by Michael Dabai
Shares of Duck Creek Technologies Inc. rose 11% to $30.74 in morning trading after quarterly results beat analysts’ views.
The provider of enterprise software distributed by SaaS for the property and casualty insurance industry rose 25% to $73.4 million in total revenue in the first quarter after the bell on Thursday, beating FactSet’s consensus to $68.9 million.
Chief Executive Michael Jakowski said in the company’s conference call that “this was lower than our subscription revenue, which is our revenue from SaaS of $35.7 million, up 28% year-over-year. Our annual recurring revenue, or ARR was $145.5 million, resulting in a 40% increase over last year. And we were also profitable in the quarter with adjusted EBITDA of $7.8 million.”
Adjusted earnings per share came in at 4 cents, above the FactSet consensus for 1 cent.
Membership 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%.
The ARR growth was “better than we expected and only slightly lower than a quarter ago, which is encouraging after a few quarters of significant slowdown. The revenue beat was mostly driven by the service line, which is not our first choice, but is not our first choice for this industry.” “The service line is still a good indicator of activity and demand,” JP Morgan said in an analyst note.
“The 40% ARR growth performance delivered during the quarter gives us confidence in the long-term growth outlook for the business exomodel dynamics,” Stifel said in a note.
For fiscal year 2022, Duck Creek said it raised its guidance for total revenue of $298 million to $304 million. The company guided for adjusted EPS of 8 cents to 10 cents.
Write to Michael Dabai at [email protected]