Duck Creek Technologies Announces Fourth Quarter and Full Fiscal Year 2022 Financial Results

Rhea-AI Summary

Duck Creek Technologies (NASDAQ: DCT) reported its Q4 and full-year fiscal 2022 results, highlighting a 14% increase in total revenue to $80.7 million. Subscription revenue reached $40.2 million, up 21% year-over-year, while SaaS ARR increased 25% to $169.3 million. The company achieved non-GAAP income from operations of $6.1 million for Q4 and $21.6 million for FY 2022. Duck Creek forecasts FY 2023 revenue between $328.0 million and $336.0 million and adjusted EBITDA of $25.0 million to $27.0 million.

Positive

• Total revenue increased 14% to $80.7 million in Q4 2022.
• Subscription revenue grew 21% year-over-year to $40.2 million.
• SaaS ARR rose 25% to $169.3 million.
• Non-GAAP income from operations improved to $6.1 million in Q4 2022 from $4.0 million.

Negative

• GAAP loss from operations was $2.1 million in Q4 2022, although improved from $4.1 million in Q4 2021.
• Professional services revenue decreased by 6%.

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

BOSTON, Oct. 12, 2022 (GLOBE NEWSWIRE) -- Duck Creek Technologies (NASDAQ: DCT), the intelligent SaaS solutions provider defining the future of property and casualty ("P&C") insurance, today announced its financial results for the fourth quarter and fiscal year 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,” said 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 revenue for the fourth quarter of fiscal year 2022 was $80.7 million, an increase of 14% from the comparable period in fiscal year 2021. Subscription revenue was $40.2 million, an increase of 21%; professional services revenue was $25.4 million, a decrease of 6%; license revenue was $7.8 million, an increase of 65%; and maintenance and support revenue was $7.2 million, an increase of 23%.

Profitability

• GAAP loss from operations was $2.1 million for the fourth quarter of fiscal year 2022, compared with a GAAP loss from operations of $4.1 million for the comparable period in fiscal year 2021.
• Non-GAAP income from operations was $6.1 million for the fourth quarter of fiscal year 2022, compared with non-GAAP income from operations of $4.0 million for the comparable period in fiscal year 2021.
• GAAP net loss was $2.4 million for the fourth quarter of fiscal year 2022, compared with GAAP net loss of $5.6 million for the comparable period in fiscal year 2021.
• Non-GAAP net income was $4.5 million for the fourth quarter of fiscal year 2022, compared with non-GAAP net income of $2.6 million for the comparable period in fiscal year 2021.
• GAAP net loss per share was $0.02 for the fourth quarter of fiscal year 2022, compared with a GAAP net loss per share of $0.04 for the comparable period in fiscal year 2021, based on a basic and diluted weighted average shares outstanding of approximately 132.6 million shares and 131.7 million shares, respectively. Non-GAAP net income per share was $0.03 for the fourth quarter of fiscal year 2022, compared with a non-GAAP net income per share of $0.02 for the comparable period in the fiscal year 2021, based on fully diluted weighted average shares outstanding of approximately 133.9 million shares and 134.8 million shares, respectively.
• Adjusted EBITDA was $6.8 million for the fourth quarter of fiscal 2022, compared with adjusted EBITDA of $4.8 million for the comparable period in fiscal year 2021.

Liquidity

• Duck Creek had net cash provided by operating activities of $16.3 million and had free cash flow of $15.7 million during the fourth quarter of fiscal year 2022, compared with $7.5 million of cash provided by operating activities and free cash flow of $6.9 million in the comparable period in fiscal year 2021.

Full Year Fiscal 2022 Financial Highlights

Revenue

• Total revenue for the fiscal year 2022 was $302.9 million, an increase of 16% from fiscal year 2021. Subscription revenue was $153.5 million, an increase of 23%; professional services revenue was $106.3 million, an increase of 8%; license revenue was $17.3 million, an increase of 42%; and maintenance and support revenue was $25.8 million, an increase of 6%.
• SaaS ARR, was $169.3 million as of August 31, 2022, an increase of 25% from fiscal year 2021

Profitability

• GAAP loss from operations was $5.4 million for the fiscal year 2022, compared with a GAAP loss from operations of $15.4 million in fiscal year 2021.
• Non-GAAP income from operations was $21.6 million for the fiscal year 2022, compared with non-GAAP income from operations of $13.8 million in fiscal year 2021.
• GAAP net loss was $8.3 million for the fiscal year 2022, compared with GAAP net loss of $16.9 million in fiscal year 2021.
• Non-GAAP net income was $15.1 million for the fiscal year 2022, compared with non-GAAP net income of $10.7 million in fiscal year 2021.
• GAAP net loss per share was $0.06 for the fiscal year 2022, compared with a GAAP net loss per share of $0.13 in fiscal year 2021, based on a basic and diluted weighted average shares outstanding of approximately 132.2 million shares and 131.1 million shares, respectively. Non-GAAP net income per share was $0.11 for the fiscal year 2022, compared with a non-GAAP net income per share of $0.08 in fiscal year 2021, based on fully diluted weighted average shares outstanding of approximately 133.5 million shares and 134.1 million shares, respectively.
• Adjusted EBITDA was $24.2 million for the fiscal 2022, compared with adjusted EBITDA of $16.9 million in fiscal year 2021.

Liquidity

• As of August 31, 2022, Duck Creek had $273.1 million in cash, cash equivalents and short-term investments and no debt. Duck Creek had net cash provided by operating activities of $10.7 million and had free cash flow of $8.0 million during the fiscal year 2022, compared with $8.7 million of cash used in operating activities and free cash flow of ($11.0) million in the comparable period in fiscal year 2021.

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 first quarter of fiscal 2023 and full year of fiscal 2023 based on current expectations as of October 12, 2022:

		First Quarter Fiscal 2023	Full Year Fiscal 2023
	Revenue	$75.5 million to $77.5 million	$328.0 million to $336.0 million
	Subscription Revenue	$40.5 million to $41.5 million	$175.0 million to $179.0 million
	Adjusted EBITDA	$0.0 million to $1.0 million	$25.0 million to $27.0 million
	Non-GAAP net (loss) income	$(1.0) million to $0.0 million	$15.0 million to $17.0 million
	Non-GAAP EPS	$(0.01) to $0.00	$0.11 to $0.13

The foregoing business outlook is a forward-looking statement and is based on a number of assumptions, many of which are out of the Company’s control. Actual results may differ from such outlook, and such differences may be material.

Conference Call Information

Duck Creek Technologies will host a conference call today, October 12, 2022, at 5:00 p.m. (Eastern Time) to discuss Duck Creek’s financial results and business outlook. A live webcast of the call will be available on the “Investor Relations” page of the Duck Creek’s website at https://ir.duckcreek.com/. To access the call by phone, please go to this link (registration link), and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. 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 (NASDAQ: DCT) is the intelligent solutions provider defining the future of the property and casualty (P&C) and general insurance industry. We are the platform upon which modern insurance systems are built, enabling the industry to capitalize on the power of the cloud to run agile, intelligent, and evergreen operations. Authenticity, purpose, and transparency are core to Duck Creek, and we believe insurance should be there for individuals and businesses when, where, and how they need it most. Our market-leading solutions are available on a standalone basis or as a full suite, and all are available via Duck Creek OnDemand. Visit www.duckcreek.com to learn more. Follow Duck Creek on our social channels for the latest information – LinkedIn and Twitter.

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 fourth quarter fiscal 2022 and full year fiscal 2022, 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 are set forth in Duck Creek’s most recent Annual Report on Form 10-K that was filed with the Securities and Exchange Commission on October 29, 2021, as supplemented by Duck Creek’s 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; and the significant influence of Duck Creek’s largest shareholders on the composition of its board of directors, its management, business plans, and policies and any conflicts of interests therewith.

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 (income) expense, net, depreciation of property and equipment, amortization of intangible assets, share-based compensation expense, change in fair value of contingent earnout liability, and acquisition-related expenses. Non-GAAP income from operations excludes share-based compensation expense, amortization of intangible assets, change in fair value of contingent earnout liability, and acquisition-related expenses. 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, change in fair value of contingent earnout liability and acquisition-related expenses and the tax effect of such adjustments.  Free cash flow consists of net cash provided by operating activities adjusted for purchases of property and equipment, capitalized internal-use software, and acquisition-related payments. 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 Duck Creek. 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.

Duck Creek 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. Duck Creek’s management uses these non-GAAP financial measures and other metrics to manage its business, make planning decisions, evaluate its performance and allocate resources. Duck Creek 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 Duck Creek 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 Duck Creek 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 Duck Creek’s non-GAAP financial measures in conjunction with its historical GAAP financial information.

Duck Creek is providing certain guidance on a non-GAAP basis, but is not providing 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 Duck Creek’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

Drake Manning
Duck Creek Technologies
860 877 3609
drake.manning@duckcreek.com

Duck Creek Technologies, Inc. and Subsidiaries Consolidated Balance Sheets (unaudited, in thousands except share and per share amounts)
		August 31,
		2022				2021
Assets
Current assets:
Cash and cash equivalents		$	155,265			$	185,657
Short-term investments			117,823				191,981
Accounts receivable, net			29,939				34,629
Unbilled revenue, net			31,696				24,423
Prepaid expenses and other current assets			13,355				14,381
Total current assets			348,078				451,071
Property and equipment, net			14,076				14,305
Operating lease assets			16,502				17,798
Goodwill			355,498				272,455
Intangible assets, net			82,888				65,359
Deferred tax assets			1,132				2,331
Unbilled revenue, net of current portion			209				1,401
Other assets			21,293				19,413
Total assets		$	839,676			$	844,133
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$	2,577			$	2,070
Accrued liabilities			41,747				46,437
Contingent earnout liability			—				5,462
Lease liability			4,552				4,110
Deferred revenue, net			29,618				29,577
Total current liabilities			78,494				87,656
Lease liability, net of current portion			17,877				21,273
Deferred income taxes			8,654				634
Deferred revenue, net of current portion			39				—
Other long-term liabilities			2,206				3,832
Total liabilities			107,270				113,395
Commitments and contingencies
Stockholders' equity
Common stock, 135,370,279 shares issued and 132,685,963 shares outstanding at August 31, 2022, 134,625,379 shares issued and 132,000,317 shares outstanding at August 31, 2021, 300,000,000 shares authorized at August 31, 2022 and August 31, 2021, par value $0.01 per share			1,353				1,346
Treasury stock, common shares at cost; 2,684,316 shares at August 31, 2022 and 2,625,062 shares at August 31, 2021			(68,784	)			(67,764	)
Accumulated deficit			(49,596	)			(41,265	)
Accumulated other comprehensive (loss) income			(393	)			64
Additional paid in capital			849,826				838,357
Total stockholders' equity			732,406				730,738
Total liabilities and stockholders' equity		$	839,676			$	844,133

Duck Creek Technologies, Inc. and Subsidiaries Consolidated Statements of Operations (unaudited, in thousands except share and per share amounts)
		Three Months Ended August 31,								Year Ended August 31,
		2022				2021				2022				2021
Revenue:
Subscription		$	40,188			$	33,198			$	153,535			$	125,267
License			7,846				4,759				17,284				12,171
Maintenance and support			7,233				5,881				25,752				24,285
Professional services			25,447				27,016				106,346				98,627
Total revenue			80,714				70,854				302,917				260,350
Cost of revenue:
Subscription			16,124				13,726				59,592				47,266
License			288				519				1,386				1,888
Maintenance and support			884				854				3,676				3,410
Professional services			15,889				14,665				63,640				57,522
Total cost of revenue			33,185				29,764				128,294				110,086
Gross margin			47,529				41,090				174,623				150,264
Operating expenses:
Research and development			14,486				12,509				55,359				48,549
Sales and marketing			14,713				13,734				57,454				54,124
General and administrative			20,462				18,391				67,111				62,664
Change in fair value of contingent consideration			—				584				67				293
Total operating expenses			49,661				45,218				179,991				165,630
Loss from operations			(2,132	)			(4,128	)			(5,368	)			(15,366	)
Other (expense) income, net			(636	)			(578	)			(2,277	)			431
Interest income (expense), net			474				(13	)			604				(100	)
Loss before income taxes			(2,294	)			(4,719	)			(7,041	)			(15,035	)
Provision for income taxes			87				840				1,291				1,896
Net loss		$	(2,381	)		$	(5,559	)		$	(8,332	)		$	(16,931	)
Net loss per share information
Net loss per share of common stock, basic and diluted		$	(0.02	)		$	(0.04	)		$	(0.06	)		$	(0.13	)
Weighted average shares of common stock, basic and diluted			132,576,783				131,733,254				132,205,020				131,114,791

Cost of revenue and operating expenses amounts in the Consolidated Statements of Operations include share-based compensation expense as disclosed in the following table:

		Three Months Ended August 31,								Year Ended August 31,
		2022				2021				2022				2021
Cost of subscription revenue		$	96			$	127			$	349			$	429
Cost of maintenance and support revenue			9				7				35				29
Cost of services revenue			414				705				1,063				2,708
Research and development			465				487				1,746				1,992
Sales and marketing			407				716				1,133				3,209
General and administrative			1,404				1,530				5,198				4,510
Total share-based compensation expense		$	2,795			$	3,572			$	9,524			$	12,877

Duck Creek Technologies, Inc. and Subsidiaries Consolidated Statements of Cash Flows (unaudited, in thousands)
		Three Months Ended August 31,								Year Ended August 31,
		2022				2021				2022				2021
Operating activities:
Net loss		$	(2,381	)		$	(5,559	)		$	(8,332	)		$	(16,931	)
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
Depreciation of property and equipment			659				759				2,646				3,136
Amortization of capitalized software			671				534				2,355				2,040
Amortization of intangible assets			4,659				4,066				16,516				16,328
Amortization of deferred financing fees			35				29				128				114
Impairment of right of use asset			—				1,883				—				1,883
Impairment of leasehold improvements			—				702				—				702
Share-based compensation expense			2,795				3,572				9,524				12,877
Change in fair value of contingent earnout liability			—				584				67				293
Payment of contingent earnout liability in excess of acquisition date fair value			—				—				(1,650	)
Changes to allowance for credit losses			1,323				441				3,566				1,105
Deferred taxes			262				(105	)			1,194				(781	)
Other non-cash items			(140	)			49				(140	)			12
Changes in operating assets and liabilities			—				—				—				—
Accounts receivable			3,356				2,108				3,637				(6,585	)
Unbilled revenue			(921	)			(757	)			(5,392	)			(4,216	)
Prepaid expenses and other current assets			(294	)			(2,572	)			943				(2,310	)
Other assets			(1,261	)			(2,734	)			(1,309	)			(3,110	)
Accounts payable			28				666				(978	)			1,561
Accrued liabilities			7,284				3,172				(2,626	)			(3,230	)
Deferred revenue			596				830				(4,554	)			(1,199	)
Operating leases			(213	)			(149	)			(1,657	)			(1,477	)
Cash settlement of vested phantom stock			(66	)			(168	)			(1,077	)			(9,243	)
Other long-term liabilities			(45	)			181				(2,134	)			345
Net cash provided by (used in) operating activities			16,347				7,532				10,727				(8,686	)
Investing activities:
Purchase of short-term investments			(21,862	)		—					(245,204	)			(287,912	)
Maturities of short-term investments			127,722				63,982				319,639				95,982
Payments for business acquisitions, net of cash acquired			(106,947	)			—				(106,947	)
Capitalized internal-use software			(562	)			(62	)			(1,844	)			(926	)
Purchase of property and equipment			(442	)			(521	)			(1,283	)			(1,355	)
Net cash (used in) provided by investing activities			(2,091	)			63,399				(35,639	)			(194,211	)
Financing activities:
Proceeds from follow-on offering, net of issuance costs						—					—				3,452
Payment of deferred IPO costs			—			—					—				(3,650	)
Payment of deferred Class E offering costs			—			—					—				(192	)
Purchase of treasury stock			(674	)			(3,019	)			(1,020	)			(3,076	)
Proceeds from stock option exercises			—				2,108				132				4,065
Payments of contingent earnout liability		—				—					(3,879	)			(1,923	)
Payment of deferred financing costs		—				—					(713	)		—
Net cash (used in) financing activities			(674	)			(911	)			(5,480	)			(1,324	)
Net increase (decrease) in cash and cash equivalents			13,582				70,020				(30,392	)			(204,221	)
Cash and cash equivalents – beginning of period			141,683				115,637				185,657				389,878
Cash and cash equivalents – end of period		$	155,265			$	185,657			$	155,265			$	185,657

Duck Creek Technologies, Inc. and Subsidiaries Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited)
		Three Months Ended August 31,								Year Ended August 31,
($ in thousands)		2022				2021				2022				2021
GAAP Gross Margin		$	47,529			$	41,090			$	174,623			$	150,264
Share-based compensation expense			519				839				1,447				3,166
Amortization of intangible assets			1,325				1,165				4,627				4,724
Amortization of capitalized internal-use software			671				534				2,355				2,040
Non-GAAP Gross Margin		$	50,044			$	43,628			$	183,052			$	160,194

		Three Months Ended August 31,								Year Ended August 31,
($ in thousands)		2022				2021				2022				2021
GAAP Loss from Operations		$	(2,132	)		$	(4,128	)		$	(5,368	)		$	(15,366	)
Share-based compensation expense			2,795				3,572				9,524				12,877
Amortization of intangible assets			4,615				3,972				16,340				15,954
Change in fair value of contingent earnout liability			—				584				67				293
Acquisition-related expense			821				—				1,038				—
Non-GAAP Income from Operations		$	6,099			$	4,000			$	21,601			$	13,758

		Three Months Ended August 31,								Year Ended August 31,
($ in thousands)		2022				2021				2022				2021
GAAP Net loss		$	(2,381	)		$	(5,559	)		$	(8,332	)		$	(16,931	)
Provision for income taxes			87				840				1,291				1,896
Other income (expense), net			636				578				2,277				(431	)
Interest (expense) income, net			(474	)			13				(604	)			100
Depreciation of property and equipment			659				759				2,646				3,136
Amortization of intangible assets			4,615				3,972				16,340				15,954
Share-based compensation expense			2,795				3,572				9,524				12,877
Change in fair value of contingent earnout liability			—				584				67				293
Acquisition-related expenses			821				—				1,038				—
Adjusted EBITDA		$	6,758			$	4,759			$	24,247			$	16,894
Adjusted EBITDA as a percent of total revenue			8	%			7	%			8	%			6	%

		Three Months Ended August 31,															Year Ended August 31,
($ in thousands)		2022				Per Share				2021				Per Share			2022				Per Share				2021			Per Share
GAAP Net loss		$	(2,381	)		$	(0.02	)		$	(5,559	)		$	(0.04	)	$	(8,332	)		$	(0.06	)		$	(16,931	)		$	(0.13	)
Add: GAAP tax provision(1)			87								840							1,291								1,896
GAAP pre-tax (loss)			(2,294	)							(4,719	)						(7,041	)							(15,035	)
Share-based compensation expense			2,795								3,572							9,524								12,877
Amortization of intangible assets			4,615								3,972							16,340								15,951
Change in fair value of contingent earnout liability			—								584							67								293
Acquisition-related expenses			821								—							1,038								—
Non-GAAP pre-tax income			5,937								3,409							19,928								14,086
Non-GAAP tax provision applied at a 24% tax rate(1)			1,425								818							4,783								3,381
Non-GAAP Net Income(1)		$	4,512			$	0.03			$	2,591			$	0.02		$	15,145			$	0.11			$	10,705			$	0.08
Shares used in computing Non-GAAP income per share amounts(2):
GAAP weighted-average shares - basic and diluted			132,576,783								131,733,254							132,205,020								131,114,791
Non-GAAP dilutive shares (using the treasury stock method)			1,292,551								3,022,585							1,292,551								3,022,585
Non-GAAP weighted-average shares - diluted			133,869,334								134,755,839							133,497,571								134,137,376

(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.

(2) For all periods presented, the Company had a GAAP net loss and non-GAAP net income. As such, outstanding potential shares of common stock are only included for the calculation of Non-GAAP earnings per share since these shares would be anti-dilutive for the calculation of GAAP earnings per share.

		Three Months Ended August 31,								Year Ended August 31,
($ in thousands)		2022				2021				2022				2021
Net cash provided by (used in) operating activities		$	16,347			$	7,532			$	10,727			$	(8,686	)
Purchases of property and equipment			(442	)			(521	)			(1,283	)			(1,355	)
Capitalized internal-use software			(562	)			(62	)			(1,844	)			(926	)
Acquisition-related payments			358				—				358				—
Free Cash Flow		$	15,701			$	6,949			$	7,958			$	(10,967	)

FAQ

What are Duck Creek's revenue results for Q4 2022?

Duck Creek reported total revenue of $80.7 million for Q4 2022, a 14% increase from the same period in the previous year.

What is Duck Creek's subscription revenue for fiscal year 2022?

Duck Creek's subscription revenue for fiscal year 2022 was $153.5 million, reflecting a 23% increase.

What is the SaaS ARR reported by Duck Creek for fiscal year 2022?

Duck Creek's SaaS ARR increased to $169.3 million as of August 31, 2022, marking a 25% rise year-over-year.

What is Duck Creek's outlook for Q1 and fiscal year 2023?

Duck Creek projects Q1 fiscal 2023 revenue between $75.5 million and $77.5 million, and full-year revenue of $328.0 million to $336.0 million.

What was Duck Creek's adjusted EBITDA for fiscal year 2022?

Duck Creek reported adjusted EBITDA of $24.2 million for fiscal year 2022, up from $16.9 million the previous year.