Benzinga | Jul 9, 2021 02:39PM EDT

Barclays Reiterates Equal Weight On Duck Creek Technologies, Lowers Price Target

* Barclays analyst Saket Kalia reiterated an Equal Weight rating on Duck Creek Technologies Inc's (NASDAQ:DCT) following the Q3 results.

* He reduced the price target from $49 to $43. The new price target implies a 4.3% upside at the current level.

* DCT beat the revenue consensus by 6.5% at $67.9 million, up 26% year-on-year. It hit the EPS consensus by 400% at $0.03.

* Subscription revenue rose 56% Y/Y to $33.6 million, Services revenue grew 6% Y/Y to $25.6 million, License revenue increased 15% Y/Y to $2.5 million, and Maintenance revenue grew 4% Y/Y to $6.3 million.

* SaaS annual recurring revenue rose 64% Y/Y to $124.1 million.

* The gross margin expanded 252 basis points to 59.2%.

* The legacy contract roll-off happened as expected, Kalia's research note stated. It created a $6 million $8 million headwind on subscription on top of the quarter's lower net new annual recurring revenue.

* Price action: DCT shares traded lower by 2.77% at $40.07 on the last check Friday.