Registered number:
FOR THE YEAR ENDED 31 AUGUST 2023
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DUCK CREEK TECHNOLOGIES LTD
COMPANY INFORMATION
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DUCK CREEK TECHNOLOGIES LTD
CONTENTS
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DUCK CREEK TECHNOLOGIES LTD
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
The Directors present their report and the audited financial statements of the Company for the year ended 31 August 2023.
Duck Creek Technologies Ltd (“the Company”) was incorporated on 14 April 2016. The Company is a wholly- owned subsidiary of Duck Creek Technologies, Inc. Duck Creek Technologies, Inc., the Company’s parent company, completed its initial public offering on 14 August 2020 and was traded on the Nasdaq stock exchange under the DCT ticker symbol. On 30 March 2023, the Company’s parent company, Duck Creek Technologies, Inc., was acquired by Vista Equity Partners at which point the shares of Duck Creek Technologies, Inc. ceased to be listed on the Nasdaq. Duck Creek Technologies Pty Ltd (“DC Australia”), Duck Creek Technologies Spain, S.L., Imburse AG, Prima Solutions Belgium and Effisoft SAS are wholly-owned subsidiaries of the Company. Duck Creek Technologies India LLP is a wholly-owned subsidiary of DC Australia. Imburse AG wholly owns Imburse Ltd. (UK) and Imburse Unipessoal Lda., Effisoft SAS wholly owns Effisoft UK Limited and has a joint venture interest in GIE Renovation. The Company is a provider of Software-as-a-Service (SaaS) core systems to the property and casualty (P&C) insurance industry, through Duck Creek OnDemand. Products offered include Duck Creek Policy, Duck Creek Billing, Duck Creek Claims, Duck Creek Rating, Duck Creek Insights, Duck Creek Distribution Management, Duck Creek Reinsurance Management, Duck Creek Anywhere Managed Integrations, and Duck Creek Industry Content. The Company also provides its products via perpetual and term license arrangements to customers with legacy systems that have yet to upgrade to SaaS and professional services relating to the implementation of Company’s SaaS offerings and software licenses.
The results for the period ended 31 August 2023 are set out in the profit and loss account. The reporting period for the Company includes the trading activities for the Company for the period from 1 September 2022 to 31 August 2023.
While the Company provides various services to local market and global customers, it also derives turnover from services provided to other subsidiaries of Duck Creek Technologies, Inc. The loss for the current period to 31 August 2023 is $37,564,039 compared to a loss of $10,220,558 in the prior period. The directors are confident that the business is moving forward and has a promising future. Investments are being made to expand the Company's local market customer base and to sell additional software products and services to its current customers. The Company has been successful in securing key personnel to manage this expansion. The Company’s total revenue increased 72% to $55,695,093 in the current period compared to $37,372,152 in the prior period. The Company's maintenance and support revenue increased 70% to $5,948,663 in the current period compared to $3,495,649 in the prior period, SaaS revenue increased 61% to $17,999,758 in the current period compared to $11,163,214 in the prior year, professional services revenue increased 184% to $16,652,166 in the current period compared to $5,856,966 in the prior period. License revenues increased by 27% to $15,094,506 in the current period compared to $11,856,323 in the prior period. The Company is increasingly focused on selling its SaaS solutions to P&C insurance carriers around the globe. The Company has a good cash position at the year end due to the timely collection of trade debts from its customers and the timely collection of intercompany debts from the U.S. based subsidiaries. In a company the size of the Company, the directors consider various non financial performance indicators but none individually are key. The Company continues to enjoy a high rate of customer retention that should continue to provide recurring revenues to the business over the coming years. Due to the Company's cash position, high customer retention rate, and availability of a variety of funding
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DUCK CREEK TECHNOLOGIES LTD
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
sources, the directors believe that it remains appropriate to prepare financial statements on a going concern basis, as explained in note 2.4 to the financial statements.
Competitive pressure is a constant risk that could impact the operating performance of the Company. This risk is managed by working closely with customers to provide competitive products and services and ensuring that excellent service levels are maintained.
The Company has expanded its market share and SaaS offerings through a series of significant acquisitions in recent years, and the future success of the Company is dependent on the successful integration and scaling of these acquisitions. The cash flow and liquidity needs of the Company are moderately dependent on interest related to the intercompany loans with affiliated subsidiaries of Duck Creek Technologies, Inc. The Company maintains its short term flexibility through intercompany borrowings, if required. The global economic environment can affect the operating performance of the Company and the market it competes in. Both sales and profitability are exposed to these risks. The Company works to mitigate the impact of these external variables by competing in diverse geographies and with management planning and oversight processes.
As the Company continues to generate losses, the directors are primarily interested in revenue growth across the Company’s service lines.
The company has no hedging arrangements as of 31 August 2023. The foreign exchange currency risk is managed centrally at a group level.
Liquidity and cash flow risks are governed by the ultimate parent undertaking’s requirements. The Company maintains its short term flexibility through intercompany borrowing, if required. The Company governs its own price risk and credit risk based on directors’ requirements to meet its ultimate parent undertaking expectations.
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DUCK CREEK TECHNOLOGIES LTD
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
The Directors have acted in a way they considered, in good faith, to be the most likely to promote the success of the Company for the benefit of its stakeholders. Section 172 requires the Directors to have regard, amongst other matters to the:
a) Likely consequences of any decisions in the long-term b) Interests of the Company’s employees c) Need to foster the Company’s business relationships with suppliers, customers, and others d) Impact of the Company’s operations on the community and the environment e) Desirability of the Company maintaining a reputation for high standards of business conduct, and f) Need to act fairly as between members of the Company Similar to competitor organisations, much of the group strategy is set at a corporate level. The Company delegates authority for the day-to-day management to the Company executives. Management are responsible for overseeing the execution of the group strategy and adhering to polices set by the group. Senior executives hold meetings with the regional management team regularly to ensure feedback from employees, customers and supplier base.
This report was approved by the board and signed on its behalf.
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DUCK CREEK TECHNOLOGIES LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
The directors present their report and the financial statements for the year ended 31 August 2023.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The loss for the year, after taxation and minority interests, amounted to $37,556,791 (2022 - loss $10,206,272).
No dividends were paid or proposed during the current or prior period.
The directors who served during the year were:
There were no significant future developments expected to impact the Company.
The directors are committed to employee engagement through a variety of initiatives, including creating a positive culture, offering flexible remote-first work, and providing opportunities for career development and progression.
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DUCK CREEK TECHNOLOGIES LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
The directors are required to foster the Company's business relationships with suppliers, customers and others. The Company has a number of direct contracts with external customers and a portion of its revenue is derived from services provided to customers of Duck Creek Australia. Due to the recurring nature of revenues our account managers are responsible for maintaining those relationships. The majority of business operations are conducted by our own employees and a significant proportion of services are supplied on a cost shared basis with the wider group. As such the key relationships with suppliers are maintained by our parent company.
The Group has not disclosed information in respect of greenhouse gas emissions, energy consumption and energy efficiency action as its energy consumption in the United Kingdom for the year is 40,000kWh or lower.
The company has chosen in accordance with Companies Act 2006, S .414 C (11) to set out in the strategic report information required by The Large and Medium sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the director's report. It has done so in respect of risk and uncertainties and financial risk management objectives and policies.
There have been no significant events affecting the Group since the year end.
The auditor, Nortons Assurance Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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DUCK CREEK TECHNOLOGIES LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DUCK CREEK TECHNOLOGIES LTD
We have audited the financial statements of Duck Creek Technologies Ltd (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 August 2023, which comprise the Consolidated Profit and Loss Account, the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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DUCK CREEK TECHNOLOGIES LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DUCK CREEK TECHNOLOGIES LTD (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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DUCK CREEK TECHNOLOGIES LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DUCK CREEK TECHNOLOGIES LTD (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
The objectives of our audit, in respect to fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. Our approach was as follows:
∙We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework including the Companies Act 2006 and the relevant tax compliance regulations in the UK.
∙We understood how the Company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures.
∙We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur by discussing with management to understand where it considered there was a susceptibility to fraud. We considered the controls that the Company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included testing manual journals and were designed to provide reasonable assurance that the financial statements were free from fraud and error.
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DUCK CREEK TECHNOLOGIES LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DUCK CREEK TECHNOLOGIES LTD (CONTINUED)
∙Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations identified in the paragraphs above. Our procedures involved journal entry testing, with a focus on journals indicating large or unusual transactions based on our understanding of the business, enquiries of Company management and focused testing. In addition, we completed procedures to conclude on the compliance of the disclosures in the Annual Report and Accounts with the requirements of the relevant accounting standards and UK legislation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Statutory Auditor
Second Floor
NOW Building
Thames Valley Park
RG6 1RB
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DUCK CREEK TECHNOLOGIES LTD
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2023
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DUCK CREEK TECHNOLOGIES LTD
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2023
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DUCK CREEK TECHNOLOGIES LTD
REGISTERED NUMBER: 10124977
CONSOLIDATED BALANCE SHEET
AS AT 31 AUGUST 2023
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DUCK CREEK TECHNOLOGIES LTD
REGISTERED NUMBER: 10124977
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 AUGUST 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 31 January 2025.
The notes on pages 20 to 47 form part of these financial statements.
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DUCK CREEK TECHNOLOGIES LTD
REGISTERED NUMBER: 10124977
COMPANY BALANCE SHEET
AS AT 31 AUGUST 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 20 to 47 form part of these financial statements.
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