dct-10q_20210228.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended February 28, 2021

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________ to ________________

Commission File Number: 001-39449

 

Duck Creek Technologies, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

84-3723837

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

Duck Creek Technologies, Inc.

22 Boston Wharf Road, Floor 10

Boston, MA

02210

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (888) 724-3509

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common stock, $0.01 par value per share

 

DCT

 

The Nasdaq Stock Market LLC 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  ☒    No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes  ☒    No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

 

Smaller reporting company

 

 

 

 

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes  ☐    No  

As of April 9, 2021, the registrant had 131,588,942 shares of common stock, $0.01 par value per share, outstanding.

 

 

 

 


 

Special Note Regarding Forward-Looking Statements

Some of the information contained in the sections entitled “Item 1. Business” and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and elsewhere in this Quarterly Report on Form 10-Q contain forward-looking statements that reflect our current views with respect to, among other things, future events and financial performance. You can identify these forward-looking statements by the use of forward-looking words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “target,” “projects,” “contemplates” or the negative version of those words or other comparable words. Any forward-looking statements contained in this report are based upon our historical performance and on our current plans, estimates and expectations in light of information currently available to us. The inclusion of this forward-looking information should not be regarded as a representation by us that the future plans, estimates or expectations contemplated by us will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial condition, business, prospects, growth strategy and liquidity. For more information regarding these risks and uncertainties as well as certain additional risks that we face, refer to Part II, “Item 1A. Risk Factors” as well as the factors more fully described in “Item 2. Management’s Discussion and Analysis of Financial Conditions and Results of Operations,” in our Annual Report on Form 10-K for the year ended August 31, 2020, and those described from time to time in our future reports filed with the Securities and Exchange Commission. Accordingly, there are, or will be, important factors that could cause our actual results to differ materially from those indicated in these statements. We believe that these factors include, but are not limited to:

 

our history of losses;

 

changes in our product revenue mix as we continue to focus on sales of our Software-as-a-service (“SaaS”) solutions, which will cause fluctuations in our results of operations and cash flows between periods;

 

our reliance on orders and renewals from a relatively small number of customers for a substantial portion of our revenue, and the substantial negotiating leverage customers have in renewing and expanding their contracts for our solutions;

 

the success of our growth strategy focused on SaaS solutions and our ability to develop or sell our solutions into new markets or further penetrate existing markets;

 

our ability to manage our expanding operations;

 

intense competition in our market;

 

third-parties may assert we are infringing or violating their intellectual property rights;

 

U.S. and global market and economic conditions, particularly adverse in the insurance industry;

 

additional complexity, burdens and volatility in connection with our international sales and operations;

 

the length and variability of our sales and implementation cycles;

 

data breaches, unauthorized access to customer data or other disruptions of our solutions;

 

the significant influence that Apax VIII Fund, a global private equity fund (collectively, with its affiliates, “Apax”) and Accenture plc, a public limited company incorporated in Ireland (collectively, with its affiliates, “Accenture”), will have on the composition of our board of directors, our management, business plans and policies, and any conflicts of interest between Apax and Accenture, on the one hand, and our other stockholders, on the other hand;

 

our continued reliance on “controlled company” exemptions under Nasdaq listing standards during the applicable phase-in periods;

 

impact of pandemics, including the COVID-19 pandemic, on U.S. and global economies, our business, our employees, results of operations, financial condition, demand for our products, sales and implementation cycles, and the health of our customers’ and partners’ businesses; and

 

the other risks and uncertainties described under Part II, “Item 1A. Risk Factors.”

These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this report. The forward-looking statements made in this report relate only to events as of the date on which the statements are made. We do not undertake any obligation to publicly update or review any forward-looking statement except as required by law, whether as a result of new information, future developments or otherwise.

If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may vary materially from what we may have expressed or implied by these forward-looking statements. We caution that you should not place undue reliance on any of our forward-looking statements. You should specifically consider the factors identified in this report that could cause actual results to differ before making an investment decision to purchase our common stock. Furthermore, new risks and uncertainties arise from time to time, and it is impossible for us to predict those events or how they may affect us.

i


Basis of Presentation

As used in this Quarterly Report on Form 10-Q unless the context otherwise requires, references to “we,” “us,” “our,” the “Company,” “Duck Creek,” and similar references refer to Duck Creek Technologies, Inc. together with its subsidiaries, and the following terms have the meanings or are calculated as set forth below:

 

We define “subscription revenue” as the revenue derived from the sale of our SaaS solutions through recurring fee arrangements for the period indicated.

 

We define “ACV” as the committed total contract value of new software sales in dollar terms divided by the corresponding minimum number of committed months, with the resultant minimum monthly commitment being multiplied by twelve.

 

We define “carriers” as property and casualty (“P&C”) insurance carriers.

 

We define “core systems” as the following key functions of carriers: policy administration, claims management and billing.

 

We define “customers” as buying entities that contract individually for our products and services. For example, multiple subsidiaries of a single carrier may each constitute a customer if each entity contracts with us separately. By contrast, a carrier that uses our products across multiple subsidiaries under a single enterprise license agreement would constitute a single customer.

 

We define “DWP” as the gross dollar value of total premiums paid to carriers by policyholders.

Certain monetary amounts, percentages, and other figures included in this Quarterly Report on Form 10-Q have been subject to rounding adjustments. Percentage amounts included in this Quarterly Report on Form 10-Q have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding. For this reason, percentage amounts in this Quarterly Report on Form 10-Q may vary from those obtained by performing the same calculations using the figures in our consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q. Certain other amounts that appear in this Quarterly Report on Form 10-Q may not sum due to rounding. When we state that we are the leading SaaS provider of core systems for the P&C insurance industry, we are basing our leadership on our subscription revenue for fiscal 2020.

Our fiscal year ends on August 31. Unless otherwise noted, any reference to a year preceded by the word “fiscal” refers to the fiscal year ended August 31 of that year. For example, references to “fiscal 2019” refer to the fiscal year ended August 31, 2019. Any reference to a year not preceded by “fiscal” refers to a calendar year. Accordingly, our first three fiscal quarters are the successor three-month periods following August 31 (i.e., November 30, February 28 and April 30).

ii


Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

1

Item 1.

Financial Statements (Unaudited)

1

 

Consolidated Balance Sheets

1

 

Consolidated Statements of Operations

2

 

Consolidated Statements of Other Comprehensive Loss

3

 

Consolidated Statements of Stockholders’ Equity/Redeemable Partners’ Interest and Partners’ Capital

4

 

Consolidated Statements of Cash Flows

6

 

Notes to Unaudited Consolidated Financial Statements

7

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

20

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

38

Item 4.

Controls and Procedures

38

PART II.

OTHER INFORMATION

39

Item 1.

Legal Proceedings

39

Item 1A.

Risk Factors

39

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

39

Item 3.

Defaults Upon Senior Securities

39

Item 4.

Mine Safety Disclosures

39

Item 5.

Other Information

39

Item 6.

Exhibits

40

Signatures

41

 

 

 

iii


 

 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

DUCK CREEK TECHNOLOGIES, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(In thousands, except share information)

(Unaudited)

 

 

 

February 28,

 

 

August 31,

 

 

 

2021

 

 

2020

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

76,074

 

 

$

389,878

 

Short-term investments

 

 

287,906

 

 

 

 

Accounts receivable, net

 

 

34,738

 

 

 

29,149

 

Unbilled revenue

 

 

22,143

 

 

 

18,121

 

Prepaid expenses and other current assets

 

 

15,240

 

 

 

12,186

 

Total current assets

 

 

436,101

 

 

 

449,334

 

Property and equipment, net

 

 

16,725

 

 

 

18,113

 

Operating lease assets

 

 

16,632

 

 

 

18,171

 

Goodwill

 

 

272,455

 

 

 

272,455

 

Intangible assets, net

 

 

73,512

 

 

 

81,687

 

Deferred tax assets

 

 

2,065

 

 

 

1,550

 

Unbilled revenue, net of current portion

 

 

2,824

 

 

 

3,487

 

Other assets

 

 

16,983

 

 

 

16,303

 

Total assets

 

$

837,297

 

 

$

861,100

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,001

 

 

$

1,802

 

Accrued liabilities

 

 

40,664

 

 

 

58,202

 

Contingent earnout liability

 

 

5,267

 

 

 

3,701

 

Lease liability

 

 

3,292

 

 

 

3,611

 

Deferred revenue

 

 

28,860

 

 

 

30,397

 

Total current liabilities

 

 

79,084

 

 

 

97,713

 

Contingent earnout liability, net of current portion

 

 

 

 

 

3,391

 

Lease liability, net of current portion

 

 

20,196

 

 

 

21,739

 

Deferred revenue, net of current portion

 

 

23

 

 

 

379

 

Other long-term liabilities

 

 

6,058

 

 

 

4,121

 

Total liabilities

 

 

105,361

 

 

 

127,343

 

Commitments and contingencies (Note 13)

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

 

 

Common stock, 134,081,473 shares issued and 131,524,442 shares outstanding at February 28, 2021, 133,269,301 shares issued and 130,713,745 shares

   outstanding at August 31, 2020, 300,000,000 shares authorized at February 28, 2021 and August 31, 2020, par value $0.01 per share

 

 

1,341

 

 

 

1,333

 

Preferred stock, 0 shares outstanding, 50,000,000 shares authorized at February 28, 2021 and August 31, 2020, par value $0.01 per share

 

 

 

 

 

 

Treasury stock, common shares at cost; 2,557,031 shares at February 28, 2021 and 2,555,556 shares at August 31, 2020

 

 

(64,745

)

 

 

(64,688

)

Accumulated deficit

 

 

(35,349

)

 

 

(24,334

)

Accumulated other comprehensive income (loss)

 

 

(6

)

 

 

 

Additional paid in capital

 

 

830,695

 

 

 

821,446

 

Total stockholders' equity

 

 

731,936

 

 

 

733,757

 

Total liabilities and stockholders' equity

 

$

837,297

 

 

$

861,100

 

 

See accompanying notes to consolidated financial statements.    

1


 

DUCK CREEK TECHNOLOGIES, INC. AND SUBSIDIARIES

Consolidated Statements of Operations

(In thousands, except share and per share information)

(Unaudited)

 

 

 

For the Three Months Ended

February 28 and 29,

 

 

For the Six Months Ended

February 28 and 29,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription

 

$

30,608

 

 

$

20,276

 

 

$

58,517

 

 

$

37,813

 

License

 

 

3,588

 

 

 

2,226

 

 

 

4,938

 

 

 

3,271

 

Maintenance and support

 

 

5,885

 

 

 

5,801

 

 

 

12,075

 

 

 

11,727

 

Professional services

 

 

22,571

 

 

 

24,524

 

 

 

46,028

 

 

 

46,586

 

Total revenue

 

 

62,652

 

 

 

52,827

 

 

 

121,558

 

 

 

99,397

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription

 

 

11,411

 

 

 

8,873

 

 

 

21,495

 

 

 

16,150

 

License

 

 

446

 

 

 

515

 

 

 

834

 

 

 

841

 

Maintenance and support

 

 

859

 

 

 

887

 

 

 

1,701

 

 

 

1,765

 

Professional services

 

 

14,826

 

 

 

13,338

 

 

 

28,542

 

 

 

25,380

 

Total cost of revenue

 

 

27,542

 

 

 

23,613

 

 

 

52,572

 

 

 

44,136

 

Gross margin

 

 

35,110

 

 

 

29,214

 

 

 

68,986

 

 

 

55,261

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

12,681

 

 

 

10,008

 

 

 

23,785

 

 

 

19,227

 

Sales and marketing

 

 

14,165

 

 

 

11,245

 

 

 

26,762

 

 

 

21,816

 

General and administrative

 

 

14,617

 

 

 

9,747

 

 

 

29,035

 

 

 

19,732

 

Change in fair value of contingent consideration

 

 

95

 

 

 

167

 

 

 

98

 

 

 

211

 

Total operating expenses

 

 

41,558

 

 

 

31,167

 

 

 

79,680

 

 

 

60,986

 

Loss from operations

 

 

(6,448

)

 

 

(1,953

)

 

 

(10,694

)

 

 

(5,725

)

Other income (expense), net

 

 

510

 

 

 

(153

)

 

 

463

 

 

 

220

 

Interest expense, net

 

 

(38

)

 

 

(45

)

 

 

(81

)

 

 

(326

)

Loss before income taxes

 

 

(5,976

)

 

 

(2,152

)

 

 

(10,312

)

 

 

(5,832

)

Provision for income taxes

 

 

388

 

 

 

288

 

 

 

703

 

 

 

622

 

Net loss

 

$

(6,364

)

 

$

(2,440

)

 

$

(11,015

)

 

$

(6,454

)

Net loss per share information1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share of common stock, basic and diluted

 

$

(0.05

)

 

 

 

 

 

$

(0.08

)

 

 

 

 

Weighted average shares of common stock, basic and diluted

 

 

130,982,116

 

 

 

 

 

 

130,851,680

 

 

 

 

 

1.

See Note 8—Net Loss Per Share for additional details.

See accompanying notes to consolidated financial statements.

2


 

DUCK CREEK TECHNOLOGIES, INC. AND SUBSIDIARIES

Consolidated Statement of Other Comprehensive Loss

(In thousands, except share information)

(Unaudited)

 

 

 

For the Three Months Ended

February 28 and 29,

 

 

For the Six Months Ended

February 28 and 29,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net loss

 

$

(6,364

)

 

$

(2,440

)

 

$

(11,015

)

 

$

(6,454

)

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized losses on available-for-sale securities

 

 

(6

)

 

 

 

 

 

(6

)

 

 

 

Total other comprehensive loss

 

 

(6

)

 

 

 

 

 

(6

)

 

 

 

Comprehensive loss

 

$

(6,370

)

 

$

(2,440

)

 

$

(11,021

)

 

$

(6,454

)

 

See accompanying notes to consolidated financial statements.

 

 


 

3


 

 

DUCK CREEK TECHNOLOGIES, INC. AND SUBSIDIARIES

Consolidated Statements of Stockholders’ Equity/Redeemable Partners’ Interest and Partners’ Capital

(In thousands, except share information)

(Unaudited)

 

 

 

Total

redeemable

partners’

interest

and partners'

 

 

Common stock

 

 

Treasury Stock

 

 

Additional

paid-in

 

 

Accumulated Other Comprehensive

 

Accumulated

 

 

Total

stockholders'

equity/

redeemable

partners'

interest and

partners'

 

 

 

capital

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

capital

 

 

Loss

 

deficit

 

 

capital

 

Balance at August 31, 2020

 

$

 

 

 

133,269,301

 

 

$

1,333

 

 

 

2,555,556

 

 

$

(64,688

)

 

$

821,446

 

 

$

 

$

(24,334

)

 

$

733,757

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,651

)

 

 

(4,651

)

Repurchase of common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

1,475

 

 

 

(57

)

 

 

 

 

 

 

 

 

 

 

(57

)

Share-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,333

 

 

 

 

 

 

 

 

2,333

 

Vesting of restricted stock awards

 

 

 

 

 

142,193

 

 

 

1

 

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

Balance at November 30, 2020

 

$

 

 

 

133,411,494

 

 

$

1,334

 

 

 

2,557,031

 

 

$

(64,745

)

 

$

823,778

 

 

$

 

$

(28,985

)

 

$

731,382

 

Net loss

 

$

 

 

 

 

 

$

 

 

 

 

 

$

 

 

$

 

 

$

 

$

(6,364

)

 

$

(6,364

)

Proceeds from follow-on offering, net of issuance costs

 

 

 

 

 

90,000

 

 

 

1

 

 

 

 

 

 

 

 

 

3,452

 

 

 

 

 

 

 

 

3,453

 

Share-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,478

 

 

 

 

 

 

 

 

2,478

 

Issuance of common stock upon exercise of stock options

 

 

 

 

 

 

36,809

 

 

 

 

 

 

 

 

 

 

 

 

993

 

 

 

 

 

 

 

 

993

 

Vesting of restricted stock awards

 

 

 

 

 

543,170

 

 

 

6

 

 

 

 

 

 

 

 

 

(6

)

 

 

 

 

 

 

 

 

Unrealized loss on available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6

)

 

 

 

 

(6

)

Balance at February 28, 2021

 

$

 

 

 

134,081,473

 

 

$

1,341

 

 

 

2,557,031

 

 

$

(64,745

)

 

$

830,695

 

 

$

(6

)

$

(35,349

)

 

$

731,936

 

 

See accompanying notes to consolidated financial statements.

 

4


 

 

DUCK CREEK TECHNOLOGIES, INC. AND SUBSIDIARIES

Consolidated Statements of Stockholders’ Equity/Redeemable Partners’ Interest and Partners’ Capital

(In thousands, except share information)

(Unaudited)

 

 

 

Total

redeemable

partners’

interest

and partners' capital

 

 

Common stock

 

 

Treasury Stock

 

 

 

 

 

 

Additional

paid-in

 

 

Accumulated

 

 

Non-

controlling

 

 

Total

stockholders'

equity/

redeemable

partners'

interest and

partners'

 

 

 

Units

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

capital

 

 

deficit

 

 

interests

 

 

capital

 

Balance at August 31, 2019

 

 

470,210,869

 

 

$

389,066

 

 

 

 

 

$

 

 

$

 

 

 

 

 

$

 

 

$

 

 

$

 

 

$

389,066

 

Class A units redeemed

 

 

(20,292,029

)

 

 

(58,800

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(58,800

)

Class B units redeemed

 

 

(13,528,013

)

 

 

(39,200

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(39,200

)

Class D units and Phantom Units granted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class D and Phantom Units forfeited

 

 

(622,031

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class E units issued

 

 

41,412,296

 

 

 

115,454

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

115,454

 

Equity-based compensation

 

 

 

 

 

436

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

436

 

Net loss

 

 

 

 

 

(4,014

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,014

)

Balance at November 20, 2019

 

 

477,181,092

 

 

$

402,942

 

 

 

 

 

$

 

 

 

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

402,942

 

Class A units redeemed

 

 

(18,133,278

)

 

 

(60,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(60,000

)

Class B units redeemed

 

 

(12,088,848

)

 

 

(40,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(40,000

)

Class D units and Phantom Units granted

 

 

3,110,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class D and Phantom Units forfeited

 

 

(59,375

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class E units issued

 

 

30,222,126

 

 

 

97,437

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

97,437

 

Equity-based compensation

 

 

-

 

 

 

488

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

488

 

Net loss

 

 

-

 

 

 

(2,440

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,440

)

Balance at February 28, 2020

 

 

480,231,717

 

 

$

398,427

 

 

 

 

 

$

 

 

 

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

398,427

 

 

See accompanying notes to consolidated financial statements.

 

 

 

 

 

5


 

 

DUCK CREEK TECHNOLOGIES, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

For the Six Months Ended

February 28 and 29,

 

 

 

2021

 

 

2020

 

Operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(11,015

)

 

$

(6,454

)

Adjustments to reconcile net loss to cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation of property and equipment

 

 

1,587

 

 

 

1,522

 

Amortization of capitalized software

 

 

996

 

 

 

51

 

Amortization of intangible assets

 

 

8,175

 

 

 

8,535

 

Amortization of deferred financing fees

 

 

57

 

 

 

39

 

Share-based compensation expense

 

 

7,608

 

 

 

924