription revenue of $36.5 million to $37.5 million, and Adjusted EBITDA of $0.5 million to $1.5 million.
- FY22 Outlook: The company expects revenue of $301 million to $305 million vs. $301.5 million consensus, Subscription revenue of $151 million to $153 million, and Adjusted EBITDA of $20.5 million to $22.5 million.
- DCT shares are down about 27.24% YTD.
- Price Action: DCT shares are trading lower by 14.11% at $19 during the post-market session on Thursday.
