• |
First Quarter Fiscal 2022 revenue grew 25% year-over-year
|
• |
SaaS Annual Recurring Revenue grew 40% year-over-year
|
• |
Total revenue for the first quarter of fiscal year 2022 was $73.4 million, an increase of 25% from the comparable period in fiscal year 2021. Subscription revenue was $35.7 million, an increase of 28%; professional services revenue was $29.5 million, an increase of 26%; license revenue was $1.9 million, an increase of 42%; and maintenance and support revenue was $6.3 million, an increase of 1%.
|
• |
GAAP income from operations was $1.9 million for the first quarter of fiscal year 2022, compared with a GAAP loss from operations of $4.2 million for the comparable period in fiscal year 2021.
|
• |
Non-GAAP income from operations was $7.1 million for the first quarter of fiscal year 2022, compared with non-GAAP income from operations of $2.8 million for the comparable period in fiscal year 2021.
|
• |
GAAP net income was $0.7 million for the first quarter of fiscal year 2022, compared with GAAP net loss of $4.7 million for the comparable period in fiscal year 2021.
|
• |
Non-GAAP net income was $4.8 million for the first quarter of fiscal year 2022, compared with non-GAAP net income of $2.1 million for the comparable period in fiscal year 2021.
|
• |
GAAP net income per share was $0.01, on both a basic and fully diluted basis. Non-GAAP net income per share was $0.04. Basic and fully diluted weighted average shares outstanding were approximately 132.0 million shares and 134.2 million shares, respectively, for the quarter ended November 30, 2021.
|
• |
Adjusted EBITDA was $7.8 million for the first quarter of fiscal 2022, compared with adjusted EBITDA of $3.6 million for the comparable period in fiscal year 2021.
|
• |
As of November 30, 2021, Duck Creek had $251.7 million in cash and cash equivalents, $95.9 million in short term investments and no debt. Duck Creek used $24.6 million of cash in operating activities and had free cash flow of ($25.5) million during the first quarter of fiscal year 2022, compared with $22.2 million in cash used in operating activities and free cash flow of ($22.9) million in the comparable period in fiscal year 2021.
|
Second Quarter Fiscal 2022 | Full Year Fiscal 2022 | |||
Revenue
|
$71.5 million to $73.5 million
|
$298.0 million to $304.0 million
| ||
Subscription Revenue
|
$37.0 million to $38.0 million
|
$152.5 million to $155.5 million
| ||
Adjusted EBITDA
|
$1.5 million to $2.5 million
|
$19.0 million to $21.0 million
|
As of November 30,
|
As of August 31,
| |||||||
2021
|
2021
| |||||||
Assets
| ||||||||
Current assets:
| ||||||||
Cash and cash equivalents
|
$
|
251,739
|
$
|
185,657
| ||||
Short-term investments
|
95,996
|
191,981
| ||||||
Accounts receivable, net
|
39,771
|
34,629
| ||||||
Unbilled revenue
|
27,611
|
24,423
| ||||||
Prepaid expenses and other current assets
|
16,895
|
14,381
| ||||||
Total current assets
|
432,012
|
451,071
| ||||||
Property and equipment, net
|
14,107
|
14,305
| ||||||
Operating lease assets
|
16,970
|
17,798
| ||||||
Goodwill
|
272,455
|
272,455
| ||||||
Intangible assets, net
|
61,386
|
65,359
| ||||||
Deferred tax assets
|
1,042
|
2,331
| ||||||
Unbilled revenue, net of current portion
|
1,327
|
1,401
| ||||||
Other assets
|
19,199
|
19,413
| ||||||
Total assets
|
$
|
818,498
|
$
|
844,133
| ||||
Liabilities and Stockholders' Equity
| ||||||||
Current liabilities:
| ||||||||
Accounts payable
|
$
|
1,321
|
$
|
2,070
| ||||
Accrued liabilities
|
28,102
|
46,437
| ||||||
Contingent earnout liability
|
-
|
5,462
| ||||||
Lease liability
|
3,999
|
4,110
| ||||||
Deferred revenue
|
27,197
|
29,577
| ||||||
Total current liabilities
|
60,619
|
87,656
| ||||||
Lease liability, net of current portion
|
20,096
|
21,273
| ||||||
Deferred revenue, net of current portion
|
68
|
-
| ||||||
Other long-term liabilities
|
3,826
|
4,466
| ||||||
Total liabilities
|
84,609
|
113,395
| ||||||
Stockholders' equity
| ||||||||
Common stock, 134,690,424 shares issued and 132,062,061 shares outstanding at November 30, 2021, 134,625,379 shares issued and 132,000,317 shares outstanding at August 31, 2021, 300,000,000 shares authorized at November 30, 2021 and August 31, 2021, par value $0.01 per share
|
1,347
|
1,346
| ||||||
Preferred stock, 0 shares outstanding, 50,000,000 shares authorized at November 30, 2021 and August 31, 2021, par value $0.01 per share
|
-
|
-
| ||||||
Treasury stock, common shares at cost; 2,628,363 shares at November 30, 2021 and 2,625,062 shares at August 31, 2021
|
(67,905
|
)
|
(67,764
|
)
| ||||
Accumulated deficit
|
(40,573
|
)
|
(41,265
|
)
| ||||
Accumulated other comprehensive income
|
51
|
64
| ||||||
Additional paid in capital
|
840,969
|
838,357
| ||||||
Total stockholders' equity
|
733,889
|
730,738
| ||||||
Total liabilities and stockholders' equity
|
$
|
818,498
|
$
|
844,133
|
Three Months Ended November 30,
| ||||||||
(dollars in thousands)
|
2021
|
2020
| ||||||
Revenue
| ||||||||
Subscription
|
$
|
35,705
|
$
|
27,909
| ||||
License
|
1,912
|
1,350
| ||||||
Maintenance and support
|
6,277
|
6,190
| ||||||
Professional services
|
29,527
|
23,457
| ||||||
Total revenue
|
73,421
|
58,906
| ||||||
Cost of revenue
| ||||||||
Subscription
|
14,585
|
10,084
| ||||||
License
|
244
|
388
| ||||||
Maintenance and support
|
880
|
842
| ||||||
Professional services
|
15,242
|
13,716
| ||||||
Total cost of revenue
|
30,951
|
25,030
| ||||||
Gross margins
|
42,470
|
33,876
| ||||||
Operating expenses
| ||||||||
Research and development
|
12,321
|
11,104
| ||||||
Sales and marketing
|
13,167
|
12,597
| ||||||
General and administrative
|
15,035
|
14,418
| ||||||
Change in fair value of contingent consideration
|
67
|
3
| ||||||
Total operating expense
|
40,590
|
38,122
| ||||||
Income (loss) from operations
|
1,880
|
(4,246
|
)
| |||||
Other expense, net
|
(696
|
)
|
(47
|
)
| ||||
Interest expense, net
|
(118
|
)
|
(43
|
)
| ||||
Income (loss) before income taxes
|
1,066
|
(4,336
|
)
| |||||
Provision for income taxes
|
374
|
315
| ||||||
Net income (loss)
|
$
|
692
|
$
|
(4,651
|
)
| |||
Net loss per share information
| ||||||||
Net earnings (loss) per share of common stock, basic
|
$
|
0.01
|
$
|
(0.04
|
)
| |||
Net earnings per share of common stock, diluted
|
$
|
0.01
|
$
|
(0.04
|
)
| |||
Weighted average shares of common stock, basic
|
132,038,274
|
130,788,359
| ||||||
Weighted average shares of common stock, diluted
|
134,212,210
|
130,788,359
|
Three Months Ended November 30,
| ||||||||
2021
|
2020
| |||||||
Cost of subscription revenue
|
$
|
42
|
$
|
80
| ||||
Cost of maintenance and support revenue
|
8
|
7
| ||||||
Cost of services revenue
|
(100
|
)
|
610
| |||||
Research and development
|
229
|
511
| ||||||
Sales and marketing
|
(60
|
)
|
899
| |||||
General and administrative
|
1,093
|
985
| ||||||
Total share-based compensation expense
|
$
|
1,212
|
$
|
3,092
|
For the Three Months Ended
November 30,
| ||||||||
2021
|
2020
| |||||||
Operating activities:
| ||||||||
Net income (loss)
|
$
|
692
|
$
|
(4,651
|
)
| |||
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
| ||||||||
Depreciation of property and equipment
|
704
|
787
| ||||||
Amortization of capitalized software
|
561
|
498
| ||||||
Amortization of intangible assets
|
3,973
|
4,087
| ||||||
Amortization of deferred financing fees
|
18
|
28
| ||||||
Share-based compensation expense
|
1,212
|
3,092
| ||||||
Loss on change in fair value of contingent earnout liability
|
67
|
3
| ||||||
Payment of contingent earnout liability in excess of acquisition date fair value
|
(1,650
|
)
|
-
| |||||
Bad debt expense
|
817
|
14
| ||||||
Deferred taxes
|
1,288
|
(171
|
)
| |||||
Changes in operating assets and liabilities
| ||||||||
Accounts receivable
|
(5,959
|
)
|
1,280
| |||||
Unbilled revenue
|
(3,115
|
)
|
(1,730
|
)
| ||||
Prepaid expenses and other current assets
|
(2,428
|
)
|
319
| |||||
Other assets
|
604
|
(15
|
)
| |||||
Accounts payable
|
(909
|
)
|
712
| |||||
Accrued liabilities
|
(16,891
|
)
|
(16,629
|
)
| ||||
Deferred revenue
|
(2,312
|
)
|
(4,558
|
)
| ||||
Operating leases
|
(460
|
)
|
(161
|
)
| ||||
Cash settlement of vested phantom stock
|
(175
|
)
|
(6,677
|
)
| ||||
Other long-term liabilities
|
(640
|
)
|
1,600
| |||||
Net cash used in operating activities
|
(24,603
|
)
|
(22,172
|
)
| ||||
Investing activities:
| ||||||||
Maturities of short-term investments
|
95,967
|
-
| ||||||
Capitalized internal-use software
|
(366
|
)
|
(536
|
)
| ||||
Purchase of property and equipment
|
(540
|
)
|
(188
|
)
| ||||
Net cash provided by (used in) investing activities
|
95,061
|
(724
|
)
| |||||
Financing activities:
| ||||||||
Payment of deferred IPO costs
|
-
|
(3,650
|
)
| |||||
Payment of deferred Class E offering costs
|
-
|
(192
|
)
| |||||
Purchase of treasury stock
|
(141
|
)
|
(57
|
)
| ||||
Proceeds from stock option exercises
|
132
|
-
| ||||||
Payments of contingent earnout liability
|
(3,879
|
)
|
(1,923
|
)
| ||||
Payment of deferred financing costs
|
(488
|
)
|
-
| |||||
Net cash used in financing activities
|
(4,376
|
)
|
(5,822
|
)
| ||||
Net increase (decrease) in cash and cash equivalents
|
66,082
|
(28,718
|
)
| |||||
Cash and cash equivalents - beginning of period
|
185,657
|
389,878
| ||||||
Cash and cash equivalents - end of period
|
$
|
251,739
|
$
|
361,160
|
Three Months Ended November 30,
| ||||||||
($ in thousands)
|
2021
|
2020
| ||||||
GAAP Gross Margin
|
$
|
42,470
|
$
|
33,876
| ||||
Share-based compensation expense
|
(50
|
)
|
697
| |||||
Amortization of intangible assets
|
1,121
|
1,186
| ||||||
Amortization of capitalized internal-use software
|
561
|
498
| ||||||
Non-GAAP Gross Margin
|
$
|
44,102
|
$
|
36,257
|
Three Months Ended November 30,
| ||||||||
($ in thousands)
|
2021
|
2020
| ||||||
GAAP Income (Loss) from Operations
|
$
|
1,880
|
$
|
(4,246
|
)
| |||
Share-based compensation expense
|
1,212
|
3,092
| ||||||
Amortization of intangible assets
|
3,929
|
3,994
| ||||||
Change in fair value of contingent earnout liability
|
67
|
3
| ||||||
Non-GAAP Income from Operations
|
$
|
7,088
|
$
|
2,843
|
Three Months Ended November 30,
| ||||||||
($ in thousands)
|
2021
|
2020
| ||||||
GAAP Net Income (Loss)
|
$
|
692
|
$
|
(4,651
|
)
| |||
Provision for income taxes
|
374
|
315
| ||||||
Other expense, net
|
696
|
47
| ||||||
Interest income, net
|
118
|
43
| ||||||
Depreciation of property and equipment
|
704
|
787
| ||||||
Amortization of intangible assets
|
3,929
|
3,994
| ||||||
Share-based compensation expense
|
1,212
|
3,092
| ||||||
Change in fair value of contingent earnout liability
|
67
|
3
| ||||||
Adjusted EBITDA
|
$
|
7,792
|
$
|
3,630
| ||||
Adjusted EBITDA as a percent of total revenue
|
11
|
%
|
6
|
%
|
Three Months Ended
November 30,
| ||||||||||||||||
($ in thousands)
|
2021
|
Per Share
|
2020
|
Per Share
| ||||||||||||
GAAP Net Income (Loss) (1) |
$
|
692
|
$
|
0.01
|
$
|
(4,651
|
)
|
$
|
(0.04
|
)
| ||||||
Add: GAAP tax provision
|
374
|
315
| ||||||||||||||
GAAP pre-tax income (loss)
|
1,066
|
(4,336
|
)
| |||||||||||||
Share-based compensation expense
|
1,212
|
3,092
| ||||||||||||||
Amortization of intangible assets
|
3,929
|
3,994
| ||||||||||||||
Change in fair value of contingent earnout liability
|
67
|
3
| ||||||||||||||
Non-GAAP pre-tax income
|
6,274
|
2,753
| ||||||||||||||
Non-GAAP tax provision applied at a 24% tax rate (1) |
1,506
|
661
| ||||||||||||||
Non-GAAP Net Income (1) |
$
|
4,768
|
$
|
0.04
|
$
|
2,092
|
$
|
0.02
| ||||||||
Shares used in computing Non-GAAP income per share
amounts:
| ||||||||||||||||
GAAP weighted-average shares - basic
|
132,038,274
|
130,788,359
| ||||||||||||||
GAAP dilutive shares
|
2,173,936
|
-
| ||||||||||||||
Non-GAAP dilutive shares excluded from GAAP loss per share calculation (using the treasury stock method)
|
-
|
3,227,281
| ||||||||||||||
Non-GAAP weighted-average shares - diluted
|
134,212,210
|
134,015,640
|
(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.
|
Three Months Ended
November 30,
| ||||||||
($ in thousands)
|
2021
|
2020
| ||||||
Net cash used in operating activities
|
$
|
(24,603
|
)
|
$
|
(22,172
|
)
| ||
Purchases of property and equipment
|
(540
|
)
|
(188
|
)
| ||||
Capitalized internal-use software
|
(366
|
)
|
(536
|
)
| ||||
Free Cash Flow
|
$
|
(25,509
|
)
|
$
|
(22,896
|
)
|
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Disclaimer
Duck Creek Technologies Inc. published this content on 06 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 January 2022 21:27:12 UTC.