# EDGAR Filing Document

**Accession Number:** 0001160951
**File Stem:** 0000950170-23-000248
**Filing Date:** 2023-1
**Character Count:** 41682
**Document Hash:** 91d85a02c29cfa4513f29729df35273e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950170-23-000248.hdr.sgml**: 20230105

**ACCESSION NUMBER**: 0000950170-23-000248

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20230105

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230105

**DATE AS OF CHANGE**: 20230105

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** DUCK CREEK TECHNOLOGIES, INC.
- **CENTRAL INDEX KEY:** 0001160951
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **IRS NUMBER:** 843723837
- **FISCAL YEAR END:** 0831

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-39449
- **FILM NUMBER:** 23511798

**BUSINESS ADDRESS:**
- **STREET 1:** 22 BOSTON WHARF ROAD, FLOOR 10
- **CITY:** BOSTON
- **STATE:** MA
- **ZIP:** 02210
- **BUSINESS PHONE:** (833) 798-7789

**MAIL ADDRESS:**
- **STREET 1:** 22 BOSTON WHARF ROAD, FLOOR 10
- **CITY:** BOSTON
- **STATE:** MA
- **ZIP:** 02210

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** DUCK CREEK TECHNOLOGIES INC
- **DATE OF NAME CHANGE:** 20011016

?xml version="1.0" encoding="ASCII"? 8-K

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549**

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**FORM** 8-K

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**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported):** January 05, 2023<br>

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Duck Creek Technologies, Inc.

**(Exact name of Registrant as Specified in Its Charter)**

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---

| | | |
|:---|:---|:---|
| Delaware | 001-39449 | 84-3723837 |
| **(State or Other Jurisdiction<br>of Incorporation)** | **(Commission File Number)** | **(IRS Employer<br>Identification No.)** |
| 22 Boston Wharf Rd., Floor 10 |  |  |
| Boston**,** Massachusetts |  | 02210 |
| **(Address of Principal Executive Offices)** |  | **(Zip Code)** |

---

**Registrant's Telephone Number, Including Area Code:** (888) 724-3509<br>

Not Applicable

**(Former Name or Former Address, if Changed Since Last Report)**

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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

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| | | |
|:---|:---|:---|
| **<br>Title of each class** | **Trading<br>Symbol(s)** | **<br>Name of each exchange on which registered** |
| Common Stock, $0.01 par value | DCT | NASDAQ Global Select Market |

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

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. ☐

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**Item 2.02 Results of Operations and Financial Condition.**

On January 5, 2023, Duck Creek Technologies, Inc. (the "Company") announced its financial results for the first fiscal quarter ended November 30, 2022. The press release also includes forward-looking statements about the Company's outlook. The full text of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K, which also includes important considerations regarding such forward-looking statements.

The Company is making reference to non-GAAP financial information in both the press release and its earnings call. An explanation of these non-GAAP financial measures and a reconciliation of these non-GAAP financial measures to the nearest comparable GAAP financial measures are contained in the press release attached as Exhibit 99.1.

**Item 7.01 Regulation FD Disclosure.**

On January 5, 2023, Duck Creek Technologies, Inc. (the "Company") issued a press release announcing that it had entered into a definitive agreement pursuant to which the Company will acquire Imburse Payments. A copy of the press release is filed as Exhibit 99.2 to this report.

The information contained in Item 2.02 and Item 7.01 of this Form 8-K (including Exhibit 99.1 and Exhibit 99.2 attached hereto) shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly provided by specific reference in such a filing.

**Item 9.01 Financial Statements and Exhibits.**

(d) <u>Exhibits</u>.

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| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | [<u>Press release dated January 5, 2023</u>](dct-ex99_1.htm) |
| 99.2 | [<u>Press release dated January 5, 2023</u>](dct-ex99_2.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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| | | | |
|:---|:---|:---|:---|
|  |  |  | DUCK CREEK TECHNOLOGIES, INC. |
| Date: | January 5, 2023 | By:  | /s/ Kevin R. Rhodes |
|  |  |  | Name: Kevin R. Rhodes<br>Title: Chief Financial Officer |

---

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## Exhibit 99.1

**Exhibit 99.1** 

**Duck Creek Technologies Announces First Quarter Fiscal 2023 Financial Results** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•**First Quarter Fiscal 2023 Subscription revenue increased to $43.8 million, up 23% year-over-year** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•**SaaS Annual Recurring Revenue ("SaaS ARR") increased to $180.6 million, up 24% year-over-year** 

BOSTON, MA January 5, 2023 (GLOBE NEWSWIRE) - Duck Creek Technologies (NASDAQ: DCT), the intelligent SaaS solutions provider defining the future of property and casualty ("P&C") insurance, today announced its financial results for the first quarter ended November 30, 2022.

"Duck Creek started fiscal 2023 strong, highlighted by nine SaaS wins for a variety of core and strategic insurance solutions with new and existing carrier customers of all sizes. We believe customer interest in core systems modernization will continue to be a top investment priority in the P&C industry and is viewed as essential to their success," said Michael Jackowski, Duck Creek's Chief Executive Officer.

Jackowski added, "We are encouraged by our recent performance and the opportunity ahead of us for the remainder of fiscal 2023. We are mindful of how fluid the macro environment is, but we are confident in Duck Creek's ability to drive continued, profitable growth. Our recent announcement to acquire Imburse Payments is another proof point that Duck Creek is a well-positioned industry leader, enabling carriers' digital transformation goals with modern tools."

<br>**First Quarter 2023 Financial Highlights** 

**Revenue** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Total revenue for the first quarter of fiscal year 2023 was $80.6 million, an increase of 10% from the comparable period in fiscal year 2022. Subscription revenue was $43.8 million, an increase of 23%; professional services revenue was $27.9 million, a decrease of 6%; license revenue was $1.8 million, a decrease of 7%; and maintenance and support revenue was $7.2 million, an increase of 14%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•SaaS ARR was $180.6 million as of November 30, 2022, an increase of 24% from the comparable period in fiscal year 2022.

**Profitability** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•GAAP loss from operations was $6.6 million for the first quarter of fiscal year 2023, compared with a GAAP income from operations of $1.9 million for the comparable period in fiscal year 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Non-GAAP income from operations was $2.6 million for the first quarter of fiscal year 2023, compared with non-GAAP income from operations of $7.1 million for the comparable period in fiscal year 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•GAAP net loss was $5.2 million for the first quarter of fiscal year 2023, compared with GAAP net income of $0.7 million for the comparable period in fiscal year 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Non-GAAP net income was $2.6 million for the first quarter of fiscal year 2023, compared with non-GAAP net income of $4.8 million for the comparable period in fiscal year 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•GAAP net loss per share was $0.04 for the first quarter of fiscal year 2023, compared with a GAAP net earnings per share of $0.01 for the comparable period in fiscal year 2022. Basic and diluted weighted average shares outstanding were approximately 132.7 million shares for the quarter ended November 30, 2022. Basic and diluted weighted average shares outstanding were approximately 132.0 million shares and 134.2 million shares, respectively, for the quarter ended November 30, 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Non-GAAP net earnings per share was $0.02 for the first quarter of fiscal year 2023, compared with a non-GAAP net earnings per share of $0.04 for the comparable period in the fiscal year 2022, based on fully diluted weighted average shares outstanding of approximately 137.4 million shares and 134.2 million shares, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Adjusted EBITDA was $3.2 million for the first quarter of fiscal 2023, compared with adjusted EBITDA of $7.8 million for the comparable period in fiscal year 2022.

**Liquidity**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•As of November 30, 2022, Duck Creek had $263.9 million in cash, cash equivalents and short-term investments and no debt. Duck Creek used $5.9 million of cash in operating activities and had free cash flow of ($7.4) million during the first

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quarter of fiscal year 2023, compared with $24.6 million of cash used in operating activities and free cash flow of ($25.5) million in the comparable period in fiscal year 2022.

The information presented above includes non-GAAP financial measures such as "non-GAAP income from operations," "adjusted EBITDA," "non-GAAP net income," "non-GAAP net income per share," and "free cash flow." Refer to "Non-GAAP Financial Measures and Other Metrics" for a discussion of these measures and reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure.

**Business Outlook** 

Duck Creek is issuing the following outlook for the second quarter of fiscal 2023 and full year of fiscal 2023 based on current expectations as of January 5, 2023:

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| | | |
|:---|:---|:---|
|  | **Second Quarter Fiscal 2023**<br>| **Full Year Fiscal 2023**<br>|
| Revenue | $79.5 million to $81.5 million | $331.0 million to $338.0 million |
| Subscription Revenue | $43.5 million to $44.5 million | $177.0 million to $181.0 million |
| Adjusted EBITDA | $4.0 million to $5.0 million | $26.0 million to $28.0 million |
| Non-GAAP net (loss) income | $3.0 million to $4.0 million | $17.0 million to $19.0 million |
| Non-GAAP EPS | $0.02 to $0.03 | $0.13 to $0.14 |

---

The foregoing business outlook is a forward-looking statement. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause actual results to differ materially from these forward-looking statements.

**Conference Call Information** 

Duck Creek Technologies will host a conference call today, January 5, 2023, at 5:00 p.m. (Eastern Time) to discuss Duck Creek's financial results and business outlook. A live webcast of the call will be available on the "Investor Relations" page of the Duck Creek's website at https://ir.duckcreek.com/. To access the call by phone, please go to this link (registration link), and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time at https://ir.duckcreek.com/.

**About Duck Creek Technologies** 

Duck Creek Technologies (NASDAQ: DCT) is the intelligent solutions provider defining the future of the property and casualty (P&C) and general insurance industry. We are the platform upon which modern insurance systems are built, enabling the industry to capitalize on the power of the cloud to run agile, intelligent, and evergreen operations. Authenticity, purpose, and transparency are core to Duck Creek, and we believe insurance should be there for individuals and businesses when, where, and how they need it most. Our market-leading solutions are available on a standalone basis or as a full suite, and all are available via Duck Creek OnDemand. Visit www.duckcreek.com to learn more. Follow Duck Creek on our social channels for the latest information – LinkedIn and Twitter.

**Forward Looking Statements** 

This press release includes certain disclosures which contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including the Company's business outlook. You can identify forward-looking statements because they contain words such as "expect," "believe," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "forecast," "outlook" and variations of these terms or the negative of these terms and similar expressions. Forward-looking statements, including statements regarding Duck Creek's expected outlook for second quarter fiscal 2023 and full year fiscal 2023, are based on Duck Creek's current expectations and assumptions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in Duck Creek's most recent Annual Report on Form 10-K that was filed with the Securities and Exchange Commission on October 28, 2022, as supplemented by Duck Creek's subsequent public filings. In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the impact of pandemics, including the on-going COVID-19 pandemic, on U.S. and global economies, Duck Creek's business and results and financial condition, its employees, demand for its products, sales and implementation cycles, and the health of its customers' and partners' businesses; Duck Creek's history of losses; changes in Duck Creek's product revenue mix as it continues to focus on sales of its SaaS solutions, which will cause fluctuations in its results of operations and cash flows between periods; Duck Creek's reliance on orders and renewals from a relatively small number of customers for a substantial portion of its revenue, and the substantial negotiating leverage customers have in renewing and expanding their contracts for Duck Creek's solutions; the success of Duck Creek's growth strategy focused on SaaS

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solutions and its ability to develop or sell its solutions into new markets or further penetrate existing markets; Duck Creek's ability to manage its expanding operations; intense competition in Duck Creek's market; third parties may assert Duck Creek is 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 Duck Creek's international sales and operations; the length and variability of Duck Creek's sales and implementation cycles; data breaches, unauthorized access to customer data or other disruptions of Duck Creek's solutions; and the significant influence of Duck Creek's largest shareholders on the composition of its board of directors, its management, business plans, and policies and any conflicts of interests therewith.

Any forward-looking statement in this release speaks only as of the date of this release. Duck Creek undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable laws.

Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance unless expressed as such, and should only be viewed as historical data.

**Non-GAAP Financial Measures and Other Metrics** 

This press release contains the following non-GAAP financial measures: non-GAAP gross margin, non-GAAP income from operations, adjusted EBITDA, non-GAAP net income, non-GAAP net income per share, and free cash flow. Adjusted EBITDA excludes provision for income taxes, other (income) expense, interest (income) expense, net, depreciation of property and equipment, amortization of intangible assets, share-based compensation expense, change in fair value of contingent earnout liability, acquisition-related expenses, and severance expenses related to a workforce reduction. Non-GAAP income from operations excludes share-based compensation expense, amortization of intangible assets, change in fair value of contingent earnout liability, acquisition-related expenses, and severance expenses related to a workforce reduction. Non-GAAP gross margin excludes share-based compensation expense, amortization of intangible assets, amortization of capitalized internal-use software, and severance expenses related to a workforce reduction. Non-GAAP net income excludes share-based compensation expense, amortization of intangible assets, change in fair value of contingent earnout liability, acquisition-related expenses, and severance expenses related to a workforce reduction and the tax effect of such adjustments. Free cash flow consists of net cash provided by operating activities adjusted for purchases of property and equipment, capitalized internal-use software, and acquisition-related payments. See below for a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure.

Other metrics include SaaS ARR and SaaS Net Dollar Retention, which are calculated for our portfolio of SaaS agreements. SaaS ARR is calculated by annualizing the recurring subscription revenue for each of our active SaaS agreements, which may not be the same as the timing and amount of revenue recognized. SaaS Net Dollar Retention is a rate calculated by annualizing the recurring subscription revenue for each of our active SaaS agreements, as of a specific date, for those customers in place throughout the entire measurement period (the last twelve-month period). We divide the result by annualized subscription revenue from the date that is immediately prior to the beginning of the measurement period, for all customers in place at the beginning of the measurement period.

Duck Creek believes that these non-GAAP financial measures and other metrics provide useful information to management and investors regarding certain financial and business trends relating to Duck Creek's financial condition and results of operations. Duck Creek's management uses these non-GAAP financial measures and other metrics to manage its business, make planning decisions, evaluate its performance and allocate resources. Duck Creek believes that the use of these non-GAAP financial measures and other metrics help investors and analysts in comparing its results across reporting periods on a consistent basis by excluding items that Duck Creek does not believe are indicative of its core operating performance. These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or as a substitute for, the analysis of other GAAP financial measures, including net income and cash flows from operating activities.

These non-GAAP financial measures are not universally consistent calculations, limiting their usefulness as comparative measures. Other companies may calculate similarly titled financial measures differently than Duck Creek does or may not calculate them at all. Additionally, these non-GAAP financial measures are not measurements of financial performance or liquidity under GAAP. In order to facilitate a clear understanding of its consolidated historical operating results, readers should examine Duck Creek's non-GAAP financial measures in conjunction with its historical GAAP financial information.

Duck Creek is providing certain guidance on a non-GAAP basis, but is not providing reconciliations of such forward-looking non-GAAP measures to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including adjustments that could be made for the charges reflected in Duck Creek's reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.

**Investor Contact:** 

Brian Denyeau

ICR

646 277 1251

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Brian.denyeau@icrinc.com

**Media Contact:** 

Paul Rechichi

Racepoint Global

617 624 3295

prechichi@racepointglobal.com

Drake Manning

Duck Creek Technologies

860 877 3609

drake.manning@duckcreek.com

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**Duck Creek Technologies, Inc. and Subsidiaries** 

**Consolidated Balance Sheets** 

(unaudited, in thousands except share and per share amounts)

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| | | |
|:---|:---|:---|
|  | **November 30,** | **August 31,** |
|  | **2022** | **2022** |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $255456 | $155265 |
| &nbsp;&nbsp;&nbsp;Short-term investments | 8432 | 117823 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 28570 | 29939 |
| &nbsp;&nbsp;&nbsp;Unbilled revenue | 36006 | 31696 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 16303 | 13355 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 344767 | 348078 |
| Property and equipment, net | 13877 | 14076 |
| Operating lease assets | 15636 | 16502 |
| Goodwill | 357260 | 355498 |
| Intangible assets, net | 79490 | 82888 |
| Deferred tax assets | 1316 | 1132 |
| Unbilled revenue, net of current portion | 23 | 209 |
| Other assets | 20814 | 21293 |
| Total assets | $833183 | $839676 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $3433 | $2577 |
| &nbsp;&nbsp;&nbsp;Accrued liabilities | 38980 | 41747 |
| &nbsp;&nbsp;&nbsp;Lease liability | 4669 | 4552 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 26509 | 29618 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 73591 | 78494 |
| Lease liability, net of current portion | 16660 | 17877 |
| Deferred income taxes | 8827 | 8654 |
| Deferred revenue, net of current portion | 49 | 39 |
| Other long-term liabilities | 2753 | 2207 |
| Total liabilities | 101880 | 107271 |
| Commitments and contingencies |  |  |
| Stockholders' equity |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, 135,597,678 shares issued and 132,858,647 shares outstanding at November 30, 2022, 135,370,279 shares issued and 132,686,867 shares outstanding at August 31, 2022, 300,000,000 shares authorized at November 30, 2022 and August 31, 2022, par value $0.01 per share | 1355 | 1353 |
| &nbsp;&nbsp;&nbsp;Preferred stock, 0 shares outstanding, 50,000,000 shares authorized at November 30, 2022 and August 31, 2022, par value $0.01 per share |  |  |
| &nbsp;&nbsp;&nbsp;Treasury stock, common shares at cost; 2,739,031 shares at November 30, 2022 and<br> 2,684,316 shares at August 31, 2022 | (69437) | (68784) |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (54758) | (49597) |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) | 830 | (393) |
| &nbsp;&nbsp;&nbsp;Additional paid in capital | 853313 | 849826 |
| Total stockholders' equity | 731303 | 732405 |
| Total liabilities and stockholders' equity | $833183 | $839676 |

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**Duck Creek Technologies, Inc. and Subsidiaries** 

**Consolidated Statements of Operations** 

(unaudited, in thousands except share and per share amounts)

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| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>November 30,** | **Three Months Ended<br>November 30,** |
|  | **2022** | **2021** |
| Revenue: |  |  |
| &nbsp;&nbsp;&nbsp;Subscription | $43790 | $35705 |
| &nbsp;&nbsp;&nbsp;License | 1782 | 1912 |
| &nbsp;&nbsp;&nbsp;Maintenance and support | 7159 | 6277 |
| &nbsp;&nbsp;&nbsp;Professional services | 27855 | 29527 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 80586 | 73421 |
| Cost of revenue: |  |  |
| &nbsp;&nbsp;&nbsp;Subscription | 17091 | 14585 |
| &nbsp;&nbsp;&nbsp;License | 261 | 244 |
| &nbsp;&nbsp;&nbsp;Maintenance and support | 1185 | 880 |
| &nbsp;&nbsp;&nbsp;Professional services | 18605 | 15242 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of revenue | 37142 | 30951 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross margin | 43444 | 42470 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;Research and development | 16197 | 12321 |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 16211 | 13167 |
| &nbsp;&nbsp;&nbsp;General and administrative | 17597 | 15035 |
| &nbsp;&nbsp;&nbsp;Change in fair value of contingent consideration |  | 67 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 50005 | 40590 |
| Income (loss) from operations | (6561) | 1880 |
| Other income (expense), net | (402) | (696) |
| Interest income (expense), net | 1253 | (118) |
| Income (loss) before income taxes | (5710) | 1066 |
| Provision for (benefit from) income taxes | (549) | 374 |
| Net income (loss) | $(5161) | $692 |
| Net income (loss) per share information |  |  |
| &nbsp;&nbsp;&nbsp;Net earnings (loss) per share of common stock, basic | $(0.04) | $0.01 |
| &nbsp;&nbsp;&nbsp;Net earnings (loss) per share, diluted | $(0.04) | $0.01 |
| &nbsp;&nbsp;&nbsp;Weighted average shares of common stock, basic | 132748831 | 132038274 |
| &nbsp;&nbsp;&nbsp;Weighted average shares of common stock, diluted | 132748831 | 134212210 |

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**Cost of revenue and operating expenses amounts in the Consolidated Statements of Operations include share-based compensation expense as disclosed in the following table:** 

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| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>November 30,** | **Three Months Ended<br>November 30,** |
|  | **2022** | **2021** |
| Cost of subscription revenue | $139 | $42 |
| Cost of maintenance and support revenue | 13 | 8 |
| Cost of services revenue | 642 | (100) |
| Research and development | 653 | 229 |
| Sales and marketing | 568 | (60) |
| General and administrative | 1474 | 1093 |
| &nbsp;&nbsp;&nbsp;Total share-based compensation expense | $3489 | $1212 |

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**Duck Creek Technologies, Inc. and Subsidiaries** 

**Consolidated Statements of Cash Flows** 

(unaudited, in thousands)

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| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>November 30,** | **Three Months Ended<br>November 30,** |
|  | **2022** | **2021** |
| Operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) | $(5161) | $692 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income (loss) to cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation of property and equipment | 653 | 704 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of capitalized software | 611 | 561 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangible assets | 4440 | 3973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing fees | 36 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation expense | 3489 | 1212 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of contingent earnout liability |  | 67 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of contingent earnout liability in excess of acquisition date fair value |  | (1650) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes to allowance for credit losses | 6 | 817 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred taxes | (10) | 1288 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 1532 | (5959) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unbilled revenue | (4125) | (3115) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (3003) | (2428) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | 481 | 604 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 1234 | (909) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | (2708) | (16891) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | (3099) | (2312) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating leases | (235) | (460) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash settlement of vested phantom stock | (39) | (175) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other long-term liabilities | 12 | (640) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (5886) | (24603) |
| Investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of short-term investments | (8417) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Maturities of short-term investments | 117481 | 95967 |
| &nbsp;&nbsp;&nbsp;&nbsp;Capitalized internal-use software | (1891) | (366) |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of property and equipment | (443) | (540) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by investing activities | 106730 | 95061 |
| Financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of treasury stock | (653) | (141) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from stock option exercises |  | 132 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments of contingent earnout liability |  | (3879) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payment of deferred financing costs |  | (488) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (653) | (4376) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase in cash and cash equivalents | 100191 | 66082 |
| Cash and cash equivalents – beginning of period | 155265 | 185657 |
| Cash and cash equivalents – end of period | $255456 | $251739 |

---

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**Duck Creek Technologies, Inc. and Subsidiaries** 

**Reconciliation of GAAP to Non-GAAP Financial Measures** 

(unaudited)

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>November 30,** | **Three Months Ended<br>November 30,** |
| **($ in thousands)** | **2022** | **2021** |
| GAAP Gross margin | $43444 | $42470 |
| &nbsp;&nbsp;Share-based compensation expense | 794 | (50) |
| &nbsp;&nbsp;Amortization of intangible assets | 1236 | 1121 |
| &nbsp;&nbsp;Amortization of capitalized internal-use software | 611 | 561 |
| &nbsp;&nbsp;Workforce reduction – severance expenses | 392 |  |
| Non-GAAP Gross margin | $46477 | $44102 |

---

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| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>November 30,** | **Three Months Ended<br>November 30,** |
| **($ in thousands)** | **2022** | **2021** |
| GAAP Income (loss) from operations | $(6561) | $1880 |
| &nbsp;&nbsp;&nbsp;Share-based compensation expense | 3489 | 1212 |
| &nbsp;&nbsp;&nbsp;Amortization of intangible assets | 4440 | 3929 |
| &nbsp;&nbsp;&nbsp;Change in fair value of contingent earnout liability |  | 67 |
| &nbsp;&nbsp;&nbsp;Acquisition-related expenses | 559 |  |
| &nbsp;&nbsp;&nbsp;Workforce reduction – severance expenses | 645 |  |
| Non-GAAP Income from operations | $2572 | $7088 |

---

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| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>November 30,** | **Three Months Ended<br>November 30,** |
| **($ in thousands)** | **2022** | **2021** |
| GAAP Net income (loss) | $(5161) | $692 |
| &nbsp;&nbsp;&nbsp;Provision for (benefit from) income taxes | (549) | 374 |
| &nbsp;&nbsp;&nbsp;Other income (expense), net | 402 | 696 |
| &nbsp;&nbsp;&nbsp;Interest (income) expense, net | (1253) | 118 |
| &nbsp;&nbsp;&nbsp;Depreciation of property and equipment | 653 | 704 |
| &nbsp;&nbsp;&nbsp;Amortization of intangible assets | 4440 | 3929 |
| &nbsp;&nbsp;&nbsp;Share-based compensation expense | 3489 | 1212 |
| &nbsp;&nbsp;&nbsp;Change in fair value of contingent earnout liability |  | 67 |
| &nbsp;&nbsp;&nbsp;Acquisition-related expenses | 559 |  |
| &nbsp;&nbsp;&nbsp;Workforce reduction – severance expenses | 645 |  |
| Adjusted EBITDA | $3225 | $7792 |
| Adjusted EBITDA as a percent of total revenue | 4% | 11% |

---

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>November 30,** | **Three Months Ended<br>November 30,** | **Three Months Ended<br>November 30,** |  |
| **($ in thousands)** | **2022** | **Per<br>Share** | **2021** | **Per<br>Share** |
| GAAP Net income (loss) | $(5161) | $(0.04) | $692 | $0.01 |
| Add: GAAP tax provision (1) | (549) |  | 374 |  |
| GAAP pre-tax income (loss) | (5710) |  | 1066 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation expense | 3489 |  | 1212 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangible assets | 4440 |  | 3929 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of contingent earnout liability |  |  | 67 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition-related expenses | 559 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Workforce reduction – severance expenses | 645 |  |  |  |
| Non-GAAP pre-tax income | 3423 |  | 6274 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-GAAP tax provision applied at a 24% tax rate (1) | 822 |  | 1506 |  |
| Non-GAAP Net Income (1) | $2601 | $0.02 | $4768 | $0.04 |
| Shares used in computing Non-GAAP net income per share<br>&nbsp;&nbsp;&nbsp;&nbsp; amounts: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;GAAP weighted-average shares – basic | 132748831 |  | 132038274 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;GAAP dilutive shares |  |  | 2173936 |  |
| Non-GAAP dilutive shares (using the treasury stock method) | 4608361 |  |  |  |
| Non-GAAP weighted-average shares – diluted | 137357192 |  | 134212210 |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)For the three months ended November 30, 2022, the Company had a GAAP net loss and non-GAAP net income. As such, outstanding potential shares of common stock are only included for the calculation of Non-GAAP earnings per share since these shares would be anti-dilutive for the calculation of GAAP earnings per share.

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>November 30,** | **Three Months Ended<br>November 30,** |
| **($ in thousands)** | **2022** | **2021** |
| Net cash provided by (used in) operating activities | $(5886) | $(24603) |
| &nbsp;&nbsp;&nbsp;Purchases of property and equipment | (443) | (540) |
| &nbsp;&nbsp;&nbsp;Capitalized internal-use software | (1891) | (366) |
| &nbsp;&nbsp;&nbsp;Acquisition-related payments | 862 |  |
| Free Cash Flow | $(7358) | $(25509) |

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## Exhibit 99.2

**Exhibit 99.2**

![img241693169_0.jpg](img241693169_0.jpg)

**Duck Creek to acquire Imburse Payments, a modern payments platform**

Strategic acquisition will add digital, out-of-the box payments capabilities to Duck Creek's comprehensive suite of SaaS solutions for P&C and general insurers

Boston – January 5, 2023 – Duck Creek Technologies (NASDAQ: DCT) ("Duck Creek"), the intelligent solutions provider defining the future of property and casualty (P&C) insurance, today announced a definitive agreement to acquire Imburse Payments ("Imburse"), a Swiss-based modern payments platform.

Imburse's cloud-native software-as-a-service (SaaS) payment solution is built for the insurance industry. The modern payments platform brings greater ease and efficiency into end-to-end insurance transactions. Imburse enables insurance carriers to quickly connect to the entire payments ecosystem at a lower cost, seamlessly integrate with existing finance infrastructure and processes, and manage multiple partners for collections and disbursements, all in one place. The platform is consumer friendly and provides policyholders with both an easy-to-use, flexible payments experience and the ability to quickly and securely direct payments.

As part of Duck Creek, Imburse will continue to serve its existing client base and markets, while accelerating expansion plans for new clients across Europe and into North America and Asia-Pacific. The Imburse platform will continue to be available on a stand-alone basis and will also be fully integrated with Duck Creek's suite of technology solutions, further enabling carriers' digital transformation goals with modern tools.

"Imburse has developed a great product for the global insurance industry that is not only easy to integrate and implement, but also gives carriers incredible flexibility and payment choices," said Mike Jackowski, CEO of Duck Creek Technologies. "Imburse has a strong team that embodies Duck Creek's core values. They have deep expertise across the payments ecosystem and will help to broaden Duck Creek's insurance industry leadership."

"Being part of Duck Creek will further accelerate our mission to simplify how businesses around the world access the global payments ecosystem," said Oliver Werneyer, CEO of Imburse. "We are excited to be part of Duck Creek and to work jointly to deliver modern technology innovations that transform the insurance industry for the future."

The acquisition remains subject to customary closing conditions and is expected to close during the second fiscal quarter of 2023.

**Conference Call Information** 

Duck Creek Technologies will host a conference call today, January 5, 2023, at 5:00 p.m. (Eastern Time) to discuss Duck Creek's financial results and business outlook, as well as the proposed acquisition of Imburse Payments. A live webcast of the call will be available on the "Investor Relations" page of the Duck Creek's website at https://ir.duckcreek.com/. To access the call by phone, please go to this link (registration link), and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time at https://ir.duckcreek.com/.

**About Imburse Payments**

Imburse is a modern payments platform built for insurers. Via a single connection, directly or through a current core system provider, insurance carriers can access the entire global payment ecosystem to collect or pay-out using any technology, any provider, in any market.

**About Duck Creek Technologies**

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Duck Creek Technologies (NASDAQ: DCT) is the intelligent solutions provider defining the future of the property and casualty (P&C) and general insurance industry. We are the platform upon which modern insurance systems are built, enabling the industry to capitalize on the power of the cloud to run agile, intelligent, and evergreen operations. Authenticity, purpose, and transparency are core to Duck Creek, and we believe insurance should be there for individuals and businesses when, where, and how they need it most. Our market-leading solutions are available on a standalone basis or as a full suite, and all are available via Duck Creek OnDemand. Visit www.duckcreek.com to learn more. Follow Duck Creek on our social channels for the latest information – LinkedIn and Twitter.

**Duck Creek Media Contacts:**

Drake Manning<br>drake.manning@duckcreek.com

Carley Bunch<br>carley.bunch@duckcreek.com

**Imburse Media Contact:**

Michael Sharp<br>michael.sharp@imbursepayments.com

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