IPO Duck Creek Technologies
Revenues in 2018-2019
Invest in IPO Duck Creek Technologies
Duck Creek Technologies (DCT) is a company developing property and casualty insurance software. It offers a suite of policy, billing, rating, claims, data insights, digital engagement, and distribution management applications. Duck Creek headquarters are located in Boston, Massachusetts. The company also has sales offices in the United Kingdom, Spain and Australia, as well as a service center located in India.
Customer base is comprised of a range of carriers, including some of the largest companies in the P&C insurance industry, such as Progressive, Liberty Mutual, AIG, The Hartford, Berkshire Hathaway Specialty Insurance, GEICO and Munich Re Specialty Insurance. Duck Creek has over 150 insurance customers worldwide, including the top five North American carriers.
The P&C insurance industry is large, complex and highly regulated. In 2018, the industry serviced approximately $2.4 trillion of DWP spanning thousands of carriers globally. In addition to being one of the largest global industries, it is also one of the most resilient.
Carriers invest substantial time and resources to develop and maintain their IT operations. Duck Creek estimates their total addressable market, representing the portion of this spending that is focused specifically on core system software, is approximately $6 billion in the United States and $15 billion globally. They currently have over 150 insurance customers, which represents a small portion of carriers both in North America and globally.
Public health outbreaks, epidemics or pandemics, including the global COVID-19 outbreak, could harm Duck Creek business, results of operations, and financial condition.
Duck Creek has relied and expect to continue to rely on orders from a relatively small number of customers in the P&C insurance industry for a substantial portion of their revenue, and the loss of any of these customers or a reduction in revenue from any of these customers would significantly harm results of operations and financial condition.
Duck Creek (DCT) generates revenue from selling subscriptions to its platform, licensing software applications, providing maintenance and support services and providing professional services. Their subscription revenues have grown significantly in recent years, both in absolute terms and as a percentage of business (from 21% in 2017 to 33% in 2019 and to 39% in 9 months ended 31 May 2020). The company expects to increase this number in future.
DCT plans to raise $315M by offering at a price range of $19 to $21. At the higher end of the proposed range, DCT would command a fully diluted market value of 2.7$ billion. Given strong financial results along with prospective market, we estimate that DCT market cap after an IPO will be around $4B. The expected return on investment is significant (above 40%).
2-3 weeks before the start of the company publishes information about the opening of trading: financial statements for 3 years, a description of the company's business, plans for the future, as well as the risks that management sees in their own business. We analyze such offers and publish the best ones. Investors apply for deposits. Before the deadline for applications, you can change the request or cancel it.
We submit one large application for the purchase of shares by pre-subscription with reduced price to large investors. The application may be rejected in part or in full. Over the past three years, our applications have been rejected only three times. The next day, or every other day, we'll know at what price and at what percentage the order is executed, and we'll post it on «The my investment page».
The price of shares is rising from the first day due to the demand of investors deprived of the opportunity to buy shares before trading. Most of the stocks we've been recommending buying over the past three years have been starting to trade on the stock exchange at tens of percent higher than the price at which customers bought the shares. There comes a Lock up period when it is forbidden to sell shares purchased by subscription. Typically lasts 3 months.
After the expiration of the Lock Up period, the investment is automatically closed and the investor receives a profit on account of the deduction commissions UT. You can always view the results of your past investments in investment archive.
Although no shares are allowed to be sold during the lock-up period, our traders seek to offer investors fixed profit by way of using various financial instruments, including forwards, options, short positions etc.
From the investor’s point of view this means that he or she may close an investment by paying a certain part of its value (as a rule, approximately 15 percent). This is due to high prices for the instruments which are employed to ensure availability of fixed profit. As such, you shall press any relevant button in the Investor Account as soon as it is active.
The closing procedure is similar to commencement of investment business. You shall file a bid which is executed within a business day by UT. So, your investment is closed at the price currently prevailing on the stock exchange. However, we rarely recommend using this feature, since upon expiry of an applicable lock-up period the average performance is higher.
3 per cent of the share price. This fee is charged as soon as your investment bid is confirmed.
1.75 per cent of the purchase price paid for your shares as soon as trading is closed. This fee is charged upon closure of any relevant investment.
20 per cent of the profit your derive. This fee is charged only if you show positive performance as of the moment any relevant investment is closed.
TO EARLY EXIT
Usually, 15 per cent (depends on the stock exchange environment). It is calculated per each investment individually.
Our risk managers ensure proper support throughout the entire transaction. Moreover, you may call them on +7 495 646-15-57 or 8 800 333-66-81 or visit our office, if a more detailed discussion is needed.
IN THE PROFIT FROM THE FIRST DAY
Such an approach allows it to limit extra risks related to bankruptcy of start-ups and considerably increase profit vs investors purchasing shares on open Market.
LOW ENTRY THRESHOLD
Millions of dollars are required to buy shares on a subscription basis. We have generated a pool of traders and investors which enables any newbie to participate in any transaction as aforesaid by investing just USD50 or more.