Duck Creek Technologies, Inc. ($DCT) Earnings (Q4 FY22)

 Duck Creek Technologies, Inc. ($DCT) Earnings and Opinion:


Duck Creek Technologies is a company in the Technology sector and operates in the Software-Application industry. The company provides SaaS core systems to the property and casualty insurance industry in the United States and internationally. Duck Creek Technologies was founded in 2016 and is currently headquartered in Boston, Massachusetts. The company made its debut on the public market in August of 2020.

Duck Creek Technologies Earnings Results:

  • Revenues of $80.71M beating expectations of $73.15M
  • Adj Gross Profit of $50.04M beating expectations of $42.76M
  • Adj Operating Income of $6.1M beating expectations of $2.82M
  • Adj Diluted EPS of $0.03 beating expectations of $0.02
Opinion:
Duck Creek Technologies is currently soaring after market. The company reported earnings after the market closed this afternoon. The company is up over 8% in the after market trading after the company produced a solid earnings report. The company beat on all of the main metrics, and they beat the estimates with authority. I think we are seeing a nice transition in the SaaS industry, especially with the development with insurance companies right now. As far as the actual earnings report, Adj operating income beat by a solid 116%. EPS had a one cent beat, but beat estimates by 71%. The cash flow metrics were also phenomenal. It seems as if this company is coming in with a lot of momentum right now. As far as valuation goes, the BEst P/E ratio is at 84.96 and the P/S ratio is at 4.43. The valuation is definitely a little high right now, but this is a really young company. In my opinion, Duck Creek Technologies is honestly a pretty good stock. I like where the financials sit and the momentum they are carrying right now. They are way off their IPO price, so if you liked this company a year ago, you will really like it now. They run a similar business model to E2open, who I just reported on. I like Duck Creek a little bit better than E2. I think for the future outlook, Duck Creek will succeed. I am long Duck Creek Technologies $DCT.

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