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Duck Creek (DCT)

Duck Creek Technologies develops industry-specific software that helps insurance carriers to deploy and manage their products and services.

Company profile

Ticker
DCT
Exchange
CEO
Michael Jackowski
Employees
Incorporated
Location
Fiscal year end
Former names
DUCK CREEK TECHNOLOGIES INC
SEC CIK
Subsidiaries
Agencyport Software Corporation • Agencyport Software US Incorporated • DCT Security Company, Inc. • Disco Topco Holdings (Cayman) L.P. • Duck Creek Technologies LLC • Duck Creek Technologies Limited • Duck Creek Technologies Pty Ltd. • Duck Creek Technologies Spain, S.L. • Outline Systems LLC • Yodil LLC ...

DCT stock data

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

30 Jun 22
1 Oct 22
31 Aug 23
Quarter (USD) May 22 Feb 22 Nov 21 Aug 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Aug 21 Aug 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 141.68M 141.68M 141.68M 141.68M 141.68M 141.68M
Cash burn (monthly) 68.97M (no burn) 1.79M 721K (no burn) (no burn)
Cash used (since last report) 277.69M n/a 7.19M 2.9M n/a n/a
Cash remaining -136.01M n/a 134.49M 138.78M n/a n/a
Runway (months of cash) -2.0 n/a 75.3 192.5 n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
1 Jul 22 Huston Eva F. Common Stock, par value $0.01 per share Buy Acquire P No No 14.25 3,516 50.1K 76,901
24 Jun 22 Sunil Rajasekar Common Stock, par value $0.01 per share Grant Acquire A No No 0 1,474 0 1,474
25 Apr 22 Kevin R Rhodes Common Stock, par value $0.01 per share Buy Acquire P No No 16.66 3,000 49.98K 137,393
13F holders Current Prev Q Change
Total holders 167 180 -7.2%
Opened positions 32 33 -3.0%
Closed positions 45 38 +18.4%
Increased positions 71 89 -20.2%
Reduced positions 43 38 +13.2%
13F shares Current Prev Q Change
Total value 3.85B 4.34B -11.4%
Total shares 133.9M 128.5M +4.2%
Total puts 380.3K 190.4K +99.7%
Total calls 177.8K 179.5K -0.9%
Total put/call ratio 2.1 1.1 +101.6%
Largest owners Shares Value Change
Disco 52.68M $2.64B 0.0%
Kayne Anderson Rudnick Investment Management 16.74M $248.61M +24.1%
Echo Street Capital Management 7.43M $110.28M +40.5%
Vanguard 7.18M $106.56M +7.6%
Brown Capital Management 7.07M $104.94M +24.9%
TROW T. Rowe Price 5.49M $81.54M +0.7%
BLK Blackrock 5.13M $76.12M +64.3%
Temasek 4.6M $68.26M 0.0%
JPM JPMorgan Chase & Co. 3.75M $55.73M -14.4%
AIG American International 2.71M $40.26M +1.3%
Largest transactions Shares Bought/sold Change
Kayne Anderson Rudnick Investment Management 16.74M +3.25M +24.1%
Echo Street Capital Management 7.43M +2.14M +40.5%
BLK Blackrock 5.13M +2.01M +64.3%
Whale Rock Capital Management 0 -1.79M EXIT
IVZ Invesco 58.31K -1.57M -96.4%
Brown Capital Management 7.07M +1.41M +24.9%
JPM JPMorgan Chase & Co. 3.75M -630.11K -14.4%
WFC Wells Fargo & Co. 1.05M -506.25K -32.6%
Vanguard 7.18M +505.14K +7.6%
STT State Street 1.53M +478.5K +45.4%

Financial report summary

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Risks
  • Public health outbreaks, epidemics or pandemics, including the global COVID-19 outbreak, could harm our business, results of operations, and financial condition.
  • We have a history of losses and may not achieve or maintain profitability in the future.
  • We have relied and expect to continue to rely on orders from a relatively small number of customers in the P&C insurance industry for a substantial portion of our revenue, and the loss of any of these customers or a reduction in revenue from any of these customers would significantly harm our business, results of operations and financial condition.
  • Our large customers have substantial negotiating leverage, which may require that we agree to terms and conditions that result in increased cost of sales, decreased revenue and lower average selling prices and gross margin percentages, all of which would harm our results of operations.
  • Our business depends on customers renewing and expanding their SaaS arrangements, term licenses or maintenance and support arrangements for our solutions. A decline in our customer renewals and expansions could harm our future results of operations.
  • Failure to manage our expanding operations effectively could harm our business.
  • If we are unable to develop or sell our solutions into new markets or to further penetrate existing markets, our revenue will not grow as expected.
  • Failure of any of our established solutions to satisfy customer demands or to maintain market acceptance would harm our business, results of operations, financial condition and growth prospects.
  • If the market for enterprise cloud computing, including SaaS solutions, develops slower than we expect or declines, it could have a material adverse effect on our business, financial condition and results of operations.
  • Increases in professional services revenue as a percentage of total revenue or lower professional services margin percentages could adversely affect our overall gross margins and profitability.
  • Our sales and implementation cycles are lengthy and variable, depend upon factors outside our control, and could cause us to expend significant time and resources prior to generating revenue.
  • Assertions by third parties of infringement or other violation by us of their intellectual property rights could result in significant costs and substantially harm our business and results of operations.
  • Failure to protect our intellectual property could substantially harm our business and results of operations.
  • If our solutions or third-party cloud providers experience data security breaches, and there is unauthorized access to our customers’ data, we may lose current or future customers and our reputation and business may be harmed.
  • We may be obligated to disclose our proprietary source code to our customers, which may limit our ability to protect our intellectual property and could reduce the renewals of our maintenance and support services.
  • We and our customers rely on technology and intellectual property of third parties, the loss of which could limit the functionality of our solutions and disrupt our business.
  • We expect to continue to expand through acquisitions or partnerships with other companies, which may divert our management’s attention and result in unexpected operating and technology integration difficulties, increased costs and dilution to our stockholders.
  • We face intense competition in our market, which could negatively impact our business, results of operations and financial condition and cause our market share to decline.
  • Our estimates of certain operational metrics, as well as of total addressable market and market growth, are subject to inherent challenges in measurement.
  • We may not receive significant revenue from our current research and development efforts for several months or years, if at all.
  • If we are unable to develop, introduce and market new and enhanced versions of our solutions, we may be put at a competitive disadvantage and our operating results could be adversely affected.
  • Our business may be materially adversely impacted by U.S. and global market and economic conditions adverse to the insurance industry.
  • Our customers may defer or forego purchases of our solutions or professional services in the event of weakened global economic conditions and political instability.
  • Factors outside of our control including but not limited to natural catastrophes and terrorism may adversely impact the P&C insurance industry, preventing us from expanding or maintaining our existing customer base and increasing our revenue.
  • If we are unable to continue the successful development of our direct sales team and the expansion of our relationships with our strategic partners, sales of our solutions, and consequently our professional services, will suffer and our growth would be slower than we project.
  • Our ability to sell our solutions is dependent on the quality of our professional services and technical support services and the support of our SIs, and the failure of us or our SIs to offer high-quality professional services or technical support services could damage our reputation and adversely affect our ability to sell our solutions and professional services to new customers and renew agreements with our existing customers.
  • If we fail to identify, attract and retain additional qualified personnel with experience in designing, developing and managing cloud-based software, as well as personnel who can successfully implement our solutions, we may be unable to grow our SaaS business as expected.
  • Any disruption of our Internet connections, including to any third-party cloud providers that host any of our websites or web-based services, could affect the success of our SaaS solutions.
  • Some of our services and technologies may use “open source” software, which may restrict how we use or distribute our services or require that we release the source code of certain solutions subject to those licenses.
  • Incorrect or improper use of our solutions or our failure to properly train customers on how to utilize our solutions could result in customer dissatisfaction and negatively affect our business, results of operations, financial condition and growth prospects.
  • If we are unable to retain our personnel and hire and integrate additional skilled personnel, we may be unable to achieve our goals and our business will suffer.
  • Privacy concerns could result in regulatory changes and impose additional costs and liabilities on us, limit our use of information and adversely affect our business.
  • Failure to comply with the GDPR or other data privacy regimes could subject us to fines and reputational harm.
  • If tax laws change or we experience adverse outcomes resulting from examination of our income tax returns, it could adversely affect our results of operations.
  • Future government regulation of the Internet could place financial burdens on our businesses.
  • Pursuant to the Stockholders’ Agreement, Apax and Accenture have significant influence through the voting power of the shares of our common stock eligible to vote in the election of our directors and on other matters submitted to a vote of our stockholders, and Apax’s and Accenture’s interests may conflict with ours or yours in the future.
  • If the ownership of our common stock continues to be highly concentrated, it may prevent you and other minority stockholders from influencing significant corporate decisions and may result in conflicts of interest.
  • Certain of our stockholders have the right to engage or invest in the same or similar businesses as us.
  • The market price and trading volume of our common stock may be volatile, which could result in losses for our stockholders.
  • The market price of our common stock could be negatively affected by sales of substantial amounts of our common stock in the public markets.
  • If securities or industry analysts do not publish research or reports about our business or publish negative reports, our stock price could decline.
  • We have not paid dividends in the past and do not anticipate paying any dividends on our common stock in the foreseeable future.
  • Our amended and restated certificate of incorporation provides that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware will be the sole and exclusive forum for certain stockholder litigation matters, which could discourage stockholder lawsuits or limit our stockholders’ ability to bring a claim in any judicial forum that they find favorable for disputes with us or our officers and directors.
  • We are incurring increased costs as a result of operating as a public company, and our management is being required to devote substantial time to new compliance initiatives and corporate governance practices. We may fail to comply with the rules that apply to public companies, including Section 404 of the Sarbanes-Oxley Act, which could result in sanctions or other penalties that would harm our business.
Management Discussion
  • Fiscal 2021 Compared to Fiscal 2020. Subscription revenue increased $41.3 million, or 49%, in fiscal 2021 versus fiscal 2020 due to a combination of sales to new customers and increased revenue generated from existing customers. This increase includes the full year impact of prior year sales, sales of new services to existing customers and contractual growth.
  • Fiscal 2020 Compared to Fiscal 2019. Subscription revenue increased $28.1 million, or 50%, in fiscal 2020 versus fiscal 2019 due to a combination of sales to new customers and increased revenue generated from existing customers, which includes full year impact of prior year sales, sales of new services to existing customers and contractual growth.
  • Fiscal 2021 Compared to Fiscal 2020. License revenue increased $2.3 million, or 23%, in fiscal 2021 versus fiscal 2020 primarily due to an increase in new product licenses and license renewals for existing customers.

Content analysis

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New words: user
Removed: derecognition, lease, spent