Duck Creek Technologies Inc. shares declined more than 10% to $16.20 in after-hours trading Wednesday after reporting a wider third-quarter loss and cutting its fiscal 2022 revenue guidance.
The software as a service solution provider for the property and casualty insurance industry had a loss of $5.76 million, or 4 cents a share, for the three months ended May 31, compared to a loss of $357,000, or zero per-share, a year earlier. Adjusted earnings were 1 cent a share. Analysts polled by FactSet expected zero for adjusted earnings per share.
Revenue rose to $72.4 million from $67.9 million. Analysts polled by FactSet expected $72.2 million.
Duck Creek issued guidance for the fourth quarter and fiscal 2022. The company expects revenue of $72.8 million to $74.8 million and adjusted earnings per share of a penny to 2 cents in the fourth quarter. Analysts polled by FactSet expect $80.3 million in revenue and adjusted earnings of 2 cents for the quarter.
For fiscal 2022, the company guided for $295 million to $297 million in revenue and adjusted earnings per share of 9 cents to 10 cents. Duck Creek previously forecast between $301 million and $305 million in revenue, while analysts polled by FactSet expect $302.3 million in revenue.
Chief Executive Michael Jackowski said in prepared remarks that the company continues to see strong customer engagement and interest in cloud services despite its outlook reflecting near-term uncertainty in the market.