Duck Creek (DCT)

Brian Denyeau Investor Relations, ICR, Inc.
Michael Jackowski Chief Executive Officer
Vincent Chippari Chief Financial Officer
Sterling Auty J.P. Morgan
Saket Kalia Barclays Capital
Christopher Merwin Goldman Sachs
Bradley Sills Bank of America Merrill Lynch
Alex Zukin RBC Capital Markets
Tom Roderick Stifel Financial Corp.
Bhavan Suri William Blair
Brian Peterson Raymond James
Rishi Jaluria D.A. Davidson
Patrick Walravens JMP Securities
Call transcript
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Ladies and gentlemen, thank you standing by and welcome to the Duck Creek Technologies First Quarter and Fiscal Year 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there'll be a question-and-answer session. [Operator Instructions].

As a reminder, today's conference call is being recorded. to conference like host, to now Mr. would turn over the your I Investor Denyeau Relations. Brian of may you Sir, begin.

Brian Denyeau

quarter XXXX, you. to conference first Duck Thank Creek's fiscal Great. Good earnings call afternoon for November ended on which and welcome of XX. year the

Today's with our call Mike is found business release our results Officer; and as can any today relied Chief CFO. A future. should issued Jackowski, these Duck regarding press Vinnie products, Relations be today, conclusion statements Chippari, financial expectations results, being These call which statements statements uncertainties me of the made website. Creek's are current available our customer may of subject management's Creek's forward-looking as complete is to not impact representing assumptions Executive the On will our today on Duck other of and the following in call on disclosure Statements is be Therefore, based date. and as of in Investor and are and available section views replay the risks, call. a on matters. operations, be updated recorded include this our on be our not and may demand, of COVID-XX upon subsequent of the

With fair let Mike. intangibles, also in tax liability to of value in amortization call to our being release to investors. of We the expenses, change press the over me to effects that differences contingent measures will measures information refer provided is compensation adjustments. certain the A additional of non-GAAP related stock-based and turn these to earn-out provide financial non-GAAP GAAP reconciliation of with primary

Michael Jackowski

year pleased got I afternoon, good hope start healthy. safe all in XXXX. a fantastic Duck off Creek And fiscal that and report you Brian. you, to remain to everyone. Thank I'm

underpinned overview a this as I'm to all revenue SaaS the to metrics. our profitable Creek adjusted quarter, which the We revenue million, and which our excellent of growth. is We XX% million, And SaaS are first $XX.X for share quarter in $X.X $XX.X P&C yielded total OnDemand. the great as for our momentum year-over-year, revenue, results market our XX% of were industry. performance global further our our excited million. momentum well, financial Duck EBITDA reported choice sales year-over-year of platform business an quarter the up in We quick position as which by was we derived the SaaS we had guidance of subscription which offering from demonstration continue have in of is in of above solidify with with strong

During I'm customers. had industry, which are four Creek's key the would quarter system massive our like on global Carriers than as to premium. $X P&C to annual our Duck the mission we more trillion very product had additional is drivers details core industry and add-on written with slowest been some in a On traditionally the call, and is transform provide insurance then the quarter in has this Creek review the our deals quarter, our industry. OnDemand results, pleased wins OnDemand with with new four today's first existing wins key P&C in of quarter. performance, that direct several digital the Duck market the to of I functions business. time, highly code-driven maintain that are and of inflexible, nature same specific be innovate and that meet system a systems an competitive the service compelling heightened today's can on-premise, experience. face preferences the billing At carriers faster needs today Core must manage dynamic also rules, used insurance products, where applications the consumer manage provide carriers dynamic lifeblood demand are market. the business insurance an P&C industry. cannot regulated and of largely solutions and of increasingly changing to policy, unique the carriers core difficult claim Traditional expectations applications complex are and marketplace the often powering carrier that and

of respected customers. has Novarica, drive solutions recent Creek profitable carriers. been offering, were our insurance insurers facing engagement available This not analyst and the dynamics. industry helping and greater rules in a success conducted innovation, systems retiring to dramatically a the challenges legacy belief modernizing IT in fact, changing users, improve business core In rapidly America, growth, their XXXX our P&C platform, in and the business costs identified reduce OnDemand, North meet top code is and and survey products code by to as than low that reinforces challenges boards Duck priorities enables of as beyond. to the codeless address of the our is SaaS market recognize and these cloud cloud mind with teams product incredibly Creek is configuration to level top our more well transformation The among to developing years efficiency, and a if, them for carriers their move plan of by to allows quickly business for make matter a Duck directors. which changes and when, digital that six long-term C positioned fundamental not low enables and key developers, facing to customers accelerate executives

SaaS for strength industry believe the over time. driver can being improve of place can like is fully Gartner, turns analysts Creek in future-proof a Duck into experience, directly also systems our in Creek and important Magic that With for America. user as in Duck and of seamless to wins We in Duck evolve Gartner, its Creek with featured Creek. built Duck a the persona-based its of to Gartner so of according strengths XXXX sold specifically their our platform SaaS SaaS It's only offering platform. the of customers in who platforms of be We business believe with upgradability Duck and into integration our more by third XXXX. leader as grow an provide performance. themselves cited Creek North integrate and experience. to and important its OnDemand core user quarter a our of competitive leading differentiation recent differentiation we Quadrant note, were a first solutions XXX% P&C last.is platform customized carriers' flexible also have core ease parties most running recognized area core OnDemand, business that We extensible, this OnDemand vendor essentially The

in that We SaaS are a fully everything as first committed to do. cloud our strategy we company

on Our SaaS profile platform go-to-market Creek focused selling and OnDemand P&C the the brand elevating are leading efforts as industry. and Duck our sales solely for

industry, in that is and a on is and more success $XXX reinforces Creek leading the OnDemand XX customers platform with recurring than SaaS above comfortably industry P&C Duck revenue continued recognition annual the Our SaaS cloud platform million. that

position a in the Our of successful demonstrated system beneficiary P&C track its generational makes core as to puts primary a deployments cloud-based be record platforms. transition industry us great to

like is latest few these And market our spend wins. I'd to performance the highlighting quarter of moments some of momentum. example first Our a exciting customer

industry First, to execute with highly of management writer then we efficiencies. enhance non-core exciting reinsurance One education. an program distribution began evaluation ability focused construction respected Creek win SaaS safety Builders example is the will with and full products, is insurer, customers Their Mutual of insurance on known is that expand management be Builders leading relationship competitive process. a industry, both strategy. digital maximize highly Builders aspect after modernize core Duck extensive standalone online our the construction is of commercial and and Insurance, This deliver and a Mutual systems value OnDemand selected exclusively our solutions. their in transformation our their internal on for to operation the products, customer a land this experts who entire and and our great experience to suite our using

tier selected in carrier leverage that by policy OnDemand billing business X Creek tier a commercial also small on-premise existing notable XXXX. will launch Duck Duck early to one insurer product were an we customer. Creek is a new and This Second,

this However, first represents deployment. OnDemand contract core system their

the this aggressive One timeline key ability for launch. of our win product this the meet very to for differentiators was

adding OnDemand socially organization for workers' a Third, win the add-on strategy. existing one an [indiscernible Asia responsible wins the another tier distribution with company's Creek region. in our Duck important we an Creek that value Australia. be Program industry of we agent compensation its another relationships of New by the example will quarter Wales in an the customer drive customer manage the Insurance signed Duck relationships. will in and ways X:XX], American Pacific for suite deployment manages how complement to support financially modernization digital was new in Duck to management can XXXX and full important momentum one for carrier, during growing finally, expand highlights is coal Creek. program the And Group, win on-demand yet expand its that overall and and customers and They better This win multiple This with implementing South our greater broker policy Great their

Now our strategy. turning product to

We continued new advance to continuously on-demand to and capabilities or solutions customers. our deploying

With in Producer next investment portal designed in addition experiences Producer, leading in our Creek components, library a and data tool experiences investments specific are discussed serve experience and channel. enables a call UI in our user themes, believe the carriers loyal common design hub to leverages to specific experience drive we as product insurance Duck we to sources to to scalable on product recently to deliver last ecosystem. appealing, and configuration Creek data productive incorporates reporting analytics tool the easy are and and enhanced standards partners. We Duck with Page carriers a Duck for Creek research quickly our real-time carriers bring for analytics market We that standard. In change advanced reports to tools insurance platform that low industry carriers distribution and P&C integrates create a these and SaaS digital across existing low and called with our other and extensive modern third-party carrier's both brokers of true processes. and analytics investment This This business heavily a Creek that platform, of new the their In the our help offer Duck Creek, code Duck invest we a in to deliver experience use. into we we user our data other regulations. persona-based Producer analytics. and front-end designs, business way digital them space, design. needs to mobile Duck life. using the includes result workflows to Builder both enables and Creek enabled accord-based streamline responsive Page our in our detailed and user mobile enterprise allowing system, have carrier resulting in visually insurers Insights intuitive Duck Building persona the workers' core recently data extended brought more helps that gen meet tooling Insights, our such design, from its Insights, that systems. that intelligence now and earnings code platform, Creek application distribution agents, offering, for state-mandated Builder, modify compensation design enables lines,

carriers the ways their ecosystem the online app extending through Duck store. or our Exchange, also of data are in Content We third-party expansion which can Creek with leverage the

with We integrations leading add continue to invest partners. shared in and tech the and ecosystem multiple

we an As open customers. is Limit serve strategy with payment choice better great partner market. how flexible of compensation Split who announced offer our provides InsurePay example, payroll flexibility both for This Studios integrations the and our capabilities pay-as-you-go workers' example a recently to and and

I'd quarter see Before results. set are I our diverse And in insurance by increasingly over to wrap like recent continues Creek to geographies. an Duck across how of Vinnie, saying OnDemand and interest we delighted are to grow. turn carriers, Customer first with lines wins we product it pleased to up

market embracing the benefits are We cloud. multi-billion operational dollar a leader and of that shifting dynamic the positive to in the financial is

to challenging I to Duck that as our success profitability. only I'm finish of confident such excited deliver As and Vinnie, extraordinary of work thanking to Creek business, I'd achieve growth turn during high we our levels are partners helping beginning our these over hard commitment at date, by like am opportunity the to Vinnie a substantial will times by improving over customers I success and now of for and the pandemic. employees, CFO, to their our you. to us Chippari.

Vincent Chippari

guidance SaaS review and quarter for Thanks, quarter and SaaS rates. performance primarily is prior total In which as represented Mike. in subscription existing and strength licenses, XX% annualizing software the in subscription on-premise XXXX. revenue to QX, the million, the to XX, was of Maintenance detail our revenue, to of quarter line on-premise show in with the provide reiterate I revenue. year-over-year revenue November License $XX.X Within SaaS million, revenue Total demand results are we products, I'll year. and year-over-year. XX% the overall an XX% of up $X.X business. pleased benefit to Today fiscal $XXX.X recurring continued up X% business. $XX.X period. the from and X% year-over-year. of utilization was year-over-year, expectations. our results of was and want up which the period, subscriptions our recognized customer. revenue, Services well first high SaaS was of up last year by add-on million, quarter due continues ARR strong million, excellent Services first revenue our XXXX second quarter of fiscal of to calculate $XX.X XX% momentum from full the tied an our our to $X.X sale that million ARR, revenue comprised total and our revenue we in our first XX% revenue to the reflects up XX% with the subscriptions prior-year up XXXX, was performed in from solely month revenue, million, and was

subscription reminder, can a impacted of timing. contracts a SaaS ARR and of month snapshot period, As is they the during are revenue be time generating in last that by

generating we For in any Conversely, high in XX, in the as of and XXXX example, QX deal included ARR. not SaaS was in that qX. November a QX began and generate large range. largest QX our generating in signing retention net did revenue our in at historical dollar XXX%, ARR was began our quarter had of QX revenue end

rate to growth of already new and sales retention range products of for operating Over has growth SaaS by of platform. the customers, retention our past in XXX%, been two products to a driven a rates, years, XXX% dollar our high net on existing combination DWP of

detail. Now, let's review the income statement in more

in approximated are reminder, provided a XX.X% margins non-GAAP in non-GAAP a margin to noted, otherwise profit of press financials XX.X% metrics quarter $XX.X Adjusted a was quarter the all unless release. gross the of gross Subscription or a to GAAP in margin This subscription As compared of from pronounced and benefit certain expectations in from by fiscal quarter timing recent million first our reconciliation of a gross we the gross margin XXXX. XX%, contracts. strong as expenses exceeded running our planned growth revenue benefits we continue quarters did to both favorable certain and than driven in items. lower revenue scale more and include generate timing, earlier and from than recognition

be We QX. sustainable range unsustainably of margins are the While XX% in to will QX track believe slightly remains we the high SaaS services And the recent and towards believe margin decreasing quarter as continues expect above solution, performance expectations. it see demonstrates our XXs margin utilization decrease our of of is XX%. current to subscription high with scalability the of our term do long-term services organization. pleased level for our to moderates, we our in the a a services margin near not in Professional which performance,

of of market. down revenue, Turning $X.X of R&D or operating prior technologies. the to and of XX% were year. costs as product from XX% million as prior also marketing percentage costs million in expenses, R&D on XX% revenue or Sales year investment slightly slightly prior a based expenses $XX.X we expense savings continued were and expand Sales was a marketing percentage down covering increased or offset year $XX.X revenue. revenue, from versus all the engagement to reflecting global and COVID-XX opportunities investments footprint our events. compared on to in period. are XX% properly XX% by from TV million of XX% efforts related was the partially period, revenue G&A in expense increased continued the prior-year This sales prior-year and ensure to

of million secondary During November the quarter, XXXX. stock offering with we completed $X.X the associated in incurred expense

a quarter basis, EBITDA a was with to the operations was cash $XX.X the prior-year G&A outstanding. margin. of X% for in average ended expense, cash weighted a million this sheet the for Non-GAAP $X.XX EBITDA negative On Excluding we or million was $X.X with period. was and in profit adjusted of in cash and the loss EPS we balance had GAAP our the million. million for line expectations. had XX% quarter from the the net $XXX.X Adjusted and shares year Coming XXX.X of on cash Free in was million equivalents based loss quarter prior $XX.X compared to and million. gross the flow, $X.X debt. million $X.X $XX.X of We quarter flow quarter million in negative revenue, and no quarter

and the is flow bonus I'd of our timing The for awards The with due collections and to higher settlement to year equity to second with million the first of year due IPO. to $X.X is cash fiscal typically beginning increase compared in quarter use for prior $X.X payments payments. cash million finish now point in of quarter. bonus international the year guidance related this like low the annual to

We $XX $XX.X XX.X%. to expected is to million $XX to to projected gross expect revenue total million. $XX.X revenue Subscription XX% million. margins are be at Adjusted of

EBITDA net We share. $X.X adjusted expect $X.X million to per our $X.X non-GAAP loss to is to approximate or negative and $X.XX million million $X.X million expected of

the following. full XXXX, the raising outlook we're For fiscal year our to

projected expect of million expected is and $XXX at gross to to total XX% We Adjusted be revenue million. $XXX are million $XXX to $XXX to XX.X%. revenue million subscription margins

our to $.XX and be fiscal is of between a EBITDA and for million non-GAAP or million to second adjusted $X.X share loss full There pleased loss $X.X like to would of year, $X to two $X.XX. fiscal revenue per $X Overall, are approximately to I in expect our particularly XXXX million services subscription our We revenue know. million expected for growth. the positive non-GAAP with things net outlook that related we're professional our the quarter updated

unchanged. full First, for professional for year essentially the our expectation is services revenue

our demand year. our have We strong and new services the there into see engagements continue dynamics services are in quarter, second of sizable revenue for impacting to In the good the second visibility half two growth.

from timing than First, quarter have we we engagements perspective, previously the during service starting expected. fewer new second

a Second, history. an year in of as revenue and company exceptionally the very services off summarize, was difficult highest quarter got to Duck beneficiary Duck revenue in highest we It prior industry's strong grow the year the quarter. we comp was continues our primary transition to we core Customer fiscal P&C remains To OnDemand be services face quarter strong very QX well and a to believe cloud-based a XXXX. in Creek interest start are of positioned to systems. the Creek

We long-term rates Q&A. subscription with the foreseeable for combine believe like can believe scalable When growth we high generate which Operator? to future. of we'd this shareholder that, With stages are value. this strong call growth a we early structure and we open you sheet, revenue cost the at transition, support will the balance and for


[Operator Instructions].

question first Morgan. Auty is Our J.P. from of Sterling

Sterling Auty

business see what around moving kinds the over get quarter. is is priority Mike, about win the the thinking that seeing comment, maybe just just migration the I cloud for timing instead the of books like? when you product terms the in to of to And I about of marry we what expansion win mean cloud, deployments brand the for kicked in looking the that some the talk to made your off, cloud that initiatives kind of with Maybe one traditional of just to top bigger SMB new by want tier of new these to wondering of might

Michael Jackowski

a let from always it that terms obviously tier represents for In establish It of OnDemand we and new one. to migration, break new within anytime our tier expand well, In very the a excited opportunity an relationship for we're me down. ones, opportunity of have type us there. cloud then

to the more a look Now, to this we on-demand, we're on going ones, with as from of cloud over in see your they're although tier seeing first implementation. want an and in when in interest terms strategy, great a mentioned have back ones, question and at starting their being the cautious ones out a past. tier bit smaller of I cloud strong demand on-premise little migration But initiatives I bit tier overall

won OnDemand an And they XX:XX] reason a that do it's line tier looked And that. at where in new with the was I speed. a this for do there's they [indiscernible that many So provided do and with them to one meaningful Duck case, it solution speed. think alternatives contract. we could And it example product Creek why

seeing OnDemand. up past. experience, done on-premise of And terms into them Creek conversions customers we in installations, we're installed that on-demand. We've their And are them moving taking and we've those there, in overall what Duck customers fact, In Sterling, have the do picked on-premise with and production. with three in in out

have that know all and processes the to get of skill we sets we that the and tooling have So the we done.

making we're one that doing thing that's strategy. that the focused sure their are that well Now, is we on our with aligned customers with

did with do cloud and the is them carrot on that approach forces do So, want We them the to as what has that that an terms to with force that. stick or into for leave them opposed would in a bake and not to mandate they the do the with economics and to like our customers. migration our for we anything into issue essence financial

are actually make see So, on progress going think now. that the right in deep And several we year. I you're to discussions throughout with us customers

Sterling Auty

question And you. follow-up then, Vinnie, one for

was On of else? are Where margins, that Or seeing a you what the savings? timing gross hiring below something running mentioned expected. rate expense those bit the run you that is or

Vincent Chippari

It's hiring, which QX. say is a up lot a timing I'd things. largely biggest is has of the of hiring in of couple already picked – factor

start they're to their ramped And kind again, in of catching last that generating then, They're revenue costs real-timing of through positive still hadn't we'll from some on we a couple had cost year. impact system. won't that see secondly, deals started of some so QX. fully that. back really So, building yet. the on we're getting favorability That And the that kind items up


comes Barclays. Saket Kalia question next from of Our

Saket Kalia

you. of you and the services Can look professional engagement a Mike, just thinking sort the for you're ecosystem months? XX the talk on little XX about out bit with how next partner about increasing maybe your channel first or you as

Michael Jackowski

And our I've in ecosystem, from implementation our a grow but quite look And and to look that for then, made progress think upon of we of our own partners. in bending allows than and at customers. we within the won't as XX integrators subscription today, Accenture, professionals have our internally rate our scale that partnerships scaled report Creek at build revenue, look delivery look through past, this, And within within Duck to organization, been have one and pillars formally then, practice. to numbers Creek respective about get of we've in we the always of our doing that our percent have when think professionals overall we a we we And at they work look training late. the the seen partners. and mix think at and trained business, key directly implementations it the those the our delivery done organizations, about services consistently more Duck subscription to they systems with integration those our of it's I we future. we've to and that We chosen it's take Duck over we talk quite that systems them well. have And noted nicely. at in And Creek. our lot strategic and of from we out carve-out the come part the revenue routinely our are have – We've on intention lot when higher slower partners a towards as we're essence, lean then, and firms. a at overall it those of University own metrics X,XXX X,XXX over And practice when

with And latest our to great a Saket, up to think our of we're we want questions, projects. our hand-in-hand that then, them Creek integrate them customer University working get are really our how Duck that at to in products, new So, is means solution with some product are them, And our new certainly, sign. team SaaS we with training terms using our of partnering your both techniques speed to a offering, in with them we continue how And our of estimate architects to ways. in we implementations. as

then collectively partnership our They're strong bit. helping just in helping us opportunities, with one tier recently, can partners work on practice. uniquely relationship then, a a we identify are value teams in along strategies. many we've that go-to-market us, and Pacific customers investments I proposition also And with to still some and Accenture. to doing also shape our them the for projects, us really just including have immense recent but their doing. really, some implementations and great their where Asia new but work we're some think of opportunities working digital note, customers They're Our quite two we us larger Cognizant tier seen make at with some a help our And ones for and

partners international with we're So, these well. working getting tailwind with some as

Saket Kalia

little of product bit question follow-up finance A you. combined. my for maybe for and Vinnie,

question. you have a little You on this can bit about the the quarter. touched may gross subscription prior But in talk margin just this

I to timing product there should – Or infrastructure terms think in we anything of the that helping of over that's the touched that? Is that's earlier? think there on I about we think or note were you more XX%. the there

Vincent Chippari

in to that of scale timing should it a you more benefits. normal kind issue as think think about I addition

combination running timing a items, to my came for I and ties recently installed and scale which then timing to got hiring, below two which incurring quarter, obviously, margin, by plan. that out, a hiring benefits the the we're bit base. back on not all of that that built in So, And items costs have is, getting two actually But we answer from of what the that a customers is of some running, a mean infrastructure's signed. in at being XX% the significant couple pace Sterling, benefited expenses of deals number

come we'll moving will bit. margins But we're a on year-on-year, little a benefits. down get subscription think do in normalized continuing scale a And up to we be basis, So, QX. bit


Our of next question comes Goldman from Chris Merwin Sachs.

open. is line Your

Christopher Merwin

wanted I a platform. low-code ask the bit to about

system for out You've now. the be down the this market implementation times seeing the catalyst a handling extent had increasingly go implementation ones these all? the less? you some But scale carriers are, that of for that more comfortable time of And and if more that cost at they time are as business configuration, in I be to could that users the could guess, are larger are migrations

Michael Jackowski

that and correct it into production is up, users lot can so them it's to our you make to lower our of as rule low-code And get our is allow one noted, log implementation carriers more of in changes. platform benefit quickly. are business and ambition do we a you speed And intent cost, always

designs. a the maybe product it's product rules technical design technical and hierarchy, risk more And some during overall is rating, as a which people combination. It's some initial Now, we dimension implementation, as have I that that be which pricing to did to design fully appetite sometimes people well of that business thing looking platform there's are algorithms the with One rules. call at mobile-centric then, well. more our doing add some allows designing is now advanced elegant recently and as low-code Builder, platform integrated what user experience Page and that we

One we get that specific time that in were can't product, we really and disclose it. could live initiative. industry-leading we show with that contract noted the I where at to a and awarded more it earnings because referenced to reason carrier have the speed. Munich we not we get launch is speed, that could into this liberty seeing Specialty days, frames I'm But point to measured going the today's was to they're are an carriers a going very reference another, last and thought saw I Re in we our the able implement in And is time live. go differentiator frame I about XX one they're to months, a they live. seeing as in platform back in So, I platform the were short our which think tier And call, then, why call. with Insurance get

examples. good really two are those So

Christopher Merwin

follow-up as retention up sequentially It the really recently. you some has a drivers bit bit attached? Vinnie. a relates talk there, again most Net last couple about specific a product for particularly to in quarters. stepped strong Can of it of just little been Maybe new the

Vincent Chippari

for the XXX% been eight in the quarters. to rate range retention net XXX% of past Our has

that's of that a obviously, category. quarter the top a so end couple last It the skew booked quarter, heavy the expand versus of or given little or the of So, quarter in been new any more In a deals last quarters. bit the based a in the we've or range. quarter land happens in at might profile on that two, the little

to land So, at existing we've a getting been of bump about run tend do we from base. expand. a course XX-XX over customer periods, the longer But and

quarter So, in skewed expand to we've the little just last or been a so.


from next Brad Securities. Sills Our question comes of BofA

Bradley Sills

wanted made of things coming ask the I with to wins comments new Mike, these the about earlier, in some around outside core.

smaller quarter, kind give customers going points should level expect you the Is mentioned of does more out a into of a these management, expand perhaps better into the bigger this interest accounts? distribution and road, forward trend see this You you where the entry some and down we they going – into start reinsurance. view

Michael Jackowski

into non-core assets. that now non-core couple talked to we've assets then those our about opportunities Mutual to to with we expand stand-alone on point on about if with And have lower it of leads Builders great glad hope have done build a the coming example to remind relationship, it. a bookings of think our build assets software a core accounts core we've think do landed we and the continue other you the confidence And is our then And over of of the that. to And from assets. enter outside Certainly, account, see picked core the that in entry of expand customer of And other in we additional assets XX% to have products. a at where product years, we've to look that basis. a customers our I couple sales and strategy our we everyone, past, up can broadly I and we just about bookings last develop where new XX% the is from offerings. I'm run

to often this us view stand-alone and it's having variety across It's these happens so, something run And to assets, platforms having conversation me to me thing. and approach that of run And don't think think to value engage other Creek. I they a assets we this of with from going be only lot as materially well. that to difficult that serve with can that is a swing products is going more. point important legacy just customers product just add for and balanced for or is Duck reasons a is well. why a But They say, good more more having strategy also in

implement Just value to very quickly. allowing very, carriers

a is part of it our strategy. So

Bradley Sills

question, year. for, if option the that's on may, now interest I I almost level been a multi-tenancy One out on think,

or not to new just in curious uptake get commentary quantitative interest, in also Just but on your deals, expand. qualitative and

Michael Jackowski

pleased What on multi-tenant. I'll say very progress with is the we're

We are seeing growing interest and adoption of platform. the

multi-tenant. the of say some for multi-tenant, going wins preferences seeing that's or our there. their tenant that terms always variation carriers single to recent we're were of out I'm in And in quarter

to expect of are at applications. OnDemand core scale of we our Creek mode over So, those the those of we And operating run tenant our future. long-term foreseeable in Duck applications, of with customers essence already though, production. mixed And two-thirds I core those and for – emphasize, this multi-tenant are that margin XX customers, over single XX that want are this running targets to in over running

our on we're really And be So it to going multi-tenancy scale. margins. SaaS target we long-term dependent that to hit at isn't feel

at. revise watch but where We as might So, some adoption just take to us we we're multi-tenancy then got with improve, what we're with think happens those will we on, comfortable we've targets. adoption. And very see future help of

Bradley Sills

follow-up, And one then may. if I

in you a customers, for. to they're in CIOs about se But that on know feature these – multi kind where to industry the many not going it's is they're asking where tenancy, insurance like. eventually. they receptivity customers, If map, something looks but in just have know Is the you with road a have road not what have release to to glad available – companies the as of and or you kind map regard go the per with interest that the sure see you of of even step conversation think are therefore, this today, back there and ways, I'm that

to are terms Just map? ability they saying in kind of interest of qualitatively, their their road and go multi-tenancy what and

Michael Jackowski

where see that where our that we're you more repeatable a deployment the we're overall philosophy to more or leads things basis. heavily really move some I more of will their functional they're up multi-tenancy of much and not in and their but know say investing that. in conversation, have their I'll production say them. much on depending eventually their that they on when moving that covers the upgrades it, it's I the now on architecture, that of to conversation, because control more them, they they to it's CIOs under you're the they you conversation from we're those we on be And as serves away have in to I may their can many technology them. – a talk carrier, as doing continuous a feeding years SaaS own think think processes not are be impact and integration, I change, management in you're processes doing some the a but the to CIOs, when CIO end, certainly Even change where into aligned right? single-tenant picked and think So, into And advancing more to at an solution where as a continuous with business to looking differentiator. they to a And processes, the processes and today place it's or move they're parity, optimized on – impacts it may of quite of of But Because side organization. pipeline that, their

your working question, think going I back that we're So, on this initiative. to pleased they're

today, and go think of we're what of for shows CIOs carriers works with going go and over dealing what signals a model And with the they I we're in forward. I of force and to that moving on going realities But issue us we looking with to to that time. want them multi-tenancy today we're a and them journey it with but think the are the takes not know them. today, do market terms


Markets. from Our next question RBC Capital comes Alex Zukin of

Alex Zukin

SaaS I'm to Is last ARR right seasonal counted? number on this deal the to that a that in you fluctuates order. realize to number. level you quarter-to-quarter. going it start I signing color get impact the Is if back had Vinnie. dollar few some given it And seasonality been for ARR trends the look us get don't to possible years just there. counted about but that aspect, had basis? two the of But that million? appropriate that of quarter? from to you a SaaS it Give think a it metric, larger then going way guide to what's next in high didn't mentioned go with reverse I'm Vinnie, is

Vincent Chippari

Number the quarter a one, given in it just deal that. outsized. hard expect solid It on can any largest size was It to deal. It's what to QX, going not was individual say single deals. we're in but the wasn't really give deal for you good

through gets of about That So, I'm – deal, booking, provisioned just customer. the back kind going or ARR. that days. the recognizing a generally is When XX contracted deal how deal service go revenue is sign to takes once begins available into or that deal a to the we

quarter, it not quarter. we the sign more does typical into it deal the is that in make if not than late a So, it

QX a QX. So, of quarter really QX where bit strong generating little ARR in was outlier by we really in provisioned actually was had every was the sold of end we growth the that an deal because revenue

think that's I way So, at I'd that. look the

quarter-to-quarter are In difficult terms is a trends trend Because really historically. of deals, QX, low-volume, quarterly you we to on it basis. at can consistent get a high-dollar look

be going bit was you the But QX QX larger the without say QX tend usually industry deal is million very over quarter-to-quarter we inconsistent. slow positive. growing do a Obviously, to quarter numbers. in little the really QX, about QX trends by – we quarter. quarterly periods to to it, time a longer I'll $X are the So, a to ARR continue in that think give historically. than in from the ARR growth want

good us year. a So, got start. growth we're And really expecting we off through the that good still really to thought

two, quarters really So, we be three expect to and positive. four,

Alex Zukin

Mike, the ask here. I'll guess question I

and this in QX comments us XXXX where new what the Given pipeline tell of maybe in about services kind in a revenue maybe world about you – can fewer that the made this you transformation. someone starts, in this and do a pipeline there's and you, little kind to a compare look the that last your to is contrast looking time less large year? pipeline, coverage with does How of which normal speed bit with

Michael Jackowski

looking the strong. pipeline one an starting just coming we going in that strong lot really really demand. services would are projects deals up. confidence a come through we half, looks services we're have pipeline signed, were that deals say the very to and we've And I was that are And I of at the have when back the to that as that we the new the of made know that in, timing projects end comment and

quarter-over-quarter So, But to and watched strengthen year, the strengthened within COVID. our since I'll our guidance. watched overall pipeline, it's it guidance then our say continue on for our overall we've we've pipeline

very COVID, transformation the more well manage work-from-home self-service as of to sign. lines react the think carriers within I agenda impact it boardroom So, trying segments their large, C-level – employees digital more positive they're with around created customers. with impacted But execs it of – at And remote look a very, industry. at with businesses that and higher a employees we as and to on important business in as think is some we the a when has or

So, to we is continue. think that trend going


comes Our from Stifel. next Roderick question Tom with

Tom Roderick

pace got the just ARR the with maybe as build little go just XX%, about customers. just number, growing answer, last as decision-making, little them environment. a in should you quarter-on-quarter your relates mentioned, the picking overall does over of expand and with they big product question a decision-making Mike, you I'm in of without that you love the think bit of weren't around you a lines a out look even discussions those QX be to I your their out or on pace going territories seem a seeing way new and you new that seasonally Are guess last how deeper deeper that is perhaps to And to sort showing for It if $X million business out the that products new the it a like as as broader for it a bit it QX, for. relates little what how over playing question to bit. like geographies to I'd rest up of again new ready are the playing I even slower And desire up year? deal. was is – seems seasonally

Michael Jackowski

would current the and but the forcing of I is need again say customer these Not about C-suite answer of point, to needs companies. market. within at really to conversations We're how being and your react it's the digital, they only that new play new products to because looking out watching launching yes.

after will, surgical, the market. And change a if that hard They increasing Are they rules. call commercial of design. prices. need tools have risk a it's need time when have around market taking their and hard more low-code get rates they do rate They very better are to how carriers segment on their better they a surgical, or more a to we side, means when And better that So, to appetite they differently. that they price going And product that, they go be market know the technology. the to need more products. they certain you

new this products in tools to they're to to order seeing because new these we're come to us So, essence, have carriers in customize they're some bringing they in know enable how to, market. going market, hard

insurance short where it And time, though opportunities. But increase seeing even think dramatically watching to it's not into in carrier. more It's fuse. to projects I'll understand budget, have I They approvals. the years. the these percentages. within these leading we work chair we're their we're So, their for CIO increase then, say a a an have being the myself that this the plan work just large same by large They at pipeline, fiscal how to at within that's not way budget something in programs carrier, get

increased know watching And with deals to continued So, is methodical it's think is the an and we those. through continue percentage just increasing, number I the of to what large come to going a at lead rate that's kind to on business. of pipeline. we see convert that going increasing it of And we're growth a of but we're

Tom Roderick

that, on to relative the products follow-on that add-on you of A different number just have.

and did wins some You quarter. out management this different distribution times couple key call a of

the I your how to us second be, think But a the what challenges, and here with core customers. means to customers. is? easy more and associated just And a how for what challenges big that a what your you're at educate perhaps solving with that the distribution for functions broker might sit understand offer the opportunity us their tiers market you it it's could community take little bit on

Michael Jackowski

manage terms distribution And It management channel, most I'm always And end-to-end. their agent, help our has agents majority data, distribution that, need it's to well ongoing or to obviously, on through with certain sell in the capabilities manage We're the helps a helping with using and independent they is a agents, the the so it you management of carriers, And the as want captive bringing whole very about in of end-to-end from broker go we as popular. carriers new technology, So, there's when bring a channel. contracting, cycle that. distribution to very, capabilities, whether they're been the originate appoint workflow really board, core. insurance them because, with to What And And it. to How on well life workflow sold we manage asked requirements channel to the quite want to on once commission distribution board, education because to are agents. the a and glad them? doing technology talk better type of tied the they lot majority that we new better to the a with it's associated licensing channel. identify in of with book. And them products? so, problem the management partner, the our products – better the got they education do carriers and to their licensing the the geographies. some certain big them for And them then, carriers then, that. sell are it's market information because managing of channel

think all opportunity. bridge can it that get we quarter standalone great our seamless. we it's back a more And it's carrier into then again, because the we into core their and wire a can without So, together processes product make a and

Tom Roderick

Nice job in the quarter. it. Appreciate


William Bhavan Our next Suri question comes of from Blair.

Bhavan Suri

all. want I little bit about guess piece, touch a to the data of first I

partner? it's idea or There's about sort this hub. are you integration policy exists piece, do? guys side, P&C consumer of fraud too. Is lines to could on it whether data both how and think of you going love collecting guys How that. think I'd commercial be we Do out approach guys end on customers your some of claims just it you that the that's the something sort the of mentioned about and you So, know not you lost even that that to can greater but how – from should especially improve on could data these data, that side, the set there claims be -- the help that

how And integrate about Just understand to that wanted using to customers hub? that and you value. the are starting data think

Michael Jackowski

data have on based they insights. have to Yeah. what the a can wired workflows. using where data you it's And make we partner the fraud that create of at your a that and of data, it's they're These advanced better their look industry, at Duck of in in successful the great in job in systems the important vendors that low-code fraud, outside detection call that very, then, area claims, great their adjusters claims transactional is like providing And whether where of platform and space data they can FRISS. Creek very an investigate in a that there reporting trend and can who on really job data a dynamically and and analytics, partners outside They point, allows identify And using carriers play are marrying change all in back. and most we're just platform combination carriers. they us really making for partner of because very essence, is merge SIU, they and to – our legacy lost to that of a merge whether with a with techniques terms available have, it's route And fraud decisions Verisk LexisNexis where a partners like carriers but is data nice to machine increased carriers only very, learning the data that really and what that that route FRISS can context also data partners automate do or with providing is partners other lot our they into or advanced there's have from FRISS to, is when data an to they decision-making. on different successful together us. not for exists It then, that. do models all this case that like whether AI,

at different but profound that carriers more increased going to we So, know AI, new, and analytics in ways. the in the be from wiring use do looking for that the use advanced company. see only with more in with to and of area our future, working can to is investment think like and focus gives what use much, that Creek Duck platform not what and AI I to investment you're going data an We much flexibility partners that's low-code

Bhavan Suri

other on Alex' question and Tom's One question, to too. question follow-up just

up, the picking up. of You've the sort picking talked pipeline about activity

low-code, policy can someone like love it consumer GEICO disrupting is the those we're the I up get it get we As really think the COVID space, drivers get you being get means all to going sense pipeline which you've you okay, pipeline? we're the things What by commercial not time, small like of think to are sort to of is a or guy like a your I'd to it It or business, got implementation it's faster, on-premise as faster? is is which fact changes, new system, whether Or the but feels can which that, say, this and coming running acceleration in How we system solution an else saying, system COVID, pricing system it term. okay, embedded out about put whatever out out product like, to of growth? now three, long of viable for should guys about is going fast a opposed whomever. Citrix digital and driven just use that a the scrape, a or GEICO driving the a so around to cloud like transformation this fundamental and people this they're obviously, and disrupt driver is we which might commercial and need

Michael Jackowski

it talk people hear, buying, when would but – they very I digital of at answer how product carriers is why that do is carriers or it transformation all cloud bit very, product overall And they think when a of about the technology, it they Creek or a want and overall very once shrink want very I to they'll very, would about maybe make know sales And legacy a line, look to to or to of to it's new very, because decided when into that's some with very want and right? for that internally do they not and are above, speed have appealing say of move estimates I carriers reason. product getting when all new a – core they launching we even want say new looking revisit in reasons we stand obviously, talk lot we at solution Duck lines always to popular are products the come up they technology. I the But it a do decision. the us new their rapidly, Because coding on do enter that. the on put there's our they'll cycle for a trying replatform the and that of certainly,

I to trying in as new I forward They're trying we're an So, diversify. enter And trend new increased are going launch think think to carriers They're to to because to pipeline. that products. trying moving going drive that's continued growth markets. our see


James. question Brian next Peterson Raymond from of comes Our

Brian Peterson

one. to it keep I'll

international a on know efforts, was that topic. the I big So,

mentioned you update internationally. some the think hiring expectations I and partners there. efforts on Any growth the developing are

Michael Jackowski

We're develop would we're making in hiring. and in Pacific. quality Services about of good. that in pleased Australia international example we've to good couple talked announced of we're say Europe, that's The who earlier. that that the deals Asia the good We've people investment Coal with seen is attracting And I example we're company we a We're think the progress the some program. our I another in and watching of on positive traction. pipeline

little we're relationships time, some in bit, Europe and our a with brand always like markets our customers I temper did prospects last bit to and and time we in through deals already COVID as think for where them. more the And that a environment, in I'm especially a have nice isn't new I going working strong. take Now, as to establish. it may us But under pipeline,

build good of year beyond. felt a it's think these But fiscal continue we and really global impact be going But until brands. presence opportunity. field think and to to So, won't investments we're the I XXXX

in going to about But the benefit lot from. short prospects of a not excited long-term So term see something we're our we're internationally. it's


Davidson. Our question next from comes Rishi D.A. Jaluria of

Rishi Jaluria

to wanted the maybe go it question also tailwinds. talked one. potential to have those to And customers I to of transformation pandemic existing also digital you the kind accelerated Does of keep about I'll know just the cloud-first to back approach migrations. has And cloud what to pandemic it consider accelerate remind really migrate products, be cloud helpful. there? things cloud-only to overall? That development, you of migrations and stick about talked post those this things us other Is incentives around pandemic. can you migrations, like as would carrot

Michael Jackowski

if I via on-premise everything it the is point an serve is and in for does itself carrier. And they're browser, modern accelerant everything is that our of even the web cloud from accessible based, would working probably well view. that of technology migrations Because work. say as pandemic making for their not installations,

running more in don't I have is makes those is slowed just our the thing that new iteration anyone certainly our on-premise think taking overall launch the that any their one down right? that's we So, getting migrations products. evidence cloud, of they're and the ability technology cycles advantage to appealing not because versions of

So, is, integrated our for instance, Creek pure Producer just that I with fully cloud-based obviously, Duck talked about cloud platform. solution,

plans that's So, if capabilities, that take being be over able of new think frame. that on a to the be would features to talking I and that of of some to we're they moving going that working and much And make their It's we're going their new want in time into our get that, take I'd of those do a we're not And excited issue. lot pretty to say budgeting just customers patient time. things advantage they cloud. to to bigger frame. would force driver. really the move the It's about on cadence reason and those time its about the are And


Our Walravens caller Securities. next question is Pat JMP from

Patrick Walravens

Michael, love away guess, investors take maybe of key two all them sort you I from if to things this understand maybe? help or there's to would one that

Michael Jackowski

bit key your broke I of have Pat, for or up a the two investment one little there, themes think but I question community. You

a start to industry the cloud. the core a that pivot is question growth large a the the I'm And transition our and on we no margins anchor Creek again leader I platform XX think really in building position midst be on-demand in is There's XXXX, of great gross on decision in company SaaS innings to out the run going business, OnDemand and most over that business think years XXXX, the but lot at and systems to us of our we're to thing I'm customers, full-on in to the Duck going I put in and ago, the early overall a have a scaling focused on of has to in questions emphasize market. of be SaaS a nicely. there's really transition our four the

plane fully is back that built. So

Now, that moving it's about us scaling forward.

So and we a feel just just then, team. management is adding the I second we've ton talented thing and want incredibly an we made leadership our model. that And value customers. And hard of to team the already emphasize transition the of understand the to work

everything forward. terms we with in systems I with talked add relationships about with our really go-to-market our working our revamped work moving have processes. ways we're partners and how of customers in And new to earlier a value We them. and integration really of prospects lot

we're I and our excited Duck So, Creek, a the in doing people of that success the seeing of about think is really shifting focus have overall at because job focused, success the very very I'm that marketplace. results recent great we

So, the for thanks question, Pat.


time, I'm for to to further showing like any Jackowski At no call remarks. closing turn back this over I'd Mike questions. the

Michael Jackowski

participating earnings everybody, call. our QX Okay. for in Thank you,

business As in with you a year to the fiscal XXXX. pleased of off we're performance start great and could we're the see,

be solutions. excited our continue SaaS to on-demand away with leading We very about

continues, the run cloud. industry insurance to core the As it's important systems transition in

time. the your So, with continued thank care. be dialogue And forward. We Take moving forward safe, for healthy you well. please you look and to


today's call. may Thank all this Ladies you and conference disconnect. you And for participating. does gentlemen, conclude